Fiscal rules: Governments must prioritise tax justice, not austerity

The ETUC is calling on governments to prioritise tax justice, following today’s publication of the ‘Spring Package’ wave of fiscal recommendations to member states by the European Commission.   

Politicians who supported strict spending rules must take the responsibility to meet them by taxing corporations making record profits - not making struggling workers and pensioners pay through new austerity measures.

The ETUC is calling on the European Commission to rethink its economic governance rules. It urgently needs to make financing available to support wage increases, fight poverty and expand working people’s access to training and education. 

Ludovic Voet, Confederal Secretary of the European Trade Union Confederation, said: 

“The renewed pressure being put on member states to enforce austerity measures shows that politicians were wrong to support fiscal rules designed to meet arbitrary targets not the needs of European citizens.  

“It is clear that we need a real reform of the EU’s fiscal rules to put people first. It is totally counterproductive to tell a third of member states to cut spending at a time when we need to massively increase investment in the economy and to properly care for an ageing population.

“The trumpeted exemption for military spending is clearly insufficient to protect the investments needed for working communities to thrive. Instead, trade-offs are being made and while military spending is increasing, we’re seeing recommendations for cuts to social spending.

“Even in those countries not under excessive deficit procedure, we can make out that the EU’s economic governance rules weighs in the balance when it comes to decisions by governments on whether or not to make investments in welfare. The EU’s economic governance rules are holding everyone back.”