The ETUC calls for a full suspension of the economic governance rules, following the outcomes of the heads of member states meeting in Brussels yesterday.
The economic governance rules must be fully suspended and reformed. This is urgently needed to allow for the necessary investments for a European industrial policy, quality jobs, just transitions, public services, along with security.
Europe also needs an EU investment facility financed through common debt and new EU own resources, as well as for actions to ensure fairer and more progressive taxation.
Resources for social objectives contribute to essential stability in society which is the backbone of every democratic society and they must be increased. Initiatives on security must not entail a reduction of resources for social objectives.
Strong social conditionalities must apply to any public funds, state aid or support to companies, including in the area of security or defence, in order to ensure quality jobs, better employment and working conditions, collective bargaining, full respect of workers and trade union rights. In addition, EU and national funding should support the development of European industry and economy and ensure that quality jobs in Europe are being protected and created.
Esther Lynch, ETUC General Secretary, said:
“It is clear for all to see that the EU’s self-inflicted economic governance rules are holding Europe back and must be suspended.
“Artificially stunting our capacity to invest in Europe’s needs at this crucial moment would be a historic mistake.
“Any project of unity will be undermined if social injustice is allowed to thrive.
“The urgency for working people struggling to make ends meet on the back of a cost-of-living crisis is real. The EU and its member states must show that they are not walking away from commitments to address the needs of working people.”
Ludovic Voet, ETUC Confederal Secretary, said:
“Less than a year after the controversial reform of economic governance, it is glaringly obvious that the new fiscal rules are unfit for purpose.
“In addition to leading to austerity cuts in various European countries, they have certainly made it impossible to secure the necessary investments for the decarbonisation of the economy — as evidenced by ongoing deindustrialisation in Europe — nor for social and European defence objectives.
“This framework must therefore be suspended as soon as possible.
“Urgent situations require urgent measures, and the fiscal rules must be suspended with immediate effect.”
