President Barroso, thank you for inviting me to address the College of Commissioners today.

It is indeed an exceptional opportunity and I intend to take full advantage of it, hence the strength and clarity of my message.

It is indeed an urgent message that I am bringing to you and one clearly expressed in the unanimous declaration approved by the ETUC’s Executive Committee on 23 April. This message is in your hands now.

The ETUC has always been supportive of the European project for many reasons, but primarily because its regional integration model aimed not only at economic integration but was also meant to foster social progress and full employment. We have stressed that point on many occasions over the years.

One year ago we presented our Social Compact for Europe. It was obvious to us – and indeed many others – that the policies chosen to deal with the crisis were dismantling the European social model instead of strengthening it.

When we presented our Social Compact, we knew that popular support was being shaken and so we sounded the alarm.

Over the last few years there have been no social initiatives from the EU: no social programme, no health and safety programme, no initiative on restructuring – although these have been requested by the European Parliament.

Commission departments currently consider essential directives on subjects such as information and consultation, parental leave or posting of workers as costly burdens. Political leaders view social regulation as an obstacle to competitiveness. By anticipating the Council’s negative reaction, the Commission is giving up any social initiative. This is not the way forward.

For us, minimum social standards must be an integral part of the social dimension that we are discussing today.

Without such standards, the EU’s social foundation is being eroded to vanishing point. But the reasons for the dwindling trade union and popular support for the EU are even more serious.

The policies imposed by the Troika on Greece, Spain and Portugal and, generally, the “six-pack” macroeconomic policies have had a single objective, namely structural reform. These policies have made ordinary people bear the whole weight of adjustment. Inequalities as well as poverty have increased. Public services have been weakened and so has social protection.

Furthermore, we have not seen any meaningful initiatives in favour of growth or employment. We have not seen any initiative against tax evasion or tax avoidance, but I will come back to that later. One positive point though is the boost given to the financial transaction tax.

The damage has been massive as the document that we have given you shows.

It is in that very negative context that the Council has called for a roadmap on the social dimension of the EMU. We welcomed the European Council’s decision of December 2012 to put the question of social Europe on the table for we see that as an echo – albeit faint – of our claims.

It is essential that the roadmap on the social dimension of the EMU which will be published – and probably adopted – in June be more than just a gimmick, more than just a fig leaf hiding the nudity of social Europe. The roadmap must address the social dimension of the EMU.

Yes, we know that a single monetary area requires coordination and convergence which will have a considerable impact on working conditions but where exactly does the EMU start and where does it end? Austerity does not stop at the euro area’s borders. Macroeconomic policies implemented under the fiscal compact will be felt well beyond that.

For us, the EMU social dimension should result in a positive social process for all EU countries. We oppose the repatriation of social rights to the national level by those countries not members of the euro area – which we know is what the British Prime Minister wants, with other governments likely to follow.

One essential element of my message is the following: the heart of the problem is that current policies threaten our social fabric, the social capital of our societies. There will be no serious roadmap on the social dimension of the EMU without a clear indication that economic policies will change.

This roadmap should clearly indicate that the number one priority is to fight unemployment by way of a moratorium on austerity policies and an investment programme for sustainable growth and jobs. More than ever we need a European industrial policy which, currently, is sorely lacking. Moreover, this policy must come with an active social policy on restructuring.

We have not seen the implementation of the growth plan decided on in June 2012. We know that the capital of the EIB was increased by €10 billion with leverage effect. But where are the projects? Who will they benefit and how? In any case, that amount will barely be sufficient for growth to pick up again in Europe.

We are told that no public money is available but public money was there to save the banks. What’s more, it was ordinary people who had to fork out. These people, the workers and their families will never understand why it was considered acceptable to increase public debt and the deficit to save the banks when no effort was or is being made to save jobs.

And what about mobilising private funds? What about fighting tax evasion or tax avoidance? Every year, one thousand billion Euros escape tax collection. It is time to stop this scandal. It costs each and every one of us around this table €2,000 per year.

Now about social dialogue: we welcome the attention given to social dialogue at the European level. But, let us be clear, this dialogue must bear fruit. We will not be taken hostage to the process.

A European dialogue depends on a strong dialogue at national level. Destroying or even weakening industrial relations at national level goes against EU fundamentals. What happened in Greece is against basic social rights as defined by the ILO. In Romania and in Hungary, trade union rights and social dialogue are being flouted. What will the roadmap say about that?

It is first at national level, in the negotiation of recovery programmes, that social dialogue must take place. In many countries, the conditions are just not there, simply because the right to negotiate is being denied and the roadmap cannot ignore that. Talking about the European social dialogue without looking at what is happening at national level would be a waste of time.

Likewise, the very raison d’être of social dialogue will be lost if the necessary follow-up to the sectoral social dialogue at European level (for instance in the hairdressing and transport sectors) as provided for by the treaties is disregarded.

I would like to touch now on social dialogue and on the question of the ETUC’s participation in the economic governance process.

We are ready to get involved in defining the broad lines of the European Semester but how will our participation be organised? Will it contribute to changing the direction of current policies? Can the tripartite social dialogue or macroeconomic dialogue be turned into platforms for moving beyond an interesting and polite exchange of views?

The ETUC, together with the employers (in accordance with the social partners work programme adopted in the spring) has started discussing the subject with the aim of establishing a common view or even recommendations. Our next meeting is planned for 17 May and we share the objective of producing a joint contribution before the June Summit.

The answer to these questions is of course of paramount importance. The ETUC will not be pressganged into participation in economic governance for the sake of it.

In connection with the convergence process required by the EMU, unit labour costs are being compared and discussed by the finance and employment ministers. We are well aware that wages are an important element in unit labour costs. However, we always insist that, labour costs notwithstanding, competitiveness in terms of R&D, innovation and training is a key element in a country’s economic success.

This is a highly sensitive issue, a red line. Wage setting systems are outside the EU’s or the EMU’s competences so the autonomy of social partners must be guaranteed in this area.

We support the inclusion of social indicators such as unemployment, poverty, inequalities or active labour market policies in the country specific recommendations. The implementation of the youth guarantee should also be included in these recommendations.

These social indicators should count for at least as much as economic indicators and not just serve as an excuse or occasional option. If social indicators are actually taken seriously, they will influence macroeconomic policies. Obviously we cannot afford to have two separate pillars: one – the economic pillar disconnected from the other – the social pillar. It follows that a social objective should have some bearing on the economic pillar.

Now, a few words about social and wage dumping: it exists almost everywhere in the EU; it sets people against the EU. The damage caused by the decisions of the European Court of Justice in the Laval, Rüffert, Viking and Luxembourg cases has not been repaired. As long as the EU allows social dumping to continue, it will be viewed as being an instrument working against the people’s interests and as a socially negative factor.

I invite you to carefully read our position on the social dimension of the EU and I beg you to take it very seriously.

I am well aware that it is very difficult to influence the European Council. It is a hard nut to crack! And I know that there is a great deal of pressure to limit the debate on the social dimension to some secondary aspects. But we expect the Commission, and you, President Barroso, to shoulder your responsibilities by sending a strong signal to the Council. It would be extremely regrettable if, at the end of June, the Council were to adopt an unambitious roadmap. Unfortunately, if that were to happen then trade union support for European integration could well disappear.