ETUC seeks major overhaul of draft Broad Economic Policy Guidelines
The draft 2005-2008 Broad Economic Policy Guidelines are once again limited to stability orientated and structural reform policies. Demand side policies continue to be ignored, leaving it to the rest of the world economy to ‘bail out’ Europe from its four-year slump. Instead, the European Trade Union Confederation (ETUC) urges the Ecofin Council to add a new guideline inviting Member States to join forces to trigger a ‘home-made recovery’.
“Stability and reform are not enough. If we really want to relaunch the Lisbon agenda, then we also need to act on the demand side,” says ETUC General Secretary John Monks. “Europe can do this by using the strength derived from acting together.’’
The ETUC wants the new BEPGs to coordinate a ‘European recovery initiative’. Within the framework of the 2006 budgets, Member States should draw up ‘national plans for recovery and innovation’. These plans should target additional investments of 1% of GDP in the Lisbon priorities and should be financed by: · European growth bonds issued by the European Investment Bank; · making use of the new Stability and Growth Pact; · lifting ‘Austrian Keynesianism’ to the European level (shifting between existing expenditure and tax categories in order to increase net aggregate demand).
More on the ETUC’s amendments to the BEPGs: see attachment
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