The Committee, representing all ETUC-affiliated organisations, adopted a Resolution on a European Recovery Programme (129Kb PDF) which focuses on saving jobs from depression and deflation, defending wages, collective bargaining and pensions. As it is now crystal clear that markets do not solve everything and that, especially in present circumstances, a visible public hand is required to steer the economy and organise solidarity across European societies.

The outlook for growth in 2009 and beyond is alarming, given that the situation will get worse before it may get better, and it will only get better if there is a fundamental shift in thinking: away from the comforting yet unrealistic notion of a return to ‘business as usual’ towards a new economic reality investing in people, innovation and sustainable development, as well as a revalorisation of the role of government in regulating markets, providing public services, and fighting wage and income inequalities.

European recovery programme

The ETUC plan starts from the principle that a strong European dimension is indispensable. European-wide coordination is necessary to prevent isolated national action plans from reverting to ‘beggar-thy-neighbour’ or ‘free-rider’ policies. European action is also crucial to ensure funding of the European recovery plan by providing a broader access to global capital markets at more affordable interest rates and by bringing tax competition under control, thereby strengthening the tax revenue base of Member States.

In its resolution, ETUC urges the European heads of government and state to mobilise their power of acting together and take the following steps in order to avoid a downwards tailspin of the real economy and provide for an economic turnaround. The ETUC plan has five pillars:

• emergency action in the very short run of 1% of GDP to keep the economy going. The focus should be on strengthening security on labour markets undergoing heavy turmoil at the present moment;
• a ‘New Green Deal’ with public investment packages worth another 1% of GDP in order to strengthen the economy’s long-term growth potential;
• European action in favour of distributive justice and against tax competition to ensure Member States have the financial means to organise the ‘public hand’ and correct for market failures without endangering the long-term sustainability of public finances itself;
• an accelerated re-regulation of financial markets to ensure that such a crisis never happens again;
• ensuring that workers get a fair deal and upgrading their rights instead of structural reforms promoting ‘easy firing’ and longer working hours – for instance, the Council proposals for amendments to the Working Time Directive. Collective bargaining systems need to be strengthened to avoid the domino of deflationary wage developments from falling.
  
  

ETUC resolution

To download the ETUC Resolution on a European Recovery Programme – Saving jobs from depression and deflation, defending wages, collective bargaining and pensions, click on icon below.