Brussels, 30/11/2012
The eurozone is back in recession. The Organisation for Economic Co-operation and Development (OECD) [[http://www.oecd.org/eco/economicoutlook.htm]] slashed its eurozone economic growth forecasts and warned that the region poses the greatest threat to the global economy. The goals of reaching a 75% employment rate and lifting at least 20 million people out of poverty by 2020 are fast receding into the distance. Eurostat estimates that 25.913 million men and women in the EU27 were unemployed in September 2012 and unemployment rose by 2.174 million in one year.
Across Europe, people are taking to the streets rejecting austerity and demanding a fairer Europe. We need leaders with the courage and vision to admit their mistakes and take corrective action.
The trade union movement is no longer the lone voice calling for a policy shift – the International Monetary Fund (IMF), International Labour Organisation (ILO) and leading economists have all warned of the need to loosen the austerity grip. European leaders must end their obsession with structural labour reforms focusing on supply side labour market reforms, attacks on wages and downwards competition among Member States.
This week, three renowned economic institutes have published an independent Annual Growth Survey which refutes the Commission’s forecasts which they say underestimates the impact of the austerity measures.