A common currency needs common rules. However, the rules which the Commission and several finance ministers seek to impose on the whole of Europe through are wrong. Economic governance, if not corrected, will result in European law pushing wages, social benefits and public services down. This will stifle recovery, drag down growth, keep unemployment persistently high, and increase poverty and inequality.
The ETUC urges the European Parliament to change course. Governing Europe must lead to the strengthening of the social model and action to ensure a strong and sustainable recovery.
The ETUC calls upon the European Parliament to fully support:
- clauses which safeguard collective bargaining and wage formation institutions from rules and interventions to limit wages,
- a balanced approach to economic policy making. Strategies of precarious work and downwards pressure on wages destabilise the single currency and need to be detected and remedied,
- binding medium term targets for public investment along with a ‘golden rule’ excluding public investments from the deficit target.
Europe needs to grow out of debts and for that it needs to implement a public investment led growth strategy.
The ETUC also urges the Parliament to make a quantum leap forwards and provide the monetary union with the European economic instruments it so desperately needs:
- Eurobonds to enable countries in difficulties to access the financial markets and borrow at reasonable rates,
- A European tax policy package, containing a financial transaction tax as well as a common tax base for corporate profits, with a minimum tax rate. Action to promote fair taxation and fight tax evasion and fraud. This will make it possible to consolidate public finances without sacrificing our social model.
Bernadette Ségol, General Secretary of the ETUC stated: “I call upon MEPs to make the right choice tomorrow and to vote for the governance of prosperity. The governance of austerity must be rejected. The future of Europe depends on this.”