Meeting with President / Prime Minister Zapatero

Madrid, 21/01/2010

President, the Spanish Presidency comes at a very difficult time – for Spain of course and for the EU and the world.

The economic crisis is severe, unemployment continues to rise, the financial service world is trying to get back to business – and bonuses – as usual, and young people are especially hard hit.

And we have the environmental crisis and an inadequate outcome to the Copenhagen summit.

The need for sustainable economies, a sustainable environment, and sustainable European population is very clear.

At the same time central bankers – and others – are pressing for exit strategies from the stimuli packages and high public spending. This is a worry, I know. But we appreciate the actions you have taken in Spain. Cuts would intensify the recession and risk turning it into a depression on the scale of the 1930s, that tragic decade for Spain and the world. European solidarity is the answer, not competition or leaving the vulnerable like Greece on their own.

“You have saved the banks, now save the jobs”.

Indeed what we want to see is a European entry strategy, not an exit strategy to get people back to work.

We are interested in the ideas of your Presidency for a social pact to tackle the crisis. We support this idea. I note that it is a similar in important respects to the call, an unusually pro European call, from Gordon Brown for an EU compact for Jobs and Growth. I have sought a meeting with President Van Rompuy to press this idea on him also.

The main elements we want to see in this part are:

- a guarantee in 2010 to all young people of jobs and learning opportunities so that we do not have a wasted generation;
- keep up purchasing power and invest in welfare states and public services which have been crucial stabilisers in preventing the recession becoming a depression;
- regulate effectively financial markets so that never again can so few inflict so much damage on so many, and, as part of this, introduce financial transaction taxes on speculators to ease fiscal measures and to support the ‘green’ agenda. In addition, bonuses in the financial sector should be curbed and / or heavily taxed; at present, the conduct of certain banks is outrageous.

We also would like to see

- an increase in public investment in industry policy, and is making our economies more sustainable;
- wage and benefit levels sustained to keep up demand and spending power, and to combat inequality and precarious work, ensuring that posted and migrant workers are treated equally to other workers, and
- effective protection promoted against excessive working time.

In sum, our message is:

“You have saved the banks, now save the jobs”. Our key points, President – Thank you for this opportunity to present them to you.