(24 September 2014) The ETUC yesterday set out its key demands for getting Europe’s economy back on track and central to these is increased public investment.
ETUC deputy general secretary Józef Niemiec presented a number of proposals for action during a consultative meeting of trade unions and employers on the 2015 Annual Growth Survey. The AGS is due for publication by the European Commission in November and will include the economic and social priorities for the coming year.
The ETUC argues that there is still no sign of a sustainable recovery and that price developments in Europe even raise the possibility of a slump into deflation. With continuing low levels of private investment the ETUC is calling for more flexibility in the Stability and Growth Pact to allow for a boost to public investment.
The ETUC also calls for the European Central Bank to play a role here and take responsibility for direct financing of public investment so that countries are not dependent on high-interest lending from the international markets.
EPSU strongly endorsed the ETUC proposals adding that public investment across Europe is below the level it was before the crisis and that even bringing back to that level would require an additional €65 billion a year. EPSU also challenged the Commission’s concept of “growth-friendly fiscal consolidation”, saying that there was little, if any, evidence that any country had managed to restructure public finances without undermining growth.
The public service employers’ organisation, CEEP, also underlined the need to increase public investment and, along with EPSU, made the case for the long-term benefits that derive from more investment in areas such as healthcare and early years education.
Another key debate during the meeting was over the impact of labour market reform with the ETUC and representatives of trade union confederations from Spain and Portugal arguing strongly that the modest levels of recovery in their countries had nothing to do with increased flexibility in the labour market or the weakening of collective bargaining.
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