Unions protest against 45bn EU austerity plan

Tens of thousands of people will take part in a major demonstration in Paris on Friday against EU plans to reintroduce austerity, a move which could force countries to cut 45 billion Euro from their budgets next year alone.

Trade unionists from across Europe will join a day of action called by eight French unions against austerity and for pay rises, pensions and gender equality.

The ETUC is calling for the suspension of the EU’s fiscal rules to be extended by another year to allow time for a proper debate about the consequences of and alternatives to reimposing austerity.

It is one of a number of union mobilisations taking place across Europe as part of the European Trade Union Confederation’s campaign to stop austerity 2.0 and win a fair deal for workers, including pay rises to restore people’s purchasing power.

Fourteen member states will have to make huge cuts, or raise the equivalent amount through tax, from January under the new ‘Stability and Growth Pact’ – unless changes are made.

 The EU’s fiscal rules were suspended in 2020 to deal with the economic fallout from the pandemic but are due to be brought back in January.

There are proposals to change the rules. However, even after the reforms, the rules would still mean that member states with a deficit above 3% of GDP will have to reduce their budget deficit by a minimum of 0.5% of GDP every year.

The ETUC is calling on EU leaders to rethink austerity 2.0 after the unprecedented scale of investment through the EU's Recovery and Resilience Facility meant the economy recovered more quickly than expected from the pandemic.

More common EU borrowing and a ‘golden rule’ for public investment are needed to ensure that countries can make the investments needed to move to a green and digital economy at the same time as maintaining safe levels of current spending.

ETUC General Secretary Esther Lynch will say in Paris:

“Working people are here in huge numbers today to say no to austerity 2.0 – yes to fair pay, pensions and gender equality.

“European leaders need to learn the lessons of the past: we already know from painful experience that austerity means fewer jobs, lower wages and underfunded public services.

“People just can’t cope with another round of cuts. We were coming off the back of a period of growth the last time austerity was imposed but that’s not the case this time – many people’s savings have been completely wiped out by the pandemic and cost-of-living crisis.

“It will also mean countries can’t make the investments needed to transition to a green economy. Austerity would be as bad for the planet as it would be for people.

“And the worst is that these plans to reintroduce austerity come at a time when corporate profits and payouts to shareholders have reached record levels – rising up to 13 times faster than pay.

“Politicians can’t tell the poorest to turn out their pockets again while the richest are popping the champagne corks.

“The EU needs new economic rules which put the wellbeing of people and the future of the planet above arbitrary targets based on the ideology of the 1980s.”

Notes

ETUC Austerity Watch: https://www.etuc.org/en/etuc-austerity-watch

Calander of union mobilisations: https://www.etuc.org/en/road-fair-deal-workers

Table sources:

The ETUC’s calculations were made using latest OECD figures on the salaries of nurses and teachers: [Teachers' and school heads' statutory salaries (oecd.org);
Health Care Resources : Remuneration of health professionals (oecd.org)

GDP and deficit figures from European Commission. Deficit is expected figure for 2023.
AMECO Online - AMECO Online (Current Version 2023-05-15 11:00) | Sheet - Qlik Sense (europa.eu)

FOLLOW LIVE THE DEMONSTRATION HERE

Photos of the demonstration available here

Videos of the demonstration available here