Corporations are harming Europe’s competitiveness by choosing to hoard a greater share of profits instead of reinvesting them to raise productivity and create quality jobs, an analysis of EU data by the European Trade Union Confederation (ETUC) shows. Gross investment has fallen by 9% across the EU since 2019 and is at its lowest rates since 2014, when the economy was still reeling from the financial crisis. 

A return to austerity when we desperately need to increase investment would take Europe down a road to ruin, the General Secretary of the European Trade Union Confederation (ETUC) warned in Rome today. Speaking at a European conference against austerity organised by the Italian General Confederation of Labour (CGIL), Esther Lynch recalled how the austerity measures put in place after the 2008 financial crisis were a catastrophe for working people.

The ETUC’s call for a major shift towards more EU investment has been backed by Draghi, but trade unions warn that specific measures will be needed to ensure the investment creates quality jobs in all sectors and all regions. Trade union involvement will be key. Social dialogue and collective bargaining must be at the centre of the solution for European competitiveness. We call on the President of the European Commission to convene a social partner working group to discuss the report and the way forward.