Brussels, 14/10/08
As highlighted by John Monks, ETUC General Secretary: 'Casino capitalism has failed and policy must change track. Europe can no longer allow its members to pursue the typical agenda of the national interest. If ‘beggar-thy-European neighbour’ policies continue, things will get pretty ugly. Instead, Europe needs to bundle resources and mobilize the power of acting together.’
We need a European policy reply in order to:
• Save Europe from the financial profiteers: a European Recapitalisation Fund injecting new capital in the banking sector, thereby also avoiding the danger of national governments leaving the rescue of cross-border multinational banking groups to other governments, hence to no one. A full re-regulation of financial markets so that they function in the interest of the public good.
• Save the real economy from casino capitalism: a European Investment Fund to promote investment in renewable energies, energy savings, innovation and European infrastructure networks. Growth driven by bubbles and speculation needs to be replaced with green investment as a new and sustainable driver for European demand.
• Save wages from the central bankers: a total overhaul of the European Central Bank’s (ECB) policy model. The ECB’s crusade against wages is misguided and has to stop. The model of monetary policy–making needs to be completely overhauled. Inflation cannot be the only needle of the compass. The ECB also needs to take into account the Treaty mandate of pursuing economic growth, high employment and social cohesion.
• Ensure that monetary policy focuses not only on past inflation but also on where the real economy is headed. A Supervisory Board comprising representatives of the European social partners and the members of the European Central Bank’s Executive Board has to be put in place.
Annex to the press release outlining in more detail ETUC’s proposals to tackle the financial crisis in a socially sustainable way.