The new EU rules for national debts and deficits will limit member states ability to act on climate change in a socially fair manner, the secretary general of the European Trade Union Confederation (ETUC), Esther Lynch, told Euractiv in an interview, warning against a return of austerity across the bloc.
The ongoing economic governance review, which looks to keep EU member states deficit and debt levels in check, has been the source of intense negotiations in recent months, in the hope that ministers agree on a new set of rules by year-end.
The previous rules in place, whose application was suspended in 2020 to account for the COVID crisis, were found to reinforce and encourage austerity politics: The constraints for member states to reduce debt and deficit were such that it would ultimately backfire, with high social and economic costs.
In April, the Commission officially proposed a new framework, with tailored four-year-long debt reduction plans for each country, and looked to give member states more leeway when looking to invest in the twin green and digital transition.
In practice, however, the review is no panacea, Lynch told Euractiv. Weve asked member states to do the sums, she said.
Were worried member states are sleepwalking into this decision [to review debt rules].
According to Lynch, whose main role is to speak on behalf of 93 trade union organisations from across the bloc, member states have not quite worked out what in practice [these new rules] will mean in one year, two years, three years [] and what austerity measures some of them will have to put in place.
Her concerns centre around a set of common benchmarks, added into the Commissions proposal after a last-minute push by Germany, which would apply uniform rules to all debt reduction plans, irrespective of country-specific needs.
This, many experts have argued, gravely limits the true impact of the reform, and curtails long-term investments in the green transition.
In a communiqu released last April, ETUC called for a golden rule on public investments, as EU countries look for new ways to finance green investments and achieve the EUs 55% greenhouse gas emissions reduction plans by 2030.
It should be like in a company, Lynch said, where you would be able to depreciate the investment over a long period of time.
Instead, as things stand in European Council negotiations, green and digital investments would not be explicitly mentioned in the rules unlike defence investments, as Euractiv recently revealed but could be taken into account when the European Commission considers expanding debt reduction trajectories from four to seven years.
Not good enough in Lynchs eyes: What we are absolutely asking for is for fiscal scope, managing the green transition, and social expenditures. The current state of things is such that there are no safeguards that it will not affect the most vulnerable, she claimed.
We go to meetings where we are told nobody will be left behind. Were told there is a European pillar of social rights, theres a Social Europe. But as were having these conversations, at the very same time, [debt rules negotiations] will be introducing a set of rules which will make everything else impossible.
In her view, it is high time the conversation opened to a general public debate, so citizens across the EU understand what these new rules mean for them.
The discussion has been hijacked by technical specialists, by technocrats, Lynch said. We would have expected governments to [] work out exactly what costs would need to be made.
Will taxes go up? Will austerity measures be implemented? Citizens are not in the know because the conversation has been moved out of the public domain.
Yet the consequence of the outcome of that discussion has very real implications for political decisions, and it will narrow the margin for political decisions to be made at the national level, Lynch warned.
In ETUCs view, there is still time for member states to go back to the drawing boards, and make the whole thinking over new debt rules more democratic.
In this vein, she refuted the argument that an agreement must absolutely be found before the end of the year, or else old rules would start applying again.
The current suspension [of the debt rules] would remain in place for another couple of months so as to give time rather than just create an unnecessary deadline.
Ultimately, she had one clear message for all member states: Dont make the mistake of sleepwalking into a set of rules before youve done the sums and figured out what the consequences are.
[Edited by Jonathan Packroff / Zoran Radosavljevic]
Read more from the original source:
Debt rules will affect the most vulnerable, EU trade union chief warns - EURACTIV
- Versions of the Golden Rule in dozens of religions and other ... [Last Updated On: June 10th, 2016] [Originally Added On: June 10th, 2016]
- Rockwell's "Golden Rule" - Norman Rockwell Museum [Last Updated On: June 12th, 2016] [Originally Added On: June 12th, 2016]
- Versions of the Golden Rule in dozens of religions and ... [Last Updated On: June 12th, 2016] [Originally Added On: June 12th, 2016]
- Golden Rule - Wikipedia, the free encyclopedia [Last Updated On: June 12th, 2016] [Originally Added On: June 12th, 2016]
- Golden Rule (fiscal policy) - Wikipedia, the free encyclopedia [Last Updated On: June 12th, 2016] [Originally Added On: June 12th, 2016]
- Rockwell's "Golden Rule" - Norman Rockwell Museum [Last Updated On: June 16th, 2016] [Originally Added On: June 16th, 2016]
- Health insurance made simple | UnitedHealthOne [Last Updated On: June 19th, 2016] [Originally Added On: June 19th, 2016]
- Health insurance made simple | UnitedHealthOne [Last Updated On: June 19th, 2016] [Originally Added On: June 19th, 2016]
- The Golden Rule - harryhiker.com [Last Updated On: June 19th, 2016] [Originally Added On: June 19th, 2016]
- What is the Golden Rule? - GotQuestions.org [Last Updated On: June 21st, 2016] [Originally Added On: June 21st, 2016]
- Golden Rule Plumbing Heating & Cooling [Last Updated On: June 21st, 2016] [Originally Added On: June 21st, 2016]
- Golden Rule: Treat People as You'd Like to Be Treated [Last Updated On: June 25th, 2016] [Originally Added On: June 25th, 2016]
- What is the Golden Rule? (with pictures) - wiseGEEK [Last Updated On: June 25th, 2016] [Originally Added On: June 25th, 2016]
- World Scripture - The Golden Rule - Unification [Last Updated On: June 28th, 2016] [Originally Added On: June 28th, 2016]
- Golden Rule: Treat People as You'd Like to Be Treated [Last Updated On: June 28th, 2016] [Originally Added On: June 28th, 2016]
- Golden Rule - New World Encyclopedia [Last Updated On: June 28th, 2016] [Originally Added On: June 28th, 2016]
- Golden rule (law) - Wikipedia, the free encyclopedia [Last Updated On: June 28th, 2016] [Originally Added On: June 28th, 2016]
- Golden Rule - Robinsons Brewery [Last Updated On: June 29th, 2016] [Originally Added On: June 29th, 2016]
- Live by the Golden Rule (pledge/petition/proclamation ... [Last Updated On: June 29th, 2016] [Originally Added On: June 29th, 2016]
- The Golden Rule in World Religions - TeachingValues.com [Last Updated On: June 29th, 2016] [Originally Added On: June 29th, 2016]
- 18 Practical Tips for Living the Golden Rule : zen habits [Last Updated On: June 29th, 2016] [Originally Added On: June 29th, 2016]
- Golden Rule Plumbing Heating & Cooling [Last Updated On: June 29th, 2016] [Originally Added On: June 29th, 2016]
- Health insurance helps you manage your health care costs ... [Last Updated On: June 29th, 2016] [Originally Added On: June 29th, 2016]
- Upcoming Events Welcome the Golden Rule to Poulsbo ... [Last Updated On: August 16th, 2016] [Originally Added On: August 16th, 2016]
- UCF Golden Rule UCF [Last Updated On: August 23rd, 2016] [Originally Added On: August 23rd, 2016]
- VFP Golden Rule Project | Advancing VFP Opposition to ... [Last Updated On: September 2nd, 2016] [Originally Added On: September 2nd, 2016]
- Bible Verses About Golden Rule - King James Bible [Last Updated On: September 29th, 2016] [Originally Added On: September 29th, 2016]
- Why Choose UnitedHealthcare? - uhone.com [Last Updated On: October 13th, 2016] [Originally Added On: October 13th, 2016]
- Golden Rule Charter School [Last Updated On: November 6th, 2016] [Originally Added On: November 6th, 2016]
- Golden Rule Chronology - Gensler's Home Page [Last Updated On: November 6th, 2016] [Originally Added On: November 6th, 2016]
- The Golden Rule | Our Daily Bread [Last Updated On: November 6th, 2016] [Originally Added On: November 6th, 2016]
- Golden Rule Community CU [Last Updated On: November 21st, 2016] [Originally Added On: November 21st, 2016]
- Golden Rule - Wikipedia [Last Updated On: November 23rd, 2016] [Originally Added On: November 23rd, 2016]
- Golden LivingCenter Golden Rule [Last Updated On: December 9th, 2016] [Originally Added On: December 9th, 2016]
- The Golden Rule - Life, Hope & Truth [Last Updated On: December 9th, 2016] [Originally Added On: December 9th, 2016]
- Transition Probabilities and Fermi's Golden Rule [Last Updated On: January 11th, 2017] [Originally Added On: January 11th, 2017]
- Rockwell's "Golden Rule" - Norman Rockwell Museum - The Home ... [Last Updated On: January 13th, 2017] [Originally Added On: January 13th, 2017]
- Golden calf - Wikipedia [Last Updated On: January 15th, 2017] [Originally Added On: January 15th, 2017]
- Matriarchy - Wikipedia [Last Updated On: January 21st, 2017] [Originally Added On: January 21st, 2017]
- Opinion: No room for walls in Gospel's Golden Rule - The Catholic Register [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- Rev. Jeff Bobin: The Golden Rule - GoErie.com [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- No Gods, No Masters: Live the Golden Rule - Dissident Voice [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- Let the Golden Rule be our response locally and globally - Berkeley Independent [Last Updated On: February 6th, 2017] [Originally Added On: February 6th, 2017]
- Good neighbors and the Golden Rule - WiscNews [Last Updated On: February 11th, 2017] [Originally Added On: February 11th, 2017]
- Shock on The Voice UK as coaches break a golden rule of the show and meet rejected Blind Audition singer Ciara Harvie - Radio Times [Last Updated On: February 12th, 2017] [Originally Added On: February 12th, 2017]
- Following the golden rule in times of tumult - College Heights Herald [Last Updated On: February 14th, 2017] [Originally Added On: February 14th, 2017]
- The Golden Rule of Business - Times-Citizen Communications [Last Updated On: February 15th, 2017] [Originally Added On: February 15th, 2017]
- A Fool's Golden Rule - Word and Way - Word and Way [Last Updated On: February 15th, 2017] [Originally Added On: February 15th, 2017]
- LETTER: Living by 'Golden Rule' would defeat ISIS - Daily Record - Daily Record [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- h3cz: The Golden Rule of Twitter - Dexerto [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- Motivating Your Team: Why The Golden Rule Doesn't Always Apply - Forbes [Last Updated On: February 17th, 2017] [Originally Added On: February 17th, 2017]
- Would golden rule survive if we were under siege? - Port Huron Times Herald [Last Updated On: February 20th, 2017] [Originally Added On: February 20th, 2017]
- Apply the Golden Rule to lift results - Business Management Daily [Last Updated On: February 22nd, 2017] [Originally Added On: February 22nd, 2017]
- United Way to present Golden Rule-Lightkeepers, Fabric of our Community Awards - Jacksonville Daily News [Last Updated On: February 23rd, 2017] [Originally Added On: February 23rd, 2017]
- 57th District It's the Golden rule: J. Central moves into 7th straight finals - The Independent [Last Updated On: February 23rd, 2017] [Originally Added On: February 23rd, 2017]
- From mushroom picker to deputy sheriff: Herc Avello relishes golden rule - Daily Local News [Last Updated On: February 24th, 2017] [Originally Added On: February 24th, 2017]
- The Golden Rule of Social Selling: Solve Your Customer's Problem - Business 2 Community [Last Updated On: February 24th, 2017] [Originally Added On: February 24th, 2017]
- Ron Forthofer: To live by the Golden Rule, we must recognize the 'others' - Longmont Times-Call [Last Updated On: February 24th, 2017] [Originally Added On: February 24th, 2017]
- Measuring life by the Golden Rule ... not a cellphone app - Bristol Herald Courier (press release) (blog) [Last Updated On: February 25th, 2017] [Originally Added On: February 25th, 2017]
- Apply the Golden Rule to immigrants - Statesman Journal [Last Updated On: February 28th, 2017] [Originally Added On: February 28th, 2017]
- Is the Golden Rule Still Alive and Well in America? - Huffington Post [Last Updated On: February 28th, 2017] [Originally Added On: February 28th, 2017]
- Five golden rules to always be in profit when you invest in equities - Economic Times [Last Updated On: March 1st, 2017] [Originally Added On: March 1st, 2017]
- Engineering's Golden Rule - Sourceable [Last Updated On: March 1st, 2017] [Originally Added On: March 1st, 2017]
- Email and The Golden Rule - Memphis Daily News - Memphis Daily News [Last Updated On: March 1st, 2017] [Originally Added On: March 1st, 2017]
- Golden Rule of Chaplaincy: Thy Shoes Matter - Boston.com [Last Updated On: March 4th, 2017] [Originally Added On: March 4th, 2017]
- Career Corner: The Golden Rule - Journal Record (subscription) [Last Updated On: March 4th, 2017] [Originally Added On: March 4th, 2017]
- Much to be gained from Golden Rule - Jackson Clarion Ledger [Last Updated On: March 5th, 2017] [Originally Added On: March 5th, 2017]
- OPINION: If only our institutions practiced the Golden Rule - Cape Cod Times (subscription) [Last Updated On: March 6th, 2017] [Originally Added On: March 6th, 2017]
- OPINION: If only our institutions practiced the Golden Rule - Nantucket Island Inquirer [Last Updated On: March 7th, 2017] [Originally Added On: March 7th, 2017]
- In the Neighborhood: A Meditation on the Golden Rule, Cheaters, and Prophets - Patheos (blog) [Last Updated On: March 11th, 2017] [Originally Added On: March 11th, 2017]
- The Golden Rule: Not So Golden Anymore | Issue 74 ... [Last Updated On: March 12th, 2017] [Originally Added On: March 12th, 2017]
- The Golden Rule | Our Daily Bread - odb.org [Last Updated On: March 12th, 2017] [Originally Added On: March 12th, 2017]
- Prairie Talk: Picture books teach us all - Herald & Review [Last Updated On: March 17th, 2017] [Originally Added On: March 17th, 2017]
- #3 Golden Rules for Entrepreneurs Starting Out Today - Entrepreneur [Last Updated On: March 17th, 2017] [Originally Added On: March 17th, 2017]
- A bowl of water and the golden rule - West Plains Daily Quill [Last Updated On: March 17th, 2017] [Originally Added On: March 17th, 2017]
- Hawaii judge upholds America's 'Golden Rule' - CNN [Last Updated On: March 17th, 2017] [Originally Added On: March 17th, 2017]
- Letter: If all could only follow the Golden Rule - Olean Times Herald [Last Updated On: March 19th, 2017] [Originally Added On: March 19th, 2017]
- 377A: Remember the golden rule in policymaking | TODAYonline - TODAYonline [Last Updated On: March 21st, 2017] [Originally Added On: March 21st, 2017]
- The Candlery keeps working partners busy - Muskogee Daily Phoenix [Last Updated On: March 23rd, 2017] [Originally Added On: March 23rd, 2017]
- Five golden rules to help solve your recycling dilemmas - The Conversation AU [Last Updated On: March 27th, 2017] [Originally Added On: March 27th, 2017]