Thousands of workers from across Europe, including a delegation from the ÖGJ, made it clear on 12 December, at a large European Trade Union Confederation (ETUC) demonstration in Brussels, what they thought of the EU's planned austerity 2.0 program – nothing.
What is known so far about the austerity program, which is expected to come into force in 2024: According to the current proposal, 14 member states will be forced to cut 45 billion euros from their budgets next year alone, according to ETUC calculations based on data from the European Commission. Final agreement on the new rules is still pending, but under the current proposal, Member States with a deficit greater than 3% of GDP must reduce their budget deficit by at least 0.5% of their GDP every year .
The return to austerity destroys jobs and reduces wages
“What that would mean is clear,” brought EGBGeneral Secretary Esther Lynch said it bluntly at the rally: “A return to austerity would destroy jobs, drive down wages, provide even less funding for already stretched public services and all but guarantee another devastating recession.” for example, we are no longer able to make the necessary investments to achieve the already completely inadequate results presented by the EU heads of state and government at the COP28 world climate conference, which has just ended in Dubai.
A return to austerity would destroy jobs, drive down wages, provide even less funding for already overstretched public services and all but guarantee another devastating recession.
Esther Lynch, General Secretary of CES
Katzian: A slap in the face to all workers in Europe
“These plans to return to austerity policies are unacceptable for us as unions”, he further criticizes President of the ÖGB and EGB, Wolfgang Katzian. Time is still characterized by multiple crises. “More and more people no longer know how they can live. The costs of basic needs like energy and food are rising and the climate crisis is getting worse. “Placing the red pencil now, in this moment of crisis, is a slap in the face to all workers in Europe!”
We will not accept trade union rights being weakened in the name of economic growth.
Wolfgang Katzian, President of the ÖGB and EGB
“Austerity policies have never led to social and economic improvements,” Katzian continued. In Finland, social benefits are being reduced and trade union rights are being restricted in the name of debt reduction. In Germany, financing the fight against the climate crisis is more difficult because the debt brake is anchored in the constitution. And in Greece, where a brutal austerity program was implemented following the 2007/2008 economic crisis, this policy actually deepened the crisis and led to endless suffering among the population.
Those who ask for debt reduction mean social cuts
“We must not sacrifice our welfare states to neoliberal economic logic. And we will not accept trade union rights being weakened in the name of economic growth.
Because the same people who call for the rationalization of the State, sooner or later, will also argue that wage increases inhibit economic growth. This is particularly dangerous for the European unions”, warns Katzian: “Whoever asks for debt reduction means social cuts. We do not need austerity programs, we need extensive investment in the welfare state, education and assistance sectors. We need to combat the housing crisis and strengthen social dialogue.”
The CES and its member organizations formulated their demands in the demonstration:
- Economic governance rules that put the well-being of people and the planet above arbitrary thresholds, notably through a “golden rule” for public investment that at least exempts investments for the EU's social and climate objectives and fair transitions of spending limits.
- A further one-year extension of the general escape clause of the Stability and Growth Pact, in order to provide sufficient time for a sustainable reform of economic governance rules.
- Initiatives that ensure fair treatment for workers, including better jobs and higher wages, support for collective bargaining, better working conditions and an end to precarious employment.
Unions will not rest until austerity plans are off the table
“Austerity has failed. We are committed to expanding the welfare state, as well as the education and assistance sectors”, summarized Katzian: “It is the unions that guarantee the living standards of workers and that fight to ward off the effects of price increases and inflation. We stay on this path – we will not rest until plans for European austerity measures are off the table. We will work daily at national level and as a European social partner to guarantee a life worth living for all workers in Europe.”
The unions' fight against austerity plans can also be supported online – CLICK HERE!