Heads of state and government from the 27 EU member states are on their way to Brussels for what will be the third European Council meeting this year. They are expected to adopt a series of measures designed to strengthen the coordination of economic policies, especially among countries that use the euro.
As they are whisked toward Council headquarters in chauffeur-driven cars with motorcycle escorts, the most keen-eyed leaders may catch glimpses of demonstrations that have been organised by Belgian trade unions as part of a coordinated series of actions across Europe.
Trade union leaders are mobilising their members around fears about the anticipated social consequences of so-called 'austerity' measures, which they see as being imposed on member states by the EU institutions in response to pressures from global financial markets.
Proposals 'hostile to workers', say unions
Speaking to journalists yesterday (23 March), John Monks, general secretary of the European Trade Union Confederation (ETUC), described the package of economic measures being considered by EU leaders as "austerity governance" and "hostile to workers".
"The central provision is that wages should go in a downwards direction, and that the adjustments to the financial crisis should be borne by workers," said Monks.
"Workers are paying for this crisis with their jobs in some cases, extra precariousness in other cases, and in the public sector in terms of wage cuts," he added.
This morning, Monks will represent ETUC at a tripartite social summit attended by European Council President Herman Van Rompuy, European Commission President José Manuel Barroso, representatives of the Hungarian EU Presidency and leaders of employers' organisations.
"We will be arguing for a system of economic governance that’s positive on growth and positive on jobs and is not, as it is at the moment, based on austerity," insisted Monks.
Trade unions support the idea of introducing a Financial Transactions Tax (FTT), as well as a system of euro bonds that would make it easier for countries like Portugal to manage their debts. They are also calling for urgent action to create job opportunities for young people.
According to Monks, unions would be strongly opposed to any framework at EU level that requires member states to raise retirement ages or reduce wage levels in the public sector.
He also insists that countries such as Belgium, which automatically increase pay levels every year in line with inflation, should not be obliged to abandon their so-called 'indexation' schemes.
ETUC said that it was expecting around 25,000 trade union members to take part in today's demonstrations, which are being organised in parallel by the two largest associations of Belgian trade unions, namely the socialists (FGTB/ABVV) and the Catholics (CSC/ACV).
Employers emphasise competitiveness
As one would expect, the main umbrella organisation representing private sector employers does not agree with the trade unions on how the economic governance of the EU should be managed.
Jürgen Thumann, president of BusinessEurope (which represents Europe's biggest companies) has written a letter to President Van Rompuy in which he underlines the European business community's support for measures set out in the so-called 'Pact for the Euro', which was agreed by leaders of the 17 eurozone countries at their meeting in Brussels on 11 March.
"Member states' commitment to improve competitiveness and better adapt their national policy frameworks to the reality of monetary union is an absolute must if we want to put an end to this crisis and prevent a repetition of similar difficulties in the future," writes Thumann.
Challenging the arguments being put forward by trade unions, the employers' federation considers that "boosting competitiveness is the only sustainable way to improve growth and employment and should be the common aim of social partners throughout Europe".
"Unjustified hostility to balanced reforms cannot be allowed to block the necessary modernisation of Europe's labour markets," insists Thumann.
BusinessEurope is calling on the Council and the European Parliament to adopt, before the end of June, an "ambitious legislative package to reinforce economic governance," including "automatic enforcement rules" and giving "a central role" to the European Commission.
Looking beyond the debate between employers and unions, a number of NGOs are concerned that the increased political attention being given to economic and financial issues is threatening to overshadow the European Union's social objectives (see 'Positions').
