News

2013 marks the fifth consecutive year of economic crisis in Europe. The European Economic and Monetary Union (EMU), which was once perceived as the biggest leap forward in European integration, has turned into the biggest threat to the European project to date and lies at the heart of global economic woes. The breakout of the crisis can be tracked down to economic imbalances and political inconsistencies that were not adequately addressed. There can be no doubt that an effective system of EU economic governance is urgently needed. From a trade union perspective, an economic governance framework is required that is social and democratic. It must create sustainable upward pressure on incomes, employment and working conditions without interfering in national social security, wage-setting and collective bargaining systems.

As this UNI Europa report will demonstrate, however, the system of EU economic governance that has been established in reaction to the crisis threatens to calm markets and investors to the detriment of European (service) workers. Worse still, this system has translated market-meltdown into a social and humanitarian disaster. By taking stock with the recent attacks on the European Social Model, UNI Europa seeks to brief its affiliates about the dire effects of the neo-liberal policy blueprint that is currently applied to EU economic governance. This report will make the case that EU economic governance must change course now and be put at the service of the welfare of European citizens.

UNI Europa’s position paper ‘For a socially responsible and democratic economic governance: a trade union checklist’ outlines benchmarks for a balanced approach to economic governance in the EU. Respect for the demands that are formulated in this checklist is of utmost importance in order to ensure that the process of European integration does not turn against the seven million service workers that UNI Europa represents. UNI Europa cannot accept a European Union that is reduced to a mere single market project and free trade zone.

TABLE OF CONTENTS

1 The European Semester – Harmonising Economic Governance in Europe

2 EU Economic Governance and its Effects on Collective Bargaining, Wages, and the Quality of Employment

• 2.1 Collective Bargaining
  2.2 The Declining Quality of Employment
  2.3 Wages

3 The New Distribution of Power and the Aggravated Democratic Deficit

• 3.1 The Empowerment of the EU level
  3.2 Sidelining Parliaments at the European and National Levels
  3.3 Squeezing Social Partners

4 A View Forward

5 Conclusions

[see "Related Files" for full pdf-version]