UNI urges G20 leaders to take action to quell growing sense of panic
Jennings urged the G20 to finally seize the opportunity presented by the crisis and accelerate financial market reforms and deliver a coordinated jobs plan. The band aid approach to the crisis is not working and the G20 must come together to restore confidence levels on the verge of total collapse. The recent ITUC global opinion poll shows that only 13% of people believe they have real influence on governments’ economic decisions. This growing lack of confidence in democracy is a result of the G20 austerity policies that have seen family incomes plummet along with job security.
Jennings said, “What we are seeing in the run up to the G20 in Los Lobos is a perfect storm, with borrowing costs soaring in Italy and Spain where the threat on a run on the banks is growing. Germany has once again turned its back on euro bonds and is sending out pessimistic signals at a moment when building confidence is paramount. The results of the Greek elections on Sunday could tip the balance from crisis to panic. UNI Global Union and other leaders in the labour movement via the L20 are urging that the G20 turn this crisis into opportunity.”
He continued, “What is required is strong leadership and a global plan to tackle the crisis by setting out concrete measures to reform the warped banking sector and deliver on jobs rather than throwing more money at the banks; some £100bn in the case of the UK. This initiative comes at a time when UK families are seeing the steepest income drop in 30 years. A reality shared by many other countries around the world. The UK’s latest measure to batten down the hatches against the Eurozone debt storm smacks of desperation.”
“We need coordinated action. Large powerful economies such as Germany and the UK should know that if one country is allowed to sink, such as Greece, the rest may eventually be pulled down with it. It is both a moral and practical imperative for the G20 to stand and act together. We go to Los Labos with this call for action,” he concluded.
Jennings said the G20 plan should incorporate three essential points:
1. Make big capital work: put the mounting cash pile that large enterprises sit on back into the economy to stimulate investments.
2. Make small capital work: change austerity measures to put more money back into working people’s pockets and thus stimulate demand.
3. Change the rules of the game: accelerate financial market reforms and deliver a coordinated jobs plan.