SCAEF Bulletin

August 2009

EU demands member governments cut public sector and support for industry

European Central Bank calls for

economic restructuring

The Governing Council of the European Central Bank meeting at the beginning of July issued a call for major cuts in public expenditure to start in 2010.  These cuts should be combined, they said, with a renewed drive for ‘labour flexibility’.  The ECB demands were reiterated by the EU Finance Ministers meeting on 6-7 July. 

 

These demands are binding on euro-zone members. They provide mandatory guidance for others. The key points in the statement are set out below.

 

Cuts in public expenditure are demanded of all governments.  ‘A return to sound sustainable public finance.. must be ensured.. Euro area governments should prepare and communicate ambitious and realistic fiscal exit and consolidation strategies within the framework of the Growth and Stability Pact [a maximum 3 per cent GDP for annual deficits; 60 per cent for debt]..’

 

These programme should start within six months in 2010. ‘The structural adjustment should start not later than the economic recovery.  In 2011 consolidation efforts should be stepped up’.

 

The cuts should be steep: over 0.5 per cent GDP per annum in all countries (ie well over 1 per cent of public spending).  ‘In countries with high deficit and debt ratios the annual structural adjustment should reach at least 1 per cent of GDP’

 

They should be combined with programmes for labour market reform.  ‘It is crucial to accelerate the implementation of necessary structural reforms.  In particular product market reforms are required to foster competition and restructuring.. Furthermore, labour market reforms need to facilitate appropriate wage setting and labour mobility across sectors and regions’.

Restructuring and consolidation requires cuts in industrial capacity.  ‘Policy measures taken in recent months with a view to supporting significant sectors of the economy should be phased out.. It is essential that the focus is now on strengthening adjustment capacity and flexibility.’

 

Solidarity Call for Ireland’s fight for democracy

Bob Crow, RMT general secretary , has called on trade unionists to send solidarity messages to the Irish People’s Movement in its campaign to defend the right of the Irish people to reject the Lisbon Treaty.

 

In 2007 the Irish electorate decisively rejected the Lisbon Treaty in a 54 per cent turn out.  The EU Council of Minsters has refused to accept this verdict. At the June 2009 EU Summit the Irish government was instructed to hold a referendum by the end of October. The Irish government has now fixed the date for Friday 2 October.   As part of the deal, the June EU summit offered ‘guarantees’ on a number of key issues that had been raised in the previous referendum including Ireland’s neutrality and taxes. 

 

EU leaders claimed that these guarantees had the equivalent of legal status and would be included as protocols in future treaties.  On 3 July no less than Baroness Kinnock, Britain’s Europe minister, assured the House of Lord that the guarantees secured by the Irish were ‘not legally binding’ and did not change the Lisbon Treaty.

 

“Fear the sole argument of the Yes side”

Leader of the Irish People’s Movement, former Green MEP, Patricia McKenna comments: “The supporters of the Lisbon Treaty are relying on an environment of fear and emotional reaction concerning our economy. However, this economic argument of fear, which is basically the sole argument of the Yes side, will as the debate continues be exposed as one of the weakest reasons to support the Lisbon Treaty. It is clear that the very deregulated economic model upon which Lisbon is based is responsible for the current international financial collapse – which is why the Lisbon Treaty, founded on this failed economic approach, will be rejected once again by Irish voters in October’. 

 

A great deal depends on the Irish result.  The presidents of both Poland and the Czech Republic have said they will not sign unless the Irish people vote Yes. The German Courts have also recently delivered a decision, in response to a petition of the German Left Party, that the Treaty infringes the principles of the German Constitution.  The Court specifically highlighted the undemocratic character of the EU parliament and argued that under the Treaty the German parliament lacked the scrutiny powers to ensure democratic decision making.  The German government is now faced with the task of passing emergency legislation before the end of September.

 

MODEL RESOLUTION OF SUPPORT FOR IRISH ANTI-LISBON MOVEMENT

Trade Unionists against the EU Constitution is asking all TU bodies to send solidarity motions to the Irish People’s Movement: 25 Shanowen Crescent, Dublin 9 (post@people.ie).  A model resolution is given below:

 

“This branch/committee sends its solidarity to the Irish People’s Movement ahead of the second Irish Referendum on 2 October.  We note that the 'guarantees' given by the EU to Ireland on workers’ rights in order to get Irish voters to back the EU constitution/Lisbon treaty would not, as the British prime minister Gordon Brown has said, change the Treaty whatsoever.  As such the Lisbon Treaty is a threat to the democratic rights of EU member states. It is also a threat to workers’ rights and legally reinforces the European Court of Justice rulings raising the spectre of a ‘race to the bottom’ in terms of wages and conditions.  Recent attacks on workers from the Irish Ferries dispute in 2005, Gate Gourmet in 2006 to the ongoing Lindsey oil refinery struggle 2008/9 would intensify if the Lisbon Treaty came into force.  We note that Poland, Germany and the Czech Republic have not ratified the Lisbon treaty, which imposes right wing Thatcherite economic policies as constitutional goals. We demand that the democratic wish of Irish voters, already expressed in the rejection the treaty in June 2008, is respected. We resolve to assist and give support to trade union and progressive groups in Ireland campaigning against the treaty in any second referendum by sending solidarity messages and making a donation”.

 

At the same time that the Calman Commission proposes new powers for the Scottish Parliament, the Lisbon Treaty takes them away.

This is the irony underlying Scotland’s current constitutional debate.

The SNP argues for an independent parliament. Calman proposes that the existing parliament secures powers to borrow and to control the raising of a greater share of income tax.

But in terms of meaningful powers that can improve the lives of ordinary people none of the proposals will make any difference.

The long struggle to secure a Scottish Parliament was driven by the belief that it would allow Scottish voters to opt for progressive social and welfare policies, to develop the productive economy and do something about unemployment.

It was the slogan ‘The right to work’ (in one’s own country) that underlay the decision of the Scottish trade union and labour movement to support a devolved parliament in the 1970s.

But the final ratification of the Lisbon Treaty swill irreversibly imprison both Holyrood and Westminster within open market, neo-liberal limits.

The policy implications are already quite clear.  The July meetings of the European Central Bank and the EU Foreign Ministers laid out a comprehensive programme of savage cuts in public expenditure from 2010 and the phasing our of recent crisis measures to support industry.

Still more sinisterly the statement also calls for labour market reform that can assist ‘wage setting’ and the ‘movement of labour’ across sectors and regions. 

Trade unionists should be under no illusion that the recent EU Court of Justice decisions against strike action were maverick aberrations that can be easily reversed. 

This is why it is so important that every support be given to the Irish People’s Movement in its opposition to the Lisbon Treaty.

Both Holyrood and Westminster need every democratic power they still possess to defend us against EU neo-liberalism.

First Lead

Second Lead

No2EU election campaign in Scotland

Nominating Officer former MEP Alex Smith provides an assessment

 

Barely eight weeks before the European Parliament elections No2eu -Yes to Democracy set off its campaign in Scotland. At our Scottish press launch on 7th May we presented our six candidates and set out our platform of opposition to the anti-working class agenda of the E.U. and its enshrinement in the Lisbon Treaty.

 

Our list of candidates reflected the wide spectrum of Scottish political life and experience and the issues we were raising went right to the heart of the debate on the undemocratic nature of the E.U. As far as the hustings were concerned our candidates reported that our platform was in touch with the very real concerns of active trade unionists and those of the general public who were wary of the contents of the Lisbon Treaty.

 

John Foster from our list confirms that had we not been in the contest then very few of these issues would have been raised. Tommy Sheridan also on our list comments that "the fact that there was major trade union involvement in our campaign evoked a very positive response and augurs well for future activity on these issues, particularly if we can maintain a robust left of centre campaign on a similar platform”.

 

“A major trade union committed to exposing the true nature of the EU”

The election itself, fought against a backdrop M.P.s expenses scandal, general disaffection with the mainstream political parties and historically low turnouts, nevertheless provided an opportunity to assess the public mood on attitudes to the E.U. It seems probable that voter apathy has more to do with the lack of an inspiring programme of a genuine alternative to the neo-liberal agenda of the E.U. and its advocates than to the more popular explanations. Therein possibly lies our opportunity to gather support for our campaign, provided we can keep the issues at the forefront of the debate. In this regard the involvement of the R.M.T. in our efforts cannot be under-rated, a major trade union and its leadership committed to exposing the true nature of the direction of the E.U. may very well provide the impetus necessary to raise the campaign to another level.

 

The election is now over but the issues will not go away. E.C.J. judgments will continue to attack the hard won gains of working people, the neo-liberal agenda of cuts in public expenditure will become evermore apparent and the arrogant demand for a re-run of the Irish referendum will provide proof should any further be needed of the anti-democratic and ultimately anti-citizen nature of the E.U.