Transcript EDUCATION, A RESPONSE TO THE CRISIS Public services

EDUCATION, A RESPONSE TO
THE CRISIS
Public services, austerity, alternatives
Jan Willem Goudriaan
European Federation of Public Service Unions
ETUCE conference
Brussels, 20 January 2011
Bucharest 14 January 2012
Protests turn violent over proposed legislation that seeks to privatise health care
(Private sector access to government funding while public services denied funding,
proposals withdrawn by government, protests continue, more anger 19th)
EU
Banking Crisis leading to a recession
and Social Crisis
Became a Public Debt Crisis giving rise
to Austerity
Deeping the Social Crisis and causing a
new recession ?
We are ending with a Democratic Crisis
in the Eurozone/EU
Barroso:
"Many member states need to show more
ambition when it comes to fiscal consolidation,"
he said. The commission also described many of
the proposed measures as "vague, lacking
sufficient focus.“ (early 2011)
Greece and Austerity
A 5 year programme (19/20 October 2011
Reducing public expenditure 14,32 Billion
14,09 extra income through taxes – eg. Higher property tax,
VAT from 19 to 23%, from 11 to 13 and from 5,5 to 6,5; levies
on achohol, tabacco, fuels increase with 1/3
IMF report December 2011 – revenues decrease
700.000 civil servants see lower income (20%, some with 33%)
30.000 civil servants non-active during 1year, reduce wage with
60% - dismissal after 1y
Only one in every 10 civil servants that retire in 2011 will be
replaced. Only one in 5 coming years
All households pay 2x solidarity charge in 2012 of between 1
and 5% of income
Greece and Austerity
People with a pension of more then 1000 euro loses a 1/5 of
the amount above this threshold
Taxfree threshold from 12.000 to 5.000 euros.
Health case savings 300 million (2011) and another 1, 81 billion
from 2012-2015
1976 schools closed or merged
Social security savings 1,09 billion euro; 1,28 in 2012; 1.03 in
2013, 1,01 in 2014, 700 million in 2015
50 billion to be get through privatisation (harbors, airports,
water company, power company, telecom, oil company sale of
mine, moterway land rights
All negotiations and arbitrations are deferred for
undetermined period. Private sector can force through
wage reductions and dismissals
Greece and Austerity
The economy is projected to shrink by
about 6 percent in 2011 (and shrunk in
2009 and 2010), and unemployment
has reached 16½ percent of the work
force. (IMF figures)
Projected to shrink in 2012
Crime, prostitution, HIV infections,
homelessness increase
Schools, hospitals close.
Latvia – a success ?
24% loss of its output – the worst in the world for the
crash of 2008-2009 – and official unemployment
shoots up from 5.3% in 2007 to more than 20% in
early 2010. (If underemployment is counted 30%)
The success: Unemployment is now back down to
14.4%, and the economy is growing – an estimated
4% for 2011 – but sustainable ? Links with others
For 13 countries over the last 20 years, the average
loss of GDP following devaluation was 4.5% of GDP.
Three years later, the average country was 6.5%
above its pre-devaluation peak.
Latvia, by comparison, did not devalue, and, three
years later, is still down 21% from its pre-crisis GDP
200.000 people left (Brain drain – 10% of workforce)
2011 Feb 20th - Trichet : "une bêtise" d'augmenter les salaires
Gerard van den Broek
Geheime brief aan Italie/ Lettre secrète à l'Italie
The impact of the crisis in the public
sector
Severe constraints on public budgets has resulted in:
Reductions in public sector employment
Cuts in pay and pensions
Cuts in social protection, coupled with increases in direct
and indirect taxation, and increases in pension age
Ongoing cuts are affecting employees working for the
general interest, in health, social security, education,
culture and arts, environment, justice and prison services
through to providing energy and waste services.
Threats to the autonomy of collective bargaining and
democratic accountability arising from EU/IMF conditions
EU developments
Economic Policy and Institutional Changes
EU financial supervisory authories
European Semester (annual growth survey and recommendations)
EuroPact plus
Legislative measures (6-pack)
Programme Countries (Greece, Ireland, Portugal)
EFSF to become ESM
Role for the IMF (Latvia, Roumania, Hungary, Ukraine, etc. ),
SPIV (getting Chinese money)
Increased role for the ECB (not just monetary – secret letters)
Task Force on Greece.
Spain & Italy forced to take measures. Italy to be monitored
Increased economic coordination with Euro-summit institutionalised
Permanent Euro WG President, “reinforced surveillance beyond 6 pack”
Commissoner with enforcement powers
New Treaty proposed
 Economic governance will change
 Monetary Union was not complete; new rules, new
institutions
 Which documents determine (2020 strategy) (COM –
AGS) or EuroPact Plus (intergovernmental)
 Binding following up on commitments (6 pack, 2 pack)
 Public Services are attacked
 See also results of the AGS 2011
 Consistency/coherence; absent reforms
 Logic linked with EMU – a. reduce public expenditure –
privatisation; b. decentralise wages c. PS were TUs are
strong
 For us Demand a debate – what works, what not, based on
all data (see BE) e.g. Wages are moderated whereas COM
says they are a problem. Look at the facts; New ideas - Take
out Green investment e.g addresing climate change
 Democracy debate – what political leadership – which view
Treaty on Stability Coordination
Governance in the EMU
Balanced Budget Rule – compliance of transposition
– jurisdiction of ECJ
Obligations to implement measures to correct
deviations
Content and Format of budgetary and economic
partnership programmes defined by the law of the
Union
Coordination national debt issuance
Role of Commission, role of EP, nat. parliaments
Preamble: respect the role of the social partners in
implementing the Treaty
ETUC on Treaty
ETUC rejects approach to impose ever stricter austerity. Fiscal
discipline alone, in the absence of recovery and investment measures,
is dragging countries into crisis. Employment and social justice are top
priority today for millions of Europeans.
Treaty does not address challenges created by the crisis. New treaty may
further strengthen the obligation of member states to adopt fiscal policies
that will accentuate rigid economic rules. A fiscal compact must go hand in
hand with a social contract for Europe. It must give priority to investments
that promote a sustainable economy, quality jobs and social justice, while
combating inequalities.
“Europe must not become synonymous with sanctions and rigid fiscal
policies. It must be identified with prosperity and must offer prospects for the
future." Debate and consultation are required. Process is not democratic
The ETUC calls for the adoption of a social protocol to the treaties that
guarantees respect for fundamental social rights and social protection. A
clause protecting the wage formation must also be adopted
Clear is that:
European economic governance
remains - a challenge for the unions in
the Eurozone and beyond
Public Services are attacked as
economic governance is used to force
austerity and a view of economy/
society (neoliberal, less welfare state)
Those that defend public services,
welfare state and an alternative view
towards sustainable economy are
attacked
Reasons for optimism
Our Alternatives
Address inequalities, macro-economic imbalances,
greed and strengthen the public services
Respect autonomy of the social partners and
increase coverage by collective agreements
Financial Transaction Tax at EU level; Wealthy; Tax
Justice; Financial Regulations
System of Eurobonds, European Public Bank
Solidarity mechanisms to assist countries hit; to
manage part of public debt
EU investment programme (1% of GDP) in
infrastructure, low carbon economy, public services
Address precarious work and low pay
.
EPSU
Central theme in our work
Continue monitoring, research
Impact on culture (libraries, musea...), women,
labour inspectorates, environmental protection
agencies, privatisation, 2011 AGS and NRP
(ETUI)
Opposition to Austerity–Promoting Alternatives
Call for Joint Action 30 November 2011
Statement (No to austerity Yes to Public
Services Growth and Jobs, for alternative
economic policy; respect for autonomy,
collective bargaining; for a democratic & social
Europe)
Make EPSU joint approach
EPSU
Further Steps
Position on Recent Economic Developments
Support Community Method of Working (role of
Commission, Parliament); Rejection of enforcer if no
democratic steps; Legal analysis (role of ECB; strength of
wage clause); Write off public debts through public audits
Integrate European Semester in our work (annual
cycle) and Influence Annual Growth Survey
 New one before end of November to be addressed by
Council on 8 December
Work with others – EAPN...
Reflect on Coordinating influence Action and having
an impact –next focus Spring Council,1 March 2012?
ETUC
Steering Committee 25/1
Launch of Campaign – No deal without
social contract; quality employment
Coordinated Action 29/2 ??
Decentral focused on government 1-2
March is European Summit.
In Short
More and better jobs: Investment in an
expanded European recovery plan
Stronger welfare systems to provide more
security and avoid social exclusion
Stronger workers’ rights and an end to the
dominance of the short-termist market
principles. Priority to social rights and
collective action
Better pay: stronger collective bargaining.
European solidarity as a protection
against the excesses of financial
capitalism
www.epsu.org