Rigidity. European trade unions are rejecting the new European treaty, which the 27 negotiated in December (except the UK and the Czech Republic) in favor of greater budget rigor and for better economic and monetary coordination, which the ETUC says currently means austerity. Signed at the end of January, the budget pact provides that the countries will anchor the ‘golden rule’ on the balance of their public budgets in their constitutions. The States commit to maintain balanced budgets, curbing structural deficits at 0.5 percent of GDP and, in case of a loss of control, an “automatic correction mechanism.” Besides, should governments overstep the deficit limit of 3 percent of GDP, there will be a near-automatic disciplinary procedure. The ETUC condemns the rigidity of the measures as unemployment in the Euro zone is reaching heights (10.3 percent in November 2011). It says that implementing these austerity policies in Europe harms the European social model, particularly with the pay cuts and measures to make the labor market more flexible.
rol, an “automatic correction mechanism.” Besides, should governments overstep the deficit limit of 3 percent of GDP, there will be a near-automatic disciplinary procedure. The ETUC condemns the rigidity of the measures as unemployment in the Euro zone is reaching heights (10.3 percent in November 2011). It says that implementing these austerity policies in Europe harms the European social model, particularly with the pay cuts and measures to make the labor market more flexible.
Investments.
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