News

The divide between economic priorities and social policies finally seems to be getting some attention by our political leaders. Studies on the negative impact of poverty, unemployment and inequalities are being discussed by our ministers of economy and finance. But this situation requires more than discussion since the gap remains wide open as can be illustrated with the situation in Greece.

Last Wednesday, economists were quite positive when Greece returned for the first time in four years to the financial markets to borrow 3 billion euros over the next five years.

However, on the social side, the perception is quite different. On the same day trade unions and civil society organisations supported a general strike to demonstrate their total opposition to the austerity measures implemented in the last four years. Transport workers, hospital staff, court employees and teachers joined the strike. The strike left public services and schools closed nationwide. Tourists were blocked on islands because ferries did not operate.

Current discussions at the EU level are on the right “policy mix” between economic and social policies. However there is an imbalance of power between the two policy areas.  What I too often hear is what kind of social policies can we get when national social budgets have been reduced by the austerity measures, when unemployment and poverty have never been so high? We hear that any job is better than no job, that people that have no job cannot receive a minimum income higher that a minimum wage. At the same time wages have been lowered to increase their “competitiveness”. There is a race to the bottom that not only creates precariousness on the labour market and the existence of working poor, but also infringes on the dignity of people living in the EU.  

What I heard from our members in the last two years is essential. Social justice should underpin all decisions when balancing economic and social policies. Social and economic rights should hold the balance scale between economic priorities and social policies. This would avoid the infringement of the dignity of our population. This is the only way to find the right balance in the current debate of the right policy mix.

Let’s engage!

Pierre Baussand – Director