Is the Economic and Monetary union on the right road?

In the last years, many member states have implemented austerity measures which drastically cut expenditure in social and health services, social protection and education. This has contributed to the increase of poverty and social exclusion, inequalities and unemployment in the EU as a whole, as well as worsening the divide between the south/periphery and the north of the Euro area. This has weakened the social tissue of our societies as well as people’s support for the EU.

At the European Council meeting of June 27 and 28, EU Heads of State and government will discuss the Roadmap for achieving a genuine Economic and Monetary Union (EMU), presented to them by Council President Van Rompuy. In December last year, “the social dimension of the EMU” was identified as one of the four strands for deepening the EMU. We see this as the acknowledgment that the EMU is not sustainable or credible without a fully implemented and integrated social dimension.

As social NGOs, we consider that the social dimension of the EMU, if properly developed, could be a first step in ensuring the re-balancing and re-focusing of the European Union for the well-being of people and to ensure that inclusive, as well as sustainable and smart growth is achieved.

Therefore, we call on President Van Rompuy and the EU member states for an urgent re-balancing of financial and economic policies with social policies, both at EU and member state level, to ensure a European Union that is focused on the well-being of its people and rebuilds trust in its institutions and policies.
To this end, at least the following issues should be included in the Roadmap towards a Genuine EMU:

  •     Safeguarding of social budgets when developing policies to tackle macro-economic imbalances.
  •     Prevention and correction of social and employment imbalances by carrying out an ex-ante coordination of all economic, structural and social policy reforms.
  •     Inclusion of commitments to social priorities in the contracts for competitiveness and growth.
  •     Integration social priorities in financial and economic policies at European and national level.
  •     A more democratic and participatory process to decide upon economic and social priorities.

You can read our full letter to the Council here.