News

We usually want the new year to be a new beginning that brings some changes in our lives. So in the quest for hope, I used the season’s break to listen to some of the EU leaders addressing their constituents for the new year. Believe me or not, it has been quite a challenge to find some hope in their speeches. Like many of us I guess I was looking for 2013 to be different from 2012, for less recession, unemployment, social exclusion and poverty in Europe (read for example Angela’s Merkel’s speech, where she states that “the economic environment next year will not be easier, but more difficult”). Quite a joyful bump to start the year!

Hope came from the south west of Europe – where the President of Portugal Anibal Cavaco Silva announced on January 1^st to the Portuguese that the “Constitutional Court will be called on to pronounce on the 2013 State Budget’s conformity with the Constitution of the Republic”. He wants some parts to be repealed on the grounds that “everyone will be affected, but some more than others, which raises founded doubts concerning the justice of how sacrifices are shared”. He added that the “implementation of the budget will lead to a reduction in people’s income, through a major increase in taxes and through a reduction in social services”. The hope is that the Constitutional Court will rule the budget unconstitutional in the same way it ruled unconstitutional last July the government plan to cut the traditional extra month of salary each year.

What does the EU have to do with this? The Portuguese 2013 national budget has been “agreed” with the international lenders of Portugal, ie the European Commission, the European Central Bank and the International Monetary Fund (the so called Troika). For two years now, the three of them have been deciding on the strict conditions of lending parts of the 78 billion euros granted in May 2011. Going against the constitution of Portugal, is not a move that the Commission is ready to make and not surprisingly, the spokesperson for Commissioner Olli Rehn (in charge of monetary affairs and the Euro) had no specific comment on the decision from the president of Portugal.

What should we do in support of the people of Portugal and other nations submitted to the budget decisions of the Troika? In the same way that the Portuguese budget is sent to the constitutional court, the actions conducted by the Commission should be questioned before the European Court of Justice in Luxembourg.

On what grounds? The Article 9 of the Treaty of the functioning of the European Union states that “In defining and implementing its policies and activities, the Union shall take into account requirements linked to the promotion of a high level of employment, the guarantee of adequate social protection, the fight against social exclusion, and a high level of education, training and protection of human health”. Agreeing on the Portuguese budget clearly fits in “defining and implementing the EU policy and activities” of article 9.

In fact, when agreeing with the tough fiscal consolidation, the Commission should measure the impact of its decisions which for instance have led to increased unemployment to 16,3% in Portugal, which is not really in line with the promotion of high level of employment as outlined in article 9 of the treaty.

Political parties in Portugal are going to be more and more eager to use their constitution as a political weapon against decisions made by the international lenders.

We should use the article 9 against the austerity measures led by the EU as a political weapon to ensure a strong social pillar in the EU priorities.

Happy new year!

Pierre Baussand – Director