Rethinking EU Economic Governance for the Future
The evolution of EU economic governance is explored, highlighting past architecture, upcoming changes, and the impact of COVID-19 responses. Insights into instruments, plans, and reforms shaping the EU's economic and social landscape are discussed.
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Presentation Transcript
ETUC for a new Economic and Social Governance of the EU 19 MAY 2021 TUSLO + ECONOMIC COMMITTEE MEETING
What remains from past architecture European Semester Broad economic guidelines CSRs Governance tools (in-depth analysis, multilateral surveillance, peer reviews) Imbalance procedures (macroeconomic and fiscal) corrective arm Reference values for debt and deficit Employment guidelines - Joint employment report
What will change Quantification of reference values for Debt, Deficit, Interest Rates and Inflation Government expenditure benchmarks and cost-of-ageing criteria MTOs (escape clause?) Proibition of fiscal transfers and manipulation of interest rates for sovereign finances Role of MFF for reforms
What the covid-19 response has introduced Escape clause and suspension of MTOs Employment and governemnt expenditure stabilisers (SURE, ESM credit line) NGEU and Facilities for investments (RRF) Technical Support Instrument for reforms + increased use of national plans European DEBT to finance MS and absorb shocks (SURE + ESM) Ignite Investments (Recovery Instrument) Empower reforms (Recovery instrument) New Own Resources Decision New EU Taxation only to pay back debt Social targets employment, education, poverty Enhanced social scoreboard
One-off instruments SURE RRF Recovery Instrument National Recovery and Resilience Plans
WHAT REMAINS Technical Service Instruments and national plans for reforms National plans for climate change, just transition plans, national reform programmes, operational programmes Enhanced social scoreboard Social targets ESM and its new credit lines
Producing effects in next years but not renewed RRF: disbursement of resources upon achievement of milestones and targets closse minitoring of NRRP implementation Reimbursement of resources used under the SURE Management of cashflows for issuing and reimbursement of EU debt Escape clause and new reference values
CHALLENGES Deterioriation of democratic institutions and of social dialogue High sovereign debt with asymmetric consequences for MS Inflation to be monitored Unity of the EU and International role of EURO Multilateralism and global coordination of macroeconomic policies Fragmentation of the investment policy Growth, productivity and stagnating wages Very slow recovery in some sectors Excessive fragmentation of the labour market Very high unemployment rate, especially among women and young workers High vulnearbility of low-skilled workers, migrants, people with disabilities, 55+ Uncertainity about impact of technological change on work Uncertainities connected to green transition Instability of social protection systems and their redesigning
WHAT WE WANT (fiscal policy) Escape clause remains active until the economic and employment outlook is restored End of rigid reference values replaced by objectives of public finance tailored on MS, especially for Deb, deficit and Interest rates Reforms of MTOs introducing non-GDP-related indicators: indicators of well-being, inclusive labour market and workers vulnerabilities Avoidance of excessive and prolonged deficit and surplus position of member states Permanent automatic stabilisers for employment, social protection and investment, financed (in part) with EU debt and mechanisms that discourage moral hazard. Financing of these intruments could work as for the RRF (grants + loans) Public investment golden rule and a EU policy for strategic investments based on SDGs End of macroeconomic conditionalities for access to EU resources, replaced by incentives and reinforced partnerships btw MS and EU Commission with the involvement of social partners. EU debt issuing and permanent EU Taxation and higher expenditure ceilings for the EU
High Sovereign Debt sustainability Possible proposals: Monetisation of public debt (monetisation of the golden rule) Perpetual Bonds and doubts on the proposals: Allowed by the Treaty? Inflation rate? ECB autonomy? Level of interest rate?
WHAT WE WANT (social governance) BINDING AND MORE AMBITIOUS SOCIAL TARGETS (INTEGRATING THOSE ALREADY APPROVED IN PORTO) USE OF NON-GDP RELATED INDICATORS (SEE EXERCISE OF EU SOCIAL PARTNERS) AS MTOs TO ACHIEVE FARINESS, SUSTAINABILITY AND RESILIENCE ENSURING MINIMUM LEVEL OF GOVERNMENT EXPENDITURE FOR SOCIAL PROTECTION BASED ON DIGNITY OF AGEING BASED ON EU OBJECTIVE AND NATIONAL PLANS IMPLEMENTING THE RECOMMENDATION ON ACCESS TO SOCIAL PROTECTION ESTABLISHING A CONCEPT OF SOCIAL RESILIENCE ASSOCIATED TO GOVERNMENT EXPENDITURE BENCHMARKS (SEE REPORT OF THE EU COMM) SUPPORTING THE IMPLEMENTAITON OF THE GREEN DEAL ENHANCED SOCIAL SCOREBOARD AND SOCIAL IMBALANCES PROCEDURE DRIVEN BY SDG8-BASED METRIC (SEE #EU_SDG8 I) REPLACEMENT OF MACROECONOMIC CONDITIONALITIES WITH PARTNERSHIP AGREEMENTS FOR SOCIAL PROGRESS BASED ON USE OF RRF AND STRUCTURAL FUNDS (COORDINATION BTW NATIONAL PLANS AND OPERATIONAL PROGRAMMES)
WHAT WE WANT (SOCIAL PARTNERS INVOLVEMENT) INVOLVEMENT OF SOCIAL PARTNERS CREATING A STABLE AND CLEAR FRAMEWORK FOR SOCIAL PARTNERS INVOLVEMENT IN THE ECONOMIC GOVERNANCE AN OVERARCHING AND BINDING PRINCIPLE OF INVOLVEMENT REFLECTED IN THE DIFFERENT PROCEDURES AND INSTRUMENTS (AT LEAST IN) INVOLVEMENT IN THE EU SEMESTER INVOLVEMENT IN THE RRF IMPLEMENTATION COORDINATED INVOLVEMENT OF NATIONAL SOCIAL PARTNERS FOR NATIONAL PLANS AND OPERATIONAL PROGRAMMES SOCIAL DIALOGUE TO REINFORCE DEMOCRATIC INSTITUTIONS TO CREATE OWNERSHIP AND EFFECTIVENESS FO REFORMS TO ATTAIN SOCIAL OBJECTIVES AND PROTECT AUTONOMY AND INDIPENDENCE COLLECTIVE BARGAINING TO ENSURE FAIRER DISTRIBUTION OF MARKET INCOME TO ANTICIPATE CHANGE AND INNOVATE IN LABOUR ORGANISATION AND PROTECTION TO IMPLEMENT REFORMS WHEN AGREED IN SOCIAL DIALOGUE STRUCTURES TO IMPROVE WELFARE AND WELL-BEING AT WORK
WHAT WE WANT (LABOUR RELATED TOPICS) EUROPEAN SEMESTER: ACTIVE LABOUR MARKET POLICIES AND JUST TRANSITION MEASURES UPWARD CONVERGENCE OF WAGES FIGHTING POVERTY ESPECIALLY AMONG ELDERLY MORE OPPORTUNITIES FOR WORKERS AND REMOVAL BARRIERS TO FREE MOVEMENT IN FAVOUR OF WORKERS PERMANENT FOCUS ON PARTICIPATION OF: WOMEN (IT HAS TO BECOME AN OBSESSION) YOUNG WORKERS MIGRANTS PEOPLE WITH DISABILITIES RRF A TRAINING AND EDUCATION OFFENSIVE ESPECIALLY FOR ADULTS AND PEOPLE AT WORK INNOVATION IN LABOUR MARKET INFRASTRUCTURES SOCIAL INVESTMENTS (CHILDCARE, LONG-TERM CARE, GEO-MOBILITY, PUBLIC SERVICES) IMPROVED MOBILITY AND RECOGNITION OF SKILLS, ENTITLEMENTS, PORTABILITY OF RIGHTS, ETC.
WHAT WE WANT (DEMOCRACY AND INSTITUTIONS) MORE CENTRALITY TO THE EUROPEAN COMMISSION TO EXERCISE EXECUTIVE POWERS ON THE BASIS OF PARTNERSHIP WITH MEMBER STATES (INSTEAD OF BEING THE WATCHDOG OF MS) TO REBALANCE THE EXCESSIVE EXECUTIVE POWER OF THE COUNCIL OF THE EU STRONGER ROLE OF THE EUROPEAN PARLIAMENT TO FIX MACRO POLICY OBJECTIVES, SUPERVISE IMPLEMENTATION AND MAKING THE EU COMMISSION ACCOUNTABLE IN ALL PROCESSES OF THE ECONOMIC GOVERNANCE REINFORCING THE ROLE OF SOCIAL DIALOGUE TO LEGITIMATE AND REINFORCE THE DEMOCRATIC QUALITY OF NATIONAL AND EUROPEAN INSTITUTIONS BINDING MEASURES TO IMPOSE THE RULE-OF-LAW INTHE EU AND DEFEND EU INTERESTS
La voix des travailleurs Thanks for your attention La voix des travailleurs aupr s des d cideurs europ ens aupr s des d cideurs europ ens ETUC Semester Team 15
