Dear Commissioner Dombrovskis,
I am contacting you to urge the European Commission and Member States to suspend the current economic governance rules, to provide scope to deal with the crisis that the EU is facing.
The recent announcement by President von der Leyen that she “will propose to activate the escape clause for defence investments” is a further confirmation that the rules are inadequate for the EU to invest in its future, in particular in this volatile environment.
To ensure real security in Europe, the economic governance rules must be fully suspended – similarly to what happened during the Covid-19 crisis. The internal stability and cohesion of the EU are at risk.
Working people are now facing the prospect of mass layoffs affecting millions of jobs because of the lack of a well-founded industrial policy and investments in quality jobs and public services, as well as the risk of increasing tariffs, exacerbating the cost-of-living crisis and depressing demand.
It is necessary for the EU to put in place a package of measures to mitigate the impact on working people, the potential impact on jobs and incomes that would result from the imposition of higher tariffs by the US on the EU and by the counter measures.
This calls for a SURE 2.0 mechanism and an EU investment capacity to protect jobs and industrial capacity. People need protection, and quality jobs are essential for ensuring internal security, supporting economic stability and social cohesion.
The current economic governance rules do not adequately address Europe’s needs, and must be suspended and revised as a matter of urgency.
Finally, we recall that trade unions play a crucial role in ensuring fair incomes and embedding democratic practices across society. We ask for trade unions to be involved in the development of the package of measures to support working people in this crisis.
We urge you to consider these points and take the necessary steps to suspend the economic governance rules. The ETUC is ready to engage in constructive dialogue to achieve these goals and ensure a prosperous future for all. Thank you for your attention to this important matter.
Yours sincerely,
Esther Lynch, General Secretary of the European Trade Union Confederation