Budget reform cannot be backdoor to social cuts

European trade unions are calling on the European Commission to give guarantees that social spending will be safeguarded in any reform of the EU budget.

The executive of the European Trade Union Confederation (ETUC) agreed a resolution setting out its red lines over the reform of the Multiannual Financial Framework.

“Social, territorial and economic cohesion funding and policies, as well as ESF+ must be safeguarded, and spending for social progress objectives must be increased,” it says. 

Delors

The vote comes after reports the Commission is planning to cut more than 500 EU funding programmes down to just three funds to be administered by central governments.

That could affect the EU’s cohesion policy, which aims to reduce economic disparities between regions and was initiated by Jacques Delors as part of his push for a more social Europe.

Before any reorganisation is proposed, the Commission will need to consult the ETUC, as the EU treaties oblige them to consult the European social partners on all proposals regarding employment and social policy.

ETUC Confederal Secretary Tea Jarc said:

“It is clear from our discussions that trade unionists across Europe have grave concerns about the negative impact the proposed reform of the EU budget would have on working people."

“The cohesion funds created by Jacques Delors delivers quality jobs and raising living standards in the parts of Europe which most need support. Politically, it is the antidote to the idea that the EU is centralised and remote.

“Trade unions will not stand for any reform of the EU budget to become a backdoor to social cuts or allow funds to be taken away from regions which already lack the resources and control over need-based interventions."

ETUC Confederal Secretary Ludovic Voet added:

"The Commission must give guarantees that social funds won't be cut through austerity-reforms under the new EU Semester economic governance."

"It is crucial that a transparent and democratic decision-making process be adopted for these decisions that have far-reaching consequences. Rushing through a restructuring of its funds just as the EU is gearing up to a political discussion on the establishment of a permanent EU investment tool risks undermining the effort to meet social and climate investments gaps."

Notes

ETUC resolution on priorities on the Post-2027 EU budget and the next EU multiannual financial framework