April 2023: the European Commission presents its plan to revise the EU’s Economic Governance Framework; social democrats, liberals, and conservatives join forces to approve the legislative package. The Left is the only political group to denounce this shameful attempt to revive Europe’s failed and discredited austerity doctrine.
Last December, this review was adopted by Parliament’s economic affairs committee, with a plan to bypass an all-MEP vote in plenary before entering into negotiations on the new rules with other EU institutions. Left MEPs fought to hold a vote to respect democracy and to voice overwhelming popular opposition to Austerity 2.0.
This review introduces, in its preventive aspect, new rules concerning the pace and manner in which governments must reduce their deficit and public debt and enables systematic sanctions on states that fail to meet these criteria. Despite European Commission promises to encourage the public services and sovereignty of member states, the new rules go in the opposite direction. The review will hinder the investments needed for the ecological transition since the objective of balancing budgets is prioritised over everything else.
After the COVID-19 crisis and a period of high inflation, we are living in a social emergency, and the approval of the Economic Governance review will make life worse for millions of people. Across Europe, poverty is rising, and access to care, housing, and school is increasingly difficult. This coalition and the adoption of the revision are sacrificing living standards to support the profits of a few people; it is purely and simply an economic scandal.
❗️In Parliament’s Economics Committee, a coalition of socialists, liberals, and conservatives has approved Austerity 2.0.
Working communities are in need of public investments in education, healthcare, in salaries that keep up and in a sustainable future.#StopAusterity pic.twitter.com/GyQ32SA8Sa
— The Left in the European Parliament (@Left_EU) December 12, 2023
While austerity takes center stage on the EU agenda, the World Economic Forum met last week in Davos, Switzerland. This is an opportunity for the richest 1% and world leaders to discuss the future direction of our societies and the urgent issues of the moment. Just like most decision making meetings in Brussels, one distinguished guest is missing: the people.
New economic governance rules were an opportunity for a new, fairer economic model that puts workers first, not superprofits. Once again, the social democrats, liberals, and conservatives have failed in their duties to working people. For The Left, power to the people is not just a slogan; it is a commitment.