Ségol (Etuc): Austerity is a total failure, we risk social destabilisation

“The measures adopted by the European Union to face the crisis, like the Fiscal Compact, are useless. We can’t only count on austerity without pushing for growth or fighting the devastating tax evasion. In this way we risk to create an unsustainable situation”. Bernadette Ségol, General Secretary of the European Trade Union Confederation (Etuc), is worried. She thinks that to face a difficult situation as the one we are living in we need immediate and brave action: “The Ecb must be allowed to finance member states directly and the debt must be mutualized”.

Her analysis on how the EU is working is quite ruthless: “From a social point of view it’s clear that citizens are understanding that the hard austerity measures are not working. We can see that in Greece, Spain, Ireland and now also in Portugal. The austerity measures are a total failure. We risk economic destabilisation leading to social destabilisation, increasing poverty and illegality, with strong reactions from the people”.

The main target of your criticism is the Fiscal compact, why?

“Simply because it’s useless. Writing a golden rule in your constitution is not the solution to balance the budget. Furthermore the rules for economic governance are still in the Six Pack. This treaty, imposing forced debt cuts and threatening heavy fines, reduces the possibility of each country to decide its national budget. This is a risk for democracy itself”

But without controlling the budget the risk of a bankruptcy is higher

“We do understand that the situation needs corrections and we say that a healthy budget policy is important. But States needs more time, more flexibility”.

You speak of a Social Compact as opposed to the Fiscal Compact. Which are your main proposals?

“Austerity has consequences only on wages and social services, we need to re-launch growth and create jobs. We want to reform business taxation, more taxes for the riche. We need to fight tax evasion and we need a financial transaction tax. We can’t forget that banks have great responsibilities for the economic crisis”

So you agree with Hollande

“Concerning the idea of taxing higher wages it’s exactly what we mean”

To fight tax evasion we need time and the situation is dramatic

“For the immediate period we think that the European Central Bank must be the main actor giving direct loans to governments”

But this is not a prerogative of the ECB and surely Germany would oppose this idea

“We need to find immediate solutions to save the Euro zone, otherwise the market will rule for us. We need drastic and fast measures. Only the ECB can stop the speculation. We could also think of giving a banking license to the European Stability Mechanism. We need additional resources and to a better use of structural funds. And the debt must be mutualized”.

Trade unions seem unable to influence European politics. Maybe they lack of unity at an international level

“I don’t think so. For instance we adopted the Social Compact by unanimity. We made common proposals and organized European-wide demonstrations. To be sure, to change an economic system we need more than a few demonstrations but we are united”.

Someone think you should organize an European strike

“The strike is a tool to use carefully, national rules are different from State to State. In northern countries trade unions are obliged to guarantee social peace. In Germany workers can strike only for concrete demands, not for political reasons. There are juridical obstacles that make this idea impracticable”.

So it’s an unrealistic idea

“At the moment. But maybe we could imagine a common strike in the Southern European countries, the ones in the most difficult situation”.