Metalworkers respond to European Commission’s 2020 strategy

Civil society is divided over how to deal with the current economic crisis. However, there seems to be an acceptance of the need to learn from past mistakes. In responding to the European Commission’s Europe 2020 consultation document, the European Metalworkers’ Federation has called for the need to reassess the problems associated with the Lisbon Strategy, as well as outlining key proposals for the future.

Europe’s 2020 strategy

In November 2009, the European Commission launched its Europe 2020 Strategy (62Kb PDF), designed to make the European Union a smarter, greener social market. Faced by what the European Commission refers to as the worst economic crisis since the Great Depression in the 1920s, it declares that:

Europe has no alternative to changing course, to embracing new ideas while building on the continent’s numerous strengths. Failure to do so will see the Europe of 2020 lagging behind its competitors, and quality of life falling as economic growth slows and the workforce is depleted by an ageing population.

As part of a required period of consultation, the European Commission received a staggering 1,500 comments. Among these was a policy document compiled by the European Metalworkers’ Federation (EMF). According to EMF’s General Secretary, Peter Scherer, the EU has to be ambitious and rein in the financial markets. Mr Scherer argues:

What we need now is ‘better regulation’ of the financial markets, support to internal demand and the promotion of investments in sustainable production providing high-quality jobs… The EU 2020 agenda should promote a low-carbon economy as a driver for economic growth and jobs.

EMF proposals

In drawing up its suggestions for the 2020 proposals, EMF reflected on past mistakes by EU policy. In particular, it focused on the failures of the Lisbon Strategy launched in 2000. According to EMF, the Lisbon Strategy ‘failed to deliver, with many of its objectives missed and promises abandoned’ – in particular, it did not achieve full sustainable employment. EMF blames the main shortcomings of the 2000 strategy on the neo-liberal emphasis of EU economic policy.

In an attempt to reverse past mistakes, EMF has called on the EU to include the following factors, some of which are in the European Commission’s consultation document, in its 2020 strategy:

• the promotion of a low-carbon sustainable economy;

• the development of the knowledge society;

• the promotion of social cohesion;

• the continuing promotion of monetary and fiscal policies to support economic recovery;

• a commitment to combating a rise in inequality;

• the need to oppose the growth of precarious employment;

• a continued commitment to supporting industry and the information and communication technologies (ICT) sector;

• achieving wider support for the 2020 Strategy among key actors and citizens of the EU Member States.

EMF is particularly concerned that the current economic crisis could be abused to undermine employees’ terms and conditions of employment. For this reason, at the same time as the European Commission was launching its 2020 consultation document in November 2009, EMF launched a European-wide demand that employees retain secure jobs that are paid decently and underpinned by a well-resourced welfare state.

European Commission communication

In the preface to the Commission’s Communication on Europe 2020 (1.24Mb PDF), published on 3 March 2010, the President of the European Commission, José Manuel Barroso, noted:

The last two years have left millions unemployed. It has brought a burden of debt that will last for many years. It has brought new pressures on our social cohesion. It has also exposed some fundamental truths about the challenges that the European economy faces.

Such comments and commitments proposed by the Communication should encourage EMF and its fellow trade unions. The Communication, for example, demands that:

• 75% of the population aged 20–64 years should be employed;

• 3% of the EU’s gross domestic product (GDP) should be invested in research and development;

• the 20/20/20 climate/energy targets should be met – including an increase in the target of reducing emissions to 30% if the conditions are right;

• the proportion of early school leavers should be under 10%, and at least 40% of the younger generation should have a third-level degree;

• 20 million fewer people should be at risk of poverty.

Commentary

On the whole, EMF and the European Commission would appear to have reached similar conclusions on how to deal with the economic recession and the future development of the EU. Currently, it is up to the Council of Ministers to support the proposals placed on the table by the Commission. The financial support for Greece would suggest that Member States might accept a policy that allows for greater government involvement in economic affairs. However, the continued discrepancies between Member States over management bonuses and the regulations of banks suggest that the Europe 2020 Strategy is likely to involve difficult negotiations between the heads of state in the spring of 2010.

Michael Whittall, Technical University Munich