The EU Economic Governance Package


The EU Economic Governance and its possible implications for Malta’s economy, trade unions and workers’ rights were the main topic dealt with by Labour MEP Prof Edward Scicluna on Friday, May 27, 2011, during a Business Breakfast organized in collaboration with the S&D Group in the European Parliament.

The event, earmarked for all trade unions in Malta was well attended with the GWU, UHM, CMTU, FORUM and unions affiliated to them represented by their administrations.

The Economic Governance Package – commonly referred to as the ‘Six Pack’ – consists of six pieces of legislation aimed to improve the implementation of a strengthened EU Stability and Growth Pact. Having passed through the Economic and Monetary Affairs Committee of the EP, the Parliament and the Council of Ministers are now in trilogue negotiations to try and reach a common agreement on the six dossiers.

The package is controversial, it lacks the support of the second largest political Group in the EP (the Socialists and Democrats Group), in view of the greater powers being given to the Commission, the lack of democratic accountability, its over-emphasis on sanctions as the only way forward, and the absence of a convincing economic strategy to help the Eurozone countries resolve the current euro crises and create more jobs.

The S&D group will not support a system that just involves heavy fines on countries which breach the deficit and debt criteria, or any attempts to reduce workers’ rights, as well as imposing cuts to wages and pensions.

At committee stage, an ideological battle opened up between the right-wing EPP group and the S&D and Green groups, with the Liberal group keen to find a compromise to bring all groups on board.

Prof Scicluna is part of the S&D group’s four MEP negotiation team on the package. He is shadow Rapporteur on two of the six dossiers.

Following a refusal by the right-wing EPP and ECR groups to negotiate a compromise that would allow countries to adopt targeted investment strategies in transport, energy efficiency, education and research and innovation, to return to economic growth and reduce their debt levels, the S&D group joined with the Greens and left-wing GUE group in rejecting two of the six reports and abstained on another one. All six were however approved.

In one report by Socialist MEP Elisa Ferreira, the S & D secured important safeguards for social and employment rights, in particular the right of workers and unions to negotiate and enforce collective bargaining agreements and for countries to take account of income inequality in their economies. Meanwhile, when the European Commission assesses a country’s performance, it would be required to take account of unemployment levels and education investment.

In another report Prof Scicluna and Liberal group co-ordinator Sylvie Goulard brokered an agreement to set up a system of common ‘eurobonds’ whereby governments would be able to pool up to 60% of their national debt to avoid market speculation against individual countries.

Although there remain the possibility for fining countries that breach the Stability and Growth Pact (SGP), the Socialists were able to insert numerous exemptions to reduce the more punitive aspects of the mechanism including a cap on fines and provisions to make financial sanctions a method of last resort.

Il-Pakkett ta’ Governanza Ekonomika

L-implikazzjonijiet li jista’ jkollu l-Pakkett ta’ Governanza Ekonomika propost mill-Kummissjoni Ewropea kienu spjegati lill-mexxejja tat-trade unions Maltin kollha nhar il-Gimgha, 27 ta’ Mejju, 2011, mill-Ewroparlamentari Laburista l-Professur Edward Scicluna.

Dan sar waqt Business Breakfast f’lukanda l-Belt li ghalih kienu mistednin il-GWU, l-UHM, is-CMTU u l-FORUM flimkien mal-unions affiljati maghhom. Kollha kienu rapprezentati mill-amministrazzjoni centrali taghhom.

Il-Pakkett ta’ Governanza Ekonomika jikkonsisti minn sitt legislazzjonijiet mahsubin biex itejbu l-implimentazzjoni tal-Patt tal-UE ghal Stabbilità u Tkabbir li issa se jkun imsahhah. Wara li l-Pakkett ghadda mill-Kumitat ghall-Affarijiet Ekonomici u Monetarji tal-Parlament Ewropew, il-Parlament u l-Kunsill tal-Ministri jinsabu f’negozjati trilogi bil-ghan li jippruvaw jaslu ghal ftehim fuq is-sitt dossiers.

Il-Grupp tas-Socjalisti u d-Demokratici (S&D) mhux se jappoggjaw sistema li sempliciment tinvolvi pieni kbar fuq pajjizi li jiksru l-kriterji tad-deficit u d-djun, jew xi attentati biex jitnaqqsu d-drittijiet tal-haddiema kif ukoll jimponu tnaqqis fil-pagi u l-pensjonijiet.

Fl-istadju ta’ kumitat zviluppat battalja ideologika bejn il-grupp lemini tal-EPP u l-gruppi tal-S&D u l-Hodor, bil-Liberali anzjuzi li jsibu kompromess biex jgibu lilll-gruppi kollha flimkien.

Prof Edward Scicluna jifforma parti mill-grupp ta’ erba’ Membri Parlamentari Ewropew mill-S&D li qeghdin jinnegozjaw fuq dan il-Pakkett. Huwa Shadow Rapporteur fuq tnejn mis-stt dossiers.

Wara r-rifjut mill-gruppi tal-lemin tal-EPP u l-ECR ghal negozjar lejn kompromess li jkun jippermetti lill-pajjizi biex jadottaw strategiji specifici ta’ investiment fl-oqsma tat-trasport, efficjenza fl-energija, edukazzjoni u ricerka u innovazzjoni, biex jirritornaw ghal tkabbir ekonomiku u tnaqqis fil-livelli tad-djun taghhom, l-Grupp tal-S&D inghaqad mal-Grupp tal-Hodor u mal-Grupp xellugi GUE fir-rifjut ta’ tnejn mis-sitt rapporti filwaqt li astjena fuq rapport iehor. Madankollu is-sitt rapporti gew approvati.

F’wiehed mir-rapporti, dak imhejji mill-MEP Socjalista Elisa Ferreira, l-S&D assigura salvagwardi importanti ghad-drittijiet socjali u tax-xoghol, partikolarment id-dritt tal-haddiema u l-unions biex jinnegozjaw u jinfurzaw ftehim ta’ negozjar kollettiv; u fuq bazi ta’ pajjizi li tittiehed inkonsiderazzjoni l-inugwaljanza fid-dhul u l-ekonomiji taghhom. Sadattant, meta l-Kummissjoni Ewropea tkun qed tistma dak li jkun wettaq pajjiz tkun mehtiega tiehu inkonsiderazzjoni l-livelli tal-qghad u tal-investiment edukattiv tal-pajjiz partikolari.

F’rapport iehor Prof Scicluna u l-kordinatrici tal-grupp tal-Liberali, Sylvie Goulard, wasslu ghal ftehim biex titwaqqaf sistema komuni ta’ ‘eurobonds’ fejn il-gvernijiet ikunu jistghu jpoggu f’qoffa wahda sa 60% tad-dejn nazzjonali taghhom biex jevitaw l-ispekulazzjoni tas-suq kontra pajjizi individwali.

Minkejja li baqghet l-possibiltà li jkunu mmultati pajjizi li jiksru l-Patt ta’ Stabbilità u Tkabbir, is-Socjalisti rnexxielhom idahlu hafna ezenzjonijiet biex inaqsu l-aspetti ta’ pieni akbar tal-mekkanizmu, inkluz limiti fuq il-pieni, u provedimenti biex sanzjonijiet finanzjarji jkunu l-ahhar metodu punittiv li jirrikorru ghalih.

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