| A soft ‘Leviathan’: the adoption of the six-pack on economic governance |
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Following the presentation of six legislative proposals on economic governance by the European Commission (EC) in September 2010, the European Parliament (EP) adopted the so called Six-Pack package on 28 September. The Six-Pack will subject the member states’ fiscal and macroeconomic policies to greater co-ordination and surveillance. Left of centre groups however abstained or voted against parts of the package that is perceived as focusing too much on budgetary corrections to the detriment of job creation and economic growth. The new powers will be used to identify economic imbalances and budgetary instability within the EU and to enable the reporting of more accurate MS budgetary statistics. While so far, MS could “ignore [EC] warnings to correct their budgetary policies”, any deficit or unsound policy measure will be addressed with stricter fines, reads the EP resolution. In the negotiation process on the package, the EP managed to ensure that the EC not only investigates the countries with deficit when looking at sources of macroeconomic instability, but that also those with current account surpluses would be taken into account. “The agreed rules will therefore require the Commission to consider the possibility that countries like Germany or the Netherlands are a cause of instability, and reforms could be asked of them too”, the resolution states. Members of the Socialists and Democrats party (S&D) decided to abstain or vote against parts of the package, with concerns on a rise that additional budgetary limitations could lead to a further slowdown in economic growth and job creation within the EU. “The package is also socially imbalanced”, S&D members believe. “Workers, retired people and unemployed will pay the costs of such policies whereas the people who have caused the crisis will again escape”, they warned. ATTAC has criticised the EU of introducing neoliberal measures that are to aggravate social tensions within the EU. “We believe the policies of austerity that these proposals will strengthen and enforce, are a recipe for disaster. They will force crisis-ridden member states to stick to cuts in social expenditure, and to attack labour and social rights for many years to come”, reads a statement. The organisation further points to the EC’s lack of accountability and responsibility to respond to public pressure, as it is not elected by EU citizens. “This approach is not only undemocratic and against European law, it’s a clear sign that in the coming years, member states, as a consequence of the acts of the present governments, will be pushed to implement neoliberal reforms of cutting public expenditure and social benefits, downsizing the public sector, squeezing wages and further liberalizations the Commission supports so vehemently”, ATTAC concludes. Sources:  |
