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Euro TU Matters September 2011

EU Trade Matters Masthead

Con/Dems seize euro crisis to bash Unions and boost Banks

 Speaking in the UK Parliament on Tuesday (6 September, 2011)  Prime Minister David Cameron indicated that the need for fundamental Treaty changes considered necessary to end the euro-zone financial crisis, could be seen as an opportunity to gain opt-outs on directives affecting labour rights and financial services. The UK has already opted out of many European initiatives, including the Social Chapter of the Maastricht Treaty, which guarantees social rights to workers and citizens of the European Union (EU), and the Schengen Treaty allowing greater freedom of movement. David Cameron has already secured an opt-out on closer economic integration, claiming a victory at his first EU summit in Brussels in June last year.  EU leaders at that summit agreed to greater surveillance and coordination of national budgets. Cameron said he had secured "a clear agreement" that London's economic sovereignty would not be affected by any changes. Giving evidence to the Westminster liaison committee Cameron was asked how the UK would respond if eurozone countries entered stronger fiscal union through fundamental Treaty change. Cameron intimated that labour rules such as the Working Time Directive and Financial Services Regulation would be clear targets for UK opt-outs. He told the committee: "There are some areas in which it [the EU] has been extremely frustrating, such as with the Working Time Directive and areas that have come in under health and safety. I have always felt that those would be better dealt with at the national level."

Temporary Workers' Directive unpopular in UK governing coalition

Downing Street denied reports that UK government officials were preparing to dilute or even fail to implement the Temporary Workers' Directive, due to come into effect on 1 October.  Sources within Downing Street were reported to have taken advice on how they might modify the introduction of the legislation, which offers temporary workers the same rights as their permanent counterparts after a 12-week working period. Downing Street denied that there were any plans to modify the legislation or fail to implement it, but suggestions that the UK was seeking to modify the new law indicate that this is one of the pieces of legislation that would come under review in any future Treaty change. MEPs from both the governing coalition parties in the UK, the Liberal Democrats and Conservatives, stated that giving rights to temporary workers in the new law was regrettable.  Martin Callanan, the chairman of the UK Conservatives in the European Parliament, said: "I think that the Temporary Workers Directive is a crazy piece of legislation that will destroy jobs in the UK, especially because the UK is one of the key destinations of temporary workers in the EU, and therefore we should do all we can to modify the legislation

Merkel calls for EU Treaty change after positive court change

The European Trade Union Confederation (ETUC) and its Polish affiliates Solidarnosc and OPZZ are organising a Euro-demonstration on 17 September in Wroclaw (Poland), where the Economy and Finance Ministers (ECOFIN) will be meeting. The European Trade Unions will point out to Europe’s political leaders, who are meeting at the same town, the need for a change of course in the direction of greater European solidarity. Without such solidarity, employment and social peace will be jeopardised.  ETUC General Secretary, Bernadette Ségol, told the organising committee:  ‘In the face of the turmoil disrupting the European economy and amplifying unemployment and the insecurity of work for millions of Europeans, European solidarity is necessary and urgent.  For the ETUC the pooling of risk (the creation of Eurobonds) would offer new prospects. We must avoid a breakup of the euro zone, which would spark a serious social crisis. Economic governance must have the goal of improving employment and living conditions.  A retreat to nationalism would be disastrous’.

DAVID MARTIN MEP (Scotland)

Midlothian Innovation Centre, Pentlandfield, Roslin, Midlothian EH25 9RE, Tel 0131 440 9040.

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