Coronavirus: European unions and employers urge suspension of Stability and Growth Pact targets

The European employer and trade union organisations have urged EU governments to make full use of the temporary built-in flexibility in the Stability and Growth Pact targets, including its temporary suspension by using the general escape clause.

The European social partners urge the European Council of Heads of State and Government to approve all the measures proposed by the European Commission so far, without any delay, nor with changes that could weaken their impact.

The European social partners said they supported the set of measures announced by the European Commission and the European Central Bank over the last days.

They also called on member states to avoid single market distortions, including bans and export restrictions and especially for export of medical equipment and medicines, and stopping closing borders for goods; and to safeguard all freight transport modes is a priority within the EU, also having an essential role to coordinate and inform regarding actions taken in Member States.

The ETUC encouraged member states’ spending and investment particularly to reinforce staff, equipment and means for national health services, social protection systems and other services of general interest.

They also called for the mobilisation of unused structural funds and any other available EU funding to support Member States in ensuring financial and income support for workers affected by unemployment or suspension from work, including non-standard workers and selfemployed.

ETUC said that SMEs affected by lockdown and emergency measures will need credit access and financial support with a coordinated intervention from the EU budget, the ECB, the EIB, and national promotional banks.

It also called for the activation of a solidarity fund for natural disasters and any other available funding at EU level.

“All efforts need to be undertaken to help workers, enterprises, economic activities and public services to survive the crisis, so they will be able to come back to their activities when the crisis ends, to keep workers in their jobs meanwhile, to protect from unemployment and loss of income, and to alleviate financial losses.

“The Commission and Member States must ensure that financial support reaches enterprises, especially all types of SMEs, and all workers, including the self-employed and those with precarious jobs who are most vulnerable,” ETUC General Secretary Luca Visentini said.

“The Commission’s plan to apply flexibility regarding the application of its fiscal and State Aid rules is essential to supporting public services, which are stretched to the limit, as well as companies and workers hit by the crisis. EU funding invested in protecting workers and enterprises from the worst effects of the crisis should be additional to member states’ spending.

“Europe must show responsibility, solidarity and efficiency in facing this emergency, by protecting all its affected citizens, workers and enterprises.”