The Economic Crisis continues…

VET Seminar 8 – 10 March 2012 , Lisbon

Martin Rømer, European Director , ETUCE

Education International – European Region, ETUCE

From bank crisis to sovereign debt crisis2007-8: International Bank Crisis , starting in US with the

collapse of Lehman's Bank followed by an international financial crisis including a downturn of the housing market.

2008-9 : Stimulus plans and bail-outs in US and Europe of Banks , Insurance companies , Mortgage Lenders and other big businesses.

2010 -> Several European countries running into debt problems. Difficulties in refinancing sovereign debt.

EU/IMF/ECB ActionsGeneral bail-out plan rejected 1 March 2009European Financial Stability Mechanism (EFSM) were

created in 2010, proposed new powers 2011.Case by case :Greece 110 Billion € in May 2010Ireland 85 Billion € in November 2010Portugal 78 Billion € in May 2011Greece # 2 : 131 Billion € decided July 2011. Pending.ECB buying Italian and Spanish bonds from June 2011

2010 : Sovereign Debt Crisis

The case Greece

Outlook:Europe into recession

Consequences for educationThe Sovereign Debt Crisis potentially more

dangerous to education:

Cut backs in Public SpendingIncreased use of PPP and privatisation Tax revenue is falling leading to more cutsBanking crisis can return

Consequences 2

General cut in budgetSpecific cut in areas :- Freezing or cut in salary- Forced unpaid free-days- Cut in extras- Freezing or cuts in pensions / social benefits- Cut in CPD- Reducing books / material /excursions etc.- Reducing services / healthcare /transport etc.

Consequences 3

Lay offs by:- Reducing the number of schools- Increasing the workload for teachers- More students in classes - Reducing students number of lessons- Change in management structure - Outsourcing- Privatisation

Examples of key elements in a new policy:Collectively reducing the debt burden, by lowering interest

rates on sovereign debt (e.g. Eurobonds), A financial transaction tax,The end of tax havens and tax evasion, Progressive ,fair and effective tax systems,Harmonisation of the consolidated cost base for corporation

tax,Minimum tax rate for businesses,Effective fight of corruption and ensure democratic

participationThe allocation of unused structural funds to support

sustainable investment.Reform corporate governance and accountabilityMore investment in education, research ,innovation and

renewable energy

Education components in a new policy

The involvement of the social partners in creating effective education initiatives ensuring:

- Quality basic and initial education for all at all levels

- Support and compensation instead of unemployment

- Programmes to tackle inequality - Programmes to tackle social tensions and

xenophobia- Cross sector LLL programmes and

recognition and validation of aptitudes and skills irrespective of how they are acquired.

ETUCE Action and Campaign Framework There is an apparent need to show that we are not only

against the spreading austerity measures but that there are other ways in combating the crisis before Europe sinks into a long and deep recession together with a social crisis: 

-Based on earlier experience there is a need for a more comprehensive action framework and at the same time respecting the complete sovereignty of each Member Organisation.

-There is a need to advocate and show more broadly the negative sides of the economic crisis and to generate change there is a need to explain and promote our views to the public of who created the crisis and how credible alternatives can work.

-There is a need for showing a more collective front against the austerity measures and internally show solidarity with members cross border.

The Framework EI / ETUCE crisis activities: ETUCE Action and Campaign Framework:

-Member organisation is asked to decide how they can contribute to the general framework and to appoint a contact person.

-ETUCE will carry out a mini-survey amongst MO’s on the current impact of the crisis on education and working conditions. Should be ready for the ETUCE Committee meeting in March.

-Organised solidarity to specific countries by email.

-Join the decentralised ETUC Action day on the 29 February

-Meeting with MEPs during the ETUCE Committee meeting 27-28 March

-In the period 15 March to 20 April featuring specific countries and making solidarity pressure on Governments with targeted emails from all organisations and press releases.

-Decentralised actions decided by MOs to coincide with the EI Global Action Week 23-28 April 2012

Tools in the Framework

1. Website: Communication platform: Plans, events , blogs, Press releases, posters, slogans, documents, pictures, videos. Including a national possibility for upload directly.

2.Resource centre with policies, background and links

3. ETUCE and National Press releases and press meetings in Brussels and European capitals.

4. Bureau Members participation in national events.

5. ETUCE statements to support the actions/campaign.

6. Feed into the EI Global Crisis strategy.

ETUCE Special web site

Campaign pictures /videos

BETTER WAYS OUT OF THE CRISIS

WWW.CSEE-ETUCE.ORG