Lisbon Process: ETUC Demands an End to Excessive Competition

By ETUC

The European Union's Lisbon Summit of 2000, pledged to make Europe the "most dynamic and competitive knowledge-based economy in the world" by the year 2010.

Following the relaunch of the Lisbon process, the European Commission evaluated the National Reform Programmes submitted by Member States in the second half of 2005. Based on reactions from affiliated trade unions, the European Trade Union Confederation has made its own preliminary assessment. According to ETUC analysis, the National Reform Plans show some major weaknesses:

• Superficial consultation with trade unions;

• Watering down of the previous employment strategy. Precise targets on active but positive labour market policies are generally not taken up;

• There is a tendency to focus on even more labour market flexibility without paying much attention to the security of the workforce;

• Neglect of the social dimension. Only a few National Reform Programmes identify social cohesion objectives as a key concern;

• Macro-economic policies ignore the need to 'dynamise' the economy by stimulating a robust recovery;

• Targets for more innovation, research and development are well-intentioned, but it remains unclear how they will be financed.

These weaknesses have to do with the fact that the Commission sees its role as limited to encouraging ever more intense competitive pressures without providing Europe with a framework that prevents "cut-throat" competition. The ETUC regrets that the original European idea of cooperation between Member States is being replaced by competition in all sorts of areas (social dumping, tax dumping, competitive wage moderation, competitive flexibility).

For the Lisbon process to work, and to address the all too widespread feeling amongst workers that Europe has become a threat to their living standards and working conditions, the Commission needs to show leadership by devising European policies that put workers' rights, social policy and Social Europe centre stage. In the coming weeks, the ETUC will make further proposals on this.

(European Trade Union Congress Newsletter no. 4, January 2006)