‘Fiscal Pact’ is regime change to a dictatorship of the markets, says Europe’s radical left leader
Pierre Laurent, President of Party of the European Left
(This statement was issued ahead of the informal summit on 30 January 2011)
The EU heads of state will meet today to refine their project for « an international agreement for Economic Union ». Far from allowing us to come out of the crisis, this agreement means submitting even more strongly to the financial logic that led to the chaos. « The « golden rule » [balanced budget rule] that engraves in stone the criteria of the Growth and Stability Pact, forsees automatic sanctions and obligations on member states to negotiate austerity plans with the EU.
EU heads of state remain wedded to policies that kill growth and cast people into misery and disarray. This Treaty is the assured arrival of the « Troika », the pillage of « common goods » and the destruction of social rights.
Popular sovereignty undermined
The transfer of budgetary powers from national parliaments to the Commission undermines popular sovereignty and it is being done without debate or consultation with the citizens. This is an unprecedented attack on the European people’s basic political rights, a regime change to a dictatorship of the markets.
In order to have a clear idea of the Europe that is in the making, look at what is happening in Greece, which Angela Merkel wants to place under official guardianship; or France where Nicolas Sarkozy has just announced his third austerity plan increasing indirect taxes and breaking collective agreements on working time in order to finance a new give- away for employers.
This takes us down the path of the self-destruction of Europe. The EU cannot be built against the people and with a permament lack of trust in member states. European institutions will never gain the legitimacy they claim by taking authoritarian decisions that are harmful to the people. The idea of union will never survive if one state seeks assume guardianship over another. There will be no union by dividing peoples.
In the name of the Party of the European Left, I reject the international agreement and we will lead a campaign in each country of the EU to stop it being ratified.
Translation by Revolting Europe
Interview (In French) with Patrick Le Hyaric, Confederal Group of the European United Left – Nordic Green Left, and MEP for France’s Left Front
Europe’s ‘fiscal pact’ – fact box
On January 30, 25 countries endorsed Europe’s new ‘fiscal pact’.
They agreed to enshrine ‘balanced budget’ legislation into their national law, with annual structural deficits capped at 0.5% of GDP.
Transgressors face penalties of 0.1% of GDP, with fines being added to Europe’s bailout fund, the European Stability Mechanism (ESM).
The UK and the Czech Republic declined to sign.
The new Treaty on Stability, Coordination and Governance (SCG) will come into force once it has been passed by the parliaments of at least 12 countries that use the euro.
The aim is to incorporate it into EU law within five years of its entry into force.
European council statement on fiscal compact