TUAC NEWS

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TUAC on OECD Ministerial Conclusions - some positive elements but a stampede to exit strategies would be a historic mistake

28/05/2010

In its statement to the Ministerial Council Meeting (MCM), TUAC called on Ministers to act urgently to re-regulate the financial economy and to continue with stimulus measures until a stronger recovery is in place. This message was reinforced in the address to the MCM of Richard Trumka, President of TUAC.  TUAC considers that a premature withdrawal of stimulus would be a historic mistake tipping the OECD countries back into recession with disastrous impacts on employment.

Overall, the Conclusions to the meeting are more balanced than many statements made at meetings of European Finance Ministers. Indeed there are several positive elements. In particular, TUAC welcomes the commitment made to continue “efforts to assist the recovery with appropriate measures until sustainable growth in private demand has taken root” (§4), together with the recognition that fiscal consolidation should not “jeopardise growth” (§7.2).  TUAC also strong welcomes the commitment to creating “more and better jobs”, reducing inequality (§8.3) and supporting skills development in particular with regard to the shift to the low carbon economy and the “expansion of the health and social sectors” (§8.4).

Nevertheless, the risk of premature exit by many European countries with a further deflationary twist has risen with the European Sovereign Debt crisis.

 

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