“If we follow the Conservative’s EU recovery plan the price will be 4.5 million jobs lost by 2013”, said PES President Poul Nyrup Rasmussen on the eve of the European Council Meeting in Brussels. The PES Leaders, including  Greek Prime Minister George Papandreou, will meet tomorrow, just prior to the Council meeting to agree an alternative, progressive route for European recovery. The jobs lost figure is based on estimates from the 16 March EU Finance Ministers draconian plan for a reduction in public stimulus measures.

The PES leaders are meeting to agree the following points:
1. Realising a new anti-speculative loan mechanism for Member States in crisis

2. A moratorium of two years to be added to the individual member states emergency period for bringing down their budget deficits to less than 3 percent

3. Introduction of a Financial Transaction Tax (which in Europe alone could bring in nearly €200bn a year), to give more strongly needed revenues for public budget consolidation
4. Creation of a new Eurobond initiative, co-financing mid-term investment strategies in Member States, combined with a coordinated investment approach focusing on jobs, technology, education and green infrastructure.

“As we have already seen from the EU Finance Ministers’ meeting last week, even though Europe is still mired in crisis, conservatives are intent on formulating a suffocating withdrawal of state support for Europe’s people”. He added that; “this type of exit strategy will march Europe’s jobs out the door”.

Conservatives have called for the ‘phasing out’ of crisis-related support measures, with a benchmark of mid 2010. They also call for the phasing out of measures that increase the ‘generosity’ and coverage of unemployment benefits.

Mr. Rasmussen stated; “this shows how out of touch Conservatives are. Among Europe’s 23 million unemployed, the families suffering from increasing hardship and young people simply trying to get a first job, there is little feeling that their situation is ‘generous’.”

For further information please contact Brian Synnott on +32 474 98 96 75 (brian.synnott(at)pes.org)