IV Online magazine - Archive

The Euro Pact is the way chosen by the EU heads of government to implement their Economic Governance Plan. This means, among other things, cutting wages and social spending, eroding social protection models and introducing greater job insecurity. Constitutionally enshrining the straitjacket of the stability pact, the Pact imposes control on deficits (3% of GDP) and debt (60%) and, with this, the pro-cyclical nature of economic policy. It will apply greater fiscal regression and a shrinking of the public sector. Thus, member countries are reducing the margins of popular sovereignty and of economic, social and labour policies which will have to adapt to institutionalized criteria that, in the absence of significant political and social upheavals, will be practically irreversible.