‘Ill advised cuts can risk a downward spiral,’ EU Commissioner warns

'The country in the triple dip should not lecture the EU about economic growth', says EU Commissioner for Employment, Social Affairs and Inclusion in reference to David Cameron's plan to repatriate power back from the EU.

Governments must avoid policies that axe spending in the name of competitiveness and short-term savings, “but in reality jeopardise future competitiveness and longer-term prosperity”  EU Commissioner for Employment, Social Affairs and Inclusion László Andor has said in a speech to the Institute for Public Policy Research (IPPR) today.

In his keynote speech at the IPPR’s Revitalizing Social Europe event, Mr Andor warned that “polices that axe spending in the name of competitiveness may jeopardise … future prosperity”.

“Ill advised cuts can aggravate [deficit reduction] and risk a downward spiral,” he said.

“For instance, putting public workers out of work may reduce public spending on wages, but it will increase public spending on welfare benefits as well as resulting in a loss of tax revenue.”

The Commissioner also said a rise in social welfare spending at start of crisis held up UK living standards compared to those of Ireland and Greece, and he added that social investment was crucial to ensuring that a stronger, more cohesive and more competitive EU emerged from present crisis.

“It means treading a fine line between reducing spending to improve the public finances and jeopardising the future.”

Mr Andor also defended the EU’s Working Time Directive, which has been subject to much criticism from the Right in Britain of late.

“[The Directive] is a much discussed piece of legislation which I inherited as part of my portfolio, along with the Posting of Workers Directive, that was also controversial in some quarters,” he told the audience.

“A few weeks ago, I saw a set of short BBC interviews of individuals who were responding to questions regarding the consequences if Britain were not a member state of the European Union.

“Among them was a doctor who was very concerned at the effect of long working hours on his capacity to perform his work properly. He was worried that he might make serious errors of judgment affecting his patients through being overworked and lacking sleep.

“Another interviewee was a haulage-company operator. He was worried about unfair competition from other hauliers from other Member States who did not have to comply with the same rules.

“We must work to ensure that employment and social cohesion are given substance in EU policy — on a par with financial consolidation and economic growth.

“The recovery must bring jobs and opportunities for people, not just profits for companies and banks.”

Mr Andor’s full speech can be read here.

23 Responses to “‘Ill advised cuts can risk a downward spiral,’ EU Commissioner warns”

  1. LB

    150 bn of Kensian stimulus each and every year, and where’s the growth?

    We’ve taken the Keynsian medicine its not working because its economic voodoo.

    You can’t fix a recession caused by borrow and spend with more borrow and spend.

  2. Mick

    Well the EU would talk crap wouldn’t it. It loves to spend and captains the sham of the single currency. Laszlo Laszlo can suck my balls.

    And another thing, he’s right about the benefits bill going up. But it’s been going up anyway, complete with costs in many other areas, even after Labour. And Labour’s gross splurging and failing to save for a rainy day made us defenceless in the face of the global recession.

  3. Newsbot9

    Ah yes, straight to the personal attacks against anyone who dares make you 1p poorer with that “workers rights” thing. And keep desperately blaming Labour for your being caught red handed breaking Britain’s economic legs.

  4. Newsbot9

    But you think you can spend it by stealing food. Thanks for that demonstration of black satanic magic,

    Keep claming that pork-barrel spending, and spending caused by abolishing cost-saving measures and on keeping people out of jobs (“workfare”) is “Kensian”. It’s about as good as your holocaust denial.

  5. LB

    Holocaust is real, caused by socialists is Germany.

    Same with the genocides in Cambodia.

    The mass killings in Russia, socialists.

    Spot the pattern.

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