Monday 6 April 2009

EU to Force Through Public Sector Cuts

No2EU Press Release

EU tells UK to cut public spending, No2EU campaigners warn

EU finance ministers have given Britain six months to come up with plans to cut public spending, the EU-critical electoral alliance No2EU – Yes to Democracy warned today.

No2EU - Yes to Democracy West Midlands co-ordinator Cllr Dave Nellist gave the warning after EU finance ministers meeting Prague last week warned the UK to cut its budget deficit to the EU Stability and Growth Pact limit of three per cent within four years.

“The UK government recorded a government deficit of £78 billion last year, equivalent to 5.4 per cent of Gross Domestic Product, and the Stability and Growth Pact limits budget deficits to three per cent of GDP which currently adds up to £43 billion.

“Reducing the current government budget deficit by £35 billion in a year implies potentially appalling cuts in essential public services.

"Local authorities are already conducting a "doomsday study" of the potential impact on local council budgets of up to 30 per cent funding cuts and it paints an horrific picture for local services,” the former Labour MP warned.

NO2EU - Yes to Democracy convener Bob Crow said that the EU’s strict criteria had enforced the privatisation of capital projects to keep them off the government's books, by means of private finance initiatives (PFI) and the disastrous PPP on London Underground, which had increased the costs of essential public services and subsidised corporate profits.

"It is clear that EU leaders want ordinary working people to pay for the recession, by cutting essential public services, instead of the banks and finance companies that contributed so much to the economic crisis in the first place.

"That's why a vote for No2EU – Yes to Democracy against the EU’s privatisation agenda is so essential on June 4,” the transport union leader said.

For more information contact Cllr Dave Nellist on 07970 294 237 or Brian Denny on 07903376303


Adam Marks said...

The government will put this off until after the general election, but a collosal battle is on the way in the public sector. If public union branches link up with the private ones now they stand a much better chance.

Phil said...

I'm inclined to agree. And then they can blame it on the nasty Tories!

Adam Marks said...

In don't think this is quite an EU issue though. The G20 was a short-term success for Gordon Brown, at least in ruling class circles.

The debate is between leaders who want stimulus now, austerity later, or austerity up front. In sure Sarkozy would love to charge through austerity measures (he wouldn't dare at the moment). The attack will come at some point, regardless of whether the EU says "charge".