The Economic Crisis continues …

1. The Economic Crisis continues… VETSeminar 8– 10March 2012 , Lisbon Martin Rømer, European Director , ETUCE Education International – European Region, ETUCE

2. From bank crisis to sovereign debt crisis • 2007-8: International Bank Crisis , starting in US with the collapse of Lehman's Bank followed by an international financial crisis including a downturn of the housing market. • 2008-9 : Stimulus plans and bail-outs in US and Europe of Banks , Insurance companies , Mortgage Lenders and other big businesses. • 2010 -> Several European countries running into debt problems. Difficulties in refinancing sovereign debt.

5. EU/IMF/ECB Actions • General bail-out plan rejected 1 March 2009 • European Financial Stability Mechanism (EFSM) were created in 2010, proposed new powers 2011. • Case by case : • Greece 110 Billion € in May 2010 • Ireland 85 Billion € in November 2010 • Portugal 78 Billion € in May 2011 • Greece # 2 : 131 Billion € decided July 2011. Pending. • ECB buying Italian and Spanish bonds from June 2011

6. 2010 : Sovereign Debt Crisis

8. The case Greece

9. Outlook:Europe into recession

10. Consequences for education • The Sovereign Debt Crisis potentially more dangerous to education: • Cut backs in Public Spending • Increased use of PPP and privatisation • Tax revenue is falling leading to more cuts • Banking crisis can return

11. Consequences 2 • General cut in budget • Specific cut in areas : • Freezing or cut in salary • Forced unpaid free-days • Cut in extras • Freezing or cuts in pensions / social benefits • Cut in CPD • Reducing books / material /excursions etc. • Reducing services / healthcare /transport etc.

12. Consequences 3 • Lay offs by: • Reducing the number of schools • Increasing the workload for teachers • More students in classes • Reducing students number of lessons • Change in management structure • Outsourcing • Privatisation

13. Examples of key elements in a new policy: • Collectively reducing the debt burden, by lowering interest rates on sovereign debt (e.g. Eurobonds), • A financial transaction tax, • The end of tax havens and tax evasion, • Progressive ,fair and effective tax systems, • Harmonisation of the consolidated cost base for corporation tax, • Minimum tax rate for businesses, • Effective fight of corruption and ensure democratic participation • The allocation of unused structural funds to support sustainable investment. • Reform corporate governance and accountability • More investment in education, research ,innovation and renewable energy

14. Education components in a new policy • The involvement of the social partners in creating effective education initiatives ensuring: • Quality basic and initial education for all at all levels • Support and compensation instead of unemployment • Programmes to tackle inequality • Programmes to tackle social tensions and xenophobia • Cross sector LLL programmes and recognition and validation of aptitudes and skills irrespective of how they are acquired.

15. ETUCE Action and Campaign Framework • There is an apparent need to show that we are not only against the spreading austerity measures but that there are other ways in combating the crisis before Europe sinks into a long and deep recession together with a social crisis:  • -Based on earlier experience there is a need for a more comprehensive action framework and at the same time respecting the complete sovereignty of each Member Organisation. • -There is a need to advocate and show more broadly the negative sides of the economic crisis and to generate change there is a need to explain and promote our views to the public of who created the crisis and how credible alternatives can work. • -There is a need for showing a more collective front against the austerity measures and internally show solidarity with members cross border.

16. The Framework EI / ETUCE crisis activities: ETUCE Action and Campaign Framework: • -Member organisation is asked to decide how they can contribute to the general framework and to appoint a contact person. • -ETUCE will carry out a mini-survey amongst MO’s on the current impact of the crisis on education and working conditions. Should be ready for the ETUCE Committee meeting in March. • -Organised solidarity to specific countries by email. • -Join the decentralised ETUC Action day on the 29 February • -Meeting with MEPs during the ETUCE Committee meeting 27-28 March • -In the period 15 March to 20 April featuring specific countries and making solidarity pressure on Governments with targeted emails from all organisations and press releases. • -Decentralised actions decided by MOs to coincide with the EI Global Action Week 23-28 April 2012

17. Tools in the Framework • 1. Website: Communication platform: Plans, events , blogs, Press releases, posters, slogans, documents, pictures, videos. Including a national possibility for upload directly. • 2.Resource centre with policies, background and links • 3. ETUCE and National Press releases and press meetings in Brussels and European capitals. • 4. Bureau Members participation in national events. • 5. ETUCE statements to support the actions/campaign. • 6. Feed into the EI Global Crisis strategy.

18. ETUCE Special web site

19. Campaign pictures /videos

20. Better ways Out of the crisis www.csee-etuce.org