Friday

29th Mar 2024

Europeans protest against wave of austerity

  • Christian union protests in Brussels on Tuesday (Photo: EUobserver)

Spanish public sector workers took to the streets on Tuesday (8 June) to protest against government announced pay cuts, while German trade unions called for mass demonstrations this coming weekend after Berlin unveiled its own four-year austerity package earlier this week.

The wave of government belt-tightening sweeping across Europe has already resulted in strikes in countries stretching from Ireland to Greece this year, with Brussels also seeing protests yesterday, although reports suggest turnout in Spain was below organisers' expectations.

Read and decide

Join EUobserver today

Get the EU news that really matters

Instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

Crowds gathered in Barcelona, Madrid, Valencia and elsewhere in the southern European state to show their discontent at the Socialist government's plans to shave €15 billion off the country's deficit over two years.

The measures include a five percent pay cut for public sector workers, the suspension of automatic inflation-adjustments for pensions, the scrapping of payouts to parents for the birth of children, and a reduction of €1.2 billion in regional funding.

Protestors accused the government of mismanaging the crisis, and said the planned measures would disproportionately affect public sector workers. "We are not responsible for this crisis," read one banner. "We're not the ones who'll pay for it."

Spanish unions said 75-80 percent of public sector workers had joined the day-long strike, although the labour ministry put the figure at 16 percent, with public transport largely unaffected. Roughly 2.5 million Spaniards work in the public sector.

More strike action may follow however, with Madrid set to announce unpopular labour market reforms on Wednesday that will make it easier for employers to hire and fire workers.

The government is under intense pressure from financial markets and Brussels to turn its economy around after a recent credit rating downgrade dramatically increased the country's borrowing costs.

Like Ireland, Spain's property market imploded when the global financial crisis struck, plunging the country into an almost two-year recession and placing a huge strain on government coffers. Unemployment is currently hovering around the 20 percent mark, the highest in the eurozone.

Germany

In Germany the first labour protests at the government's €80 billion austerity package were announced by the Verdi public sector workers' union, with mass rallies planned in Berlin and Stuttgart on Saturday.

Its leader Frank Bsirske said the brunt of savings would fall on public sector workers and the unemployed, while the wealthy would continue to live in a "tax oasis."

Other unions later joined the call to arms, while German industry and economists have largely welcome the proposals due to their focus on spending cuts rather than broad-brush tax rises.

Announced on Monday, Chancellor Angela Merkel's list of austerity measures is intended to show that Europe's largest economy will lead by example. The largest part of the cuts in the four-year programme will fall on welfare payments and benefits for the long-term unemployed.

A lower proportion will affect banks and other businesses, with the government intending to introduce a financial transactions tax and a new tax on flights leaving Germany.

Britain, the Republic of Ireland, Portugal, and Italy are amongst the countries to have unveiled austerity measures as governments feel the squeeze.

The announcement by the Romanian government that it plans a 25 percent cut in public sector salaries and 15 percent reduction in pensions has also seen people take to the streets in the east European country this week.

Ukraine slams grain trade restrictions at EU summit

Restrictions on Ukrainian agricultural exports to the EU could translate into military losses in their bid to stop Russia's war, Ukrainian president Volodymyr Zelensky warned EU leaders during their summit in Brussels on Thursday.

Difficult talks ahead on financing new EU defence spending

With the war in Ukraine showing no signs of ending any time soon, EU leaders will meet in Brussels on Thursday and Friday (21 and 22 March) to discuss how to boost the defence capabilities of Ukraine and of the bloc itself.

Opinion

Why UK-EU defence and security deal may be difficult

Rather than assuming a pro-European Labour government in London will automatically open doors in Brussels, the Labour party needs to consider what it may be able to offer to incentivise EU leaders to factor the UK into their defence thinking.

Latest News

  1. Kenyan traders react angrily to proposed EU clothes ban
  2. Lawyer suing Frontex takes aim at 'antagonistic' judges
  3. Orban's Fidesz faces low-polling jitters ahead of EU election
  4. German bank freezes account of Jewish peace group
  5. EU Modernisation Fund: an open door for fossil gas in Romania
  6. 'Swiftly dial back' interest rates, ECB told
  7. Moscow's terror attack, security and Gaza
  8. Why UK-EU defence and security deal may be difficult

Stakeholders' Highlights

  1. Nordic Council of MinistersJoin the Nordic Food Systems Takeover at COP28
  2. Nordic Council of MinistersHow women and men are affected differently by climate policy
  3. Nordic Council of MinistersArtist Jessie Kleemann at Nordic pavilion during UN climate summit COP28
  4. Nordic Council of MinistersCOP28: Gathering Nordic and global experts to put food and health on the agenda
  5. Friedrich Naumann FoundationPoems of Liberty – Call for Submission “Human Rights in Inhume War”: 250€ honorary fee for selected poems
  6. World BankWorld Bank report: How to create a future where the rewards of technology benefit all levels of society?

Stakeholders' Highlights

  1. Georgia Ministry of Foreign AffairsThis autumn Europalia arts festival is all about GEORGIA!
  2. UNOPSFostering health system resilience in fragile and conflict-affected countries
  3. European Citizen's InitiativeThe European Commission launches the ‘ImagineEU’ competition for secondary school students in the EU.
  4. Nordic Council of MinistersThe Nordic Region is stepping up its efforts to reduce food waste
  5. UNOPSUNOPS begins works under EU-funded project to repair schools in Ukraine
  6. Georgia Ministry of Foreign AffairsGeorgia effectively prevents sanctions evasion against Russia – confirm EU, UK, USA

Join EUobserver

EU news that matters

Join us