October 28 2022

A group of over 180 trade unions, civil society organisations, think tanks and academics from across Europe have signed an open letter to EU leaders calling for them to address the underlying structural problems of our economic system ahead of the European Commission’s publication of its orientation paper on the reform of the EU economic governance framework.

On 9 November 2022, the European Commission presented an orientation paper that sets the direction for the EU’s economic policy, including a reform of the EU fiscal rules. Ahead of the publication, trade unions, civil society, think tanks, youth, and academics have come together to call for a new set of principles which aim at an economy that works for us all, scales up green public investment and promotes human and wellbeing.

The public letter aims to push the Commission to propose legislation that allows a democratic debate and decision-making on economic policy and establish key public asks for long-term economic policy, particularly fiscal policy in the public forum. 

The Economic Governance and its respective fiscal rules on member states’ public debt and deficits no longer deliver for the European people and nature with a growing green investment gap, persistent inequalities and ongoing environmental degradation. There’s a need to reform the fiscal policy so that it’s consistent with agreed EU social, climate and environmental goals, allowing the next generation to enjoy better public services, lower inequalities, and healthy ecosystems. 

The converging crises require a complete rethink of the economy, and hence the EU fiscal framework/EU economic governance, shifting priorities from wealth to well-being, from consumption to quality of life, and from growth to equality. Rather than optimising outputs, we need an economy that delivers on social, environmental and economic goals, allowing everyone to enjoy a warm home, good health, strong relationships, and a habitable planet.

The full letter is available on the right side of this page.

The letter was initiated by the FiscalMatters coalition, a group of civil society organisations, think tanks and trade union leaders that tries to reform Europe’s fiscal rules by organising and elevating the voice of civil society through common actions like letters, events and media interventions.