Christian Chapuis, Vice president of CESI, welcomes the higher political attention of the heads of state and governments towards growth and employment, especially of the young

At the EU summit (31th January 2012) the politicians adopted - in addition the fiscal pact- a corresponding statement on „growth-friendly consolidation and job-friendly growth“. This against the background of the euro crisis and the growing unease that austerity measures alone can’t be a solution to the problem and might instead lead to recession and loss of employments.

Last week, IMF chief Lagarde warned about undifferentiated austerity measures in the euro zone and invited those countries which are rather better off, to use their margin when it comes to boosting growth and domestic demand. The EU leaders too have finally recognised that the new fiscal treaty and financial stability alone are no guarantee for competitiveness and sustainable growth.

"Even if it is necessary", says Chapuis, "to maintain Europe’s competitiveness and to overcome the historical financial crisis, this shouldn’t be done at the expense of humanistic values with which we built Europe beyond pure economic and financial interests. We have to unite people around our European social model which we can be proud of. The economic and financial system has to be at the service of the individual instead of abstract structures".

In this regard, Chapuis criticises the wording of the summit statement which encourages to reform the labour markets and to address the cost of labour in relation to productivity. “In other words, that means to decrease wages and reduce dismissal protection rights.” What is more important is not to send much more wrong signals at the European level, he said. "On a day when Belgium suffers from a general strike and when employees complain about the foreseen austerity measures, it is an awkward sign to call for the cut of workers’ rights".

According to Chapuis, attention has also to be paid that public services were not cut back and working conditions weakened: “A solid, well skilled and efficient public service is the spine of a state and is needed to carry out the so often mentioned austerity and fiscal measures”.