In numerous countries such as Ireland, Greece, Portugal, Hungary, and others, the European Commission (EC) - in cooperation with the International Monetary Fund (IMF) and European Central Bank (ECB) - has imposed a dramatic policy mix that consists of blind austerity, privatisation and wage cuts. Following the adoption of the notorious ‘six-pack’ in December 2011, it is clear that such policies will become a general rule all over Europe. The ‘six-pack’ sets up a structure in which the EC is granted a role as budgetary supervisor and punisher. The commission has the opportunity to almost automatically punish European Union (EU) members who do not follow recommendations to correct ‘excessive budgetary deficits’.

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Written by Lars Vande Keybus, economic advisor at the Belgian trade union ABVV-FGTB. His specialties include macro-economic policy, European Economic Governance, Trade & Globalisation and Decent Work campaigning.

Published by Global Labour Column and edited by CSID at Wits University.