Daily Archives: October 1, 2013

The EU Social Dimension: The Charge Of The Light Brigade

Indeed, in response to the financial crisis hitting the Euro Area, Europe has developed a system of economic governance that can be compared to a bulldozer sweeping away social and workers’ rights. Underlying this social bulldozer is the idea that wages and working conditions need to be cut in the absence of the possibility to devalue national currencies. This in turn implies that all labour market institutions that protect wages and workers’ bargaining positions are now being seen as obstacles blocking the way of highly necessary competitive wage adjustment. Those who dare to question this policy of an internal wage devaluation are being told that the only way to save the single currency is to have ultra – flexible labour markets allowing rapid downwards wage adjustment.

via The EU Social Dimension: The Charge Of The Light Brigade.