Cuts Will Undermine Growth Says Europe's Largest Union Federation as European Council Meets

BRUSSELS, June 16, 2010 - The European Federation of Public Service Unions (EPSU) says
the austerity packages imposed by many countries around Europe will have a
serious impact on the prospects for economic recovery. EPSU sends this
message to the European Council meeting on 17 June.

Carola Fischbach-Pyttel, EPSU General Secretary says: "As
governments swing the austerity axe they risk chopping off any green shoots
of recovery, leaving workers, pensioners and communities to face the prospect
of an even longer recession. We demand plans focused on investment in public
services and infrastructure, on green growth and job creation and on
addressing poverty and inequality."

EPSU represents 250 European unions which organize nurses,
tax-collectors, labour inspectors, port control authorities, custom officers,
teachers, civil servants, fire-fighters, police, elderly and childcare
workers, cleaners, librarians, utility workers, prison guards, ambulance
drivers and many other public service workers.

Most workers are on low- or middle incomes and now see their
purchasing power reduced by pay freezes and pay cuts (see overview).

Governments are cutting or freezing public service jobs. EPSU
estimates that employment will be reduced by some 200,000 jobs in 2-3 years
time. First estimates show cuts in public spending to be more than 200
billion euros - more than the combined annual public expenditure of Hungary,
Romania and Portugal.

EPSU underlines the cuts will:

    - Create more stress for the remaining overworked staff in
      hospitals, schools, prisons elderly homes and regulatory agencies.

    - Reduce the quality of public services - less care for the
      sick; less support for the poor and vulnerable.

    - Undermine enforcement of laws and regulations, so letting
      off the hook polluting corporations and employers that violate health and
      safety and other labour laws or evade taxes.

    - Have a knock-on effect on non-EU countries that see their
      export markets affected, and on developing countries as aid budgets are
      reduced.

EPSU, with over 8 million members, is building for the
European Trade Union Confederation (ETUC) day of action on 29 September. Tens
of thousands of people will march in Brussels to show their anger over the
coordinated European cuts strategy that is hitting working men and women but
leaving the wealthy, speculators and large corporations untouched.

EPSU is the European Federation of Public Service Unions. It is the
largest federation of the ETUC and comprises 8 million public service workers
from over 250 trade unions; EPSU organises workers in the energy, water and
waste sectors, health and social services and local and national
administration, in all European countries including in the EU's Eastern
Neighborhood. EPSU is the recognized regional organization of Public Services
International (PSI)

Detailed briefings at: www.epsu.org/a/6599

    Media contact
    Jan Willem Goudriaan
    +32-2-2501080
    epsu@epsu.org

Media contact: Jan Willem Goudriaan, +32-2-2501080, epsu at epsu.org