EU leaders used speeches at the summit in Dubai to renew their commitment to limit global warming to 1.5 degrees.
Council President Charles Michel said: “We must stick to the target of 1.5 degrees” and Commission President Ursula von der Leyen said: “The European Union will spare no effort to keep the Paris Agreement commitments and limit global temperature rise to 1.5°C above pre-industrial levels.”
However, under plans for new fiscal rules, just four member states would be able to make the investments needed to meet the EU’s climate commitment, according to research by the New Economics Foundation.
Belgium: 2,7 billion
Czechia: 1,3 billion
Estonia: 180 million
Spain: 6,6 billion
France: 13,2 billion
Italy: 9,5 billion
Latvia: 195 million
Hungary: 851 million
Poland: 3.2 billion
Slovenia: 294 million
Slovakia: 548 million
Bulgaria: 423 million
Romania: 1.4 billion
New fiscal rules are due to enter into force on January 1 but there has so far been no agreement on what they should be. Under the current proposal, member states with a deficit above 3% of GDP will have to reduce their budget deficit by a minimum of 0.5% of GDP every year.
Under these rules, only Ireland, Sweden, Latvia, and Denmark - countries representing 10% of the EU’s GDP - would have the fiscal capacity to meet the 1.5 degrees climate target. It would also mean fewer jobs, lower wages and stretched public services.
Fifteen thousand workers from across Europe on Tuesday marched to the European institutions in Brussels to send a clear message to leaders that there must be no return to austerity. Trade unions are calling for changes to the fiscal rules which put the wellbeing of people and the planet above arbitrary limits, including through a ‘golden rule’ for public investment which at least excludes investment in the green and digital transitions from spending limits.
ETUC General Secretary Esther Lynch said:
“A return to austerity would mean most countries would not be able to make the investments needed to meet the promises made by EU leaders at COP28.
“A return to austerity would also kill jobs, lower wages, mean even less funding for already over-stretched public services and all but guarantee another devastating recession.
“All of that would undermine support among society for urgently needed climate action and undermine support for climate action at political level by handing a gift to the far-right ahead of the European elections.
“A just transition needs investment to deliver a European green industrial plan with quality jobs, otherwise there is every danger that workers and whole communities will be left behind.”
“Austerity has been tried and it failed. It is time to learn the lessons of the past and ensure the EU’s economic rules put the wellbeing of people and the planet before totally arbitrary limits.”
Notes:
The ETUC’s calculations were made using GDP and deficit figures from European Commission. Deficit is expected figure for 2023.
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