MEDPOL: SGI Europe calls for supportive measures to shelter the EU economy from the effects of the war in Ukraine

On Monday 23 May 2022, Valeria Ronzitti, SGI Europe General Secretary, addressed the Macro-Economic Dialogue at Political Level (MEDPOL). Bringing together, amongst others, Christine Lagarde, ECB President, Paschal Donohoe, Eurogroup President, Valdis Dombrovskis, European Commission Executive Vice-President, and Emmanuel Moulin, DG of the Treasury (on behalf of the French Presidency of the Council of the EU), and social partners, the meeting focused on the consequences of the war on the EU labour market.

Speaking on behalf of SGI employers, Valeria Ronzitti, SGI Europe General Secretary, said:

"The social and economic impacts of the war in Ukraine on the EU economy are profound. It is also a major cause of uncertainty: whilst supporting economic sanctions, SGI Europe also calls for preventive measures to limit the impacts on our economies. In this context, fully implementing the REPowerEU plan is necessary to mobilise the investments needed to accelerate the race out of fossil fuel and gain independence from Russian energy sources."

"The prolongation of the general escape clause of the stability and growth pact is another welcome step to protect the most vulnerable businesses and citizens. Nonetheless, we also urgently need to prepare the ground for what comes after the escape clause is deactivated and prevent social imbalances that can have negative economic spill-over effects on EU's competitiveness and political stability."

"A key question remains how best to protect the most vulnerable households particularly affected by the present surge of prices, whilst avoiding a wage-price spiral. During the pandemic, government-financed business support schemes and socialised income losses proved very potent and cost-effective to minimise economic and social disruption. Public support and immediate measures remain necessary today."

"SGI Europe welcomed the EU fast and determined answer for granting a clear legal status to Ukrainian refugees. We also welcome the proposals to mobilise financial resources with concrete tools. We must however recognise that the current crisis is primarily a humanitarian one: emergency measures including shelter, food, reuniting families and access to housing, must remain the priority, with labour market integration being a medium-term process."

(Copyright: European Union)