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The European Union raised the ax against wages and union rights

(EIR) - While the European Union institutions are jointly responsible for the increased prices of raw materials with their policy of bank bailouts, they call on governments to freeze wages. This insane policy was reiterated by the European Central Bank President Trichet said that, the ECB's monthly press conference that "we can not do anything" against speculation on raw materials, insisting that governments must avoid the effects of "bounce" as the wage increase it.

Asked EIR on the increase in food prices as the cause of the riots in North Africa, Trichet acknowledged that the ECB would have the power to act against speculation, for example by reducing the flow of liquidity, but has refused to consider any intervention. He complained instead of "competitive agreement" proposed by France and Germany which would reduce the power of governance of the EU Commission, asking the European Parliament to change it.

In sharp contrast to Trichet, Economy Minister Tremonti, during a meeting of the Aspen Institute in Istanbul on March 4, reiterated his view that the initiation of the various revolts in North Africa is just increases commodity prices. He recalled that he raised the issue at the G8 in 2008, and "the scientific response, especially the International Monetary Fund, the speculation was that not exist. "According to Tremonti, the wave of unrest could spread to the east and also affect developed countries, where already there are fears the oil shock.

" In Italy we have an expression dear-life, "said Tremonti." In Africa, in all poor regions, it is not a question of cost of living but of life, and speculation is destroying peoples lives, in increments of 30 or 40% in a few months that have a cause of speculation and a deadly effect " . The "reaction to an outrageous injustice" will arrive in Asia, he warned, "and this can lead to instability and economic problems, while we have to work for stability. It can lead to problems of democracy in Europe, I said that there the risk of the extreme right. "

Apparently the EU institutions are working to make this happen. At the request of Trichet, the European Commission will present at the March 11 summit of eurozone heads of government a plan drawn up by the assistants of the EU Commissioner José Manuel Barroso and European Council President Herman van Rompuy. More than half of their document aims to cut wages, to dismantle trade union rights and pensions cut.

Under the aegis of "promoting competitiveness, "the paper asks to end de facto trade union rights by requiring" review of trade union agreements for increased decentralization in the negotiation process and to improve the indexation mechanism "while ensuring" limits public sector wage.

Always chanting increased "productivity" the document calls "unjustified restrictions removed the professions as quotas or numerus clausus. Under the aegis of "to promote employment" calls "reforms that promote labor market flexibility," or eliminate security work. And under the "sustainability of pensions and Social Security" calls for raising the retirement age and "reduction of early retirement and use targeted incentives to hire older workers and promote learning in old age."