News
BackDuring the last months, the planned Free Trade Agreement of the EU with the United States has definitely been causing a stir. Labour and non-governmental organisations have drawn attention to the lack of transparency concerning the negotiations itself and a number of planned regulations, which might have a negative impact on employees and society as a whole. In a new press release, however, the Commission is now daring to make a prognosis to the effect that free trade agreements might have positive effects on the labour market. However, whether these predictions will actually take place remains to be seen.
The Commission is aware of the fact that the pressure by labour representations and civil society in respect of free trade agreements has been increased over the past years and is therefore making an effort to discover positive effects of the various agreements for employees. Hence, in a press release from 3 December 2013, the Commission is pointing out that a successful conclusion of the talks on all free trade agreements of the EU with third countries would increase economic growth by 2.2 percent or EUR 275 billion, which would mean the creation of 2.2 million new jobs. However, unfortunately the press release does not provide any clue as to how the Commission arrived at this conclusion. In any case, new jobs would definitely be positive: after all, based on the financial and economic crisis, which by now might be called chronic, the European Union has 26.7 million unemployed - 10 million more than at the start of 2008 prior to the outbreak of the crisis. 2.2 million new jobs would also help a large part of the currently 5.6 million young people under 25 who are without a job.
However, what the press release called “Memo” fails to tell us over which period these 2.2 million jobs are supposed to be generated. It also does not divulge any information, in which sectors these new employment opportunities will be created. The quality of these jobs is also not clear. And there is the question, whether they will be well or poorly paid.
All in all, the promised number of 2.2 million new jobs raises more questions than answers. Hence, the intrinsic value of this Commission prognosis is unfortunately very doubtful.
According to Commission information, there are currently free trade agreements in place with about 50 countries and international communities. Talks about new agreements with the United States, Canada, Japan, China, India and with other Asian and African Partners are still ongoing.
Unfortunately, the Commission paper completely fails to explain why the about 50 existing trade agreements have not been able to improve the in any case disastrous situation on the labour market. However, one can only hope that the European Commission, within the scope of the current negotiations on free trade agreements will take a much more closer look at the impact of these on the EU labour market.
However, what the press release called “Memo” fails to tell us over which period these 2.2 million jobs are supposed to be generated. It also does not divulge any information, in which sectors these new employment opportunities will be created. The quality of these jobs is also not clear. And there is the question, whether they will be well or poorly paid.
All in all, the promised number of 2.2 million new jobs raises more questions than answers. Hence, the intrinsic value of this Commission prognosis is unfortunately very doubtful.
According to Commission information, there are currently free trade agreements in place with about 50 countries and international communities. Talks about new agreements with the United States, Canada, Japan, China, India and with other Asian and African Partners are still ongoing.
Unfortunately, the Commission paper completely fails to explain why the about 50 existing trade agreements have not been able to improve the in any case disastrous situation on the labour market. However, one can only hope that the European Commission, within the scope of the current negotiations on free trade agreements will take a much more closer look at the impact of these on the EU labour market.