ILO chief warns of strong reactions to extreme policies in Eurozone

May 31, 2012 9:32 am 

GENEVA, May 30 — Extreme policies to tackle the crisis in the Eurozone could produce extreme reactions, said Juan Somavia, the director-general of the International Labour Organization (ILO) on Wednesday.

Somavia's warning came at the 101st International Labour Conference that opened here on Wednesday.

"Giving confidence exclusively to financial operators while losing the trust of people not only deepens the vicious downward economic spiral but also opens the way to extreme solutions,"said Somavia.

The ILO chief said that the European countries that have been subject to the strictest conditions as part of crisis rescue packages are back-sliding on the very ILO core values on which the region used to be a leader.

"The austerity-only course to fiscal consolidation is leading to economic stagnation, job loss, reduced protection, and huge human costs, undermining those social values which Europe pioneered, "Somavia said.

He cautioned against the weakening of the tradition of dialogue between governments, employers and workers in Europe.

Somavia said,"it is precisely with social dialogue that we can get out of the crisis, through productive investments in sustainable enterprises that can increase jobs, consumer demand and fiscal revenues at the same time."

The ILO chief called for "socially responsible fiscal consolidation."

He said that the ILO's 2009 Global Jobs Pact is a basis for such a balanced response. The measures include retaining persons in employment, sustaining enterprises, and accelerating employment creation and jobs recovery, all combined with social protection, especially for the most vulnerable. (PNA/Xinhua) dct/RSV/mmg

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