May 9 is Europe Day and this year PES (Party of European Socialist) Day of Action on Social Europe.

Swedish Socialist and Vice-President of the European Commission Margot Wallstrom writes about Europe Day in the Independent

Further information on the PES day of Action

PES President Poul Nyrup Rasmussen slammed the EU for abandoning its ‘Jobs Summit’ – due tomorrow and replaced by a low profile ‘troika’ with the social partners – despite this week’s forecast that unemployment will reach almost 27 million next year.

Post sent by Desmond O'Toole - Dublin

Two hundred anxious and angry people met in a hotel in Dublin last Saturday (21st February) at a seminar sponsored by the PES and the Irish Labour Party. They were Labour members and trade union activists from across Ireland who had come together to discuss the "State of the [Irish] Nation." In a few short months Irish people have seen the Celtic Tiger become the Celtic Mouse. A once vibrant and self-confident economy has been brought to its knees by reckless banking and political corruption. Ireland is now a place of fear - for jobs, for mortgages and for just meeting everyday needs.

The seminar was opened by Eamon Gilmore TD, the leader of Labour in Ireland, who condemned the incompetence of the conservative government that had presided over this catastrophe and also their slash-and-burn solutions to the crisis of driving down wages and cutting public services. Eamon demanded a better way with better thinking that put people first and depended on solidarity between all Irish people and with our partners in Europe. The seminar then heard from a selection of economists. Intelligent people, no doubt, steeped in the discipline of counting numbers and speculating about markets, but who, with their differing analyses, proved the maxim that you can lay all the economists in the world end-to-end and they still wouldn't reach a conclusion! They all did agree that the Irish economy is facing a meltdown of unprecedented proportions. The solutions of the majority of these economists, however, perpetuated the same failed perspective that had brought the Irish economy to its knees .... cutbacks in public services, cuts in wages and rapid deflation. Sanity, and indeed hope, was restored by two politicians who have shown strong and persuasive leadership during this crisis: Joan Burton TD, Deputy Leader of Irish Labour, and Poul Nyrup Rasmussen. Joan made the important point that we could not afford to follow the path of deflation as they have done in Japan. That led to a "lost decade" for the Japanese. We could not afford a "lost decade" here in Ireland. Much better to follow the example of Scandinavian policy-makers and use the state to drive reform, to provide solidarity with those displaced by recession and to positively manage our way out of this crisis. Then Poul spoke. He had flown in from Denmark that morning and was returning immediately after the seminar. A tiring journey, but one much appreciated by his audience. Poul took the bull by the horns. Like Joan Burton, Poul is credible, personal, direct and honest with his audience. This is Poul's way with people and Dublin warmed to him. We have to do eight things Poul said, counting them off on his fingers: 1. Clean up the Irish banks. 2. Show solidarity between EU member states by issuing eurobonds that will bring down the cost of Irish government borrowing. 3. Use EU funds to keep people in work by paying for the training of those placed on short-time working or laid off. 4. Create a regulatory regime that is transparent, international and includes all financial actors. 5. Bring stability to people's pension funds and use these assets to finance long-term, sustainable economic investment. 6. Defend the rights of working people across Europe and demand that these rights are respected. 7. Address the scandal of tax-havens and liberate the funds they contain to finance growth in the world economy. 8. Create and deliver a recovery plan for jobs that leverages pan-European solidarity. This was the alternative narrative that we were waiting to hear. It was convincing, direct and carried a message of hope. Astonishingly for a Dublin audience we all rose to our feet and delivered an enthusiastic standing ovation for Poul. This is why the PES is different. This is why we are worthy of the people's trust. The hope we offer is not blind optimism. It's not a case of whistling as we pass the graveyard. The hope we offer is rooted in an intelligent, reasoned understanding of the nature of the crisis we are facing. It is rooted in the belief that solidarity between people and a commitment to use the enabling power of the State and its resources can help us manage our way out of this mess. We are not some flotsam tossed about on the stormy waves of international markets. We can, if we choose, become masters of our own futures. Poul and Joan exemplify this alternative narrative. In Dublin, last weekend, we were able to replace anxiety with confidence, fear with hope and submission to anonymous market forces with belief in ourselves and in each other.

Julian Scola

Last night PES President Poul Nyrup Rasmussen spoke at the Café Crossfire debate at the Bibliotèque Solvay in Brussels. The event was organised by the Friends of Europe and the Foundation for European Progressive Studies, and asked the question “Beating the recession – does the Left have the answers?

”The crux of the evening’s debate was an article published in the Economist in December which suggested that socialism in Europe risked being the major loser from globalisation and, in particular, the financial crisis. The event brought Poul Nyrup Rasmussen together the author of the article, David Rennie. Also present were Anna Diamantopoulou, former EU Commissioner and Member of the Hellenic Parliament, and Luis Rego, European Correspondent for the Portuguese newspaper Diário Económico.

After a brief introduction by moderators Giles Merritt, Secretary General of Friends of Europe, and Ernst Stetter, FEPS Secretary General, the opening remarks were made by Poul Nyrup Rasmussen, who talked about the PES manifesto and the Left’s attitude to the crisis, placing the blame for the current economic situation firmly with neo-liberal support for unfettered markets. Our vision of a stakeholder economy, he argued, puts the Left at the forefront of the current debate about the recovery.

The floor was then given to David Rennie, who defended his criticism of the PES manifesto. He claimed the document is symptomatic of calls for the state to reign in markets, and explained that he believed that this is unsustainable in the context of globalisation, going on to criticise the Left for the differences of opinion that it encapsulates. However, he did reserve praise for Rasmussen’s policy of flexicurity. “More for the ‘flex-’ or the –‘curity’?”, one wondered…

Anna Diamantopolou then stepped forward in defence of European social democracy, noting that rather than being less effective in the context of greater competition, the values of the Left allow it to lead the way in developing a fairer form of globalization and better global governance. As such, she maintained, socialist concerns such as workers rights and financial regulation have to be incorporated into the remit of the WTO. Luis Rego agreed, adding that the crisis has proven that self-regulation does not work and praising Rasmussen for pushing for better regulation of private equity. The Left, he argued, needs more than ever to distinguish itself from the Right.

The floor was opened up and questions were asked about the politicisation of the European Parliament and the risk of extremism.

Poul Nyrup Rasmussen started by responding to David Rennie, noting that the Right has a tendency to appropriate the language of the Left, for example, in the case of Sarkozy, talking about flexicurity whilst only legislating for flexibility. He agreed that the Parliament is becoming more ‘political’, adding that this is a good thing. Rennie then spoke, repeating his opinion that the shift in balance from labour to capital accompanying globalisation makes the European Social Model unsustainable.

Rasmussen went on to question what we mean when we talk about a ‘successful economy’ – Germany for example exports more than any other country in the world, Scandinavia is another good case. He defined the difference between a Social Market Economy and a Market Economy; the former is based on a strong public sector, a welfare state and knowledge-based employment, the latter has nettle of no place for the public sector. Diamantopoulou drew the debate to an end by explaining that the Left has a tradition firmly built on values and that it must remain faithful to these whilst adapting to new circumstances.

The panelists succeeded in adding a new perspectives to the political implications of the crisis, and Poul Nyrup Rasmussen soundly rebutted the criticisms made by the Economist, delivering a convincing defense of the values of the Left and the Social Market Economy.

The event was transmitted on Twitter, allowing activists and members of the public from across Europe to follow the arguments and opinions expressed. The PES is planning on reporting from events across the continent in this way over the course of the campaign.

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