EU Min Wage Demands 'Contrary To Treaty'

The Leader of the Irish Labour Party in the European Parliament has spoke of his anger at the European Union, whose bailout demands, including a reduction in Ireland's minimum wage, were "completely contrary to the European Treaties".

Labour MEP Proinsias De Rossa said today he had raised the issue in the European Parliament in Brussels after coalition Minister John Gormley revealed in the Dáil in late November that the reduction of the minimum wage was a condition of the EU and International Monetary Fund (IMF) bailout.

Mr De Rossa said such a demand was completely contrary to the European Treaties, both Article 9 and Article 3, which were inserted to ensure that the living standards of Europeans would be protected and obliged the Commission to ensure social policy objectives were a part of all economic decision-making.

The Labour MEP said the idea of European solidarity had been damaged by the failure of those brokering the deal to publish the Memorandum of Understanding (MOU), which detailed the agreement between Ireland and the EU and IMF.

Mr De Rossa demanded that the memorandum be circulated to National parliament as required by the Treaties under Article 12.

"We hear constant reference to being 'credible with the markets', and the need for 'fiscal responsibility' but we never hear from the [EU] Commission a demand that Member States comply with their social solidarity obligations.

"Instead we see the Commission conniving behind closed doors with the Irish government, a government that is on its last legs, to undermine social solidarity."

The Department of Finance denied Mr Gormley’s assertion that the minimum wage reduction was a condition of the bailout agreement, and instead claimed it was a way of driving down costs to businesses and of lowering wages in the economy.

The minimum wage was slashed in the December austerity budget by €1 per hour, or by a total of 12%.

(DW)