EU fiscal rules must be reformed rapidly

• The debt rule must be abandoned
• The deficit rule should allow for public investments
• Current account management more strongly involved in the regulatory framework

FinUnions’ member organizations SAK and STTK  consider it necessary to reform the rules of EU fiscal policy. Even before the COVID-19 crisis, the European Commission began reforming its debt and deficit rules, but the work was not completed.

During the COVID-19 crisis, fiscal policy rules have been shelved. Instead of returning to the old regulatory framework, we need to move to comply with revised rules after the crisis. The current rules have proved to be pro-cyclical, reinforcing economic fluctuations when they should instead support counter-cyclical fiscal policies.

The debt rule must be abandoned. Following the COVID-19 crisis, it is unrealistic to return to the public debt ceiling of 60% of GDP. It is difficult to find an economic justification for the ceiling of the debt rule, and it is not even necessary to achieve it in the near future.

The deficit rule should make public investments possible. The 3% of GDP deficit rule set out in the Maastricht Treaty can serve as a basis for a new regulatory framework, but it must exclude public investments. This will ensure that the public sector has the opportunity to revitalize and sustain investments even in recessions. This follows the so-called the golden rule that investments should be financed with debt and current expenditure with income over cyclical fluctuations.

Deficit rules also need to be simplified. The definition of a structural deficit is uncertain and often changes over time. For this reason, rules based on a structural deficit should be abandoned.

Current accounts at the heart of the new regulatory framework. Current account imbalances were largely the cause of the Eurozone crisis. Rules based on current account management should therefore be significantly strengthened. Current account deficits and surpluses should be treated symmetrically, for example by requiring the 3% deviation to be invested in the European Investment Fund.

Additional information:

• Ms Susanna Salovaara, Director at FinUnions, tel. +32 488 47 95 08, susanna.salovaara@finunions.org 
• Mr Patrizio Lainà, Chief Economist, STTK, tel. +358 40 583 4432, patrizio.laina@sttk.fi

Working Conditions in Remote Work and the Right to Disconnect Must Be Secured in the EU

FinUnions, representing members of SAK and STTK, alongside European labor unions, defend the right to decent working conditions and legal protection in remote work, as well as the clear separation of work and leisure time.   

FinUnions emphasizes that the provisions of labor legislation should be applied to remote work in the same way as to work performed on the employer’s premises. Remote work is not a new form of work that falls outside the scope of current labor legislation. When creating regulations, the focus should be on the specific characteristics of remote work where the regulations are unclear, open to interpretation, or insufficient. It is essential to clarify regulations so that, for example, the risks associated with remote work can be better identified regarding occupational safety, and the employer’s obligations for risk assessment and prevention in remote work are made clearer.

The employer must provide the necessary tools and connections for remote work, as well as the necessary guidance and training for their use. In the EU, the discussion on remote work has included the question of the Right to Disconnect. The right to disengage from work does not currently materialize as it should in today’s working life because advanced communication possibilities have lowered the threshold for employers to contact employees during their free time. The distinction between work and free time must be strengthened in a way that protects employees’ genuine right and opportunity to disengage from work during their free time. While promoting the right to disconnect at the EU level, it is also essential to ensure that this does not create an obligation to disconnect from work.

Two separate legislative projects

The discussion on the Right to Disconnect is related to psychosocial stress at work, but in terms of legislation, it should be viewed as a separate project. The Right to Disconnect alone does not solve problems related to psychosocial risks. Therefore, it is important to continue preparations for addressing psychosocial risks as a separate issue. FinUnions will clarify its position once the European Commission has made its proposal, considering the advocacy and preparatory work of the European Trade Union Confederation (ETUC).

Additional information:

• Susanna Salovaara, Head of Office, FinUnions, +32 488 479 508, susanna.salovaara@finunions.org

• Pekka Ristelä, Head of International Affairs, SAK, +358 40 5468781, pekka.ristela@sak.fi

• Maria Häggman, Head of International Affairs, STTK, +358 40 148 9091, maria.haggman@sttk.fi

This is FinUnions’ Privacy and Data Protection Statement in accordance with the EU General Data Protection Regulation (GDPR). Completed on 1.1.2021. Last modification 16.11.2022.

1. Data Controller

FinUnions, Boulevard du Roi II, 5, 1210 Bryssel

Email: finunions.org@gmail.com

2. Contact person responsible for the register

Marie Sandberg-Chibani, marie.sandberg-chibani@finunions.org, tel +32 492 08 01 39.

3. Name of the register

FinUnions contact information register, marketing and stakeholder register (for events), online service user register, newsletter member register.

4. Legal basis and purpose of personal data processing

The legal basis for processing personal data under the EU General Data Protection Regulation is
– the consent of the individual (documented, freely given, specific, informed and unambiguous)
– a contract to which the data subject is a party
– the law
– the performance of a public task (based on what), or
– a legitimate interest of the controller (e.g. pre-contractual customer relationship, employment relationship, order).

The purpose of processing personal data is to communicate with customers, maintain customer relations, marketing.

The data will not be used for automated decision-making or profiling. 

5. Data content of the register

The data to be recorded in the register are: person’s name, title, company/organisation, contact information (phone number, email address, address), website addresses, social media accounts/profiles, information about ordered services and changes, billing information, other information related to the customer relationship and services.

The data will only be kept for as long as necessary for the purpose for which it was collected. The IP addresses of visitors to the website and cookies necessary for the functioning of the service are processed for legitimate interests, such as ensuring data security and collecting statistical data on visitors to the site in cases where they can be considered as personal data. Third-party cookies will be subject to separate consent where necessary.

6. Regular sources of information

The information stored in the register is obtained from the customer through, for example, messages sent via web forms, email, telephone, social media services, contracts, customer meetings and other situations where the customer discloses their information.

Information on contact persons of businesses and other organisations may also be collected from public sources such as websites, directory services and other businesses.

7. Regular disclosures and transfers of data outside the EU or the EEA

The information is not regularly disclosed to other parties. Information may be published to the extent agreed with the customer.

Data may also be transferred outside the EU or EEA by the controller. Data will not be transferred to the United States without the express consent of the data subjects.

8. Principles of register protection

The register is processed with due care and the data processed by the information systems are adequately protected. When register data is stored on Internet servers, the physical and digital security of their hardware is adequately ensured. The registrar shall ensure that stored data, server access rights and other information critical to the security of personal data are treated confidentially and only by employees whose job description includes this.

9. Right of inspection and right to request correction of information

Every person in the register has the right to check the information stored in the register and to request the correction of any inaccurate information or the completion of incomplete information. If a person wishes to check or request rectification of the data stored about him or her, the request must be sent in writing by e-mail to the data controller. If necessary, the controller may ask the applicant to prove his or her identity. The controller will respond to the customer within the time limit set by the EU General Data Protection Regulation (usually within one month).

10. Other rights related to the processing of personal data

A person in the register has the right to request the erasure of personal data concerning him or her from the register (“right to be forgotten”). Data subjects also have other rights under the EU General Data Protection Regulation, such as the restriction of processing of personal data in certain  situations. Requests should be sent in writing by email to the controller. If necessary, the controller may ask the applicant to prove his or her identity. The controller will respond to the customer within the time limit set by the EU General Data Protection Regulation (usually within one month).