SHARE
COPY LINK

EUROPE

French truckers block borders to protest eastern European competition

Hundreds of truckers blocked France's borders with Italy and Belgium on Tuesday, angry at EU rule changes that they say fail to protect them from low-cost eastern European competition.

French truckers block borders to protest eastern European competition
AFP

Drivers began blocking the Frejus tunnel in Modane, eastern France, before dawn, at one point leaving more than 200 heavy goods trucks waiting to cross into Italy.

At Rekkem on the Belgian border there were up to 10 kilometres (six miles) of tailbacks, though officials said the traffic jams had cleared by
mid-morning.

Pascal Goument of the CFTC union said the protest was “a warning for Europe”.

Five truckers' unions wrote to President Emmanuel Macron on Tuesday demanding a meeting, blasting the “disastrous consequences” of their industry
being excluded from renegotiated EU regulations.

Macron has been pushing for a revamp of the Posted Workers Directive, which allows workers from lower-wage countries such as Poland to work temporarily in richer EU nations.

Their taxes and social charges are paid at home — often making them cheaper to hire in western Europe than their domestic competitors.

France, which saw a 24-percent hike in posted workers to more than 354,000 last year, has complained that the rules create an unlevel playing field.

Macron reached a compromise with his EU peers in October under which workers can only be posted abroad for 12 months — but with a key concession allowing for a six-month extension at the company's request.

France was also forced to accept that these changes exclude the road transport sector as countries including Poland, Hungary and Spain said the reforms could hurt their drivers.

'Slaves on the road'

Patrick Blaise of the CFDT union said French drivers wanted “equal work for equal pay — right now, not in 10 years.”

Under the current deal, foreign drivers must earn the minimum wage but may not receive other benefits enjoyed by local rivals, such as paid meals or lodging.

“We don't want drivers to be slaves on the road,” Antoine Fatiga of the CGT union told AFP in Modane.

He added: “When they come to work here for two times less than us, we struggle to keep our work.”

Protesting truckers also erected barriers at Strasbourg on the German border, while on the Luxembourg border truckers drove deliberately slowly to snarl traffic.

The Posted Workers Directive, first introduced in 1996, has caused resentment in western countries such as France, Germany and Austria, which argue it amounts to “social dumping”.

But there has been staunch resistance to changing the rules in eastern and central Europe, with Poland benefiting the most.

EUROPE

Brussels warns Italy to rein in public spending amid pandemic

Most EU member states should continue to invest to support the continent's economic recovery, but heavily-indebted Italy should rein in public spending, the European Commission warned on Wednesday.

Italian Prime Minister Mario Draghi
Italian Prime Minister Mario Draghi expects the country's GDP to recover in the coming year. Photo: Alessandra Tarantino / POOL / AFP

“The economy is bouncing back from the recession, driven by a rebound in demand across Europe,” EU executive vice-president Valdis Dombrovskis said.

“But we are not out of the woods yet. The economic outlook remains riddled with uncertainty,” he said, warning that the coronavirus is still spreading, prices are rising and supply chains face disruption.

Despite these unpredictable threats, European officials predict a strong recovery, and want eurozone governments to maintain their “moderately supportive fiscal stance” to support investment.

EXPLAINED: How Italy’s proposed new budget could affect you

Italy, however, remains a worry. Its public debt passed 155 percent of its GDP last year, and Brussels is worried that it is still budgeting to spend too much next year.

“In order to contribute to the pursuit of a prudent fiscal policy, the Commission invites Italy to take the necessary measures within the national budgetary process to limit the growth of nationally financed current expenditure,” the commission report said.

The commission did not say by how much Italy’s spending plans should be reduced, and its recommendation is not binding on the government.

The European Union suspended its fiscal discipline rules last year, allowing eurozone members to boost their public spending to help their economies survive the Covid-19 pandemic.

But the European commissioner for the economy, former Italian prime minister Paolo Gentiloni, said governments should now “gradually pivot fiscal measures towards investments”.

“Policies should be differentiated across the euro area to take into account the state of the recovery and fiscal sustainability,” he said.

“Reducing debt in a growth-friendly manner is not necessarily an oxymoron.”

Italian Prime Minister Mario Draghi, a former European Central Bank chief, has said Italy’s economy is recovering after the pandemic-induced recession.

Draghi forecast economic growth this year of “probably well over six percent” in a statement on October 28th.

Italy’s GDP rate grew by 2.6% in the third quarter of 2021.

While economists don’t expect Italian GDP to bounce back to pre-pandemic levels until 2022, ratings agency Standard & Poor has revised its outlook for Italian debt from stable to positive.

SHOW COMMENTS