Telecom is one ‘success‘ of the Lisbon Agenda. The goal was to break up and privatise the former state monopolies. This has taken place, with the reduction of tens of thousands of jobs. But what about the promise of lower prices? “Local call prices have not fallen as much as expected and were no lower in 2003 than in 1997…And in several member-states including Belgium, Greece, Spain, Italy, Austria, Portugal and Sweden local call prices have risen over recent years“, says the Scorecard. Cuts in prices would in fact be more likely if there were no shareholders demanding bigger profits from the privatised companies.
Gas and electricity are supposed to be fully ‘liberalised‘ by 2004 for companies and 2007 for households. In Sweden, we have seen the consequences already, where electricity now is traded in the same way as shares. The prices (meaning costs to the consumer) can differ from one day to the next, but in general they have increased dramatically over the last few years. The energy sector‘s profits, on the other hand, have increased more than most other sectors.
Water is next. The Commission is turning its attention to water supplies. The EU's water sector has a turnover of 80 billion euros a year – more than the gas sector. The EU parliament wants to speed up “full competition“ in railway transport. Some governments, including France, have opposed it. They point to the sorry state of the British rail network as evidence of the dangers of rapid liberalisation. They advocate the same path as the British government – only slower - to avoid both rail chaos and political repercussions.
The EU has been planning to have a single financial market by 2005. This goal seems more and more unrealistic. The Scorecard points to some of the national tensions involved over the so-called takeover directive. “German businesses and politicians have fought hard against this proposal, fearing that prominent German companies such as Volkswagen could become vulnerable to foreign takeovers“. As a result, member states can opt out of this proposal.
For all the talk about supporting small businesses, these plans mean the destruction of local companies when transnationals get free access across borders. “In January 2004, the Commission embarked on an equally ambitious plan to create a single market in general services, such as retailing, travel, leisure and information technology“. The threat will be greater in the new member states: 50-70 per cent of workers are employed in small or medium sized companies in Eastern and Central Europe.
The EU also aims to “make it easier for firms to send workers abroad on a temporary basis“. A serious challenge will be posed for trade unions to fight for union contracts for all.
Under the headline “Modernising social protection“, the Scorecard brings up some of the worst attacks on the welfare state, which are, at the same time, policies which have created widespread resistance. The Lisbon agenda wants to increase the effective retirement age by five years, to 65, by 2010. Pensions will be based more on private savings and thereby on a lower level for workers. In Greece, Austria, France and Italy, these proposals have provoked mass struggle, including general strikes. Italy‘s prime minister, Berlusconi, even proposed a 'Maastricht on pensions‘, ie common EU rules and targets, as a way to get around national opposition.
Privatisation and cuts in pensions have gone a long way in the new member states. Many of them are following the Swedish pensions ‘reform‘, when a pension based on the 15 best yearly earnings was replaced with a pension based on 40 years, as well as the compulsory privatisation of a part of the pension.
Poverty is increasing in the EU, as a direct result of cuts and lower wages. 55 million people, or 15 per cent of the population in the 15 EU countries, were at risk of being in poverty in 2001, according to the EU Commission. Britain, Belgium and Poland are mentioned in the Scorecard as countries with a high decree of jobless households.