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Europe - "Reinforcing Employment and Economic Reactivation Policies with Gender Approach"

June 7, Madrid, Spain - European Women’s Lobby - Final event of the Spanish EU project:

Thank you for inviting me as a new President of the European Women’s Lobby to address you at the moment in which global social, economic and financial crisis is hitting nearly all EU member states and your own country even harder than most of the others. A project you are just finishing has never been more needed than now, but the challenges to make it succeed were never greater than now.

EU 2020 sets the target of 75 % employment rate for women and men. Before the start of the recession 10 member states were above 65% employment rate mark for women, in 2011 Estonia, Latvia, UK and Slovenia slipped below this mark. In this moment, in EU 27 we have 3.66 million of men and 3.8 million of women out of employment, education or training. For majority of EU member states EU 2020 target looks further away than 4 years ago.

Gender impact of this crises management in EU reminds me very much of the situation in the first years of transition in former socialist countries. There too the main issues were financial consolidation and balancing of the budget and the cure was identical to the one administered now to the financially destabilized EU member states. In many aspects the detrimental impact on gender equality in the first years of the transition crises was the same as now documented in the research that I quote. Pay gap diminished as men became less paid, the share of the women sole breadwinners went up, the fertility rates nose dived. With one difference: the buffers in former socialist states were not male and female migrants and youth, but blue collar workers, women, pensioners, people form ethnic minorities and young people.

Like in transitions of the 1990, now, in a number of EU member states, the most hit by the crises, one can see: the labor market segregation by gender is deepening, pensions, wages, social transfers and benefits are being delayed, working conditions are worsening, infringement of the pregnant women to maternity leave rights and benefits or to resume their job after maternity leave ,is becoming a problem in Spain, in Poland, in Italy in Czech Republic, in Slovenia . New jobs, for women slightly more than for men, are mostly worse protected and less paid jobs on short contracts. Like in transitions a decade and a half ago, women in EU now are acting, not as victims, but as the survivors of the crises – but for what a price? Working more, less protected for lower wages, working more in unpaid home care economy, accepting to feed their families and often their men alone, suffering from additional pressure of discrimination and violence at work place and at home, postponing motherhood or totally rejecting to give birth.

After all these negative trends manifested in the first years of the crises, the worst it seems, is still to come, as the effects of the fiscal consolidation and measures are still to be felt:

Fiscal consolidation: the measures 1

1 Crises and gender in 33 Euroepan countries

Downword leveling of equality or opportunity for change

Francesca Bettio, University of Siena and Fondazione Brodolini

Based on the report of the EGGE/ EGGSI network

(co-authored with M. Corsi, M. Samek, A. Verashchagina)

The quoted research enlisted the following most frequent consolidation measures in 19 countries: AT, BG, CZ, DE, EL, FR, FYROM, HU, IE , IS, LI, LV, NL, MT, PL, PT, RO, SE, UK

On the expenditure side:

Wage freezes or wage cuts in the public sector (11 countries);

Staffing freezes or personnel cuts in the public sector (9 countries);

Pension reforms: postponing retirement and/or bringing the age of retirement for women in line with that for men (8 countries);

Cuts and restrictions in care related benefits/allowances/facilities(8 countries);

Reduction of housing benefits or family benefits (6 countries);

Tightening of eligibility criteria for unemployment and assistance benefits or reductions in replacement rates (5 countries);

On the revenue side:

Tax measures (6 countries);

VAT increase (5 countries);

Increase in fees for publicly subsidized services (health care fee

transport fees, others) (2 countries).

How the impact of this fiscal consolidation approach is working in practice, in a concrete country, I can illustrate with the example of my own country, Slovenia. Measures which disproportionanaly hit women go like this:

Care for the sick family member – from 80% of the pay to 70% of the pay.

Second child in the child care – before 0 now 30% of the economic price

From 1st of September 2012 no more additional subvention for the food in the schools, child allowance for the middle class families with 42-53 % of average income per family member is lowered.

Pensions are frozen and those higher than 622 EUR per month are substantially lowered, yearly allowance for recreation is canceled for all pensioners with the pension higher than 622 EUR per moth.

Maternity leave indemnity is lowered from 100 to 90% of the pay

Wages in public sector (80% women jobs) are frozen till 1.1.2014, in 2013 no bonuses for better work, no promotion by wage classes, food subsidy diminished for 3.52 EUR per working day

Yearly allowance for recreation and holidays diminished to the amount decided by the government in 2012 and 2013

Bonuses for working age are diminished and only the time spent in public sector work counts

Bonuses at retirement are diminished from 3 to 2 last wages

Solidarity support only for the people who earn less than minimal wage, and in case of illness only to those who are on sick leave more than 6 moths

All wages in public sector are cut for 8%

In case of budgetary misbalance VAT can be raised for 3% points each year

Conclusion: my government has started an undeclared war against educated middle class working women!

On 7th June 2011 in the context of EU 2020 Strategy, the Commission made country specific suggestions for Council recommendations. The focus was on encouraging member states to take necessary measures in order to

- promote reconciliation of work and private life by providing available and affordable child care services

- enable access to more flexible working arrangements

- establish adequate tax and benefit systems in order to enhance female participation rates

What will Commission say on June 11, 2012 for example, to the Spanish government which has just seriously worsened flexibility of working breastfeeding mothers?

Few weeks ago, EC has published its regular Progress on Equality between women and men in 2011 report.

In 2011 average employment rate of women in EU 27 was 62.1 %, but in Spain, Hungary, Greece, Italy and Malta it was only between 55,6 and 45.6%

Average gap between fulltime and part time work for women and men was at -18.1 for women, but in Germany, Greece, Luxemburg, Italy, the Netherlands and Malta it was between - 21.9 and 36.8%.

Difference between employment rate of women without and with children under 12 in EU 27 was -12% for mothers, but in Germany, Estonia, Slovakia, Hungary and Czech R as much as from 19.2 to 31.6%.

Pay gap in EU 27 in average is – 16.4%, but in Cyprus, Germany, Austria, Czech R and Estonia it is between 21 % and 27.6%.

In EU 27 18,1% of women and 12.9% of men older than 65 were in risk of poverty after social transfers. But from Portugal to UK, Slovakia, Slovenia Bulgaria and Czech R. this risk for women was between 23.5 to 47.5% , The biggest difference between old women and men in this cumulative indicator of economic gender imbalances is in Slovenia: 27.1% of women and 9.3% of men.

EU needs serious investments not only in new sustainable technologies and infrastructure, in renewable energy but also in highly professional care jobs. But how it will crate them if it is on its way to cancel even the very concept of indivisible human rights, of universal access of its citizens and residents to dissent work, to child care, to education and life long learning, to heath care and social and old age security? Financial gurus are saying: Europe can not afford it. Women of Europe are saying: we can not afford to give it up

Joska Fisher, famous green German politician, published two days ago an interview saying that EURO will fall apart and EU with it if German leadership does not change its stubborn only austerity fixated policy. I say EU will fall apart if it does not find the way to diminish the growing gaps between the reach and the poor within every EU member state and between EU member states. The gap between the rich and the poor in EU like everywhere else in the world is in its biggest part the gap between economic opportunities and access to crucial resources and political power between women and men.

EU has been started as a peace and reconciliation project as much as an economic project, an attempt to insure social stability of Europe as much as to develop it into the economy of size competitive to the other global economic players. It seems that in this economic crises human rights, equality and solidarity based smart, sustainable and inclusive project of EU 2020 has been tacitly replaced by a project where some banks are too big to fail, but EU nations in serious financial crises are not too big to fail. When EU member states are encouraged in the name of fiscal consolidation to forget about social dialogue, to put important human rights, and women human rights in the first place on the shelf for better times, EU is not only in the financial and economic crises, its democracy is in crises, its fundamental values are in crises, really as Mr. Fisher said: at has come to the brink.

What can women in EU do, to reverse this way to disaster?

The European Women’s Lobby (EWL) was set up as a women’s European non-governmental organisation some more than 2o years ago to ensure that women’s voices are heard in the policy and decision making of the European Union as decisions made at this level impact directly on women’s lives.

Till the eruption of financial crises in 2008 women rights activists of EU succeeded to improve, with a lot of advocacy and lobbying efforts and periodical downturns, the status of women in many fields and in many ways. Violence against women became a serious issue of EU mainstream politics, gender pay gap stopped to be tacitly tolerated; in the decade before 2008 10 million of jobs were created, mostly for women. But the progress in the most important issue, the issue of empowerment of women in economic and political decision making has been slow, uneven and never got real badly needed financial support form EU.

The financial crises hit us when the average share of women in the parliaments and governments of EU member states was at 23% , while our presence between CEOs and in the boards of companies was symbolic. The progress in this field is uneven, the trends concerning women in the Boards are negative in Slovenia, Bulgaria, Estonia, Romania, Hungary and Cyprus, the same goes for the trends in the share of women between CEOs of the biggest listed companies. EU average in 2012 is 3.2%, but Malta, Czech R., Portugal, Greece, Austria and Hungary are down to 0, even if they have already reached a share between 8.3 and 2.1 %.

The situation is getting worse also in the share of women senior ministers – one can register serious backlash in Hungary, Greece, Czech Republic, Slovenia, Estonia, Spain. There are only 6 countries in EU with more than 30% of women parliamentarians in the single or lower house – Sweden, Netherlands, Belgium, Denmark, Germany and from December 2011 also Slovenia. But there are also 4 or them with a ratio below 12%: Malta, Hungary, Cyprus and Romania.

In crises times only parity matters! Just compare what women political leaders have done in Iceland – exactly everything what male leaders accepted to be forbidden to do in Greece!

What do we want?

As previously stated, we should not and we will not accept going back to the past.

 We want an equal society where women and men share rights, power and resources. We want a society where our human needs are met and where care economy is not charity but economy

 We want parity in decision-making and the EWL will continue our 50/50 campaign for the next European elections. We want Daphne project for parity to be able to develop advocacy for parity at EU level and in every EU member state with less than 40% of women in the parliament.

   We want legally binding quota for European publicly listed and non-listed companies with more than 50 employees and all state-owned companies to have 40% of women on their boards of directors by 2015 and 50% by 2020, with drastic sanctions for non-compliance.

 We want women to earn the same wage as men and to re-value the sectors of the economy where women are more concentrated, namely health, education, child care, social services, etc.

 We want individualized rights in relation to taxation and social security benefits. We want a pension that is equal to men’s and enables a dignified life and prevents the feminization of poverty as women age.

 We want a transparent and accountable financial architecture. Total separation of deposit and business servicing banking from the well regulated, transparent and highly taxed risk taking banking sector.

 We want ethical codes of conduct for the banking sectors and systems. These should mirror the values for which the EU stands for, namely: equality between women and men, human rights, anti-discrimination, democracy and the rule of law, which includes good governance.

 We want a European Union free of all forms of male violence against women.

 We want a sustainable world for the future.

 Above all, we want to be heard; this requires sufficient funding for our organisations to enable us to take part in the shaping of the way out of crises and of the post-crisis era.

In good times, small groups of expert feminists in mmebr states and in our headquarters in Brussels were able to advocate, lobby and negotiate step by step progress of women human rights, It is obvious that this will not work in the bad times. We need to develop massive nation wide women movements in all EU member states, forming EU wide specific issue coalitions, offering solutions based on our collective expertise, our solidarity, our determination to reformulate the notion of social progress, of democracy and common good. The power of women in French revolution, in soviet revolution in post second war times, in liberation movements of former colonies was not comparable to the power we have now. It seems small, it seems insufficient. It has never been so many educated, employed, globally connected, politically experienced women as we are today. It will have to do. The challenge is enormous, but we can do it.The women from the Spanish women lobby yesterday have put it right: If not now, when? If not us, who?

Sonja Lokar, President of the EWL - European Women's Lobby