Following years of negotiation, the European Parliament has now voted in favour of the Free Trade Agreement of the EU with Columbia. In spite of the still existing human rights violations and violent acts against trade unions. The new Agreement is expected to come into force in 2013.

Following the publication by the EU Commission of the White Paper on Pensions, one of the most important strategy papers on the subject of pensions, in February this year, it is now the turn of the European Parliament to have its input. The competent rapporteur recently presented her report and made no secret of her ideas: expanding private retirement savings and occupational retirement schemes as well as the necessity to link the statutory retirement age to life expectancy.

The action plan on corporate governance continues the current course. Current company rules shall be modernised. The Commission focuses on enhanced transparency, greater engagement by shareholders and the promotion of cross-border operations. Individual points of the action plan are going in the right direction. Nevertheless, the rights of employees are being short-changed.

The experiences of the last years clearly demonstrate that urgent improvements are needed to ensure the implementation, application and enforcement of the Directive in respect of posting workers within in the framework of the provision of services. That is why the European Commission proposed an Enforcement Directive with new solutions and measures on 21 March 2012.

The BAK (Austrian Federal Chamber of Labour) welcomes the intention related to the draft Proposal, to increase investor information and consumer protection.The BAK supports a broad scope for savings and investment products.

A recently published study by the European Foundation for the Improvement of Living and Working Conditions presents new findings concerning youth unemployment in Europe. New criteria give an insight into causes and costs of Europe’s youth unemployment. The shockingly high number of young people out of work and the enormous costs, which the states have to deal with, should be a wake-up call for European policy-makers. The MEP Emilie Turunen regards the results of the study as reason to implement a radical change in policy.

The presentation of the autumn forecast 2012-14 by the European Commission on 7 November in Brussels confirmed what had been feared by many: Europa is not making any headway and cannot find its way out of the crisis. The decline of Gross Domestic Product (GDP) for the entire EU for 2012 is estimated at 0.3 %; whereby a hardly recognisable rise of 0.4 % in economic growth has been predicted for 2013.

The participants of a recent event concerned with social housing did not mince their words: non-profit housing shall remain a matter for the Member States. The rather unpleasant reason for the event organised by the European Economic and Social Committee were complaints and decisions taken by the European Commission, which might put the model of social housing at risk.

The BAK welcomes the initiative of the EU-Commission to introduce a harmonized framework for collecting societies in order to achieve transparency and improve their management and supervision bringing about at least minimal harmonisation in this complex legal area.

In its latest prognosis concerning the world economy, the World Economic Outlook (WEO), the International Monetary Fund notes that the short-term multiplier effect of public spending has been significantly underestimated. The so-called fiscal multipliers measure effects, which have certain public financial impulses on output. For example the lack of public investments in social services entails a variety of consequences: fewer employees are required and the treasury coffers receive less income and turnover tax.