At the Council meeting of June 28-29, the European heads of state and government will discuss emergency measures to respond to a second major bank crisis and they will adopt the Country Specific Recommendations for 2012, against the background of economic governance of Europe.

In a letter sent to the heads of state this week, we are calling on member states to switch from emergency measures with damaging social consequences to a sustainable and inclusive long term plan for an economy that responds to the needs of the EU population.

Our three main concerns are:

• Despite the recent declarations on the need for growth, the main focus of the economic governance is still primarily on austerity measures and cuts in budget expenditures.
• The fight against poverty is obviously absent from top priorities. Member states' commitment to lift 20 million people out of poverty is not being implemented.
• Increasing precariousness on the labour market is detrimental to an inclusive growth.

For a better Europe, we want member states to:

A. Invest in a Social Pact in the economic governance that will support an inclusive growth with quality jobs, adequate social protection systems and accessible public services and ensure reduced poverty and social exclusion. The Social Pact will provide the missing link between poverty reduction and social inclusion, sustainability and growth and should at least comprise actions to:

• Implement the commitment to lift at least 20 million people out of poverty and social exclusion, to improve the lives of people while bringing economic benefits for society.

• Invest in quality and sustainable employment to counter the increase of precariousness, indecent working conditions, labour market segmentation and in-work poverty and to guarantee decent wages.

• Invest in quality education and training to achieve equal opportunities, social inclusion and full participation, to include the disadvantaged groups as well as to safeguard the education of the new generations and the prosperity of our society.

• Invest in quality social and health services as a potential source of quality employment and as an answer to the ageing population, the need to support early childhood interventions and the marginalisation of vulnerable groups.

• Ensure affordability of housing to respond to the current housing market crisis and to address the growing need for affordable housing for an increasing part of the population.