The abrupt demonetization move by the Modi government on November 08 ostensibly to track black and fake money in circulation without any proper plan to save the common people has made the common people go mad. While making this important announcement the Modi government obviously refused to take both people and the Parliament into confidence, thereby causing additional existential worries to common people.
Parliament is turmoil over the issue but neither PM Modi o not the ruling BJP is worried about the negative consequences of the seemingly ill-fated move.
The ruling CPM-led LDF in India’s Kerala state will organize a ‘human chain’ across the state on 29 December as part of its plans to intensify protests against hardships faced by people due to the strange demonetization scheme of the Modi’s BJP government. The protest is meant to force the Modi government to withdraw the currency ban announced on 8 November and compensate the people for their loss of revenues and suffering following the demonetization announcement in midnight by PM Narendra Modi.
The ‘human chain’ would be formed from northern district Kasargod to state capital in the south, Thiruvananthapuram, LDF convener Vaikom Viswan said.”Not only party workers and sympathizers but everybody who share the same sentiments on the issue can participate in the human-chain protest,” he said.
Before organizing the ‘human chain’, the front would conduct conventions in all panchayats across the state on 20 and 22 December to create awareness among people about the drawbacks of abrupt withdrawing high denomination notes. Party volunteers would also conduct house visits at the booth level on 27 and 28 December in this regard. Alleging that only corporates have benefited from the demonetization, Viswan said the decision to withdraw currency was taken by the Centre with “political motives.”
CPM party held the PM Modi “singularly responsible” for the “mess” in the economy due to demonetization and it has renewed its contempt notice against him for ignoring Parliament and continuously making policy statements outside Parliament and “running away” from a debate in the House.
Referring to Modi’s 8 November demonetization announcement, CPM leader Sitaram Yechury MP said, “The Prime Minister is singularly responsible for the entire mess in our economy and the harm it caused to common people because it was his announcement, as his personal decision and not that of the Union Cabinet. Let him be accountable to the House. Why is he running away from Parliament?” Observing that Modi was not present in Rajya Sabha when questions on the PMO were listed to be answered, he said, “The Prime Minister avoids coming to the House, but continuously makes policy statements outside in public speeches. He is continuously violating parliamentary norms and practices.” Parliamentary democracy is derailed.
Yechury added: “Even today, there was clear violation as the waiver of service tax on credit and debit card transactions was made outside Parliament. No tax proposal can be made anywhere else but in Parliament,” Yechury said, adding that the Consolidated Fund of India “will now get less service tax receipts because of the Prime Minister’s proposal”. “That is why it is contempt of Parliament. It is completely against the norms and traditions of Parliament. I have renewed my contempt notice today and urged the Upper House (Rajya Sabha) Chairman Hamid Ansari to consider it and give his ruling. A meeting of the Privileges Committee has been called,” he told a press conference in New Delhi.
Referring to Finance Minister Arun Jaitley’s statement that there was no rule to make the PM sit through any debate in Parliament, the CPM General Secretary said there are precedents when the then Prime Minister Manmohan Singh sat through two debates on the 2G spectrum allocation scam and the coal scam and replied to it.
“But here this Prime Minister is running away from debate,” he alleged. He said the demand for a Joint Parliamentary Committee to go into “all aspects” of effects of demonetization including “the deaths of over 100 people”, the “harassment” caused to the public and “several” BJP leaders allegedly being caught with large amounts of cash, has been supported by several major Opposition parties in Parliament.
The CPM leader said the demonetization move, according to Modi, had the objectives of fighting blackmoney, corruption and counterfeit. However, now the Reserve Bank of India says 82 per cent of the value of currency notes withdrawn have come back to the banking system, totaling about Rs 11.86 lakh crore and the old notes can be exchanged till 30 December. “At this rate, more notes than the value of counterfeit currency have been deposited and become legal in the banking system. So the PM has successfully converted black money into white and legalized counterfeit currency. None of his objectives have been achieved,” Yechury said, adding it “reveals a deliberate attempt to legalize counterfeit money and convert black money into white”.
Referring to French queen Marie Antoinette’s infamous quote ‘if you don’t have bread, have cake’, he said the PM Modi has become “Modi Antoinette as he is saying ‘if you don’t have paper money, use plastic money'” when 98 per cent of Indian economy is cash economy. Even in the USA which has the reach of banking system and internet network is vast, 46 per cent of the economy runs on cash, he said, adding Modi has been “talking of a cashless economy and probably living in something like a fool’s paradise”.
Meanwhile, many cash lords with huge sum of unaccounted money and gold reserves have been booed across the nation, though not everyone fraud is targeted by the government. A lot of crores of cash and gold have been taken away by the officals from the famous Reddy gang of Andhra Pradesh/Telengana in Chennai with strong political links and patronage. The Central Bureau of Investigation (CBI) has arrested a senior special assistant of the Reserve Bank of India in Bengaluru for alleged involvement in a currency exchange racket, Media reports said nine men were arrested in connection with alleged exchange of Rs 1.50 crore worth of banned currency notes.
The government had on 24 November stopped over-the-counter exchange of old currency notes at bank counters, but continues the facility at RBI windows until 30 December. There has been suspicion that old notes are being exchanged at a premium, helping the black money holders to whiten their ill-gotten wealth. The rich people use the poor for exchanging their black money with white ones from banks by paying them some money. A report in The Times of India said the arrested RBI official and others were exchanging the notes at a 15-30 percent commission for exchanging the notes. While arresting some, however, the government seems to let others to continue to enjoy the exchange business, increasing their illegal wealth.
The Bangalore incident is another proof that illegal exchange of old notes is rampant despite the government and its investigative agencies keeping a hawk’s eye on all such activities after the demonetization of Rs 500 and Rs 1,000 notes on 8 November. A report in The Economic Times , however, said the premium for such illegal exchange of old notes have fallen drastically now and the money changers are even ready to pay an interest to black money holders in return for a one-year lock-in.
This reversal of trend, according to an economist quoted in the report, indicates that the black money has already entered into the system. Another reason being spoken about is that holders have found new ways to convert their black money into white.
Over years of practice allowed by the government, blackmoney has become an insuperable part of currency system of India. The debate on whether demonetization is a boon or blunder for 125 crore Indians is turning intense with former finance minister P Chidambaram and noted economist Jagdish Bhagwati joining with their views and allegations. Chidambaram said PM Narendra Modi’s currency ban is the biggest scam of the year and an “absurd, thoughtless move” that must be probed while Bhagwati has said demonetization is a “courageous and substantive economic reform that, despite the significant transition costs, has the potential to generate large future benefits”. But Bhagwati, like Modi and other BJP leaders, is drawing a clear political line and has not explained the “benefits” of suffering by the people of India. He is just confusing the affected masses of India.
Bhagwati’s argument, that the currency ban will check counterfeit notes “with the new notes being much less prone to counterfeiting” doesn’t have much support of evidence on the ground since there are already reports that fake Rs 2,000 notes are in circulation. Given the past experience, it is just a matter of time before fake notes enter the scene again in a major way. Bhagwati’s optimistic views on the currency ban is a booster dose to the Narendra Modi-government currently struggling to face criticism on the massive, overnight currency ban
Chidambaram’s allegation that currency ban is a scam with an ill-intent has generated debate in the media and the former FM has asked some right, pointed questions. For instance, Chidambaram questions the large-scale leakage of new Rs 2,000 notes to hoarders at a time when new currency is scarce even at bank branches. The incidents of new Rs 2,000 note bundles surfacing across the country to the tune of crores of rupees point to major lapses in implementation by the Modi government. These instances must be investigated and the likely involvement of bank officials needs to be probed.
Chidambaram is bang on when he says what calculations went to the government decision of setting the Rs 24,000 weekly withdrawal limit from bank branches when enough isn’t cash available. Similarly, his point that blanket ban on district cooperative banks has hurt the farmers is true given the experience in rural areas, especially in states like Kerala where cooperative sector plays a key role. The Modi government owes an explanation on these and has faced severe criticism for lack of planning, in turn, causing difficulties to public.
Chidambaram defending the Congress’ opposition strategy in Parliament — the PM should be present and speak on the issue—isn’t an unreasonable demand. Given the critical nature of demonetization for India’s economy and the hardships it has caused to its common people. There is no excuse for PM Modi or BJP for not taking the Parliament into confidence, stating the objectives, progress and rationale of the demonetization scheme.
Bhagwati notes that “around 80 percent of the currency in higher denominations has now been deposited back into bank accounts. Since individual deposits will now be matched with their tax returns and unaccounted deposits will be taxed, this will yield a windfall for the government, permitting large increases in social expenditures.” But this is something many other economists have questioned cautioning one should wait and watch as to how much of the unaccounted deposits the tax department is able to recover ultimately. For instance, take a look at what another world-renowned economist and former RBI governor, Raghuram Rajan, said on demonetization. “Black money hoarders find ways to divide their hoard into many smaller pieces. You find that people who haven’t thought of a way to convert black to white, throw it into the coffins or hundi in some temples. I think there are ways around demonetization. It is not that easy to flush out the black money.”
The Modi government could have introduced the demonization without harming the common peole and helping the rich and corporate lords.
While it is a fact that the demonetization has nudged several hesitant people to start using electronic payment tools, the idea of using large scale demonetization (sucking out 86 percent of currency by value all of a sudden), is contested by experts, who have been saying that such a push should have happened over a period of few years, rather than through a shock-treatment such as this putting lives at difficulty. Also, India needs to have strong laws to ensure customers and common people are protected in the event of losing money while making payment through mobile or laptop. As of now, that isn’t the case.
Chidambaram has raised certain important points on demonetization. His posers expose the government’s implementation flaws and immediate challenges on making the transition process smooth to end the cash-crunch.
PM Modi’s shock therapy has caught the common people unaware and hence they have no idea about the move and how to go about, while for the rich and corporate lords money is not at all a problem.
Explainer: the European Pillar of Social Rights Action Plan
What is the European Pillar of Social Rights?
The European Parliament, the Council and the Commission proclaimed the European Pillar of Social Rights in 2017. It consists of twenty principles that have guided us ever since towards a strong Social Europe. They express principles and rights essential for fair and well-functioning labour markets and welfare systems.
The Pillar is structured around three chapters:
- Equal opportunities and access to the labour market;
- Fair working conditions;
- Social protection and inclusion.
Why do we need an Action Plan to implement the Pillar?
We need to update our ‘social rulebook’ both in light of long-term transformations of our labour markets and economies shaped by climate change, digitalisation, globalisation and demographic trends, as well as the more immediate and drastic changes the pandemic has brought to our jobs, education, economy, welfare systems and social life. The Pillar principles set the framework for the path ahead.
Many people are worried about their jobs and their future. This is why we need to put a strong focus on quality jobs and skills and give adequate protection to those in need to pave the way for a fair, inclusive and resilient recovery and prepare for a just transition to greener and more digital economies. To do so, the Action Plan proposes concrete actions to accelerate the implementation of the principles and further turn Europe’s social rights and principles into a reality. It also proposes employment, skills and social protection headline targets to be achieved by 2030. With the financial support of the Multi-Annual Financial Framework 2021-2027 and NextGenerationEU, and the monitoring under the European Semester, this will guide our joint efforts towards a strong Social Europe and reaching a sustainable impact.
With this Action Plan, we are also responding to calls from the European Parliament and Member States as well as social partners, other stakeholders and most importantly EU citizens. A special Eurobarometer survey has been conducted asking citizens for their views on social issues. In their ‘European Council Strategic Agenda 2019-2024′, Member States have noted that the European Pillar of Social Rights should be implemented at EU and Member State level, with due regard for respective competences. The European Parliament in its ‘Resolution on a Strong Social Europe for Just Transitions’ has also underlined the importance of pursuing the implementation of the Pillar’s rights and principles.
The Action Plan builds on a broad public consultation conducted between January and November 2020, which resulted in more than 1000 written contributions from Member States, EU institutions and bodies, regions, cities, social partners, civil society organisations, international organisations, think tanks and citizens. In addition, the Commission has held a series of dedicated webinars with over 1500 individual stakeholders across Europe.
Why does the Action Plan set EU level targets?
The Commission proposes three headline targets for the EU, to be reached by 2030, on employment, skills, and social protection, in line with the UN Sustainable Development Goals (SDGs):
- At least 78% of people aged 20 to 64 should be in employment.
- At least 60% of all adults should participate in training every year.
- The number of people at risk of poverty or social exclusion should be reduced by at least 15 million.
The headline targets are important to set a common ambition for a strong Social Europe. They will allow the Commission to monitor progress in turning the principles of the Pillar into action. Together with the EU’s political goals for the green and digital transitions, social targets will help to focus policy efforts on reaching results and offer an incentive for reforms and targeted investments in the Member States. The Commission invites the European Council to endorse these three targets and calls on Member States to define their own national targets to contribute to this collective effort.
How will the Commission monitor the implementation of the Pillar?
The Commission will monitor progress through the European Semester, the EU’s framework for coordinating social and economic policies across the European Union.
The Commission proposes to revise the Social Scoreboard, which feeds into the European Semester process, to better reflect the 20 principles of the Pillar, making it easier to monitor the progress of policy priorities and actions set out in the Action Plan. The Scoreboard will include new headline indicators on adult learning, child poverty, disability employment gap, and housing cost overburden.
The Commission will use the new EU 2030 employment, skills and social protection targets as part of its toolbox to monitor Member States’ progress towards the implementation of the rights and principles of the Pillar.
What remains to be done to implement the Pillar?
Since the start of its mandate, this Commission has already taken concrete initiatives for a strong Social Europe. Several principles of the Pillar require further legislative or non-legislative initiatives to become effective. The additional initiatives outlined in today’s Action Plan will further improve the social rights in the EU. The Commission will work to update, complement, and enforce existing EU law, wherever necessary.
Translating all of the Pillar principles into reality is a joint responsibility. It greatly depends on the commitment and action of Member States. They hold the main responsibility for employment and social policies and consequently also most of the tools to implement the Pillar. The Commission therefore calls on Member States, including regional and local authorities, social partners, civil society and other relevant actors, to join their forces. The Commission encourages Member States to organise a coordination mechanism to ensure engagement of all relevant stakeholders at national level in implementing the Pillar. Together they can advance the implementation of the Pillar within their respective spheres of competence.
What is the EU doing to safeguard jobs and social rights in the recovery from the current crisis?
The coronavirus pandemic tragically cost the lives of many people and had a drastic social and economic impact on our lives. For many people, their work routine has changed, some have lost their jobs or risk doing so.
The Commission has been mobilising all means at its disposal to help support Member States to keep people in their jobs. The Commission’s SURE scheme supports Member States by providing financial assistance of up to €100 billion in EU loans. The overall financial support proposed under SURE by the Commission is €90.6 billion and covers 19 Member States. The Commission’s package on youth employment support, skills and vocational education and training presented in July 2020 is specifically designed to help the next generation of Europeans to get on the jobs ladder.
The EU’s long-term budget, coupled with NextGenerationEU, the temporary instrument designed to boost Europe’s recovery, will be the largest stimulus package ever financed through the EU budget. A total of €1.8 trillion (in 2018 prices) will be available both for showing solidarity to overcome the crisis of today, and also for building the next generation EU.
Together with changes to the EU’s social and employment funding programmes like the European Social Fund (ESF+) and the Fund for European Aid to the Most Deprived (FEAD), the package will help tackle the main social and employment challenges that lie ahead, such as rising youth unemployment, the need to steer basic food and material aid to those most in need, as well as addressing child poverty. REACT-EU will bring €47.5 billion in fresh money from 2020-2022. The ESF and FEAD can top up its funding from this new resource to fund measures to counter the negative impact of the coronavirus on the labour market.
The Recovery and Resilience Facility with a total of €672.5 billion will provide large-scale financial support for a lasting and inclusive recovery. It will fund coherent packages of reforms and investments that respond to the challenges identified in the relevant country specific recommendations of the European Semester, many of which refer to labour, skills and social policies. It will therefore actively contribute to the implementation of the Pillar. The Commission Recommendation on Effective Active Support to Employment following the COVID-19 crisis (EASE) provides further guidance on how to use available funding opportunities, including from the Recovery and Resilience Facility, to support the recovery in labour markets.
The European Pillar of Social Rights Action Plan, together with its three EU 2030 headline targets on employment, skills, and social protection, will offer an additional incentive for Member States to invest in a strong Social Europe.
What has the Commission done so far to implement the European Pillar of Social Rights?
In her Political Guidelines, President von der Leyen has committed to putting forward an Action Plan to fully implement the European Pillar of Social Rights and reconcile the social and the market in a changing economy.
Since the start of its mandate at the end of 2019, this Commission has contributed to the implementation of the Social Pillar principles with the following initiatives, among others:
- Just Transition Fund;
- European Gender Equality Strategy;
- European Skills Agenda;
- Youth Employment Support;
- Instrument for temporary Support to mitigate Unemployment Risks in an Emergency (SURE);
- Proposal for an EU Directive on adequate minimum wages.
A full list of key Commission actions is available in Annex 1 of the European Pillar of Social Rights Action Plan.
What specific proposals will the Commission present in the future?
This week the European Commission presents three concrete deliverables of the European Pillar of Social Rights Action Plan:
- A Commission Recommendation on Effective Active Support to Employment following the COVID-19 crisis will promote job creation and job-to-job transitions towards expanding sectors to boost the economic recovery.
- A new Strategy for the Rights of Persons with Disabilities 2021-2030 aims at enforcing their right to take part in all areas of life, just like everyone else.
- A proposal for a Directive on Pay Transparency will improve workers’ access to information on pay, raising awareness of discrimination and making it easier to enforce the right to equal pay.
Further key Commission initiatives for a strong Social Europe in 2021 will include, among others:
- a proposal for the European Child Guarantee;
- a new strategic framework for Occupational Safety and Health;
- launching a platform of collaboration against homelessness;
- a Communication on Decent Work Worldwide;
- a legislative initiative to improve the working conditions for people working through digital labour platforms; and
- an Action Plan for the Social Economy.
Further initiatives will be proposed until the end of the Commission mandate, such as a proposal for a Council Recommendation on minimum income in 2022 to effectively support and complement the policies of Member States, a review of the Quality Framework for Traineeships or an initiative on long-term care.
A full list of key Commission actions is available in Annex 1 of the European Pillar of Social Rights Action Plan.
What are the next steps?
The Action Plan presents the Commission’s contribution to the Porto Social Summit, organised by the Portuguese Presidency of the Council of the EU, in May 2021. The Summit will focus on strengthening Europe’s social dimension, and it will be an occasion to renew, at the highest political level, the commitment to implement the Social Pillar.
The Commission invites the European Council to endorse the new social and employment targets and calls on Member States to define their own national targets, as a contribution to this common endeavour.
Engagement of national, regional and local authorities, social partners and civil society is essential to ensure an effective implementation of the Pillar. The Commission therefore encourages coordination mechanisms at national level to ensure all relevant actors engage to implement the Pillar’s social rights and principles.
Equality in engineering crucial to achieving sustainable development
Regional disparities in engineering, especially in Africa, must be addressed if the world is to realize a common future where no one is left behind, according to a report issued on Wednesday by the UN Educational, Scientific and Cultural Organization (UNESCO) and partners.
The study highlights currently insufficient engineering capacities to achieve the Sustainable Development Goals (SDGs), the internationally agreed blueprint for a peaceful and prosperous planet, as well as the lack of diversity in the field.
“Engineering is one of the keys to the sustainable development of our societies, and to activate its full potential, the world needs more engineers and more equality”, said Audrey Azoulay, the UNESCO Director-General.
Pandemic accelerates action
The report, entitled Engineering for Sustainable Development: Delivering on the Sustainable Development Goals, was prepared in collaboration with the Chinese Academy of Engineering; the International Centre for Engineering Education (ICEE), based at Tsinghua University in Beijing; the World Federation of Engineering Organizations (WFEO); and other international engineering organizations.
It was released ahead of World Engineering Day for Sustainable Development, observed this Thursday, 4 March.
“The COVID-19 pandemic has accelerated the call for urgent action to deliver on the SDGs, while affirming the relevance of engineering to sustainable development”, the authors said.
Women ‘historically underrepresented’
The report underscores how equal opportunity for all is crucial to ensuring inclusivity and gender balance in a profession that has played an essential role in development and human well-being.
Engineering is critical to mitigating the impact of climate change and advancing the SDGs, especially in Africa and the small island developing States, UNESCO said.
Despite the profession’s importance, the UN agency noted that women have been “historically underrepresented” in engineering, making up only 10 to 20 per cent of workers.
Barriers hampering women include persistent gender stereotypes in the field and inadequate policies or educational environments that do not meet their needs and aspirations.
Transforming and innovating
The report showcases engineering innovations and actions from across the world that are contributing to meeting the SDGs. The 17 goals aim to end poverty, reduce inequality and spur economic growth, while also protecting the natural environment.
Examples mentioned include the increase in digital technology use during the pandemic, such as telemedicine for virtual treatment, while Artificial Intelligence, or “AI”, is helping to make water systems more adaptive and efficient.
The authors said “engineering itself needs to transform to become more innovative, inclusive, cooperative and responsible”, underlining the need for “a new paradigm” that bridges disciplines in order to address complex issues such as climate change, urbanization and preserving the health of oceans and forests.
Pay Transparency: Commission proposes measures to ensure equal pay for equal work
The European Commission has today presented a proposal on pay transparency to ensure that women and men in the EU get equal pay for equal work. A political priority of President von der Leyen, the proposal sets out pay transparency measures, such as pay information for job seekers, a right to know the pay levels for workers doing the same work, as well as gender pay gap reporting obligations for big companies. The proposal also strengthens the tools for workers to claim their rights and facilitates access to justice. Employers will not be allowed to ask job seekers for their pay history and they will have to provide pay related anonymised data upon employee request. Employees will also have the right to compensation for discrimination in pay.
New measures, which take into account the impact of COVID-19 pandemic on both, employers but also on women, who have been hit in particular hard, will increase awareness about pay conditions within the company and give more tools to employers and workers to address the pay discrimination at work. This will address a number of substantial factors contributing to the existing pay gap and is particularly relevant during COVID-19 pandemic, which is reinforcing gender inequalities and puts women into greater risk of poverty exposure.
President of the European Commission, Ursula von der Leyen, said: “Equal work deserves equal pay. And for equal pay, you need transparency. Women must know whether their employers treat them fairly. And when this is not the case, they must have the power to fight back and get what they deserve.”
Vice-President for Values and Transparency, Vera Jourová said: “It is high-time both women and men are empowered to claim their right. We want to empower job seekers and workers with tools to demand fair salary and to know and claim their rights. This is also why employers must become more transparent about their pay policies. No more double standards, no more excuses.”
Commissioner for Equality, Helena Dalli, said: “The pay transparency proposal is a major step toward the enforcement of the principle of equal pay for equal work or work of equal value between women and men. It will empower workers to enforce their right to equal pay and lead to an end to gender bias in pay. It will also allow for the detection, acknowledgment and addressing of an issue that we wanted to eradicate since the adoption of the Treaty of Rome in 1957. Women deserve due recognition, equal treatment and value for their work and the Commission is committed to ensuring that workplaces meet this objective.”
Pay transparency and better enforcement of equal pay
The legislative proposal focuses on two core elements of equal pay: measures to ensure pay transparency for workers and employers as well as better access to justice for victims of pay discrimination.
Pay transparency measures:
Pay transparency for job-seekers – Employers will have to provide information about the initial pay level or its range in the job vacancy notice or before the job interview. Employers will not be allowed to ask prospective workers about their pay history.
Right to information for employees – Workers will have the right to request information from their employer on their individual pay level and on the average pay levels, broken down by sex, for categories of workers doing the same work or work of equal value.
Reporting on gender pay gap – Employers with at least 250 employees must publish information on the pay gap between female and male workers in their organisation. For internal purposes, they should also provide information on the pay gap between female and male employees by categories of workers doing the same work or work of equal value.
Joint pay assessment – Where pay reporting reveals a gender pay gap of at least 5% and when the employer cannot justify the gap on objective gender neutral factors, employers will have to carry out a pay assessment, in cooperation with workers’ representatives.
Better access to justice for victims of pay discrimination:
Compensation for workers – workers who suffered gender pay discrimination can get compensation, including full recovery of back pay and related bonuses or payments in kind.
Burden of proof on employer – it will be by default for the employer, not the worker, to prove that there was no discrimination in relation to pay.
Sanctions to include fines – Member States should establish specific penalties for infringements of the equal pay rule, including a minimum level of fines.
Equality bodies and workers’ representatives may act in legal or administrative proceedings on behalf of workers as well as lead on collective claims on equal pay.
The proposal takes into account the current difficult situation of employers , in particular in private sector, and maintains proportionality of measures while providing flexibility for small and medium enterprises (SMEs) and encouraging Member States to use available resources for reporting of data. The annual costs of pay reporting for the employers are estimated to be from €379 to €890 or companies with 250+ employees.
Today’s proposal will now go to the European Parliament and the Council for approval. Once adopted, Member States will have two years to transpose the Directive into national law and communicate the relevant texts to the Commission. The Commission will carry out an evaluation of the proposed Directive after eight years.
The right to equal pay between women and men for equal work or work of equal value has been a founding principle of the European Union since the Treaty of Rome in 1957. The requirement to ensure equal pay is set out in Article 157 TFEU and in Directive on the principle of equal opportunities and equal treatment of men and women in matters of employment and occupation.
The European Commission adopted a Recommendation on strengthening the principle of equal pay between men and women through transparency in March 2014. Despite this, the effective implementation and enforcement of this principle in practice remains a major challenge in the European Union. The European Parliament and the Council have repeatedly called for action in this area. In June 2019, the Council called on the Commission to develop concrete measures to increase pay transparency.
President von der Leyen announced binding pay transparency measures as one of her political priorities for this Commission. This commitment was reaffirmed in the Gender Equality Strategy 2020-2025 and today the Commission is presenting a proposal to that end.
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