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BackThis week, the European Commission presented its long-awaited Youth Employment Package. An employment and training guarantee for all young people under 25 shall be implemented Europe-wide. Austria served as a good example. The proposal of the Commission goes in the right direction. However, so far no one has mentioned how these measures are to be financed. Calculations clearly show: the implementation of a Europe-wide Youth Guarantee would cost 15 billion Euros. The costs incurred by Europe’s Member States due to youth unemployment amount to more than 150 billion Euros p.a. writes the EU Commission. Hence, everybody should know what has to be done!
Every fifth European under 25 is unable to find work in Europe. Not surprisingly there are constant warnings of a “lost generation”. This dramatic situation did not go unnoticed by the European Commission. Commissioner Andor confirmed at the presentation of the Youth Employment Package that young people were the ones who suffered most from the consequences of the crisis. Compared to adults over 25, younger people are far more often without a job, income or trading. The recent study by the European Foundation for the Improvement of Living and Working Conditions confirms that unemployed people cost individual Member States more than targeted investments in youth employment policies. That is why it was the right time now to introduce a Youth Guarantee, said the Commissioner.
The cornerstones of the Youth Employment Package
The Youth Package is based on four cornerstones: quality standards for internships, promoting mobility, a European Youth Guarantee and strengthening dual training systems, whereby the social partners are to be involved in developing the quality standards for internships. In order to reduce the immense youth unemployment rates, young people shall become more mobile. Apart from that, internships and vocational training shall take place across regional and national borders. Austria is one of the European Member States that serves as an example with regard to dual vocational training and the Youth Guarantee. A similar model shall be implemented across Europe.
Youth Guarantee following Austria’s example
Compared to other European Member States, Austria’s youth unemployment rate is relatively low. Many attribute this to the employment and training guarantee, which was introduced in 2008 within the scope of the Youth Employment Package. Inter-company vocational training is provided to young people who are unable to find an apprenticeship position in a company. The Austrian State thereby compensates part of the 66,000 apprenticeship positions which were lost in the country since 1980. The European Commission also thinks along these lines. All young people up to 25 shall be guaranteed either training or employment after four months of leaving formal education, training or employment. How exactly these measures will look like shall remain at the discretion of the Member States; after all, the Youth Package is only a recommendation. Countries that have to tackle a very high unemployment rate and mounting public debt, should increasingly focus on internships and the mobility of their young people, said Commissioner Andor.
Everyone is for young people, but who is going to pay for them?
Most members of the European Parliament celebrated the Youth Package of the European Commission, which was introduced on Wednesday. Social Democrats and Greens congratulated Commissioner Andor on his project. The Conservative faction of the European Parliament also welcomed the new package of measurements for young people. At the same time, they were “not all that happy” with the recommendation of a Europe-wide Youth Guarantee. The structural funds should remain “untouched” and should not be used for a Youth Guarantee. Hence, the Conservatives approached the delicate subject of financing the project of Commissioner Andor. In the documents of the European Commission one is unable to find a Europe-wide estimate of the costs of introducing a Youth Guarantee. Only for the Eurozone costs of 21 billion Euros have been estimated. However, the Austrian Social Ministry arrives at a different result. According to their estimate the “overall costs for an EU youth programme would be about 15 billion Euros”. Compared to other expenditure of the EU, this is a very small amount. Not to forget the costs of youth unemployment, which the EU Commission estimates as more than 150 billion Euros p.a. or ca. 1.2 percent of the economic output in the EU. It would therefore be important to have a separate European Fund to finance Youth Guarantee measures. One thing is clear: without adequate and secure financial resources, youth promotion measures will remain no more than a false promise.
Further information:
Youth Employment Package
Press statement Commission proposes package of measures
Memo: Youth employment: Commission proposes package of measures – frequently asked questions
The cornerstones of the Youth Employment Package
The Youth Package is based on four cornerstones: quality standards for internships, promoting mobility, a European Youth Guarantee and strengthening dual training systems, whereby the social partners are to be involved in developing the quality standards for internships. In order to reduce the immense youth unemployment rates, young people shall become more mobile. Apart from that, internships and vocational training shall take place across regional and national borders. Austria is one of the European Member States that serves as an example with regard to dual vocational training and the Youth Guarantee. A similar model shall be implemented across Europe.
Youth Guarantee following Austria’s example
Compared to other European Member States, Austria’s youth unemployment rate is relatively low. Many attribute this to the employment and training guarantee, which was introduced in 2008 within the scope of the Youth Employment Package. Inter-company vocational training is provided to young people who are unable to find an apprenticeship position in a company. The Austrian State thereby compensates part of the 66,000 apprenticeship positions which were lost in the country since 1980. The European Commission also thinks along these lines. All young people up to 25 shall be guaranteed either training or employment after four months of leaving formal education, training or employment. How exactly these measures will look like shall remain at the discretion of the Member States; after all, the Youth Package is only a recommendation. Countries that have to tackle a very high unemployment rate and mounting public debt, should increasingly focus on internships and the mobility of their young people, said Commissioner Andor.
Everyone is for young people, but who is going to pay for them?
Most members of the European Parliament celebrated the Youth Package of the European Commission, which was introduced on Wednesday. Social Democrats and Greens congratulated Commissioner Andor on his project. The Conservative faction of the European Parliament also welcomed the new package of measurements for young people. At the same time, they were “not all that happy” with the recommendation of a Europe-wide Youth Guarantee. The structural funds should remain “untouched” and should not be used for a Youth Guarantee. Hence, the Conservatives approached the delicate subject of financing the project of Commissioner Andor. In the documents of the European Commission one is unable to find a Europe-wide estimate of the costs of introducing a Youth Guarantee. Only for the Eurozone costs of 21 billion Euros have been estimated. However, the Austrian Social Ministry arrives at a different result. According to their estimate the “overall costs for an EU youth programme would be about 15 billion Euros”. Compared to other expenditure of the EU, this is a very small amount. Not to forget the costs of youth unemployment, which the EU Commission estimates as more than 150 billion Euros p.a. or ca. 1.2 percent of the economic output in the EU. It would therefore be important to have a separate European Fund to finance Youth Guarantee measures. One thing is clear: without adequate and secure financial resources, youth promotion measures will remain no more than a false promise.
Further information:
Youth Employment Package
Press statement Commission proposes package of measures
Memo: Youth employment: Commission proposes package of measures – frequently asked questions