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BackAn informal meeting of EU Ministers for Employment and Social Affairs took place last week to discuss among other solutions to combat youth unemployment. Due to the financial and economic crisis, the situation of young people in Europe has tremendously worsened, and youth unemployment in the euro area has risen to 22.1 %. Spain even has an unemployment rate of over 50 % among the under-25s. Many regard a youth guarantee based on the Austrian model as a way out of the dilemma. However, there are only a few supporters of this idea and as usual, Great Britain is against the idea in any case.
Uniform EU-wide youth guarantee hard to imagine
It is little surprising that the call for an EU-wide youth guarantee has not been met with unanimous approval at the meeting of EU Ministers for Employment and Social Affairs. Even though some Member States have already introduced a youth guarantee - better known in Austria as training and employment guarantee - and are happy with the results, it does not seem as if it would become reality throughout the EU any time soon. However, the EU Commission is not be discouraged and will present a Council Proposal on the European youth guarantee at the end of the year. The European Parliament too is a supporter of an EU-wide initiative. Opponents, such as Great Britain and Sweden always maintain that it is exclusively within the competence of individual Member States to introduce such measures. In EU jargon, this is called claiming the “principle of subsidiarity”, according to which the EU should only assume responsibilities, which the States are unable to perform satisfactorily at the various levels of decision making. It remains to be seen who will gain the upper hand - the supporters or the opponents.
Funds to combat unemployment must not be cut
The negotiations on the future EU budget are currently under way and must not result in cuts introduced in areas, which are so important in the fight against unemployment. Hence, the European Social Fund (ESF) must be exempt from cuts. On the contrary, the current situation must be seen as an opportunity to point the way to a social and unified Europe. Any reduction of ESF funds, as requested by some Member States would result in Austria being affected disproportionately. This is absolutely unacceptable. If cuts to the EU budget have to be made, they should, for example, be aimed at the EU Agricultural Fund, a sector, which is becoming less important. Those freed up resources could be used for labour market measures. However, what is most urgently needed to continue tackling youth unemployment in future is setting up a separate EU Fund resp. a mandatory key area within the ESF. An EU-wide youth guarantee will only become reality if the necessary resources are being made available at EU level. The EU Commission is now taking a first step by preparing a € 4 million pilot project to implement the youth guarantee. A drop in the ocean, but a start nevertheless.
It is little surprising that the call for an EU-wide youth guarantee has not been met with unanimous approval at the meeting of EU Ministers for Employment and Social Affairs. Even though some Member States have already introduced a youth guarantee - better known in Austria as training and employment guarantee - and are happy with the results, it does not seem as if it would become reality throughout the EU any time soon. However, the EU Commission is not be discouraged and will present a Council Proposal on the European youth guarantee at the end of the year. The European Parliament too is a supporter of an EU-wide initiative. Opponents, such as Great Britain and Sweden always maintain that it is exclusively within the competence of individual Member States to introduce such measures. In EU jargon, this is called claiming the “principle of subsidiarity”, according to which the EU should only assume responsibilities, which the States are unable to perform satisfactorily at the various levels of decision making. It remains to be seen who will gain the upper hand - the supporters or the opponents.
Funds to combat unemployment must not be cut
The negotiations on the future EU budget are currently under way and must not result in cuts introduced in areas, which are so important in the fight against unemployment. Hence, the European Social Fund (ESF) must be exempt from cuts. On the contrary, the current situation must be seen as an opportunity to point the way to a social and unified Europe. Any reduction of ESF funds, as requested by some Member States would result in Austria being affected disproportionately. This is absolutely unacceptable. If cuts to the EU budget have to be made, they should, for example, be aimed at the EU Agricultural Fund, a sector, which is becoming less important. Those freed up resources could be used for labour market measures. However, what is most urgently needed to continue tackling youth unemployment in future is setting up a separate EU Fund resp. a mandatory key area within the ESF. An EU-wide youth guarantee will only become reality if the necessary resources are being made available at EU level. The EU Commission is now taking a first step by preparing a € 4 million pilot project to implement the youth guarantee. A drop in the ocean, but a start nevertheless.