Brussels, 31/01/2012 (Agence Europe) - On Monday 30 January, EU heads of state and government adopted a welcome statement, but one containing no surprises, on immediate ways to boost growth alongside budgetary consolidation measures. Three priorities were identified: jobs, particularly for young people; the single market; and competitiveness, especially for SMEs. Member states looked at how their national policies might be encouraged at European level, including through reallocation of the €82 billion in structural funding still to be used by the end of 2013. They set out in a statement (not signed by Sweden given parliamentary reservations on employment policies) the tools they felt most appropriate “to modernise our economies”. Some measures will be applied by June 2012, thereby bringing greater heft to a statement short on legally binding figures and new ideas.
According to German Chancellor Angela Merkel, the originality lies in the fact that the countries of the EU are prepared to accept that unused structural funds should not be paid back into national budgets and that member states are free to use these funds for other purposes to encourage growth and jobs. She added that “we came to the conclusion that it is always possible to do better for growth and employment opportunities”. This is a long-standing call from the British government, David Cameron pointed out, arguing that this must not just be on the agenda of this summit, but that growth and jobs must be spoken about all the time and the same level of ambition shown. Italy was singing from the same hymn sheet on this point, Prime Minister Mario Monti being particularly satisfied: Italian suggestions on growth and jobs were largely incorporated in the conclusions - conclusions which do not simply contain recommendations but also precise targets and lines of action. What was achieved on getting young people into work was hailed by Belgian Prime Minister Elio De Rupo who regretted that “unemployment in itself is a disaster but for young people it is far more so. It destroys the hope of a whole generation”.
Call from Barroso. The statement picks up a number of ideas expressed at the European Council by Commission President José Manuel Barroso: “Our old growth model is broken. Europe has to take a new path”. Working on this growth will take Europe out of the “vicious circles” and help it “win back the confidence of the financial markets, the business world, consumers and citizens”. He again highlighted the 23 million unemployed in Europe, 22% of whom are young Europeans.
Youth employment, Sweden pulls out. 26 heads of state and government (all except Sweden's) acknowledge that nationally stress should be laid on this section of the population. Sweden did not join in. The reason it gave relates to the system of consultation on labour matters which prevails over state intervention in Sweden. The European Council wants young people to have their first experience of work within the first few months of leaving school (the Commission suggests four months), whether through the offer of a job, an apprenticeship or training or continued training. Training could even be built into school curricula. Still at national level, efforts should focus on stopping young people dropping out of school early and on cross-border employment, for example through promoting the EURES portal which is devoted to this issue at Community level. Cross-border jobs could be boosted by a review of European rules on recognition of professional qualifications (the European professional card and the European skills passport). EU heads of state and government, above all, expect the Union to allow reallocation of the funding available to support the integration of young people into working life. The European Social Fund, which still has €22 billion available in the current planning period, to help support plans for young entrepreneurs and social entrepreneurs.
Sorting out SMEs: urgent measures by June. José Manuel Barroso drew the picture of 23 million European SMEs which, if they all took on just one unemployed person each, could absorb the 23 million Europeans looking for work. This may be somewhat idyllic but the coincidence in the figures nonetheless points to the fact that small businesses are key when it comes to contributing to growth and employment. Barroso told the EU leaders that the 23 million SMEs account for two thirds of all jobs in the private sector. They have created 80% of new jobs in the EU over the past five years. But many SMEs are struggling, and more must be done for them. EU leaders are counting on a series of measures to be set in place as a matter of urgency by June, while reallocating structural funds that have not been allocated (€82 billion over the next two years), and using them more rapidly in projects focusing on growth and job creation. The EU27 hope, by June, for Eurobond possibilities to be examined more closely as well as European Investment Bank (EIB) support for SMEs and for infrastructures via a leveraging effect. Finally, EU countries want to ensure broader access to venture capital in the EU (via the European passport), to promote micro-financing for micro-businesses (via Progress), and also to alleviate unwarranted regulatory and administrative charges.
Single Market goes hand in hand with digital economy. The end of June is also the line on the horizon for a whole series of proposals relating to the single market. The EU27 are resolved to speed up the analysis or the application of elements that can contribute to growth, betting considerable odds on the digital economy. A final agreement must be reached on the last outstanding issue relating to patents measures, and to standardisation, energy efficiency and the simplification of accounting obligations and rules on public procurement (the last at the end of the year), the presentation of a new electronic proposal signature, and an agreement on rules for online settlement of litigation and roaming. Without establishing deadlines, the Council also took a stance in favour of rapidly implementing the action plan on electronic trade, modernisation of the European regime for copyright protection (while effectively countering piracy), and progress on fiscal policy and harmful practice, in the context of the Euro Plus pact. It was in favour of lifting trade barriers with third countries.
The statement points out that it is essential to rapidly and fully implement at national level the decisions already reached in order to gain the best advantage of single market potential. In particular, EU legislation in fields such as services and the single energy market must be speedily and fully implemented. As of June, the Council will take stock of what has been accomplished regarding the single market. The Commission will also present ways to improve the implementation of legislation, an exercise on progress accomplished that should take place each year, as requested by Italy. (MD/transl.rt/jl)