Brussels, 04/04/2013 (Agence Europe) - On Thursday 4 April, following a meeting with the Austrian Federal Chancellor, Werner Faymann, the President of the European Commission, José Manuel Barroso, declared that the increasing north-south divide in Europe was “a matter of serious concern”.
Barroso called for “enlightened” leadership at European and national levels so as to avoid citizens in one member state denigrating those in another, because every country goes through good and bad periods in their respective histories. According to Barroso, the way in which to tackle a situation that has been exacerbated by the debt crisis in the eurozone is to work together at European level in the spirit of solidarity and responsibility. In a reference to the economic inter-dependency of member states within the internal market, Barroso said that they needed more responsibility and seriousness with regard to budgetary and financial policies and that countries that were faring better should provide a helping hand in the true spirit of European solidarity because it is also, “in their own interest”.
Barroso reiterated the fact that the Commission would be presenting a legislative proposal “by the summer” to introduce a single banking restructuring mechanism, together with the creation of a specific European authority and fund backed by industry. He underlined the fact that “we are working full steam to avoid citizens having to shoulder the consequences of a financial or debt crisis in the future”. He said he hoped that the work undertaken to achieve banking union and enhancing economic and monetary union would prevent crises such as those affecting Cyprus reoccurring.
Youth guarantee. Faymann outlined the main parameters of Austrian policy for tackling youth unemployment, which is providing a reference point in Europe (see EUROPE 10818). According to the Chancellor, this good practice could provide an example to other member states suffering from this serious problem. Barroso said that “your experience deserves great attention from all over Europe”.
Barroso welcomed member states' approval of the youth guarantee of €6 billion for tackling youth unemployment. He hopes that this initiative will begin in 2014. In response to a question from the press, Faymann explained that the €6 billion envelope was “a good start” but admitted that it was not sufficient. He said that if the economy was not working well enough and if there was not enough growth or job creation, it will be difficult to tackle youth unemployment. He therefore believes it is necessary to invest in all the different factors for growth, which will provide the foundations for our battle against youth unemployment. He thinks that this also should include common debt management and increased flexibility on the funds that have not been used up to tackle youth unemployment. The Commission would have liked to have had a more ambitious budget, pointed out Barroso, but EU countries had been unable to agree on a higher level of lending. Barroso also underlined the fact that the Commission had reoriented those of its structural funds that had not been used up, to create initiatives in this domain in countries where youth unemployment rates are particularly high. The Commission is also counting on greater budgetary flexibility in the next financial framework (2014-2020) so that they can have more funds for fighting youth unemployment. (MB/LC/transl.fl)