Brussels, 24/05/2013 (Agence Europe) - A tiny touch of Keynesianism is beginning to appear in a European policy that is often reproached for being austere - the Franco-German duo, which is in a state of doctrinal reconciliation, is soon to propose a “New Deal for Europe”. Providing an answer to the scourge of youth unemployment that is now out of all control, while putting a positive spin on the EU's image - that is the double goal that Paris and Berlin have set themselves.
When debates at the European Council on Wednesday 22 May were reaching an end in Brussels, the German minister for labour, Ursula von der Leyen, and her colleague for finance, Wolfgang Schäuble, presented their next initiative in Berlin - born of a joint inspiration with their French counterparts - without providing an answer for resolving European youth unemployment. It will be called a “New Deal for Europe”. Although the reference to the approach chosen by the American president, Franklin Roosevelt, when faced by the Great Depression of the 1930s is more or less assumed, there is nonetheless a great difference when it comes to substance. Far from being an interventionist policy, which would mean a temporary rise in the public deficit, this new initiative takes up the main lines of measures already promised by the European Commission.
The core issue is evident - what is to be done with young people today? It is no longer simply a question of natural intergenerational mistrust but rather of a growing concern on the part of European leaders. Although, since the crisis began in 2008, the answer came quite naturally - namely that each and everyone had their own miracle recipe - with over 5.6 million young people unemployed today, the member states, especially in the south of Europe, feel they are, individually, surpassed and powerless. This is all the more the case as the situation, which comprises the risk of a “lost generation”, does not seem to have a culmination in sight.
The European discourse has long spoken of a simple equation. Economic recovery is necessary - in relatively little time, this would ensure the fall in the level of unemployment generally including that of young people. By presenting its “youth employment package” in December 2012 (see EUROPE 10745), the Commission brought in a new variable, however. It is necessary to take account of “structural failings” which exist on the labour markets in a large number of member states and which are an obstacle to the integration of young people on the labour market.
By promoting the youth guarantee mechanism and a series of other measures, the Commission has thus taken inspiration from the Finnish and Austrian models for finding an answer to this problem. The strategy is gradually beginning to be adopted by European governments and the anchoring of this strategy in the Franco-German proposals is easily detected. The doctrinal rapprochement between France and Germany, especially on questions affecting the labour market, was, moreover, a little clearer during the 150-year celebrations of the German Social Democrat Party in Leipzig. French President François Hollande hailed the German model as “realistic” and being born of “bold” reforms.
After the glitter, comes the action. Hollande announced to the press after the last European summit that, during the next two months, Paris and Berlin will organise a series of meetings with a view to providing a European response for those young people who are finding it difficult to find employment. On 28 May in Paris, they will thus present a “New Deal for Europe” which will be founded on three elements, von der Leyen states, describing them as: - easier access to credit for business; - the setting up of a European system of apprenticeship exchanges; - and aid to young people to help them start up their own business. The public-private partnership principles will be one of the essential components of the initiative, coupled with recourse to structural funds and intervention by the European Investment Bank (EIB).
Another meeting will be held on 30 May, between Hollande and German Chancellor Angela Merkel, in order to provide a joint contribution to the next European Council at the end of June, the central theme of which will be the project for an Economic and Monetary Union (EMU), its social dimension and unemployment. Finally, on 3 July, all EU labour and employment ministers are to meet under the auspices of Paris and Berlin to put forward joint proposals and to draw, from all European experience, the best solutions for reducing youth unemployment, the French president said.
In a caricatural manner, the EU would like to become like Austria, where only 7.6% of young people are unemployed. However, the Austrians at the same time warn that this is not possible, at least not completely. Invited by the European Economic and Social Committee (EESC) on Thursday 23 May, the main social partners in Austria praised the success of the Austrian model which is based on vocational training schools, on apprenticeship and on training within companies. It is possible to take inspiration from this but not to copy it as it is the fruit of a long tradition of social dialogue. (JK/transl.jl)