Youth Guarantees and Youth Unemployment

Youth unemployment is a serious problem across recession-hit Europe. In each country there is increasing concern that the crisis is producing a lost generation denied the opportunity to get into the workforce, and of a brain drain as people educated and trained at home cannot find that economic opportunity once promised to them.

Last weekend youth unemployment was the topic of a Relaunching Europe conference organised by UK Labour and the Socialists and Democrats group in the European Parliament. I went along to the conference, and I had the opportunity to talk to Hannes Swoboda, leader of the S&D group, and Glenis Willmott, the leader of the European Parliamentary Labour Party.


Youth Guarantees, EU budget and joint campaigning

From the Party of European Socialists Conference in September, the Youth Guarantee was clearly the centrepiece of the PES's policy on youth unemployment: €10 billion Euro from the EU budget to help guarantee jobs and training for young people. But how would that work, and what would the money be spent on?

Hannes pointed to his own experience with Youth Guarantees in Vienna, where a collaboration between local government, unions and business could link unemployed young people with opportunities in work and training if they had been unemployed for a certain amount of time after leaving education. The idea for Member State youth guarantees supported by EU money (the €10 billion would come from the European Structural Funds), with the EU facilitating the exchange of expertise from countries like Austria and Finland who already have guarantees in place. Funding for education and European programmes such as Erasmus was also highlighted by Hannes, who said that the increasing centrality of mobility to the workforce underlined the importance of the programme.

With €10 billion the proposed price tag, the EU budget would clearly be an issue. Labour is behind the youth guarantee with its proposed jobs fund as its version of the national guarantee, but Glenis had to defend Labour's EU budget position. She said that Labour's aim is to shift the focus from CAP spending towards investment and guarantees like the youth guarantee. However, with CAP, rebates and cohesion backed by national vetoes and with the European Parliament as the sole defender of investment programmes under the budget (some of which are already under threat), I can't see how Labour's rationale for a real terms cut in the EU budget will achieve this. Shifting money in the European Structural Funds to a new project was always going to be difficult in itself, but winning EU funding for youth guarantees in a climate of budget cuts is going to be an uphill struggle. Glenis and Hannes made the argument that the Member States are hypocritical when it comes to wasteful spending, with offices for the European Patent system shared between Britain, France and Germany. I agree, but sadly this doesn't change the voting situation.

So given these divisions would there be much of a pan-European election campaign for the PES and Labour in 2014? What would the effect of a PES presidental candidate for the Commission be and will there be a common manifesto? Glenis reflected on the last campaign, saying that the last common manifesto didn't get much press attention, and that the lack of PES candidate for the Commission presidency was a handicap when it came to electing the Commission - "why were we [Labour] supporting a conservative candidate [Barroso]?". She seemed optimistic about PES cohesion and the manifesto for the next campaign, given the anti-austerity stance of the party as a whole (Labour agrees with "about 80%" of S&D positions). For Hannes, while the PES will be putting forward a candidate, no candidate will be able to have name recognition and appeal across all Member States.

I understand the caution over the presidential candidate - the lack of appeal for a single candidate across 27 or 28 Member States is part of why I favour a parliamentary Europe - but with the primaries being held over winter 2013, and the caution in the air over how to use a candidate in the election, it feels as if there's a real possibility that the PES could not make the most of an electoral asset out of fear. The pro-European left desperately wants to make it clear that current European policy is the fault of the Coservatives in power, but it will hard to do that at election time if they're not bold about putting up an alternative vision with alternative candidates.

Youth Unemployment, Europe and Campaigning: Relaunching Europe Impressions

On Saturday I was at the Relaunching Europe event in Nottingham on Youth Unemployment, where I got to meet Hannes Swoboda, S&D Leader, and Glenis Willmott, leader of the European Parliamentary Labour Party, who organised the event. It was an interesting conference, with debate jumping from local to national to European level, as well as debate on Labour as a party.

Youth unemployment is unfortunately a very live issue at the moment, and there were several deeply personal stories from people affected by unemployment, from the Oxford graduate unable to find a steady job 2 years after graduating (and with many friends in similar positions), to an unemployed Labour councillor who had been advised by her JobCentre to quit the council to help her job prospects. The big idea of youth guarantees (more of which tomorrow) would lend some EU help to reducing youth unemployment, but the very personal nature of unemployment means that any help must also have a strongly local character.

Employment and social protection are areas where the EU has very little influence and not much financial firepower. Attempts to help workers retrain and find new work under the Globalisation Fund, which is under severe budgetary pressure, shows how difficult it is for the EU to have an impact without the money necessary to act. Some of what the S&D can do is working on changing the single market rules to help employment - Glenis Willmott highlighted work on the new Public Procurement Directive to strengthen social and environmental criteria for public authorities when placing orders with businesses. The more abstract nature of EU work was reflected in the debates, however, as most of questions and panel discussions centred around making Labour more campaign-orientated and focusing on what could be done in universities and locally by counsels to boost employment.

All of this is important, but little explicit link was made between these local campaigns - or local party members - and engagement with the European party or European campaigns. Is there support for Labour party members not only to launch local campaigns, but also to try and launch grassroots European campaigns? What about the Youth Guarantee - there is a website dedicated to the Youth Guarantee, but it is well known locally in the party and are there ways for the local party to get involved in the campaign? Also, can Labour counsels get involved in the campaign and link up with local authorities in Austria and Finland, where such guarantees already exist to see what they can already do without EU funding (or just with PES/S&D support)?

There were a lot of interesting debates around unemployment on Saturday, but it still felt like there was an invisible wall between the discussions on action at a local and national level, and on action at a European level. The raw material for linking them together, getting local party members involved in European projects, and bringing Europe closer to citizens seems to be there, but they need to be drawn together. If Youth Guarantees are about bringing EU policy, national policy, business and unions together to enable young people to find their way into the workforce, then perhaps there also needs to be a stronger party version of pathways into participation on European campaigns and policy.

Relaunching Europe: Nottingham Event Tomorrow

Tomorrow I'll be at the Relaunching Europe event on Youth Unemployment in Nottingham, to see the Relaunching Europe project of the Socialists and Democrats Group in practice.

I've previously posted on the PES's Congress here (and the S&D Activity Report) and on Relaunching Europe here, with an article on questions for Relaunching Europe here.

I've also written about UK Labour and the EU earlier this week.

If there's anything you want me to look out for, or if you've any questions or arguments on youth unemployment, I'd be interested to read them (either comments below or you can Tweet me @EuropeanCitizen), and I'll try to Tweet and Blog about the event on Saturday/Monday - internet willing.

And let me know if you'll be at the event too!

A few questions for Relaunching Europe

The S&D Group have set up their Relaunching Europe initiative, asking for opinions and questions about Europe and their policies, so I thought I'd ask a few questions.

1. It's a good idea for Europarties and the groups in the European Parliament to reach out to citizens and include them in the European debate. Will there be many Relaunching Europe events outside of Brussels?

2. How should tax evasion and avoidance be tackled at the European level? Barroso mentioned saving tax agreements in his State of the Union speech: are these effective and would the S&D Group propose any other measures?

3. If there was a Social Compact inserted into the EU Treaties, what would it do? Would it oblige Member States to maintain a certain level of social protection or would it create an EU support mechanism for social protection?

4. You argue that Troikas undermine democracy, so it seems that the current rules for the Eurozone are unjust. If the S&D and PES win the next election, will you push for repealing or reforming the 6-Pack (and 2-Pack if it's passed) of legislation and propose changes if you win the next election (as your candidate would become Commission President)?

5. Hannes Swoboda has mentioned the creation of a class of working poor in Germany. Would the S&D push for a European Minimum Wage (or a band of minimum wages to take into account the different economies)? (Or what other measures would you propose?).

6. It's great that the PES has committed itself to proposing a candidate for the Commission Presidency at the next election. Do you think the Commission should reflect the European Parliament better - ie. reflect the make up of any coalition or majority after the European elections?

7. There seem to be problems with finding projects for the regional funds to fund in crisis-hit Member States. Should the regional funds be reformed to also support national social spending in crisis situations to help the country reform?

8. Hannes Swoboda also said that we need an adequate EU budget to promote growth. How much should the EU budget be increased by, and what should the money be spent on?

Relaunching Europe

The Socialists and Democrats Group in the European Parliament have launched their Relaunching Europe website. The initiative is about creating an alternative to the current policies and direction of Europe, and it invites people to submits ideas and questions. Hannes Swoboda, the leader of the S&D group, was in Hamburg recently for a talk that produced this video for the launch of the site:





There will be a debate in Brussels for people to debate the direction of Europe on the 3rd of October, but hopefully there will be events outside of Brussels to increase accessability.


S&D Ideas

It's a listening and communication exercise - which suggests that there won't be many new announcments at the PES Congress this month - but the group is outlining some ideas on the website that add a bit more detail to Swoboda's idea of a Social Compact that he called for during the State of the Union speech last week. Here's a list of some of the ideas:

• The current Troikas should be expanded to include advise from the International Labour Organisation and similar organisations so that expertise and concern for employment and growth is reflected in policy.
•  They demand a commitment on social cohesion in the Van Rompuy report and a pact for social cohesion within the treaties.
• The financial markets must be better regulated and the rating agencies must do their job in a more transparent manner. We have to control high-frequency trading.
• We have to ensure that tax evasion and avoidance are tackled.
• We need stronger private and public investment to create employment. But Europe is seeing a reduction in public investment, as opposed to the policies in the US and Japan. And there is money for investment. Tax evasion costs €1 trillion a year in Europe. Just one quarter of this money could boost public investment by 40%.
• We need a financial transaction tax.
• Europe must launch an efficient union for banking supervision that reaches beyond the eurozone, accompanied by comprehensive banking reform across Europe.
• We need an adequate European budget that stimulates growth.

These ideas need to be further fleshed out: what would a Social Compact contain? The idea of a Social Compact to balance out the Fiscal one is a nice idea, but I'm not sure what it would mean in practice: should Member States commit to a certain level of social protection (and how would this fit in with the Fiscal Compact - would European solidarity bridge some social spending gaps while there's fiscal reforms, or would it just moderate the timescale and austerity of the current Troika system)? More details on the better regulation of banks and financial markets would be welcome: what changes to the recent legislation are necessary?

There are also some more broader views and principles:

"We must not only solve the economic and social crises but also the democratic one. In several countries, notably Germany, parliamentary participation and national sovereignty are at the heart of the debate. But what is overlooked is that it is not the EU that threatens sovereignty, but the financial markets and the rating agencies which dictate interest rates and spreads.

 

But we are also seeing increasing de-democratisation. The European Council is increasingly taking more and more decisions, including on the EU budget. But who are the Council and the President of the Council accountable to? Neither the national parliaments nor the European Parliament. The Troikas too act in a democratic vacuum with no accountability.

 

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[T]his means strengthening parliamentary participation and the European Parliament and the national parliaments must co-operate closely.

 

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 Referendums can strengthen democracy in Europe if they are held at European, not just national level. We must have the courage to speak out clearly against growing nationalism. We have to organise referendums in a way that does not allow the outcomes in individual countries to dominate the others and undermine the European project."

 

I like the connection with the working poor in Germany; the S&D Group (and PES) need to have a broad message of social justice and how it can be delivered through the EU for all citizens, rather than  a simplistci dicotomy of strong versus weak Member States. The commitment to better parliamentary democracy and cooperation and to European referendums is very interesting, but really should be fleashed out.

How far are these ideas just Swoboda's and not those of the group or the PES Europarty? It all depends on if the PES come up with a good manifesto with clear policy commitments come the 2014 election - that will be the real test. But Swoboda took pains to refer to the agreement in his group for these ideas during the State of the Union speech. What difference this initiative will make depends on what use people make by contributing and what use the S&D make of them.

They invite people to ask questions on Facebook or via Twitter.