A sterilised EMU may lead to a break up of Eurozone

A Meeting of the Chairpersons of Social Affairs, Labour Committees and Employment legislators responsible to implement the Europe 2020 Strategy, was held at the Lithuanian Seimas (Parliament). The participants discussed issues concerning youth employment. Keynote speaker was László Andor, member of the European Commission responsible for Employment, Social Affairs and Inclusion. (Lithuanian Presidency photographic service, 12 November 2013).

A Meeting of the Chairpersons of Social Affairs, Labour Committees and Employment legislators responsible to implement the Europe 2020 Strategy, was held at the Lithuanian Seimas (Parliament). The participants discussed issues concerning youth employment. Keynote speaker was László Andor, member of the European Commission responsible for Employment, Social Affairs and Inclusion. (Lithuanian Presidency photographic service, 12 November 2013).

Ahead of the ‘The European Employment Forum’ which takes place in Brussels today and tomorrow and according to its organisers is ‘the annual networking forum for everyone involved in employment and enterprise within the EU and beyond’, there was an increased activity over the burning issue of jobs and unemployment in Europe. To this effect, the Lithuanian Presidency held a meeting of Chairpersons of Social Affairs and Labour Committees of various European parliaments in Vilnius. The target was to discuss the implementation of the Europe 2020 Strategy.

Keynote speaker in this Vilnius conference was László Andor, the European Commissioner responsible for Employment, Social Affairs and Inclusion. He delivered a long speech describing the problem and reviewing the relevant employment policies. Despite the fact that his analysis of the appalling reality was almost perfect, when it came to the remedies he only had the Youth Guarantee initiative to present, as a specific measure that would be used to ensure opportunities for young people under 25 to receive job offers.

Guarantee for whom?

Under this Youth Guarantee Scheme, the 28 EU leaders during their Summit of 28 June have committed to ensure that within four months of becoming unemployed or leaving formal education, “all young people up to the age of 25 receive a high-quality offer of a job, an apprenticeship or a traineeship”. Currently, 23.5% of Europeans under the age of 25 (approximately 7.5 million) across the EU are out of work.

Andor failed though, to say that the European Economic and Social Committee recently revealed that four months after the announcement of this Youth Guarantee and none of the 7.5 million unemployed youths under 25 in the EU 28 countries has yet received any offer of a job, an apprenticeship or a traineeship. In view of that, the EESC warned that the Member States have still not proposed anything specific and that there is a great risk this whole affair remains “a merely declaratory policy”.

Can Eurozone hold?

As noted above, despite Andor’s inability to offer any tangible prospect to the unemployed in the form of effective policies, while analysing the problem he reached the heart. What he said yesterday in Vilnius is an inspired analysis of the current conjuncture in the Eurozone.

He stressed that, “a sustainable recovery can only come if the strategy includes major steps towards a new model of the monetary union. Unfortunately, in today’s European Monetary Union with a Fiscal Compact but without trans-national fiscal transfers, the fiscal policy framework works pro-cyclically and does not facilitate adjustment to asymmetric shocks. The only remaining adjustment mechanisms are loss of population through emigration, and internal devaluation, with all its adverse effects on aggregate demand, human capital and social cohesion. If these existing ways to restore competitiveness prove more painful than currency devaluation, we cannot assume that the commitment to the single currency can last forever”.

What László said there is in the mind of every Greek, Italian, Spanish and Portuguese wage earner. True, those countries are not ready to accept whatever economic, social and political cost in order to remain in the euro area. The next European elections will probably prove that. One cannot imagine how many extremists and harlequins will be elected in the next European Parliament. The rare deniers of the European project, currently elected in the EU Parliament, will look like college boys compared to those who are coming.

The Commission and the Council would have a very big problem cooperating with them. The quality of the political life in the worst hit countries is deteriorating fast. What happens in the Parliaments of Italy and Greece was unthinkable some years ago. Last week, the Greek government in Parliament faced a no confidence motion by the major opposition. The language and the arguments used by both sides were reminiscent of the worst moments in Greek history.

Euro elections will show the problem

The closer the May 2014 European elections come, the louder will be the toll of the danger bells sounding the alarm in Berlin and Paris. Unfortunately, the problem is that it may already be too late for the Eurozone to change course. If the Germans go on arguing in support of a sterile European Monetary Union, without strong pillars of fiscal transnational transfers and a partial mutualisation of the financial obligations, the days, months, probably years of the Eurozone are numbered.

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

MWC 2016 LIVE: Industry looks to reduce mobile gender gap

UN Security Council condemns Taliban offensive as a blow against ‘sustainable peace’

Schengen is losing ground fast revealing Europe’s clear inability to deal with migration crisis

Markets can accelerate the transition to a low-carbon economy

This plastic-free bag dissolves in water

Humanitarian crisis in Yemen remains the worst in the world, warns UN

‘Jerusalem is not for sale’ Palestinian President Abbas tells world leaders at UN Assembly

France asks help from Germany but it will not be for free

Merkel refuses to consider the North-South schism of Eurozone

The Banking Union may lead to a Germanic Europe

This wall of shoes is for the women killed by domestic violence

Reinforcing EU border security: Visa-exempt travelers will be pre-screened

Taxation: Commission refers Hungary to the Court for failing to apply the minimum EU excise duty on cigarettes

Finnish Presidency outlines priorities to EP committees

Why do multinationals pay women less in developing countries?

UN News 2018 Recap: In Case You Missed It

China will be the world’s top tourist destination by 2030

Coronavirus: the truth against the myths

COP21 Breaking News: “There is an ecological debt that the world needs to pay back to Africa”, French President Francois Hollande promises 2 Billion euros by 2020 from Paris

EU: Protecting victims’ rights from cartels and market abuses

Asylum: deal to update EU fingerprinting database

China is among the 20 most innovative economies for the first time

Do electronic cigarettes produce adverse health effects?

2018 Golden Pen of Freedom Awarded to Maria Ressa of the Philippines

New round of bargaining for the 2014 EU budget late in autumn

EU Budget 2019 to focus on young people

Sustainable fisheries: Commission takes stock of the EU’s Common Fisheries Policy and launches consultation on the fishing opportunities for 2021

This surgeon runs a makeshift hospital for over 200,000 people

New York to London in 90 minutes? These companies think it’s possible

EU Parliament raises burning issues over the FTA with the US

Lithuania vs Parliament over 2014 EU budget

Commission: Raising the social issues that can make or break the monetary union

Easing fears and promoting gender equality in Chad’s girls-only classrooms

Security Council urged to act with ‘one strong voice’ on raft of ills plaguing Middle East and North Africa

Reality Shock

Trump declares emergency and WHO urges speed – latest coronavirus updates

If we can build the International Space Station, ‘we can do anything’ – UN Champion for Space

MEPs demand unprecedented support measures for EU firms and workers

Merkel had it her way with the refugees & immigrants but can Greece and Turkey deliver?

Parliament to ask for the suspension of EU-US deal on bank data

Youth Guarantee putting young people in jobs

Erasmus+ will finance existing UK-EU mobility in the event of no-deal Brexit

Z, V or ‘Nike swoosh’ – what shape will the COVID-19 recession take?

International trade statistics: trends in third quarter 2019

Cross-border cooperation: the EU Interreg programme celebrates 30 years of bringing citizens closer together

Weak growth of G20 international merchandise trade in third quarter of 2018

The EU accuses Russia of bullying Ukraine to change sides

How the coronavirus market turmoil compares to 2008 – and what we can do

‘No country, no region’ can tackle global challenges alone says UN’s Mohammed

5 things to know about the US opioid epidemic

Two shipwrecks add to ‘alarming increase’ in migrant deaths off Libya coast: IOM

It’s time to ‘eliminate the scourge of conflict-related sexual violence’, urges UN chief

EU-Turkey relations: EU considers imposing sanctions while Turkey keeps violating Cyprus’ sovereignty

JADE Spring Meeting Live Coverage: Entrepreneurial skills in the digital markets

After COVID-19, we must rethink how we find and produce new drugs

The EU and North Korea: A Story of Underestimation

Deadly violence at Israel-Gaza border escalates dangerously: UN chief condemns in strongest terms

Banking package: Parliament and Council reach an agreement

Mental health of health professionals: the alter ego

Scotland “shows the way” to separatist movements as Catalonia calls a vote on independence

More Stings?


Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s