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.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

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

Mozambique pledging conference hopes to soften devastating blow of back-to-back cyclones

This billion-dollar campaign wants to protect 30% of the planet by 2030

ILO welcomes new UNDP report that places decent work at the heart of sustainable development

UN rights chief calls for release of hundreds abducted and abused in South Sudan

The future of manufacturing is smart, secure and stable

European Globalisation Adjustment Fund, who gets it and who pays the bill?

4 innovative renewable energy projects powering Europe’s green future

The Europeans with a job diminish dangerously

Civil protection: Parliament strengthens EU disaster response capability

Drinking water: new plans to improve tap water quality and cut plastic litter

Global health challenges require global medical students

Brexit negotiations: back to square one, tougher words, no good faith

After this year’s Climate Action Summit, what happens next?

Parlamentarians to “break up” with reality in the Google antitrust case

3 ways governments and carmakers can keep up with the future of transport

10 things Europe does better than the rest of the world

“If they think they can slave an entire nation, then they will just have the opposite results!”, Alexis Tsipras cries out from the Greek parliament

How can we measure real progress on the Sustainable Development Goals?

Cambodia: Giving back to UN peacekeeping

UN chief condemns terror attack in Kismayo, Somalia

How public private partnerships must evolve to create social impact

Summer 2018 Interim Economic Forecast: Resilient Growth amid increased uncertainty

5 amazing people fighting to save the oceans

Chinese economy to raise speed and help the world grow

Somalia: UN congratulates Puntland region’s newly-elected President

We are close yet so far…

EU Youth Goals – we are shapers not listeners

The Commission unsuccessfully pretends to want curbing of tax evasion

FROM THE FIELD: Stopping aquatic hitchhikers to safeguard environments at sea

New roadmap toward healthier and cleaner oceans adopted by UN Environment and European Commission

5 facts to know about Africa’s powerhouse – Nigeria

Global Citizen-Volunteer Internships

European Defence Fund on track with €525 million for Eurodrone and other joint research and industrial projects

The relation of deforestation and respiratory diseases

Here’s how data can shine a light on financial crime

Why South Africa is on a path of economic renewal

Eurozone has practically entered a deflation trap

EU budget 2019 approved: focus on the young, innovation and migration

Yemen war: The battle rages on, children suffer most

Despite progress towards peace, Afghanistan facing ‘daunting challenges’ ahead of presidential vote

“Asia-Pacific takes stock of ambitious development targets”, written by the Heads of UNFPA and ESCAP

G7 summit: Trump Vs. G6 leaders on trade and climate change

Who will secure Lithuania?

Act now to end violence, Zeid urges Nicaraguan authorities

China is the first non-EU country to invest in Europe’s €315 billion Plan

Intel @ European Business Summit 2014: Better decisions now, the new business dashboard 

New forms of work: deal on measures boosting workers’ rights

Maros Sefcovic Canete European Commission Energy

Better late than never? Commission runs now to fight energy dependency on Russia with the sustainable energy security package

Warmongers ready to chew what is left of social protection spending

How can consumers be effectively protected from insurance sellers?

China and UK relations post Brexit as EU addresses Chinese takeovers

Manipulating privacy and reaping the benefits of technology

South Sudan ‘revitalized’ peace deal must be inclusive, Security Council hears

Conditions deteriorating alarmingly in Yemen, warns senior UN official

Malta: MEPs conclude fact-finding visit to assess Caruana Galizia murder inquiry

Investing in rural women and girls, ‘essential’ for everyone’s future: UN chief

At last Britain considers a super-soft Brexit

Long live Eurozone’s bank supervisor down with the EU budget supremo

Human health – litmus paper for the climate change?

MWC19 Wrap Up, in association with The European Sting, GSMA’s Brussels Media Partner for the 6th Consecutive Year

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