Since youth unemployment in the European Union has reached almost 24 per cent, we must act here and now. This urgent need encouraged the European parliament to take into account the fate of millions of young Europeans in the negotiations on the multiannual financial framework 2014-2020.
As a result, an additional €6bn was put on the table to support employment of people under the age of 25. The so-called youth employment initiative (YEI) could play a crucial role for the EU labour market. Therefore, this additional funding was frontloaded to the first two years of the current financial framework instead of being spread over the entire seven-year period of financial programming.
"The €6bn from the initiative is dedicated to training, apprenticeships and career counselling for young people who struggle to find a job"
YEI funds are available to all the EU regions, where the unemployment levels of people aged 15-24 exceeds 25 per cent. The €6bn from the initiative is dedicated to training, apprenticeships and career counselling for young people who struggle to find a job.
The European commission estimates that the funds from the YEI combined with the European social fund, and the funds supplied by member states, can channel up to €17bn in 2014-2015 in order to bring millions of young people back on to the labour market. This is probably the largest intervention in the labour market that Europe has ever seen.
The main operational framework is the youth guarantee proposed by the commission which heavily relies on experiences coming from Finland, Sweden and Austria. The framework assumes a timely and individualised intervention for every young person entering the labour market. This means that, within four months of young people leaving formal education or becoming unemployed, across the member states unemployment offices will provide career counselling and good-quality jobs, apprenticeships, traineeships, or continued education to the youth.
The implementation of the youth guarantee in the member states is taking place at this very moment, as the commission is currently reviewing the recently submitted implementation strategies. Although the funds are already secured within the YEI, this enormous intervention will require a set of reforms of the national unemployment services systems. More career counsellors will have to be taken on board and properly trained to meet the needs of unemployed young people.
Although the YEI should provide a general stimulus to the EU economy, it is mostly about giving a chance to young people to gain their first job experience. And most of the job has to be done at the national level.