Europe needs new approach to job creation
by Danuta Hübner
01 February 2012
It is time for a change of approach and with the help of targeted European funding, young people should be encouraged not to look for a job but to create a job for themselves, writes MEP
Europe needs growth that generates sustainable jobs. This has been obvious for years and it is a shame that only now a European Council decides to spare no efforts and undertake action aimed at job friendly growth. It goes without saying that action to achieve job-creating growth must be taken at all levels: European, national, regional and local. If we continue on the path of no growth as forecasts show, we will undermine the quality of production potential, including our labour force. Even competitive enterprises can fail and jobs disappear.
It is true that growth needs a conducive policy framework but first of all it needs investment that will create jobs. Small and medium size enterprises have generated 80 per cent of new jobs in Europe over the last 5 years and it is clear that in the years to come jobs will be created in new sectors and different skills will be in demand. These jobs will emerge if people who enter the labour market are prepared to meet new demands.
But we need to change our approach to how jobs appear. We must prepare our youth to think and act not in terms of looking for job but in terms of creating a job for themselves. This can be more effective at local or regional level. Europe can contribute to this process through its numerous programmes and available funding. European funding which has not yet been allocated to projects should focus, even more, on facilitating for young people the way towards a job. There is absolutely no reason why such a huge proportion of Europe's young generation, the best educated ever, should not have a job.
In spite of the rather high mobility of young Europeans, jobs must be created where young people live and graduate from schools and universities. There is no reason why, even before leaving education, young people should not have the opportunity to reach out to programmes helping them to create their own job, maybe together with colleagues. There are many examples of such start-up projects which are also in the interests of a city or a region. This way, when completing education, young people can already have their own enterprise. The benefit to the region or city is that it keeps the graduates, who, having a job, find the place attractive to live.
In autumn 2011, in record time, we passed in the European Parliament the amendment to the general regulation of cohesion policy, increasing the co-financing rate for countries in distress which, for example, brought around €800m to Greece at the end of the year. Now we are working on the risk sharing facility, enabling the continuation of European Investment Bank involvement in supporting the absorption of structural funds and reducing the risk for private capital. This will allow for the continuation of many job creating projects such as in Greece. Certainly, more should be done to expand the use of existing financial instruments, 'Jeremie' and 'Jessica', providing guarantees and venture capital for small businesses that create new jobs.
By the end of 2013, the remaining €82bn of structural funds is going to be allocated to new projects. Member states, regions and cities have to look once again at planned projects and whether they can be better adjusted to meet the urgent need of creating new jobs for young Europeans.
Professor Danuta Hübner is an MEP in the European People's Party and chairwoman of the European Parliament's Regional Development Committee
Europe needs growth that generates sustainable jobs. This has been obvious for years and it is a shame that only now a European Council decides to spare no efforts and undertake action aimed at job friendly growth. It goes without saying that action to achieve job-creating growth must be taken at all levels: European, national, regional and local. If we continue on the path of no growth as forecasts show, we will undermine the quality of production potential, including our labour force. Even competitive enterprises can fail and jobs disappear.
It is true that growth needs a conducive policy framework but first of all it needs investment that will create jobs. Small and medium size enterprises have generated 80 per cent of new jobs in Europe over the last 5 years and it is clear that in the years to come jobs will be created in new sectors and different skills will be in demand. These jobs will emerge if people who enter the labour market are prepared to meet new demands.
But we need to change our approach to how jobs appear. We must prepare our youth to think and act not in terms of looking for job but in terms of creating a job for themselves. This can be more effective at local or regional level. Europe can contribute to this process through its numerous programmes and available funding. European funding which has not yet been allocated to projects should focus, even more, on facilitating for young people the way towards a job. There is absolutely no reason why such a huge proportion of Europe's young generation, the best educated ever, should not have a job.
In spite of the rather high mobility of young Europeans, jobs must be created where young people live and graduate from schools and universities. There is no reason why, even before leaving education, young people should not have the opportunity to reach out to programmes helping them to create their own job, maybe together with colleagues. There are many examples of such start-up projects which are also in the interests of a city or a region. This way, when completing education, young people can already have their own enterprise. The benefit to the region or city is that it keeps the graduates, who, having a job, find the place attractive to live.
In autumn 2011, in record time, we passed in the European Parliament the amendment to the general regulation of cohesion policy, increasing the co-financing rate for countries in distress which, for example, brought around €800m to Greece at the end of the year. Now we are working on the risk sharing facility, enabling the continuation of European Investment Bank involvement in supporting the absorption of structural funds and reducing the risk for private capital. This will allow for the continuation of many job creating projects such as in Greece. Certainly, more should be done to expand the use of existing financial instruments, 'Jeremie' and 'Jessica', providing guarantees and venture capital for small businesses that create new jobs.
By the end of 2013, the remaining €82bn of structural funds is going to be allocated to new projects. Member states, regions and cities have to look once again at planned projects and whether they can be better adjusted to meet the urgent need of creating new jobs for young Europeans.
Professor Danuta Hübner is an MEP in the European People's Party and chairwoman of the European Parliament's Regional Development Committee
COMMENTS
Though, of course, it is good to support entrepreneurship. The best way to do this is not to create programmes and so on, but instead to cut the costs of entry into the market place - by stripping back regulation and getting out of people's way. Otherwise, we are left with bureacrats trying to pick winners.
And as we know from bitter experience, that doesn't work. So, hand back the money to the nation states, let them hand it back in reductions of tax rates on start ups and SMEs and watch as the continents talents blossom.
Gawain Towler - UKIP, London
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