Cuts now, jobs later - Europe is abandoning a generation

At last, politicians are talking about youth unemployment, but their efforts don't go far enough.

Can Europe afford to ignore the needs of its younger generation? Youth disillusionment and unemployment are notable features of this economic era. In some EU youth unemployment is over thirty per cent. What are national politicians and supranational bodies doing about this? Recently we have heard a few weak promises about future policies. Yet austerity measures continue to reduce state spending and therefore employment and growth.

On 14 June, labour and finance ministers from Germany, Spain, France, and Italy met in Rome for a meeting titled "Jobs for Youth: Building Opportunities, Opening Paths". The Italian prime minister, Enrico Letta, praised the conference for gathering the ministers in charge of state finances and budgets alongside their colleagues responsible for employment. Economic growth and job opportunities should be created through inter-governmental (and international) cooperation.

This shouldn't be any kind of political novelty, yet Letta suggested that "this is a distinctive day", and "a pride for us that Rome is the European capital city against youth unemployment". (Indeed, Rome is unfortunately the capital city of many actual young job seekers.)

The policy behind this "Jobs for Youth" plan is to promote small and medium businesses, in part through the European Investment Bank. Though it may have some effect in the long run, little was said on how to help people now. In fact, Italy's finance minister Fabrizio Saccomanni made clear there would be no turning away from austerity when he said: "the consolidation of states' finances is a prerequisite for policies against unemployment". The EU approach is that austerity and growth can be part of the same policy.

How this would contribute to the well-being of a fearful (and feared) European youth is not clear. The voices of young Europeans remain unheard. Unsurprisingly, some young people will vote for extremist and anti-establishment forces, and even reject the ideal of a European Union. One should wonder if "people" really are at the centre of the European elites' outlook.

The German prime minister, Angela Merkel, recently told the BBC that "mobility" is key, however unfair it might seem. Young Europeans should move where the jobs are. But how many European countries have flourishing job markets and high demand for labour? And which sectors of the economy? What should be done to help the "jobless" areas that will be deprived of a young and skilled workforce? Merkel's advice also misses the fact that migration for employment already takes place.

Increased migration and support for small businesses won't solve the problem alone. The young people of Europe need more than that to realise their dream of a better society, and to feel part of the EU project. For that, a range of public spending is needed, but instead many countries are reducing their funding of social security and education. A poor, young and angry labour force is a problem for any economic system, and it's hardly a route to prosperity for the European continent.

Andrea Mammone is a historian of modern and contemporary Europe at Royal Holloway, University of London

On your Fahrrad: The German Chancellor Angela Merkel. (Getty.)

Andrea Mammone is a historian of modern and contemporary Europe at Royal Holloway, University of London.

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After Article 50 is triggered, what happens next?

The UK must prepare for years, if not decades, of negotiating. 

Back in June, when Europe woke to the news of Brexit, the response was muted. “When I first emerged from my haze to go to the European Parliament there was a big sign saying ‘We will miss you’, which was sweet,” Labour MEP Seb Dance remembered at a European Parliament event in London. “The German car industry said we don’t want any disruption of trade.”

But according to Dance – best known for holding up a “He’s Lying” sign behind Nigel Farage’s head – the mood has hardened with the passing months.

The UK is seen as demanding. The Prime Minister’s repeated refusal to guarantee EU citizens’ rights is viewed as toxic. The German car manufacturers now say the EU is more important than British trade. “I am afraid that bonhomie has evaporated,” Dance said. 

On 31 March the UK will trigger Article 50. Doing so will end our period of national soul-searching and begin the formal process of divorce. So what next?

The European Parliament will have its say

In the EU, just as in the UK, the European Parliament will not be the lead negotiator. But it is nevertheless very powerful, because MEPs can vote on the final Brexit deal, and wield, in effect, a veto.

The Parliament’s chief negotiator is Guy Verhofstadt, a committed European who has previously given Remoaners hope with a plan to offer them EU passports. Expect them to tune in en masse to watch when this idea is revived in April (it’s unlikely to succeed, but MEPs want to discuss the principle). 

After Article 50 is triggered, Dance expects MEPs to draw up a resolution setting out its red lines in the Brexit negotiations, and present this to the European Commission.

The European Commission will spearhead negotiations

Although the Parliament may provide the most drama, it is the European Commission, which manages the day-to-day business of the EU, which will lead negotiations. The EU’s chief negotiator is Michel Barnier. 

Barnier is a member of the pan-EU European People’s Party, like Jean-Claude Juncker and German Chancellor Angela Merkel. He has said of the negotiations: “We are ready. Keep calm and negotiate.”

This will be a “deal” of two halves

The Brexit divorce is expected to take 16 to 18 months from March (although this is simply guesswork), which could mean Britain officially Brexits at the start of 2019.

But here’s the thing. The divorce is likely to focus on settling up bills and – hopefully – agreeing a transitional arrangement. This is because the real deal that will shape Britain’s future outside the EU is the trade deal. And there’s no deadline on that. 

As Dance put it: “The duration of that trade agreement will exceed the life of the current Parliament, and might exceed the life of the next as well.”

The trade agreement may look a bit like Ceta

The European Parliament has just approved the Comprehensive Economic and Trade Agreement (Ceta) with Canada, a mammoth trade deal which has taken eight years to negotiate. 

One of the main stumbling points in trade deals is agreeing on similar regulatory standards. The UK currently shares regulations with the rest of the UK, so this should speed up the process.

But another obstacle is that national or regional parliaments can vote against a trade deal. In October, the rebellious Belgian region of Wallonia nearly destroyed Ceta. An EU-UK deal would be far more politically sensitive. 

The only way is forward

Lawyers working for the campaign group The People’s Challenge have argued that it will legally be possible for the UK Parliament to revoke Article 50 if the choice is between a terrible deal and no deal at all. 

But other constitutional experts think this is highly unlikely to work – unless a penitent Britain can persuade the rest of the EU to agree to turn back the clock. 

Davor Jancic, who lectures on EU law at Queen Mary University of London, believes Article 50 is irrevocable. 

Jeff King, a professor of law at University College London, is also doubtful, but has this kernel of hope for all the Remainers out there:

“No EU law scholar has suggested that with the agreement of the other 27 member states you cannot allow a member state to withdraw its notice.”

Good luck chanting that at a march. 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.