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.

Photo: Getty
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Donald Trump's inauguration signals the start of a new and more unstable era

A century in which the world's hegemonic power was a rational actor is about to give way to a more terrifying reality. 

For close to a century, the United States of America has been the world’s paramount superpower, one motivated by, for good and for bad, a rational and predictable series of motivations around its interests and a commitment to a rules-based global order, albeit one caveated by an awareness of the limits of enforcing that against other world powers.

We are now entering a period in which the world’s paramount superpower is neither led by a rational or predictable actor, has no commitment to a rules-based order, and to an extent it has any guiding principle, they are those set forward in Donald Trump’s inaugural: “we will follow two simple rules: hire American and buy American”, “from this day forth, it’s going to be America first, only America first”.

That means that the jousting between Trump and China will only intensify now that he is in office.  The possibility not only of a trade war, but of a hot war, between the two should not be ruled out.

We also have another signal – if it were needed – that he intends to turn a blind eye to the actions of autocrats around the world.

What does that mean for Brexit? It confirms that those who greeted the news that an US-UK trade deal is a “priority” for the incoming administration, including Theresa May, who described Britain as “front of the queue” for a deal with Trump’s America, should prepare themselves for disappointment.

For Europe in general, it confirms what should already been apparent: the nations of Europe are going to have be much, much more self-reliant in terms of their own security. That increases Britain’s leverage as far as the Brexit talks are concerned, in that Britain’s outsized defence spending will allow it acquire goodwill and trade favours in exchange for its role protecting the European Union’s Eastern border.

That might allow May a better deal out of Brexit than she might have got under Hillary Clinton. But there’s a reason why Trump has increased Britain’s heft as far as security and defence are concerned: it’s because his presidency ushers in an era in which we are all much, much less secure. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.