Every State has its recipe

The concerns remain the same – job creation especially for young people – but the vocabulary changes: at European level each Country follows its own way to combat unemployment, with the risk that coordination may be lacking precisely where needed. But when the issue extends to growth and rigour of public spending that risk escalates into a Babel Tower. The “High Level Conference on Employment in Europe”, held in Milan October 8, that brought together some fifteen EU leaders, failed to mark a breakthrough on this issue. Taking stock for renewed action. The summit, decided at the European Council on August 30, organized by the six-month rotating presidency held by Italy, took place in less than three hours and did not produce a final statement, signalling that despite a useful debate, there was no significant conclusion. Participants addressed the ways to combat the crisis, which continues to affect half of EU countries, the modernization of the labour market, youth Guarantee (6 billion that will be invested in concrete projects as early as 2014/15), the best use of EU funds for vocational training. And then a set of ever-present claims were made: structural reforms (always mentioned and rarely put into practice), exempting labour costs (idem), investments. What actually emerged in Milan is a lack of unitary employment policy in Europe. Member States jealously preserve the prerogative of decision in this field, but only few of them take action, and rarely with positive outcomes. Thus Herman Van Rompuy, president of the European Council, less than two months before the end of his mandate felt free to say: “A conference in itself does not solve unemployment, but it serves to take stock of the situation, to redirect efforts and regain momentum”. He added, “national policies can make a difference in this field”, to the extent that over the past years of crisis, some Member States have lowered their unemployment rate after having strengthened domestic economy. And the gaze was fixed on Angela Merkel. Germany acts on the demand. The overview by Van Rompuy was met by varied reactions on the part of the leaders attending the meeting. For German Chancellor Angela Merkel, growth “is necessary” but it also envisages “the respect of the Stability Pact”, while it is possible to enhance, on the plane of investments and reforms, “that very flexibility that is part and parcel of the Growth and Stability Pact”. Merkel arrived and left from Milan with a smile. Her Country is on track despite attempts to seek structural crises in Germany’s economy, while unemployment fell below 5% and youth unemployment below 8%. To show that “everyone must do his share” to overcome recession, Merkel said: “in Germany we are working on a set of measures to strengthen internal demand” with the allocation of funds amounting to 15 billion euro. The criticism was advanced by Brussels and other European capitals (“selfish” growth guided only by exports and without demand capable of supporting also neighbouring countries) and Berlin tried to reply with the facts. At the closing press conference Merkel sat beside French President Holland, with whom she recently had a harsh exchange of words after France unilaterally decided that it would not respect the 3% threshold (of deficit to GDP). The Chancellor declared: “It’s important to invest, but it’s even more important to invest well”. She went on: “I am confident that everybody will respect commitments and responsibilities”. Reforms, education. François Hollande replies. “France is determined to fulfill its commitments, we will use all the flexibility tools allowed”. He continued: “Growth and job creation are a priority for all Europeans, we are all involved in this direction”. For this reason, “we must place emphasis on the European investment plan” announced by the next President of the Commission, Jean Claude Juncker, amounting to 300 billion. Then Hollande underlined the combination of rigor and growth. “There are countries that are committed to structural reforms, but they need to find a favourable European environment”. The French president did not renounce his own “recipe”: “Each country must carry out structural reforms to restore competitiveness: reducing the cost of labour” (Hollande arrived at the summit with the French “responsibility pact” on wage moderation), “vocational training reforms, investments in education, innovation”. The development model. Matteo Renzi, EU president-in-office, delivered the final remarks. “The 3% rule is twenty years old”, but Italy we respect it and on “October 15 we will present the Stability Law in Brussels within the 2.9% threshold”. Speaking to European leaders, the Italian Premier pledged to respect the common regulations, despite his criticisms. Those who carry out reforms or are committed in the creation of development and job creation – is his opinion – should be able to rely on flexible public budget. Renzi was applauded for the Jobs Act, on a partial reform of employment in Italy. He concluded: “There is something wrong in a Europe where 7.6 million jobs have been lost in the period 2008-2013. We must reflect on the European development model”.