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Thursday, 27 June 2013

Unemployment tops G20 & EU summit - a plaster over a bleeding artery will NOT solve unemployment !

EU leaders in Brussels
Youth unemployment remains high in the OECD area in the wake of the Great Recession, and exceeds 50% in some Eurozone countries. When G20 labour ministers meet this Thursday (July 18-19 in Moscow), they will face some complex challenges.

European Union EU leaders held a two-day summit in Brussels on (27 June) aimed at addressing unemployment as figures continue to spiral out of control. The summit included EU leaders, trade unions and employers' associations. The reality of the situation is, unemployment is not the problem, the problem is capitalism - this summit is on par with putting a plaster over a bleeding artery & will NOT solve unemployment.

Today in 2013 we have record high youth unemployment within the European Union, where a quarter of under-25s are out of work, has prompted yet another Brussels summit. We are heading for MASSIVE protest around Europe including Britain as those unemployed feel rejected, demonised & patronised & used as economic pawns within a capitalist system.

Capitalism has failed, the people know that the system needs to change definitely, that structural reforms need to be made and we need to take our fate into our own hand - we need an alternative economic, & political strategy in place, we need a planned economy, we required socialism.

It's simply not possible to create jobs in a recessionary environment - you need a
'planned economy' to kick-start growth - after the second world war Europe needed to be rebuilt, today we are in the same situation, austerity is the wrong solution.

The 5.6 million unemployed young people in Europe are the ‘lost generation’. Those aged between 18 and 25 have no jobs, the situation is even worse in Greece and Spain, where over half of people in that age group are without a job. 

The European Council  will merely look at the social dimension in terms of how far social policy is supporting economic goals, or by very limited measures on social indicators. This is not enough!

The Council must respond to the urgency of the situation - the disillusionment at the EU’s failure to deliver on its Europe 2020 poverty reduction target, the growing social, economic and democratic crisis with rising levels of xenophobia and the growing distrust of the EU’s handling of the crisis with its one-size fits all agenda of austerity, wage reductions and privatisation. A change of direction is needed and the Council should launch a real democratic debate – with parliaments, civil society, social partners and involving the people most affected aimed at ensuring a credible social dimension for the EU and the EMU.

Therefore we must ensure the following as a start point:
  • Ambitious objectives for the EMU – rebalancing economic and social objectives, that ensure economic priorities support rather than attack social goals.
  • the Council to launch a democratic debate to develop an ambitious social dimension– through consultation with national and European Parliaments and engaging civil society and social partners.
Five key elements:
  1. Set an ambitious coherent social vision for the EU , as well as the EMU
  2. Ensure that economic policies contribute to social goals, stop current austerity measures which are undermining social rights and carry outex-ante coordination,going beyond the proposed social scoreboard.
  3. Ensure a coherent, social approach is mainstreamed through the European Semester – in all its elements, with the Europe 2020 targets at the centre of the process.
  4. Pro-active visible EU measures to promote social standards across the EU – i.e. a Framework Directive on the adequacy of Minimum Income Schemes.
  5. Social Investment and Employment Pact to drive recovery through investing in social protection, public services and quality employment.
The current European political structures have failed to tackle the problem of youth unemployment  rate reaching 23 percent. According to a UN body responsible for promoting work and employee rights, the International Labour Organization ILO, the EU would need up to 21 billion euro over the same period to reduce the current youth unemployment rate.

Eurofound, an EU agency whose goal is to improve working and living conditions estimates the cost of youth unemployment in Europe at over 150 billion euro a year in lost earnings and taxes, as well as unemployment benefit and other welfare payments.

Young people in Europe have been hit hard by the recession with only 33.6 percent employed in 2011, the lowest figure ever recorded, according to Eurofound. Since the start of the recession, youth unemployment has risen by 1.5 million, reaching 5.5 million in 2011. Meanwhile, 7.5 million young people aged 15–24 and an additional 6.5 million young people aged 25–29 were not in employment, education or training. To compare: In 2008, the figure stood at 11 percent of 15–24 year olds and 13 percent of 25–29 year olds. By 2011, however, these had increased to 13 percent and 15 percent respectively. 

The problem is the EU, G20 labour ministers & leaders like David Cameron & Ed Miliband is they firmly believe in austerity & 'cuts' to the public purse, in reality austerity is wrong for the situation 'we' in Britain like Europe find ourselves. David Cameron is 'self harming Britain' as a consequence hit a 'major artery', along with the British Labour Party they offer little alternative. Putting a plaster over a bleeding artery will NOT solve the economic crisis.

We need a planned economy, we required socialism.


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