Press release conference on youth employment in Europe (Paris,12 November 2013)

Good evening. First and foremost, I would like to thank President Holland for organising this conference. Youth unemployment is, without a shadow of doubt, one of the most pressing issues facing Europe.

That is why we are here today, with over 20 presidents and prime ministers in attendance, together with the ministers for employment and education.

In July, Chancellor Merkel invited the Member States to Berlin. Now, in November, we are meeting again here in Paris. We will hold another meeting in Italy next year, in the spring.

I put the topic of youth unemployment – and it is more than a mere topic – at the forefront of the agenda for the European Council back in June, and in October we reviewed the progress that had been made vis-à-vis our commitments for youth employment.

We will keep coming back to this issue in the European Council in future - for as long as it takes. For we simply cannot allow ourselves to ignore it – for human, social, economic and political reasons.

At the European Council in June, the 28 presidents and prime ministers, along with myself and the President of the Commission, called on all key players to make concerted efforts to enable young Europeans and motivated Europeans to find jobs or continue their training.

Today's conference is proof once again of the degree of involvement and commitment that exists.

Unfortunately, we know only too well that economic upturns do not lead to an immediate increase in employment. According to the latest estimates, employment is set to rise in 2014 and, to an even greater extent, in 2015 (by around 1% in total) in the euro area and the EU, although unemployment will, unfortunately, remain too high.

I know of course that we need to be cautious when it comes to estimates, but it is to be hoped that, in 14 months from now, employment will have risen in nearly all the countries in the euro area. There are prospects, there is hope. This is of prime importance after years of difficulty, of extreme difficulty.

We know what we have to accomplish in order to make further progress. We are in agreement about what needs to be done. What matters now is to implement it, quickly.

First of all, we must continue to reform the labour markets so that they become more job-intensive. The problem of structural unemployment largely pre-dates the crisis. In the past, some countries managed to achieve a substantial reduction in structural unemployment, while others were completely unable to do so. Young people will be the first to benefit from global employment policies.

The labour market is a competence, and hence a responsibility, of national governments.

The role of the European Union is to act as a facilitator and driver, via the EU budget. The eight billion euro earmarked in the MFF are proof of this.

Secondly, the Member States must finalise their "Youth Guarantee" schemes without delay, or it will not be possible to make EU funding available as from 1 January 2014 in the most affected regions. This would be a real lost opportunity.

Thirdly, we must implement the decisions we took at the European Council in October to ensure that young people have sound digital skills. If we don't, we may find that from 2015 onwards we are confronted with a shortage of nearly 900 000 qualified workers in the digital sector – what a supreme irony in a period of high unemployment!

Fourthly, we must also encourage an entrepreneurial spirit in young people. After all, setting up in business is also an effective means of creating employment. Here again, the Union has developed new initiatives.

The fifth, and final, point is that we must make efforts to shore up the economic recovery which we are seeing today. In the end, it is economic growth which provides the main solution to unemployment. Monetary policy, flexible budgetary policies and a stable currency all contribute to this process. But growth is not enough; we need me asures which have a direct impact, especially for young people.

In conclusion, therefore, I intend to do everything in my power to keep the momentum going – and ensure that the issue is regularly reviewed in the European Council.

By March, when we meet again in Brussels (at the European Council meeting), and later in Italy, the EU's Youth Employment Initiative and the national plans for implementing the "Youth Guarantee" scheme should have been put in place and, it is to be hoped, should already be bearing fruit. This will be a good opportunity to look at the progress we have made and the next steps we need to take. It is more than an opportunity. It is our duty.

Our credibility is at stake. If Europe yields results, Europeans will have confidence in it.