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ITALY

EU heavyweights tackle youth jobless crisis

Spain, Italy, France and Germany sent their economy and labour ministers to Rome on Friday to look at ways to bring down the high levels of youth unemployment blighting the lives of millions across Europe.

EU heavyweights tackle youth jobless crisis
Some 53.3% of Spain's young people are unemployed as a result of the economic crisis, according to Eurostat. Photo: Dominique Faget/AFP

The emergency talks in the Italian capital come at a time when Spain's youth unemployment is over 50 percent.

French Labour Minister Michel Sapin said in an interview with Italy's Il Sole 24 daily on Friday that "in every country, even those where the unemployment rate is lower such as Germany, the percentage of young people without work is double the national average."

Sapin called on the four countries meeting in Rome to "react quickly, using the resources already available," such as the €6 billion ($7.99 billion) earmarked for the battle against youth unemployment in the 2014-2020 European Union budget.

Italian Prime Minister Enrico Letta, at 46 one of the youngest leaders in the EU, has said he hopes Friday's talks will help "define a European employment policy, especially regarding young people".

According to the latest EU statistics from Eurostat, of the 26.5 million people who were unemployed in the EU in April, 5.6 million of them were under 25 years old, which was 100,000 more than a year earlier.

The highest youth jobless rates were scored by Greece (62.5 percent), Spain (53.2 percent), Portugal (42.5 percent) and Italy (40.5 percent), reflecting how young people are paying the price for tough reforms imposed to restructure economies and reduce debt.

While 26.5 percent of young people were unemployed in France, Germany and Austria had markedly lower rates, with 7.5 and 8.0 percent of young people out of work.

Friday's meeting is aimed at preparing the ground for the European Councils of June 27 and 28, at which youth unemployment will one of the key topics on the table, and a special meeting on the theme in Berlin on July 3.

The discussions will be followed by a meeting of European labour ministers in Madrid on June 19, according to a spokesman from the Spain's employment ministry, who said Spain "wants to promote credit for small and medium-sized businesses (SMEs) and measures to help employ young people.

"The idea of focusing on SMEs as a key to creating work for the young was touted at the end of May as part of a French-German drive to open doors for young people.  

German governmental sources said the ministers had adopted a "shared task on a European level regarding policies devoted to the labour market," looking in particular at "margins for improvement on transparency, the exchange of information on best practices, job centres."

The spokesman for the European Commissioner for Employment Laszlo Andor called for the four countries to "coordinate implementation of the Youth Guarantee scheme as soon as possible."

Funded by the European Union, the scheme stipulates that within four months of leaving education or losing work, under-25s would be assured a job offer, an apprenticeship or a traineeship.

Italian Labour Minister Enrico Giovannini said Letta has called for a "shock intervention" to tackle the crisis, with possible measures including tax cuts, changes to contracts and investment in job seeker services.

At the moment, Italy invests just €500 million euros ($666 million) a year in such services compared to € 5 billion in France.

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ECONOMY

Unemployment in Spain hits four million for first time since 2016

The number of people in Spain registered as unemployed surpassed four million for the first time in five years in February, government figures showed Tuesday, as pandemic restrictions hit the country's tourism-dependent economy.

Unemployment in Spain hits four million for first time since 2016
Photo: Josep Lago/AFP

Jobless claims rose by nearly 45,000 last month over last month to hit 4,008,789, the labour ministry said, the fifth consecutive monthly increase.

The rise is due to the impact of “severe restrictions imposed to combat the third wave of the pandemic,” the ministry said in a statement.

The last time the number of jobless in Spain rose above four million was in April 2016.

Spain’s regional governments, which are responsible for health, have imposed various measures to try to curb the spread of the coronavirus, including shutting down bars and restaurants and nightly curfews which have hit the hospitality sector hard.

A broader, quarterly household survey by the national statistics institute INE provides the official unemployment rate, which hit 3.7 million or 16.1 percent at the end of December.

Both the labour ministry and the INE figures do not include the roughly 755,000 people benefitting from a government coronavirus furlough scheme as of the end of last year.

The Spanish government says it has spent €40 billion ($48 billion) since the start of the pandemic to finance the furlough scheme and help the self-employed.

Spain’s economy contracted by 11 percent in 2020, one of the worst performers in the eurozone, with its key tourism sector battered by the
pandemic.

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