Recent years have shown that we do not only need "more Europe", but a better European Union. There are many fields in which the EU has to work towards a prospering future: the fight against unemployment, especially youth unemployment, safe, secure and reliable energy supply, or the digital agenda, to name just a few. Despite all that, employment, social affairs and inclusion commissioner László Andor excavated the old and previously dismissed the idea of European unemployment insurance, apparently with support of the socialist governments of Italy and France.
This, again, is an attempt to regulate things in Brussels that should be dealt with on the national level. Social policies are the responsibility of the individual member states – and for good reasons. National or regional governments are much more capable of dealing with the challenges of their national or regional labour market and have built up national social security networks and other measures to help the unemployed, ill or elderly people. The systems within the 28 member states are quite different: in Malta or Slovakia, unemployed receive unemployment benefit for six months, whereas the unemployed in Belgium receive aid without any time-limitation. Also the amount of the unemployment benefit varies from 20 per cent of the last pay-check in Malta, up to 80 per cent and more in Sweden, Luxembourg or Portugal.
"Young Europeans need a chance to work, not a chance to receive unemployment benefit"
According to commissioner Andor's concept, the unemployed could receive an amount of 40 per cent of their previous reference wage for six months. How this EU fund would be financed remains open. National governments would be able to raise the amount and length of the unemployment benefit, to adjust the European aid to their existing systems. As an economic justification, Andor claims that this European unemployment fund would mean "a mechanism for automatic macro-economic adjustment". What this means is clear: more European re-distribution.
There are good reasons why this plan was not carried out before, and these have not changed. An EU fund for the unemployed would be one step closer to a "transfer union". This would be impossible within the European treaties. Instead of thinking of new ways to spend EU-money and creating new shared funds, the European commission should think of measures to improve the structures in the member states to prevent people from getting unemployed and to stimulate the economy. The EU needs reforms in the member states to strengthen their competitiveness.
Young Europeans need a chance to work, not a chance to receive unemployment benefit. Small and medium enterprises (SMEs) create most jobs in Europe and we need measures to help them prosper. With possibilities and simplifications for SMEs to invest in research and development or to enlarge their business they could grow and hire young and/or experienced workers. On the other hand member states need to reform conditions on the labour markets. Europe needs practical education close to the job market, a more effective administration and flexible job protection systems. The current systems, for example in southern Europe, secure jobs for elder workers, but discriminate against young Europeans, as they can only get temporary contracts and are the first to be asked to leave.
These reforms will not be easy. They will take some time and it will take some courage from the national governments to make tough decisions, but it is the only way to be successful in fighting unemployment and keeping up with the rest of the world.