EU growth pact

The head of the European Central Bank has made a proposal to all EU leaders, suggesting that they adopt a growth pact that he says will end the youth unemployment crisis and aid the struggling economy.

This newly suggested strategy aims to stimulate economic growth in Europe, with a key part of the strategy depending on labour market reformation. The proposal is to restructure the labour market so that younger workers are not accounting for the majority of unemployment figures as they are currently. A criticism was made of the current EU labour market saying it is ‘structured against young people’, the high level of regulation and job protectionism has made the labour market difficult to penetrate for youths as those who are already in a stable job position are likely to be there for a while.

Many EU countries are resisting against such labour market reforms as they fear that employers may take advantage of the crisis and use it to overlook worker protection rights, however many of these protections may be exactly what is preventing young people from gaining employment. The key message is that a more ‘flexible’ labour market with fewer protectionist schemes would open up a great number of employment opportunities for young people.

This idea of a European growth compact has gained more support in the last few weeks as economic data has shown the Eurozone economy to be weakening more than anticipated

5 thoughts on “EU growth pact

  1. I think the labour rights and protections were and are always a point for discussions. There are a lot of pros and cons for making higher or less job protectionism. It is difficult to find a job protectionism or market regulation that fits to all EU countries. Between the member states are many cultural differences and especially the economic situation in the countries is at the moment very difficult and different. Due to this I think the EU cannot find a law that fits to all labour markets. In countries with a good economic situation the employers would use a deregulation to overlook workers rights as the text says. Here new laws would not help the people. In countries with a difficult economic situation laws for a deregulation would help that young people could find work. But on the other hand are there many old workers who have to feed a family and employers could replace these workers by young and cheaper employees. All in all I think a deregulation or a regulation of the labour market is always difficult and every case has to be seen on his own. Especially in the EU it is very difficult to make a new labour law for all countries.

    Reply
  2. The labour rights and protections were and are always a point for discussions. There are a lot of pros and cons for making higher or less job protectionism. It is difficult to find a job protectionism or market regulation that fits to all EU countries. Between the member states are many cultural differences and especially the economic situation in the countries is at the moment very difficult and different. Due to this I think the EU cannot find a law that fits to all labour markets. In countries with a good economic situation the employers would use a deregulation to overlook workers rights as the text says. Here new laws would not help the people. In countries with a difficult economic situation laws for a deregulation would help that young people could find work. But on the other hand are there many old workers who have to feed a family and employers could replace these workers by young and cheaper employees. All in all I think a deregulation or a regulation of the labour market is always difficult and every case has to be seen on its own. Especially in the EU it is very difficult to make a new labour law for all countries.

    Reply
  3. The Stability and Growth Pact is intended to ensure that Member States maintain budget discipline in order to avoid excessive deficits. It therefore contributes to monetary stability. Member States coordinate their economic policies at European level.
    I think that, this system is working so far and I definitely hope that it will settle this situation in Europe. But you can´t never know what happen next in Europe because the differences of politics in its countries.

    Reply
  4. I think the EU growth pact is a good thing. Because according to the current statistics of youth employement, is it obviously to do something about it. In my opinion it’s not a bad idea to overlook the labour rights and protections. This seems one of the only solutions. And now more young people will have a change to get a job, then they get experience and a better perspective for a job in the future. I think it is like a visual cirkle.

    Reply

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