Thursday, May 25, 2017

Bill Mitchell — 4 years later – the European Youth Guarantee is an under-funded failure

I read a social media quip today from someone who said they had “been banned from their library for moving the books on trickle down economics into the mythology section”. That is pure class. The mover not the banner. But the sentiment is relevant to today’s blog on the latest evidence available on the European Commission’s much-touted Youth Guarantee, that was launched in December 2012 and became operational in April 2013. I say ‘operational’ although given the performance of the initiative that might be somewhat of an overstatement. The latest evidence comes from the European Court of Auditors, which is charged with assessing European Commission policy initiatives. The Report – Youth unemployment – have EU policies made a difference? – which was released on April 4, 2017, is not very complementary at all about the Youth Employment Initiative. In fact, one is not being unfair to conclude after reading it that the whole initiative has been an over-hyped (by the Commission) and grossly underfunded failure – as it was destined to be from the start. It is hard to put any other spin on it. None of the Member States involved have achieved their stated objectives to integrate the NEET cohort “into the labour market in a sustainable way”. The ECA found that the policy intervention has made only a “very limited” contribution and was not sufficiently funded from the start. Bad news but then it is hardly surprising. When the scheme was announced it was clear that its emphasis, design and funding commitments would lead to this type of outcome. One didn’t need to be a rocket scientist to be able to see that....
Bill Mitchell – billy blog
4 years later – the European Youth Guarantee is an under-funded failure
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at University of Newcastle, NSW, Australia


djrichard said...

Mission accomplished

Matt Franko said...

Germany takes the MMT position:

Tom Hickey said...

I would not say that this is the MMT position wrt to trade within the currency zone, and outside the zone is not Germany but the EZ wrt to the ROW.

The MMT economists have made this abundantly clear.

Calgacus said...

Yes. It is neither good nor evil within the zone if the zone is run like a normal country with cross-regional automatic stabilizers, with central spending, with the misnomer of fiscal "transfers" occurring, so that the surplus doesn't export unemployment.

But in the lunatic asylum of today's Eurozone, it very clearly is "evil."