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Intervention by Nicos Anastasiades, President of the Republic of Cyprus, at the Berlin Conference on Youth Employment, on Wednesday, July 3, 2013
Dear Chancellor,
I would like to express my appreciation for the invitation to attend the Berlin Conference on Youth Employment. This initiative is extremely important, as youth unemployment is one of the most serious problems Europe is facing today. It comes at a very opportune moment, following the June European Council, where this was one of the main issues discussed.
Accompanying me here today is not only the Minister of Labour of Cyprus, but also the president of the Council for National Economy of Cyprus, Nobel Prize winner of 2010 in Economics based on his research in the field of labour economics, Mr Christopher Pissarides.
Cyprus is one of the Member States that are confronted with high rates of youth unemployment; between 2008 and 2013 youth unemployment increased dramatically reaching a rate of 32.7%.
The lack of positive results in dealing with youth unemployment is extremely worrying.
The youth guarantee is, of course, a central element in the effort to combat youth unemployment and Cyprus is making arrangements for its timely implementation. But, in order to give our young people a genuine employment perspective, we firmly believe that the EU has to rethink its approach in tackling youth unemployment. Instead of a supply-push approach we have to turn to a demand driven approach aiming in this way to create new jobs and to give more opportunities to the young people.
In those countries where economy does not generate new jobs, giving emphasis on the supply side, is expected to have only temporary effects and, we fear, that most probably will cause recycling of the unemployed. This is particularly the case in the Member States which are under an economic adjustment programme. Experience so far has shown that an absolute focus on fiscal consolidation is not the solution for putting their economies back on track and in line with the long term objectives of smart, sustainable and inclusive growth.
The involvement of the European Investment Bank in the effort to address youth unemployment and more specifically its support to SMEs (Small and Medium Enterprises) for accessing finance is very much welcomed since it points to the right direction. I am confident that the European Investment Bank’s involvement will respect the two parameters that are key for a successful implementation of the proposal.
I am referring to the simplicity of the intervention mechanisms, so that the Small and Medium Size Enterprises may be facilitated to utilize the available funds while at the same time keeping the administrative costs to a minimum. The second parameter is flexibility and more specifically the terms and conditions for accessing or receiving funds to be made available. Each member state should be able to draw funds according to its specific needs and national situation.
Finally and before closing my intervention I warmly welcome the invitation of the European Council to the European Parliament and the Council to examine the opportunities provided by the flexibilities in the Multiannual Financial Framework to address the particularly difficult economic situation of Cyprus. This decision opens up the prospect of utilizing such additional assistance in the implementation of measures and projects aimed at addressing youth unemployment.
