Immediate measures to create new jobs in Greece

The problem of unemployment among young people in the countries of southern Europe has become an explosive issue. The harsh policies dictated by the Memoranda are leading to the social exclusion and marginalisation of young people.

Particularly in Greece, the situation on the ground is very dramatic and the statistics are ominous. A recent OECD report on employment prospects (published on 03.09.2014), foresees that unemployment will remain high (around 27%) up to the end of 2015. According to this report, Greece has one of the highest percentages of long-term unemployment among the OECD countries, a percentage which increased from 49% to 71% between the fourth quarter of 2007 and first quarter of 2014.

The report also notes that the risk of a person remaining unemployed and the expected length of time he or she will remain unemployed are among the highest in the OECD countries, while the mechanisms of unemployment insurance (e.g. benefits and social security) are among the least effective.

In view of the above, will the Commission say:

Source: European Parliament

Answer given by Mr Moscovici on behalf of the Commission

The reform strategy under the Economic Adjustment Programme for Greece constitutes a comprehensive short‐ to long-term agenda for growth and employment. While strong attention to the stabilisation of public finances is still necessary, the programme puts great emphasis on a wide range of structural reforms, including labour market reforms, to create new opportunities for investment, innovation and employment.

Labour reforms under the programme aimed at favouring hiring and job creation and enhancing the labour market adjustment capacity to contain employment losses against a backdrop marked by sizeable adjustment in the government and external accounts. Various active labour market policies are being implemented to support employment creation in addition to the European Social Fund (ESF) policies that have continued throughout these years. An employment action plan including a temporary public works programme also financed with EU structural funds has been implemented with 50,000 positions, mainly for the long-term unemployed. A new round of the public works programme with 50,000 additional places is being launched. The ESF has also financed internships for 45,000 young jobseekers. The roll-out of the Youth Guarantee scheme will also contribute to reduce youth unemployment. Furthermore, the Greek public employment service is being reformed, and an ambitious reform of the system of vocational education and apprenticeships has been launched to enhance skills and foster sustainable employment.

It is also worth noting that in 2007-2013 ERDF(1) and CF(2) have helped Greece to create more than 19,000 jobs (mostly in SMEs); start up more than 1,900 businesses and invest directly in over 25,000 SMEs(3).

(1) European Regional Development Fund. (2) Cohesion Fund. (3) Annual Implementation Reports 2013.

Source: European Parliament