This policy is good for EU economies.  If the government is employing people then it is going to be boosting the economy. Providing a fiscal boost by spending money is one of the most accepted ways of boosting the economy. In this case spending money on temporary workers is good in several ways.  First it is a fiscal boost to the economy. The government will be paying the temporary workers. These workers will have more money to spend and will probably mostly spend it rather than saving. This in turn boosts demand for other goods and services so meaning there needs to be more output with the result that some jobs will be made permanent. There is therefore a positive feedback loop.  The second way in which this helps the economy is that it is investment. It is investment because the government is paying for young people to gain experience and for companies to be training these temporary workers. The result of this is a more skilled workforce who in the long term will be more productive.  There is a final possible benefit. With government paying for workers they are effectively subsidizing firms. Even if they are new trainees the young temporary workers will be providing output for companies at next to no cost. This then makes that firm more competitive against its global competitors.