WRITTEN QUESTION E-1287/98

by Gerardo Fernández-Albor (PPE) to the Commission

(29 April 1998)

Subject: Measures to promote self-employment for young people

A number of financial institutions have decided to set up various support structures to promote self-employment among young people as a way of helping the large number of unemployed young people to gain a foothold in the world of work.

The results of this initiative have been highly promising and the financial institutions have continued to allocate part of their non-operating income to promoting the functioning and development of these support structures as an innovative way of encouraging new opportunities for youth employment, particularly among young businessmen.

Does the Commission consider that efforts should be made to build on these successful initiatives to set up ways of enabling financial institutions to allocate part of their non-operating income to encouraging self-employment among young people, thus helping to return to society part of their profits in the form of a social dividend?

Answer given by Mr Flynn on behalf of the Commission

(25 May 1998)

The new European employment strategy initiated by the extraordinary European Council meeting in Luxembourg in November 1997 and the resulting adoption of employment guidelines clearly reflect the priority given to the problem of unemployment among young people. The European strategy, especially as regards improved integration of young people, places emphasis on the development of new partnerships, particularly with the social partners and the business world. The example quoted by the Honourable Member is a very interesting illustration of how economic agents can contribute to the integration of young people by helping them to create their own jobs.

The exchange of information, experience and best practices has always been a central feature of Community activity. This activity will be given new impetus as a result of Council Decision 98/171/EC of 23 February 1998(1) on Community activities concerning analysis, research and cooperation in the field of employment and the labour market. Future implementation of Article 129 of the Amsterdam Treaty will also encourage innovatory projects in support of the European employment strategy. The subject of entrepreneurship and self-employment among young people has provided one of the examples of best practice described in the 1997 joint employment report(2). This is one of the areas in which exchanges could be encouraged, so that all Member States can benefit from those with significant practical experience in that area.

In addition to the exchange of experience, the Community action programme "European voluntary service for young people", which is expected to be adopted soon(3), provides direct support for initiatives by young people who, following a period of European voluntary service, wish to take up an activity and in particular to create their own job. Based on the positive experience acquired under the "Youth for Europe" programme, the mid-term assessment of which has shown that one third of young people's initiatives supported by the Community have led to the creation of jobs, Community aid to young people who have performed European voluntary service could constitute a major encouragement for the efforts of financial institutions to promote youth employment, as well as an appropriate supplement to the financial support those institutions provide.

(1) OJ L 63, 4.3.1998.

(2) SEC(97) 1769 final.

(3) COM(98) 201 final.