Youth Employment Initiative pre-financing
04 February 2015by eub2 -- last modified 04 February 2015
The European Commission has proposed to make EUR 1 billion from the Youth Employment Initiative available as early as this year. This change will increase by up to 30 times the pre-financing EU Member States receive to boost youth employment - reaching up to 650,000 young people and helping them get into work, faster.
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The Commission says its first priority is to strengthen Europe's competitiveness, stimulate investment and create jobs. Its 315 billion euro Investment Plan can create millions of new jobs – not least for young people. But even when new jobs are created it is often very difficult for young people to successfully enter the job market.
This, says the Commission, is why the Youth Employment Initiative (YEI) focuses particularly on getting young people back into work or training. All Member States have committed to the "Youth Guarantee": to provide young people under 25 with a quality job offer, an apprenticeship or training within four months of leaving school or losing a job. Today's announcement will help make that guarantee a reality, in line with the Commission's commitment in its 2015 Work Programme.
Today's proposal would increase the Youth Employment Initiative pre-financing rate in its 2015 budget allocation from 1-1.5% to up to 30%. Member States benefiting from this initiative could therefore receive a third of the 3.2 billion euro allocation immediately after the adoption of dedicated Operational Programmes. Member States are expected to make this funding available immediately to project beneficiaries through advance payments for projects, and this will be closely monitored.
The Commission estimates that this accelerated pre-financing could speed up immediate support and reach out to between 350 000 and 650 000 young people this year; at the current pre-financing rate, in contrast, this figure would be between just 14 000 and 22 000 young people.
This legislative proposal will now be discussed by the European Parliament and the Council, who have to adopt it before it can enter into force.
Background
All 28 Member States have submitted their Youth Guarantee Implementation Plans and are putting in place concrete measures. Implementation of national Youth Guarantee schemes is monitored by the Commission within the framework of the European Semester.
The European Social Fund, with an overall budget of around 86 billion euro in the 2014-2020 period, is a key source of EU funding to implement the Youth Guarantee.
To top up the European Social Fund in Member States with regions where youth unemployment exceeds 25%, the European Parliament and the Council agreed to create a dedicated Youth Employment Initiative (YEI). The YEI funding comprises a 3.2 billion euro specific allocation from a dedicated EU budget line (frontloaded to 2014-15) matched by at least 3.2 billion euro from Member States' European Social Fund allocations.
The YEI complements the European Social Fund for implementing the Youth Guarantee Recommendation by funding activities to directly help young people not in employment, education or training (NEETs) aged below 25 years, or, where the Member States consider relevant, below 30 years. The Youth Employment Initiative funding can be used to support activities including first job experience, provision of traineeships and apprenticeships, further education and training, business start-up support for young entrepreneurs, second-chance programmes for early school leavers and targeted wage and recruitment subsidies.
Further information
