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Flynn Padraig - 26 ottobre 1994

Flynn, Member of the Commission.

In brief, Mr Sainjon, you are of course stating the obvious in so far as our White Paper is concerned. We need a strong, innovative and broadly-based social policy to deal with the greatest problem that we have - unemployment. The biggest difficulty that I see is that we have now returned to economic growth and for the very first time we are seeing the stabilization of the unemployment statistics. The great problem there is that the Union might see that as the panacea for all the situations that we have to deal with. This could lead to a return to the cyclical response that economic growth on its own will sort out everything. That is not the case.

I pointed out in my framework initiative document last year that we had analyzed all the cycles of growth over the last 30 or 40 years and in each single case we have come to an accumulation of unemployment at the end of each cycle because we did not take on board the structural reforms that are necessary. We have highlighted that, we are going to go to Essen with it, we have been to Brussels with it and we have agreement from the heads of state and government. We are now going to put in place the specific action programme to give effect to the seven themes that we identified there which, and I agree with you, are absolutely necessary if we are going to deal with the unemployment problem. You rightly highlight long-term unemployment. Forty percent of the 18 million are more than one year out of work. What do we do to get companies to take them on board? We have to adjust the social security system and make it more attractive insofar as the non-wage labour element is concerned. Young unemployed: five million

young people in the Union today with no passport to the labour market that a good education and training give them. We have to be specific about what we are going to do there and I would refer you to our YOUTH-START initiative there.

So all these are things we have to address and I think they have been very neatly highlighted in our document, the White Paper. I recommend it to you again.

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