Is Unemployment In Eu A Nessecity

IS UNEMPLOYMENT IN EU

AN ACCIDENT OR A NECESSITY?

INDEX:

1. INTRODUCTION 2

2. FINDINGS AND ANALYSIS 3

One currency and jobs 3

Work Mobility 3

Employment and prosperity 4

Language and culture 5

Lack of specialized workers 5

Unemployment decreases 6

3. CONCLUSION 7

4. REFERENCE LIST 8

Appendix A: EUROPEANS AT WORK 9

1. INTRODUCTION

"What I want is a United States of Europe"

(Helmut Khol, 1992)

This work has the objective of analyze and give a personal view of unemployment situation within the European Union after a seminar about European Union and visits to EU institutions for the class of 2008 of ESCP-EAP Executive MBA.

The European Union is not just about free trade, open borders and a common currency. It also gives every EU citizen, regardless of age, the right to travel, live, work, study and retire in any EU country they choose. And there are plenty of opportunities.

The European leaders had committed to promote the UE make most dynamic society of the knowledge at world-wide level, with a competitive economy and a specialized man power.

Employment is a top priority for the EU. In order to become the world's most dynamic and competitive economy, it must create more and better jobs for its citizens. It must also ensure equal opportunities, so that everyone who wants to can work. The aim is to achieve an employment rate of 70% by 2010.

Some of the fundamentals about work in the EU are:

a) no discrimination in relation to nationality (Nice, article 12)

b) free circulation of people inside the community

c) equal treatment in face of employment (Nice, article 39)

d) free establishment (Nice, article 43)

e) free services (Nice, article 49)

f) free competition (Nice, article 81)

g) gender for employment

Even with the treaties and agreements among that states they still cannot solve one of the most relevant problems among the EU, which is the creation and quality of jobs. The huge numbers of unemployment among several members' states may generate in the future social problems jeopardizing the whole zone.

2. FINDINGS AND ANALYSIS

ONE CURRENCY AND JOBS

It is seen that the one currency market, euro (Ђ), created by the EU had made millions of euros in creation of new jobs. However these jobs are often related to high specialized jobs types.

"If there is no one to fill-up the future positions, will not be possible to offer product and services."

Therefore, the deficit in the region is not the lack of jobs but the lack of qualified people to fill up the jobs. The mobility of the workforce provided by the one currency is a real strengh to the member states economies but all the ideias behind seems to be not take advantage by most workers. In member states like France, Germany, Ireland, etc. someone can see the invasion of "imigrant workers", especially from east-europeans countries. However, someone might argue why promote the total opposite and create opportunities in these new member states (east-europeans).

Another important aspect that should be consider is that the European Central Bank (ECB) have not create common incentives for improvement employment as this is considered a real problem for some member states . This is a huge critic from many specialists that the ECB is only worried about inflation and not really doing much for the real unemployment problem in the region.

WORK MOBILITY

The trans-national mobility of people contributes to opening up of various national cultures and enables those concerned to enrich their own cultural and professional knowledge and the whole of European society to benefit from these effects. These assets prove to be even more necessary because current employment perspectives are limited and the employment market demands greater flexibility and capacity to adapt to change .

Mundell concludes that one currency is not solely capable of aggregate the same policies of all members at the same time. At the same time, one central bank will not be able to solve all discrepancies in the regions . This identifies why some states have low unemployment and other in high number, eg. Denmark have 4.8% and Poland have 17.7%. .

If you look into Ireland, or even UK cases of low employment some could say that the migration of work is behind the reasons. However this migration in itself is not capable of solving the employment deficit. The internal policies for work are the facto in this situation. They promote companies to create jobs and move work power from one industry to another. The correction of these gaps among the economies of the member states what the leaders should be aiming to solve this employment gap.

Mundell states that the optimal economic areas help identify these gaps. It is quite easy to move around the EU, however is every EU citizen willing to do it. The cultural barriers are probably the biggest problem.

EMPLOYMENT AND PROSPERITY

One-way to improve the EU society, has been working to promote and provide high-speed internet access to the schools, homes and work places of all EU countries. The EU is also trying to persuade companies and governments to use more Internet in their services. Another priority for the EU is the education of workers in technology related fields.

One third of the 100 000 million euros of the annual budget of the UE is used to stimulate the economy and to create jobs in the