Youth Guarantee and Youth Employment Initiative – state of play Resa KOLEVA European Commission Directorate General for Employment, Social Affairs and Inclusion

ESF interventions on youth should: be based on a strategic and integrated approach – preferably Youth Guarantee schemes Support the Youth Employment Package objectives (Dec 2012), Recommendation on "youth guarantee schemes" (formally adopted April 2013) ESF measures can target both directly young persons (f.ex. job placements, training courses) and/or reform systems and structures (f.ex. employment or education services access and quality) Partnership at national and regional/local level of all relevant stakeholders is crucial: employers, PES, education and training institutions, regional/local government, youth organisations

Policy framework: A Youth Guarantee Council Recommendation of 22 April 2013: Member States ensure that all young people up to 25 receive a good-quality offer of employment, continued education, an apprenticeship or a traineeship within four months of becoming unemployed or leaving formal education.

Youth Guarantee The Youth Guarantee is part of the European Semester as well as being a Council recommendation. On 29 May, the Commission issued proposals for country-specific recommendations as part of the European Semester. They set out what we consider to be priority reforms to take us out of the crisis and into a sustainable future. The Commission recommended a special focus on the Youth Guarantee for 12 Member States, and the need to reform vocational training systems for 17 Member States, including stronger work-based learning components and apprenticeship schemes. Commission will monitor YG in the context of the European Semester. Good examples should be shared (FI, AT but not only – see Youth Employment Package SWD – December 2012)

Youth Employment Initiative Aim: fight youth unemployment in EU regions NUTS level 2 with >25% youth unemployment rate in 2012 (Eurostat data). Budget: EUR 3 bn ESF +3 bn from new budget line within MFF sub-heading 1b. YEI aims to directly support the Youth Employment Package, in particular the Youth Guarantee Available 2014-2020 but frontloaded (quick results)

Proposed amendments to the ESF regulation (1) ESF Regulation proposal: New chapter (III bis) on YEI + separate indicators + new recital YEI will target actions to individuals only (not systems). Target group: - NEETs (aged 15-24); - inactive or unemployed (+long-term); - registered or not as job seekers; - residing in the eligible regions. Concrete policy measures will be discussed with Member States in the context of ESF OP negotiations BUT: direct and speedy results expected

Proposed amendments to the ESF regulation (2) Additional flexibility element introduced: MS may direct up to 10% of their YEI allocation (ESF + top- up) outside the eligible regions, to support e.g. young persons residing in big cities. YEI top-up calculated proportionally to the number of young unemployed in the regions (fixed once, at the start). ESF allocation at least equal to the share of the top- up for the region concerned, possibly greater BUT: the top-up cannot increase. YEI separate budget line allocation not taken into account for thematic concentration.

Proposed amendments to the ESF regulation (3) MS chooses to programme YEI as either: - a dedicated priority axis, - a part of a priority axis or - a dedicated OP (volume). National co-financing rates apply only to the ESF part (not the top-up). If several categories of regions in one Member State => the highest co-financing rate applies. Additional monitoring and evaluation arrangements + indicators for YEI (new Annex 2). Other provisions: financial management, technical assistance, publicity.

YEI and the ESF YEI will be fully integrated in ESF programming (priority axis, OP or measure programmed under the investment priority on NEET) YEI will enhance and complement, not replace ESF actions MS are expected to allocate more ESF for youth actions than the minimum to match the YEI top-up YEI has a specific purpose, to act in the worst- affected regions YEI will support similar interventions as ESF: jobs and training measures, apprenticeships and traineeships, hiring subsidies, business start-up, etc.

Key outstanding issues Maintaining the focus of YEI Frontloading YEI funding Ensuring adequate reporting on results

Thank you for your attention EMPL-E1-UNIT@ec.europa.eu