An opportunity for Europe

Second, young people must be a top priority. Our responsibility here is twofold: to put growth back on track, but also to respond immediately to the human tragedy that has hit our youth. The eurozone's unemployment rate, at 10.9 percent, is at its highest level since the euro was introduced, and young people everywhere, as the first to suffer the consequences of the crisis, are paying a disproportionally high price. Youth unemployment in Spain, for example, is above 50 percent.

We cannot afford to sacrifice a generation, or, rather, risk creating a lost generation that could destroy Europe's social fabric and stability. We need an immediate contingency plan: invest to finance job training, improve educational opportunities, and, crucially, create incentives for employers to hire young people.

The European Central Bank has been offering long-term loans to banks at a favorable rate. This money should be loaned out to small and medium-size enterprises, which are the lifeblood of Europe's economy. The EU also needs common initiatives to replace piece-meal bilateral agreements on tax evasion and tax havens, which undermine the goal of a fair society.

Third, member states should not cut the EU budget indiscriminately during negotiations on the Union's long-term spending plan for 2014-2020. If we are serious about a master plan for growth, we need to provide the necessary means.

The EU budget is an investment vehicle that boosts economic growth and creates jobs. It finances crucial pan-EU transport and energy links. It helps to foster innovation and boost research and development. The EU budget leverages investment, allows for economies of scale, and cannot run a deficit.

The EU's lack of solidarity, imagination, courage, unity, and vision in recent years has made Europe a symbol of division for some, if not many. We cannot let this continue. Hollande's election offers us a valuable opportunity to meet the challenges that the EU faces. Alternatively, we can allow growing poverty, fear, and anger to give rise to xenophobia and racism, and thus place at risk the EU's greatest accomplishments.

But let us be optimistic. It is not too late. Europe can still emerge stronger from its current economic woes. The EU is changing direction at last, and Europe's leaders will find an energetic partner in the European Parliament.

The author is president of the European Parliament.

Project syndicate

(China Daily 05/10/2012 page9)

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