Youth Employment Initiative

Dear Sir or Madam,

My name is Manuel Calvo. I was born in Spain but raised and educated in Canada and the United States.
I am now in my father’s hometown, A Coruña, Spain trying to startup my business as an English Teacher here in Spain and I have noticed some differences between European and American cultures that I think might be the reason of youth unemployement rates.

First, I would like to point out that all Europe has done great things regarding equality, health care, education or solidarity among others. This is incredible that you are given each others mobility opportunities such as Erasmus or the European Health Care Card. Congratulations on that.

However, I found some loopholes in your legislation and working policies that i understand might be the reason why young Europeans can’t find their opportunities after finishing their degrees. And those are regarding three basic aspects of this actions: Goods importation programmes, European youth labor programmes and National working Integration programmes.

Goods and importation programmes. As odd as it sounds, although the economic crisis, Europe is nowadays one of the biggest good importer in the world, specially food, meat, veggetables and fish. However, most of those products could be indeed produced inside the Union. Some clear example as olive oil, fish and milk. Europe import them from a variety of different continents arguing they are more affordable but then expend thousands of million in unemployement benefits among other policies such as the Spanish PER system. I think it is vital to raise importation taxes to the point that the European Union makes sure that inside producers can compete equally with the others.

European youth labor programmes. Labor inmersion in Canada and the States does not start from your collegue degree. Actually, students often start working at the ages of 16-18. This is crucial that the European Union creates a plan aiming young students to start working temprorary at the age of 18. To do that, the European Parliament has to create a programme which autorize commerce to open their shops on Saturday and Sundays, with no additional cost, if they hire young european workers during the weekend. In adition to that, and for a period of 2 years, the European Union might bear the full cost of Personal Income Tax and Social Securities for those young workers.

National working integraton programmes. In connection with the above, some European Nations such as Greece, Spain, Italy or Portugal have to understand that for new small business, hiring new workers is expensive and risky, and when talking about recent graduated students, even more because of the total lack of working experience. Is for that reason that European Nations need an special plan. The problem of hiring does never come for workers but from National Institutions and this is because PIT and Social Security expenses are fixed, ridiculously high and mandatory. THe European Union may urge those countries to stablish a working integration programme, in which the State bears the cost of those mandatory national expenses for a period of two year and for yough workers from the ages of 22 to 30 years old.

To conclude, I am going to tell you about my personal case. I am now, as I previously said, running my new business. I would love to hire one or two workers, and regarding the economic situation here in Spain, workers are willing to come and help me out for an average salary with no problem. But the problem comes when we go to the Spanish Social Security Office, where I have to sign my liability. For an average of net incomes 1.500€/month my expenses would be: 1.500€ + 18%PIT + 6,4% and 14 month (I don’t know why). Additonally I’ll have to save another 5% in case the worker would be made redundant. At the end, an annual total expense of 26.300 or 2.200€ monthly.
As you can see, the problem is not the salary or the young worker, but the tax liability with the State.

Hope this could help you.

Yours faithsully,

Manuel

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