Restrictions lifted on €375m EU fund

IRELAND can now draw money from the €375 million European Social Fund for training and education without having to put in matching funds this year and next, the European Commission announced.

The commission also wants to set up a European micro-finance facility to help companies with fewer than 10 employees and an annual turnover of less than €2m together with co-operatives and social enterprises. It’s aimed at helping those not able to find funds to set up a business as well as those facing a credit crunch.

These are some of a range of strategies to help save and create jobs that include providing at least five million apprenticeships across the EU and encouraging people to travel for work by guaranteeing their unemployment benefits for at least six months.

Labour Affairs Minister Dara Calleary welcomed the initiatives, especially the facility to allow the state to draw down the social fund without having to add matching funds.

The state has drawn down just €25m from the €375m allocated to Ireland over 2007-2013, divided almost equally between the Department of Education and Science and Fás.

Mr Calleary said they are reviewing the programmes to increase the number of people being helped by them. The money, amounting to €19 billion across the EU, will be available for programmes this year and next as a temporary measure, the commission said.

The micro-finance facility with a total budget of €500m was welcomed by Dublin Labour MEP Proinsias De Rossa pointing out that about 93% of all enterprises are micro across the EU.

But he said there must be a state investment bank established by the Government to work with the EU and guarantee a constant flow of funds to key business and job creating sectors.

“EU funds are getting to the banks but are going no further. Two weeks ago the small enterprise body, ISME pointed out that 83% of firms say it is harder now to get credit from Irish banks than it was in February.”

Other strategies include support for short-time work and training introduced in a bid to maintain employment until the crisis passes, immediate training or retraining for those that lose jobs and promoting low-skill job opportunities in household and care services for the most disadvantaged.

Announcing the measures commission president Jose Manuel Barroso said it was part of what he called the shared commitment between the member states, social partners and the commission to respond to the crisis and to save and create jobs.

The EU Commissioner for Employment, Vladimir Spidla said the crisis started in the financial sector but everyone was feeling its effects.

“We have been working closely over recent months with national governments and with workers’ and employers’ organisations on the best ways to tackle the social impacts of the crisis. In particular, we need to focus on getting young people into work, and we must not let them miss their entry into the labour market. This shared commitment for employment is a strong, forward looking and co-ordinated agenda to fight unemployment, boost job creation and pave the way for a sustainable recovery,” he said.