Leaders at summit in Brussels determine to bring down youth unemployment rates which are as high as 50% in some areas
European leaders pledged last night to launch a battery of new measures to combat the scourge of youth unemployment, following three years of austerity policies and spending cuts that have contributed to soaring jobless rates.
But the EU summit in Brussels did not raise new funds to help combat the problem in countries such as Greece, Spain or Portugal; instead, it ordered a rediversion of money from within the EU budget. After months of wrangling, the various warring EU institutions also agreed a new seven-year €960bn (£820bn) budget. The summit decided to devote €6bn of that to fighting unemployment, prioritising the resources on regions where youth unemployment is higher than 25%.
In addition, the European Investment Bank is to borrow on the markets to increase lending to small businesses in an attempt to bypass the credit crunch and encourage the hiring of school-leavers.
The €6bn is expected to have limited impact in countries like Spain or Greece where official figures show youth unemployment exceeding 50% following years of austerity policies.
Angela Merkel, the German chancellor fighting for a third term in September, also wants to counter youth unemployment. She has convened another European summit in Berlin next week devoted to the issue.
Senior European officials conceded that the two-day summit opening on Thursday evening was an exercise in treading water, with all decisions of substance in the EU being put off until after Germany's general election on 22 September. The next summit is scheduled for October.
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