European leaders promised to stimulate growth and create jobs, in a tacit acknowledgment that their exclusive focus on austerity has had painful side effects.

Heads of European state and government meeting in Brussels yesterday pledged to offer more training for young people to ease their transition to the work force, deploy unused development funds to create jobs, reduce barriers to doing business across the EU’s 27 countries, and ensure that small businesses have access to credit. However there was no offer of any new financial stimulus.

“We must do more to get Europe out of the crisis,” the statement approved by leaders said.

The European Commission says that there are still 82 billion in development funds that have not yet been allocated, and the statement from yesterday’s summit said they should be “rapidly” committed to projects focused on growth and job-creation.

Europe’s debt crisis has put the continent and its leaders in an almost impossible situation. While they have to slash their deficits to reassure investors reluctant to lend to them, the debt crisis has also hammered the so-called “real economy,” sending unemployment soaring. Many analysts, politicians and trade unions think that only government spending can restart growth.

Countries across Europe are struggling with high unemployment and sluggish economies: Overall, 23 million people are jobless across the EU, 10 per cent of the active population.

In Spain, unemployment has soared to nearly 23 per cent and closed in on 50 per cent for those under age 25, leaving more than 5 million people, or almost one out of every four, out of work as the country slides toward recession.

Related Topics