'New Deal' to solve youth unemployment in the EU

FXstreet.com (Barcelona) - German Finance minister Wolfgang Schäuble, and his French counterpart Pierre Moscovici met in Paris on Tuesday to present a joint plan aimed at tackling youth unemployment in the Eurozone. The so-called “New Deal” is expected to include various measures such as providing apprenticeships, facilitating the hiring of young people by small businesses, as well as improving work migration in the EU.

During a press conference held on Tuesday morning Wolfgang Schäuble emphasized the gravity of the youth joblessness problem in the EU. He argued that leaving it unsolved would hinder or even completely halt the recovery in the area, threatening European stability. Pierre Moscovici backed his stance, adding that youth unemployment should be dealt with by implementing structural reforms.

European Investment Bank chief Werner Hoyer, who also took part in the press conference, assured that the financial institution could provide funds for projects aimed at bringing down joblessness among young people in the EU. "The lending volume can be extended by 16billion this year amounting to 70b. Innovative projects need to come forth,” he said.

The program is mainly directed at EU peripheral countries with the biggest youth unemployment such as Spain or Greece.