EU Confronts Youth Unemployment Crisis

June 28, 2013

The European Union has agreed to a multi-billion dollar fund to tackle its youth unemployment crisis, which has led to warnings of a lost generation. Even as the bloc struggles through the economic crisis, its expansion plans continue - with Serbia set to begin formal accession talks in the coming months

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In Spain and in Greece, unemployment among under-25s is running at over 50 percent.

In Portugal, there are lines every day outside the Angolan and Brazilian consulates, as job-seekers look for better fortunes in the country's former colonies.

It is a vicious downward spiral, says John Springford of the Center For European Reform policy group.

"When people have been out of work for a long time they tend to lose the skills that they have, they lose initiative, and also the social problems like drug and alcohol abuse can make them quite difficult to employ again," said Springford.

Unemployment in the EU, 2000-2013

Meeting in Brussels Friday, EU leaders agreed to spend $7.8 billion over the next two years to tackle youth unemployment. Herman Van Rompuy is president of the European Council.

"We know that reforms take time and results won't be immediate. So we're also concentrating on launching actions with direct impact. Fighting youth unemployment and helping SMEs [small and medium enterprises] access credit," said Van Rompuy.