S&D Group leader Hannes Swoboda calls for „resolute action“ against unemployment

S&D Group leader Hannes Swoboda today warns that the EU could face another dismal year on the labour market unless EU governments take „resolute action“ to boost growth and investment at EU level.

Europe has faced a record level of unemployment in 2012 with a rise from 10.1% in 2011 to 11.3% in 2012. Almost 26 million people are out of a job in 2012.

Said Hannes Swoboda: „With a prediction of another year of recession in the eurozone, many economists expect a new surge of unemployment.

„In some EU countries, the number of people out of a job is already simply intolerable, and unrealistic timetables for budget consolidation are destroying jobs and delaying recovery.

„Following the IMF’s recognition that both the EU and itself have under-estimated the negative effects of rapid consolidation, a report* of three major independent institutes commissioned by the S&D Group has shown that a more gradual fiscal consolidation would raise growth throughout Europe by 0.6% a year for the next five years, creating millions of new jobs.

„We need a more credible path for budget consolidation, becausewithout growth and new jobs, budget deficits will rather grow than be reduced.

„As recommended in Europe we must find a way to combine budget consolidation with investment in growth and jobs.

„Those EUcountries which can raise finances at historically low interest rates should go to the capital markets and finance new investment in their infrastructure. By this, countries like Germany, Austria and others can help the rest of Europe to boost growth and employment.“