Record unemployment underlines EU's pain
5.6 MILLION YOUNG JOBLESS
ECB President Mario Draghi, whose bold decision-making helped protect the euro zone from break-up last year with a plan to buy the bonds of governments in trouble, has so far preferred to leave the onus on euro zone governments to reform.
A majority of economists polled by Reuters do not expect the ECB to cut its deposit or main refinancing rates in the coming months, although the OECD this week called for the bank to consider quantitative easing.
The Commission, the EU's executive, told governments this week they must focus on reforms to outdated labor and pension systems to regain Europe's lost business dynamism, a move to shift focus away from debilitating budget cuts towards growth.
EU leaders meeting at the end of June in Brussels are expected to put the problem of joblessness at the forefront of their summit.
European Council President Herman Van Rompuy, who chairs the meetings, said last week youth unemployment was one of the most pressing issues for the 27-nation European Union as a whole.
Ministers from France, Italy and Germany, meeting in Paris this week, called on their counterparts to help tackle youth unemployment, with German Finance Minister Wolfgang Schaeuble describing it as a "battle for Europe's unity".
In April, 5.6 million people under 25 were unemployed in the European Union, with 3.6 million of those in the euro zone.
Even if governments take on unions and vested interests to enact reforms, they will take time to produce benefits.
The impact of the euro zone's debt and banking crises has been sapping confidence from companies and households.
Private consumption saved Germany from slipping into recession in the first three months of this year, but retail sales still fell unexpectedly in April because of the cold European winter.
Meanwhile, French consumer spending dropped again in February, falling by 0.2 percent after contracting in January. French household purchasing power contracted in 2012 for the first time since 1984.
