UN: EU Investment Plan Could Create More Than 2 Million Jobs

Geneva (Alliance News) - Up to 2.1 million jobs could be created in the EU if the stimulus plan ...

Alliance News 28 January, 2015 | 2:32PM
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Geneva (Alliance News) - Up to 2.1 million jobs could be created in the EU if the stimulus plan of the European Commission succeeds in attracting massive private investment and focuses on problem spots such as Greece, the UN labour body said Wednesday.

The figure is considerably higher than the 1.3 million jobs projected by European Commission Vice President Jyrki Katainen on Monday.

European Commission President Jean-Claude Juncker this year started drafting a three-year plan which aims at leveraging an EU fund of 21 billion euros (24 billion dollars) as a risk buffer to attract 315 billion euros of mostly private investments.

If this investment target is reached without taking special job-boosting measures, it would translate into 1.8 million additional jobs, the International Labour Organization (ILO) said in a research report.

If the investment flow were directed especially to countries with high unemployment, the job increase would rise to 2 million, and if training policies for high-skill jobs were added to the mix, the figure would reach 2.1 million, the ILO said.

In the southern European countries of Greece and Spain, unemployment has been hovering around 25%, but these and other crisis-hit countries have been receiving a disproportionally small share of funding from the European Investment Bank, the ILO noted.

By weighing the Juncker plan according to unemployment levels, "those countries in greatest need would observe the highest increases in employment," the ILO experts said in their report.

Not taking the needs of countries such as Greece into account "may only exacerbate the economic and employment disparity that currently prevails across Europe," they added.

Copyright dpa

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