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European leaders to rethink austerity measures?

Eurozone ministers voiced their concerns over the potential of rolling out further austerity measures across the region at a summit in Brussels yesterday (22 May).

Delegates who were in attendance at the proceedings suggested the pace of cuts and other measures to drive economic growth had eased in recent months, as officials target new methods to aid recovery.

Ministers also showed their support for a previously-unannounced initiative with the aim of fighting skyrocketing levels of youth unemployment.

However, governments appeared unwilling to drum up the €6 billion ($7.7 billion) needed to fund the scheme.

Speaking to reporters after the summit, German chancellor Angela Merkel said: "It’s not a matter of money … It’s a matter of looking at how to spend this money most productively."

Germany, which has previously managed to escape the worst of the downturn, backed a slew of deficit-cut extensions last year, but has hinted it plans to go easy on new proposals to reduce deficit across the eurozone.

Posted by Claire Archer