Brown calls for EU 'step change'

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Gordon Brown has called for an "economic step change" to boost Europe's recovery from the recession and create growth and jobs.

The prime minister unveiled a proposal for an EU strategy which, he said, could get 15 million more people into work across the continent.

It could also potentially raise Europe's output by 4%, or 500bn euros (£436bn), he said at Downing Street.

Current EU unemployment rates of around 10% were "unacceptably high", he said.

Following talks with European Council President Herman van Rompuy, Mr Brown said the compact would be discussed at a special meeting in Brussels on 11 February.

'Global vanguard'

He said: "At this critical point in Europe's history, we must now, more than ever, raise our level of ambition for Europe's future growth and employment."

The opportunity for Britain and Europe is real, it is pressing, it is essential and we thrive on being part of a strong and prosperous Europe PM Gordon Brown

The February meeting should agree measures to build on recovery from recession across Europe, putting it "in the global vanguard of tomorrow's industries", like digital communications, pharmaceuticals, science and space technology.

Mr Brown said the strategy was needed because "the European growth ambition is not good enough for the future".

Mr Brown's compact proposes giving the European Investment Bank access to capital markets to bring in extra private finance for companies developing new technologies.

It calls for a review of the EU budget, state aid rules and public procurement processes to support new industries.

Flexible markets

It also says funds from the European Social Fund and Investment Bank should be used to develop the workforce skills needed for a low-carbon economy, while completing the single market and creating more flexible labour markets.

Mr Brown said the EU had to develop free trade agreements with other countries - starting with South Korea - in the absence of a final settlement in the Doha talks on global trade.

He said: "Half of Britain's international trade is with the EU. More than three million of our jobs depend on Europe.

"The opportunity for Britain and Europe is real, it is pressing, it is essential and we thrive on being part of a strong and prosperous Europe.

"If Europe can take the measures we are suggesting and raise its labour force participation by 5%, that would create 15 million jobs, raise European output by 4%, create half a billion euros of additional wealth, create large numbers of apprenticeships and jobs for young people in particular and tackle unemployment problems that we face.

"We must deliver this economic step change."