The European Union is to make available 19 billion euro of planned European Social Fund expenditure to support people hit by the economic crisis.

A statement on the European Commission website on June 3 2009 said that the EU will also frontload funds and co-financing by EU member states will not be necessary for 2009-2010.

Together with the European Investment Bank Group and other partners, a new EU loans facility will be set up to provide micro-credits for those who would usually have difficulty accessing the necessary funds to set up a business or micro-enterprise.

The "EU Shared Commitment for Employment" puts forward key priorities and actions to preserve jobs and help those facing difficulties while paving the way for recovery.

"The objective is for all relevant actors, trade unions and employers' organisations, as well as member states and the EU to work together to deliver on this commitment," the statement said.

The proposals will be presented to EU leaders for their agreement at the European Council on June 18 and 19 2009.

"Europe took swift action to respond to the financial and economic crisis, including its social dimension. Today the Commission is taking a further step towards shared commitment and coordinated action by the EU, Member States and social partners to save and create jobs," European Commission President Jose Barroso said.

"For example, we are accelerating billions of euro in EU support for retraining under the European Social Fund, which already helps more than nine million people a year find jobs. Together with international financial institutions and in particular the European Investment Bank Group, we will create a new 500 million euro micro-credit facility to support entrepreneurs. And at national level we want to see five million young Europeans have access to apprenticeships. I call on the European Council to endorse this ambitious plan," Barroso said.

European Employment Commissioner Vladimir Spidla said: "This crisis started in the financial sector but its effects are now being felt by everyone.

"We have been working closely over recent months with national governments and with workers' and employers' organisations on the best ways to tackle the social impacts of the crisis. In particular, we need to focus on getting young people into work, and we must not let them miss their entry into the labour market. The 'Shared Commitment for Employment' is a strong, forward looking and co-ordinated agenda to fight unemployment, boost job creation and pave the way for a sustainable recovery," Spidla said.
 
The Commission puts forward three key priorities: maintaining employment, creating jobs and promoting mobility; upgrading skills and matching labour market needs; and increasing access to employment.
 
These, the EC said, should be seen as complementary to other actions being taken by the Commission to face the crisis, including recent proposals on financial supervision and the proposal to make the European Globalisation Fund work better in times of crisis.
 
"They are also consistent with the EU’s longer term strategies to reform labour markets including the Lisbon Strategy. There is a particularly strong focus on young people to provide them with the training and work opportunities they need to ensure they don’t miss their entry into the labour market this year because of the crisis," the EC said.