European Union heads of state and government agreed that the global economic crisis is not over until unemployment stops rising, Hungary’s Prime Minister Gordon Bajnai told the press in Brussels on Friday, after the EU summit.
He added that there were signs of improvement both in Europe and globally, but cautious optimism is advised, as a pickup can only be regarded as stable once employment trends are turned around. The jobless rate is rising everywhere in Europe and some 8.5 million jobs are estimated to have been shredded, Bajnai said.
Brussels’ standpoint on this issue is in line with Hungary’s views, Bajnai said.
The EU leaders agreed to continue to pursue a harmonised and consciously-planned economic stimulus policy until the rise in jobless rates can be stopped, Bajnai said. He added that post-crisis exit strategy should not yet be launched, as “that would only make matters worse”.
The European Council believes that there is considerable risk in halting economic support programmes too suddenly. This could push economies back into another crisis, Bajnai said. “This poses a real risk.”
In Europe and in Hungary, too, “it will take some time before tangible growth to the average citizen can be seen,” Bajnai added.