8 Sep 2010

EU unemployment still much too high - ECB

12:33 pm on 8 September 2010

The head of the European Commission says Europe's recovery is gathering place, but unemployment is still much too high.

ECB president Jose Manuel Barroso has outlined the EU's priorities in a speech to Euro MPs in Strasbourg.

Mr Barroso says the determined actions of member states has improved the bloc's economic outlook, and gross domestic growth this year will come in higher than forecast.

But he warns the recovery is uneven, and some states aren't taking part.

European Commission president Jose Manuel Barroso says Europe should accelerate financial reforms in order to have sustainable growth.

Supervision framework agreed

Meanwhile, European Union finance ministers have agreed to establish a new framework for financial supervision, designed to help prevent future financial crises.

The measures include a European systemic risk board to oversee the health of Europe's economy.

Ministers also approved a second instalment of emergency loans to Greece worth more than $US11 billion.

But they were unable to agree a new Europe-wide bank levy or bank transaction tax.