EU softens austerity message in wake of "indignant" youth protests

Oct 17, 2011, 11:56 GMT

Brussels - European Union leaders on Monday softened their message on the need for austerity, stressing - after young people protested across the globe over the weekend - the need for cuts to be 'as growth and jobs-friendly as possible.'

Hundred of thousands took to the streets on Saturday in the United States, Latin America, Europe and Asia, following in the wake of the 'Indignados' (indignant) movement in Spain and the Occupy Wall Street demonstrations in New York City.

Austerity measures 'must be as growth and jobs-friendly as possible,' EU President Herman Van Rompuy said in Brussels after a traditional meeting with European industrialists and trade unions' associations.

He also said cuts should not fall disproportionally on the poor, stressing that 'a fair distribution of the efforts made is absolutely key.'

European Commission President Jose Manuel Barroso said he could 'very much understand the frustration and indignation' of young people, and highlighted plans targeting the financial sector.

The EU executive has called for a financial transaction tax and is expected this week to propose EU-wide criminal sanctions for market abuse cases.

'We have nothing against the financial sector ... but at the same time the financial sector has to understand that it has to respect a minimum of ethics standards, which has not been the case recently, and ... make a fairer contribution to the common good,' Barroso said.

But despite the conciliatory language, Barroso and Van Rompuy, speaking ahead of Sunday's EU summit which is expected to adopt a 'comprehensive' eurozone crisis resolution package, said governments could not escape the need to straighten their accounts.

'The concerns of those young people on (the lack of) growth and employment are totally legitimate, but our responsibility is to go through this unpopular period in order to safeguard a better future,' Van Rompuy said.