(VOVworld) – The European Economic and Social Committee (EESC) held a forum on December 10^th and 11^th on the impacts of the austerity policy on the European economy in Brussels.

(Photo: AFP)

In the context of a prolonged economic crisis, EESC is concerned that the austerity policy may hurt the recovery and growth of the European economy. EESC Chairman Henri Malosse said that while the EU is preparing for the election next May, it is necessary to cut down jobs in relevant industries and services. Malosse said in order to overcome the crisis, there should be open dialogue with the public. He mentioned the wish of the European citizens that political and economic policies be carried out transparently because it directly affects their lives.

International Monetary Fund Chief Christine Lagarde said the EU must give priority to financial issues as the wrong budget cuts will destroy growth. According to Lagarde, there are 4 significant issues for the EU to build trust: reforming the banking system, supporting financial demand, reducing debts, and promoting production and market growth. The EESC called on EU member countries to resolve pending issues, build trust among the people, boost growth and generate more jobs for young people.