Europe must finalize its banking union project, cut high debt levels and make its labour market more flexible in order to reduce unemployment and complete its economic recovery, dpa quoted the head of the International Monetary Fund (IMF) as saying Tuesday. "Europe is turning the corner into positive growth," Christine Lagarde said during a speech to the European Policy Centre think-tank in Brussels. However, "until the effects on employment have been reversed, we cannot say that the crisis is over," the IMF chief said, highlighting the high levels of long-term unemployment and the large share of under-25s unable to find work, especially in southern Europe. Overall eurozone youth unemployment reached 24.2 per cent in November, while that figure has risen to over a third in Italy and Portugal, and more than 50 per cent in Spain and Greece. Lagarde listed three priorities to boost growth and create new jobs in the European Union - with its crisis-thwarting banking union project topping the list.
