The unemployment rate for those under the age of 25 in the European Union reached 21.4 percent in December, according to statistics released on Friday, January 29, by Eurostat, the EU's statistics office.

That's up from 16.9 percent for the same month the year before and more than twice as much as the 9.6 percent unemployment rate across the population of the EU.

Spain, the country currently holding the EU's rotating presidency, has been particularly hard hit by the global economic crisis. Unemployment for under-25-years-old Spaniards is at 44.5 percent.

"There is not a single country in Europe that is not worried about youth unemployment," said Spanish Employment Minister Celestino Corbacho at a meeting with his counterparts in Barcelona on Friday.

What is to be done?

Corbacho confirmed that the EU was working on a plan to provide microloans to young people.

"One measure the European Commission is working on is that of microloans for young entrepreneurs," Corbacho said in a release on the Spanish EU presidency's website. "There may be a chance of an immediate agreement, as quickly as possible,"

The program suggested would involve a fund of 100 million euros for unemployed youth or the long-term unemployed. The microcredit program would target those people who tend to have difficulties getting loans from banks and evaluate potential loan recipients based on social rather than financial criteria, according to the Spanish presidency.

The Spanish presidency will present a final proposal to the European Commission in the coming weeks, according to outgoing Employment Commissioner Vladimir Spidla.

hf/AFP/dpa

Editor: Toma Tasovac