Article content continued

Although the eurozone debt crisis that erupted at the end of 2009 has eased, the region’s collective economy has shrunk for six straight quarters and unemployment has reached 12.2%, the highest since the euro was introduced in 1999. Joblessness remains particularly entrenched among Europe’s youth.

Hollande, on a two-day trip to Japan, said Europe now needs to put more emphasis on taking steps to promote growth and competitiveness “so that we can have a better presence in the world.”

“Europe has become more stable, but it must now be more oriented toward growth,” Hollande told the conference.

He also highlighted his proposal to create a common economic government for the eurozone that would set economic policy.

In a speech on the final day of his visit to Japan, Hollande said that the potentially destructive debt crisis has served to “reinforce” Europe and foster greater integration of the 17 member economies that use the euro currency.

He said authorities are developing tools to ensure greater stability and solidarity such as a Europe-wide “banking union” and budgetary rules.

Finance and labor ministers from Spain, Germany, Italy and France are scheduled to meet on June 14 in Rome to hammer out a European plan to directly address the 24% youth-unemployment rate. Merkel and Hollande met at the end of last month to discuss the issue, announcing an initial US$7.9-billion to fight joblessness.

European leaders won more potential reprieve after European Central Bank President Mario Draghi last week said the euro economy will return to growth by the end of the year.

Compiled from Associated Press and Bloomberg files