Schulz says Italy doing 'fantastic work' in employment

(See related) (ANSA) - Milan, October 8 - The Italian government is doing "fantastic" work, making a strong effort to invest in job creation, European Parliament Speaker Martin Schulz said Wednesday as he entered a summit on employment in Europe.
    "(Leaders) must find a strategy for the creation of new jobs, fast," said Schulz at the beginning of the summit that brought together leaders of European countries, most of which are facing sluggish growth and rising unemployment.
    Young people have been hit especially hard by the slow jobs market - in Italy, the youth unemployment rate is more than 40%.
    Schulz said EU leaders must make the most of EU funds available for spending that will lead to employment, particularly for young adults.
    He also called for a greater emphasis on stimulating economic growth and less on balanced budgets, adding that he supported efforts in this by the Italian government.
    "(This) is not a summit on 3% but on employment and growth," said Schulz, referring to European Union rules requiring governments to hold their deficits at no more than 3% of gross domestic product (GDP).
    "We cannot require balanced public accounts without jobs and growth," added Schulz.
    "The solution is through public and private investment," he added.
    Italy and France have both publicly complained that this requirement is too harsh during hard economic times and although Premier Matteo Renzi has said Italy will meet that threshold, France has said it will not until 2017.
    Cutting spending to balance government books makes sense only when economies are stronger, said Schulz.