EU leaders to tackle economy amid significant concern

BRUSSELS, Aug 31 (Xinhua): European Union (EU) leaders will address economic issues in the following months as the weak recovery of the EU economy has raised "significant" concerns.

"In autumn, the European Council will address the economic situation and a dedicated euro summit will be convened," European Council President Herman Van Rompuy said early Sunday at a press conference after a special EU summit.

Van Rompuy said "the situation raises significant concerns," calling for a strong focus on jobs, growth and competitiveness.

"It's important that heads of state and government will discuss employment, especially youth employment, in October in Italy, based on previous meetings in Berlin and Paris," European Commission President Jose Manual Barroso told the same press conference.

"Job creation, based on growth, is obviously at the center of our priorities," Barroso said.

The eurozone's annual inflation rate dropped to 0.3 per cent in August, from 0.4 per cent in July, according to a flash estimate issued Friday by Eurostat, the EU statistical office.

The figure was well below the European Central Bank's target of 2 per cent, and indicated a danger of deflation, analysts said.

The eurozone seasonally-adjusted unemployment rate was still as high as 11.6 per cent in July, falling slightly from 11.9 per cent in the same month of last year.