Unemployment rate- an way out: EU desperately needs Micro-finance for growing micro-enterprises.

Unemployment rate- an way out: EU desperately needs Micro-finance for growing micro-enterprises.

Unemployment rate has reached the highest record while inflation and ECB cut of interest rate. It is 12.1% in March from February's 12% stated by Eurostat. A total of 19.2 million people are now out of work in the region while inflation is 1.2% only. Greece and Spain recorded the highest unemployment rate, 27.2% and 26.7% respectively. Austria and Germany have the lowest rate of 4.7% and 5.4% respectively. The unemployment rate is higher for the youth especially. In Greece, 59.1% of under 25 were unemployed as of the end of January while Spain have 55.9%. 

ECB has already cut the interest rate to 0.5%. But still there is a huge unemployment rate in the area where millions of people are looking for Jobs. The rate of enterprises development in the sector is very low. Besides, the growing an enterprise in Europe is very complicated and most of the prospective entrepreneurs don't have easy access to finance. The financial impediments and the rigid regulations make barriers to entry. 

It is urgent now in this stage to encourage, Micro-enterprise development in the region promoting microfinance. A lot of example of successful microfinance in Bangladesh, India and other countries to promote micro enterprises. EU should open up the market and reduce the regulations to let people to do business. NGOs can help them to establish credit facilities. Only micro-enterprises can enhance the growth of the economy. It is just like the grease the wheel of the economy. Microfinance play as a role of grease the economy. EU desperately needs Micro-finance for growing micro-enterprises.