The European Union (EU) has been urged by the UK's prime minister to introduce an "economic step change" to boost job creation in the region.

Following talks with Herman van Rompuy, president of the European Council, Gordon Brown unveiled a strategy that he claimed could increase labor market participation in the EU by 15 million individuals.

The proposal calls for a review of the EU budget, state aid rules and public procurement processes, in an effort to ensure that they support new industries like digital communications and pharmaceutical science.

Brown suggested that this could also increase Europe's combined gross domestic product by four per cent annually, while also lowering the region's "unacceptably high" unemployment rate.

He said: "At this critical point in Europe's history, we must now, more than ever, raise our level of ambition for Europe's future growth and employment."

The median unemployment rate for the EU reached double figures in December, according to the data agency Eurostat.