Around half of the total annual European Union (EU) budget for 2012 is allocated for growth and employment within member states.

This is according to the European Commission, which has released a draft document of its fiscal plans for next year.

According to the proposals, payments are likely to climb by 4.9 per cent on this year to €132.7 billion, with support for the economy and citizens at the heart of the policy.

The draft budget was unveiled by Janusz Lewandowski, the budget and financial programming commissioner, who described it as "a delicate balancing act combining austerity and growth boosting measures for 500 million Europeans".

An increase in the budget set at the minimum level to meet the legal requirements of the EU has been suggested for 2012, including those projects aimed at generating new jobs in the region.

In related news, the European manufacturing sector appears to be showing signs of improvement, figures from Markit have shown, with more jobs generated during April 2011 and higher employment levels expected to drive growth in the industry during the coming months.

Posted by Alex Donnell