An agreement has been reached to create a new European microfinance facility is expected to boost social inclusion and jobs.

The €100 million scheme for employment was approved during the 3,000th regular and formal meeting of the European Union (EU) Council.

Other initiatives adopted at the same meeting included a directive extending the right to all workers for parental leave from three to four months and a draft directive provided improved social protection for self-employed people and "assisting spouses".

The new Europe 2020: A European strategy for smart, sustainable and inclusive growth communication from the European Commission was presented to the gathering and included a target for 75 per cent of people aged between 20 and 64 to be in work by 2020.

Ministers also took the opportunity to discuss youth employment policies in order to help more people in this age group into jobs

The European Council is charged with definition of the "general political direction and priorities" of the EU and is headed by president Herman Van Rompuy.