THE European Commissioner for Regional Policy, Ms Monika Wulf Mathies, yesterday urged changes to the Maastricht Treaty to let member states work harder to fight unemployment. "If we are not able to curb unemployment, European integration is in danger," Ms Wulf Mathies stated.

The key to tackling Europe's unemployment problem lies in increasing flexibility and structural reform, rather than boosting economic growth, according to economic policy makers. "The unemployment question is crucial. It's mainly a structural problem," said Dr Hans Tietmeyer.

Speaking two days after the European Commission president, Mr Jacques Santer, presented proposals to revitalise Europe's lacklustre economies, Dr Tietmeyer, the president of the Bundesbank, said major effort was required to remove structural impediments in the labour market. The welfare state needed to be reformed and disincentives to work must be swept away, he added.