THE SUMMIT approved the Commission President's proposal for a pro-employment "confidence pact", but postponed a decision on funding a central element of it.
Next December's Dublin Summit will consider a major report on unemployment throughout the EU and will assess how successfully the "confidence pact" has been implemented.
The Commission President, Mr Jacques Santer, said he was "most satisfied" with the political endorsement of his employment project. But he regretted that a decision on the financing of TransEuropean Networks (TENs) - a key part of his proposal - had been postponed.
These proposed transport and communications networks are designed to promote economic efficiency - and therefore growth and job creation. There are 14 priority projects, including the road and rail link from Cork through Belfast to the port of Larne.
Mr Santer is proposing that savings from the EU budget be used to fund the commencement of these projects. That could in turn encourage private or public sources to come up with more funds, he argues.
However, some states believed to be Germany, the Netherlands, Britain and France - believe that EU budget savings should be returned to the members. So the issue has been referred back to the Council of Finance Ministers for further discussion.
The British Chancellor, Mr Kenneth Clarke, told reporters after the summit that the £6.5 billion already pledged by the European Investment Bank for the projects, together with private funding, "can meet the needs of the viable ones."
Mr Santer failed to win backing for his compromise proposal to make an additional £800 million available to the TENs. He said he hoped the issue would be resolved during the Irish Presidency.
"I am confident that, with the declared determination of the Irish Presidency, a decision can be taken soon on the basis of my proposal.
"Indeed, we cannot wait much longer. We must give the right signal as to our readiness to invest in our future."
The final document issued by the EU heads of state and government on Saturday exhorted member states, EU institutions, unions, employers and regional authorities "to take practical action in favour of growth and employment in the context of an integrated approach."
But at the same time it calls on members to step up their efforts to cut budget deficits.
Last week in the European parliament, many MEPs argued that those two objectives were incompatible. Budgetary discipline would have to be relaxed if employment was to grow, they argued.
The conclusions also call for wage restraint and tax reform to stimulate employment. The European Council "invites each member state, where possible, to select regions or cities which could act as candidates for pilot projects on territorial and local employment pacts, with a view to implementing such pacts in 1997."
Mr Santer said he was "delighted" with the recent commitment of European employers and unions to negotiate on working time flexibility and workers' security.
"After their successful negotiation on parental leave, this is the second time that the social partners have accepted to meet their responsibilities. This augurs well for the success of the pact."
On Economic and Monetary Union, the summit conclusions confirm that new regulations governing the operation of a single currency should be completed during the Irish Presidency.
These are likely to include a new exchange rate mechanism to govern relations between the new currency and the EU currencies which remain outside.