Employment Commission Laszlo Andor has presented the European Commission's annual growth survey for 2013 which sets out the economic and social priorities for the EU in the coming year.
Speaking at the European Commission on 28 November 2012, Mr Andor said the survey highlighted that although public deficits across the EU were coming down, more reforms were still needed to promote economic stability.
These include modernising the public sector, promoting competitiveness and tackling the "social consequences" of the economic crisis.
The AGS raises particular concerns about youth unemployment, highlighting that it has hit 50% in some countries.
As a result of the high levels of youth unemployment, the European Commission has introduced "action teams" in eight member states to ensure that EU funding is targeted at the correct support programmes.
The AGS came into being three years ago as a way of co-ordinating EU budgetary cycles and to prevent the excessive build up of debt that triggered the crisis in the eurozone.
Presentation of the AGS kicks off the so-called European Semester, an annual cycle of budgetary supervision.