The European Commission has proposed the suspension of the co-financing rules so as to be in a better position to assist member states tackle the employment problems brought about by the global financial situation.

Employment Commissioner Vladimir Spidla told Prime Minister Lawrence Gonzi today that the proposal was proof of solidarity with those countries which could not afford to co-finance European projects which deal with unemployment.

The proposal suggests changing the rules governing the European Social Fund (ESF) - the need for member states to fund part of a project in order for them to tap into the funds. He said there was need for flexibility for the projects to have a better effect.

The proposal comes as unemployment in the euro area hit a 10-year high last April. The fund is one of the EU's main instruments to improve people's job prospects by bettering their education and skills.

The European Commissioner is on a two-day visit to Malta at the end of the Commission's term. He said this was so he could leave "the best for the end".

On the new Commission, which will be reconstituted soon, Mr Spidla expressed his full support for Commission President Jose Manuel Barroso's candidature for another term at the helm.