Nearly one in four young people in the eurozone is out of work – with that figure rising to more than half in Greece and Spain.
Germany, which has the lowest youth joblessness rate in Europe, has been criticised for imposing tough austerity measures on the south of the eurozone.
Protesters in Greece and Cyprus have heaped abuse on Angela Merkel, the German chancellor, waving caricatures of her with a Hitler moustache and dressed as a storm trooper.
Wolfgang Schaeuble, the finance minister, and Ursula von der Leyen, the labour minister, will unveil the "New Deal for Europe" alongside their French counterparts yesterday in Paris.
Under the plans, finance from the European Investment Bank will be made available to encourage job creation at small and medium sized businesses.
The eurozone debt crisis has left many small businesses struggling to borrow money from banks.
Finance for the plans will come from existing government funds including 6 billion euros (£5.1 billion) earmarked to deal with youth unemployment in the EU´s latest budget.
German officials say the initiative will be targeted first at countries with the highest levels of youth unemployment.
Mrs Merkel has invited employment ministers from all 27 EU countries to talks in Berlin in July, aimed at laying out further practical steps.
Source: The Telegraph