Simpler legislation and greater flexibility are the only way to ensure that Europe's economy grows and unemployment falls, MEPs were warned.

Creating the right environment for growth and job-creation was the EU's key challenge, Conservative MEP Anthea McIntyre cautioned.

The West Midlands MEP said: "They can only do this if the market allows for it, if they can find qualified workers and if labour markets are sufficiently flexible. And if they are not over-burdened with regulation.

Speaking during a debate in Strasbourg on growth and youth unemployment, she welcomed a recent agreement between the EU's Parliament, Commission and Council on how to ensure better law-making. 

She continued: "Legislation which is simpler, more easy to understand and implement, will help member states create an environment that will encourage companies to hire and manage staff, while protecting basic workers’ rights. 

"Europe's strength lies in its diversity and we must use this diversity to learn from one another. There is no "one size fits all" template. 

Encouraging Europe to take the UK's lead, she said: "Many member states, including my own, have already put in place successful structural reforms. This has enabled Britain to attract investment, to grow its economy and to create more and better jobs. 

"Our employment rate is now over 74 per cent. While the unemployed claimant count is at its lowest for 40 years. There have been over 2.3 million apprenticeships since 2010 giving people the chance to learn skills and get on in life.

"Ultimately, Europe's greatest need is for growth. Growth that will allow our businesses, especially SMEs, to thrive, to create new jobs and to provide a good future for all of Europe’s young people."