The announcement of hundreds of new jobs at Jaguar Land Rover was welcomed by West Midlands MEP Anthea McIntyre during a speech in Strasbourg.
The Conservative employment spokesman told the European Parliament the creation of the jobs, working on the development of new models at Jaguar Land Rover's Solihull factory, was a huge boost for Britain and the region.
During a debate on youth employment she said: "This is one of the biggest challenges facing member states. Only by growing our economies and encouraging new businesses will we see youth unemployment come down.
"Today Jaguar Land Rover a major employer in my region – the West Midlands – announced the creation of 1,700 new jobs at their Solihull factory. This is wonderful news and gives great hope to the young people in my region.
"It is so important to develop an entrepreneurial culture and an environment that is conducive to starting a business.
"Many young people have great ideas and great ambition. We must encourage them and recognise that some may fail. Someone who has never made a mistake has never made anything.
"Many member states, including my own, have already put in place comprehensive initiatives including expanding apprenticeships and investing in training to help young people get into the labour market. The British Government has committed about £1bn as part of a new 'youth contract.' Recent figures in the UK showed in three months the number of young people who are unemployed reduced by 43,000."