Tuesday, 9 April 2013

Eurozone- few signs of comfort


 

The rate of unemployment in the Eurozone has hit a record high of 12%, official figures have shown.

The number of people unemployed in the 17 member states rose by 33,000 during February, to hit 19.07 million, the statistics agency Eurostat said.

The Eurozone economy is currently in recession, having contracted for the past three consecutive quarters. Early indications are that there was further contraction in the first quarter of 2013.

The short-term economic outlook remains bleak, given that many governments are cutting spending and raising taxes as they struggle to control high deficits and rising debt levels.

The austerity measures in many countries - mostly in southern Europe - have combined tax rises with cuts in salaries, pensions, benefits and social services.

 

Apart from the social cost the spectre of unemployment represents a major threat to economic recovery within the EU together with all the global implications it brings.

 

 

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