This article talks about the rise in unemployment levels of the the 17 countries that use the euro rose to 11.9%. The highest unemployment level that have been reported in January show Spain at 26.2 % and Portugal at 17.6%. Greece's most recent unemployment level release was in November which was at 27% and the lowest being in Austria at 4.9 %. Three years of crisis have driven Major euro zone economies like Spain and Italy into a crunching recession making it hard for business to get any finances to expand and the consumers earnings have fallen , this has reduced their confidence to spend.
The inflation levels in the euro zone have fallen on 1.8% in February , meeting the European Central Banks target. All this data points in one way that the ECB would cut its interest rate in the coming months , Currently it stands at 0.75%.
http://www.bbc.co.uk/news/business-21627623
The inflation levels in the euro zone have fallen on 1.8% in February , meeting the European Central Banks target. All this data points in one way that the ECB would cut its interest rate in the coming months , Currently it stands at 0.75%.
http://www.bbc.co.uk/news/business-21627623
The unemployment rate is something that can drive economies towards destruction and seeing economies like Greece and Spain failing with the euro is driving the unemployment rate for the euro up, weakening the already damaged euro
ReplyDeleteThe unemployment rates in these European countries are dangerously high. There is a trickle down effect that begins with the unemployment level. High unemployment leads to lower levels of disposable income which leads to less consumption and spending and thus a weaker economy.
ReplyDeleteWith how low the euro is right now and how much trouble it has been causing it may be time to look at more serious remedy for the situation. Obviously you dont want to have to switch currency, but desperate times call for desperate measures and with these unemployment rates it is definately desperate times.
ReplyDeleteThe EU is having many problems especially with the unemployment rates being at a high in countries like Spain, Italy, Portugal, and Greece. I agree with what Nate said. No one wants to have to adopt another currency but with these high unemployment rates affecting the income of the citizens of those countries, it is affecting consumption and spending which also affects businesses. If people don't have jobs to earn money, then how are other businesses going to survive if nobody has money to spend and support their business?
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