Browsing all articles tagged with Eurostat

Record Unemployment Low Inflation Highlight Europe’s Pain

Unemployment has reached a new high in the euro zone and inflation remains well beneath the European Central Bank’s target, pacing pressure on EU leaders and the ECB for action to stimulate the bloc’s sickly economy.

Joblessness in the 17 nation currency area climbed to 12.2 percent in April, EU statistics office Eurostat stated on Friday spoting a new record since the data series began in 1995.

With the euro zone in its greatest recession since its creation in 1999, consumer price inflation was far lower the ECB’s target of just below 2 percent, coming in at 1.4 percent in May slightly higher then April’s 1.2 percent rate.

That augment may quieten concerns regarding deflation, however the deepening unemployment crisis is a threat to the social fabric of the euro zone. Almost two-thirds of young Greeks are not capable to find work exemplifying southern Europe’s lost generation.

Policymakers and economists including Germany’s finance minister Wolfgang Schaeuble have stated the greatest menace to the unity of the euro zone is now social collapse from the crisis, rather than market-driven factors.

In France, Europe’s second biggest economy, the number of jobless rose to a record in April while in Italy the unemployment rate hit its highest level in at least 36 years, with 40 percent of young people out of work.

Thousands of demonstrators from the anti-capitalist Blockupy movement cut off access to the ECB in Frankfurt on Friday to protest against policymakers handling of Europe’s debt crisis.

Some economists suppose the ECB, which meets on June 6 will have to go beyond an additional interest rate cut and consider a US style money printing program to breathe life into the economy.

Nick Matthews, a senior economist at Nomura International in London said we do not expect a strong recovery in the euro zone. It puts pressure on the ECB to deliver even more conventional and non conventional measures.


High jobless, Low inflation rate Demonstrate euro crisis impact

Inflation dropped in the euro zone in February and joblessness climbed to an all time high, stress the impact of the federation debt crisis.

The EU’s statistics office Eurostat said on Friday that the 17 nation’s shared currency annual inflation rate was 1.8 percent in February, approximately the ECB’s target of below however close to 2 percent and by more than expected.

Eurostat said that the January’s unemployment rate temporarily increased to 11.9 percent in the bloc, climbed from 11.8 in December with another 201,000 people out of work.

The somber economic circumstances will possibly consider on the ECB’s Governing Council when it gathered on March 7, as only a alternative of economists see any early move to cut the bank’s standard rate below the current 0.75 percent, consumer prices are no longer an concerned.

Sarah Hewin, head of European research at Standard Chartered said that the inflation is just not a concern, it is not a cause why policymakers would be uncertain to cut interest rates.

They could shift as early as coming week, however there’s an element of the ECB wanting to keep its powder dry as we go into an uncertain Cypriot debt and political situation with Italy the question to be resolved.

Although the sluggish pace of price boost may make it easier for Europeans to buy clothing and food, it is little relieve to the record 19 million people unemployed in the euro zone.

Three years of crisis have determined major euro zone economies such as Spain and Italy, into a crushing recession, with businesses not capable to obtain the financing they need to increasing and citizens unable to earn sufficient to spend with confidence.

Generally joblessness also masks a large divide, with only 5 percent unemployment in Austria compared with 27 percent in Greece.