OECD predicts 12.3% eurozone jobless rate in 2014

[Anytime]

OECD predicts 12.3% eurozone jobless rate in 2014
AFP July 16, 2013, 10:45 pm

PARIS (AFP) - The unemployment rate in the hard-hit eurozone is expected to reach a record 12.3 percent at the end of 2014, the OECD forecast on Tuesday, with young people the hardest hit.

In its annual Employment Outlook, the Organisation for Economic Cooperation and Development -- which counts 34 advanced and emerging countries as members -- also revealed big disparities between countries in the zone.

Jobless rates in Germany, for instance, are set to fall under 5.0 percent by end 2014 while they will be around 28.0 percent in Spain and Greece.

"Across the OECD, more than 48 million persons are unemployed, almost 16 million more than at the start of the crisis," it said in its report, referring to the onset of the global financial crisis in 2007.

It added that encouraging signs of a recovery in employment growth in the United States had been offset by a return of recession in the eurozone.

And while unemployment is set to fall in Germany by the end of 2014, it will remain flat or rise in the rest of Europe.

Young people are and will continue to be particularly hard hit in many European countries, the report said, with youth jobless rates currently exceeding 60 percent in Greece, 55 percent in Spain and around 40 percent in Italy and Portugal, it added.

 

[winnipegjets]

The rich thinks that the world can continue to muddle on with high unemployment and squeezing the incomes of the working and middle class. Will the working and middle income accept the new imposition?

 

[THE_CHANSTER]

For far too long Germany has had to clean up the sh*t left by other eurozone members e.g bailouts and financial rescue measures.
Merkel should argue enough is enough and not let other member states piss all over them.

Germany has the ability to stand on her own without its parasitic neighbors.

 

[winnipegjets]

For far too long Germany has had to clean up the sh*t left by other eurozone members e.g bailouts and financial rescue measures.
Merkel should argue enough is enough and not let other member states piss all over them.

Germany has the ability to stand on her own without its parasitic neighbors.

Germany can't walk away because it needs a hinterland to sell its products. With the euro, Germany was able to sell to the European market with little competition. Given a choice of German products or Italian products for the same price, where would you buy from? Of course, it will be German products because of the reputation of reliability.

Another reason why the Germans won't walk away is the a huge chunk of the sovereign debts in Europe are held by German banks. The reason why the global economy is in doldrums is that countries are protecting their banks. France and Germany know that if they allow EU countries default, their banks will suffer and then the governments will either have to bail them out or face financial chaos. That's why they rather lend money to bail out the southern European countries. And those loans don't come cheap and most of the money lent out goes back to the creditors; it is a transfer of the debt from the commercial banks to the books of EU.

Don't take everything you read off the news at face value. There is always another angle.