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Jobless Rate In Euro Zone Reaches Record 12%

From the New York Times:

Unemployment in Euro Zone Reaches a Record High of 12 Percent

By DAVID JOLLY | April 2, 2013

PARIS — Unemployment in the euro zone rose to yet another record high in the first two months of the year, official data showed Tuesday, providing confirmation that the economy remains in a deep freeze.

The jobless rate reached 12 percent in both January and February, the highest since the creation of the euro in 1999, Eurostat, the statistical agency of the European Union, reported from Luxembourg.

All this despite the fact that most of the European governments have increased taxes. With France even trying to find a way to tax ‘the rich’ and businesses at a 75% rate.

The January jobless rate for the 17-nation currency union was revised upward from the previously reported 11.9 percent.

Gee, their jobless ‘revisions’ are almost as bad as ours.

For the overall European Union, the February jobless rate rose to 10.9 percent from 10.8 percent in January, Eurostat said, with more than 26 million people without work across the 27-nation bloc.

For perspective, 26 million is about half the population of Italy.

European officials continue to hold out hope that the economy, which continued to shrink in the first quarter of 2013, will begin turning around in the second half of the year. Many private sector forecasters are more pessimistic, expecting a contraction of as much as 2 percent in the euro zone’s gross domestic product this year, after a 0.9 percent contraction last year…

So they expect things to actually get twice as bad.

While there is general agreement that the current course for addressing the euro crisis — heavily focused on budget- balancing measures that reduce overall demand — is not working…

In the absence of new measures to stimulate growth at the European and national levels, all attention will be focused Thursday on the governing council of the European Central Bank…

As usual, the bottom line in this New York Times article is that EU countries needs to stop worrying about trying to balance their budgets. Instead, they need to do more government spending.

Which, come to think of it, is the bottom line in every New York Times article. The solution to every problem always comes down to more government spending.

This article was posted by Steve on Tuesday, April 2nd, 2013. Comments are currently closed.

One Response to “Jobless Rate In Euro Zone Reaches Record 12%”

  1. GetBackJack says:

    Why do they need jobs? They have government to pay for everything. If they work they might get ahead, and that’s contrary to modern thinking ….

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