Unemployment risks creating new divide in Europe
Associated Press
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Updated 7:55 am, Tuesday, January 8, 2013
BRUSSELS (AP) — Record unemployment and fraying social welfare systems in southern Europe risk creating a new divide in the continent, the EU warned Tuesday, when figures showed joblessness across the 17 EU countries that use the euro hit a new high. Unemployment is increasing mainly in those countries, mostly in southern Europe, where market concerns over excessive public debt have pushed governments to make the toughest savings, pushing the economies into recession. States have raised taxes and slashed spending — including by cutting wages and pensions, measures that hit the labor force in the pocket and reduce demand in the economy. "A new divide is emerging between countries that seem trapped in a downward spiral of falling output, fast rising unemployment and eroding disposable incomes and those that have so far shown good or at least some resilience," said a statement from Andor's office. While the threat of a collapse of the eurozone due to too much government debt may have receded, the national economies — many of which are in recession — will struggle to recover as long as joblessness continues to rise, creating poverty and fueling social discontent. Reported by SeattlePI.com 2 days ago.
Associated Press
Copyright 2013 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Updated 7:55 am, Tuesday, January 8, 2013
BRUSSELS (AP) — Record unemployment and fraying social welfare systems in southern Europe risk creating a new divide in the continent, the EU warned Tuesday, when figures showed joblessness across the 17 EU countries that use the euro hit a new high. Unemployment is increasing mainly in those countries, mostly in southern Europe, where market concerns over excessive public debt have pushed governments to make the toughest savings, pushing the economies into recession. States have raised taxes and slashed spending — including by cutting wages and pensions, measures that hit the labor force in the pocket and reduce demand in the economy. "A new divide is emerging between countries that seem trapped in a downward spiral of falling output, fast rising unemployment and eroding disposable incomes and those that have so far shown good or at least some resilience," said a statement from Andor's office. While the threat of a collapse of the eurozone due to too much government debt may have receded, the national economies — many of which are in recession — will struggle to recover as long as joblessness continues to rise, creating poverty and fueling social discontent. Reported by SeattlePI.com 2 days ago.