By Lisa Marie Perez,
International Business Writer
If the U.S. thinks an unemployment rate of 6.7 percent is devastating, the Eurozone’s catastrophic unemployment rates would make the U.S. scream with panic. The ongoing crisis in Europe is an unrelenting predicament that has been affecting countries of the Eurozone since the credit crisis bombarded them in 2008, followed by a problem with the currency itself.
The Eurozone (countries in which the designated form of currency is the euro) had an unemployment rate lower than 12 percent, a total of 11.9 percent in February, while in Italy it stretched to 13 percent.
Controlling an unemployment rate worthy of becoming legendary since 1977 led the country’s new Prime Minister, Matteo Renzi, to plead for a change in policy for the crumbling economy.
According to ISTAT, there were 3.307 million registered as unemployed.
Renzi is predicted to reveal a new “Jobs Act” that aims to lower industry costs and simplify the multifaceted system of employment contracts.
Germany remained at the minimal level of unemployment since 20 years, a microscopic 5.1 percent. In France, the unemployed escalated up to 10.4 percent, not exactly a “bienvenue” from its previous 10. 3 percent in January.
Greece remained in peril as well, with idleness at 27.5 percent. Spain, at 25.6 percent, wasn’t exactly screaming “trabajos” but it did decrease from 25.8 percent in January.
The dissimilarities between the region’s vital economies emphasizes the struggle the European Central Bank’s Governing Council will endure when discussing monetary policy.
Due to the fact that consumer prices are rising at such sluggish rates, the Eurozone is also vulnerable to possible deflation.
According to ECB President Mario Draghi, the central bank’s accommodative monetary policy should progressively have an impact on the economy as commotions in the financial system diminish.
The OECD (Organization for Economic Co-operation and Development) suggested that the European Central Bank should remain with its flexible monetary policy position for a drawn-out amount of time.
RBC’s del Carpio reassured, “For the ECB, the data reaffirms a very weak recovery, but that makes the case for action less compelling. It shows the recovery, as weak as it might be, is still continuing and is expected to continue over the coming year.”
A version of this article appeared in the Monday, Apr. 7 print edition.
Contact Lisa Marie at