Right so the Easter Holidays are over and its back to work and the news just gets… well worse actually.
Official figures published by Eurostat Statistics Agency earlier today (Tuesday 02 Apr. 2013) showed the number of unemployed people in the Euro-Zone had risen by 33,000 between January and February 2013, putting unemployment in the Euro-Zone at a staggeringly high 12% or 19.07 million people of working age and able to work. this is just an average as well.
Among states within the Euro-Zone, (not including the UK), the highest increases in unemployment compared with a year ago were in Cyprus (10.2% to 14.0%), Portugal (14.8% to 17.5%) and Spain (23.9% to 26.3%). So the bail-outs worked? No!
Worse still youth unemployment (the under-25’s) rose to 23.9%, up from 22.3% a year ago. But the stark contrast happen when you compare Germany with the others. German youth unemployment 7.7%, Italy 37.8%, Portugal 38.2%, Spain 55.7 and the winner is… Greece 58.4%. This is not good, German style austerity is NOT making jobs in those countries that most need them.
That’s the old-style bail outs.
The new Cypriot style bail out, you know the one where the Government is forced to agree to a levy of up to 60% on savings over €100k (this looks like theft to me), well they are going work a treat don’t you think? No, I didn’t think so either. The Germans have come over all happy that national debt problems, national banking problems are not going to be dealt with at the cost of the German tax payer. I’m sure they are very happy with this arrangement, they all join a big jolly club, make like they’re all big pals but as soon as the going gets a little tough Oh no, nobody’s wants to help.
So here we have it; Countries in the Euro-Zone that fall foul of banking failure or spiraling national debt who thought they could rely on their partners actually cant. But not only that what help that is on offer comes with a hefty long term price to pay. No jobs for the foreseeable, definitely no jobs for the youth and anybody who had a will to save for the future well they gonna take that as well. Genius idea! Stop the poor from earning a living and stop the wealthy from enjoying the benefits of their labours.
Can I venture that the actual effects of all this austerity and levy’s and joblessness might actually lead to the long-term deterioration of Germany?
The Germans have enjoyed really low interest rates for a looooooong time, they have a manufacturing industry still in tact and sell to the rest of Europe. So far so good, good products sold to those who want them. Trouble is, those customers of the German manufactures were borrowing money from each other to buy these goods and now the Germans want everybody to pay up. The German success is built on the very shaky foundations of everybody else’ debt.
It just cant be me that can see the flaw in the plan can it?
The Germans are going to have to face up to their dilemma at some point. Either start playing along a bit and helping those others who’ve got them selves in a bit of spot or go it alone and collapse the European project altogether.