VIDEO Five bad news from the Eurozone

Posted by on Jan 07, 2012 | Leave a Comment

Week ends badly for the eurozone. The euro reached a new historic low, and news coming are increasingly waring. Here are the five bad news, of this week.

Unemployment in the euro area reached 16.4 million people, and, in the European Union, unemployment is up to 23.7 million people. That means 10% of the total population. Data was provided by Eurostat.

European Central Bank had to intervene again to buy Italian and Spanish bonds, whose interest rose again to sky. Analysts said the ECB is using a water pistol, not a bazooka in the struggle to combat the economic crisis. Mario Draghi is pressed by the financial markets to reduce, again, interest rates.

Germany goes on the edge. The domestic demand for industrial products fell by 4.8% and  and the external demand, with 7.8%. Although Germany is expected to have an economic growth of 0.5% at the end of this year, Germany could go into recession in first quarter, due to lower exports amid the crisis in the eurozone.

IMF has changed its forecasts for global economic growth, made ​​in September last year. Now, is expected to be below 4%. “The IMF will be very attentive to the role that banks play,” said Lagarde.

Nicolas Sarkozy warned that France will implement on its own the financial transactions tax, if EU partners do not want that. Mario Monti see this as an opportunity to find a breach in the Franco-German coalition. Italian PM wants more influence for his country, which is the third of the EU economy. Both Monti and Merkel were carefully about Sarkozy’s idea. We expect new tensions in the European Union.

 


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