Skip to comments.Eurozone to stay in recession for another year
Posted on 02/22/2013 11:59:54 PM PST by bruinbirdman
Unemployment in Europe is "unacceptably high" and threatens "grave social consequences", the European Commission has warned as it painted a gloomy picture of the eurozone's troubled economy.
Publishing its winter forecast on Friday, the commission predicted that joblessness in the eurozone will peak at 12.2pc, or more than 19m people, this year as the currency bloc continues to struggle.
Marco Butti, the EC's director general for economic and financial affairs, described Europe's labour market as a "serious concern".
"Employment is forecast to shrink further for some quarters, and unemployment remains unacceptably high in the EU as whole and even more so in the Member States facing the largest adjustment needs," he said.
"This has grave social consequences and will, if unemployment becomes structurally entrenched, also weigh on growth perspectives going forward."
Slashing growth forecasts for the eurozone, the EC indicated it will remain mired in recession for a year longer than originally foreseen.
The commission said that the eurozone will not return to growth until 2014, reversing its prediction for an end to recession this year.
Having forecast late last year that the eurozone would grow 0.1pc this year, it changed its position, forecasting that the 17-nation bloc would shrink 0.3pc in 2013.
The delayed recovery, which was blamed on a lack of bank lending and record joblessness, means that the eurozone will remain in its second recession since 2009 for a year longer than originally foreseen.
Next year, the commission expects the eurozone economy to grow 1.4pc.
Olli Rehn, commission vice-president for economic and monetary affairs and the euro said: "The ongoing rebalancing of the European economy is continuing to weigh on growth in the short term.
"The current situation can
(Excerpt) Read more at telegraph.co.uk ...
My, how unexpected!
Who would have guessed that centralized control with borderline-socialist policies would produce such a result?
WOW who would have thought, you mean the model these cretans are trying to push us into? Try at least the next 50 years or more or until leadership somehow miraculously appears.