Archive for September 2012

Eurozone Unemployment

September 2, 2012

The rate of joblessness in the Euro zone has reached 10.8 percent, this is indeed high.


More unemployment means less purchasing capacity by the consumers and people of a particular country or economy. It is not clear when the economic conditions in Europe will improve, so that unemployment rate and other macroeconomic indicators will start to improve.


Eurozone Budget Deficit

September 1, 2012

Fiscal bleeding in the Euro area continues, as the average budget deficit (expenditures are larger than revenues) reaches 6 percent of GDP. This is twice the original target of 3 percent of GDP maximum  among EU member economies.


More budget deficit simply means more borrowings, when those governments should in fact reduce borrowings to limit the pile up of their public debt.