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BackMore than 23 million people in the European Union were unemployed as of October 2010. An increase of almost 45 percent compared to the 2nd quarter 2008 just before the outbreak of the financial and economic crisis, when only 16 million people were looking for work. According to Commission figures, a slight fall in the unemployment rate is only to be expected for 2012. Things are slightly better regarding economic growth in the EU27: although a projected growth rate of 1.7 % for this year and 1.5 % for next year is not yet a reason to jump for joy, they still represent an improvement on the 0.9 % growth rate for 2010, which was forecast in spring.
The European Union is still struggling with the impact of the worldwide financial crisis. The Greek, the Irish and the Portuguese are only some who particularly suffer under the tense position of their public budget situation. In some countries, the pressure to adopt tough austerity measures has led to a deep recession. Greece is the worst affected - the Gross Domestic Product (GDP) is projected to fall by 4.2 % this year and by 3 % in 2011. By contrast, the fall of the Greek output of 2.3 % in 2009 is comparatively harmless. Slightly better is the prognosis for Ireland and Spain, for whom a slight fall in GDP has been forecast for this year. However, it has been forecast to rise again from next year. In spite of the cost-saving efforts, the Commission predicts a further rise in Greece's debts of up to 156 % in 2012, followed by Italy with the second highest level of debt in the EU at 119 % and Ireland at 114 % that only four years ago only had a level of debt of 25 %. The currently lowest level of debt in the Eurozone has Luxembourg with 18 %, followed by Slovenia with 41 % and Slovakia with 42 %.
Alarming are the consequences of the market failure of the financial sector for the labour market: worst affected are Greece, Ireland, Spain and Estonia. If Estonia's unemployment rate was still at 5.5 % in 2008, it will be about 17.5 % in 2010. During the same period in Ireland, this figure has risen from 6.3 to 13.5 %. These figures are only upstaged by Spain, which in her best year (2007) had an unemployment rate of 8.3 %, which will jolt up to 20.1 % in 2010. The average unemployment rate in 2010 will be at about 10 %. Interesting, however, is the development in Germany and Austria: both countries have seen a significant easing on the labour market compared to the previous year. With a forecast unemployment rate of 7.3 % for 2010, Germany lies even slightly below the 2008 figure. The Commission even predicts a fall of the German unemployment rate to 6.3 % by 2012. The rate in Austria is expected to fall to 4.0 %.
One country in particular stands out positively from the figures published by the Commission: Sweden will probably achieve an economic growth of 4.8 % this year; the prediction for next year is 3.3 %. Public sector debt will fall from 40 % this year to 37.5 % in 2012. The relatively high unemployment rate is expected to fall from 8.3 to 7.5 % in 2012.
Speaking at the Committee on Economic and Monetary Affairs of the European Parliament this week, European Central Bank boss Jean-Claude Trichet described the situation of the European Union as rather positive. At 1.9 %, inflation would be at a very low level, the banks had started lending again and there were also reforms in the financial sector. However, Trichet admits that in view of the debt debate of individual countries the last months had been difficult. But the Euro had remained stable.
One thing the autumn forecast of the Commission has made clear: with the exception of only a few states, the EU unemployment rate will remain high, public sector debts in the European Union will continue to rise slightly until 2012 (from 79 to 83 %) and the economy will grow relatively slow compared to the situation before the financial crisis. It will probably take years until the crisis caused by the financial sectors seizes to affect EU economies.
Further information:
Autumn forecast of the Commission
Alarming are the consequences of the market failure of the financial sector for the labour market: worst affected are Greece, Ireland, Spain and Estonia. If Estonia's unemployment rate was still at 5.5 % in 2008, it will be about 17.5 % in 2010. During the same period in Ireland, this figure has risen from 6.3 to 13.5 %. These figures are only upstaged by Spain, which in her best year (2007) had an unemployment rate of 8.3 %, which will jolt up to 20.1 % in 2010. The average unemployment rate in 2010 will be at about 10 %. Interesting, however, is the development in Germany and Austria: both countries have seen a significant easing on the labour market compared to the previous year. With a forecast unemployment rate of 7.3 % for 2010, Germany lies even slightly below the 2008 figure. The Commission even predicts a fall of the German unemployment rate to 6.3 % by 2012. The rate in Austria is expected to fall to 4.0 %.
One country in particular stands out positively from the figures published by the Commission: Sweden will probably achieve an economic growth of 4.8 % this year; the prediction for next year is 3.3 %. Public sector debt will fall from 40 % this year to 37.5 % in 2012. The relatively high unemployment rate is expected to fall from 8.3 to 7.5 % in 2012.
Speaking at the Committee on Economic and Monetary Affairs of the European Parliament this week, European Central Bank boss Jean-Claude Trichet described the situation of the European Union as rather positive. At 1.9 %, inflation would be at a very low level, the banks had started lending again and there were also reforms in the financial sector. However, Trichet admits that in view of the debt debate of individual countries the last months had been difficult. But the Euro had remained stable.
One thing the autumn forecast of the Commission has made clear: with the exception of only a few states, the EU unemployment rate will remain high, public sector debts in the European Union will continue to rise slightly until 2012 (from 79 to 83 %) and the economy will grow relatively slow compared to the situation before the financial crisis. It will probably take years until the crisis caused by the financial sectors seizes to affect EU economies.
Further information:
Autumn forecast of the Commission