Unemployment rates in France and Spain have hit new record highs, sending shockwaves through the European economy.
Over 3.2 million people in France are seeking jobs, an increase of 11.5% from one year ago. The increase more than a full percentage point from February. The level is the highest since unemployment records began in 1996. Continue reading
Stocks across the world fell after reports of economic weakness in Europe.
Car sales have plummeted in Europe along with reports this month of unemployment increasing again. Great Britain’s unemployment rate rose to 2.56 million between December and February. Continue reading
Spain, in the midst of a massive recession, saw a 6.5% decrease in industrial output in February 2013 versus a year earlier. That followed a 4.9% decline in January.
The bad news further complicates an economic meltdown that includes bank failures, massive company debuts and austerity measures forced on the government as part of bailouts from the EU. Continue reading
The World Trade Organization has announced a cut in the 2013 growth forecast from 4.5% to 3.3%.
The WTO tried to downplay the weaker growth by claiming that in 2014 the world trade market should grow 5%.
“There is a need for more rules-based trade in order to reduce unemployment and to stimulate growth,” WTO director general Pascal Lamy told reporters. In addition to the unemployment, the weaknesses in European economies will continue to drag down trade. Continue reading
Portugal’s prime minister is warning that unless deep cuts are made to social security, health, education and public programs the nation could be facing a second bailout from the European Union.
Prime Minister Pedro Passos Coelho said the country is facing a “national emergency” and that because the Portuguese Constitutional Court struck down 1 billion euros in savings that were required to meet existing bailout conditions there was no choice but to cut in areas like welfare. Continue reading
The Markit composite purchasing managers’ index, which measures the growth in manufacturing and services sectors, has reported significant downturns in major European economies. Continue reading
The International Monetary Fund has released an assessment critical of Ireland’s actions after receiving bailout funds.
The report says that Irish banks have made “inadequate progress” due to non-performing loans and not dealing well with tackling home repossessions. The IMF said it’s likely the banks are still losing money before putting aside funds to cover bad loans. Continue reading
The Egyptian government is seeking a massive loan from the International Monetary Fund to help the country’s foundering economy.
The negotiations between government officials and IMF representatives in Cairo is contingent on proving that the nation is serious about economic reform.
The Egyptian pound has lost ten percent of its value since the beginning of 2013. Inflation has significantly risen and the lack of funds has caused the government to cut back on imports. Continue reading
A federal judge has issued a ruling saying the city of Stockton, California would be unable to offer basic government services without bankruptcy protection.
The city’s troubles are attributed to a severely decreased tax base in the wake of the U.S. housing market crash. The tax base of the city declined 70% in the last few years. Continue reading
The leaders of the BRICS nations are discussing the creation of a development bank that would be in direct competition to the World Bank.
The heads of Brazil, Russia, India, China and South Africa have long complained about a western bias in the decisions made by the World Bank. The fund would develop infrastructure projects in developing nations. Continue reading