Today’s wrapup focuses on the latest grim global prognostication, the latest from Spain and Greece, and a good payday for a powerful bankster.
Warnings of a ‘lost generation’
Amazing how fast all those rose-colored glasses have lost their hue.
Where once economists were hailing the Great Recovery, there’s no hint of optimism in the latest pronouncements from th World Economic Forum.
From the BBC:
Preventing a “lost generation” of workers unable to get jobs is one of the world economy’s biggest problems, according to delegates at the World Economic Forum.
One university professor said the US, the world’s largest economy, is experiencing an “unemployment crisis”.
Countries in the West are experiencing high levels of youth unemployment.
“People will accept austerity if we also talk about growth,” Danish Prime Minister Helle Thorning-Schmidt said.
The region is struggling with a sovereign debt crisis, which has badly affected economic growth as governments have implemented tough spending cuts.
Data this month showed unemployment in the eurozone was at a record high in November, at 10.3%. There were 16.3 million people in the bloc out of work.
Spain, for example, has the highest unemployment rate in Europe, at 22.9%.
“It is also very important that we remember people are willing to make sacrifices, but not be sacrificed,” Mrs Thorning-Schmidt said during a session on rebuilding Europe.
Read the rest.
Spain to Merkel: ‘Sister can you spare a dime?’
Spain’s recently elected conservative prime minister went to Europe’s most powerful conservative, looking for a handout.
From euronews:
Looking for ideas on how to help Spain’s struggling economy new Prime Minister Mariano Rajoy met with Chancellor Angela Merkel in Berlin on Thursday.
Merkel welcomed a proposal by Rajoy for surplus European funds to be used to generate jobs, particularly for young people.
Rajoy said: “The most important aim of our country for the next year is to create jobs and assure economic growth, that’s the basis of prosperity in Spain and also for the perpetuation of public services like education and pensions.”
At an EU growth summit on Monday, Rajoy will push for unused European structural and social funds money to go to creating jobs and training opportunities
Read the rest.
EU taxpayers to cough up cash for Greek bailout
We didn’t say “for Greece,” because the money’s not for Greece. It’s for investors who gambled on Greece and lost. None of the cash is going to Greece. It’s going to banksters, state and private, and institutional investors.
None of it’s going to help jobless Greeks, and the families who are abandoning their babies in desperation.
All of which is context for this from The Guardian’s Phillip Inman:
European Union officials are preparing to concede that eurozone taxpayers may need to make bigger sacrifices on their loans to Athens or risk a string of sovereign collapses across the continent.
Under pressure from the International Monetary Fund and some EU leaders, Brussels said it may need to go further than the €30bn (£25bn) write-off that was put in place last year as part of a package of measure to save Greece from going bust – a substantial part of which came in the form of writedowns on loans from the European Central Bank (ECB).
The concession came as private sector creditors renewed talks in Athens over the €100bn due to be written off by banks and other lenders.
The head of the International Monetary Fund, Christine Lagarde, urged all parties to make concessions to bring an end to weeks of wrangling that has caused turmoil on international markets. Lagarde said the public sector must consider a bigger write-off following an assessment by the IMF that Greece was in a worse situation than previously thought. Its economy has been hit hard by the severe austerity measures adopted last year.
Read the rest.
And it’s not just Greece that’s panhandling
No, it’s those private banks, too.
From EurActiv:
Greece’s creditor banks argue they cannot fulfil their part of the deal unless the EU first commits the money.
“All Greek [political] parties must agree to the [austerity] measures and a new programme, independently of the upcoming elections,” German Finance Minister Wolfgang Schäuble told journalists after a meeting of EU finance ministers in Brussels.
Greece is expected to stage snap elections before 8 April. Antonis Samaras, whose centre-right New Democracy party governs in coalition with technocrat Prime Minister Lucas Papademos, has openly criticised some austerity measures prescribed by international lenders.
Opinion polls suggest Samaras would win an election, but he would need to form a coalition with other parties to gain a mandate for governing.
Europeans want commitments from Greek political parties before the Continue reading →