The 17-country eurozone saw it’s highest unemployment rate Wednesday. September’s figures were a punch to the gut of the eurozone economy. This is a sign the Euro is not improving but rather deteriorating further.
Five of these seventeen countries are already in recession: Spain, Portugal, Greece, Italy, and Cyprus. Other countries could possibly join them soon.
The EU’s statistics agency, the Eurostrat reported that 18.49 million people were unemployed in September. This is the highest unemployment rate on record considering data going back to 1995.
The Spain and Greece situations are not stagnant. Wednesday, Greece presented new austerity measures. Over the next two years, Greece plans on implementing spending cuts and tax hikes. Those providing aid to Greece are demanding such implementation in exchange for providing aid for Greece.
Concerning Spain, Prime Minister Mariano Rajoy said Wednesday that he saw no immediate need to ask for help, according to the Washington Post.
Spain, whose unemployment rate hit 25% recently is optimistic about it’s future.
“The longer Prime Minister Mariano Rajoy puts off asking for aid from the euro zone, the greater the risk of further financial turmoil and an even worse recession in Spain, analysts say.” According to Reuters.
It could be possible that Spain will be asking for a bailout coming into the new year. Currently, some say Spain’s borrowing costs are at unsustainable levels.
The way some are looking towards a Spanish bailout seems similar to how people were looking forward to the QE3 announcement. At the EU Summit, there were speculations of bailout progress. It looks like for the time being, Spain could be stepping out of the spot light.
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