Pressure is on the European Central Bank (ECB) this week after new statistics show unemployment figures are still rising across the European Union.

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Pressure is on the European Central Bank (ECB) this week after new statistics show unemployment figures are still rising across the European Union.

The FT reports:

Attention is back on the ECB’s role in helping the eurozone emerge from its debt crisis, after last week’s EU summit agreed that the central bank should play a role in common bank supervision.

Few analysts expect the ECB to offer politicians a quid pro quo this week by giving further direct support to banks or governments such as more cheap loans or bond buying.

But markets are pricing in the likelihood that the ECB will respond to worsening economic data by cutting its main policy rate to below 1 per cent for the first time – a step that should help peripheral eurozone banks that rely on central bank borrowing.

The Eurostat report that collated the data said:

The lowest unemployment rates were recorded in  Austria, the  Netherlands, Luxembourg and Germany, and the highest in Spain and Greece.

Compared with a year ago, the unemployment rate fell  in eight member states, increased in eighteen, and
remained stable in  Hungary. The largest falls were observed in  Estonia, Lithuania and Latvia.

 

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See also:

• Cameron criticised for doing the “hokey cokey” over an EU referendum 3 July 2012

• Hollande and Merkel move closer – but remain divided on solution to euro crisis 29 Jun 2012

• Graduate unemployment doubles in five years 28 Jun 2012

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Between May 2011 and May 2012, the unemployment rate for males increased  from 9.5% to 10.3% in the EU27. The female unemployment rate rose from 9.6% to 10.4% in the EU27.