Reuters sees increase of unemployment in Southern Europe

Queues of the unemployed in Greece, Spain and Portugal will grow even more in 2014, more than 40 economists that took part in a Reuters poll predict. Especially for Spain and Greece, they estimate that unemployment in 2015 will remain at a level greater than 27%.

According to the survey, the southern European countries are suffering the consequences of the austerity policies more than anywhere else in the world, which have caused much heavier financial and human costs than predicted by its advocates in 2010.

Unemployment in the Eurozone reached 12.2% in May, leaving more than 19.3 million unemployed, "that is a population equal to the people of Austria and Belgium,» Reuters notes.

"The unending fiscal austerity just did not work and unemployment, especially in young people, remains a serious problem for the Eurozone," Merrion Stockbrokers economist in Dublin says and adds that in the absence of measures for the development, unemployment rates in the countries of the periphery will remain elevated for a certain period.

Last week, another survey by Reuters had named youth unemployment as the most serious threat to the Eurozone economy, along with the banking system of the EU.

The survey showed that Portugal and Spain are expected to be able to return to marginal growth in 2014 and Greece can emerge from the recession in 2014, which  has been affecting it for six years.

Hopes from exports

According to the survey, exports are the only development force for Spain's economy that is slowed down by the sharp decline in consumption and the ongoing crisis in the property market. "But it's mainly the United States leading the global economy at the moment,» Reuters notes.

Regarding Greece, economists estimate that it will remain in recession for a 6th consecutive year, with its economy shrinking by 4.5% in 2013.

However, Reuters adds that the country is facing serious political problems. "The government majority has shrunk and turmoil continues, especially after the approval of a bill that provides for the dismissal of 25,000 public sector employees in eight months."