Despite the recent surge in German GDP and export growth, and the ongoing structural reforms, German unemployment remains stubbornly high.
German unemployment was unchanged in May at close to a post-World War II high, dealing a blow to Chancellor Gerhard Schroeder’s chances of re-election.
The jobless rate, adjusted for seasonal swings, held at 11.8 percent, close to [...]

The euro fell to a seven-month low in Asia and had the biggest fluctuation of any currency on concern the rejection of a proposed European Union constitution will slow the region’s economic integration…………
Against the dollar, the euro fell to $1.2370, the lowest since Oct. 14. It bought $1.2390 at 2:05 p.m. in Tokyo from $1.2475 [...]

The euro continues its fall against the dollar today after yet another opinion poll showed French opposition to the European Union constitution continues to strengthen before Sunday’s referendum. Against the dollar, the euro fell to $1.2545 at 8:33 a.m. in London, from $1.2601 late yesterday in New York. The euro wasn’t [...]

The Federal Reserve should continue to raise U.S. interest rates but the European Central Bank should ease euro zone monetary policy, the OECD says in its semi-annual Economic Outlook out today. Euro zone growth forecasts of 1.2 % for 2005 and 2.0% for 2006 are based on the assumption that the ECB, which [...]

Economics Commisioner Joaquim Almunia is reportedly rolling his sleeves up. He is apparently preparing to use Italy’s continuing excess deficit as a test case, to show the way the new SGP will be applied. Forgive me if I am a little skeptical, but then again a French no on Sunday may leave him with little [...]

Unemployment continues a slow but steady rise in the UK. More eviedence of the slowing economy?
U.K. jobless claims rose for a third month in April and wage growth eased to the slowest in almost a year amid signs expansion in Europe’s second-largest economy is faltering.
The number of people claiming unemployment benefit rose by 8,100 to [...]

Things may be about to liven up a bit for Economics Commissioner Joaquim Almunia: it seems probable that the Italian deficit will be nearer 4% than 3% this year, and Portugal may even clock-in something of the order of an incredible 6 to 7%.
The worsening outlook in the two countries will rekindle the debate about [...]

Apropopos this post Edward’s post on fistful a couple of days ago, an observation. I find it remarkable how when people discuss these issues, (the working age population declining) no one ever talks about female participation in the work force. In some euro countries it’s pretty low, and an increase could make a real difference. [...]

The Observer reports that SNCF may be about to make a move to take control of Eurotunnel. John B covers some of the background to Eurotunnel’s current problems at Living in Europe

The European Commission has approved the merger of Air France and KLM