Eurostat Hackday (Photo credit: okfn)

Angela Merkel, chancellor of Germany. (Photo credit: Wikipedia)

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Paul Krugman, Laureate of the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2008 at a press conference at the Swedish Academy of Science in Stockholm (Photo credit: Wikipedia)

The is an important article in the FT citing the latest Eurostat‘s statistics for unemployment. Check it out!

Eurozone jobless rate hits record high as inflation falls – FT.com.

Even if the ECB cuts it’s interest rate this week, it will have almost no impact on Southern Europe where policies of austerity have caused record unemployment.

The only real answer is to relax up on austerity and this requires the German Government to change their policy. It is questionable whether German Chancellor, Angela Merkel,  will act ahead of the German election in September.

Nobel winning economist Paul Krugman has this week talked of a severe recession and the desperate need for fiscal reflation.

Unfortunately, Euro countries must turn to German for their lead and Germany is reluctant to reflate.

However, George Osborne and David Cameron would be wise to perform a U-turn before they are impaled on austerity.

What do you think?

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