Greek Unemployment Hits New Record; People Employed Drops To Record Low; 61.4% Of Youth Without A Job
Submitted by Tyler Durden on 02/13/2014 08:08 -0500
Something funny happened on the Grecovery: the Grecession.... Actually, make that the Gepression. In a nutshell - according to Elstat, Greek unemployment in November rose to a record high on both a seasonally adjusted and unadjusted basis with 28% of the labor force without a job, the number of people unemployed rose to a record high 1.382 million, even as the number of labor inactive people keeps rising, hitting 3.377 million and on its way to catch up with the rapidly declining 3.55 million people employed, which incidentally in November also posted a new record low. And tying it all together was the Greek youth unemployment rate which posted a record high for November at 61.4%, and after a few months of declines which gave some hope that things are indeed improving is back to its old, soaring ways.
Greek employment table:
Record low number employed:
Record high number unemployed:
Record high unemployment:
Greek youth unemployment: the latest trend is no longer your friend.
Letta Resigns; Meet Italy's New Unelected Prime Minister
Submitted by Tyler Durden on 02/13/2014 12:16 -0500
Matteo Renzi's Democratic Party has voted to back his proposal fore a new government... and Prime Minister Letta has resigned.
- *DEMOCRATIC PARTY VOTES IN FAVOR OF RENZI PROPOSAL FOR NEW GOVT
- *ITALY PREMIER LETTA SAYS HE WILL RESIGN
This will bring the 65th government in Italy since World War II and the 3rd consecutive government that would not have been elected (the last elected Prime Minister was Berlusconi in 2008).
Renzi's speech in preparation for the vote was farcical and confused:
- *RENZI SAYS ITALY CANNOT CONTINUE TO LIVE IN UNCERTAINTY
- *RENZI SAYS ITALY NEEDS TO EXIT SWAMP, NEEDS CHANGE (but same coalition parties)
- *RENZI SAYS NEW ELECTIONS WOULDN'T GUARANTEE CLEAR MAJORITY
- *RENZI SAYS THIS IS TIME TO BE RESPONSIBLE, TAKE RISKS
While Letta had his "57-page plan" of reforms, Renzi does not differ greatly (and thus there will be no change) as the confrontation hinges on who is better placed to implement them.Markets are rallying on the news.
Mr. Renzi's own proposals don't contrast with those of Mr. Letta. The confrontation hinges on which of the two are better placed to implement their plans....Ten months ago [Letta] gave his government—Italy's first left-right coalition since the late 1940s—18 months to carry out an ambitious program including constitutional reform, a new electoral law and measures aimed at bolstering what has been the euro zone's weakest economy since 2000. Progress has been slow and, as Mr. Letta lamented on Wednesday, many laws have been passed but their enactment decrees never promulgated...."We would regard a Renzi premiership as a positive development for Italy, possibly imparting a new drive to the reform agenda," Citigroup C -0.90% analysts said in a note.On the other hand, he risks having to operate within the current parliament without a clear electoral mandate, which could compromise both his influence and his image as a novelty in Italian politics, said J.P. Morgan analyst Alex White....Italy's last elected prime minister was Silvio Berlusconi, who won an ample majority in the 2008 elections.
Meet the new unelected PM of Italy (via BBC),
Matteo Renzi, the charismatic young mayor of Florence, was elected last December as leader of Italy's most powerful political organisation, the centre-left Democratic Party (PD) - the dominant faction in the current coalition government.Matteo Renzi is just 39 years old and has never been a member of parliament. Now he has called publicly for a new government, directly challenging Prime Minister and party rival Enrico Letta.The young party leader is sometimes called Il Rottamatore ("The Scrapper"). The nickname refers to his call to scrap the entire Italian political establishment, which is widely regarded as discredited, tainted by corruption, and as having failed the nation decade after decade.His rise has been seen as a sign of much-needed generational change, and he enjoys by far the highest approval rating of any politician in the country. He is in his own words "hugely ambitious".Mr Renzi presents himself as a break with the past in every way, BBC Rome correspondent Alan Johnston reports.He exudes a restless energy. He likes to pace the stage in black jeans and attends meetings in shirt sleeves. He travels around either in a small car or on a bicycle.He is relaxed and easy - fast and fluent as he speaks without notes, ranging across Italy's many problems, and offering broad-brush solutions.He always seeks to instil a belief that politics can be done differently, that change is possible.He once finished a televised debate by saying he would offer something very rare in Italy: "Hope.""People are weary and disillusioned," he said. "They don't believe anymore. I believe, and that's why I do politics - because I still believe."
Italian Stocks & Bonds Fall As Government Collapse Looms
Submitted by Tyler Durden on 02/13/2014 09:28 -0500
Having rallied yesterday and totally ignored the fact that Letta's 10-month-old government was about to collapse, Italian equity and sovereign bond markets are falling this morning by their most in two weeks. The main bone of contention for Renzi-Letta fight is jobs and growth - there is none of either - and while Prime Minister Letta assures that the Italian economy grew in Q4 (GDP data to be released tomorrow) for the first time in 10 quarters, as Bloomberg's Niraj Shah notes, real GDP is still smaller than it was in 2000. Letta has just canceled his UK visit (planned for 2/24) and did not take part in the Democratic Party meeting with a Renzi friend saying "[Letta] will resign."
Premier Enrico Letta said Thursday that he would not attend a meeting of his centre-left Democratic Party (PD) that has been called to decide whether it should continue backing his coalition government. New PD leader Matteo Renzi may call on the party to pull its support for Letta so he can take over as premier. Letta said he would not go to the meeting so that his party could "decide with serenity".
However, with unemployment at record levels, we suspect few will care about some manufactured, goodwill-enhanced GDP print. Italians are, of course, used to the farce that is politics - there have been 64 government since 1945.