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March 1st, 2012 
FAKE NEWS for the Zionist agenda The 17-nation currency area of the Euro zone has experience a rise in the number of people out of work to about eleven percent in January.
Experts say the rise in unemployment indicates that the EU states are heading for their second recession in three years.
Press TV has conducted an interview with Marco Pietropoli, economist at RM Wealth Management, to further discuss the issue. The following is a transcription of the interview.
Press TV: Unemployment rate in the Euro zone has hit 10.7 percent in January, and that’s an all-time high. But in Spain it’s 23.3 percent, in Greece 21 percent, Portugal 15 percent, in Ireland 15 percent, with almost 7.5 percent in Germany. It seems average Europeans are paying a very high price for this mismanagement of their economies. What is your analysis?
Pietropoli: Yes, I think with those there’s a lot more pain to come in the grand scheme of things. Many Western countries, not just the Europeans, have been living well beyond their means for many years and there has to be a period of austerity to rebalance the situation.
It’s going to be painful because the public sector of many European countries has become a very significant proportion of overall GDP. And if you cut that quite drastically, as it needs to happen in many countries, it has a very dramatic effect.
Of course, the problem is that if you carry on cutting in a downward economic trend, you can make the situation worse. So, there’s no obvious end in sight to this in the near term.
Press TV: Especially given the recent data regarding manufacturing in which it has decreased. As a result we have job losses because of that, which is pushing more people into poverty. We just saw violent clashes in Spain on Thursday between students and police, something that happened a week earlier also. What could be the social implications of this situation?
Pietropoli: Well, the social implications are very high, unemployment coupled with an erosion of real wages because, effectively, even though the statistics would suggest that there’d been no inflation of course, everybody knows that there has been inflation over the last few years, and in many countries wages have been relatively flat or rising only modestly.
But the cost for living especially for food and transportation has been rising substantially. There’s a continuing squeeze on real incomes which is going to take its toll on overall economic conditions as well.
GMA/JR
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