Greece: Unemployment and Pessimism Surging

Greece’s unemployment rate eclipsed 24 percent in June, up 7 percent from a year ago. The official jobs data was published on Thursday.

The Greek Statistical Authority said the number of jobless people rose 34,000 and that more than 1.2 million Greeks are now out of work.

Greece’s coalition government is working to finalize a new austerity package for 2013 that will cut another €11.5 billion from the budget, including further reductions in benefits and pensions. The European Union has also said that it will not provide the bailout package unless Greeks work a six-day work week.

Longer work weeks and still further budget cuts are terrifying to many Greeks, who are already living in one of the world’s most tumultuous economies. But the Greek government must make life even harder for its people if it wants to receive funds from Germany and its other creditors.

Greece’s multiplying hardships are approaching a boiling point. Greece’s deteriorating economy will ultimately allow Europe to become even more centralized and more powerful. Read “Europe’s Crises Are Back!”, where columnist Brad Macdonald analyzes four upcoming events that could potentially transform the EU.