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With European Central Bank (ECB) providing the necessary support, European Government and European investment banks should deploy policies, which would bring back Europeans back into jobs.
Inflation through monetary easing may not be the ideal form of inflation, which everyone is so looking forward to achieve. Weaker Euro is importing inflation, which is not ideal for an area where still more than one in every ten remains unemployed.
- According to latest report from Eurostat, employment rose only by 0.8% in the first quarter from a year ago and quarterly rise is pretty lacklustre at 0.1%.
- Some members in Euro zone still bleeding employment. Greece lost employment by another -0.8% in the first quarter and Malta lost by -0.4%.
- Two of Euro zone's biggest economies, Germany and France couldn't increase employment further. While German unemployment rate is low around 6.4%, for France it is still above 10%.
If European governments fail to tackle the unemployment level, situations like Syriza will keep appearing from time to time.
Moreover only bringing back people to payroll would ensure demand driven inflation in Euro zone.
