The euro dipped below $1.29 on Wednesday as investors waited for unemployment data from Germany, the eurozone's largest economy. The data is expected to shed light on the state of the German economy, and could influence the European Central Bank's next policy move.
Unemployment has been a growing problem for the eurozone despite the financial markets stabilizing. The steady rise in jobless people has created quite a bit of resentment among member states' populations. 4
French President Francois Hollande spoke on Tuesday about this growing problem, saying that the lowering exceptionally high rates of youth unemployment should be top priority for EU officials.
About one quarter of people under the age of 25 are unemployed in the eurozone, which is nearly six million people. In countries which received bailouts, the jobless rates for youths are as high as 60 percent. The problem, Hollande said, could become a roadblock for the future of the eurozone if it isn't dealt with efficiently. As the next generation becomes more disillusioned, the future of the region becomes more uncertain.
Hollande's talk in Paris prefaced a meeting between German Chancellor Angela Merkel and Mr. Hollande on Thursday. The two leaders will meet to prepare for a European summit set for the end of June, where unemployment is expected to take center stage.
To tackle these problems, Hollande said the region is looking to implement a 6 billion euro plan which would focus on allowing more mobility for eurozone workers and better training programs.
The New York Times reported that under the plan, young people would have access to money for language training and moving costs to allow them to search a wider job market. Apprenticeship programs and new job training methods would also play a part helping the younger generation get into the labor market.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Copyright Benzinga. All rights reserved.