The euro-zone unemployment rate has unexpectedly jumped to 8.5 percent -- the latest sign that the 16 euro-zone economies are deteriorating faster than expected amid the global financial downturn.
Economists are revising their full-year forecasts
The EU statistics office said unemployment in the euro zone rose to 8.5 percent in February. Some 319,000 more people were seeking work in the euro zone than in January, when unemployment was at 8.3 percent.
Analysts said they expect the unemployment rate to reach about 10 percent later in the year, as the recession deepens.
More pressure on ECB
The latest figures are likely to increase the pressure on the European Central Bank, which was set to meet Thursday, April 2, to discuss lowering euro-zone interest rates.
On Wednesday, the European Union's statistics office, Eurostat, said the jobless rate across the entire 27-nation bloc is now 7.9 percent, up from 7.7 percent in January.
Unemployment is highest in Spain at 15.5 percent, Latvia at 14.4 percent and Lithuania at 13.7 percent. All three have been hit hard by the bursting of a housing bubble and a sharp economic downturn.
Officials in Bulgaria have confirmed that a blast at a local factory killed all employees working at the time of the incident. The explosion was so powerful that it flattened the facility.
Pierre Moscovici has vowed to uphold EU budget rules if confirmed as the bloc’s economic affairs commissioner. He faced a European Parliament worried about his spending record as French finance minister.
A top German court has decided to wait until 2015 before ruling on the proposed expansion of the Elbe River. Hamburg wants an easier waterway for big ships, but environmental groups fear the worst for the ecosystem.
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