Global: IMF Chief says young unemployment can delay recovery
IMF Chief Christine Lagarde warned over the risks of a delayed recovery if Eurozone countries don’t manage to reduce their unemployment rates, especially those of the young. Lagarde said that high young unemployment reduces the possibilities of on-the-job learning and can hold a whole generation out of the labor market, as The Guardian reported.
United States: U.S. budget deal could usher in new era of cooperation
Democratic Senator Patty Murray and Republican Representative Paul Ryan presented a bipartisan budget proposal a month before the January 15 deadline when funding to run the federal government would expire.
United Kingdom: We are in a housing bubble, claims economics professor
BBC reports that, according to a research by James Mitchell, an economics professor from Warwick University, house prices in the Uk are overvalued compared to households’ incomes. As a consequence most regions in the country are already in a house-price bubble. According to his study, London is the most overvalued region, followed by Wales and north-west England.
Cyprus: Eurogroup approves next tranche of financial aid
As the Cyprus Mail reported, yesterday the Eurogroup endorsed the disbursement of the next tranche of financial assistance to Cyprus, which was conditional to the privatization of Semi Government Organizations. The Eurogroup stated that, “macroeconomic conditions are developing in line with program projections, albeit uncertainty remains high. Fiscal consolidation is advancing in line with the agreed consolidation process.”
Ukraine: Prime Minister Azarov asks for EU financial aid
Ukraine’s Prime Minister Mykola Azarov asked the EU for EUR 20 bn in order to avoid a potential default following the signature of the DCFTA agreement. The EU has not responded yet to the Ukrainian government. According to the Kyiv Post, Azarov claimed that, “the government also favors the soonest possible signing of the agreement, but we want to provide conditions to minimize losses for the Ukrainian economy.”