European debt and labor risk

It’s more than likely that the Eurozone’s sovereign debt crisis will continue to exert considerable economic and fiscal pressure in 2012. But, just how this will materialize for individual countries will vary, and is detailed in our new Global Market Brief and Risk Index, compiled with the Eurasia Group.

Many of these countries face both a debt problem and a growth problem, and the potential solutions to one may exacerbate the other. Many governments—including in the UK, France, Italy, and Spain—are pursuing austerity programs in an effort to reduce their deficits and contain sovereign debt levels. But the required spending cuts and tax increases may further slow already struggling economies. On the other hand, few governments have the financial resources to embark on aggressive stimulus spending to jump-start their economies.

Several governments are turning to structural reform of their economies, either on their own initiative (Sweden, Denmark, Hungary, and Poland) or under pressure from markets and lenders (Italy and Portugal). But pursuing serious economic reforms is especially hard in tough economic times. So, how will these issues affect the job market and the outlook for employment generally? To find out more about the key trends we’re seeing across the region, register today to get your free copy of the full report.
___________________________________________________________________________________________ ^{Photograph by Flickr User Mikael Marguerie}