Economics

Unemployment rises in EU as profits drop

Article published on the 2009-11-03 Latest update 2009-11-03 12:39 TU

European Monetary Affairs Commissioner Joaquin Almunia speaks on new economic forecasts
(Credit: Reuters)

The European Commission reported Tuesday that unemployment in the eurozone countries will rise to 10.7 per cent next year, and will climb to almost 11 per cent in 2011. Additionally, there was bad news for Spanish workers when the country's unemployment figures rose for the third month in a row.

 Spain estimated its unemployment rate at almost 18 per cent at the end of last month, and the labour ministry says it has risen another two percent.

In banking, the Swiss giant UBS announced losses of 373 million euros for the third quarter but said it expected its situation to improve in the coming months.

And in the UK the treasury said that Royal Bank of Scotland and Lloyds would be broken up in order to promote greater competition, but will also receive an injection of 30 billion pounds.

The reinsurance company Swiss Re announced a return to profit for ITS third quarter with a net income of 221 million euros.

But carmaker BMW said net profit had dropped by 73 percent compared to the same time last year.

On a positive note, Europe's economy will rebound next year from a deep slump and accelerate in 2011, according to the Commission. This move should increase major deficit cuts across the 27-nation bloc from 2011.