Netherlands on Edge of Economic Crisis; Unemployment Surges as Home Prices Collapse

Netherlands on Edge of Economic Crisis; Unemployment Surges as Home Prices Collapse

Even €46 billion in austerity measures are apparently not enough to remain within the EU debt limit. Although [Dutch Finance Minister and Euro Group Chief] Jeroen Dijsselbloem has announced another €4.3 billion in cuts in public service and healthcare, they will only take effect in 2014.

"Sticking the knife in even more deeply" would be "very, very unreasonable," Social Democrat Dijsselbloem told German daily Frankfurter Allgemeine Zeitung, in an attempt to justify the delay.

Dijsselbloem's Hypocrisy 

Note how Dijsselbloem is ready and willing to stick austerity measures of any kind on every other eurozone economy but his own.

Unemployment Surges as Home Prices Collapse 

The Australia Macro Business blog picks up the story in Dutch unemployment surges as house prices fall.

 Earlier this month, I posted on how the Netherlands was facing a potential economic crisis on the back a severe housing correction, whereby house prices fell by -8% in the year to December 2012 to be down -18% since prices peaked in 2008, pulling many Dutch households into negative equity (see next chart).



The release of labour force data overnight suggested the Netherlands’ economy has deteriorated further, with Dutch unemployment increasing to 8.1%, a level not seen since the 1980s, with job losses most accute in the building industry (see next chart).



The jump in unemployment follows the contraction in the Dutch economy, whereby GDP has contracted by -1.2% over the past year (see next chart).



The sharp deterioration in the Dutch economy is placing pressure on the central government to abandon austerity measures, which it has pursued for the best part of two years and is partly responsible for the contraction in demand.

Best is Yet to Come

As noted, the hypocrites want austerity for everyone but themselves. Regardless, the Netherlands economy is headed for a much sharper contraction as is France.

Simply put, the entire eurozone is in deep trouble even as the nannycrats insist the worst is behind. Ironically, the best is indeed ahead, and the best is a breakup of the eurozone.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Read more at http://globaleconomicanalysis.blogspot.com/2013/04/netherlands-on-edge-of-economic-crisis.html#oIlUIkQ2R5J9fk9s.99

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Minister of Spain's Housing Board Cites "Mortgage Scam, Illegal Evictions" Calls for Mortgage Debt Reduction

The Minister of Public Works and Housing of the Government of Andalusia, Elena Cortes Jimenez, advocates a Reduction in Mortgage Debt for All Spanish Families.

Here is a Mish-modified synopsis.

Elena Cortes Jimenez, Minister of Public Works, claims eviction proceedings lead to further drying of mortgage lending, making it harder for young people to access home ownership.

Jimenez proposes a "haircut" on private debt, in particular, mortgages.

The minister stressed that "Spain has carried out 440,000 illegal evictions due to a mortgage scam, and it is absolutely necessary to have truth, justice and reparation for these families who have been in that situation."

Jimenez once again defends the need for a restructuring of private debt. In his view, Congress of Deputies, and specifically the PP, have the "golden opportunity" to approve the initiatives on evictions and retroactive payments.

End Mish-Translated Synopsis

Good Grief!

Exactly who is supposed to pay for this "golden opportunity" to forgive debt?

Oh wait, I forgot. Spain's insolvent banks are supposed to provide the loan forgiveness.  Or was it the generous nannycrats in Brussels?

Mike "Mish" Shedlock

http://globaleconomicanalysis.blogspot.com

Read more at http://globaleconomicanalysis.blogspot.com/2013/04/minister-of-spains-housing-board-cites.html#1w1qJjmELVzJpigg.99