Though the euro crisis appears to have mostly faded from the headlines lately, the economic trouble in Europe isn’t going anywhere.
Perhaps one of the best illustrations of this is the array of staggering youth unemployment rates across the eurozone, many of which are at all-time highs.
In a note to clients today, Societe Generale’s cross-asset strategists warn that given the high rates of youth unemployment, euro-area governments still face very real threats to stability:
Social unrest still a concern…
Economic crisis in developed countries have reinforced unemployment, especially with the youth. In 2013 southern economies plagued with large unemployment will remain in a recession marked by a lack of consumer confidence and greater poverty. With lower population support, large upheavals could threaten government stability. Greek finance minister recently said that Athens still faces “the possible risk” of exiting the single currency if political unrest blocks reforms. Social unrest is also looming in many emerging markets, where income inequality has increased or remained high since the 1980s. Distribution inequalities and corruption are among the main concerns of the Chinese population according to recent surveys.
It seems likely that this has the potential to re-emerge as a big story on the eurozone front in 2013.