Unemployment up and inflation down in the eurozone

ECB rate cuts expected

The latest unemployment figures in the Eurozone are really, really bad. In fact, they are – again – the worst they've ever been:

That's an average unemployment rate of 12.1 per cent in the eurozone (and 10.9 per cent in the wider EU). But that high rate disguises enormous disparities: unemployment in Greece is 27.2 per cent; unemployment in Spain is 26.7 per cent; but in Austria, just 4.7 per cent of people looking for work can't find it, and in Germany it's only 5.4 per cent.

At the same time, inflation in the eurozone has been plummeting. In the latest quarterly data, the all-items index is estimated to have grown by just 1.2 per cent over the year – well below the 1.6 per cent which was predicted.

That offers a ray of hope for the continent. Unlike the (claimed) British plan of fiscal restraint and monetary activism, Europe has experienced crippling austerity without any major monetary policy designed to ease the burden. Typically, that reluctance is ascribed to the stereotypical German fear of inflation. Regardless of whether or not the blame truly lies at the feet of Germany – and whether the fear of inflation is just a hangover from the harrowing experience of hyperinflation in the 1920s, or something more concrete – the ECB is an exceptionally inflation-averse central bank.

All eyes will be on the bank later this week, then, as it announces whether or not it will be cutting rates for the first time in almost a year. It's bumping against the lower bound, since the bank already pays 0 per cent on overnight deposits; but the rate it charges for overnight loaning is still at 1.5 per cent. And its headline rate, which it charges to the majority of the banking system, is still at 0.75 per cent, leaving ample room for a cut.

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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It's Gary Lineker 1, the Sun 0

The football hero has found himself at the heart of a Twitter storm over the refugee children debate.

The Mole wonders what sort of topsy-turvy universe we now live in where Gary Lineker is suddenly being called a “political activist” by a Conservative MP? Our favourite big-eared football pundit has found himself in a war of words with the Sun newspaper after wading into the controversy over the age of the refugee children granted entry into Britain from Calais.

Pictures published earlier this week in the right-wing press prompted speculation over the migrants' “true age”, and a Tory MP even went as far as suggesting that these children should have their age verified by dental X-rays. All of which leaves your poor Mole with a deeply furrowed brow. But luckily the British Dental Association was on hand to condemn the idea as unethical, inaccurate and inappropriate. Phew. Thank God for dentists.

Back to old Big Ears, sorry, Saint Gary, who on Wednesday tweeted his outrage over the Murdoch-owned newspaper’s scaremongering coverage of the story. He smacked down the ex-English Defence League leader, Tommy Robinson, in a single tweet, calling him a “racist idiot”, and went on to defend his right to express his opinions freely on his feed.

The Sun hit back in traditional form, calling for Lineker to be ousted from his job as host of the BBC’s Match of the Day. The headline they chose? “Out on his ears”, of course, referring to the sporting hero’s most notable assets. In the article, the tabloid lays into Lineker, branding him a “leftie luvvie” and “jug-eared”. The article attacked him for describing those querying the age of the young migrants as “hideously racist” and suggested he had breached BBC guidelines on impartiality.

All of which has prompted calls for a boycott of the Sun and an outpouring of support for Lineker on Twitter. His fellow football hero Stan Collymore waded in, tweeting that he was on “Team Lineker”. Leading the charge against the Murdoch-owned title was the close ally of Labour leader Jeremy Corbyn and former Channel 4 News economics editor, Paul Mason, who tweeted:

Lineker, who is not accustomed to finding himself at the centre of such highly politicised arguments on social media, responded with typical good humour, saying he had received a bit of a “spanking”.

All of which leaves the Mole with renewed respect for Lineker and an uncharacteristic desire to watch this weekend’s Match of the Day to see if any trace of his new activist persona might surface.


I'm a mole, innit.