- Michael Hewson, markets analyst at CMC Markets
The number of people in Spain, which are officially registered as unemployed, has edged up toward five million last month, a sign country's recession continues unabated. Spain's number of the jobless jumped 1.5% in November, compared with a month earlier, or by 74,296 people, leaving 4.9 million people out of work, report by the Labor Ministry showed on Tuesday. The overall unemployment rate stood at 25% in the third quarter, while each second person aged 18-14 was looking for the job. In the meantime, the government has finally asked for a full bailout, and the Eurozone finance ministers have approved €39.5 billion in aid that will be ready by mid next week. The money will be used to recapitalise country's crippled banking sector.
"One can't help feeling that the amount being asked for could be one of many requests over the coming months," said Michael Hewson, markets analyst at CMC Markets. "With the aid being conditional on sweeping job cuts in excess of 6,000, and bank branch closures across the country the effects are likely to be felt across the entire Spanish economy, which is already seeing tax revenues shrink sharply."
"The implementation of the program is on track," said Jean-Claude Juncker, the Luxembourg prime minister.
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