Europe Reacts To Obama-rouhani Phone Call With Optimism

Spain, Greece The situation for the unemployed is particularly bleak in Spain and Greece , where the Organisation for Economic Cooperation and Development expects jobless rates to remain above 25 percent in 2014. While unemployment in Spain fell for the first time in two years in the second quarter, net job creation requires at least 1 percent year-on-year economic growth, Economy Minister Luis de Guindos said this month. That level wont be reached before the final quarter of 2014, according to economists surveyed by Bloomberg. In Italy , where the OECD sees unemployment at 12.5 percent next year, data released at 10 a.m. in Rome tomorrow will show whether joblessness still is near a May all-time high of 12.2 percent. It stood at 12 percent in July. Unemployment in Europe is a social tragedy and we need to address it, OECD Secretary-General Angel Gurria said in July when presenting the organizations annual employment outlook . German Strength Earlier this month, Air France-KLM (AF) Group, Europes biggest airline, scrapped a plan to break even at its main French unit this year, putting 2,800 jobs in the country at risk. France s unemployment still looks to be gradually creeping up, economists at HSBC Holdings Plc in London said in a note to customers. On the euro area, they said that the unemployment rate has been unchanged for five months and that this may have continued in August as the labor market appears to have stabilized. While most Southern European economies are struggling to provide work for the unemployed, the jobless rate in Germany , the regions largest economy, remained at 6.8 percent in September, according to 31 estimates in a separate Bloomberg survey . Thats close to a two-decade low of 6.7 percent. The Federal Labor Agency is due to publish these data tomorrow at 9:55 a.m. in Nuremberg. A robust job market and Germanys economic strength in the midst of the euro areas debt crisis helped Chancellor Angela Merkel s Christian Democrats take the largest share of the vote in Sept. 22 elections.

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“The smile offensive conducted by Iran’s President Hassan Rouhani at the U.N. has not been greeted with smiles in Israel,” said Michael Herzog, a retired brigadier general in the Israel Defense Forces in an opinion piece in the British newspaper, The Guardian. “Iran’s history of deceit on this issue calls for rephrasing President Reagan’s famous reference to the Soviet Union: ‘Do not trust, but verify.’ Give Rouhani a chance, but test him by his deeds. Israel neither trusts Rouhani nor fully relies on President Obama’s resolve,” Herzog writes. France, also skeptical, called on Rouhani to shorten the time period to implement a nuclear agreement over concerns that the longer negotiations go on, the more progress Iran could make in its atomic capabilities. Zarif said last week that the implantation could take a year, while Rouhani contradicted him by saying it would take three to six months. European and Arab leaders are concerned that Rouhani is only playing for concessions regarding sanctions that have taken a steep toll on the Iranian economy. Iranian oil exports have fallen 60% over the past two years and inflation runs in the double-digits. And there is skepticism over whether Rouhani, who rose through the Iranian revolution, is really the conciliatory and independent peacemaker he is portraying himself to be. “Enter Rouhani with his charm offensive, he provides relief from the confrontational style of his predecessor,” Herzog said. “Yet in the rough terrain of the Middle East, where suspicion is a common trait hardened by long experience, there is ample reason to suspect his motives. Rouhani is the flesh and blood of an Iranian system which has heavily invested in its nuclear program and is unlikely to give up on it, and at the end of the day, he answers to the supreme leader, Ayatollah Ali Hosseini Khamenei.” Rouhani, a cleric, was swept up in the 1979 Iran’s Islamic Revolution as a firm opponent to the shah and became an ally and part of the inner circle of revolutionary leader Ayatollah Ruhollah Khomeini, serving in various roles in the government after Khomeini’s ascension to power.

German elections and Europe’s economy: Five things you need to know

READ MORE: How Merkel become more American Has crisis split Europe in two? Economists have also argued Germany’s exports benefit greatly from being priced in a currency that is much weaker than the Deutsche Mark would otherwise have been. Barroso: Europe not out of crisis However, large numbers of people are reliant on low-paid “mini-jobs” which leave them struggling to make ends meet. The Social Democrats are calling for a national minimum wage to combat the problem of the “working poor.” Human toll of economic crisis The OECD warned recently that the gap between rich and poor in Germany was wider than in any of the group’s member states, which include the U.S. and Mexico. How did Merkel survive while the rest fell? As only the third person in post-war times to win three terms in office — joining Helmut Kohl and Konrad Adenauer — Merkel has cemented her place in the history books. She is now positioned to topple Margaret Thatcher from the top spot as most powerful female politician of all time. Her style has been bred from her upbringing under communist rule in East Germany. The ever-present secret police — the Stasi — taught her the importance of discretion and knowing when to speak up or not. Her background in the sciences fed her analytical mind, and she is methodical and logical in solving problems.