lead to unemployment surges, as firms are forced to cut costs when financing becomes expensive or is no longer available …. As a result, all countries with risk premium shocks saw unemployment surge, even as euro area core countries managed to … contain unemployment as firms hoarded labor during the downturn. Most striking, wage bills in euro area crisis countries and …

particular the regional dimension of the European unemployment problem. The authors argue that the inability of labor markets to …

unemployment and debt. The paper illustrates in a downside scenario, how low potential growth and crisis legacies leave the euro …