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It's Europe, they do summits differently here

Leaders agree fiscal compact - details left for later
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The EU's Big Three: French President Nicolas Sarkozy, German Chancellor Angela Merkel and Italian Prime Minister Mario Monti at eysterday's summit in Brussels. (PHILIPPE WOJAZER/AFP/Getty Images)

EU leaders met in Brussels yesterday. By their standards things went well. Contentious pre-summit issues were kicked aside - in this case, Germany did not push for the right to install a budget czar in Greece. Agreement was reached on a new fiscal compact for the euro zone, although the details of what was agreed were left for later. A lot of money was pledged, enough to make a person wonder where it will come from given how indebted many European governments are.

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IMF report sharply downgrades global growth and blames the euro. European daily economic round-up

IMF dramatic revision of figures projects euro zone as a whole will be in recession in 2012

The IMF has sharply cut its growth forecast for the global economy this year and reason number one is the euro area. Just last September, in its World Economic Outlook, the IMF had projected world output to grow by 4 percent in 2012, now because of the euro zone debt crisis it expects growth of just 3.3 percent. The organization made clear what this dramatic reassessment means.

“Given the depth of the 2009 recession, these growth rates are too sluggish to make a major dent in very high unemployment,” the IMF said.

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Britain: Unemployment reaches 17 year high of 8.4 percent

2.68 million people are out of work, a rise of 118,000 in the three months to November.
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A trip to the job center is becoming almost as common as a trip to the pub for many in Britain. Unemployment is now at a 17 year high. (FACUNDO ARRIZABALAGA/AFP/Getty Images)

In some ways, this is the least surprising economic news of the week. Economists had expected the unemployment rate to reach 8.3 percent, a slight tick upwards isn't shocking. Not even the record youth unemployment or the record number of people working part-time because they cannot find full-time jobs seems unusual.

Nor is it surprising to critics of the Conservative-led coalition's austerity program. From the time it was announced back in October 2010 unemployment was predicted to jump.

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A Tale of Two Continents

Unemployment reaches record high in euro zone, while falling a bit in the U.S.
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Greek workers protesting last month about job losses. Unemployment in Greece is currently over 18 percent contributing heavily to record high levels of joblessness in the euro zone (LOUISA GOULIAMAKI/AFP/Getty Images)

The good news first: the U.S. economy added 200,000 jobs last month. That dropped the headline unemployment rate to 8.5 percent from 8.7 percent. (The broader measure of unemployment, U6, which includes those out of work for more than 12 months and discouraged workers and those with part-time jobs who want full-time work remains in double digits).

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European financial markets say goodbye and good riddance to 2011

Major exchanges were up on the day but down for the year
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The twin symbols of the European economies catastrophic 2011: an Occupy protester outside the European Central Bank (Ralph Orlowski/AFP/Getty Images)
Europe's financial markets lost ground in 2011. Next year doesn't look much better as one of Europe's big economies, Spain, tries to halve its deficit by cutting spending and raising taxes
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Spain: Job seekers make the ultimate sacrifice

With employment opportunities virtually non-existent, young Spaniards are cleaning up to impress prospective bosses
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When it comes time to seriously look for a job the tattooed members of Spain's "indignados" movement will probably do what so many others are doing: get their tats lasered off. (PEDRO ARMESTRE/AFP/Getty Images)

When I left college and first got into the job market I shaved my beard and got a haircut. It was simple and relatively cheap. Today's youth have a more difficult time of it. They have added tattoos to the mix and getting rid of them is painful and pricey.

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French manufacturing base is contracting rapidly as a result of crisis

In the last three years hundreds of factories have closed and jobs permanently lost
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Despite all the protests and demands that government do something to save jobs, French manufacturing is going through the most severe period of de-industrialization in four decades with the loss of tens of thousands of jobs. (MARTIN BUREAU/AFP/Getty Images)
In the last three years hundreds of French factories have closed as a result of the economic crisis and tens of thousands of jobs have been permanently lost
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A tale of two nations: German optimism, British pessimism

German manufacturers say 2012 looks good, a new report predicts British unemployment rate will rise
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The euro may mean pain for some countries but it hasn't stopped Germany's star from continuing on the ascendant (BORIS ROESSLER/AFP/Getty Images)
German manufacturers say 2012 looks good, a new report predicts British unemployment rate will rise
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Spain is back in recession

Economy Minister says Spain has "relapsed" in the last quarter of 2011
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It's a tough job but somebody has to do it. Luis de Guindos arrives for his first day of work as Spain's Economy Minister (PEDRO ARMESTRE/AFP/Getty Images)
Economy Minister says Spain has "relapsed" into recession in the last quarter of 2011. Further contraction is expected next year.
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Spain: sombre times ahead

New Prime Minister Mariano Rajoy tells Spanish Parliament the truth: things are bad and be prepared for them to get worse before they get better
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Mariano Rajoy, Spain's new Prime Minister, just before he addresses Parliament yesterday, looks like he's wondering what mess have I got myself into? (DANI POZO/AFP/Getty Images)
New Spanish Prime Minister Mariano Rajoy says times are tough and they will get tougher
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