Eurozone crisis could destroy export jobs

Eurozone crisis could destroy export jobs
Photo: DPA
Europe’s sovereign debt crisis could inflict serious damage on Germany's labour market, since millions of jobs are connected with German exports to European countries, according to a new report.

The study by the Prognos consulting company said about 4.4 million jobs depend on exports of products like cars or business services to European Union countries.

Just over three million of those are connected to eurozone states, while one million of those jobs rely on exports to economically suffering countries like Portugal, Greece, and Spain, the report said. Nearly ten million Germans have jobs that are directly or indirectly dependent on exports.

That means a serious escalation of the financial crisis could lead to severe job losses in Germany if the European export market dries up, the report said.

Despite the dire warning, however, experts said workers shouldn’t panic.

“We are still cautiously optimistic,” said the Federation of German Wholesale, Foreign Trade and Services (BGA) in a statement.

The organization, which represents German exporters, said it anticipated a slowdown in growth but expected the export market to remain strong. Jobs are not yet in danger, it said.

Although European trade still accounts for 60 percent of its exports, Germany may also be helped because businesses are starting to send more products to emerging economies like India and China.

“This somewhat reduces the dependence on Europe,” the BGA said.

The Local/DPA/mdm

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