• Youth unemployment rate across eurozone hits 22.6% in May • Manufacturing output stuck at three-year low • Stock markets rally again • Asmussen: Athens now off track on bailout programme • Today’s agenda 12.07pm: Finland’s continued opposition to Europe’s bailout fund buying up sovereign debts (see 11.15am), is a sign that countries at the core of the eurozone are still unwilling to increase their exposure to the problems of the periphery, argues economist Nouriel Roubini : As expected the EZ core resist more credit risk: “Finland to block ESM secondary market bond buying” reut.rs/KVROvd — Nouriel Roubini (@Nouriel) July 2, 2012 Roubini’s colleague, Megan Greene , also questions whether the idea was really a game-changer anyway, writing : The measure announced that might be most useful to Italy is a vague commitment to using the EFSF and ESM more flexibly in the bond markets to reduce borrowing costs for weaker countries without full troika reviews. The idea that there will not be troika reviews is hardly a victory, given that both Spain and Italy are already subject to the excessive deficit procedure with built-in fiscal targets and to IMF visits. Could EFSF/ESM bond buying help Spain or Italy

Continued:
Europe