More signs point to economic horror for Europe

The Eurozone is experiencing historic unemployment rates at 10.4 percent in December.  Germany was the only exception, which saw its unemployment rate reduce to 6.7 percent in January.

While the European debt crisis has lingered without resolve, unemployment has become the number one problem among those younger than 25-years-old, with 21.3 percent of those Europeans without jobs.

European leaders met once again with a new theme for their meetings that address unemployment and economic growth -- themes that have been neglected since Europe began austerity programs.

Germany has long argued that budgetary discipline will ultimately help economies grow.

Record European unemployment -- 16.4 million in the European monetary zone and 23.8 million within the EU -- has weighed on domestic demand, the engine of growth on the old continent with French and German consumption falling in December, more signs pointing to a worsening economy.

Economic recession is beginning to grind Europe, with signs of it visible in Spain. Italy Italy, the Eurozone's third largest economy, is considered to be on the brink of recession.

The International Monetary Fund is pessimistic towards European growth, expecting a decrease of 0.5 percent for the entire monetary zone in 2012, 0.3 percent for Germany, 0.2 percent for France and 2.2 percent for Italy.

Since the beginning of 2012, Europe has behaved like a continent on two speeds: a periphery drowned in debt and weak growth; and Germany, Austria and the Netherlands seeing activity and employment stable or even growing.

Spain is seeing the most unemployment in Europe with 22.9 percent. The following three countries seeing the highest unemployment rates are already accepting financial aid from the IMF and the EU: Greece (19.2%), Ireland (14.5%), and Portugal (13.6 percent) -- countries that are suspect of defaulting on their debt.

Whether Europe continues to degrade remains to be seen, but Germany's success depends on its export economy to the rest of the Eurozone. Economists predict Germany's growth rates to slow -- even to the point of entering a recession during the first quarter.

European Central Bank president, Mario Draghi, told CEOs and bankers at a summit in Davos that they're considering lowering interest rates to stimulate the economy.

With little growth, that could at least help improve the credit market and prop up the Euro's fall against the dollar.