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More bad news from austerity land. The European Union said that the official unemployment rate across its 17 member nations rose to 12.1 percent in March, with about 1.7 million jobs lost in the past month. With inflation tame and growth faltering, the news is likely to add to the case for the European Central Bank to cut interest rates later this week. Spain sported the highest unemployment rate in the euro zone, at 26.7 percent.