According to the Organisation for Economic Co-operation and Development the rescue plan set up by EU leaders (26th October 2011) is a vital first step but must be enforced "promptly and forcefully". The OECD research body want G20 leaders, meeting in Cannes this week, to make "bold decisions" as 45 out of 118 countries examined by the ILO are at risk of social unrest.
These warnings were passed on to world leaders by the OECD as it predicts a sharp slowdown in eurozone growth, warning that some of the 17-nation bloc countries will be likely to face negative growth. With approximately 80 million new jobs needed in the next two years to restock pre-crisis employment levels the ILO believe that only half the needed jobs will be created due to the recent slowdown in growth.
In it's latest G20 economies projections, the OCED show eurozone growth of 1.6% this year reducing to 0.3% next year, forecasting a growth of 2% for both 2011 and 2012. Due to this the organisation have called for the G20 leaders to act quickly at their meeting on Thursday and Friday and for a cut in eurozone interest rates.
The OCED believe it "imperative to act decisively to restore confidence and to implement appropriate policies to restore longer-term fiscal sustainability".
News article written by Michelle