OECD urges 'overwhelming force' to fix eurozone
Source: BI-ME with AFP , Author: Posted by BI-ME staff
Posted: Mon June 18, 2012 8:56 am

INTERNATIONAL. The head of the Organisation for Economic Cooperation and Development warned G20 members they may need to deploy "overwhelming force" to confront Europe's sovereign debt crisis.

Speaking in the Mexican resort of Los Cabos ahead of the G20 summit of the world's most powerful economies, OECD secretary general Angel Gurria said the eurozone's response to the trouble had not been adequately coordinated.

"Europe has the means, the institutions, the vigour and the power ... but its will has not been transmitted in the correct way, because of the problems in the governance of its institutions," he warned, at a news conference.

The European members of the G20 -- Britain, France, Germany and Italy -- are expected to come under pressure from all sides during Monday's summit to commit to more debt burden-sharing to ease market pressure on Greece and Spain.

Interest rates for the weaker of Europe's debt-ridden economies have soared amid fears on the bond markets that eurozone members, starting with Greece, might default if stronger powers like Germany fail to back them up.

Gurria said the world faces a "generalized slowdown" and if an institutional response to the problems triggered by the eurozone crisis is not found the G20 might need to deploy "overwhelming force" to contain the fallout.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: April 17, 2014
KUWAIT. According to a newly released report by Kuwait Finance House Research, the global sukuk market saw a modest volume of US$31.14 billion in new sukuk issuances in 1Q2014. This volume represents a drop of 9.82% compared to US$34.53 billion worth of issuances in 1Q13.
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INTERNATIONAL. The WGC pointed out that the Chinese bank savings amount to US$7.5 trillion but only about US$300 billionn is allocated to gold, signifying the potential for gold demand to grow as Chinese wealth climbs.
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UAE. "A similar drop to 2013 is unlikely. Those who wanted to get out of gold did, and the rest of 2014 will probably be a year of sideways trading."
SAUDI ARABIA. The GCC said in a statement that foreign ministers of the six-member body had met in Riyadh for a comprehensive review of measures used to implement foreign and security policies.
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