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.

 

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