Sunday 25 June 2017

Eurozone will not only survive, but grow, says OECD

EUROPE is not at risk of slipping into another recession and the euro region will attract new members rather than break up, the secretary general of the Organisation for Economic Cooperation and Development predicted yesterday.

"I think more countries will be joining the euro," Angel Gurria said. "The euro and Europe will remain the largest trading bloc in the world for a long time to come."

Efforts by European leaders to stop the spread of the region's debt crisis by strengthening its EFSF rescue fund are also likely to succeed, he said. The size of the EFSF should be more than doubled to at least €1 trillion to provide a bigger safety net, he added.

The eurozone will not be able to collectively issue bonds any time soon: "It's not going to happen," he said. "To mutualise the risk it requires a much more important level of political integration, which is not there yet."

Maryam Nemazee

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