TUAC - TRADE UNION ADVISORY COMMITTEE TO THE OECD

28/11/2011

The OECD’s Economic Outlook published on 28 November under the title “The Policy Imperative: Rebuild Confidence” gives a stark picture of collapsing growth with the Euro-zone and UK economies moving into recession on the basis of, what it calls, a “muddling through” scenario. It argues that an even worse outcome is possible in its ‘downside scenario’ where a further loss of confidence would risk tipping the OECD as a whole into recession with dramatic knock-on effects for the global economy. The OECD’s strategic response” to such an event proposes fiscal stimulus in around half of the OECD countries together with “structural reforms”.

Commenting on the OECD’s projections and proposals the TUAC General Secretary John Evans said, “the OECD figures even in a “muddling through” scenario present an unacceptable economic and social prospect. Without waiting for a further deterioration the countries that the OECD itself has identified as having the fiscal space should give stimulus to aggregate demand to kick-start the global economy”.

Bernadette Segol, General Secretary of the European Trade Union Confederation, ETUC, said,  “the OECD warning of further contagion in the Euro-zone shows that European countries must now agree that debt must be mutualised in Europe and the European Central Bank must expand its role to under-write the Euro”.
ITUC General Secretary Sharan Burrow said, “Jobs must now be at the centre of recovery measures if unemployment is not to surge again. The OECD calls for structural reforms when  what are needed are structural measures to train and re-equip workers with skills as well as the active policies that create jobs for young people. We will not accept structural reforms that attack workers’ security and rights”.

Details of the Economic Outlook are available at the following URL:
http://www.oecd.org/document/18/0,3746,en_2649_37443_20347538_1_1_1_37443,00.html