OECD release economic survey of Euro area

1. Exterior Organisation for Economic Cooperation and Development (OECD) building in Paris 2. OECD logo on entrance door 3. Angel Gurria, OECD Secretary General arriving at news conference 4. Wide of news conference 5. SOUNDBITE (English) Angel Gurria, OECD Secretary General: "The OECD economies including the euro area are now in recession and are likely to stay there for some time amidst the worst financial crisis since the Depression (Great Depression following the stock market crash of 1929). The crisis has spread to emerging economies and global trade growth is slowing markedly, with further deceleration in prospect. That means we have not seen the worst." 6. Mid of news conference 7. SOUNDBITE (English) Angel Gurria, OECD Secretary General: "We always are saying that countries should move into a balanced budget and to have discipline, monetary and fiscal discipline, but exceptional circumstances demand exceptional responses. The only thing is that countries should not lose sight of the medium and the long-term. They need to do certain things and we agree that the stimulus is necessary in the short-term, but it should be temporary, it should be targeted, so that you try to stimulate those areas that will produce the greater bang for the buck, if you will, you know." 8. Cutaway of Gurria showing OECD Economic Survey at news conference 9. SOUNDBITE (English) Angel Gurria, OECD Secretary General: "The EU can boost its own economy but the world will not come out of this recession, of this slump, if they do not do it together. That means the EU and even all of the OECD together will not be able to successfully go back to the path of sustained growth without the large emerging economies or vice-versa." 10. Pull out from journalist's notes to journalists 11. Close of Angel Gurria 12. Reporters 13. Wide of news conference STORYLINE: The Organisation for Economic Cooperation and Development (OECD) said on Wednesday that the 16-nation euro zone would not experience a strong economic recovery until the second half of 2010, at the earliest. The OECD called for the creation of a single EU-wide supervisor or a central agency to coordinate the European response to the slowdown. It also recommended the European Central Bank (ECB) further cuts interest rates. In its annual economic survey of the euro zone, released on Wednesday, the Paris-based OECD confirmed its previous prediction that the recession will continue through the first half of 2009 before a modest recovery kicks in. OECD Secretary General, Angel Gurria, said the world had "not seen the worst" of the economic downturn and warned that the European Union needed to work with emerging economies in order to recover. Above average growth is only expected by late 2010, helped by massive fiscal stimulus and monetary easing. The organisation also warned that there are "serious risks to the growth outlook." The OECD said the ECB will have room to cut interest rates further, although inflationary pressures could still constrain the bank's "room for manoeuvre". You can license this story through AP Archive: http://www.aparchive.com/metadata/youtube/941365456822095b0c9bfa6da2d0014c Find out more about AP Archive: http://www.aparchive.com/HowWeWork