“The euro area is projected to grow at a 0.8 percent rate in 2014 and a 1.1 percent pace in 2015. Growth prospects differ widely among the major euro area economies. Germany is forecast to grow by 1.5 per cent in both 2014 and 2015, France by 0.4 per cent in 2014 and 1 per cent in 2015, while Italy will see a -0.4 per cent drop in 2014 and a gain of just 0.1 per cent in 2015.
Given the low-growth outlook and the risk that demand could be further sapped if inflation remains near zero,or even turns negative, the OECD recommends more monetary support for the euro area. Recent actions by the European Central Bank are welcome, but further measures, including quantitative easing, are warranted. Given the weakness of demand, European countries should also use the full degree of flexibility available within the EU’s fiscal rules.”