European debt crisis is a major threat to global economy

OECD indicated the EU crisis as the major risk to the global economy. A firm action is needed to rectify the situation; for example, essential boost of the capacity of EFSF and more support from the ECB is required. The OECD projects the GDP growth in the EU to fall from 1.9% in 2011 to 1.6% in 2012 and an increase by 2.3% in 2013. The unemployment rate is predicted to remain at about 8% for the years 2012 and 2013.