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Growing inequalities and loss of confidence: OECD warns of risks of too weak recovery in EU

2021-09-10T09:58:19.987Z


A study published on Friday, the organization calls for using the stimulus plan to reduce regional disparities.


"

The crisis could leave scars and reopen old wounds,

" writes the international organization in a report on the impact of Covid-19 on the Old Continent.

Read alsoJan Hatzius: "Economic recovery in Europe reduces political risk"

The health crisis has affected very unevenly European states have been affected very unevenly.

Successive lockdowns have been particularly destructive for the service sector, which often employs "

an abundant low-skilled workforce

".

This could lead to an increase in “

inequalities and (of) poverty

” within Europe, argues the OECD.

"

Due to their heavy dependence on tourism and the high number of very small businesses that characterize them, the southern EU economies are those which saw their GDP fall most sharply in 2020,

" explains moreover this study.

Investing in the ecological transition

To tackle the widening gaps between states and within regions, the OECD calls in particular to use the European recovery plan of 750 billion euros through investments in digital transformation and ecological transition.

The first checks of the European recovery plan, financed for the first time by debt raised jointly, were released last August.

If it is not the subject of public action, digital transformation could worsen regional disparities and lead to an increased spatial concentration of growth and job creation

,” notes the OECD.

Regarding carbon neutrality, insufficiently energetic action "would

disproportionately disadvantage regions heavily dependent on coal mining and carbon-intensive industries

," she also warns.

Source: lefigaro

All news articles on 2021-09-10

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