Police car set alight by working class youth in rebellion against the capitalist economic crisis in Britain. The government has ordered 16,000 cops on to the streets in London to put down the unrest., a photo by Pan-African News Wire File Photos on Flickr.
OECD warns of economic uphill struggle next year
LONDON (Reuters) - An OECD report due for release this month will say markets and governments face an uphill struggle to fund themselves next year amid extreme uncertainty over the euro zone and the global economy, the Financial Times said on Monday.
The report will say that financial stresses are likely to continue with the unpredictability of markets threatening the stability of many governments that need to refinance debt.
"(On occasion), market events seem to reflect situations whereby animal spirits dominate market dynamics, thereby pushing up sovereign borrowing rates with serious consequences for the sustainability of sovereign debt," Hams Blommestein, head of public debt management at the Organisation for Economic Co-operation and Development, is quoted as saying.
For the foreseeable future it will be a "great challenge" for a wide range of OECD countries to raise large volumes in the private markets, with so-called rollover risk a big problem for the stability of many governments and economies, the article said.
The OECD says, according to the FT, that the gross borrowing needs of OECD governments are expected to reach $10.4 trillion in 2011 and will increase to $10.5 trillion next year - a $1 trillion increase on 2007 and almost twice as much as in 2005.
(Reporting by Stephen Mangan; Editing by Nick Macfie)