— This is the script of CNBC's news report for China's CCTV on October 22, Wednesday.
The Euro came under pressure overnight after reports that the ECB is considering buying corporate bonds to stimulate the economy, if its current methods aren't enough to do the job.
It comes amid increasing signs that what little recovery the bloc may have had, is fading.
But this begs the question -- is the euro zone at risk of entering a recession? And how will the global growth trajectory size up?
CNBC's Oriel Morrison posted this question ANGEL GURRIA, Secretary-General of the OECD.
Take a listen
We do not see a recession coming. We are not projecting a recession but the danger of a recession has increased and of course, that means we have to fight harder in order to avoid such an occurance.
Please consider that the central banks can only do so much. You know we are highly indebted to the central bank literally because without their intervention we would be in an even deeper problem. And the Fed and Bank of England and Bank of Japan and the European Central Bank have done almost as much as they can and certainly in the European Central Bank it looks like they still have some gunpowder they could use. But it has to be now the turn of the governments. We've run out of room for monetary policy, we've ran out of room for fiscal policy. Then what is left? It means we have to go structural.
The central banks do not invest in infrastructure. These are the government institution's balance or creating the proper conditions, maybe with some guarantees, maybe with some predictable, stable regulatory context with stable and predictable pricing policies with feeding tariffs etc that will then attract the private sector to come and invest in infrastructure, long term infrastructure and green infrastructure. Because it's almost cliche not that there are trillions and trillions of savings in the pension funds and the insurance companies, re-insurance companies etc because we can't make the migrate to the long term investment in order to create jobs and create greater growth and create greater wealth. So there's a bridging we have to do and that involves hard heavy llifting on the regulatory side and of course on the competition side, on the foreign investment side.
I'm Qian Chen, reporting from CNBC's Asian headquarters.