As the economy continues to shrink, massive unemployment is expected to spur social and political unrest across the industrialised world, warned the OECD in economic projections presented today (31 March). (c.f. http://www.euractiv.com)
Weak export markets, falling investment and a continuing credit crunch will hit euro-area activity hard over the coming six months. The recovery will only begin to build momentum by the middle of 2010. GDP is projected to drop 4.1 percent in 2009 and by 0.3 percent next year. Consequently, unemployment will climb continue to climb on the coming months. In an attempt to ease soaring unemployment, the OECD recommended providing adequate safety nets for job losers and low-income families, which it said should prevent them falling into poverty and keep stable demand. (c.f. http://www.euractiv.com)
As mentioned by the OECD the actual crisis might turn into a social crisis. Thus, a danger might also be that the European community develops to a two classes community. From my point of view, the EU should therefore focus its aid programs on obtaining the middle class.