EU Proposes $256 Billion Stimulus Plan

The Paris-based OECD said economic output will likely shrink by 0.4% in 2009 for the 30 market democracies that make up its membership, against the 1.4% growth prediction for 2008.

The European Commission echoed the OECD conclusion that now is the time for significant fiscal rescue measures -- including tax cuts -- provided they were timely, targeted, temporary and coordinated.

On Nov. 14, the zone of 15 EU nations that share the euro as their currency officially entered a recession, recording a 0.2% drop in economic output for two successive quarters.