These schemes can be costly and may only delay the inevitable closure of some unviable companies, says Stefano Scarpetta of the OECD.

ECONOMIST: The crunch may entrench unemployment

Stefano Scarpetta, head of the Organization for Economic Cooperation and Development employment analysis and policy division, says unemployment in Europe has persisted for long periods of time in previous recessions, partly because governments don't spend enough on getting people back into work.

FORBES: European Economy

In Spain last year, about a third of those employed were classified as temporary and around 90% of all job losses in Spain in the last year have been of temporary workers, according to Stefano Scarpetta, head of the OECD's employment analysis and policy division.

FORBES: Magazine Article