The Organisation for Economic Co-operation and Development (OECD) has recently warned Eurozone countries to cut their budget deficit and to make laour market more competitive. The OECD further stated that European Central Bank interest rates are still below a neutral level supporting economic activity in Eurozone countries. Eurozone members are required to keep their budget deficits below 3 percent level as part of the financial rules strengthening the single currency. However, this particular rule has been openly flouted by the major economies of Eurozone including Germany, Italy and France. Even in present circumstances only Germany seems to be quite serious to the call of OECD since it is already contemplating a massive deficit cuts. Germany has lately raised its value added tax in order to improve its public finances. The Paris based think tank also asked the member countries for more integration of the economy especially in financial services and given a call for a reduction in job protection policies which have been proved to be disrupting economic activity. According to reports by the OECD the growth of Eurozone is likely to be around 2.6 percent for 2006 and speculating a 2.2 percent growth rate for the year 2007. This figure naturally put the Eurozone ahead of Japan and close to the U.S. Refuting the recent charges that blamed euro for the regions low growth potential, the think tank said that the economic problems are mainly structural in nature and the solution is obviously in the hands of individual member governments. However, no dramatic turn around in economic policies by any member government in compliance with the OECD call seems possible as of now. Most of the countries are relying on the natural decrease in deficit, which only possible with the higher rates of economic growth