The price of gasoline at the pump hit new highs Friday in France, according to data released Tuesday by the Ministry of Sustainable Development, those of diesel playing in contrast to the decline. The price of a liter of unleaded 95 euro climbed to 1.5640, while that of unleaded 98 (whose sales are much lower in SP95) rose to 1.6022 euro, surpassing both levels records they had met in January, according to figures compiled by the Directorate General for Energy and Climate (EDCM).  

However, diesel is still trending down, to 1.3960 euro per liter last week against a peak of 1.4240 in mid-January, and well below its spring 2008 record (1.4541 euro ). These are national averages calculated by the DGEC from data provided by service stations.

This surge is linked to two phenomena, geopolitical tensions (Iran, Nigeria …) that keep crude oil prices at very high levels, and weakening of the euro against the dollar, which increases the cost of black gold imported into France, once its price converted into the single currency. Diesel sales represent about 80% of French consumption of motor fuels, the unleaded 95 just under 15% and unleaded approximately 98% 5.

The debt crisis in Europe has almost been forgotten that the U.S. also face their great difficulties on their debt. European stock markets closed sharply lower on Thursday. Paris (-3.4%, below 2900 points), Frankfurt (-3.5%) and London (-2.6%) fell sharply in the wake of Wall Street lost more than 2% at the end of the afternoon. Democrats and Republicans should agree on a plan to save 1,200 billion over ten years to hold their huge debt. But after two months of negotiations, they were still far from an agreement a few hours from the end of negotiations scheduled for Monday evening.

Congress had in effect established a commission to decide on a plan to reduce debt. Composed of twelve members of Congress – six Republicans and six Democrats – the "super-committee" was intended to relieve an abysmal debt that comes to exceed 15,000 billion (you can see it evolve in real time on the www . usdebtclock.org). The six Democrats proposed a plan for 2900 includes 1,300 billion billion tax increase, the six Republicans on the other hand opted for a plan of 2,200 billion euros, with "only" 200 billion of tax increases. Without ever reaching a consensus.

Why the lock?

This blockage occurs less than a year of presidential elections scheduled for November 2012.

Solidarity Minister Roselyne Bachelot on Wednesday presented the new contracts for seven hours to eleven recipients of RSA representatives of councils willing to experiment with this device, it was learned from the department. Departments candidates to experiment with these contracts, reserved to the people furthest from the labor market, are the Maritime Alps, Savoie, Haute-Savoie, the Vendee, the Channel, the Rhone, the Upper Rhine, the Lower Rhine, the Gold Coast, the Marne and Haute-Marne.Tuesday in Bordeaux, President Nicolas Sarkozy said that the contracts were intended to "restore dignity" to the beneficiaries of RSA.

The Economist, 68, former European Commissioner and now president of Bocconi University in Milan, is seen for weeks by the markets as the best candidate to lead a government of national unity and implementation of emergency austerity measures needed to redress the accounts of the country.The Paris Bourse was almost in equilibrium, Frankfurt advanced 0.5% and London gave up 0.45%.

Discussions in the PDL

Italian President Giorgio Napolitano has appointed Mario Monti senator for life Wednesday. Investors saw this as a sign that he would ask him to try to form a government from the start of Silvio Berlusconi, expected in the coming days.

And as the cost of borrowing to ten years in Italy continue to grow beyond 7%, a level deemed unsustainable by many, the assumption of a unity government seems to be gaining ground in the PDL.

"The LDP can not simply follow the call to the polls that emanates from the core," said Foreign Minister Franco Frattini in an interview with Corriere della Sera.

Meeting in Brussels, they also discussed at length the contours of the new rescue plan for Greece and the participation of banks capable of reducing the Greek debt to sustainable levels.

A report prepared by the "troika" – IMF, ECB and European Commission – representing the international donors, a 50% discount on Greek bonds held by private investors is necessary to reduce the debt to 120% of GDP against 162% today.

If it was intended to reduce debt below 110%, a discount of 60% would be necessary, the report says, as a basis for decisions of Heads of State and Government of the euro area summits on Sunday and Wednesday.

The outcome of these meetings, which should lead to a new Greek plan, a formula to maximize the funds to support the euro area and a wide recapitalization of banks on the continent, is considered crucial for the single currency.

"We decided to authorize the payment of the next tranche of financial assistance to Greece in the context of the current program of economic adjustment.The disbursements must be made in the first half of November, once approved by the International Monetary Fund, "said the finance ministers of the euro area in a statement.

Athens immediately welcomed the European decision, saying it was "a positive step."

The decision "provides the fiscal targets in 2012 and paves the way for necessary structural reforms," ​​said Greek finance minister, Evangelos Venizelos, in a statement.

CONTINUATION OF DISCUSSION ON EFSF

According to several sources, the Europeans, however, remain largely divided on the level of the discount to be applied to Greek bonds as well as the voluntary and non-bank participation.

The German authorities, in particular Finance Minister Wolfgang Schäuble, insist that the envelope of 50 billion euros negotiated on July 21 is significantly revised upwards, if necessary by forcing banks to make an extra effort.

Paris is reluctant for fear of triggering a credit event with unpredictable consequences.

The ministers, however, only discussed the various options available to "maximize" the firepower of the EFSF, which also divides Paris and Berlin.

The Minister of Economy, Baroin said that France continued to believe that the conversion of cash in bank was the best solution but it did not make "one final point of confrontation."

"What counts is what works.And what works is what will go towards deterrence and effective firewall and it is around this that we try to work, "said the Minister after the meeting.

Granted a banking license in EFSF would allow access to funding from the European Central Bank to increase its capacity for action by a factor of up to five.

But Berlin rejects this possibility, which would be to accept that the institution of Frankfurt finance the countries of the euro area, one of the dogmas explicitly excluded by the European treaties.

The other members of the euro area are also divided, Belgium and Spain having voted for a reconciliation BCE-EFSF while Slovakia and Austria have indicated that this solution was not studied.

The countdown has started, however, for not only the peaks of Sunday and Wednesday but above the summit of Heads of State and Government of the G20 in Cannes in early November.

Thursday night, U.S. President Barack Obama spoke on the economic situation in Europe with his French counterpart Nicolas Sarkozy, German Chancellor Angela Merkel and British Prime Minister David Cameron.

"The economy as a whole has continued to grow in September, although many districts described the pace of growth as" modest "or" low "and contacts have generally found a weakening outlook," says the Fed This situation report.

Wall Street and oil prices went up in free fall as a result of this paper while the price of Treasuries rose.

The memo on the economy the Fed is based on data collected before October 7 and deals with all the economic conditions in the 12 Fed districts, which cover the entire United States.

According to the Beige Book, consumer spending rose slightly in most districts, thanks to the automotive industry and tourism.

There was also an increase in business investment, particularly in construction and mining.

While a number of districts have experienced some recovery in construction activity, "the general conditions of real estate – residential as commercial – are still depressed."

Also according to the survey, several districts noted that many retailers are reluctant to build up stocks despite the approach of the holiday season, reflecting a decline in consumer confidence.

This holiday season – which runs from Thanksgiving to Christmas – is at least half the annual turnover of many stores.

Interviewed on CNBC, the president of the Boston Fed Eric Rosengren said the Fed may have to increase support measures if the U.S. economy weakened further or if it was affected by a new shock.

The last step seems to be the most difficult to cross to Europe. Slovakia is the 17th and last country in Europe to vote on strengthening the European Financial Stability Fund (EFSF), and part of the coalition threatened not to accept the text. Without the approval of Bratislava, the plan can not enter into force in accordance Amadeu Altafaj-Tardio, spokesman of the European Commission for Economic Affairs. Interview.

Slovakia Can Europe block?

We hope there will be a positive vote in Bratislava.But if Slovakia did not accept the text, the plan will remain outstanding. And if the vote is negative, the plan falls apart. The EFSF will then remain in its current state but will not have the means to ensure the protection of the euro, as it is supposed to do in its new form.

Ratification does not seem won …

We're not there yet. The Slovak authorities have committed heavily to vote the text. Besides the Prime Minister Iveta Radicova has resigned on the table in case of refusal of the plan by the coalition. Our message was to the Slovak authorities to say that strengthening the EFSF is in their interest. It may be very useful to the country if the crisis in the euro area spreads.

Can you put pressure on Slovakia?

What do you want, the Commission took power in Bratislava? We can not force the country to ratify the plan.This is the responsibility of all political actors. We can not require Member States is in the nature of the European Union. States have decided to vote the text unanimously in 2010 against the advice of the Commission. If we had done by a qualified majority, we would not be here.

This is not the first time that Slovakia played bad students …

We have already had a fantastic story with this government. Parliamentary elections in 2010, Prime Minister of the country – currently in power – has campaigned on his opposition to help countries better off than him. Then, the arrival of Iveta Radicova as Prime Minister, the party decided in June to stop its bilateral loans to Greece in the forefront of support. The decision was taken after the second installment.It is now the sixth …

Part of the coalition claims to be exempt from participating in EFSF (7 billion euros 440 billion in total). Can we modify the agreement to allow Slovakia to vote on the plan?

The agreement was ratified by 16 member states before it, we can not change it for a country. What would the other parliaments have already voted if the text were changed to the Treaty? They could also claim their scpécifiques measures and find that it is unfair to make concessions to one country. Finland has obtained special guarantees with Greece to vote on the text. But these guarantees were part of the bailout.

At the end of a board of about noon, the directors of the former world number one funding of local authorities have approved the nationalization of Belgium Belgian activities of Dexia, Dexia Bank Belgium (DBB) specializing in retail banking.

Belgium will pay to do this four billion euros.

"This sale will be finalized shortly," advised the bank."It will enable Dexia to reduce its need for short-term financing of over 14 billion euros, will improve the solvency of the group of more than 200 basis points and reduce its portfolio of non-strategic assets of 18 billion euros. "

Matignon has in turn made in a statement that France would lean financing activities of French local authorities of Dexia Municipal Agency (DexMA), French securitization structure owned by Dexia Credit Local, the Caisse des Depots (CDC).

A consortium of funding for French local authorities will also be created and established by the CDC and the Postal Bank, also indicate the services of the French Prime Minister Francois Fillon.

As part of the new rescue plan for Dexia, already saved from bankruptcy in 2008 with a public bailout of more than six billion euros, Belgium, France and Luxembourg have signed to provide 90 billion euros government guarantees to ensure the financing needs of Dexia.

NOT FOREVER IN DBB

"States have agreed to divide this guarantee in proportions similar to those of 2008, 60.5% for Belgium, 36.5% for France and 3% for Luxembourg," reported Matignon.

Belgian Prime Minister Yves Leterme said at a news conference that Dexia would immediately pay a premium of 50 basis points in return for these guarantees.

The Belgian Finance Minister Didier Reynders said in that same press conference that the Belgian state, however, did not intend to stay forever in the capital of DBB.

Sunday morning before the meeting of a special board of Dexia, the French Prime Minister Francois Fillon met with his Belgian counterpart in Brussels and the Luxembourg Finance Minister, Luc Frieden, to find a agreement on modalities and participation of all three states.

"The three governments agreed to submit a proposal to the board that fits perfectly with the objectives of the Belgian Government, which involves taking control of Dexia Bank Belgium, secure and make it a bank very safe," he Yves Leterme said Sunday on Belgian television.?

The challenge for the three states participating in the plan was to ensure that aid does not come to Dexia worsen the situation of public finances.

The rating agency Moody's had also increased pressure on the Belgian camp Friday night: it has placed the sovereign rating of Aa1 kingdom under surveillance by explaining, among other things, will assess the costs and liabilities that the state could take Dexia in supporting.(See)

Didier Reynders has reported on this during the press conference that the debt / gross domestic product (GDP) of Belgium would remain below 100% despite the agreement of Dexia and said that the European authorities of the competition had been informed of the plan.

Dexia, the rating action has been suspended since Thursday, is at 9 am press conference to present the plan to dismantle the bank as it was approved by the directors.

"We do not see a significant drop in consumption by our customers.At this point we can say that the economy remains strong for Air Liquide, "said the boss of the world's largest industrial gases reporters.

He was speaking on the sidelines of the presentation of tests of electric vehicles to hydrogen at the Circuit de Marcoussis (Essonne).

"The environment was relatively normal, so the consumption of our customers large and small ways consistent with what we had until now," said Benoît Potier, whose group has clients in sectors as diverse as Health, refining and steel.

Air Liquide was confirmed in early August target steady growth in net profit in 2011 "in a normal environment."

Asked if he confirmed the group's objectives in 2011, Benoît Potier declined to comment, a few weeks before the publication of revenue for the third quarter scheduled Oct. 26.

The strategic plan "Alma 2015", introduced in December 2010, is an average annual growth of 8% to 10% of sales – compared to 9.2% as reported in the first half of 2011 – and a sustained increase of Net income in the past five years.

The share was down 1.18% to 85.66 euros by 24:50, outperforming the market, down 2.7%.

Greece confirmed Sunday that it would not achieve the objective of reducing the public deficit set in June 2011, but recovered over the bar skid found its creditors in September, after the introduction of new measures austerity.

The draft budget for 2012 containing new objectives, to be tabled in parliament on Monday passed Sunday night during a special cabinet meeting chaired by Prime Minister George Papandreou, in which was set the difficult reduction plan public as required by international creditors Greece.According to the draft budget, in 2011, the deficit of Greece will be reduced to 8.5% of GDP against 10.5% in 2010. The deficit remains above the target of 7.4% of GDP set in the initial multi-year legislation passed in June, but it is significantly better than the projection made in early September by the troika of creditors which stood then at Athens around 9.5% of GDP, according to the press.

This exceeded the deficit target in 2011 means that Greece will need two billion more if only to fund its spending this year.It also means that tax increases and wage cuts announced over the last two months by the Papandreou government have failed to redress the country's finances.

Growth forecasts for the budget adopted in 2012 point to a contraction of 5.5% of gross domestic product (GDP) this year and 2.0-2.5% next year. These figures are the latest IMF projections, but are much more pessimistic than the projections used to calculate the bailout plan of 109 billion euros on July 21, anticipating a growth of 0.6% in 2012.

The copy of the Greek government and its financial projections will be examined Monday by the finance ministers of the Eurogroup and Luxembourg on Tuesday to those of the European Union, which must decide whether or not pay the next tranche of 8 billion, vital to the troubled country.By the end of August, the government warned it would not take its goal of reducing the deficit mainly because of the worsening recession. Officials of the troika (EU-IMF-ECB) to inspect the country's public finances and fiscal consolidation had left Athens when requesting the introduction of new corrective action to reduce costs and increase revenue.

"The additional austerity measures announced for 2011 and 2012 equivalent to 6.6 billion euros," said the Ministry of Finance said in a statement Sunday. Among them are the introduction of a new tax on real estate levied on electricity bills, lower pensions in excess of 1,200 euros per month, lowering the threshold for income tax to 5,000 euros annually. VAT on food increased from 13 to 23% in September.

The main difficulty concerns the lay-off of some 30,000 public sector employees by creating a "reserve labor force" where they will be affected for a year with salaries reduced to 60% of their basic pay . After one year some will be laid off. The choice will be based on criteria of age, persons over 60 years to be entered automatically in the program. The mechanism of labor reserves in its final version is the most "painless socially speaking" it was possible to adopt, said government spokesman Elias Mossialos in a statement.

In 2012, the Greek government expects a further reduction of public deficits, by setting a target of 6.8% of GDP instead of 6.5% forecast in June, 14.65 billion euros.And Greece should reach next year for the first time a primary surplus of 3.2 billion euros of public finances, excluding debt service.

According to the newspaper Kathimerini, the Troika mission, which returned to Athens on Thursday after an absence of nearly a month, could continue until Friday, October 7. The German finance minister warned last week that no final decision would be taken on the payment or not the next aid installment loan of 110 billion made in May 2010 in Greece, before 13 October .