To believe an important elected PASOK in power, Prime Minister George Papandreou resigned after agreement on a transitional government will be concluded in Greece, possibly as early as Sunday evening.
Objectives, duration and the choice of the directing personality similar government must be acquired before the start of the power of the current prime minister, said on national television MP Telemachos Hitiris.
"Just wait for the announcement of the (selection) Prime Minister in the cabinet. Everything must be done in the day, otherwise it will be hell tomorrow," he warned.
The new austerity measures agreed on Sunday will not allow Greece to limit the budget deficit to 7.4% of GDP in 2011 as it had promised. Finance Minister Evangelos Venizelos and the Greek Prime Minister George Papandreou in Parliament during the vote of a new austerity plan, June 30, 2011.
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 .
Increase in VAT on theme parks, removal of reliefs on capital gains immobiliaires, higher taxes on mutual health … The anti-deficit in 2011 are discussed starting Tuesday in the Assembly. The key points of a heated debate.
One billion euros. This is the amount of additional tax revenue for 2011 that the government is seeking at the extraordinary parliamentary session that opens Tuesday. MPs must rule on the immediate implementation of five measures forming part of the austerity plan announced there ten days by François Fillon. Knowing that all of this will be discussed in the fall during the budget debate in 2012 with the goal to bring 12 billion euros. However, these emergency measures are far from unanimous, even among the majority.State of Play.
Stay for abatements on real estate gains?
One of the most important steps is one of the most contested. The government intends to eliminate deductions on real estate gains (excluding primary residence) for any sale agreement signed after August 25. Knowing that the current system reduces the taxable gain on resale of 10% per year from five years in prison. This opens the way for a full exemption after 15 years. The removal of this niche could yield 200 million in 2011 and 2.2 billion euros in 2012.
Problem, if not convicted on the bottom on the left, it is hotly contested within the ranks of the majority."The government is open to criticism and amendments, provided they do not involve the amount of effort or their balance," said François Fillon at the close of the summer university of the UMP party this weekend. Jean-Pierre Raffarin, however, already announced the abandonment of the measure, after a meeting with Nicolas Sarkozy.
A tax on Luxury Hotels?
This would be to find a way to offset the 90 million savings that would bring the increase. Gilles Carrez considering a tax on room rates at luxury hotels. "Politically, it's interesting," admits a source member. The measure would involve the wealthiest, while a tax on theme parks to be targeted to benefit the middle class. But industry lobbyists are already lashing out at the proposal, supported in this by the minister of tourism.This tax "would be a blow to the competitiveness of French tourism," he told Le Figaro said Frédéric Lefebvre fear that the net worth be tempted to go "to other capitals cheaper."
A measure that sickens mutual
The plan discussed Tuesday also plans to increase from 3.5% to 7% special tax on insurance agreements "caring and responsible." Or most of the contracts offered by mutuals. The measure could yield 100 million in 2011 and $ 1.1 billion in 2012. But it suffers, too, the fire of criticism, the opposition is doing this over from another. "The government did not want to touch the heart of its policy, but he has not forgotten detaxerles middle and working classes", then "it is already becoming increasingly difficult to treat" was criticized in Martine Aubry reaction."
This calls into question deeply the objectives of access to care and control advocated by the French Mutuality. (…) The taxes on health insurance organizations additional (…) were multiplied by twenty "protested the president of the French Mutuality, Etienne Caniard, in a letter to Nicolas Sarkozy.
Two taxes more consensual
This is the increase of 12.3% to 13.5% of payroll taxes on capital income (200 million gain in 2011, 1.3 billion in 2012) and harmonization of the report of deficits in taxes on companies with the rules in force in Germany (500 million and $ 1.1 billion.)
The owners of the Federal Reserve, International Monetary Fund (IMF) and the OECD have increased over the weekend the pressure on political leaders on both sides of the Atlantic, urging them to get out of their torpor to meet the economic challenges.
Meeting in Jackson Hole, Wyoming, the cream of the world economy seems to fear that the slowdown in growth and worsening debt crisis from escalating into a much deeper threat if nothing is done.
By Friday, the Fed chief Ben Bernanke has set the tone, insisting that most of the work to establish a solid foundation supporting growth in the long term was within the White House and Congress.
IMF Executive Director Christine Lagarde warned the next day against the risk of the global economy plunging into recession and called on leaders to "act now", especially for a European bank recapitalization.
"I hope they listen," responded the governor of the Bank of Israel Stanley Fischer.
For Angel Gurria, Secretary General of the Organization for Economic Cooperation and Development (OECD), "Governance is not a very rosy at the moment (…), either in Europe or the U.S. ".
"That's the feeling that emerges from the discussions in the short term, 'We can not even come to an agreement on the time it is, even when there is a huge clock that tells us", has he told Reuters.
DO NOT UNDERMINE GROWTH
United States, the political stalemate has inhibited the proposals to control the country's massive deficit, which led to the edge of default and earned him the loss of its coveted triple-A rating to eyes of the Standard & Poor's.
In Europe, the euro area remains divided on the question of who will pay the debt crisis, exemplified by the divisive debate on the euro bonds or collateral requested by Finland in exchange for his assistance Greece.
Christine Lagarde, whose intervention in Jackson Hole was added at the last minute and reflected his sense of urgency, warned against the too rapid reduction in deficits, which could undermine growth faltering.
She is not alone.
Since the outbreak of the financial crisis, the Fed cut interest rates to near zero and bought 2,300 billion of bonds to support the recovery.Monetary policy has exhausted much of his ammunition, everything depends now on fiscal policy, suggested in Bernanke substance.
"Although the issue of fiscal sustainability needs to be addressed urgently, the heads of budgetary issues should take into account the fragility of the current economic recovery," he argued.
"Warning shot"
According to Glenn Hubbard, dean of Columbia Business School, Bernanke's speech is "a wake-up call for government to say: 'Stop to submit to the Federal Reserve, you have a job to do" .
"The Fed simply said: 'We are monitoring the situation closely but we encourage the government, both parties to get around a table and adopt a plan to strengthen long term fiscal and then maybe a plan stimulus in the short term, "he told the Reuters micro Insider.
These calls from the elite of the world economy could offer unexpected support Barack Obama while his campaign for a second term may begin as ominous a stagnant unemployment rate beyond 9%.
The U.S. president prepares a speech after the Labor Day scheduled Sept. 5, in which he is expected to present proposals to boost employment.
Barack Obama also turned to the tenors of the world economy.
The tenant of the White House and German Chancellor Angela Merkel met Saturday by telephone from the crisis in the euro area and the turmoil in financial markets, vowing to take measures to revive the global economy.
The day before, Barack Obama spoke with Christine Lagarde and the two agreed that the economy needed short-term measures to support new growth.
European side, the question of the soundness of the banking sector returns insistently.
Christine Lagarde and the President of the European Central Bank Jean-Claude Trichet have both stressed the strengthening of bank balance sheets, the executive director of the IMF even calling to make a "substantial recapitalization."
"While policy dialogue is clear, the uncertainty generated by political posturing in Europe and the United States creates serious risks", says Eswar Prasad, a professor at Cornell University.
The Italian Minister of Economy, Giulio Tremonti, reiterated Saturday its call for the creation of Eurobonds, saying they were the best way out of the euro zone debt crisis is likely, he said, to win other countries.
Tremonti was speaking after the adoption by Italy of a government austerity plan for achieving 45.5 billion euros in savings by reducing spending and raising taxes.
"An increased level of integration and consolidation of public finances in Europe is needed," Tremonti said during a press conference to explain the Italian austerity plan.
"The best solution would be to have Eurobonds and options could be adopted," he added.
A consortium of six companies led by EDF Energies Nouvelles has formalized his candidacy Monday in the tender that the French government has launched for offshore wind
As part of this project, EDF Energies Nouvelles has partnered with Dong Energy, Nass & Wind Offshore Poweo ENR, wpd Offshore and Alstom.
The six companies will share their expertise and will make their investment capacity within a structure which EDF EN, behind the project and founder of the consortium will own a majority stake.
The consortium plans to submit five projects "that will be worn by five dedicated companies majority-owned by the parent along with the strategic partners of development," said the six members of the consortium in a joint statement.
Friday, French GDF Suez, together with Vinci and Areva had already formalized his candidacy for the tender was officially launched on Monday by the government.
The project, covering a total capacity of 3,000 megawatts (MW) in five areas, corresponding to half the target set by the government to install 6,000 MW offshore by 2020, equivalent to almost four times the power of a nuclear reactor EPR.
Candidates have until January 11, 2012 to submit their bids. They will be screened in April 2012 and retained permanently in 2013.
Free access to justice is almost finished. The draft supplementary budget 2011, to be adopted next week, provides for the establishment of a stamp from 35 euros to bring any legal action.
FOR and CGT unions amounted Thursday against the introduction of the payment of 35 euros to bring any legal action, as provided for a provision in the draft supplementary budget 2011 which should definitely be adopted next week.
In a statement, Workers' Force considers this to be "inequitable and unjust" and "fear that such a stamp duty discourages some litigants to bring actions." "After the reform of the judicial system is further away from the citizen of access to justice," says TF.
For the CGT, "a new step was taken with the introduction of payment of stamp duty of 35 euros for all proceedings before the civil, social and industrial tribunals." In a statement, the station believes that "this system undermines the free employment tribunal proceedings and is handicap access to the courts for thousands of employees." The two unions require the removal of this provision, the CFDT had already criticized in its review by MPs.
The costs of legal aid
This is to fund the rising cost of legal aid generated by the reform of the police custody. The beneficiaries of legal aid should be exempt. The draft supplementary budget shall be finally adopted at a final vote in the Assembly and Senate next week.
The first quarter GDP is estimated at 1.9% yoy against 1.8% previously.
Economic growth in the United States in the first quarter was revised up slightly to 1.9% annual rate according to the third assessment published Friday by the government. This estimate is slightly different from 1.8% published in late May Analysts had expected the Commerce Department would keep.
The ministry said it had revised down imports, which are deducted the gross domestic product in the calculation used by the United States, and increased stockpiling by businesses.
The growth rate of the world's largest economy is nevertheless disappointing. The third and fourth quarters of 2010, the United States saw its GDP grow by 2.6% and 3.1% annual rate over the previous quarter.And the government and the central bank had forecast in early 2011 on a further acceleration of the economy. She slowed the contrary, due among other things, a sharp rise in oil prices, which severely affected the purchasing power of Americans.
Household consumption (which accounts for 70% of the U.S.) rose 2.2% year on year (estimate unchanged), after 4.0% in the fourth quarter. She brought 1.52 percentage point of growth. The investment has paid better, increasing by 12.4% and contributing nearly as much growth (1.46 points). He was helped by the rise in stocks (1.31 contributed to the growth point).
With the end of the recovery plan in March 2009 federal budget problems and state and local governments, public spending has been a negative factor for growth (-1.20 points). They had never fallen as much since 1983.
The majority of economists, growth in the second quarter should have been at best a bit faster than the first, but clearly insufficient to bring down unemployment, which affects the United States.
Remy Cointreau announced Thursday a current annual operating profit rose sharply thanks to the rise in margins in the cognac, and significant debt reduction allowed by the sale of its two brands of champagne.
Remy Cointreau, who just completed the sale of Piper-Heidsieck and Charles Heidsieck family group EPI (Bonpoint, Weston, Michel Perry, Bonpoint, Alain Figaret) for an enterprise value of 412 million euros, will pay its shareholders a special dividend of one euro, in addition to an ordinary dividend of 1.30 euro unchanged.
Its operating profit excluding exceptional items rose by 17.6% to 167.0 million euros, exceeding the Thomson Reuters consensus I / B / E / S, which was 158 million euros, with organic growth of 8% , close to the indications given by the group at the publication of its annual turnover in late April.
This performance number two behind French spirits Pernod Ricard explained by the sharp rise in margins of Remy Martin cognac, whose operating profit jumped 32.7% to 140.5 million euros in the year through Sales of bottled upscale brand in Asia, became the first region of the group in terms of sales.
These results helped offset the sharp decline (-17.4% to 42.6 million) of those pole liqueurs and spirits (Cointreau, brandy St-Remy), sealed by falling sales of Metaxa Greek brandy.
In champagne, Cointreau which will retain the distribution, the results came back in the green thanks to the recovery of demand, giving an operating profit of 2.8 million after a loss of 4.0 million the previous year.
The group's net profit, excluding items, spring meanwhile to 107.5 million euros (109 million consensus).
Net debt, drastically reduced (-34% to 328.9 million euros), can reduce the ratio of net debt to EBITDA at 2.19.
Remy Cointreau title ended at 56.50 euros on Euronext Paris on Wednesday, recording an increase of 6.7% since January and has a market capitalization of 2.8 billion euros.
The IMF stands ready to extend repayment by Greece of its loans but expresses opposition to a major restructuring of the country's debt because of unforeseen consequences that this might have for the euro-zone countries said Tuesday the representative of Fund for Greece.
Greece has certainly made progress in managing its debt but can not afford to slow down reforms, "said Bob Traa, at a banking conference."Greece is at a critical point and has no time to lose," he said.
The Greek government is doing everything it can to avoid default on its debt, which amounts to 340 billion euros or 150% of its gross domestic product.
"If you want a restructuring that really make a difference, it must be really important. However, a debt restructuring of this magnitude would have incalculable consequences, not only in Greece but also in the euro area," he Bob Traa said.
It has been suggested that the IMF was open to other solutions."One can reasonably think lengthen payment periods, such as loans granted by euro area partners and the IMF (…) It is a technical question on which we can think," he said.
Greece has already obtained an extension of time to repay loans that were granted under the program of 110 billion euros developed by the International Monetary Fund and the European Union last year.
ENGAGING THE PRIVATE
German Chancellor Angela Merkel is among those who want private creditors share some of the burden of a second bailout, which had agreed the IMF, the EU, the European Central Bank last Friday.
The European Central Bank is strongly opposed to reducing the overall value of the Greek debt held privately, that is to say that creditors are paid less than their original bet.
The ECB noted, however, be open to the idea that creditors agree to "voluntarily" to buy new when the old Greek bonds mature, which means that Athens would not have to spend money.
The private sector banks have not said whether they would sign such an agreement or how high they would be willing to contribute.
As economists point out, a lack of Greece would be very bad for the country's banks, which hold a large part of Greek sovereign paper. "The fate of the Greek sovereign debt and banking system are inextricably linked. We are not in favor of a sovereign restructuring scenario," said Bob Traa.
The Greek government has also said it expects that Parliament will decide by the end of the month on the new austerity plan in the medium term, necessary for obtaining a new international bailout by the EU and the IMF, a government official said Tuesday.
"The parliament will vote on the medium-term plan by the end of June.It will consist of a single item, "he told reporters.
VOTING BLOCK
Within Pasok, the Socialist Party to power, some have claimed that each part of the plan, which provides for 6.4 billion euros of new austerity measures, and accelerated asset sales to reduce the public deficit public, is subject to separate votes.
Vote on a single block is to prevent each individual measure is challenged.
The official stressed that the government had offered a concession to the opposition New Democracy had requested a reduction in corporation tax to stimulate the economy in exchange for his support to the new austerity measures.Besides the decline in the SI, Athens plans to reduce the tax on the value added from 2012, the official said to the press under the condition of anonymity.
However, these measures will not be part of the medium-term plan submitted to parliament, the official said after a marathon meeting of the government which began Monday and continued Tuesday.
"In September, there will be a new tax law lowering the VAT and corporation tax from 2012.This law will be revenue neutral, "he said without providing details.
The European Union has called on major Greek political parties to reach a consensus on the interim plan covering the period beyond the next elections in 2013.
In addition, several government officials have said that a referendum on the austerity was not in the projects of Athens. Prime Minister George Papandreou had yet hinted Monday he would argue in favor of a law to organize such consultations.
"The government does not require a referendum or early elections," said one of them.
