Prime Minister Lucas Papademos called on Sunday for three party leaders Greek government to publicly commit to implement the reforms demanded by the country's creditors in return for a second help.
The three party leaders were summoned Greek government on Sunday by Lucas Papademos to overcome their objections to the new austerity measures demanded by creditors, even if they have so far resulted only exacerbate the recession of countries.
George Papandreou, Antonis Samaras and George Karatzaferis – respectively leaders of the Socialist party, New Democracy (right) and Laos (far right) represented in the Greek coalition government – arrived mid-afternoon Maximos the palace, where the offices of the Prime Minister.
The representatives of the troika of institutional creditors of the country (euro area, European Central Bank and International Monetary Fund) have previously met the Prime Minister, Finance Minister and the Minister of Labour. The Greek government has been negotiating for weeks on the establishment of a structural adjustment program of the country in exchange for a second loan of at least 130 billion euros, which would add to that 110 billion awarded in May 2010 the country to protect it from bankruptcy.
100 billion euros of debt
Negotiations described as "superhuman" Sunday by a senior government official, intended to prevent Greece a default in the month of March. An alternative trading-just as crucial-government with its private creditors to erase 100 billion euros of debt, depends on negotiating with creditors. Among the hard spots, rejected both by the Greek trade union leaders by most politicians, are the demands of the troika of generalized lowering labor costs.
"I come with the hope that I will not repeat what was said recently the former German Chancellor (Helmut) Schmidt," said George Karatzaferis to the press on arrival at the Prime Minister, after warning that it did not feel ready to bow to pressure from Berlin or "blackmail". In December, Helmut Schmidt had expressed concern about how other countries dealt Berlin and European partners in managing the debt crisis, when Germany imposes its solutions to its neighbors.
Saturday night, the Greek Finance Minister Evangelos Venizelos said the negotiations "on the razor's edge" were to conclude Sunday evening that Greece avoided a default in March
Risk of bankruptcy in March
The leader of the Eurogroup, Luxembourg Jean-Claude Juncker, has also lobbied on Saturday night by evoking the risk of "bankruptcy" of Greece in March if the reforms demanded were not completed.
"If we were to find that everything goes awry in Greece, then there would be no new program" refinancing of the country, said the head of government of Luxembourg. "This would mean bankruptcy in March," he added. "Greece must know that we will not back down on the issue of privatization," he said, regretting that there is no other "elements of corruption at all levels of government" Greek.
The opponents argue that wage cuts will exacerbate the recession in Greece, where the economy is stifled by a recession that puts on airs of depression, with GDP expected to fall by around 6% in 2011 after two years of austerity.
According to a government study released last week, the unit labor costs in Greece has already fallen by 14.3% between the first quarter 2010 and third quarter 2011.
But according to the head of IMF mission in Greece Poul Thomsen, measures of wage compression in the private sector will boost the economy through a gain in competitiveness. Paul Thomsen has advocated such a reduction in the minimum wage, a red rag to the unions, saying only 751 euros gross per month was 35% higher than in Portugal, and 20% in Spain.
The Industry Minister Eric Besson confirmed Wednesday that the price of gas and electricity for individuals would be maintained until the presidential election, despite requests from EDF and GDF Suez.
The Minister of Industry and Energy Eric Besson confirmed Wednesday that the price of gas and electricity for individuals would be maintained until the presidential election, despite the attacks to justice and GDF Suez of other gas suppliers. Asked about RMC and BFM TV about the continued freeze gas prices to presidential, Mr Besson said: "Yes. The Prime Minister made this decision and he made it clear to the national representation . (…) In any case for individuals. "
"We have a simple thesis is that the increases should be extremely limited so as not to influence the purchasing power," he noted, without being able to specify whether this also applied to the gel subscription. For electricity, Mr. Besson is back in a statement to AFP on the remarks made earlier on the air. "It will increase slightly, probably," he said on BFM TV and RMC. "I do not know (when) we will discuss this with EDF."
Asked by AFP, the Office of the Minister of Energy said: "Eric Besson reaffirms that in accordance with the arbitration of the Prime Minister, electricity rates applicable to individuals are frozen until 1 July 2012, and no decision is expected to increase. "
Faurecia announced Friday the successful refinancing for a $ 1.5 billion, the group has launched Monday.
These operations include a bond due in December 2016, for $ 350 million with a coupon of 9.375%, said the automotive supplier in a statement.
The refinancing of Faurecia also involves a new syndicated loan of 1,150 million, consisting of two bands A (690 million euros) and B (460 million), respectively of maturity in November 2014 and November 2016.
These two operations will allow us to prepay a loan of 250 million euros made by Peugeot in conjunction with the refinancing of the existing syndicated bank also said Faurecia.
The U.S. economy continued to grow at a slow pace in September, but prospects appear dim, believes the Federal Reserve in its "beige book" on Wednesday.
"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 rating agency Moody's scratched on the first "triple A" French, by giving three months to assess its stable outlook, on a background of slower growth, crisis in the euro area and calls for a recapitalization of banks.
A nearly six months of the presidential election, the French authorities have once again assured Tuesday that they would do anything to keep the maximum score, which allows the country to finance at low cost, and promised new measures if needed.
But their room for maneuver seems limited because growth such as trust are affected globally in a context of anxiety in financial markets.
Bank stocks have fallen to the Paris Stock Exchange after the announcement of Moody's, while the yield on the French debt and insurance against the risk of default (CDS) rose, the yield spread between French and German debt (spread ) reaching a high for 16 years.
Moody's does not mention specifically the possibility of a perspective "negative" on the Aaa French, but if it were to lower the perspective, a downgrade could occur over the next two years.
"The 'triple A' is not in danger because we will answer these and we will be even ahead of the goals of deficit reduction," said French Finance Minister, Baroin, on France 2."If necessary, we will take steps for the appointment."
"We will make every effort not to be degraded," he added, noting that "we still have enough tax loopholes, if necessary, we will remove them."
GROWTH flu
The rating agency said in a statement: "In the next three months, Moody's will review and assess the stable outlook against the government's progress in the implementation of these measures (fiscal consolidation-Ed), taking into account all economic and market potential negative. "
Moody's also refers to the likely increase in the French contribution to the rescue of Greece and the prospect of a recapitalization of banks in the country, to which the State may need to participate.
"The deterioration in the debt figures and the possible emergence of new financial commitments put pressure on the stable outlook of the Aaa rating of the state" French, says the agency.
Engine of French public deficit, the country's growth next year should be much lower than the 1.75% forecast by the government, which may influence the path that should lead France to a deficit of 4 , 5% of GDP in 2012 and 3% in 2013, after 5.7% this year.
According to the survey conducted by Reuters with a score of economists, and they expect an average growth of 1.0% next year.
Baroin has for the first time said Tuesday that the objective of 1.75% was "probably too high."
Economists polled by Reuters Tuesday, believe that the economic downturn is the first threat to France and its sovereign rating, a threat reinforced by the possibility of further government intervention to resolve the crisis in the eurozone and strengthen the banks.
"The Triple A French is a little on the hot seat, especially if the French economy was facing a shock much deeper than what we anticipated," said Jean-Christophe Caffet, an economist at Natixis.
For Gilles Moec, an economist at Deutsche Bank, "the issue of growth is most important because it constitutes the core of the macroeconomic strategy of France.""The engine stalled, forcing more likely to act on the structural deficit."
Philippe Waechter, director of economic research at Natixis Asset Management, for its part said that "if growth is not expected robustness, the objective of reducing the budget deficit will not."
Jean-Louis Mourier, economist at Aurel Leven, said meanwhile that "bank recapitalization would impact the debt but the real problem is the trajectory of public finances and therefore growth."
PUZZLE AND EUROPEAN PRESIDENTIAL
Moody's notes that the level of debt of France is among the highest Aaa rated countries, while remaining content with a relatively low weight of the interests of debt to government revenue.
But the ability to fund high levels of debt "is based on investor confidence in the government's ability and willingness to cope with unexpected challenges," the agency said.
A situation even more critical that the chronic current account of France requires it to obtain financing from foreign investors.
François Fillon on Tuesday urged members to refrain from bidding on the draft budget for 2012, including the examination begins on Tuesday, with specific reference to the warning from Moody's.
"In this context, the budget debate must be exemplary," said the head of government before the UMP group, reported a number of members present at the meeting.
A weakening of the "triple A" French further complicate the resolution of the crisis in the eurozone, France, with Germany being the main contributor to the European Financial Stability Fund (EFSF), the European support fund, whose rating depends part of those of its contributors.
Beyond the EFSF, the European dynamic could be profoundly affected if the second largest economy in the euro area clinched the best student, Germany.
The threat of a possible negative watch placement of Aaa, should also limit a little more room for maneuver of the candidates in the presidential election of April-May
The Socialist candidate Francois Hollande and his family have announced that their action, if they win the presidency, will be dictated by the need to preserve the confidence of creditors of France.
China's trade surplus declined in September for the second consecutive month, reflecting the weakness of the global economy and the slowdown in China itself.
Import growth as exports slowed last month.The accentuation of the debt crisis in Europe and the slower growth in the U.S. explain this trend, which could enhance the Chinese authorities in the conflict on the level of the yuan.
"The rising exchange rate of the renminbi could limit the margin of export growth", has also speedily regretted Lu Peijun, deputy director of China Customs, at a press conference.
"China still faced inflationary pressure imported relatively strong and the terms of trade deteriorate as well," he added.
Exports grew by 17.1% last month compared to September 2010, after a growth rate of 24.5% the previous month, according to data released Thursday by the Office of Customs.
At the same time, imports increased by 20.9% yoy against 30.2% in August.
The surplus in the trade balance of China and stood at $ 14.5 billion in September, against 16.3 billion average expected by economists and after 17.8 billion in August.This represents less than half of the surplus in July, which amounted to 31.5 billion.
Year over year, the trade surplus appears to 180.3 billion dollars.
"Export growth in September was much lower than the expectations of the markets, reflecting the global economy coughs, and we expect this trend to slowing exports will continue in the coming months" , Analysis Wang Hu, of Guotai Junan Securities in Shanghai.
"The narrowing trade surplus and a slowdown in imported inflation could ease the pressure on Beijing to accelerate the appreciation of the yuan," said Du Zhengzheng for its part, an analyst with China Development Bank Securities.
Economists, relayed by western politicians, believe that the Chinese currency is undervalued, giving an advantage to the products 'made in China' on the international markets.
In Washington, the Senate passed a bill Tuesday that could force Beijing to raise the price of its currency under penalty of imports of Chinese goods taxed. China denounces protectionism in disguise and an obstacle to world trade rules. (See)
The trade surplus of China vis-à-vis the United States, however, remained unchanged from August to September, 20 billion.
Vis-à-vis the European Union, it decreased to $ 12.9 billion against 14.8 billion in August.
Slovakia is the latest member of the eurozone to vote strengthening of the European financial stability. Part of the coalition threatened not to accept the text. If no vote, there is no "plan B" according Amadeu Altafaj-Tardio, spokesman for the European Commission. Amadeu Altafaj-Tardio, spokesman of the European Commission for Economic Affairs.
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.
Air Liquide finds no significant decrease in demand of its customers and believes that the market environment for the group was relatively normal, except for some adjustments in the electronics, said Tuesday its CEO Benoît Potier.
"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%.
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 .
The Court of Appeal of Paris Thursday approved the waiver of tender offer (OPA) given to Hermes by the Financial Markets Authority (AMF), giving the luxury group the green light to build his family holding company .
To counter the aims of LVMH, who had taken a surprise 17% stake in Hermes October 2010 (which has since increased this stake to 21.4%), the family shareholders of Hermes had opted for the creation a privately held holding company comprising 50.2% of the capital.
Legally obliged to launch a takeover bid for the balance, they had requested a waiver that had been granted by the AMF in January and has been an appeal by the Association for the defense of minority shareholders ( Adam).
The trading of the Hermes is suspended on Thursday.It will resume Friday.
