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.
Belgium, France and Luxembourg have Monday morning launched the plan to dismantle the Franco-Belgian bank Dexia, the first European victim size of the debt crisis in the euro zone, after a day and a night of marathon negotiations.
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.
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 .
LyondellBasell group wants to close its refinery in Berre, in the Bouches-du-Rhone. If the project is completed, France will have lost three refineries in a year. The number of hexagonal site will be increased from 23 to 10 in the space of 40 years. Employees of the LyondellBasell refinery in Berre, in a social movement in 2010.
The carnage continues for oil refineries. Total after Dunkirk in 2010 and Petroplus to Reichstett (Bas-Rhin) in June, the American petrochemical company LyondellBasell announced Tuesday plans to close its refinery in Berre, in the Bouches-du-Rhone, which it considers unprofitable .
The site employs 370 employees in a petrochemical complex in 1270 employees will lose 120 million euros a year depending on the direction. But the group failed to sell it. No less than "85 entities around the world were approached during the sale process, to no avail.The refinery has in fact been no bid "has he explained. This ensures that only 370 jobs are directly affected refining risk. But unions argue that the loss of jobs could extend to the entire complex.
In response, nearly a thousand employees voted in a general meeting Tuesday the start of a "strike hard" for 48 hours. Wednesday, the entire petrochemical complex was shut down. Between 200 and 300 employees are present for locking, according to unions. The next general meeting is scheduled this Thursday at noon. Those decisions involved a year to the day after the start of great social movement that paralyzed almost all French refineries and caused a fuel shortage.
General meetings in nine out of ten sites
And the risk of a new scale strike is beginning to emerge.The movement of employees of LyondellBasell could spread, even if solidarity is shy at the moment. Employees of nine of the ten French refineries have held general meetings on Wednesday. And could lead to possible actions. But for now, only employees of the Total refinery at Donges, Loire-Atlantique, voted in favor of an immediate movement but symbolic: a decline in production to a minimum flow for 24 hours.
On the side of the Total refinery in Gonfreville l'Orcher, near Le Havre, general meetings were also held. But only a third of the participants voted in favor of a strike and the unions did not consider the results sufficient to initiate an action. A Fos-sur-Mer, in the ExxonMobil refinery, there was no general meeting.
The situation could change Friday.A meeting of employees of the four sites in the area of Berre be held and could lead to possible actions. If the strike is decided, it could spread to other refineries.
France lost 12 refineries in 40 years
The future seems to darken French refineries from year to year. There were 23 in the late 70's, there are no more than 11 still active today. And the closure of the Berre could add to this sad list. Refineries "are in excess production capacity, and do not have sufficient opportunities" because of "demand is very sluggish," said Jean-Louis Schilansky President of the French Union of Petroleum Industries (Ufip). It will even "operating loss of several hundred million euros" in 2011, a trend in "neighbor" of 2009, when they lost 1 billion euros, "he added.According to Les Echos, refining margins, which represent the difference between the price of refined products and their production costs, decreased by 60% between 2008 and 2009. And are now at a "crisis level".
French refineries were in effect in 2010, almost 82 million tonnes of petroleum products like gasoline, diesel or fuel oil. But demand remains well below capacity. Consumption in France in 2010 reached 33.6 million tonnes of diesel and 8.2 million tonnes of gasoline. "Since 2007, there was a drop in consumption in Europe related to energy conservation, and the phenomenon is exacerbated by economic crises," said Constancio Silva, an economist at the French Petroleum Institute-New Energies.
"The divestitures or closures inevitable"
He said the refiners were not able to adapt to changes in demand.They suffered from the rise of the French nuclear fleet. This has indeed led to a decline in demand for heavy fuel oil, which was used previously to operate power plants.
In addition, refiners have invested in the 70 and 80, in units of gasoline production, then the fuel most consumed in France. But they were surprised by the explosion in demand for diesel, accentuated by a favorable tax and lower consumption of diesel engines. The sale of diesel fuel currently represents 75% of fuel sales in France. Motorists consume 33 million tons, but French production capacity amounts to only 20 million. Refineries hexagonal therefore find themselves being forced to export 30% of its production of gasoline, including the United States where, again, demand has slowed.According to the Professional Committee of oil, gasoline sales abroad have in fact fallen by 20%. And Parellel, oil companies are forced to buy diesel fuel abroad, which increases their expenses.
In this context, "ultimately, disposals or closures will be inevitable," says the Ufip. Pessimism that refuses to admit the unions. In response to the closure of the Berre, CFDT and CGT federations in the industry, oil chemistry yelled "stop the slaughter." "This announcement is unacceptable. For it is not linked solely to the problems of weak refining margins and the inadequacy of the means of production with the market, the surplus of gasoline and diesel deficit" Have they denounced.
According to them, refinery closures meet market logic and a lack of investment.The FNIC-CGT calls "a multi-year investment" on the basis of the report of the French Institute of Petroleum, which presented June 22, through investment, featured tracks of development for French refineries.
An argument shared by Thomas Porcher, PhD in economics author of "A barrel of oil against 100 lies." He said the lack of investment to change the production structure of French refineries explains their lack of profitability. "Despite the record profits from the price effect of rising oil prices, these investments were ousted in favor of a preference for investments in refineries near the mining areas. This is the case Total in Saudi Arabia with the Jubail refinery example. It can produce low-cost, because of its proximity to the deposits.But it is especially with a modern production system to adapt the ratio diesel / petrol desired. The problem of refining French could no longer be similar "to a lay-sector" including the means of production have become unsuitable as a problem of competitiveness. While the first causes the second "he says.
Global stock markets have tumbled again Monday, frightened by the event of bankruptcy of Greece. Paris dropped more than 4%, ending at its lowest level since April 2009. French banks have lost more than 10% of their value. The trading floor in Frankfurt
Global stock markets tumbled again Monday, maddened by the assumption of more and more openly discussed a bankruptcy of Greece despite the soothing statements from European officials.
"The events taking place in Europe affect a growing market with a flurry of distressing information," noted Patrick O'Hare, Financial Analysis Site Briefing. "The markets anticipate scenarios very dark and do not want to remember that the darkest assumptions," added Yves Marc, Global Equities."We remain in a market in flux guided by fear," added Franklin Pichard, Director Barclays stock.
All European stock markets ended the day deep in red, Paris, Milan and Madrid, ending even the lowest for two and a half years. Briefly falling over 5% in early afternoon in Paris because of particular concerns for French banks, under threat of a deterioration in their rating by the rating agency Moody's.
European shares, which had already been a Black Friday, continued to plunge. In closing, Paris was unscrewed from 4.03% to 3.89% Milan, Madrid from 3.41%. Frankfurt yielded 2.27% and 1.63% in London. In Asia, Tokyo ended down 2.31% and 4.21% of Hong Kong.
Wall Street resisted in the middle of the session: to 16:00, the Dow Jones that yielded 0.75%.But the trend remained fragile and could accelerate the losses from one moment to another, stressed brokers.
The hypothesis of a failure of Greece, or even leaving the euro area, continues to gain ground and influence markets. "European officials are trying to take a more firm vis-à-vis Greece, in front of a ras-le-bol growing against the bailouts in Europe and North against austerity in the south "in the region, said Michael Hewson, an analyst at CMC Markets.
This weekend, the German Minister of Economy Philipp Rösler has not ruled out a bankruptcy ordered Greece to save the single currency before the department will remember come Monday that Athens had its place in the euro .
The Commission President José Manuel Barroso and German Chancellor Angela Merkel in turn tried to restore calm by ensuring, in a joint statement after a meeting in Berlin, the EFSF, in its strengthened would be operational by the end of the month.
The European Financial Stability Fund created last year, bringing relief to struggling countries, must in particular be allowed to buy government bonds on the secondary market. Athens, which is desperately trying to reassure its creditors, has pledged Sunday to take additional steps to save $ 2 billion in 2011.
The European Commission has welcomed the announcements and said that the donor countries meeting in a Troika-European Commission, European Central Bank and International Monetary Fund-would return to the country "in the coming days." The atmosphere had deteriorated markedly since the unexpected departure of the country of a Troika mission in early September.
Bank stocks, especially in France, have been particularly turbulent Monday, weighed down by their exposure to sovereign debt and fears about their solvency. BNP Paribas has unscrewed from 12.35%, 10.64% of Crédit Agricole and Societe Generale of 10.75%.
"Whatever the scenario Greek and supplies to go, French banks have the means to cope," he tried to reassure the French Minister of Economy and Finance, Baroin, reiterating a message delivered in the morning by the governor of the Banque de France Christian Noyer.
"We are ready to provide liquidity to banks requested" to "unlimited" and "fixed" for the euro area, for his part reiterated the governor of the European Central Bank (ECB) Jean-Claude Trichet, in his as a spokesman for the group of major central banks.
The week promises to be crucial. Wednesday, an emergency meeting of the IMF to be held on Greece and the finance ministers of the euro area and European Union will meet Friday and Saturday in Poland to try to complete the second level of support Greece nearly 160 billion euros, promised the country July 21.
However, the markets seem to doubt the capacity of policy to agree and thus to regain control the crisis, especially after the G7 meeting on Friday and Saturday, which has resulted in "no action" according to an analyst.
Finance ministers and central bank governors of the seven richest countries in the world (G7) have simply promised Friday to Marseille to respond "strong" and "coordinated" to the crisis but without specifying their strategy.
Considered a value at risk in this context, the euro was heavily abused: Monday he touched its lowest level since mid-February against the dollar and 10 years against the yen.
On the debt market, the rates of German and U.S. bonds, safe havens, were at their historic low.Conversely, interest rates have soared Monday in a securities issuance of public debt in Italy.
UK industrial production fell in June against all odds, while the country's trade deficit reached its highest level since December, according to figures released Tuesday by the Office for National Statistics.
Faced with these figures, which indicate the fragility of economic recovery across the Channel on the eve of the release of new macroeconomic forecasts, the markets expect the Bank of England revised downward its growth projections for 2011 and 2012, if it signals a further monetary easing.
UK manufacturing output – which excludes the "utilities" and the oil and gas – has declined by 0.4% in June after rising 1.8% in MayAnalysts polled by Reuters on average expected a 0.2% increase.
Industrial production has signed its largest quarterly decline since May 2009. It fell 1.6%, even more heavily than the 1.4% decline posted during the publication of preliminary figures of British growth.
The British trade deficit vis-à-vis the rest of the world meanwhile reached its highest level since December, standing in June to 8.873 billion pounds (10.18 billion euros), against 8.467 billion one month earlier.Economists on average had expected 8.1 billion.
These figures illustrate the fragility of economic recovery across the Channel, while Britain was counting on this year's growth of exports and the manufacturing sector to offset sluggish domestic demand made by the context of fiscal austerity.
The producer prices fell by 0.1% in France in June, the decline in oil prices continues, show figures released Friday by INSEE.
Eight economists polled by Reuters on average expected a 0.1% increase, with estimates ranging from -0.3% to 1.0%.
The index fell 0.5% in May, which elected its first decline in 20 months (September 2009).
In one year, the index of producer prices in the French industry is up sharply, by 6.1%.
Prices of petroleum products were down 2.2% in June after -4.6% in May The increase over one year remains 21.6%.
The food prices rose 0.4% in June as in May. In one year, their increase is 7.3%.
Ipsos announced Wednesday the acquisition of Synovate, the market research arm of the British group Aegis, which will allow it to climb to third place worldwide in the sector.
The operation, performed on the basis of an enterprise value of 525 million pounds (595 million), will be financed through new debt of 250 million euros, an increase in capital of 200 million, with preferential subscription rights, as well as through existing credit lines and cash, Ipsos said in a statement.
The transaction must be approved by the shareholders of Aegis, which will be called a general meeting on August 11.Vincent Bolloré, who holds 26.5% stake in Aegis, has already committed to vote in favor of the transaction.
The French group, world number five in the sector, had entered into exclusive negotiations with Aegis in late June.
Ipsos title ended at 31.20 euros on the Paris Stock Exchange Tuesday, falling 12% since early January. Its market capitalization is 1.07 billion euros.
The second rescue plan for Greece will reach 109 billion euros, of which 37 billion will be based on the private sector, it said in the final communiqué of the European Summit held in Brussels on Thursday.
"The net contribution of the private sector is estimated at 37 billion euros," the document, which states in a footnote to the page that this figure takes into account the cost of credit enhancement for the period 2011-2014.
The repurchase program will contribute to debt of 12.6 billion euros, bringing the total to 50 billion euros over the period 2011-2014.
Over the period 2011-2019, the net contribution of the private sector is expected to reach 106 billion euros.
This money will be lent by the European Financial Stability (EFSF), will be accompanied by an interest rate of about 3.5%, and maturity of the loans will be extended to seven and a half years to 15 years less, even 30 years.
"We will provide the necessary resources to recapitalize banks if the need Greek manifesto", it said.
Then everyone moved next to the disappearance of oil, another resource, even indispensable, is also in danger of extinction: the drinking water. So, according to Dieter Kuffer, portfolio manager at SAM chain Robeco, the investment in the sector is expected to increase and offer shares of companies with beautiful long-term capital gains. A woman drinks water near a source of fresh water Dharji, a small village in western India. What are the benefits of investing in the water today?
Despite economic fluctuations, the market for water, which weighs 480 billion, continued to grow unabated. According to Clarus Securities, it grew by 6 to 8% in industrialized countries and from 10 to 15% in emerging markets in 2010. And it will become more and more buoyant, supported by increased demand.Between the increase in world population and urbanization, household consumption will explode. Meanwhile, the needs of agriculture will increase further due to changing food habits, like those in the industry. Especially in emerging countries.
Water however, is not a scarce or rationed, like oil …
Of course, it covers three quarters of our planet. But 97.5% of resources are salty. As for freshwater, it is usually infected with impurities that make it not directly exploitable. For example, 40% of U.S. lakes and rivers are polluted. This involves going to pump groundwater in less accessible and to develop remediation technologies expensive. Moreover, transport infrastructure is aging, which results in a significant waste. In France and Spain, 30% of the water is lost before reaching consumers.Clearly, there is a massive need for investment in both processing, transportation and desalination technologies. Of course, fiscal discipline in the West, the recent revolts in North Africa and the Middle East or the disaster will be Japanese to question certain expenditures in the short term. In the long run, states will have no choice but to invest in infrastructure related to water. It is simply vital. All companies in this sector will enjoy. And that is why they should record stock performance above average.
In which country, the water sector will be there as a carrier?
Without hesitation, China. The Middle Kingdom concentrates 20% of world population and only 7% of water resources. And this is largely polluted.The amount of water available per capita per year is only 2100 cubic meters in 9400 against the G20. As a result, Beijing has already planned to double its annual budget for water-related infrastructure over the next decade. There will be increased to 400 billion yen against 200 billion in 2010. A goldmine for all businesses … and their shareholders.
