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Brussels wants a freeze on Pac and a tax "Tobin

Anxious to reflect the period of restraint without precedent throughout Europe, the European Commission would propose a freeze on Wednesday of the CAP and the creation of a tax on financial transactions.

The proposed budget for the period 2014-2020, also called "financial perspective", should be adopted in the day and will kick off two years of tough negotiations on a budget expected a slight increase to about 1,000 billion euros over the period.

The equation is difficult for the Commission, it must both support the policy priorities such as infrastructure networks and research with minimal impact to the Common Agricultural Policy (CAP) put forward by France, the cohesion funds promised new entrants from Eastern Europe and the "discount" on the British budget contribution.

According to European sources, the trade-offs made Tuesday night and Wednesday morning are to freeze the financial amounts allocated to the CAP at the level of 2013, a ceiling of 371.7 billion euros over the period.

Deindexed of inflation and a possible increase in EU funding, this budget would increase the share of the CAP in the total budget significantly below the 40% it currently accounts.

However, Brussels would set the table an additional EUR 15 billion in order to "mitigate" the trend and anticipate several challenges in the years to come.

Within this envelope, 2.5 billion euros will be available to combat price volatility, $ 3.5 billion in reserve in case of crises and will be 4.5 billion designed to improve productivity, especially in the face of future competition Mercosur.

Moreover, according to these sources, the "cheap" British would not challenged and the cohesion policy of financial transfers to the poorest regions of the EU would be relatively preserved.

Lines of credit for infrastructure projects in transport, telecommunications and energy and the fight against climate change and research should be revised upwards, says it again.

"The Commission is an ambitious everywhere except on the CAP", says one of the sources consulted.

TAX "TOBIN"

The Commission has decided to counter the opposition of member states to review the EU budget to rise by offering to finance about one third through the creation of a tax on financial transactions, commonly known as tax "Tobin" said to be of the same sources.

According to plans developed by the Office of the Commissioner of Taxation, Aldirgas Semeta, and validated by José Manuel Barroso, President of the Commission, the tax would raise about 50 billion euros per year, or 350 billion euros of by 2020.

This scenario is based on a minimum tax of 0.01% on trade in derivatives transactions are easily relocated in financial centers outside the EU, and a higher tax of up to 0.1% on the exchange of obligations sovereign.Transactions in currencies fall also within the scope of this tax.

Supported by France, Germany, Spain and many other countries as well as MEPs and a large majority of Europeans, however, this idea could face British opposition to see tax issues be coordinated Brussels.

The Commission should also propose to review Twenty-seven of the common tax base for VAT in order to identify some of the income derived from them nationally to redirect them to the EU budget, which would further reduce the direct contributions made each years by the States.

However, the idea of ​​earmarking a portion of the revenues of the European market for carbon rights (Emissions Trading Scheme), which represents some 90 billion euros per year, should not be finally adopted by the Commissioners.

Once submitted, these proposals will be negotiated between Member States and, for some, with the European Parliament.

The chairman of the Budget Committee of Parliament, Alain Lamassoure, argued Wednesday that the institution would seek to make this debate as democratic as possible by involving the European Parliament and the public.

General strike in Greece against austerity

While the Greek Parliament examines a new austerity plan even stronger than the previous ones, the unions called a general strike of 48 hours. The euro area is preparing his side a "plan B". Greek unions have launched a new 48-hour general strike Tuesday, June 28 to protest against the austerity budget before Parliament.

Flights deleted, random power outages, canceled trains, banks closed: Greece will idle Tuesday, June 28, the first day of a general strike of 48 hours launched by unions to protest against the austerity budget review by Parliament. The unions oppose the measures in the plan: higher taxes and massive privatization.

Tuesday and Wednesday after three 24-hour general strikes since the beginning of the year, officials will strike again, banks closed and hospitals will work with staff on call. Journalists have announced their next work stoppages than five hours Tuesday and early Wednesday afternoon, which will affect especially the newspapers and websites broadcast information.

The austerity measures are intended to secure the payment by the country's creditors and the IMF-EU-a new tranche of money to Greece, which otherwise would be left at risk of default in July. Despite opposition from the street, the Socialist government expressed confidence in the ability of countries to take the step of discipline, through the adoption of multi-year plan of recovery and its implementing legislation.Votes are expected Wednesday and Thursday.

The vote seems certain austerity plan

Monday, George Papandreou urged Greek MPs to vote the proposed austerity budget submitted to them, so that the country to the brink, "stands". Greek Prime Minister, attempting to unite the government majority, which has 155 seats out of 300, said the vote "is a unique opportunity for the country stands." The new finance minister Evangelos Venizelos called on MPs to "get serious and unity (…) so that the coffers are not found empty at the beginning of July."

The ministers of the euro zone must meet July 3 to give the green light to the payment of the fifth tranche of the loan to Greece in May 2010, crucial for the country to honor its schedule in July and pay pensions and salaries.If the budget was not passed, Greece would be faced with the possibility of a default in the summer, with a global shock wave considered superior by some analysts to the effect on the markets by the failure of U.S. bank Lehman Brothers in September 2008.

However, if the new austerity program would be rejected, the euro area would work on a "plan B" to avoid bankruptcy of Greece and contagion to other countries, according to a European official. "We do not think what we're working, you can be certain," the source said speaking on condition of anonymity. The official said even in this case "the next step is not a default" of Greece. He declined to give details at this point.

The Greek government MPs to remember their "duty"

The Greek government on Saturday called on recalcitrant members of the Socialist Party (PASOK) to "do their duty" next week in Parliament, in adopting the new austerity plan demanded by donors in Greece.

The vote should be tight next Wednesday when MEPs will vote on the austerity plan developed five years with the International Monetary Fund (IMF) and the European Union (EU).They will vote the next day on the law enforcement program.

Donors require the adoption of this plan, which includes spending cuts, tax increases and privatization, before releasing the next tranche of aid to Greece avoiding lacking.

The Governor of the Bank of Greece, George Provopoulos, said Saturday that time was running out for Greece, which should put an end to debate and take concrete steps to restore its economy and reassure its partners and the financial markets.

"Now we must convince, by acts, the fact that Greece does not destroy itself, we must leave the rhetoric and start reforms," ​​he told the newspaper Kathimerini.

He said it is unrealistic to believe that there would be a painless exit from the crisis. He dismissed the idea that there is an alternative to the austerity measures which have been agreed with the EU and the IMF.

However, he adds, the plan to be adopted by Members in the coming days do not put enough emphasis on reducing public spending. According Provopoulos, the tax burden has reached its limits.

In parliament, the majority of the government of George Papandreou is reduced: the ruling Pasok has 155 deputies out of 300.Two Socialist deputies who said they would vote against these measures, the majority hangs by three votes.

After the parliamentary elections of October 2009, the Socialists had 160 members but the austerity measures, challenged every day in the street, caused five defections.

TWO-DAY STRIKE OVER THE VOTES

The new finance minister, Evangelos Venizelos, has offered to discuss with all members hesitant.

"I think the sense of responsibility will prevail in the end, the God of Greece is great," he told the Greek television station Alter.

For the Minister of Justice Miltiadis Papaioannou, elected socialist "must stop their ears against all the critics and do their duty."

One of the dissidents, Thomas Robopoulos, is not of that opinion. "Some businesses close every day and we want to take steps to block growth," he told Reuters this dealer Thessaloniki, one of the few businessmen MPs.

The austerity measures have plunged Greece into recession, the most violent for 37 years, with a gross domestic product fell by 4% last year.Unemployment reached a record 16.2% in March, and 43% among youth.

A general strike of 48 hours is held next week, coinciding with the votes of Parliament.

This week, walkouts have taken place in companies threatened by privatization, as the leading electricity producer PPC.

Venizelos acknowledged that many of the measures adopted by Athens on Thursday night with the EU and the IMF were harsh and unfair, but argued that they were inevitable.

Finance ministers of the EU have given until July 3 to the Greek Parliament to adopt austerity measures, before releasing the loan of 12 billion euros and prepare the second aid plan.

The Greek government provides for lowering the minimum threshold of income tax to 8,000 euros per year instead of 12,000 euros currently.

A special tax of solidarity on income will be introduced. It will be between 1% to 5% of revenues based on their amount.

The tax on heating oil will be slightly raised and a minimum tax will be introduced for self-entrepreneurs. This sector is seen as one where tax evasion is the most practiced.

Timothy Geithner Lagarde sees a talented candidate for the IMF

The U.S. Treasury Secretary Timothy Geithner believes that the French Finance Minister Christine Lagarde is a candidate "exceptionally gifted" to head the International Monetary Fund, said Thursday the Treasury.

The press release does not extend to support a formal bid for the French.

Timothy Geithner and Christine Lagarde met Thursday and discussed the situation in Europe, said a statement from the Treasury Department.

Timothy Geithner "believes that the experience and solid leadership skills of the Minister Lagarde make her an exceptionally gifted candidate for the general management of the IMF," said the spokesman.

Wall Street ends down after Fed meeting

U.S. stocks ended down Wednesday, the Fed has acknowledged the weakness of economic recovery in the U.S. without giving any clues to possible plans for additional support.

The Dow Jones finished lower by 0.66% or 80.34 points at 12,109.67 points, while the Standard & Poor's 500 fell by 0.65% or 8.38 points to 1287.14 points and the Nasdaq Composite Index gave up 0.67% or 18.07 points to 2669.19 points.

Comments from Fed Chairman Ben Bernanke after the decision of the U.S. central bank to keep interest rates at a level close to zero did not give evidence to suggest that the Fed would consider a third series of support measures to economy after the end of the second series called QE2, June 30

Values, FedEx was awarded 2.6% to 91.44 dollars. The mail group on Wednesday issued a strong earnings in the fourth quarter of fiscal year and issued an optimistic forecast for 2012. Rival UPS has gained 0.65% to 71.11 dollars.

Adobe Systems dropped by 6.25% to 30.01 however dollars.The software developer announced Tuesday a 54% increase in earnings in the second quarter but expects weak demand in Europe.

TransAsia Airways orders six Airbus A320neo

The Taiwanese airline Transasia Airways announced Tuesday an order for six Airbus A320neo.

This order represents $ 600 million based on list prices.

Safran and Honeywell join forces in the aircraft taxiage

Safran and Honeywell Aerospace announced Sunday a joint venture equally in a new system taxiage greener aircraft from the gateway to the runway, designed to save companies up to 4% fuel consumption .

This new system of "green taxiing," which will be available from 2016, represents a market of five billion dollars over the next 15 years, said the two groups at a news conference.

It is aimed primarily at short and medium haul aircraft like the Airbus A320 or the Boeing B737, where the fuel consumption during this phase of rolling along the tarmac is the largest in proportion to the total time of flight compared the long haul.

"With the system of 'green taxiing' Electric and Honeywell (…), Safran will allow airlines to save hundreds of thousands of dollars per aircraft per year," said Tim Mahoney, CEO of Honeywell Aerospace in a joint press conference.

The principle of "green taxiing" is to stop using the motors to push the aircraft towards the runway, but to place a small electric motor in the wheels.

The rising price of kerosene, the main cost item for airlines with personnel costs, prompted the International Air Transport Association (IATA) to halve the last week its forecast for profit for the entire airline industry in 2011 to four billion dollars.

VERY INTENSE ACTIVITY LEVEL

Jean-Paul Herteman, CEO of Safran said addressing the Paris Air Show, which starts Monday, with "very good prospects."

"The activity level is still very strong even though the aircraft manufacturers' order books are full of four or more years," he noted, adding that it had doubled its turnover in the spare parts 2020.

Safran's joint venture with General Electric, CFM International, said on Saturday expect strong demand for aircraft for the next 20 years, while worrying about the pressure on the prices of raw materials whose prices reach record highs.

CFM delivered in late May-56 22,000 CFM, the world's best selling, with a target of 30,000 by 2020.His successor, Leap, the first Chinese customer for its Comac C-919, is one of the drivers selected by Airbus for A320neo, the enhanced version of its flagship single-aisle, and is available to Boeing for possible new version of its 737 or a new aircraft.

Jean-Paul Herteman also expressed confidence in the realization of his imminent takeover of the U.S. L-1, the shareholders of the specialist security solutions approved in February, saying just wait for the completion of the recent regulatory approvals for United States.

Safran, which generates 80% of its turnover abroad, increases the acquisitions outside Europe, where two-thirds of its workforce and suppliers.

"Our customers pay us in dollars and it must be balanced as much as possible our net exposure to currency fluctuations, therefore foreign acquisitions help us meet those goals," he said.

Jean-Paul Herteman also confirmed to Reuters talk to Rolls-Royce to provide a common solution to the proposed engine drone Telemos developed by Dassault Aviation and BAE Systems, EADS Talarion competitor.

The Swiss franc crosses the threshold of 1.20 against the euro

The Swiss franc sign Thursday a new high against the euro, crossing the symbolic threshold of 1.20 to the euro while the disturbance case Greek market and pushing investors looking for safe havens.

The euro fell to mid-day more than one percent to a record high 1.1957 francs on electronic trading platform EBS, traders suggesting an acceleration of losses in the wake of 1.1970.

"It seems that the momentum for the pair euro / franc is accelerating downward," said Kathleen Brooks, currency strategist at FOREX.com.

The implied volatility of the euro / franc surged, reflecting the perceived risk, the options market, a new slide in the spot price.

Implied volatility on one month exceeded 12% against 11.2% the previous day.

The Swiss National Bank (SNB) as expected Thursday maintained its expansionary monetary policy, but it evokes the strong Swiss franc as a major risk, especially for the export industry.

Analysts, comforted by the words of Jean-Pierre Danthine, board member of the SNB, consider it very unlikely the resumption of market intervention. "It does not appear that the NBS wants to intervene, and if it does, it would act in an environment of risk aversion," said Brooks.

The SNB has occurred between March 2009 and June 2010 to counter what she felt at the time as any excessive appreciation of the franc could cause deflation.

The franc also rose against the dollar, down from 0.5% to 0.8491 francs.

"Papandreou is expected to rise to the challenge"

Greek Prime Minister does not resign or form a government of national unity. George Sefertzis political scientist Greek, the street will not drop their arms until the government will not be dropped. Interview. Greek Prime Minister George Papandreou, lorsd'un televised speech on 15 June 2011, where he announced a government reshuffle. Eventually there will be no national unity government in Greece. Geroges Papandreou, Prime Minister, just a redesign. The opposition must be disappointed …

It is even more disappointed that Papandreou made the mistake of giving the impression that he would resign, throughout the day. Now it will just reshuffle his government and submit it to a vote of confidence in Parliament.Yet he had begun to negotiate with the opposition but it posed two conditions that he found unacceptable: that a new prime minister is appointed and that the new government to renegotiate the agreement on the bailout. The opposition claims including lower taxes on corporations and individuals. What Papandreou refused to consider given the deficit.

Arrive there anyway to vote its savings program, a sine qua non to receive the last installment of the bailout?

A Socialist MP has defected Tuesday, and another said he would vote against … P Papandreou should still be able to pass the budget by a few votes from the extreme right and center. However, it must expect a rise in social protest because public opinion really hoped a new government.Although in reality the conservative opposition may not have much else to offer, the Greeks wanted a fresh start.

Public opinion supports this movement she "outraged"?

A portion of the population, the "realists" have resigned and see no alternative to austerity. These senior professionals and well integrated in the labor market. But much of the middle class no longer wants to suffer sacrifices without seeing results. Among them, the vast majority under 35 years but there are also many older people. The "outrage" protest against the political class as a whole. They accuse the political system to be responsible for the economic situation. There is also a feeling of national humiliation, especially with the impression that with the privatization program, the family jewels are for sale to foreigners.

What do they ask?

They want higher wages and lower the retirement age but also higher taxes on wealthy. They refuse either to employees to support the effort to restore public finances.

What could drive these social movements if they reinforce?

They will not prevent the implementation of austerity measures. However, they undoubtedly precipitated the early elections. And then the ruling party will fall, like Portugal and Ireland.

China does not disarm face inflation

The People's Bank of China raised Tuesday by 50 basis points above the required reserve ratio of banks, hoping to contain high inflation that poses many economic and social risks.

Beijing had announced earlier that consumer prices rose 5.5% in May, an unprecedented growth in nearly three years.

This is the sixth time this year and the ninth since October that China's central bank raises the reserve requirement ratio in an attempt to curb inflation.

When the legislation comes into force June 20, the ratio imposed on the country's largest banks will reach 21.5%, a record level.

By reducing the lending capacity of banks, Beijing hopes to serve the Chinese economy of excess liquidity that fuels inflation.

QUID OF INTEREST RATES?

After the publication of inflation figures a few hours ago, several analysts had expected a rise in interest rates in the weeks to come.

That prospect now seems a bit farther with higher reserve ratios.

"I think the ratio is higher this time mainly to contain inflation.This decision should push the next increase in interest rates later this month or early next ", said Du Zhengzheng, an analyst with Bohai Securities in Beijing.

Since October, the Chinese interest rates were raised four times. The rate at one year from the central bank to 6.31%, and the one-year deposit is 3.25%.

The inflation rate of 5.5% in May was the highest in 34 months. It was 5.3% in April.

Non-food prices meanwhile rose 2.9% from one year to another, the fastest pace since the beginning of the statistical series in 2002.This reflects a growing phenomenon to new parts of the economy.

"Inflationary pressures remain high," said Sheng Laiyun, spokesman for the National Bureau of Statistics, but the economy is on track to find "a stable and relatively fast growth."

The price increase is visible in that of producer prices, which rose 6.8% year on year last month.

Industrial production in turn increased by 13.3% over one year, which represents its weakest growth since November.