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Finance ministers of the euro area, meeting in Brussels last night, finally managed to agree on a rescue plan of record 237 billion euros. Financial markets themselves remain cautious. Record bailout for Greece

The euro area has decided to forceps Tuesday a new record bailout, potentially reaching 237 billion euros for Greece in the hope of avoiding the release of the Monetary Union without allay concerns about future of the country.

The agreement came in the night after more than thirteen hours of negotiations between the Finance Ministers of the monetary union, during one of those crisis meetings in Brussels with the euro area is now used. The agreement must "secure the future of the country in the euro area," he told reporters their leader, Jean-Claude Juncker, while many economists believe the country is doomed to end to leave .

European Commissioner for Economic Affairs, Olli Rehn, told him of a "real chance to make a fresh start" and "an essential step for Greece and the euro area". The aid package includes a component from a public assistance, loans-mainly-to the tune of 130 billion euros until the end of 2014, after an initial program of support for the country decided May 2010 had already reached 110 billion euros. This has proved insufficient. The IMF should be involved, but making less than in previous aid plans. It will take a decision in March.  

The other aspect concerns a debt relief of Greece held by private creditors, banks and investment funds. They must accept a loss of 53.5% in the final on the face value of their Greek claims, is an increased effort from the original target was 50%. This should reduce the country's debt amounting to 107 billion euros, a record in world economic history. This exceeds by far the effect of debt restructuring of Argentina, which reached $ 82 billion (73 billion euros during the day) when she failed in January 2002. With this support plan, Greece should be able to cope with a maturity of 14.5 billion euros which falls on March 20 and thus avoid default. Provided however, that banks respond in sufficient numbers to call.  

Athens said he was "very satisfied" with the result. The Greek government had fulfilled its part of the paper the contract by complying with the requirements of its creditors. It adopted a new austerity plan at the cost of violent street protests and renewed political turbulence and will have to quickly firm up the first steps, in token of good will, to see the money reach him. A savings plan painful 3.3 billion euros this year was passed, providing for a reduction in the minimum wage and a limitation of pensions in particular.

Financial markets remain cautious

But if negotiations dragged on, is that the major funders of Greece have hit on a hole of several billion euros to bridge towards reducing Greece's debt to 120% of GDP by 2020. It is the goal set by the International Monetary Fund to consider that it is sustainable in the long term. In the end, the bailout will reduce the Greek debt to the tune of 120.5% by 2020. To achieve this, banks will not only make a greater effort. The government also will have to put a little more hands in their pockets, by reducing interest rates of loans already contracted to Greece and, for central banks in the euro area, by participating in the effort. Greece will in return be further strengthened supervision on the part of creditors, the European Commission in particular, to ensure it does not deviate from the targets.

The negotiations were also made difficult by the fact that many countries are skeptical, despite repeated promises, the ability of Greece to make the necessary reforms, especially as the forthcoming parliamentary elections are likely to reshuffle the cards. The country itself is undermined by the economic recession, with five consecutive years of decline in gross domestic product, and the population is increasingly difficult to accept successive budget cuts demanded by creditors.

Financial markets have reacted cautiously. The euro rose against the dollar and the Japanese yen on Tuesday. But European shares open in equilibrium. Many economists doubt that the new rescue plan is the final chapter of the Greek crisis, and therefore the debt crisis that has shaken the euro area for over two years. They regret that it is turned toward fiscal restraint and not to revive growth in a country that could, in the eyes of many, to "die healed." "The Greek plan remains fragile and vulnerable. Even with this agreement, Greece still has most of its problems ahead, not behind it," warns Sony Kapoor, Director of Studies Centre Re-Define. The head of the Bruegel Institute is even more pessimistic, believing that the plan does not doubt "that extend the deadline fatal". "Greece will not implement austerity promised and will end up ultimately having to decide to leave the euro or to be pushed to the exit," he considers.

The Greek government on Saturday approved the final version of the austerity measures demanded by the EU and the IMF to release an aid package of 130 billion euros .

The government approval was a formality after the adoption, last week, a series of measures aimed at saving 325 million euros including through reductions of wages, salaries and pensions.

"These austerity measures were approved unanimously," said one minister, who requested anonymity. 

The government during the same meeting set for March 8 opening date of the exchange of Greek sovereign bonds held by private creditors, with the hope to complete the operation before March 11, said an official source.

This exchange will result in a discount of 70% of the real value of debt held by private investors.

The Greek government hopes that these initiatives will enable the adoption of the bailout by member countries of the eurozone at their summit in Brussels on Monday.

"The Greeks did everything they could and we are committed to keeping our commitments," said Minister of Public Order, Christos Papoutsis. 

Prime Minister Lucas Papademos said in a statement regretted having to solve a new lower pensions but assured that the impact of this measure would remain limited as it only concerns a pension exceeding 1,300 euros.

"We all agree that the support of economic activity is our priority," he added, without specifying what measures he intends to eventually take to restore growth.

A poll for the Sunday newspaper Realnews, 72.7% of Greeks want a continuation of Greece in the euro area, but only half of them think it will get there.

The Greek government on Friday approved a bill involving the country in the reforms demanded by the EU and the International Monetary Fund for the implementation of a second bailout of 130 billion euros, officials said government.

"This has been approved," said a minister attending the cabinet meeting.

The bill should be voted by parliament Sunday, which would make Greece a financial solution so that Athens must pay 14.5 billion euros in bonds maturing next month. The Mediterranean country will not honor these debts without further aid.

The European Union urges the Greek government to provide details of further cuts in public spending of $ 325 million.

It also requires a clear commitment of party leaders of the coalition government to implement reforms.

"We can not let Greece go bankrupt. Our priority is to take steps to adopt the new economic program and the new loan agreement. It goes without saying that those who disagree and do not vote for the new program can not remain in government ", said Prime Minister Lucas Papademos to the Cabinet ……. Friday

.., the Greeks began a 48-hour general strike to protest the new austerity measures demanded by international creditors and that Athens can not be the economy, according to Finance Minister Evangelos Venizelos, at least to leave the euro area

. Clashes

between demonstrators and security forces erupted in Constitution Square (Syntagma), before Parliament but the manifestations, followed by relatively few, have generally held ; are peaceful. 

The first police union, which accused the International Monetary Fund (IMF) and the European Commission to undermine democracy and national sovereignty, expressed his desire to no longer act against his "brothers". A local newspaper also publishes a photo montage showing German Chancellor Angela Merkel in a Nazi uniform.

SACRIFICES

The four government members from the LAOS, far-right party that belongs to the governing coalition, submitted their resignations in protest against the demands of international creditors, reports news agency ANA. George Karatzaferis, leader of the movement, had previously ruled to endorse the new austerity plan.

"I told the other political leaders that I could not vote for this loan agreement," he said at a news conference. "The Greeks can not be taken hostage and enslaved. We took our dignity. We were humiliated. I can not accept "

. The LAOS has 15 MPs out of 300 of the Greek Parliament, which means that his opposition to rescue plan would not prevent its adoption

. Secretary of State for Foreign Affairs, Marilisa Xenogiannakopoulou, member of Socialist Party (PASOK), has also resigned, but the movement has invited elected to support the plan

…… For … Venizelos, Greece can only accept the conditions of the new aid package of 130 billion to avoid bankruptcy accounts public for looming next month.

"The time has come for us to decide. Unfortunately, we must choose between sacrifice and even greater sacrifices, "he said in Brussels

. The device provides including a 22% decrease in the minimum wage, the elimination of 150,000 jobs in the public and reduced pensions for many

. Greeks, impoverished by five years of recession, in a country where unemployment is a worker in five, when the shops close one after the other, these new measures are unacceptable. 

Lucas Papademos had torn the agreement Thursday leaders of PASOK (left), New Democracy (right) and LAOS new measures demanded by donors, but their fire Green did not convince partners Athens and release the funds to conclude the Agreement on the Private sector involvement (PSI) in public debt.

Jean-Claude Juncker, Eurogroup president, warned that no aid would be disbursed without collateral submitted by the Greek political class. "In short, no release without implementation" of measures, he summarized.

Industrial production in France fell 1.4% in December over a month. Over the full year, manufacturing grew 3.8% on average.

Industrial production in France fell 1.4% in December over the month, reversing its rebound in November (1.1%), said Friday the National Institute of Statistics and Economic Studies (INSEE). In the manufacturing industry alone, which excludes mining and construction, production also fell 1.4% after rising in November (1.4%), INSEE said. Over the full year, manufacturing grew 3.8% on average.

In the fourth quarter of the year, output fell in manufacturing (-0.5%), as well as throughout the industry (-0.8%), INSEE said. She fell in electrical, electronic, computer and machinery (-1.1%) and in "other industrial products" (-0.9%).

Output also fell in the agricultural and food industries (-0.9%). In contrast, manufacturing output has been increasing in the transport equipment (+1.6%) and refining (+4.6%). On December alone, production fell in the agricultural and food industries (-1.2%), in electrical, electronic, computer and machinery (-3.2%) among others. She has been a slight increase in refining (+0.6%).

Lagardère Tuesday reported a turnover slightly below expectations for 2011, hit by the decline in revenues in publishing, and announced ; significant writedowns of around 900 million euros.

The media group has gone through a year 2011 marked heckled by two warnings on its results, a controversy over its leader Arnaud Lagardère and a fall of over 30% of his title scholarship. 

"In 2011, taking into account both an economic and market environment deteriorated, and other performances (recorded in the second half) and prospects for the industry Unlimited, should lead impairment in value of a significant amount, "the group said in a statement, referring to its division dedicated to sport and entertainment.

Lagardère adds that he also revised down the value in its accounts of its 20% stake in Canal + France.

The full year, revenue came out to 7.657 billion euros, against 7.966 billion during the previous year, an increase of 0.2% on a comparable basis. 

The Thomson Reuters consensus I / B / E / S brought out a turnover of 7.684 billion euros on the basis of estimates of 18 analysts.

The group, which will publish its full year results on March 8, confirmed its forecast of a decline of 5 to 12% of its recurring EBIT before associates (EBIT) for 2011 Media .

The stock closed Monday at 1.51% to 23.1450 euros. Since the beginning of the year, it was up 13.5%, compared with increases of 4.62% of the media sector index.

The Chairman of the Consob Giuseppe Vegas reaffirmed Wednesday that as of Thursday, the ban on naked short sales would be extended to all classes of shares.

At the beginning of November, Constable Italian Stock Exchange announced a ban on naked short sales of all equity markets regulated to reduce market volatility, a decision to take effect from 1 December at midnight.

In an interview published Wednesday by the newspaper La Repubblica, Giuseppe Vegas has also discussed the requirements of the European Banking Authority (EBA) relating to the recovery bond and that he would ask the Bank of Italy to raise the issue at European level

The new EU regulation that requires banks to value sovereign debt in their accounts at market value may cause a new credit crunch that could cripple the economy of Italy, said the president of the Italian stock market authority .

"In Italy, there are fears on banks. The money does not circulate. The main risk is the development of a credit crisis."

"In this scenario, the risk that a bank collapse is secondary.

France is already in recession and is expected to slow growth of 0.3% in 2012 according to the OECD considers it essential to save 0.4% of additional GDP. 8 billion euros.

The OECD has drastically revised down its growth forecast Monday for France, which would be barely positive in 2012 after a "short" recession, a situation that "requires" a new anti-deficit to take the international commitment of Paris. Far from the 1% growth still officially expected by the French government next year, the Organization for Economic Cooperation and Development is no longer considering a meager increase of 0.3% of GDP in its latest economic forecast delivery biannual. Six months ago, it expected 2.1% but still on the deepening crisis in the euro area has been through it.

The recession that know France in the fourth quarter 2011 and first quarter 2012 would be "small scale", according to the organization. But faced with these projections, the poorest to date of an international institution, it urges Paris to a new fiscal tightening. "Given the slowdown in economic growth and the increasing burden of debt," the goal of returning the public deficit to 4.5% of GDP in 2012 "will require new measures of fiscal consolidation," says she said.

"We would suggest a further fiscal consolidation to achieve the desired objective," confirmed its chief economist Pier Carlo Padoan, during a press conference.

France is preparing to revise its growth forecast for 2012, currently set at 1.75% of GDP, writes Le Figaro Friday, citing a source within the government.

The announcement would follow the warning earlier this week by the rating agency Moody's on the signing of the French debt and that made Thursday by Germany, to review its own growth forecast for the year year.

Economists on average expect a French growth around 0.9% of GDP in 2012.

"We know that we are above the consensus of economists and we are prepared to adapt and make the necessary budgetary measures, as did the Germans," says the government source quoted by Le Figaro.

The decision to review the press the growth forecast for 2012 is little doubt but France has yet to define the timing and scope of this review, writes Le Figaro.

Moody's announced that it would evaluate within three months the stability of the Aaa rating enjoyed by the French sovereign debt and allows France to borrow at lower cost in the financial markets.

This period of three months should assess the impact on French public finances of an agreement – or lack of understanding – of the countries in the euro area over the settlement of the debt crisis in general and the Greek problem in particular.

The topic will be the focus of European Council discussions on Sunday, which means to increase the power of the European financial stability and improve European governance should be the order of the day, and a plan recapitalization of European banks.

Francois Fillon said this week that the austerity measures it announced in August, based on a growth forecast of 1.75% next year, would still be effective for growth of around 1.5 %.

The prime minister did not rule out the need to introduce more rigor in the event that growth in France would be even lower.

The government has committed a reduction of tax loopholes to allow France to achieve its objectives to reduce its public deficit to 4.5% of GDP in 2012, 3% in 2013 and 2% in 2014.

was the first World Day of "outraged", attended Saturday tens of thousands of people, was marred by violence in Rome and dozens of arrests in New York. Violence in Rome during the World Day of indignant protest, Saturday, October 15, 2011

From Europe to the United States through Chile, the first World Day of "outraged" gathered Saturday tens of thousands of people and was marked by violence in Rome and dozens of arrests in New York.Under the slogan "People of the world, stand up" or "Go down the street, creating a new world", the "outrage" had called for demonstrations in 951 cities in 82 countries, according to the site 15october.net, against precariousness related to the crisis and the power of finance.

Saturday night at Times Square in New York, U.S. law enforcement has made 71 arrests as a result of an anti-Wall Street that brought together several thousand people, according to a report from the police. The demonstrators were immediately embedded in several police vans, said a journalist from AFP. Earlier, police on horseback had rejected the protesters who tried to enter the site. One person was injured by falling to the ground when the panicked crowd began to run.

"Every day, every night, take care Wall Street," "We the people", "We want to work," chanted the demonstrators.In Washington, several thousand more "outraged" have joined together to protest against the "greed" of finance, for "jobs and justice". Some 300 demonstrators gathered in front of the White House and the Treasury Department against "financial mafia", before joining another rally, with several thousand people gathered at the call of twenty organizations. More than 10,000 Canadians have also expressed, signs or guitars in hand, including 5000 in Toronto, in the financial district.Their demands ranged from a better distribution of wealth to "the truth behind 9 / 11", or "animal rights".

Violence in Rome

In Europe, the spectacular violence broke out in Rome, making 70 wounded, including three serious sidelines of the parade which brought together tens of thousands of people, under signs proclaiming "One solution, the Revolution!" or "We are not property in the hands of bankers." Rogue elements stormed a luxury hotel, smashed the windows of banks and set fire to an annex of the Department of Defense. Several cars were torched.

By late afternoon, the historic square of the Basilica of St. John Lateran was turned into a battlefield.Police have charged hundreds of young people throwing smoke bombs, bottles and Molotov cocktails against the police, while peaceful protesters were leaving the place the arms in the air not to be confused with the rioters. In Athens, epicenter of the European financial crisis, several thousand demonstrators gathered in the evening before the Parliament in a friendly atmosphere.

Portugal, another country hard hit by the crisis, 50,000 people of all ages marched in Lisbon, shouting "IMF out" rows behind a banner proclaiming "Stop Troika", in reference to the creditors of Portugal (EU Bank European Central Bank, International Monetary Fund). In Madrid, the birthplace of the movement was born May 15, tens of thousands of people have converged to the Puerta del Sol, iconic place that the "outrage" had occupied for a month in the spring."The problem is the crisis, rebellion-you," proclaimed a huge banner at the top of the march. In the evening, a sea of ​​people invaded the place, where the demonstrators were frozen in a "silent cry", a symbol of oppression.

Clashes with police in London

In London, where minor clashes with police took place at midday. 800 "outraged" gathered in the City and received unexpected reinforcement of the founder of Wikileaks, Julian Assange, on parole near London pending a possible extradition to Sweden where he was charged with rape."We support what is happening here because the banking system in London is the recipient of money from corruption," he said on the steps of the Cathedral of St. Paul, where the demonstrators were massed.

The "outraged" also benefited from the understanding of the Governor of the Bank of Italy, Mario Draghi, who must take the lead next month the European Central Bank. "Young people are right to be outraged," said Mr. Draghi told reporters on the sidelines of the G20 meeting in Paris. "They are angry against the world of finance. I understand," said the economist of 64 years, while deploring the incidents in Rome.In the Netherlands, a thousand demonstrators gathered in The Hague, as the Place de la Bourse in Amsterdam, and a thousand as the Paradeplatz in Zurich, emblematic place of finance in Switzerland, while Paris was attended by several hundred as "outraged."

In the Balkans, the gatherings were attended by about 3,000 people in Zagreb and hundreds in other cities, including Sarajevo and Belgrade. Rallies were also held in Latin America. More than 5,000 "outraged" Chilean and parade in Santiago. The protesters had targeted the high places of global finance, as the ECB in Frankfurt, from 5000 to 6000 before which people gathered. "From America to Asia, Africa, Europe, the nations rise to claim their rights and demand a true democracy," said the manifesto of October 15.

Ireland stands by its budget deficit target set for 2012 under the international aid package paid by the European Union and the International Monetary Fund without requiring radical new tax measures.

Before Parliament, the Minister of Finance confirmed that a deficit target of 8.6% of gross domestic product (GDP) in 2012 was still valid.

The IMF confirmed the day that Dublin should not take further drastic measures even if the growth prospects for 2012 are less favorable than expected.

Michael Noonan said the growth forecast for 2012 of his ministry – currently 2.5% – would have to be revised downwards.

The finance minister also said that Europe Greece to prevent default, adding that an agreement would be found in the coming weeks.

"I do not expect that Greece will default," he said.

Michael Noonan said that Europe should set up barricades to prevent the contagion of the crisis in Greece to other countries, while stressing that the weakest banks in the region had probably need more than 100 billion recapitalization .