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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.

Not easy being a socialist candidate in times of budget deficit. On the one hand, we must gather all left, and the other not to antagonize the financial markets, with power to increase the cost of debt. Francois Hollande in his first big campaign rally, Sunday, Jan. 22 at Le Bourget.

Finance the war against Francois Hollande is it already over? Having dug up the hatchet in January at Le Bourget, the PS presidential candidate seems ready to smoke the peace pipe in the British press when he denied any "aggression" against the financial markets.

It's early in the week that François Hollande has raised the white flag. Before going to London, he in effect gave an interview to several British correspondents including the Telegraph, the Financial Times and the Guardian. To reassure all these people came to interview in Paris – and at the same time readers of the City-François Hollande has tried convincing: no it is not regarded in France as a very left financial regulation. And no, the France of 1981 has nothing to do with that of 2012, where "there are more communists," he said. Since the Guardian has restored the full quote by adding the flat "or very little." But the little phrase made noise in France where she has raised the ire of the Communist Party and part of the left. And drew attention to the soothing message of one who presented himself as the exterminating angel of finance.

To please these ears International, Francois Hollande has indeed put barrels of water in his wine. He did not hesitate to recall that during the fifteen where they were in power, the Socialists had liberalized the economy, open markets to finance and privatization. According to him, he and Obama would also have very close positions on the topic: "One could say that Obama and I have the same advisors."

Finance, enemy number one on the inside …

A speech that contrasts clearly with the speech of January 22 Bourget, in which he had made finance enemy number one, it had to be slaughtered at all costs. This financing "nameless, faceless, non-party" but "nevertheless governs us" and took control of our lives …

At the time all the political commentators asserted: Francois Hollande had managed a grand coming out on the left! The verbal attack angered the bankers, tired of being stigmatized. And they came with a program: creation of a tax on financial transactions, separation of deposit banks and investment banks, creating a special tax for financial institutions, or limiting bonuses. Ultimately, however, nothing really revolutionary. But the strong speech perfectly met the expectations of the electorate to the left.

… partner and to be struck out

So why this double standard? Francois Hollande is a campaign from the first round of presidential elections in which he must collect the left where it calls for more measures to support growth. This does not prevent him from being convinced that deficit reduction is essential. His lecture on the encryption program, far from lyrical flights of Bourget failing to have been accurate on spending cuts, was already a sign. But he also knows that the markets are still the law in fiscal policy. To put them back is to take the risk of skyrocketing interest rates on the French debt.

But some recent indicators have come to confirm it was time to make peace with investors. A report by economist Erik Nielsen of UniCredit noted in particular the fear of the markets to see the PS candidate cross the steps of the Elysee. Concerned, the prospect of renegotiating the EU Stability Pact to avoid the constitutional goal of balancing public finances. Hence the signals sent through appeasement of the international press. However not sure whether they were intended to be discussed in the hexagon. Which is not without problems.

Olivier Dartigolles for example, spokesman for the PCF, the "kneeling" before the City of Holland "are hard to the left". A view shared by Marie-George Buffet and Jean-Luc Melenchon, who both joked statements of the candidate face to British journalists. "You can not simultaneously be the candidate of the City and the candidate cities", summed up Wednesday Hervé Gattegno, editor of the Point.

Furthermore, this game is subtle to say the least on how to reduce deficits, could also turn against him. It is said the markets they are non-partisan. Maybe, but they are adamant on one point: the deficit reduction plans should be adjusted to the nearest euro!

Kazakh airline, Air Astana, has ordered a total of 15 aircraft from Boeing, Airbus (EADS subsidiary) and Embraer for more than a billion dollars in total, said Wednesday its leader Peter Foster . The airline, 51% subsidiary of sovereign fund Samruk-Kazyna and 49% of Britain's BAE Systems, has ordered six Airbus A320s, four Boeing 767, three Boeing-787 and two Embraer regional jets 190. The price and delivery dates were not specified. Air Astana, which made its first flight in 2002, currently holds 26 aircraft.

The rating agency lowered the rating of the country by one notch to "AA +" to "AA". It could further deteriorate in the future. Outgoing Prime Minister of Belgium Yves Leterme, the ordinary business since April 2010

Belgium was sanctioned Friday by the rating agency Standard and Poor's, because of its debt and therefore the political crisis through which it passes for over 500 days and paralyzing currently discussing the formation of the next budget. The rating agency lowered the rating of the Kingdom by one notch to "AA +" to "AA". It could further deteriorate in the future.

Reacting immediately, the Prime Minister Yves Leterme current affairs said that the decision was "naturally bad news," before launching an appeal to political parties to reach agreement within 48 hours on the budget.The country's leaders also face pressure from the European Commission threatening Belgium with a fine of 700 million euros if a tight budget is not completed by mid-December.

Continuing difficulties in the financial sector

It is this urgency and the lack of credibility of the country has pointed Standard & Poor's lowering the rating of the kingdom. Involved: "difficulties in the financial sector" which may require greater support by the government which would increase the already high debt of the country and especially the context of "political uncertainty" that continues to affect the credibility of Belgium as a borrower.

The parties of the coalition of Angela Merkel announced Sunday night tax breaks 6 billion euros in 2013 and 2014. The opposition considers these tax cuts are incompatible with the objective of reducing debt. German Chancellor Angela Merkel and Minister of Economy Rainer Bruederle at the energy conference in Berlin on March 22

German opposition parties have rejected Monday plans tax relief presented Sunday by the ruling coalition, they are able to derail the upper house of parliament, the Bundesrat, where they predominate. "I can not imagine a majority for the proposals that form the Bundesrat," said Jürgen Trittin, one of the leaders of the Green Party, "it would be very surprised."

The Prime Minister had offered his resignation from the government if his ministers to help get the vote of confidence tonight. It would then form a unity government with the right. Greek Prime Minister George Papandreou at the EU summit of June 23, 2011.

The Prime Minister was prepared to resign, reports Reuters. The agency, quoting government sources said that Papandreou would have reached an agreement with his ministers in which he agrees to resign if his ministers are supporting the vote of confidence to be held on the night of Friday Saturday. Which would be for the Prime Minister an honorable exit after the controversy in his own party on the usefulness of the referendum that Papandreou wanted to implement.

Prime Minister Georges Panpandréou announced a referendum on the bailout of the euro, which provides for the deletion of one half of the Greek debt. A gamble. The announcement plunged the European stock exchanges. Greek Prime Minister George Papandreou

Greek Prime Minister George Papandreou made a surprise and took a political risk on Monday night by announcing the holding of a referendum on the European Agreement deletion of part of the country's debt, criticized Greece for the surrender of sovereignty that it entails.

The population is growing annually by 80 million. Asia accounts for 4.2 billion people. The largest increase was in Africa. China in 2011 the most populous country in the world with 1.33 billion people

The world's population, now 7 billion, should exceed 10 billion by 2100 and even 15 billion if fertility rates proved somewhat higher, according to a UN report published Wednesday in London. This "State of World Population 2011" was published shortly before the ceremony to mark the passage on October 31 the threshold of the 7 billion people living on the planet. The United Nations Fund for Population Activities (UNFPA) insists on the serious challenges posed by demographic pressures to fight poverty and preserve the environment.

According to recent estimates, up from previous figures, there should be on earth 9.3 billion people by 2050 and more than 10 billion by the end of the century, says UNFPA. But "with only a slight variation in fertility, especially in the most populous countries, the figures could be higher: 10.6 billion people on earth by 2050 and more than 15 billion by 2100." The paper notes the growing population engaged in the Baby Boom after the second world war, the impact fades in the sixties.

2.5 children per woman

For prosperity, better education and access to contraception drastically reduce overall fertility, to the point that today some rich countries are facing an alarming decline in population.Thus, for the past six decades, the global average fertility declined from 6 children per woman to 2.5 today. The range is from 1.7 children on average in developed countries to 4.2 in the least developed. But the world has 80 million more each year, and the age of 25 to 43% of the population.

"Our record of population can be seen in many ways a success for humanity-people live longer, healthier lives," said Babatunde Osotimehin, Executive Director of UNFPA. "How many people can stand our ground? These are important questions, but perhaps not those that are suitable.When you look at just the numbers, we risk losing sight of opportunities to make life better for all in the future. "

The report highlights several challenges:

– Helping many young people in poor countries to create prosperity by finding them jobs, to get out of poverty.

-Environmental issues: already pressing, they are likely to intensify with the growing demand for food, energy and housing. Today, the report should be 18 months from the Earth to regenerate the natural resources used in one year. First concern is the lack of water. "The world will face a deficit of 40% between requests and available resources by 2030," the report said.

– The future of cities today, the balance between rural and urban populations' looks irreversibly "for cities, says the report, which emphasizes the need for better urban planning.

– Immigration: in rich countries to the aging population, immigrants may take jobs effectively, provided they are better integrated and protected.

Italy and Spain were Saturday under intense pressure from their peers in the euro area to reassure their determination to keep public finances under control and show the market they will not be used to support fund the euro.

Finance ministers from the euro area and EU met in Brussels last Friday afternoon to prepare the ground for their leaders before the summit on Sunday and Wednesday that will lead to a formula to multiply the European Financial Stability Fund (EFSF ) and give it sufficient capacity to help countries like Italy or Spain.

But senior sources involved in the discussions reported that several countries, including Germany, wanted to ensure that this would not fall back pressure on the Italian government to implement ambitious reforms.

"There will be more riding.No country will receive free aid, and certainly not Italy, "said one source.

"When the ECB started to buy the Italian debt in August, Rome was immediately released in its efforts, of which there is no wonder that there is a total lack of confidence of the Germans to (Silvio) Berlusconi right now, "she added.

The Italian Prime Minister Silvio Berlusconi and Spanish Prime Minister José Luis Zapatero has also been invited to travel to Brussels on Saturday evening to meet other European leaders including Angela Merkel and Nicolas Sarkozy, and President the European Central Bank Jean-Claude Trichet and the Executive Director of the IMF Christine Lagarde, said two diplomats.

ITALY

German Chancellor insisted on Saturday that Italy would reduce its debt so as not to jeopardize the support mechanisms for the euro and called Spain also redouble our efforts.

"If they do nothing to their budgets, they still have a debt equal to 120% (of GDP), such as Italy, while the height of the bunds will not matter because it will not help in any market to regain confidence, "she told members of his party.

"Spain has already done much but it will do more to restore market confidence," she added.

The European Commission said on Friday that Italy should take significant steps to boost growth, specify some of the savings measures announced in September and publish a calendar.

"There is no pressure but a strong incentive to do so," said at the time a spokesman for the Commission.

According to European sources, the Italian Prime Minister Silvio Berlusconi, would not exclude to present an action plan

Italy remains under strong market pressure.Italian government bonds reached Friday to their highest level since August before falling when traders reported purchases of debt from the ECB on the secondary market.

SPAIN

Spain, the fourth largest economy in the euro area, is also under the spotlight because of concerns about its ability to meet its objectives of deficits and implement reforms to improve competitiveness and productivity.

The country will this year one of the largest deficits in the euro area, but he pledged to reduce it to 6% of GDP, against 9.3% in 2010.

The government of Jose Luis Rodriguez Zapatero has already reduced the salaries of civil servants, frozen social spending, reform its banking sector and introduced a "golden rule" in its fiscal constitution.

While these measures have been applauded by the other members of the euro area, they also expect that the socialist government, which trails by 17 points in the polls for the elections of November 20, reassures its ability to control spending in the autonomous regions.

"In Spain, the uncertainty is not so much about the government but rather the level of local politics, which could slow the process," said a European source.

In Brussels, the Spanish Minister of Economy, Elena Salgado, said Madrid had no intention to introduce new measures.

"Not for a moment (…) We have adopted a number of measures: for reform of the constitution of laws to prevent a financial sector restructuring n'impacte the deficit," she said Friday, adding that plans for financial stability had also been issued for the regions.

The lowering of the rating two notches by Moody's Spanish increases the pressure on European leaders urged to engage at the summit of 23 October breakthroughs to resolve the sovereign debt crisis.

The rating agency announced Monday that it gave three months to assess the French Aaa rating and stable outlook, on a background of slower growth, crisis in the euro area and calls for a recapitalization of banks.

In this context, the markets have high expectations of the European Council to be held this Sunday, and during which France and Germany have promised to present a solution "comprehensive and lasting peace" to the crisis of the euro.

Nicolas Sarkozy on Wednesday was to have a telephone conversation with Angela Merkel to prepare for the meeting.

But German Chancellor again invited to the Wednesday markets patience.

"These sovereign debt has accumulated for decades, so we can not resolve in a single peak. It will be hard work over the long term," she said at a conference the press.

A theme echoed by the European Commission President Jose Manuel Barroso. "We are at a decisive moment, which requires clear answers and determined responses together," he said."Do not expect us to be at the end of our troubles."

"Finito BASTA"

According to German newspaper Handelsblatt, citing government sources, Germany is considering using the European Financial Stability Fund (EFSF) to help states pay the interest on their debt.

This could take the form of a suspension of payment of interest through the issuance of zero coupon by the EFSF, the newspaper said.

Some countries such as China, India and Brazil could also contribute to strengthening the capacity of the fund, said last Handelsblatt.

Berlin, however, tried to put an end to speculation about a possible increase in funding for the EFSF.

"There is no discussion of an increase in excess of 440 billion euros, that's it, finito, basta," said the spokesman for the German finance minister, Wolfgang Schäuble.

Two senior officials of the European Union had earlier denied reports the British daily The Guardian that France and Germany have agreed to carry the EFSF to 2,000 billion euros as part of plan to resolve the crisis debt in the euro area.

One of the two leaders said it was not easy to increase the capacity of the EFSF, currently at 440 billion euros.

Leveraging the EFSF? "NOT SO SIMPLE"

"It is naive to think we can do this kind of calculation and come up with a nice round figure of 2,000 billion.It's not that simple, "he said.

European leaders, however, could agree on Sunday means the multiplication of the response capacity of the EFSF, allowing it to secure some of the new issue of debt in the euro area, said on Tuesday European officials.

Ensuring, for example, the first 20% to 30% of potential losses, the EFSF could triple or five overall capacity for intervention.

With about 300 billion yet available, the EFSF could thus increase its fire power to more than 1,000 billion or 2,000 billion, which would be sufficient to cover the financing needs of Spain and the Italy in 2012.

European leaders will try to convince otherwise Sunday the banks to accept "voluntary" at a discount may reach 50% of their debt securities Greek and they will try to develop a plan for recapitalization of financial institutions the weakest.

Greece is still mired in recession and the debt is expected to reach 357 billion euros this year, equivalent to 162% of its gross domestic product. Most analysts agree that this debt can not be honored by Athens.