Business And Personal Finance

Poul Thomsen, the head of IMF mission in Greece, will have to recognize that slow the pace of fiscal consolidation since the recession is more severe than expected. The head of IMF mission to monitor the recovery of Greek finances, Poul Thomsen (here in Athens November 19, 2011) The head of IMF mission to monitor the recovery of Greek finances, Poul Thomsen, acknowledged errors in the control of the country for two years and called for fewer budget cuts and further liberalization, in an interview published Wednesday. "The budgetary adjustment was based on an exaggerated tax increases, we should have put more emphasis on cost containment is the one area where we could have been more convincing to the government "said the IMF representative, when asked about possible errors of the IMF by the Greek daily Khatimerini." Although much remains to be done, Greece has made good progress, "he said, claiming to understand the discomfort of the Greek opinion against criticism blaming the downturn on the country or accusing him of being unable to recover. "We should be more careful to ensure that we send a balanced message when we say that the program is off the rails," he said. But "reform and the effort required (…) have lost their momentum, we must find her," he ajouté.Poul Thomsen was recognized "worried" at the worsening of the recession-induced these measures. "We need to slow down the pace of fiscal consolidation and advance much faster in the implementation of reforms." He reiterated that among them, he supported measures to wage cuts in the private sector, as expected IMF boost the economy via a gain in competitiveness, but rejected by the Greeks as being at risk of stopping further consumption and activity. Poul Thomsen in particular called for a reduction in the minimum wage, red rag to the unions, stating that 'to 751 euros gross per month was 35% higher than that of Portugal, and from 20% to that of Spain. Despite reservations Greek on these requirements, he found that the negotiations that led to the side its counterparts Commission and European Central Bank with the government to complete the new plan for the country's recovery will be concluded "very shortly, within a few days."Target these days of sharp attacks in the Greek press as too inflexible and challenged him as in the IMF because of the failures encountered by the first bailout of Greece, Mr. Thomsen also emphasized working in full agreement with colleagues at the IMF.

According to the association of consumers, distribution margins reflected in the service stations would have increased by almost one third in ten years. CLCV denounced a "surge" margins at service stations.

The consumer organization CLCV Tuesday denounced a "surge" of nearly a third in less than ten years of distribution margins impacted by service stations in the fuel prices at the pump, now close to their record in France .

According to a barometer of the association, which is based on the statistics of the French Union of Petroleum Industries (UFIP) and administration, and distribution margins are increased from 2001-2003 to 2008-2010 from July to September , 6 cents for gasoline and 6.3 to 8.6 cents for diesel.

The new Italian Prime Minister presented his austerity plan to rescue the country from the grip of the market. Mario Monti – who is also Minister of Economy – promised to keep the accounts of Italy, while stimulating growth for the time being very sluggish. Mario Monti.

The new Prime Minister Mario Monti on Thursday presented a very ambitious program of austerity and recovery to restore "credibility" of Italy and help save the euro in a European Union through its worst crisis of the post the war. "Discipline, Growth and Equity" are the great watchwords of Mr Monti, which was the first speech programs before the Upper House of Parliament before it obtains in the late evening with confidence 281 votes support of 307. The vote of confidence of the members are expected Friday and should get on this occasion also an overwhelming majority.

The revolt of the Greek people is all governments in Europe under pressure "and" this is only the beginning of a process, "he hoped.

François Bernacchi, vice president of Attac Country of Avignon, estimated that Mr. Papandreou shows "the example it is possible to have a democratic consultation." This event marked the beginning of a "people's summit" because of panel discussions and organized until Thursday in Nice, in response to the G20 Summit this weekend in Cannes, whose center is completed by strict safety device, 30 miles away.

Five arrests

In the morning, three Spaniards claiming a movement "anarcho-punk" and in possession of axes, and two Belgians equipped with steel balls, were arrested in Nice. The first three appear in court Wednesday, the two Belgians were released.

The stock exchanges of Paris, Frankfurt and London have opened up Friday, after falling the previous day as investors hope for feeding a step towards resolving the debt crisis. In Paris the CAC 40 index advanced 0.8% shortly after the opening.

The European banking sector shows some of the strongest performances, gaining 2.4%.

"Investors remain optimistic about a favorable outcome to the debt crisis in Europe.Markets are driven by the hope that the leaders agree on 23 October a viable solution to turn the EFSF, recapitalize the banks and save Greece (…) European leaders could announce release a sum of 940 billion euros to fight against the crisis "Saxo Bank in a note.

At the request of Paris and Berlin, an additional peak in the euro area will probably be held next Wednesday to not only agree on how to maximize the firepower of the European Financial Stability Fund (EFSF), one of the expected by the market to combat the crisis, but also review the new plan to rescue Greece.

The Tokyo Stock Exchange ended down slightly from 0.04%.Title Olympus closed on a new fall of 6.81%, yielding about 50% of its value since October 13.

The euro turned down against the dollar and the price of U.S. light crude continues to rise.

Countries of the European Union agreed Thursday to recapitalize their banks to the tune of 100 billion euros but profound differences between Paris and Berlin on how to reform the fund to support the euro area led them to re- postpone the most important decisions.

This Friday is held an extraordinary meeting of European finance ministers for the summit on 23 October.

Tensions in the interbank market have an impact on the real economy. Nearly a third of French banks have tightened their criteria for business loans. And the movement should be extended.

Credit conditions for firms have tightened slightly in France in the third quarter, according to a survey by the Bank of France to the banks, which provide a greater tightening in the fourth quarter.

The balance between the institutions reporting a tightening and those seeing a relaxation reached 28.5 in the third quarter, according to data released Friday. This is the first tightening since the second quarter of 2009.

The hardening observed is almost the same for large businesses (28.8) and SMEs (28.5).The period from July to September, "the criteria for granting loans to enterprises were tightened more than expected in the previous survey," notes the Bank of France. "This hardening, attributed to both balance sheet constraints and bank financing to the rise of their risks, is reported by less than a third of them and spoke mainly in quarter-end," said the institution.

Banks and particularly given the tightening tensions they encountered to finance markets and the prospect of entry into force of the new regulatory framework Basel III said, in favor of a strict control of the size of balance sheets and thus the volume of loans. This tightening of credit conditions has been accompanied by a decline in business demand, more sensitive SMEs (balance -33.2) than large firms (-15.1).

More worrying for the economy, the banks see these two tendencies assert themselves in the fourth quarter.

The last three months of the year, the institutions surveyed foresee a further tightening (net 41.6), the strongest since the third quarter 2008, which corresponded to the financial crisis. The banks provide the same time, a further slowdown in demand for corporate credit (negative balance of 34.6).

The European Central Bank has not changed interest rates on Thursday, the rise in inflation last month having won on expectations of lower rates in response to the deepening crisis in the euro area.

The refinancing rate remains at 1.5%, the deposit facility rate to 0.75% and the marginal lending rate to 2.25%.These rates have not budged since 7 July, when all three were found a quarter of a point.

President Jean-Claude Trichet will give his final at 12:30 GMT news conference before handing over to the end of Mario Draghi.

The markets are wondering if a possible break leave for the ECB to lower rates anyway by the end of the year or if it will announce the resumption of bidding Long.

According to a report published Wednesday, parallel trade in cigarettes leads to a shortfall of 2.7 billion euros a year for public finances. About 50% of that traffic comes from cross-border shopping. About 30% of parallel trade in contraband cigarettes comes from the

Parallel trade in cigarettes poisons public finances. Less than a month after the plan to fight against this phenomenon announced by Valérie Pécresse, three MPs filed Wednesday in the Finance Committee of the National Assembly, a report detailed information on "the tax consequences of illicit sales of tobacco. " And the result makes you cough. Details.

A loss of 2.7 billion euros in state

The shortfall in the accounts of the state is estimated at 2.7 billion euros each year.The report states that 20% of sales of tobacco are outside the formal network, made up of 28,000 tobacconists state-controlled. The deputies focused their attention on two types of trade: sales outside formal network but legal (cross-border shopping, duty free …), and the illegal (smuggling, counterfeiting, Internet purchases, etc.).. The first 15% of total cigarette sales, the other 5%. Untaxed, these two forms of traffic respectively deprive France of nearly 2 billion euros in tax revenues for one and 800 million for the other.

The exception rolling tobacco

The report also draws attention to the more favorable taxation of rolling tobacco. This product is a substitute for cigarettes when their prices rise.The consumption of rolling tobacco is in fact the only increase (9% between 2004 and 2010) and continues to pull up the turnover of manufacturers (16.6 billion euros in 2010, + 27% since 2000).

And also the tax side, the economic consequences are "devastating" the report said. No fewer than 5,000 tobacconists have closed since 2002 in France. The border departments undergo the phenomenon of head-on, sales were down 52% in volume from 2002 to 2010. By way of explanation, the report points including "differences in prices and taxes" in Europe. In the Hexagon, cigarettes cost between 60 cents and 3.30 euros more than in all neighboring countries. And it's not over: 17 October, the prices of packages will grow by 6%. Even if it does not explain everything, the total tax applied to tobacco products is one of the main causes.In France, it is one of the most aggressive in Europe, representing over 80% of the original price.

Cross-border cigarette smuggling accounts for 50% of parallel trade

This environment encourages such cross-border purchases, depressing the French tobacconists. Such traffic is 50% of informal trade of cigarettes, according to professionals. "These purchases are legal. The French government authorizes, for now, consumers to return five packets of foreign countries. But they are expensive to the state. And we must not delude ourselves. Many do not meet the threshold legal, "says the rapporteur Thierry Lazaro, UMP deputy from the North.

To stop it, Members recommend to first "convergence of prices of tobacco with the neighboring states," including by simplifying tax, but also by setting the initial prices in consultation with the countries concerned.The report also urges governments to implement the price increases coming in a measured and steady in the Cancer Plan 2009-2013. The idea is to avoid sharp rises and irregular.

Finally, against the advice of the Government, Members reiterated the importance of maintaining the limit of purchases of cigarettes abroad in five packages. The European Commission recently sued France to the European Court of Justice to prevent the free movement of goods. It calls for the removal of the threshold of five packets. If France and sentenced, the threshold will be deleted, or it will be fined. "Tobacco is not a commodity like any other. It is harmful and addictive. We must insist and keep this limit. Regardless of the European Commission", insists the rapporteur Jean-Marie Binetruy, UMP Doubs.

Haro on smuggling and the danger of counterfeiting

Smuggling (30%) and Internet purchases (20%), a process banned in France, representing nearly all the rest of the parallel trade. Vendors buy illegal cigarettes at low cost abroad, then sell them in France, in the street or on the Internet for example. The report is also concerned about the increasing number of cigarettes made by manufacturers in countries neighboring the EU that do not meet its standards, but also end on the French market. "Smuggling is dangerous for the economy but also for health. There are many counterfeit, especially from Eastern Europe. These cigarettes often contain anything," warned Thierry Lazaro.

The report calls for the launch of an information campaign about the dangers of counterfeiting, backed by the government and tobacconists.Should then increase the traceability of packets to trace the supply chains and where cigarettes are manufactured. MEPs recommend, finally, hardening and improving the judicial arsenal, for the training of magistrates instructions and rulings, as well as the ability to give justice to disable a suspect website time to investigation.

Shaken by a drop in subscriptions, the magazine of the National Institute of consumption could increase in the private sector, the risk that its credibility challenged.

While its competitor, the UFC-Que Choisir a hit, the magazine "60 million consumers" has seen its sales plummet by 22% between 2008 and 2011, according to an audit of the accounting firm of MBV & Associates, commissioned by the National Consumer Institute (INC), owner of the title. The erosion is partly due to the termination of a policy of recruiting new subscribers in recent years. Now, to return to profitability, the magazine should flow to 200,000 copies, twice today.result, the UFC-Que Choisir has 420,000 subscribers to 30 million euros in revenue and 60 million consumers of only 100,000 subscribers to 10 million euros.

For MVB & Associates, a status quo would lead to accumulated losses of € 4 million over the next three years, involving the continuity of the title. Conclusion of the firm: the magazine must be backed by the private sector, the only way to inject € 18.5 million for its re-floated. For now, while the parliament is considering a draft law on consumer rights, no decision has been taken and two scenarios are being studied in INC.

Two scenarios under consideration

"Either we are content to mobilize internal resources at the institute who are not fertile and we made a small raise of the subscription.However this can not go very far, "said Francis Amand, president of the board." Either we have a more ambitious recovery and growth capacity, requiring more funding that could come only from a private operator, "he added. A decision could be taken at a board of directors of the INC on 9 November.

The scenario of backing caused an outcry among staff and among some readers, who fear for the independence of the magazine. "Regulators want to get rid of the newspaper." 60 million "can not keep its identity and mission of public service outside of the INC," said Lionel Maugain, staff representative on the board. A support committee was set up by readers and journalists to oppose any backing to the private sector.Thursday, nearly 7,000 people had signed.

"It is difficult to an investor put money in a way that could not provide a lot of sales because the potential reader would think that this title is biased," assured Francis Amand. A charter could also be signed to ensure editorial independence, he said.

"60 million" was founded in 1970 by the INC, who realized that TV shows were not enough to inform the consumer. nitially released under the name "50 million consumers," the magazine is primarily known for its main comparative tests on the appliances. Then he is getting stronger with campaigns that make loud noise on the soaring prices and declining purchasing power, or on the Harms dyes, abuse of trustees and breathalyzers unreliable.A score of journalists working for the magazine, working closely with engineers, lawyers and economists INC.

Wall Street opened down sharply Thursday, continuing its decline started the day after the grim diagnosis of the Federal Reserve on the U.S. economy, plus a further contraction in activity in the eurozone and in China revives fears a second global recession in four years.

In early trade, the Dow Jones lost 2.6% (292 points) at 10,832 points.The Standard & Poor's, wider, yielding 2.42% (28 points) to 1138 points, while the Nasdaq composite fell by 2.5% (63 points) to 2474 points.

After ten minutes of trading, the Dow's losses widened and lost 3%.

The weekly jobless claims declined in the United States during the week to Sept. 17, at 423,000 against 432,000 the previous week, but they emerged above the consensus (420 000), which does not appease the spirits.

The Fed on Wednesday raised "significant downside risks" on the economy of the United States, before announcing an "Operation Twist" 400 billion dollars to bring down long rates, and support activity.

But Wall Street estimates that only 15% chance that the "Operation Twist" gives a real boost to the U.S. economy, according to a Reuters poll of primary dealers of Treasury.

Fears of a relapse of the global economy have intensified Thursday with the contraction in private sector activity observed in the eurozone and China.

The banking sector also sensitive to economic conditions, still suffers from the decision of Moody's downgrade of Bank of America (-4.4%), Wells Fargo (-2.7%) and Citigroup (-3.9%) on the ground the U.S. federal government may be reluctant to rush to the aid of large banking institutions in difficulty.

United Technologies lost 6.6% after announcing the acquisition of the aerospace supplier Goodrich, whose work jumped 9.8%, an operation that would be the largest acquisition of U.S. industrial giant in 10 years.