Monthly Archives: June 2012

Hollande called “quick fixes” for countries threatened by the markets

French President François Hollande, today called “very fast solutions” for countries that are “threatened by the market” despite having made a “considerable effort” of reforms.

“I come very quickly to provide solutions to support countries that have more difficulties in the markets, even if they have made ​​considerable efforts to steer public accounts,” Hollande said in a statement on his arrival in the European Union summit .

Hollande, who did not cite to any particular country, said that action should be undertaken by “solidarity”.

The French president said his other priorities for this summit is growth, but with “a covenant with figures” to commit 1% of EU GDP, about 130,000 million euros to be invested “quickly” to create jobs.

Hollande said that the summit will discuss closer economic integration and greater solidarity between EU partners, the report of the European Council President, Herman Van Rompuy.

But he insisted: “We need immediate action to countries that have made ​​efforts but can not stand the pressure of the markets.”

Rajoy hopes the summit will adopt measures to ease the pressure on Spain

The Spanish prime minister, Mariano Rajoy, now entrusted to the European summit which starts this afternoon in Brussels to take “any decision” to lower the cost of financing in the markets of Spain.

“Right now the price of credit to Spain is obviously very expensive and I think the European Union and the Economic and Monetary Union must be aware that this is so, and that a decision must be taken,” said Rajoy on arrival at a previous meeting of the European People’s Party (EPP).

Asked about the option of a direct recapitalization of Spanish banks, the chief executive has said it is “one of the possibilities that are open,” but stressed that this issue not be resolved today.

The Prime Minister has insisted that the resolution of the problem of “debt sustainability” is “fundamental” and assured that any other measure “is useless if we can not fund.”

“We financing at prices too high and there are many Spanish public institutions can not even funded. This is the key issue,” he stressed.

Asked about measures to reduce those costs of funding that can be taken at the EU summit today and tomorrow, Rajoy has stated that the “position of Spain is already known” and he will defend, but recalled that “decisions are made in most cases unanimously and that complicates things. ”

“What comes out of all this, as we shall see,” said.

Together with this high priority, Rajoy has argued that out of the current EU countries should “continue cleaning up” their public accounts, to agree on measures to reform and growth.

Among them, the Spanish prime minister has argued that the European Investment Bank (EIB) to finance small and medium enterprises, which has been considered a “key priority” to fight unemployment in the country.

Asked about the option of a direct recapitalization of Spanish banks, the chief executive has said it is “one of the possibilities that are open,” but stressed that this issue not be resolved today.

Rajoy has said that this route, which would mean that the European rescue fund capital injecting problems in States without passing through the state “has its advantages and disadvantages.”

It’s, recalled that “the union would go into banking” is the debate and hope that today the point “some ideas” about the topic at the meeting of heads of State and Government of member countries.

ILO warns of deteriorating public sector in Europe

Adjustments “unprecedented” public sector, combined with a lack of social dialogue between governments and workers, job security has deteriorated and salary of public employees in Europe, warned in a report the International Labour Organization (ILO .)

The document entitled “Setting the Public Sector – Overview, Impact and Policy Issues” notes that “the hasty pressure to reduce public spending tends to favor quantity adjustments, primarily through cuts in spending, jobs and wages in the public sector. ”

“All these changes can not be neutral in the future quality of public services. It is something that remains to be seen in education and health, but also threatens the jobs in public administration,” said ILO expert and responsible for the report, Daniel Vaughan-Whitehead.

The study notes that in several European countries public employees have already lost their wage advantage they had with respect to private sector workers, that “it empirically justified by higher levels of education in the public sector.”

According to Vaughan-Whitehead, “the decline in wages and employment in the public sector, compared with the private sector has not only resulted in a shift of workers, especially doctors, nurses and teachers.”

“In addition, the public sector has also ceased to attract the most qualified graduates who had been its lifeblood,” said ILO expert.

The report also warns of worsening of the “social climate” in the public sector and calls for “strengthening the dialogue between governments and workers, and consider a better combination of tax considerations and other”.

“Equality, social dialogue, employment prospects, working conditions, and future efficiency and quality of public services deserve more attention. Only under these conditions the utility will remain an important source of social cohesion and economic growth, “said Vaughan-Whitehead.

Banking employers believed that the breakdown of the monetary union is “likely”

The president of the bank employers (AEB), Miguel Martin, said today that a break in the euro zone is not only possible but “even probable.”

Speaking at a course on the euro crisis in the International University Menéndez Pelayo (UIMP), Martin has argued that Europe’s problem is the lack of competitiveness and that “we are content to have a mild recession.”

Michael Martin has held that the sovereign debt crisis comes from the fear that a default occurs, as happened in Greece, making bondholders, who are mainly banks, treating such titles as “risky assets” .

He criticized the injections of liquidity by the Central Bank (ECB), because “it is a false solution”, which gives money to banks to invest in sovereign debt and become increasingly vulnerable.

So, has insisted that “the problem is that Spain’s economy is not competitive,” so you need an “internal devaluation” to sell cheap, especially to Germany, but with respect to social cohesion.

At the same time, has supported fiscal consolidation in order to become less dependent on markets because “we are going to take a hard”.

In that regard, he added that European aid money must use it “wise” to be more solid and solvent entities because, otherwise, it could even be a negative measure.

To avoid breaking the euro, Martin has chosen to create a rescue fund that can take direct stakes in banks and issuing “some kind of common sovereign” and start the path to a banking union.

He also noted that the employer does not want public money to clean up the banking costs not borne by the taxpayer and has recognized that although the problem of Spain are not banks, “there are other banks that have created a problem.”

Regarding the preferred stock, has suggested that each entity is “responsible” for their emissions, but that if an entity has problems and “is not responsible for itself” nor shall bear the titles.

European markets opened almost flat on the day of the decisive summit of euro

European markets opened almost flat today, pending the opening of this evening’s EU summit, described as crucial to the future of the euro.

The Milan Stock Exchange today opened upward and selective index, FTSE MIB rose 0.21% and was equal to 13,333 points.

The London Stock Exchange rose 7.48 points, or 0.14 percent, and stood at 5531.40 integers, while the Frankfurt also opened upward and DAX 30 at first rose 0.13 percent to 6,237 units.

The same trend was recorded in Paris, where the CAC-40 was up 0.12 percent to reach 3,066.79 points.

In Spain, the IBEX 35 was down 0.5 percent,

The Euro opened higher in the foreign exchange market in Frankfurt and from 06.00 hours GMT was trading at $ 1.2510 compared to 1.2455 the previous day.

The risk premium on Spain touched at 09.42 local time (07.42 GMT) 550 points (549.2) after the interest of Spanish bond to ten years, whose distance from the same period the German measures country risk reached the critical level of 7%.

The additional cost that investors demand for buying Spanish debt against German widened both by rising bond yields Spanish as the slight fall of the German bond interest, which went from 1.571% to 1.508%.

Risk premiums in other peripheral countries of the euro area remained almost unchanged at this time except for Italy, which rose to 475 basis points while the yield of ten-year bond rose to 6.259%.

Analysts say markets expect to learn about the initiatives that the EU leaders can take to alleviate the debt crisis at the summit being held today and tomorrow in Brussels.

The Heads of State and Government today begins a crucial two-day summit for the euro area, which advocate for growth and employment and will try to move towards a new architecture based on a joint bank and fiscal policy.

The leaders approved an agreement to provide for growth and employment that will advocate for advancing the single market, digital and energy and a financing plan, probably endowed than 130,000 million.

Once this debate is concluded, is expected to address the Twenty-creation of a joint bank and fiscal policy that includes a European banking supervisor, a Treasury euro Eurobond vetoing budgets and limits on debt issuance.

These ideas are part of a report presented by the European Council President, Herman Van Rompuy, and on which to base the discussion of European leaders, in order to detail specific measures in December.

Annual inflation remains at 1.9 percent in June

Annual inflation stood at 1.9% in June, the same rate recorded in May, the leading indicator of consumer price index (CPI) released today by the National Institute Statistics (INE).

This listing has especially influenced the fall in prices of fuels and lubricants, which has been offset by the price behavior of snuff and food.

The INE has also published the leading indicator of CPI (HICP), which measures changes in prices by the same method in all countries of the euro area, according to which inflation has been on June 1, 8%, one tenth less than the previous month.

The leading indicator is an increase of CPI, which definitive data will be released on July 13, and usually does not vary significantly.

To match the information we have today with the publication in July confirmed the downward trend in inflation that began in May 2011, when it stood at 3.5% and was down sequentially until September, when which increased by one tenth to 3.1%

Since September there have been successive reductions in the CPI-year except April, when the rate rose to 2.1%, two tenths more than that recorded in the previous month.

The INE started spreading the leading indicator of CPI in January 2011, because from that date the methodology for calculating the CPI and the HICP differ in the treatment of clothing and footwear, and fruits and vegetables by the entry into force of regulatory change in the European Commission.

Although the INE published an advance indicator of the HICP since 2004, from 2011 offers complete information on the evolution of consumer prices.

Merkel does not want “easy solutions” to the crisis in Europe

German Chancellor Angela Merkel on Wednesday reiterated his opposition to the “easy solutions” before traveling to Paris for dinner with French President, François Hollande, on the eve of a summit that is expected to go remedies to the crisis in Europe, frightened by a Spain that is teetering.

In a speech to Parliament Germanic, Merkel warned again that there is no “quick fix (not) easy for the crisis,” taking a cold shower to the expectations of the summit of EU leaders on Thursday and Friday in Brussels.

Structural reforms in countries with problems will be “high on the agenda” of the summit, reminded the chancellor, who said he hoped “disputes” and that “all eyes, or at least many, are made in Germany”, leaving clear that the only medicine to overcome this crisis that threatens to engulf the euro austerity.

And is that the forces of Europe’s largest economy is not unlimited, and Berlin has already made enough concessions to Europe, estimates the head of the German Government has repeated its opposition to any form of mutualisation debt in the euro area while not strengthen the possibilities of “control and intervention” of national budgets.

The day before, in a meeting with a group of parliamentarians, Merkel was quoted as saying that the Eurobonds, which many consider the salvation of the monetary union will not see the light while you are alive. For Berlin, these instruments can only come after further European integration in which member countries increasingly cede sovereignty to Brussels.

Merkel Is this what you want to put on the negotiating table in Brussels, on the basis of the roadmap prepared by the EU president, Herman van Rompuy, which proposes the creation of a banking and economic union along the next ten years.

If the idea of ​​further integration with acceptance, for many it is a secondary issue given the seriousness of the crisis. Cyprus earlier this week became the fifth country of the monetary union to seek help from its partners, Spain and Italy are more than ever in the eye of the hurricane.

The fall in gross domestic product (GDP) Spanish accelerated in the second quarter, said on Wednesday the Bank of Spain. The Prime Minister, Mariano Rajoy, has also warned that the country may be financed for a long time with the current interest rates, which are slightly below 7% (6.8%) for the debt to ten years.

Beteta announced that the State shall abolish all associations

Secretary of State for Public Administration, Antonio Beteta, today announced that the State shall abolish all associations and recalled that the Provincial assume the powers of those municipalities that do not meet the Budgetary Stability Law.

In a press conference after the launch of the ‘Study of the Integrated Environmental Authorisation’, Beteta explained that this decision is framed in the context of Local Government reform presented by the government and wants a pact with the PSOE and other political parties.

“This is a very important rationalization savings will be quantified in the time it is finished close the political negotiations,” said Beteta, who has warned that in the event that no agreement, “will anyway. ”

So, has revealed that the associations (legal entity formed by grouping of municipalities) “is deleted all”, while the Provincial managed municipal powers of those municipalities that by violating the Law of Budgetary Stability, unable to provide “effective and efficiency “public services.

Beteta noted also that the elimination of municipalities will result in the suppression of public office and, through the Law of Transparency, “there will be a rationalization and standardization of the different wage levels.”

Also referred to a report by the Institute for Fiscal Studies, “which shows that it is 20 times cheaper to provide a global service by a council to small municipalities, the provision of such individual.”

“The Government understands that it is not absolutely required the removal of municipalities, but it is required that all municipalities comply with the budgetary stability, which spend only what you enter,” he stressed Secretary of State for Public Administration.

In this regard, he indicated that “in the long process of supplier payment” has been found that some 3,000 municipalities, of the existing 8,116, have not complied with the budgetary stability law and therefore “could not continue to manage their own interests. ”

“It’s about redefining the powers and establish clearly the powers vested in municipalities and have the obligation to comply with its own resources,” he explained.

Once you have satisfied these skills from their own resources, has said, “will move to negotiate competencies that are specific to the regions through agreements.”

The public company Ineco direct the work of a ring in Sao Paulo

The engineering company public Ineco be responsible for project management work is to bypass a road in Sao Paulo, which has a budget “important” and financing-American Development Bank, announced today the Minister of Development, Ana Pastor.

In response to a question from the popular MP Andrew Ayala, the head of Public Works explained that this agreement is the result of the trip he made last week to Brazil in the Rio +20 conference.

Pastor has indicated that the Spanish public companies will once again accompany the rest of Spanish companies to overseas projects such as Saudi Arabia awarded to build the high speed train between Mecca and Medina, which would be a “source wealth for our country. ”

It has also emerged as one of the most important Brazilian AVE from Rio and Sao Paulo, which has more than 500 kilometers and in which both ADIF and RENFE tender and all companies interested in participating.

He recalled that also will be launched near the metropolitan area of ​​Sao Paulo and the metropolitan express train.

Regarding airport I had the opportunity to be with the head of the National Civil Aviation Agency of Brazil, Wagner Bittencourt, which dealt with the proper positioning of AENA throughout Latin America, “the first airport operator in the world,” he noted.

GDP continues to deteriorate faster pace, according to the Bank of Spain

The Bank of Spain has warned today that the Spanish economy has continued to deteriorate in the second quarter at a “more intense” than expected, due to the decline in private consumption.

The first Economic Bulletin published under the new mandate of the governor, Luis Maria Linde points out that the gross domestic product (GDP) fell by 0.4% in the first quarter year on year, and notes that in May continued to fall in confidence indicators household and retail.

He adds that vehicle registrations have accelerated their decline in May, as sales of retail and consumer goods and services of large companies.

The watchdog also noted that job losses continued at a remarkable pace and continues the path of “surge” began in the second half of 2011.

The Bank of Spain begins his chapter on the actual evolution of the Spanish economy recognizing that the Spanish economy has been “strongly” affected in recent weeks by renewed tensions in financial markets in the euro area, which led to Executive to apply for financial aid to clean up the Spanish banking system.

Insists that this loan, which will come from the European Facility for Financial Stability (EFSF) or European Stability Mechanism (MEDE), “will associated conditions on the financial system.”

On the macroeconomic situation, the supervisory body affects the weak demand for capital goods in the second quarter, falling industrial production and behavior “unfavorable” in investment in construction.

These negative data adds the decline in real exports of goods in April year on year, and imports, which “reflect the weakness of domestic demand,” particularly by falling purchases of consumer durables or team.

The Bank of Spain also advanced with the data for April that the growth of liabilities of the government has stabilized on year and there is some emphasis on the pace of contraction in household debt and the companies and their most liquid financial assets.