Daily Archives: June 13, 2012
The Irish Government today played down the importance of the fact that since the European Commission (EC) has reportedly expressed to the German Parliament a further report on the Irish economy, the third time this has happened in the past eight months, said today the newspaper ” The Irish Times “.
An economic committee of the Bundestag (German parliament) on Tuesday had access to the latest report on Ireland prepared by the inspectors of the troika composed of the EC, the European Central Bank (ECB) and International Monetary Fund (IMF).
The document allegedly containing the analysis of the progress made by the Dublin government in the first quarter of the year to meet bail conditions imposed by the aforementioned troika and quantified at 85,000 million euros.
Among other issues, “The Irish Times” said the troika recommended in its assessment, the need for austerity measures implemented by Dublin are “balanced and fair” to American society.
An EC spokesman said today that it is not the official report of the troika, but a working document of the EU executive that will be released on 25 June, but could not confirm whether it was a “draft or a preborrador “.
The Irish Prime Minister Enda Kenny, said today that the paper, which he called “a draft” was presented Tuesday to the Cabinet by the Minister of Finance, Michael Noonan, before taking to the national parliament in the coming days.
EC spokesman Amadeu Altafaj said today in Brussels that “once again, the leak of the report is extremely regrettable, unfortunate and irresponsible.”
Last March, Dublin expressed “dissatisfaction” because the EC leaked a report on the Irish economy to the German Parliament which contained comments made by the troika on the program of aid to Ireland.
The triad then complained that the government’s privatization plan, which it hopes to raise 3,000 million euros in 2013, is not “sufficiently ambitious”, while considered to be present some new budgets for this year to reflect the current growth prospects.
Last November, the Irish Government submitted its first complaint with the EC by the Bundestag filtration of another confidential document detailing the plans of Dublin in the general state budget for 2012.
The news sparked a political firestorm in this country, which could therefore perceived as a loss of sovereignty after being forced to accept the bailout of the EU and the IMF.
The FAO warned today that despite its forecasts provide an overview positive for cereal production worldwide, there are countries in the Sahel region and the Middle East that will face serious challenges to food security.
These are the conclusions of the report “Crop Prospects and Food Situation”, presented today at the Rome FAO, the United Nations Food and Agriculture.
The study, FAO said in a statement, provides a record increase of 3.2 percent in world cereal production in 2012, reaching a total of about of 2,419 million tonnes, mainly due to the bumper crop of corn in USA.
However, this UN agency notes that, despite positive global trends, the countries of the Sahel region are facing serious food security challenges due to high food prices locally and internal conflicts .
The report notes that West Africa continues to face “growing food insecurity and malnutrition in many countries” due to a sharp drop in cereal production and grazing in 2011, combined with high food prices locally and conflict intestines.
According to FAO, the intensification of the conflict in Mali, the resulting displacement of population to neighboring countries, and outbreaks of desert locusts moving south from northern Africa, are considered additional threats to agricultural production in the Sahel in 2012, especially in Niger, Mali and Chad.
The UN agency also notes that, in regard to North Africa, Morocco is expected to experience sharp declines in production after the “erratic and insufficient rains”, while the rest of the region expect higher crop average.
In addition to the countries of the Sahel region, the study by FAO indicates that Syria and Yemen are also among the States experiencing rising levels of food insecurity.
“The situation in Yemen and Syria reminds us that there is a clear link between food security and peace, said FAO Director General, José Graziano da Silva.
The head of FAO stressed that in these two countries, “the cause of food insecurity are internal conflicts,” but noted that there are cases where “the reverse happens.”
“All over the world attended a succession of crises, in whole or in part, by lack of food or disputes over natural resources, especially land and water,” he added.
The French Government announced today the appointment in the 22 regions of the country of so many “delegates” who are responsible for taking steps to prevent companies in difficulties disappear.
Its main mission will be to lead a “cell regional monitoring and early warning system” to identify companies at risk and support to succeed, which means intercede with the banks, justice, suppliers and customers, said at a press conference French Minister of Productive Recovery, Arnaud Montebourg.
“They will be counselors, confidants of companies” and “partners” of the commercial courts that are responsible for managing the cases of companies that are declared in default, and will replace the commissioners who launched the previous government, said Montebourg.
The “delegates”, who have jurisdiction for companies under 400 employees, are “a stopgap measure while the administration is organized,” he said.
Its purpose, among other objectives, is to avoid “predators of companies” that can take advantage of the fragility of the same, the minister said, referring to the possibility that take advantage of such situations to take control of companies or eliminate competition.
Montebourg justified this device in “the emergency situation facing” France, in a context where “seven of the seventeen countries in the euro zone in recession” and that has a negative impact on the productive.
He recalled that in the last three years 900 industries have closed and that in ten years the share of industry in gross domestic product (GDP) has fallen from 25 to 13%.
For the owner of Productive Recovery, the best solution “is growth,” and that “if we installed the austerity in all countries, we have no more than recession and worsening problems.”
On the other hand, Montebourg confirmed to be a tour to other European countries where it is implemented industrially steel giant ArcelorMittal (Luxembourg, Belgium and Spain) to find “a strategic level European “and prevent the disappearance of plants.
“The steel is left in the hands of a multinational company whose centers of decision are far removed from Europe,” said the French charge in reference to the control of Mittal family of Indian origin of this company.
The leader of the PSM, Thomas Gomez, considered today that his party can not fail “to the last minute” the primary elections that will decide who is the party’s candidate for Prime Minister because citizens must have a reference as soon as possible.
In an interview, Gomez recalled that in the last Congress passed federal PSOE candidate for the election of the next general election through a primary in the French style, open and participatory supporters.
Now, has refused to stop these elections in early 2015, which is one of the options could be pondering the Federal Executive who leads Alfredo Perez Rubalcaba.
“I could not leave that decision to the last minute, take decisions in time for citizens will also have little by little references to people and not just ideas and party,” he underlined.
Although Gomez has avoided comment on what date would be appropriate, in their view, for these primaries, it has emphasized that “things can not be left to the last minute.”
Drawing on his role as professor, said that, as he tells his students not study the last day, his party also warns that “do not do their homework on the last day.”
Neither wanted to talk about names for these primaries and has not commented on the possibility that the former Minister Carme Chacon want DISPUTE.
On the opposition is doing the PSOE government of Mariano Rajoy, has estimated that before the “hard” policies of the executive must also provide a hard and forceful response.
Against the model of Greek PASOK, which has agreed “with the right policies right,” Gomez has opted for French socialism, with an alternative project.
“I am of the view that it should be an alternative model, like the French, with the right of confrontation,” he underlined, convinced that “the right not economically well managed”, as evidenced in his opinion, the Rajoy government action.
He insisted on this point that Rodrigo Rato “is removed the icon of the myth” of good governance on the right.
“Whoever said that had saved Spain with Aznar’s government, look at how you left the IMF and how Bankia left,” she added.
Gomez noted that the PSOE should offer alternative proposals and measures and, above all, “a new covenant with productive capital facing the enemy, which is the financial and speculative capital, and financial elites, those who order and fiscal control wage cuts, which are to blame for the crisis “and preventing out of it.
The president of Bankia, Rodrigo Rato, has asked the bank not to apply the competition clause of his contract, which prevents you from working in any financial institution in the next two years, thus formally renounces the possible compensation of 1, 2 million euros that would correspond.
Pending the Bankia remuneration committee to meet and have to make a decision, Rato has advised his successor as head of the agency, Jose Ignacio Goirigolzarri, the explicit renunciation of the possible payment.
The former Deputy Prime Minister recalled that in his contract as chief executive Bankia, signed in early September last year, there was a clause, with which you can prevent end up working in another financial institution.
These clauses, which are called “covenants not to compete” are common among senior executives of large companies and in fact had a Goirigolzarri himself that allowed him to leave BBVA, agreeing not to work for other entities in the next two years.
The main purpose of these clauses is to prevent confidential information handled a key person in a company runs coming from a competitor.
The remuneration committee should decide whether this clause applies and maintains the covenant not to compete with post-contractual Rato, which carries with compensation of 1.2 million euros, equivalent to two annuities of former.
That is the explanation why Rato, but resigned as president of Bankia, can come at such compensation, which will ultimately depend on the new computer financial group.
The full European Parliament today adopted a resolution calling for increasing the revenues of the European Union rather than relying as far national governments in the face of budget 2014-2020.
MEPs call for measures such as introducing a tax on financial transactions and a European VAT among other proposals.
Thus, the statement said, could reduce the contributions of the countries between 40% and 75%, says the resolution adopted by MEPs.
Although the goal is less dependent on the States, MEPs criticized the resolution because of the crisis that governments want to reduce their contribution to multi-year EU budget.
The European Council will address this issue for the first time on the summit of 28-29 June, on which the Parliament has begun to position itself in June last year requesting a budget increase of around 5%.
Countries like Britain, Denmark, the Netherlands and Sweden, among others, have been openly and publicly against, however, a rise of European budget for the future, so that negotiations could take some months yet.
The British Minister of Economy, George Osborne, has described as “depressing” the European plan to help Spanish banks because it is channeled through the state rather than injected directly into banks, reported Friday the “Financial Times”.
According to British newspaper, which includes a statement of the minister in a ceremony last night with entrepreneurs, Osborne believes that the strategy chosen by the governments of the euro area does not help instill confidence in the sovereign debt markets.
“If you do by way of sovereign debt (through the Spanish state) then you will not get to convince markets that the Spanish sovereign debt is entirely credible,” Osborne said at the conference.
“And yet, they chose that route,” he lamented.
The opposition in the Republic of Ireland-a country redeemed in 2010 – also criticized the formula chosen by considering that does not address the question of removal of the link between sovereign debt and bank debt.
The Eurogroup agreed on Saturday to offer a loan of up to 100,000 million euros for Spanish banks to be channeled through the Government, although it would be accompanied, according to the Spanish Government austerity conditions for the national economy.
According to the agreed plan, the banks will have to repay the loan based on terms that have not yet been detailed.
Following the announcement of the aid, bond yields of ten-year Spanish debt rose above 6.8% yesterday, its highest level since the entry into the euro, while also raised the risk premium.
Analysts say the debt weighs on the lack of details of Spanish aid to banks and uncertainty about the outcome of Sunday’s Greek elections, to which was added the reduction of the note of 18 Spanish banks by the Risk measurement agency Fitch.