Archive for the ‘features’ Category

Greek official: he wins, he loses

Thursday, March 18th, 2010

Greek officials have contributed to widening deficits in the country, they will also largely improve public finances. And this, not until later that week. The Socialist government of George Papandreou has decided to tackle the bloated public sector to reduce the expenses of the Greek state.

The total number of Greek officials remain uncertain. The Ministry of Finance counts "approximately" 522,000 in the central administration, a figure which must be added 180,000 employees of local authorities and public enterprises, according to a spokesman. Some economists expect rather from 800,000 to 850,000 jobs, or about 35% of total employment, as argued by Jens Bastian of the Hellenic Foundation for European and Foreign Policy (ELIAMEP).

To achieve such a payroll, state and local governments have hired a vengeance. "In 2009, 12,000 people left in retirement and more than 29,000 were hired. In short, the entrants were almost two and a half times more numerous than the outgoing, "says Jens Bastian.

Clientelism

The trend is not new. "Until the current government, public service filled the role of an employment agency," said the economist. "The policies have also sought to use their electoral base as public servants."

According to Greek daily Kathimerini, the political patronage has been launched in the 80s by the Socialist Party (Pasok) and the then Prime Minister, Andreas Papandreou, who is none other than the father of George, currently head of Government savings account payday advance ."He wanted to give the excluded, which formed the core of its electorate, the means to live as middle class," says newspaper center-right. It was also "buy social peace" at any cost, continuing Kathimerini, while Greece emerged from the dictatorship of the Colonels.

The economy "coasting"

The Pasok is not solely to blame. "From 2004 to 2009, New Democracy (right) has made the situation worse by doing nothing to cut costs and increase government revenues, leaving the economy from free-wheeling," Kathimerini analysis.

The government of George Papandreou, under the combined pressure of the market and Brussels, has no alternative today to tighten the belt. He promised not to replace a retiring over the next five years. The thirteenth and fourteenth month salaries of civil servants will be reduced by 30% and 60%.The measures, announced in January and March, are retroactive and apply from 1 January. They will be more difficult to accept that they occur after 30 years of accommodative policies.

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Hartz IV: "Germany must reduce its spending"

Wednesday, February 10th, 2010

LE FIGARO. – Ruling of the Court puts it into question the whole system "Hartz IV"?

Niels Diederich. – No. The decision of the Court concerns only the welfare of minors. In the system of "Hartz IV", children whose parents are unemployed or who are raised in single-parent families, indirectly affect the state aid. However, they receive only 70 to 80% of the amount awarded to an adult. In 2005, the legislature had found that children have lower needs than adults and had applied a standard reduction. The judges felt that we can not calculate the social benefits attributed to children on the same basis as for adults. They require the development of a new scale of separate calculation, so that their needs are taken into account.The government will soon review the text to make its corrections.

The competitiveness of German companies is in danger?

Not because this decision they will not carry more loads, it does not hurt German exports. The companies co-finance the system of unemployment insurance by 50%. But it is a separate mechanism. The system "Hartz IV" is funded through taxes. But the state has pledged not to raise taxes. It will therefore reduce expenditure to finance the surcoût.La Court is often accused of conservatism.

That shutdown threat does not modernization of Germany?

Politicians always moan against the Constitutional Court. Created after the Nazi era to serve as a safeguard against the state, it has, indeed, enormous powers. But judges do not prevent the country's modernization.On the contrary. In 1949, when the conservative party (CDU) had held that in cases of dispute over the education of children, the man still had the last word on the woman, the Court ruled that the law contradicted the principle of equality between citizens. Since the 1950s, it required that disputes be settled by a judge, thus laying the foundations of the principle of equality between men and women in the country.

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ECB: Greece will "in the right direction"

Thursday, February 4th, 2010

No surprises from Frankfurt. The European Central Bank (ECB) on Thursday left its main interest rate unchanged at 1%. Earlier, the Bank of England also announced the continuation of its policy rate at 0.5%.

In March the Governing Council of the ECB "will take decisions on (…) a gradual lifting of the measures of liquidity [in support of banks] who are no longer as necessary as in the past," said Jean-Claude Trichet at a press conference.

Long awaited on the subject of Greece, Jean-Claude Trichet has held that the fiscal savings by Greece are "not in the right direction.""We are confident in the ability of Greece will take all decisions necessary to achieve the objective" of a deficit below 3% of GDP by 2012, said President of the ECB personal business card . No exceptions will be made for any area countries, "he said.

While Portugal and Spain in turn disturb markets, Jean-Claude Trichet reiterated that it was "crucial" that all countries "respect strictly the exit procedures for excessive deficits."

"According to the International Monetary Fund, the overall deficit of the euro area will rise to 6%", said Jean-Claude Trichet. "The United States will be at 10%, Japan is also at 10%.(…) A more flattering comparison for the euro area! Nevertheless, we exhibit unabsence total of convenience "in the direction of monetary policy," he said.

Citigroup could raise 20 billion to repay the state

Tuesday, December 15th, 2009

After Goldman Sachs, JPMorgan Chase, Morgan Stanley, and most recently Bank of America, Citigroup could in turn repay the 45 billion dollars in aid it has received from the American state to cope with financial crisis .

Dick Parsons, the chairman of Citigroup, said Wednesday on CNBC that the bank was in talks with regulators about the end of the repayment plan support Tarp (Troubled Asset Relief Program).

A fundraiser for 20 billion dollars (14 billion euros) with issuance of securities should be made according to sources quoted by CNBC in order to finance a portion of the refund. But to finally release the Tarp, which allows time for Washington to fix the amount of remuneration of employees of the group, such a transaction might not be sufficient.

The complexity of the assistance is in question as well: besides the 45 billion dollars in direct aid, the U.S. government has also agreed to $ 7 billion of "Preferred Securities" to offset the additional guarantees granted portfolio. And 25 of the 45 billion have subsequently been converted into shares of Citigroup type "ordinary". If fundraising is necessary, it should also allow for participation by the government.

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The A400M is ready for takeoff

Friday, December 11th, 2009

Finally. With a year and a half years behind its original schedule, the Airbus A400M military must conduct its first test flight Friday morning. Unless last-minute incident, the aircraft must fly 10 hours to Seville in Spain, where the manufacturer assembles this revolutionary turboprop. The inaugural flight of 3 hours has been entrusted to a team of six people two pilots, one British and one Spanish and French sailors four engineers. His captain Edward Strongman, formerly of the Royal Air Force.

Successful first flight is approved and gives the start of the certification campaign, is crucial for Airbus. "This will prove that it is not a paper airplane," they say in EADS, parent company of Airbus.

The A400M is the ambition of Europe to develop a force projection troops and heavy equipment independently.The A400M should allow Airbus to enter through the front door on the military aircraft market with a very sophisticated device and without competing in the world who could claim a good career for export. Unlike the tanker, which are derivatives of Airbus A 330 existing civilian, the A400M is a military aircraft and 100% brand new.

Three years behind its delivery schedule

Alongside this first flight, a further meeting to be held also on Friday in Seville to prepare a Council of Ministers of the European Defense involved in the program next December 15. For many months, the countries involved since 2003 in the A400M project negotiating with EADS to lay the groundwork for a new contract. This should have been signed on the day of the first flight. But the negotiations are complex.The A400M accused three years behind its original delivery schedule and its costs have drifted dangerously from the initial investment of 20 billion euros. EADS has already provisioned 2.4 billion euros in its accounts, but the extra cost is estimated at 5 billion euros (as far as the A380). This adds about 40% unit price per unit. According to a new timetable yet informal, Airbus should deliver 3 copies in 2013, 4 in 2014 and 7 in 2015 and an average of 4 from 2016.

At the heart of negotiations, the financial burden-sharing, penalties for delays and the type of contract. EADS can only assume all additional costs, or more than 7 billion euros (with stores already spent) for cash of $ 8 billion.Not only Airbus should abandon the program, but he could no longer finance its future long-haul 350, or the renewal of its range of medium-range Type A 320. This, when the reports of deliveries are switched his cash.

France has already indicated it wanted the new contract is consistent with the budget provided under the Act of Military Program (LPM) 2009-2014. "… The orders do not come will be deferred and spread beyond 2020, said recently Laurent Collet-Billon, Delegate General for Armaments.

Taken hostage by the European political

In April that under the leadership of Hervé Morin, Minister of Defense, European countries have agreed an initial moratorium to save the program. Give it up would create an earthquake in Europe by giving a fatal blow to any future "European defense".Britain had threatened to withdraw. Finally in late July, all countries agreed to open negotiations with EADS. The first contract signed in 2003 is outdated. Client countries reaffirm their full commitment to the project. The A400M will see a disclaimer: South Africa, one of the first export customer, waive and cancel its order for 8 units.

In fact, from the outset, the A400M has been hijacked by European politicians. Launched in the 90s, the project is ambitious. It involves building a revolutionary new aircraft to replace its aging fleet of 180 Franco-German Transall and Hercules American half to 40 years average age. Europe wants to regain expertise it is threatened with losing.Therefore, at the highest political level, countries require Airbus to choose a new turboprop engine a sophisticated 11 000 horses, the largest in the Western world developed by a consortium of European engine. States do not want the solution advocated at the time by Noel Forgeard and his teams: buy an existing Canadian engine developed by Pratt Whitney 1 which is 20% cheaper. London and Berlin demanding that their industries are retained. Otherwise, they threaten not to order the aircraft. The A400M should also meet the expectations of many armies, it is "a white elephant." Another incongruity, the contract is a civilian type each number or equipment must be certified not only defense but also by civil aviation – and the price of the program is fixed once and for all late penalties for industrial Contrary to conventional military contracts.Finally, the timetable is extremely tight, 6 years when no military aircraft was developed in less than ten years.

Besides political pressure, EADS has also suffered "pressure" of his own organization. Since its inception, CASA, the Spanish EADS component required to drive the business and military aircraft not to depend only on the parent when logic would have liked them to be linked to Airbus. "The aircraft has been developed by Airbus Military Spaniards who had not the industrial dimension to add a device as complex, and engineering was in Toulouse," said one expert dossier. Louis Welsh, president of EADS, has put a stop to this ineffective organization and Airbus Military has been taken over and placed in orbit Airbus.

Sino-French three proposals Christine Lagarde

Friday, November 27th, 2009

Last April, the presidents Hu Jintao and Nicolas Sarkozy have had a fruitful meeting with the G20 summit in London, putting the Sino-French relations over the rail of a healthy development. Recently, they met in New York, reaffirming their commitment to the comprehensive strategic partnership between China and French. To realize this convergence of views, to echo the call of the business communities of both countries and strengthen economic cooperation and bilateral trade, a delegation from the Ministry of Commerce of China and a "mission of promoting trade and investment "consists of 290 Chinese entrepreneurs from more than 140 companies, travel these days in France.

Despite the challenges of all kinds, economic cooperation and Sino-French trade has always grown at a steady rate.In 2008, the volume of our trade reached a record 38.9 billion dollars, an annual increase of 16%. Today, more than 2 000 French companies are operating in China, their combined sales amount to 25 billion dollars per year, equivalent to twice the amount of French exports to China. Our two countries have conducted fruitful cooperation in various sectors such as energy, aeronautics and aerospace, transportation, etc.. The France is the fourth largest European trading partner of China; it the first partner of France in Asia.

Despite the crisis, our companies have succeeded in finding new business opportunities. Of the first ten months of the year, bilateral trade volume reached 27.75 billion dollars.French exports to China have registered a decrease of 11.9% better performance than that of the foreign trade of China and Sino-European trade, which shows the opening of our recovery plan for French exports. More than 140 companies with French capital have been created in China during this same period, averaging one new company every two days.

The path the world economy of early recovery to a new growth cycle will be long and tortuous. The Chinese government, putting priority on expanding domestic demand, has developed a comprehensive plan. The results are there and the target of 8% growth for 2009 will be realized.

China has also sent a dozen missions to promote trade and investment to over 30 countries and made its contribution to the global economic recovery.The assertion that the crisis will be following the global economic imbalance due to large surpluses in Asian countries is without foundation. The imbalance between developed countries and developing deserves much more attention. Alas, this néothéorie world economic imbalance is in the process of furthering trade protectionism, threatening the economic recovery. The seventh meeting of trade ministers of WTO will take place in a few days, during which will be assessed progress in the negotiations of the Doha Round. The short term success of this cycle is essential to curb trade protectionism. I also make three proposals on bilateral Sino-French. First, increase exchanges between our companies.Recently, we welcomed the visit to China by Ms Christine Lagarde, who took with her famous French companies. And in early December, the third edition of the business convention "China Europa will be held to Le Havre. Second, turn challenges into opportunities, especially in emerging sectors such as the green economy.

Our two countries should deepen cooperation in areas such as new energy, environmental protection, transportation, aeronautics and aerospace, focusing on certain projects. At the same time, China is experiencing strong demand in services sectors such as finance, logistics, tourism, creative industry, software development. It will welcome French companies in its market.Thirdly, provide more facilities to increase the cross-investment, French and Chinese in China in France.

China and France are linked by a history of friendship. In the early twentieth century, many young Chinese have gone to France to study, including Zhou Enlai and Deng Xiaoping became the founding of new China. General de Gaulle made France the first major Western country to establish diplomatic relations with new China. Today it is for us to consolidate the traditional friendship between China and France.

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