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Budget: final arbitration to save 10 billion euros

"Real estate: the cropped Scellier

"Niches: plane and down the ceiling

"Companies: rising social package

"Other tracks: capital gains on the hot seat

Operation must! The government will this week attempt to convince the financial markets on its ability to control public finances. François Fillon unveiled late Wednesday afternoon in the presence of Baroin and Valerie Pécresse, the Ministers of Economy and Budget, the new conservation measures for France to retain investor confidence and its " AAA. "

The government enters the final stretch trade-offs. François Fillon and Nicolas Sarkozy meet to sort the list of suggestions made last week by Bercy (and amended by the relevant ministries) and begin to remove some tracks.Then the president and prime minister Wednesday to finalize the measures to adopt.

The government did not release the extent of the plan, but it evokes an effort between 5 and 10 billion, and a trend towards the top. The turn of the screw will break down between savings on public spending and further cuts in tax and social niches.

On this last point, the government does not start from scratch. The measures that were passed in the fall (tax on marriages, on the solar panels, niches plane, etc.). Will yield 2.4 billion in 2012. But we'll have to do much more. There is another month, the government did not request such an effort to households and businesses. He planned to take samples of only 3 billion. With 2.4 billion already in the pipeline, the step to take was minimal.But since the degradation of "AAA" rating from the United States, France finds itself under pressure from the markets. Even if it borrows at low levels (2.74% at ten years), a sign of confidence that it continues to generate, France must do everything to protect his note. For if it were lowered, the state should borrow at higher rates. According to the Court of Auditors, an increase of one point would increase the debt burden of $ 2 billion the first year. To prevent a runaway cost of debt, the government should not deviate from its route.

Increase in the social package

Paris has pledged to reduce its public deficit to 5.7% of GDP in 2011 and 4.6% in 2012. This objective was particularly complicated since the Insee reported zero growth in the second quarter. Bercy forecasts an increase of 2% of GDP in 2011 and 2.25% in 2012 now seem too optimistic.On average, economists expect now on a 1.4% growth next year. However, less growth means less tax revenue and more spending for the state, the social security and local authorities. Without necessarily announcing Wednesday a revised its growth forecasts, the government is obliged, if he wants to keep its deficit targets, to take austerity measures …

Increase in the social package for businesses, new plane and lower overall ceiling of niches, penknife devices ultramarine and real estate … the tracks are not lacking. The government also provides measures for the social security system, not to mention taxing very high incomes as suggested on Wednesday, Maurice Levy, president of Publicis and the Association of Private Enterprises (Afep), in an article in Le Monde ."We need efforts that will be requested to the French are fairly distributed," assured the same day Valerie Pécresse on Europe 1. The measures adopted will be included in budget 2012.

France can she get into the spiral of Greece, where budget cuts exacerbate the recession, which in turn widens the gap? A priori not. This year, increases in taxes, resulting from the measures passed in the fall, reached $ 12 billion. Without destabilizing the country.

Real estate: the cropped Scellier

Before the crisis, Bercy was considering reducing benefits. The pressure is greatest.

• Law Scellier

The niche Scellier reduces its tax by investing in rental real estate. It was expected that the tax reduction equal to 22% of the investment in 2011 reaches 18% in 2012.The reduction could fall to 15%.

• Ready to zero +

There are plans to reintroduce a means test for the loan (PTZ), in order to focus on vulnerable households.

• Capital gains on real estate

The capital gain on the sale of a principal residence will remain tax exempt. For other assets, the gain is taxed at 19%, plus 12.3% social. However, there is a reduction (10% per year after five years in prison) that applies to the capital gain and will disappear for undeveloped land for building. It is also the question of decline (eg 5%) for other goods.Another track: the system of reduction of the gain disappears for the payment of social security contributions.

Niches: plane and down the ceiling

The tax loopholes will undergo a new movement of the plane after the last year which affected 22 devices (Scellier, actions overseas, the tax credit for environmental equipment in the house). The rate of tax reduction was reduced by 10%: a rate of 50% was increased to 45%, a rate of 25% to 22% … The measure, however, has yet to be felt, because the first plane applies to the income tax paid in 2012, sitting on the revenues of 2011. The government planned to meet the plane in 2011 (eg 15%) and pass a new tax on plane sitting on the revenues of 2012.
Widely used devices, such as overseas benefits or tax credits for equipment of the house will still be trimmed.MPs want all the niches are planed. Others will disappear. In addition, the overall ceiling of niches, set at 6% of income over 18,000 euros, will be lowered.

Companies: rising social package

Social package, paid by companies on the profit-sharing and employee savings, should be increased from 6% to 8%. Expected gain: 400 million euros. Since its inception in 2009, the government increased the fee by 2 points every year! Systems loss carry-on prior and subsequent, which limit the corporate tax should be reduced. They benefit primarily to large companies but the government wants to rebalance the tax burden with the small. The carry-back would
limited to one year. And to carry forward losses from the profits would be capped.In Germany, the losses charged can not exceed 60% of the profit. However, the idea of ​​limiting the deductibility of loan interest is difficult to implement.

Tax on very wealthy households

The government pledged in the spring to tax high incomes, and a working group must report its findings in the fall. Two tracks are at this stage on the table to non-deductible from corporate income tax payments "extravagant" or create a new tax paid by very wealthy households. The latter option holds the rope in the government because it has the support of parliamentarians. Gilles Carrez, the rapporteur of the budget UMP
in the Assembly, propose to tax at a rate of 1% or 2% revenues exceeding one million euros per year. But Peter wants Méhaignerie the new tax applies from 150,000 euros to 200,000 euros in annual income for a couple.The lively debates ahead!

Other tracks: capital gains on the hot seat

Gilles Carrez wants the taxation of life insurance is carried over the water each year on their earnings potential, while households are now taxed when withdrawn at a variable rate depending on the length of detention ( 7.5% after eight years). Another idea: adjust the taxation of life insurance, whether it is placed in shares or products without risk. The UMP Jérôme Chartier wants to create an additional ceiling on tax loopholes, reducing to 50% of tax due from the advantage of niches. But Bercy is not favorable. Finally, many parliamentarians call for the removal of reliefs on capital gains from stocks and bonds (third year in excess of five years from 2012).

Tour of Europe's austerity plans

In an attempt to reassure the debt crisis, the austerity is accelerating in Europe. States as markets in the sights they will have to convince the date of 2013 to bring their deficit below 3% (a year later to the country under the rescue plan), as agreed with the European Commission . The great unknown is the impact on growth, with figures for the second quarter are published on Tuesday in Brussels.

Italy

Rome adopted Friday a drastic austerity plan to recover 45.5 billion euros by 2013, based in particular on tax increases, massive loss of seats of local administrations and combination.

For the first time, a solidarity tax on the highest incomes was introduced, up to 5% for incomes over 90,000 euros per year and 10% in excess of 150,000.Parliament had already voted in July an austerity plan of 48 billion euros over three years. But Italy has no choice its massive debt (120% of GDP) in place at the forefront of possible victims of the debt crisis. The surge of his bond yields to record levels last week had forced the ECB to redeem itself from the Italian debt in exchange for strict conditions on the hardening of austerity.

Sunday, the president of the European Council, Herman Van Rompuy, welcomed these measures "critical" for Italy, but also "for the euro area as a whole."The Europeans know that, after the bailout for Greece, Ireland and Portugal, the fall of Italy would push the euro into unknown territory paydayloan.

Spain

Seen as another weak link by investors, Madrid about to vote in late August a tightening of discipline, to bring back 4.9 billion euros in additional funds. This new turn of the screw completes the plan adopted in 2010 drastically to save 65 billion over three years.This time, it is health insurance and big business that would be utilized.

Greece

Athens, whose budget woes have catalyzed the debt crisis, the end of June adopted an austerity plan providing for severe savings of 28.4 billion euros in 2015 (divided equally between tax increases and decreases public expenditure) and a wave of privatizations to bring 50 billion euros. This was the condition imposed by the IMF and the European partners to unlock their help.

Portugal

Lisbon, also forced a bailout, wants to go beyond the expectations of international donors. To counter any slippage in public finances, the government announced in July drastic measures: special tax of 50% of the fourteenth month of incomes above the minimum wage, increase in VAT from 6 to 23% …These cuts are in addition to a package (15% increase in transportation rates, primary school closures …) has already been decided despite their unpopularity.

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Riots in London, the press questioned the role of the BlackBerry

The day after a second night of riots in the suburbs of London, the British press is concerned about the impact of new technologies in organizing rallies. If the use of Twitter and Facebook was highlighted during Arab riots in recent months, a new player is on Monday stormed the British media: the BlackBerry Messenger (BBM), who played a key role in events.

BBM is a service available only on BlackBerry brand phones, allowing users to exchange messages for free via the Internet, and not through the telephone network. Messages can be exchanged only if both corresponding to communicate their personal code (PIN) before.The interception of messages by a third party, or by the police is complicated.

The principle of BBM is similar to that of SMS, to the last detail BBM messages that cost nothing. One argument that has made the BlackBerry smartphone's favorite British adolescents (37%), according to a study cited by the Guardian. For The Urban Blog Mashup, taken by the Telegraph, BBM is very popular among young 'for three reasons: it's fast, it's free, and unlike Facebook or Twitter, the messages exchanged are completely private. " .

"The gangs have been using BlackBerry for organizing the riots"

"The device, previously reserved for businessmen and politicians, are now the preserve of thugs and young (…) through this application," says the Telegraph.The conservative daily notes and Mark Duggan, the young man whose death was the cause of the night of riots in Tottenham, had sent a message via BBM to his girlfriend shortly before being shot by police. "The message said: 'The cops follow me,'" wrote the daily.

"The gangs have been using BlackBerry for organizing the riots," says the Telegraph. A Guardian journalist is in the same direction, explaining that "many sources (him) confirmed that BBM, inciting to raid the town of Enfield, was heavily circulated on the BlackBerry network Sunday early afternoon noon ". The journalist claims to have read other messages about plundering six other districts in north London on Monday night. "There is no doubt that BBM is used to organize the violence."

The BBC website, he does not deny the use of BBM in the events of the weekend, minimizing its impact."While smartphones have helped those who participated in the riots, they were certainly not convinced those who were not interested to join rallies," writes the site based on the analysis of Dr. Chris Greer, Professor of Sociology and Criminology at City University in London. For its part, RIM, the manufacturer of BlackBerry phones, said Monday in the evening he would "cooperate fully with the Interior Ministry and the British police force."

British police monitors Twitter users

Scotland Yard warned on Monday that it would arrest any person to become involved in urban riots on Twitter. "Provocative and inappropriate messages were posted on Twitter" during the weekend, said the British police.The Times cites several messages such as "Everyone at Tottenham n **** the police, I hope that there will be a dead tonight" (the message has since been deleted).

For its part, the Telegraph has collected pictures of rioters and that of a young man posing in front of several games he had stolen during the violence. "Do you know? Send us an email if you have any information, "wrote the site, without specifying for what purpose he seeks to know the identity of these people.

The CAC 40 expected sharply higher

Relief. Is the word that should prevail today on all global exchanges, after U.S. lawmakers passed this night finally put to agree on raising the debt ceiling. At 8:15, future contracts on the CAC 40 advanced sharply from 1.39% to 3724.50 points.

Last week, the inability of the United States to solve the problem of public finances had weighed on investor sentiment. In Paris the CAC 40 was indeed touched its lowest level in session year (3,630.75 points), while Wall Street finished its worst week in a year, despite the intervention of Obama Friday in an attempt to reassure debt.

After the relief 10 days ago on Greek sovereign debt, the calm would return to the Paris financial center.After weeks of negotiations, elected Democrats and Republicans have indeed finally found common ground on the amount of new ceiling, avoiding the world's largest economy is in default of payment in the coming days. According to preliminary information provided by the White House, the debt ceiling would be raised to 2.1 trillion dollars, which breathe new life in the United States on the forehead of the debt until 2013, after the presidential elections. This agreement in principle will also enable the countries to continue to borrow on the markets beyond the August 2 deadline set by the Treasury.

The reaction of rating agencies expected

On the other hand, no excessive optimism are to be expected in the financial markets today, at least until the U.S. Congress has not ratified the agreement. The first submission is expected to vote that day.Furthermore, few details have yet filtered on measures taken to reduce the deficit in the U.S., which does not exclude the possibility of deterioration in the rating of the sovereign debt of the United States.

For now, the first tranche of spending cuts of $ 1 trillion is expected. Then a bipartisan special committee of Congress will then be responsible for finding the end of November additional expenditure cuts amounting to 1.5 trillion dollars. A total of 2.5 trillion dollars in budget cuts, all over 10 years. From this point of view, the reaction of rating agencies in this agreement called the "medium term" should be widely followed by the markets.

On the currency front, the dollar has benefited only modestly from the announcement of the night, illustrating the temporary nature of such an agreement.Around 6:00, the euro slipped against the dollar at 1.4385 dollars against 1.4395 on Friday, but climbed against the yen at 111.67 yen against 110.41 Friday. For its part, the dollar set off again up significantly against the yen at 77.63 yen after briefly reached 78 yen, 76.73 yen against Friday night.

In terms of oil prices were up Monday morning in electronic trading in Asia, where the market relieved by this agreement in extremis. In morning trading, a barrel of "light sweet crude" for September delivery gained 1.53 dollars to 97.23 dollars. That of Brent North Sea crude for September delivery was appreciating $ 1.25 dollar to 117.99.

Macroeconomic side, investors should look carefully at the unemployment figures for the month of JuneOverseas are also expected to 4:00 p.m. construction spending for the month of June, the ISM manufacturing index for July.

As for values ​​to follow

Last week, the many semi-annual publications were rather disappointing, adding to the nervousness of investors. The pace slows publications this week, though are expected in the next three days the details of the interim bank values ​​(Tuesday BNP Paribas, Societe Generale on Wednesday and Thursday Axa and Natixis).

Eiffage reported a slight slowdown in growth in the second quarter despite a sharp rebound from its construction activities, the division of public works who registered a decrease over the period.

Outremer Telecom.A draft tender offer simplified to the telecom operator was introduced by OMT Invest, a structure controlled by Axa Private Equity, according to a notice to the Financial Markets Authority (AMF) and released Friday.

EDF Energies Nouvelles (EDF ENR) has entered into exclusive negotiations with Capital Perceva to cede control of Supra, the fund feeds the project to file a simplified takeover bid at the end of the process.

General Health issued a sharp drop in operating profit in the first half due to exceptional items, but its revenue rose due to higher acute care stays.

Recylex published Friday sales for the second quarter increased significantly, from 32% to 125.34 million euros, supported by an increase of 48% of its business in recycling lead thanks to rising 16 % of lead prices and increased sales volumes.

Air Liquide. The gas giant reported Monday a 11% increase in net profit in the first half, to 750 million euros.It maintained its forecast a "steady increase" in net profit for the year.

Note that Gameloft will publish its interim results after market close, while Le Noble Age unveil at the same time state sales for the same period. The British bank HSBC, which is listed in Paris, finally published its results for the first six months of the year.

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EDF and Areva will strengthen their partnership

After months of tensions, the thaw begins between Areva and EDF. Luc Oursel, the president of the giant nuclear, will perform this afternoon its first official release by hosting one of its plants in Chalon-sur-Saone, the chairman of EDF Proglio. The symbol is more powerful than the two heavyweights of the team of France's nuclear plans to sign three agreements "technical and commercial." The information, which was unveiled by the Tribune was confirmed by the Minister of Industry, Eric Besson, who will also visit the website of Saône-et-Loire.

These agreements clarify the relationships that must maintain the two groups. They should focus on "the pursuit of optimizing the EPR, increased maintenance of the park" or "strengthening industrial cooperation on the storage of radioactive waste."

These agreements will be "historic in some ways," said Eric Besson on France Inter and will "ensure consistency throughout the French nuclear industry."

"A willingness to cooperate more»

A fourth agreement should include the development of medium-power reactor Atmea which EDF would not participate. The date of its signature was not specified by Eric Besson, but it should occur in September. Which will complete the strategic partnership, called by President Nicolas Sarkozy in July 2010.

According to the Tribune, other issues will be discussed later, as the organization of supply for export or supply in the long-term uranium for EDF. In the latter case, a stake of the electrician in the future subsidiary of Areva mines will be considered. The hypothesis is "neither foreseen nor ruled out," according to Eric Besson."There is a current subsidiary of the Areva mining activity that had been recorded and we will see who will enter the capital," he said.

The latter, however, said on France Inter does not "feel" at Henri Proglio will "particular" to enter the capital of Areva. "I feel from Proglio a willingness to cooperate more with Areva, what we today RECORDED agreements very important, but I do not feel particular pressure at home to enter the capital of Areva" said he.

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Germans advocate a nap at work

A small cultural revolution awaits German companies. In defiance of German prejudices about the South on suspicion of engaging in one guilty of "dolce vita" in numbing the Mediterranean sun, a leader of the German DGB trade union confederation considers that every German should have the right to take a nap on the workplace. "A siesta reduces the risk of heart attack and can replenish your energy," pleads Annelie Buntenbach, a member of the DGB executive committee and board of directors of the Employment Agency.

In a country facing the shock of the falling birth rate, the idea does not seem totally crazy to arrange an aging workforce. Especially a nap of half an hour would also increase efficiency at work payday advance lenders… and thus competitiveness."The midday rest time can compensate for poor performance and when the risk of accident is higher. Nap improves the efficiency, responsiveness and mood, "said Jürgen Zulley, professor of biology at the University of psychological Regensburg.

The debate arises when Angela Merkel said that Southern Europeans are less frequent at work than the Germans. A theory refuted by the OECD statistics, in which the average annual working hours of German (1390 hours) is less than that of a Greek (2119 hours).

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Greece: the banks would all be taxed

Europe is exploring all options to rescue Greece. Thus, the governments of the euro-area floor to the creation of a new tax credit to save the finances of Greece, according to the German daily Die Welt. This tax would apply to all institutions, even those who are "not directly involved in Greece," wrote the German newspaper, citing senior diplomatic sources, involved in the case.

And private sector rescue of Greece would not stop there. Banks will also be put to use to buy Greek bonds, Die Welt wrote, without giving details on the form that such involvement.

Inspiration German

The inspiration may have been drawn in Germany. The country will charge, this fall, a tax on the profits made by banks.The result of this tax into a fund that will support aid to financial institutions of the country considered strategic if next crisis. This tax should bring in less than a billion euros a year to the fund and should eventually have a volume of 70 billion euros. In detail, the large diversified institutions, like the first German bank Deutsche Bank, will pay more than small savings. The levy will be capped at 20% of net profit.

The question is whether this idea will be adopted at the Special Summit of the euro zone expected Thursday in Brussels. The bloc meet urgently to complete a new plan to help Athens. The International Monetary Fund will not participate in new rescue package for Greece, says Die Welt.According to the German newspaper, "many people have the IMF in ras-le-bol" and seriously doubted that Greece can carry out and the time-saving measures planned.

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The CAC 40 is depressed before the European meeting

The Paris market continues to fall on Thursday, a reflection of what has been observed in Asian markets this morning and the decline in U.S. indices yesterday. Wednesday evening, the Cac 40 lost 0.15% and ended at 3871.37 points in a very dynamic market, with over 7.1 billion traded on the benchmark index of the Paris Bourse. And on Thursday, the index still declined from 0.49% to 3852.48 points.

At the time of opening, the composite PMI, which includes industry and services, has returned to version 55.4 "flash" against 60.3 in May, reaching its lowest level since October. The growth of private sector activity in France has slowed more than expected in June.

European side, European leaders find themselves on Thursday night in Brussels at a summit to try to reassure their ability to stem the endless debt crisis in Greece and prevent contagion throughout the euro area, which worries more and more abroad. Other items on the agenda: the confirmation of the appointment in November of the Italian Mario Draghi as President of the ECB to replace Jean-Claude Trichet.

The publication of the memo on the economy of France, to be released at 22 o'clock tonight, will be watching. In addition, the G20 agricultural ends today. In addition, Christine Lagarde, a candidate for the general direction of the International Monetary Fund (IMF), spends his oral exam today in Washington.The maintenance of his rival, Mexico's Agustin Carstens, was held Tuesday.

United States, a report by the Congressional Budget Office (CBO) on Wednesday warned against an explosion of net public debt, which can reach 100% of GDP by 2021 if nothing is done to correct the current trajectory. In addition, the U.S. central bank is now focusing on a GDP increase of less than 3% in the fourth quarter. New measures could be considered if the economic situation deteriorated.

On the currency markets, the euro bends slightly from 0.20% to 1.4307 dollar.

EDF denies

The CAC 40, only Pernod Ricard rises in green: 0.06% to 66.49 euros. But in the SBF 120, Lagardère stands: 2.33% to 27.40 euros.Areva takes him 0.59% to 25.50 euros.

Side drops, banks suffer: -1.66% to 39.21 for SocGen, -1.51% to 10 instant credit report.10 euros and Credit Agricole -1.18% to 42.12 euros for BNP Paribas. European banks resisted, however, a defect in Greece, according to Bernard de Longevialle, head of bank ratings at Standard & Poor's. Note that BNP Paribas bought 25% of Findomestic to the bank Intesa Sanpaolo for 629 million euros and now holds 100%.

EDF (-0.52% to 25.96 euros), which plunged 3% yesterday s "ance, had to deny rumors of leaks in nuclear plants in France. The CGT has nevertheless confirmed that called for an end of a reactor at the plant in Seine-Maritime Paluel due to extraordinary levels of radioactivity. The electrician has admitted it yesterday "an accumulation of small differences" after the publication of an article Mediapart citing incidents in series.

In addition, the dean of French nuclear reactors, the central Fessenheim, would be allowed in the coming days to continue to operate for ten years.

EADS (-0.09% to 21.83 euros). The buyers of the Airbus A400M signed a framework agreement on the development and maintenance of the fleet of the future military transport aircraft. Furthermore, after signing an order for sixteen billion dollars with Indigo, negotiate with Airbus for 200 A320 AirAsia NEO.American Airlines could also favor the European aircraft manufacturer at the expense of its rival Boeing.

Air France-KLM lost 2.06% to 10.21 eruos.

Dassault Systemes (-2.74% to 56.15 euros, the largest decline rating) expects a double-digit increase in sales in the aerospace and defense between 2010 and 2014 thanks to the many innovations offered by these sectors, Reuters said Wednesday its chief executive Bernard Charles said in an interview.

Automobile manufacturers seek to diversify their income and increase customer loyalty.

Peugeot (-0.57% to 29.72 euros) PSA installed production capacity that should allow it to manufacture more than 30,000 hybrid vehicles per year, reports La Tribune. "At Sochaux, we expect a potential of 70 to 80 units per day," says Serge Isler, project 3008 Peugeot hybrid.In addition, PSA has manufactured in Rennes, Brittany, just over 15,000 Peugeot 508 equipped with the same technology, the paper said.

.

EADS is developing a successor to the Concorde

Paris rally in Tokyo in 2:30. It may be possible around 2050. EADS, the parent company of Airbus, has initiated studies to develop a prototype that physically resembles the Concorde, whose last commercial flights stopped in 2003. The engine of the aircraft of the future for business travel with a capacity of 50 to 100 seats, would at once to fly at high speed while being environmentally friendly, since its goal is zero tailpipe emissions. It will take at least ten years of development before considering the first test flight.

The project is called ZEHST through a partnership between EADS, ONERA, the French aerospace research lab as well as Japan. A feasibility study financed by the Directorate General of Civil Aviation (DGCA) and its counterpart Japanese, was launched.It is based on the initial results of research carried out by Astrium, a subsidiary of the giant European space aeronautics, as part of its program of sub-orbital aircraft, the Space plane.

Three types of engines

The unit will have three types of engines already on the market that will be used during different phases of flight: take-off up to 5000 meters with a turbo-jet close enough to those fitted to aircraft today, but "these engines will be powered by biofuels third generation developed from growing algae so clean," said Jean Botti, chief technology officer of EADS business card design. When climbing in altitude beyond 20,000 feet at 0.8 Mach, the unit will use cryogenic engines such as the Ariane launcher, powered by hydrogen.Then for the transition to its high speed (mach 4) and a very high altitude (32,000 meters) use ZEHST called Ramjet engines (now fitted to cruise missiles). A model is on display at Le Bourget.

Meanwhile, EADS is working on another concept known as Voltaire, an all-electric machine whose engine would not be placed under the wings but in the tail. The wings would obey the principle of morphing itself adapting to the different phases of flight, said Jean Botti in substance. The device is designed to make short trips with 50 to 70 passengers.

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ECB prepares to raise rates in July

As expected, the Governing Council of the European Central Bank, meeting Thursday in Frankfurt, has left unchanged its interest rates. However Jean-Claude Trichet sought to prepare the minds of an increase in July. "Overall, the risks to price stability are on the upside, and a strong vigilance is therefore warranted," said the president of the ECB at the press conference that followed. In the coded language of Frankfurt, a "strong vigilance" is the conventional signal to indicate a rate hike next month."Right now we still believe that the July increase will last (this year)," said Jonathan Loynes, however, the chief economist for Europe of Capital Economics.

Jean-Claude Trichet has not sought to exaggerate the danger of inflation: "The upward pressure on inflation (is) mainly due to energy prices and raw materials," he admitted. Markets have noted that the ECB had not raised its forecast of rising consumer prices for 2012, which remain in the range of 1.1% to 2.3%. This status quo, compared to previous estimates of last March, has contributed to a decline of the euro vis-à-vis the dollar.

In terms of economic growth forecasts have been revised slightly upwards for 2011 (from 1.5% to 2.3%), the range for 2012 is particularly large (between 0.6% and 2.8 %)."Uncertainty remains high," commented Jean-Claude Trichet installment payday loans.

No "default"

It was also expected on Greece, "after the procession of contradictory statements from finance ministers, who have unfortunately contributed to widen interest rate spreads on sovereign debt in the euro area in recent weeks," regrets a market economy. The ECB President was extremely strong. "It would be a great mistake" than engaging in a debt restructuring, "he insisted. "Our position is clear and we served on European governments" no "credit event", no "default". The ECB considers that Greece would be closed permanently while the financing markets.

"We exclude any participation of private creditors who would not volunteer (from them), he only conceded.He however refused to say what would the ECB on securities it has in its balance sheet (between 60 and 70 billion euros), if private investors decided to extend the maturity of their claims.

In a less dramatic, the college of 27 governors took action on the succession of its chairman, in the form of a statement. "The governors did not Councilof objectionable to the proposed candidate, Mario Draghi, who is a person of recognized standing and professional experience in monetary or banking matters."