Wolfgang Schäuble confirmed and signed. At the risk of alienating France and the ECB, the German Finance Minister said yesterday that "the time has come" to pay to banks and private investors holding the bag in the crisis of sovereign debt. "It's a question of moral responsibility, said the German official. Ultimately, investors – and that includes of course the European bond holders – must support both the risks and the benefits of their investment. In recent crises, it is almost exclusively the taxpayers who have borne the loss. This is unacceptable! "

The offensive seeks to convince partners of Germany, when the bloc about to lock a permanent mechanism for rescue of troubled countries. Joined the menu of the June EU summit, the European Stability Mechanism (SPM) should enter into operation in 2013.But in the midst of controversy over a possible debt forgiveness in favor of Athens, Wolfgang Schäuble furbishes also the weapons of those who argue that the creditor banks should immediately take their share of the burden.

Market Discipline

The replica of the European Central Bank did not take long. The chief economist Juergen Stark has denounced as a "catastrophe" scenario of a debt restructuring Greek. It would cause, he said, "collapse" of the economy and banking system in the country. Across the eurozone, it would complicate the use of borrowing for other troubled countries. It would kill the plans in the bud "adjustment" set up for Ireland and Portugal. For Vice-President of the ECB's Vitor Constancio, "The debt restructuring should remain what it is, a final and last resort."

France, she is sticking to its position."It is beyond question, be it restructuring, rescheduling or debt reprofiling, Tuesday assured Christine Lagarde. The only issue at stake is the determination of Greece to implement the program, "austerity negotiated with the EU, the IMF and the ECB.

Expected at the forum yesterday in Brussels, the French minister was canceled. We need more to convince markets that the succession process rigor imposed on Greece, Ireland and Portugal may succeed.

"The political risk of alienating voters'

Deutsche Bank expects a debt forgiveness of 50% to allow Greece to start on a sound footing. "Nobody can argue that Europe now has a satisfactory system rescue, said its chief economist Thomas Mayer.Banks should, too, suffer the discipline of the market and fail if necessary "under the weight of bad loans.

Wolfgang Schäuble added to demonstrate a political argument to deflect the rise of populism. "To constantly refloat private investors, policy makers may simply alienate European voters. It's not for nothing that the EU institutions are perceived as distant, technocratic and locked in a world of impenetrable jargon and insider trading. "To constantly refloat private investors, policymakers may s alienate voters in Europe … "

ALSO READ:

»COMPUTER GRAPHICS – These figures make the misfortune of the Greeks

The alleged sexual assault case that led to the arrest of Dominique Strauss-Kahn is also a blow to the institution he heads the International Monetary Fund (IMF). "It will inevitably tarnish the image of the institution, which, however, by the voice of its director general had managed during and through the crisis, to find a proper place in the regulation of globalization and stand at the heart of international monetary system, "said Hassim Mounis, professor at Sciences Politiques in Paris.

"Dominique Strauss-Kahn is a Managing Director of IMF that will be remembered most," says the economist. "It will mark the spirits because he has temporarily disrupted the guidance of the IMF's role by requiring the state to support the economy, which is in total contradiction with the previous liberal policy of the institution," said it.DSK is known to have handled the economic crisis and financial crisis by bringing a Keynesian response … measured, however: in the emblematic case of Greece, the IMF forced the government to drastically reduce public spending and operate a process of privatization.

Greece precisely, it ensures that the events that challenge the IMF does not change the government program to revive the economy. "The government is pursuing reforms resquises by the Fund," said George Petalotis Sunday, his spokesman. DSK would have had to go in Berlin on Sunday and meet Angela Merkel to discuss a possible new aid to Greece, who won the spring of 2010, with 110 billion euros, 30 billion from the IMF.This meeting was to take place on the eve of the convening of a Eurogroup these Monday night and Tuesday in Brussels, with the main discussions at the agenda of the financial problems that resurface Greece for several days and that plague markets . A spokesman of the Eurogroup, however, that the IMF will be shown no matter what happens.

The IMF meanwhile assured that it remains "fully functional and operational low fee payday advance." The Washington-based institution to ensure and maintain its role in the issue of European sovereign debt. "It seems impossible that the case could impact the DSK button timing and responsablités IMF, the stakes are too great," says an economist based in Paris.There was a pre-DSK IMF, there may be an after-DSK.

Who might succeed him at the IMF?

Since Bretton Woods in 1944, which devoted a share of the world between Europe and America, the custom was established to appoint a European to head the IMF and an American to head the Bank World. But in recent years, global economic governance has, too, internationalized: emerging countries like China and Brazil now have a bigger role, like the G7 became the G8 and G20.

Dominique Strauss-Kahn, who became the tenth Executive Director of the IMF on 1 November 2007, has himself advocated the continuation of the reform of the institution, and wanted a person from a country emerging for the successor to head the IMF . But the events that shook the Fund could also shake up the program.If DSK had to leave the branch, a new early election should take place. The voices, weighted by the amount of quotas, have been reallocated on March 3 after a major reform of the representation of the 187 IMF member countries. The reform has enabled the transfer of 6% of the votes of over-represented countries to benefit from emerging countries.

"DSK is a former economics professor and renowned former Minister of Economy and Finance. He has a real economic role at the operational level to the IMF. In France, too, has played its role, "insists Mounis Hassim, comparing his skills to those of Raymond Barre. Under Jospin, DSK, then Minister of Economy (1997-1999), had participated in the launch of the euro.

ALSO READ:

How Strauss-Kahn irritates the Greeks

The IMF considers the debt of Greece "sustainable"

The markets took fright on Friday night after a new European cacophony. Greece had threatened to leave the euro in discussions with the European Commission, reports the website of German magazine Der Spiegel quoted a government source in Berlin. The major European capitals have refuted this information.

"These items are a challenge, undermine the effort of Greece and the euro and serve speculative games," said the Greek finance ministry said in a statement. "The assumption of an outflow of Greece to the euro area is completely fanciful", has also assured Bercy.

Despite denials by the French, German and Greek, the single currency accelerated its decline against the dollar. Friday night shortly before 22:30, the euro lost nearly 1.4% to 1.4338 dollar. Rumor sign a new stage, and this information is disturbing.It is not surprising that the euro will weaken, "said one analyst at a U.S. bank. At the same time, the cost of insurance against a collapse of the Greek debt ("Credit default swaps, or CDS) jumped from 74 basis points to a record 1,370 basis points, according to Markit.

Meeting in Luxembourg

An emergency meeting was held between some finance ministers from the eurozone. The president of the Eurogroup Jean-Claude Juncker, has denied that a meeting devoted exclusively to Greece took place. Still, according to Reuters, the German Finance Minister Wolfgang Schäuble and his Minister Jörg Assmussen are in Luxembourg for a meeting. These discussions would focus on topics such as Portugal, Greece or the succession to the head of the European Central Bank (ECB), but "nothing more," said a source in the euro area to the agency Press.

Contradictory statements agitate the euro area in recent weeks about a possible debt restructuring Greek. Lars Feld, one of economic advisers to Angela Merkel, considered by example on Sunday that the restructuring is "the only way forward so that Greece is a little relieved that creditors and help to solve the Greek problem." The ECB president Jean-Claude Trichet, for his part flatly denied Thursday that event.

Keeping promises cons of VAT at 5.5%. Two years after signing a first contract between the restaurant and the government, and a mixed picture, professionals have made new commitments for the next four years.

Unsurprisingly, efforts will focus on employment. At the meeting held Thursday with the government, restaurateurs have promised to create 20,000 jobs annually by July 2015, or 80,000 jobs. They also pledged to improve learning and increase their investment of 25% to bring it to 5 billion euros in four years. Objectives labeled as "ambitious" by the Secretary of State for Consumer Affairs, Frederic Lefebvre, yet precarious.Conservators have warned the Government that a return to the VAT increase beyond 5.5% would free them of these obligations.

Consumers should not expect however to reap the benefits of lower taxation credit reports free. Conservators have preferred to remain cautious on this point for fear of receiving new criticism. Last year, the Court of Auditors had indeed criticized the lack of repercussions on the tax benefit customers. According to his calculations the dividend would have been only 2.15% instead of the 3% expected.

On Monday, the Organization for Economic Cooperation and Development (OECD) has decided against another reduced rate of VAT. In his report on France, "the application of standard VAT rates to expenditures for maintenance and renovation" for housing, ie 19.6% and not 5.5% as at present.

ALSO READ:

"The restaurateurs agree to create jobs

"Renovation: more than 5.5% VAT (OECD)

At the critical moment of crossover holiday in February, about 30,000 passengers were affected by an act of vandalism on a line in the Alps, the SNCF said. "A malicious act has been committed so far (…) near Albertville. Cables were severed with a saw, seriously disrupting traffic in the Tarentaise valley, "SNCF said in a statement.

The railway line was repaired vandalized at 18h, allowing trains stuck between Bourg-Saint-Maurice Chambery and recovering gradually, said the station and the prefecture of Savoy. "The trains leave the circulation is restored," said the chief of staff of the Prefect of Savoy, Xavier Idier.Shortly before 19h, no more train was stuck in the Tarentaise valley, but 400 to 500 passengers were still in the station of Albertville, 400 to 500 in one of Moutiers, and from 1000 to 1500 passengers waiting to leave Bourg-Saint Maurice. "The incident is closed," confirmed a spokeswoman for regional station, explains that the movement was "slowly" resumed.

"Sabotage"

"Being a weekend announced long as particularly responsible, SNCF deplores and strongly condemns this new act of malice, which resembles a form of sabotage."A term by the Minister of Transport Thierry Mariani: "If it turns out to sabotage it, I hope that justice will be exemplary rigor, because tens of thousands of passengers, dozens of thousands of families will undergo five hours, six hours, seven hours late because of some thugs, "he said.

"An investigation is underway," said SNCF. "Three cables, signal and power were cut" in the morning on-line Chambery Bourg-Saint-Maurice, extremely busy this time of return and departure on vacation, said a spokeswoman for the Regional SNCF. In early afternoon, repairs were still ongoing. The return to normalcy is not expected until the evening.

A period of very heavy traffic

"Until 13:30, twenty trains were affected.The problem is that we are in times of high traffic, "she said. Delays of between three and five hours are expected. The incident occurred in full crossover vacationers and skiers of different areas of school holidays.

"My TER was to leave at 11 am from Bourg-Saint-Maurice left with thirty minutes late. The train was then locked one hour, "says an AFP journalist stuck in a train to Lyon, with no information on the time that his train will arrive. "The TER is full. All vacationers who are descended from Tignes and other stations are mounted in Bourg-Saint-Maurice. There are plenty of people who will miss their connecting flight to Paris or Toulon …», he concludes philosophically.

SNCF evokes an act of vandalism, not theft.Society is increasingly faced with flight cables, particularly copper, which have doubled with the soaring prices, causing delays for trains. In September 2010, SNCF counted forty flights per week cable and assessed his damages at several million euros.

More information about delays here.

(With AFP)

ALSO READ:

"Rhone-Alps: traffic jams holidays

"The SNCF, the main victim of metal theft

It is time for calm in Italy. The automaker Fiat has confirmed that Saturday's willingness to invest 20 billion euros into the country, the government said in a statement following a meeting between the president and managing director of Fiat, John Elkann and Sergio Marchionne , and Silvio Berlusconi.

Fiat has "confirmed the government's intention to pursue development objectives of the group, which forecast an increase of production in this country of 650,000 to 1.4 million cars a year, a goal supported by an investment of about $ 20 billion euros, "the statement said.The government was ready for its part, to help Fiat to develop in "the best conditions for competitiveness."

The meeting, also attended the Italian ministers of Economy and Industry, and officials of the Piedmont where the headquarters of the manufacturer, was intended to calm the anxiety provoked by the statements of the Sergio Marchionne about a possible tie-Chrysler Fiat. "Fiat and Chrysler? In the next two or three years we can see a single entity. It could be based here in the U.S., "he had launched in last weekend during a visit to San Francisco.

Headquarters, the debate could resurface in 2014

Fiat now owns 25% stake in Chrysler and the two partners hope to produce 6 million vehicles in 2014, against less than 4 million now installment payday loans.The possibility of a merger had already been considered. But the evocation of a head office based in the United States has created a chill in Italy, forcing the CEO of the manufacturer to return immediately to his remarks. By phone, he assured the Minister Maurizio Sacconi of Labor that no transfer of headquarters was expected "either today or tomorrow." He reiterated that the hypotheses only referred to "possible future scenarios."

To dispel any misunderstanding, the Fiat management has, however, of clarifying strategies with government and local authorities on Saturday. "All the controversies are now closed," then found Paolo Romani, the Minister of Industry. "Fiat is a big multinational that grows in the world but still with a heart of Italy." The mayor of Turin Sergio Chiamparino, was more cautious.He said Fiat had confirmed its "Italian character" but "in a changing dynamic that requires daily work to ensure that this does not change." In fact, as the president of the province of Turin, Antonio Saitta, the conditions that the city remains the headquarters of the group "will be discussed in 2014."

(With AFP)

ALSO READ:

"The Fiat-Chrysler merger puts Italy in turmoil

"Fiat splits to achieve its ambitions

The euphoria of the excellent results posted by Hermes and LVMH seems to have appeased the spirits. Both groups are waging a war of trenches since Oct. 23, when LVMH reported holding more than 17% stake in Hermes, a stake raised to 20.21% since.

"I think we must stop this war," confided Thursday Patrick Thomas, the manager of Hermes, in Challenges. "Our investment is very peaceful and aims to be a movement of family support and strategy," insisted Friday Bernard Arnault, boss of LVMH. The latter is certainly still make its voice heard. "We are a shareholder peaceful but not passive, he warns.We want to be an active shareholder, but we will not be a shareholder activist. "The tone is less virulent than early November, when Thomas and Patrick Bertrand Puech summoned Bernard Arnault to" withdraw "and that it involved the management Patrick Thomas.

In recent weeks, the highest state authorities, concerned about the image of the Paris, had recommended the two parties to stop s'invectiver, until the courts decide their disputes. First, the AMF investigation for several more months, the conditions of the rise of LVMH capital of Hermes.On the other hand, the Court of Appeal of Paris will decide, earlier this summer, the exemption granted by the AMF to the heirs of the family Hermes, who want to establish a holding company owning more than 50% stake in saddle without launching a takeover bid on all the securities thereof.

In the meantime, both parties might have an interest to enter into discussions to find a modus vivendi. " Especially as the heirs Hermes and LVMH ensure all be present in the capital of Hermes for "the very long term." Officially, no negotiation is involved. But according to our information, contacts were made between LVMH and Hermes for ten days, bankers and lawyers interposed boards. And slopes are emerging, which could foreshadow a possible common ground.

Possible partnerships

Hermes side, Patrick Thomas is concerned about the narrowness of the floating action of cowhide.LVMH has acquired 20% stake, the family controlling 73%, the balance of securities on the market is too small for the other shareholders receive a quality market. He gave an indication Thursday that he believed "would float of 15%."

This certainly implies that LVMH reduces by 20% to 15% its stake. But nothing would prevent the group to stand next purchaser of the securities that the heirs would eventually Hermes in the market. Each year, there may be an "erosion" of a few tenths of a percentage point of their participation, according to individual needs. For his part, Bernard Arnault LVMH proposed yesterday that could "make a number of benefits at strategic and operational, without further consideration that our current involvement."Hermes and LVMH could therefore build partnerships that would not touch the heart of their identities, such as real estate or buying advertising space. The views are far apart, but the groundwork for a possible dialogue are asked.

While the idea of a simple adjustment of tax on capital is booming, including the Department of Budget, the total suppression of his supporters do not disarm. "If we want to recover the competitiveness of France, we must rid this stupid tax," said Michel Piron, the UMP behind this fall, an amendment – Retoque – ISF and eliminating tax shield. "Correct the ISF is to create a gas plant," said Jean Arthuis, president of the centrist Senate Finance Committee. The two MPs have the opportunity to defend their point of view tonight at the weekly meeting of the Working Group during which Baroin present to elect a majority of the tax study heritage in Europe.

Cap cap

The fund, the ISF raises two major economic problems.At the bottom of the scale, it hits the upper middle classes caught by the housing boom. To solve this handicap, the tracks are not lacking among the principal residence exemption and deleting the first tranche of ISF (790 000 to 1,290,000 euros of assets). At the other end of the chain, the TFR is confiscatory. Households in the last installment (more than 16.5 million property) have their assets taxed at 1.8%, while these assets relate to their best, when it comes to good financial investments, 4 % per annum. "It's what drives so many French very fortunate to leave for Switzerland," says Philippe Bruneau, president of the Circle of tax practitioners.

Aware of this mess, and while the tax shield will disappear, Gilles Carrez, the rapporteur UMP budget to the Assembly, proposed as a solution to increase the cap of the ISF.Today, the sum of the ISF, the tax on income and payroll taxes must not exceed 85% of the income of the debtor. It is therefore a kind of shield, but only reduces the bill ISF (and not that of all taxes). Especially since 1996 and the Juppe government, the cap itself is limited: it can not reduce by more than 50% to pay the ISF.

Gilles Carrez proposes to reduce the cap to 70% of revenue and eliminate the "cap on cap. An idea that Baroin seen favorably. "The tax exiles began with the cap ceiling Juppe. Ending it would be a good thing. But this is not enough. It should also reduce the rate of ISF, "said Philippe Bruneau. Or remove the tax on capital.

The executive has not decided. And the advocates of simple deletion of the ISF have support.Christine Lagarde, Minister of Economy, argued Monday in The Tribune for a "simple, so pretty radical."

Even if Mark Zuckerberg pledged to bequeath half his fortune to the charitable foundation, Bill Gates, Facebook is not ready to become a philanthropic enterprise. The message to that effect, left Tuesday on top of its founder, was none other than the work of a hacker revealed by the site gizmodo.fr.

"If Facebook needs money, instead of going to the banks, why Facebook does not allow it to invest in Facebook users of social order? Why not turn Facebook into a 'social business' as defined at the Nobel Prize Muhammad Yunus? What do you think? ". When the social network raises huge sums from banks, this strategic change on the page mentioned by Mark Zuckerberg was surprising many observers.

Wall Street alert

The message had a finite life has still provoked the reaction of 1800 users after just three minutes. And the news was able to shake Wall Street. In fact, the company valued at nearly $ 50 billion is the object of desire, bank Goldman Sachs to venture capital firms.

An IPO of the new star of the Web expected in 2012, widely reported in the press, is also seen as a way to boost markets. Moreover, with its 500 million adherents and status of prescriber, the social network could lead other companies in its conversion to philanthropy. In short, investors would not digested the goose that lays the golden egg migrates to the works or social causes.

Since the "incident", the message and the many comments were deleted.The social network has also decided to strengthen its security: it now offers a secure HTTPS connection from end to end. It should be noted that combines Facebook hackers in recent days. The Facebook page of Nicolas Sarkozy has been hacked twice this week. A forger suggested the president's facebook page that he did not intend to run again in 2012.

ALSO READ:

"Zuckerberg generous billionaire

"Facebook would be worth $ 50 billion

"Rush investors on Facebook

"Facebook raised $ 1.5 billion

Like every year, Proxinvest publishes its figures, highly anticipated, the compensation of executives of major French companies. Data that still raise debates about the value of work: on average, bosses (CEOs) of the CAC 40 have received a total remuneration (fixed and variable pay, stock options and shares) which in 2009 amounted to some 3.1 million euros. "This is 211 times the minimum wage, compared Pierre-Henri Leroy, the director general of the cabinet.On the SBF 120 (the index of the Bourse de Paris which has the 120 largest companies listed), the average $ 2.1 million.

The study emphasizes that Proxinvest for CEOs of the CAC 40, the average total compensation down 14% (-20% at constant sample) with a stable center, this after two years of declining average higher by 25% in 2008 and 17% in 2007, while the other leaders of the SBF 120 have seen them, their earnings eroded by 14% in 2009 after already 17% decline in 2008 payday advances. "This reflects some of these exemplary patterns" said Pierre-Henri Leroy.

Where does this new downturn? It is primarily the part that weighs shareholder: staffing options and restricted stock was reduced by an average of 46%.The share of wages fixed, variable, and "incidental" in the total amount received by the CEOs are still reinforces the CAC 40: 54% in 2007 to 6% in 2008 and 76% for 2009, and to the SBF 120 (excluding CAC 40) of 56% in 2007 to 64% in 2008 and 72% in 2009.

Carlos Ghosn in the crosshairs

Carlos Ghosn, CEO of Renault has reached over 8 million euros. Photo credits: MIGUEL MEDINA / AFP