EC PRESIDENT CALLS URGENT MEETING FOR TOMORROW #2

Monti"s honeymoon is over in Italy , he cannot get Politicians to agree a Cabinet.

Germany and France scrape through their growth forecasts

The Eurozone is not very popular at the moment for Investors , Italy Spain and France considered suspect.

Deeply divided

The 68-year-old Mr Monti needs a newly appointed government to pass a
confidence vote in parliament, expected as soon as this week.

All parties agree on a predominantly technocratic rather than political
government but the centre-right PD party remains divided towards Mr Monti, who
has said he intends to remain in office until the end of the current legislature
- 2013.

Fabrizio Cicchitto, a senior PDL politician, said his party would take a
"constructive approach as long as there is debate on the policy proposals and on
the government's structure".

"We won't agree to anything in the dark," he added.

The leader of the right-wing Northern League party - whose withdrawal of
support from Mr Berlusconi's coalition helped precipitate his downfall - has
said he will not attend any meetings with Mr Monti, La Repubblica reports.

Umberto Bossi has said he will not support any newly named government in a
confidence vote and will only back measures passed on a "case-by-case" basis,
the newspaper says.

Nevertheless, Mr Monti described Monday's initial talks as "constructive",
adding: "the political powers are conscious that we must have a period of calm
to allow us to move forward with a sense of responsibility and cohesion".


Junk Bond status has been given to Italy"s E2.6 trillion debt.

Eurozone Economic Growth On A Knife-Edge

• 7 Comments
  
• 
  
• 
  
• 
  

11:34am UK, Tuesday November 15, 2011





There have been encouraging signs of economic growth in the
eurozone's top two economies but the markets fear the debt crisis will
take its toll by the year's end.


In the latest official GDP figures for the third quarter, Germany's
economy - Europe's biggest - was found to have grown by 0.5%,
essentially matching the UK's figure.


The German performance was driven by strong domestic demand and improved consumer spending.


Second quarter growth was revised upwards from 0.1% to 0.3%.


Germany had been particularly badly hit by disruption to its
manufacturing base and export markets by the earthquake and tsunami in
Japan earlier this year.


France's economy grew by 0.4% quarter-on-quarter in the third quarter
following a revised contraction of 0.1% in the previous three months.










There is renewed concern for the French economy despite existing growth





It means the country avoids a technical recession.


A rebound in private consumption is being credited for the growth but this was mainly related to higher energy and water usage.


Analysts have been left particularly unimpressed by the French figures.


Joost Beaumont of ABN Amro said: "It is likely that this will have
been the last bright spot for a while. We expect the economy to shrink
in the coming quarters.


"The escalation of the sovereign debt crisis will increasingly affect
confidence and activity, inducing consumers and companies to hit the
brakes."


When the eurozone's GDP figures are taken as a whole, there is slender growth of 0.2%for the third quarter.


The Greek economy contracted by 7.3% in the second quarter and by
5.2% in the last quarter while we learned yesterday that Portugal's
recession had deepened.


The eurozone country - the third to be bailed out by the EU and IMF - saw negative economic growth of 0.4% in the third quarter.


The concerns being played out on the markets have largely hit Italy and Spain's borrowing costs.


Italy's 10 year debt yield has once again hit 7% - the figure seen as the mark for a country in need of a financial bailout.


Spain's notched up to 6.3%.


Martin Wolf, the chief economics commentator for the Financial Times
told Sky's Jeff Randall Live he believed the debt crisis had reached a
critical moment.


He said: "Everything's got worse and we're going to have to see
whether they are prepared to take the actions on both sides, the
creditors and debtors, to haul above all Italy and Spain back from the
brink."


Italy's prime minister-designate Mario Monti is spending a second day
preparing a cabinet to tackle the debt crisis following the resignation
of Silvio Berlusconi.


On Monday, the country sold five year bonds at a record rate,
signalling a lack of confidence in Italy's ability to escape its
perilous debt mountain.


Should the eurozone's third largest economy fail, the expectation is
that rescue mechanisms would struggle to cope under Italy's weight.


If Italy was to default, the prospect of Spain being next in line for
financial help is seen by most experts as a crisis too big for the
eurozone to handle.

European stocks decline as Spanish Bonds sold this morning show higher yield.

Monti, the new Italian Prime Minister is trying to form a Government which will have a majority. If the new Government lasts until 2013 some
measures taken might take the pressure off Italy.Much depends on the Italian Parliament putting away their egos and working with Monti .

Merkel clashes with Cameron over taxes and the breach in the EU widens.

Eurozone Countries 'On A Knife-Edge'

• 17 Comments
  
• 
  
• 
  

1:57pm UK, Tuesday November 15, 2011


There have been encouraging signs of economic growth in the eurozone's top
two economies but the markets fear the debt crisis will take its toll by the
year's end.


In the latest official GDP figures for the third quarter, Germany's economy -
Europe's biggest - was found to have grown by 0.5%, essentially matching the
UK's figure.

The German performance was driven by strong domestic demand and improved
consumer spending.

Second quarter growth was revised upwards from 0.1% to 0.3%.

Germany had been particularly badly hit by disruption to its manufacturing
base and export markets by the earthquake and tsunami in Japan earlier this
year.

France's economy grew by 0.4% quarter-on-quarter in the third quarter
following a revised contraction of 0.1% in the previous three months.


There is renewed concern for the French economy despite
existing growth



It means the country avoids a technical recession.

A rebound in private consumption is being credited for the growth but this
was mainly related to higher energy and water usage.

Analysts have been left particularly unimpressed by the French figures.

Joost Beaumont of ABN Amro said: "It is likely that this will have been the
last bright spot for a while. We expect the economy to shrink in the coming
quarters.

"The escalation of the sovereign debt crisis will increasingly affect
confidence and activity, inducing consumers and companies to hit the
brakes."

When the eurozone's GDP figures are taken as a whole, there is slender growth
of 0.2%for the third quarter.

The Greek economy contracted by 7.3% in the second quarter and by 5.2% in the
last quarter while we learned yesterday that Portugal's recession had
deepened.

The eurozone country - the third to be bailed out by the EU and IMF - saw
negative economic growth of 0.4% in the third quarter.


Italy and Spain's 10 year debt yields have been creeping
upwards



The concerns being played out on the markets have largely hit Italy and
Spain's borrowing costs.

Italy's 10 year debt yield has once again hit 7% - the figure seen as the
mark for a country in need of a financial bailout.

Spain's notched up to 6.3%.

Martin Wolf, the chief economics commentator for the Financial Times told
Sky's Jeff Randall Live he believed the debt crisis had reached a critical
moment.

He said: "Everything's got worse and we're going to have to see whether they
are prepared to take the actions on both sides, the creditors and debtors, to
haul above all Italy and Spain back from the brink."

Italy's prime minister-designate Mario Monti is spending a second day
preparing a cabinet to tackle the debt crisis following the resignation of
Silvio Berlusconi.




On Monday, the country sold five year bonds at a record rate, signalling a
lack of confidence in Italy's ability to escape its perilous debt mountain.

Should the eurozone's third largest economy fail, the expectation is that
rescue mechanisms would struggle to cope under Italy's weight.

If Italy was to default, the prospect of Spain being next in line for
financial help is seen by most experts as a crisis too big for the eurozone to
handle.

The Spanish Government failed to raise the funds it wanted to at a bond
auction early Tuesday.

This weekend's general election is expected to result in the opposition
Conservatives coming to power.

Posted by: No.1 Chauffeur on November 15, 2011 11:55 AM

The
EU is still paying British farmers to grow nothing! yet driving through
France you can not see any land that is not being used! The Chinese
demand for food is huge and we could be filling part of that gap insted
of just growing weeds. The EU do this to keep prices high on Food! Time
one thinks that the party is over and its now time to leave!

• Recommend (18)
  

This is the worst thing the EU decided and Britain agreed to, We had a thriving Farming industry and now we have to import so much food

of an inferior quality and lost so many Farmers, the younger ones renting land in Russia ......the Government ought to hang it"s head in shame
for the way it acquieced to the Rules imposed on us.

Italy crisis: Debt cost puts pressure on Mario Monti

Comments (256)



Mario Monti: "A future of dignity and hope" for Italy's
children

Continue
reading the main story
Global
Economy

• What's the matter with Italy?
  
• How might Greece leave the euro?
  
• Eurozone crisis explained
  
• Euro deal at a glance
  

Italy's cost of borrowing has risen
again to the 7% danger level, putting the new PM Mario Monti under pressure as
he works to form a government.

The figure indicates continuing nervousness about the country's high level of
debt.

Mr Monti, 68, got the backing of both main parties during talks on
Tuesday.

He is putting together a government led by technocrats, but it must still
have parliament's support to push through tougher austerity measures.

Mr Monti has also met representatives of industrialists, trade unions and
youth and women's groups.

The office of the Italian President, Giorgio Napolitano, said Mr Monti had
succeeded in forming a new government.

Mr Monti is expected to meet the president and name his cabinet on
Wednesday.

It is not clear if his cabinet will include politicians or consist entirely
of technocrats such as himself.

Only one party, the right-wing Northern League, says it will withhold its
support.

Angelino Alfano, leader of the centre-right People of Freedom Party (PDL) of
outgoing PM Silvio Berlusconi, said "we think that the efforts of Professor
Monti are destined to have a good outcome".
Continue reading the main story
Analysis


Alan Johnston BBC News,
Rome

---

Crucially, the largest faction, the PDL - loyal to Silvio Berlusconi - has
backed the Monti plan.

Mr Berlusconi continues to wield considerable influence in both houses of
parliament. And rather ominously for Mr Monti, he is reported as having said
that he may decide to "pull the plug" if he does not like what the new
administration does.

But for now - and at least in public - the left, the centre and much of the
right of the political spectrum here is going along with idea of installing what
will be an unelected prime minister.

It is still not clear whether the new ministerial team will be made up solely
of technocrats, or will include politicians as well.

Mr Monti is expected to present both his cabinet and his programme for
government to parliament by the end of the week. And he will only be able to
begin his work once it endorses both.

He has talked about the nation needing to be prepared to make sacrifices. And
if he does intend to drive through a major, painful austerity programme it will
be important for him to be able to show that he has substantial backing in
parliament.

• What can technocrats achieve?
  
• Profile: Mario
  Monti
  

And the leader of the centre-left Democratic Party (PD),
Pier Luigi Bersani, said "we encouraged Professor Monti to go ahead with
determination".

"We did not set a deadline to the government," he added.
Sense of urgency
Mr Monti, an unelected technocrat and former EU commissioner, has said he
will "act with urgency" to address Italy's deep-rooted economic problems.

He also intends to remain in office until the end of the current legislature
- 2013.

He has not yet revealed details of the economic reforms he might try to
implement.

He was appointed on Sunday after emergency austerity measures were passed by
parliament, triggering the resignation of Mr Berlusconi.

The Italian bond rate reached a record of 7.48% last Wednesday, draining
investor confidence and hastening Mr Berlusconi's departure. Lenders worry that
the government may not repay its debts.

In what was seen as the first test of Mr Monti's leadership, Italy sold 3bn
euros of new five-year bonds on Monday.

However, it had to pay more to borrow the money, a rate of 6.29%.

Now it is above 7% again - the rate at which Greece, Ireland and Portugal
were obliged to seek emergency bailouts from the EU.

Over the weekend, parliament passed a package of austerity measures demanded
by the EU with the aim of balancing the budget by 2014. The measures foresee
59.8bn euros in savings, from a mixture of spending cuts and tax rises.

November 2011 Last updated at 04:36
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Mario Monti to unveil new Italy government

Mr Monti has managed to pull
together a government in just two days
Continue
reading the main story
Global
Economy

• What's the matter with Italy?
  
• How might Greece leave the euro?
  
• Eurozone crisis explained
  
• Euro deal at a glance
  

Italy's new government is to be
unveiled after two days of intense negotiations by Prime Minister-designate
Mario Monti.

Mr Monti is to meet President Giorgio Napolitano to formally tell him that a
government can be formed.

He will go with a list of cabinet ministers, expected to be technocrats,
already drawn up, Italian media report.

Mr Monti has sought to reassure markets that Italy will make sacrifices to
overcome its debt crisis.

"I would like to confirm right now my absolute serenity and conviction in our
country's ability to overcome this difficult phase," Mr Monti told journalists
late on Tuesday, after meeting with political parties, unions and employers.


He declined to give details on the make-up of his government but said: "I can
reassure you that in the next few hours, I will fine-tune precisely the various
aspects of a well-defined picture, and that tomorrow morning I will be able to
present the conclusions of this work to the president."

Mr Monti has been under pressure to put together a government that can cut
down Italy's 1.9tn euros ($2.6tn; £1.6tn) of public debt and restore economic
growth.

Italy's cost of borrowing rose again past 7% during trading on Tuesday amid
ongoing nervousness about its high level of debt.
Continue reading the main story
Analysis


Alan Johnston BBC News,
Rome

---

Crucially, the largest faction, the PDL - loyal to Silvio Berlusconi - has
backed the Monti plan.

Mr Berlusconi continues to wield considerable influence in both houses of
parliament. And rather ominously for Mr Monti, he is reported as having said
that he may decide to "pull the plug" if he does not like what the new
administration does.

But for now - and at least in public - the left, the centre and much of the
right of the political spectrum here is going along with idea of installing what
will be an unelected prime minister.

It is still not clear whether the new ministerial team will be made up solely
of technocrats, or will include politicians as well.

Mr Monti is expected to present both his cabinet and his programme for
government to parliament by the end of the week. And he will only be able to
begin his work once it endorses both.

He has talked about the nation needing to be prepared to make sacrifices. And
if he does intend to drive through a major, painful austerity programme it will
be important for him to be able to show that he has substantial backing in
parliament.

• What can technocrats achieve?
  
• Profile: Mario
  Monti
  

Mr Monti has the backing of the main political parties
but he still needs approval from both houses of parliament before he can take
office and push through tougher austerity measures.

It is not clear if his cabinet will include politicians or consist entirely
of technocrats such as himself.

Only one party, the right-wing Northern League, says it will withhold its
support.

Mr Monti, a former EU commissioner, has said he will "act with urgency" to
address Italy's deep-rooted economic problems.

He also intends to remain in office until the end of the current legislature
- 2013.

But he has not yet revealed details of the economic reforms he might try to
implement.

He was appointed on Sunday after emergency austerity measures were passed by
parliament and former Prime Minister Silvio Berlusconi resigned, having lost his
parliamentary majority last week.

Sensing continuing uncertainty, bond traders drove Italy's cost of borrowing
past 7% again on Tuesday, the level at which Greece, Ireland and Portugal were
forced to accept bailouts.

The Italian bond rate reached a record of 7.48% last week, draining investor
confidence and hastening Mr Berlusconi's departure.

Italian Bond 10 yr selling for 6.98% Spanish 6.3%.

Monti is to meet President this morning to advise on measures he will take. It is rumoured he will act as Finance Minister and well as Prime Minister because he is very experienced. He will name his Government and hope that common sense prevails and he is given time to
implement changes .

Euro weakens for 3rd Day.

There is concern that Holland and Finland are caught up in the contagion, their Bond sales yield has increased for the first time.

Barclays Capital analyst says while bond purchases are helpful . Countries must play their part by introducing austerity measures.

Barosso says there is no way out of recession without growth.

To be honest I don"t think anyone really knows what to do and maybe instead of increasing the Country"s debt by buying their bonds they
should let these Countries default. survey suggests Euro is overvalued by 53% and 72% expect recession.

Athens, Greece (CNN) -- The new Greek prime minister, Lucas
Papademos, faces a vote of confidence in Parliament on Wednesday, following his
appointment to replace George Papandreou.

Papandreou quit last week, forced out by public anger at the budget cuts he
was pushing through to get international funds to pay his country's debts.

Fears that Greece might default caused shock waves through the European and
American banking systems and sent stock markets on a wild ride that at times
wiped billions of dollars of value out of existence.

Papademos, a former banker and European Central Bank vice president, became
his country's interim prime minister Friday after several days of political
wrangling.






Greece swears in new prime
minister






Europe's moment of truth over
eurozone






Positive reaction to Greece's
new PM






Fed provides no lifeline for
ECB

Dozens of lawmakers spoke Wednesday before Papademos gave a closing speech to
Parliament, ahead of the vote taking place.

Under a motion of confidence, lawmakers signal to the head of state whether
the government has the support of Parliament. A loss typically results in the
government's dissolution and the holding of a general election, unless the head
of state asks someone with more support to form a government.

Papademos is expected to survive the vote, since the new national unity
government has the approval of Greece's main parties, but he has a tough job
ahead in implementing unpopular reforms before elections due in about three
months' time.

Papademos told Parliament on Monday that staying in the eurozone "is the only
choice" as his country seeks to avoid default.

Papademos said his government's main task will be to implement a bailout
package brokered on October 26.

He cited "a crisis of trust" among the country's European allies about
whether Greece has the will and the ability to restore its economy, but he said
"big progress" has already been made toward restoring fiscal stability, pointing
to the reduction of the deficit from 15% of GDP to 10.6%.

He said fiscal support is needed from Greece's European allies and the
International Monetary Fund.

German Chancellor Angela Merkel, speaking Wednesday in Berlin after meeting
with Irish Prime Minister Enda Kenny, restated Germany's commitment to a strong
European Union of 27 nations and to the 17-nation eurozone.

Merkel said the pair had talked about the need to make the eurozone -- the
nations that use the euro as a single currency -- stronger in the face of crisis
and about treaty changes to make it easier to monitor countries.

"I made clear that Germany sees a necessity here to show the markets and the
world that the euro stands together and must be defended, but also that we are
willing to give up a part of national sovereignty," she said.

"Overall we share the assessment that we still have a problem in terms of
debt, but also competition, but we also share the opinion that the Europeans are
willing to overcome the problems and to show the world that we stand
together."

Her comments come amid speculation that the crisis in Greece and elsewhere
could, if unresolved, lead to a breakup of the eurozone.

Papademos previously has stressed Greece's commitment to the euro, saying its
membership in the eurozone is a guarantee of financial stability.

The drama in Greece has shaken international markets because investors were
afraid the new bailout deal -- which has stringent austerity measures attached
-- might not be implemented.

Papademos said the October 26 bailout, worth 130 billion euros ($177
billion), calls for austerity measures but "will ensure the financing of Greece
over the following years and the completion of the effort of the economic
recovery."

Papademos said work should get under way "immediately, at a very high pace,"
with the first priority being to secure disbursement of the next tranche of
bailout money from a 2010 bailout package by no later than December 15 to ensure
the government can pay its bills.

In addition to the new austerity measures, his government must also implement
promises made by the previous administration in relation to the 2010 bailout,
including privatizations of state-run firms and cuts to the public sector.

Public anger over the cuts led Papandreou to propose a referendum on the new
bailout plan, triggering anger among Greece's European partners and political
turmoil at home.



CNN's Stephanie Halasz contributed

16 November 2011 Last updated at 16:22




Monti unveils technocratic cabinet for Italy

Comments (80)
Mario Monti (foreground) still
faces a confidence vote in the Senate on Thursday

Mario Monti has unveiled a new, technocratic cabinet meant
to steer Italy through its debt crisis after the fall of Silvio Berlusconi's
government.

Mr Monti, who has now been sworn in, appointed a banker to lead a
super-ministry of development, infrastructure and transport.

Mr Monti, a former EU commissioner, has sought to reassure markets that Italy
will overcome its debt crisis.

Italy's borrowing costs have fallen back below the critical 7% level.

The European Central Bank eased the pressure, pushing costs down by buying up
Italian bonds.
No politicians Continue reading the main story
Analysis


David Willey BBC News,
Rome

---

The new Italian prime minister's decision not to include members of the
country's current political ruling class in his cabinet of "technocrats" is the
key to understanding his tactics in trying to restore credibility to the country
in international financial markets.

There had been widespread speculation during Mario Monti's consultations with
the former political leadership that he would appoint Gianni Letta, Silvio
Berlusconi's right-hand man for many years, as cabinet secretary for reasons of
continuity. But in the end Mr Letta and also Giuliano Amato, a former
"technocrat" prime minister, were absent from his list of ministers.

After reading out his new cabinet list, Mr Monti spoke of the "lively"
dialogue he had had with the leaders of major and minor political parties during
the past 48 hours. This was code for his determination to establish himself as a
political innovator who is not in thrall to the leadership of Silvio Berlusconi
and his ministers, who were forced to resign as they were not up to the task of
dealing with Italy's worst crisis since World War
II.


Mr Monti took on the economy and finance portfolio
himself.

Corrado Passera, CEO of the Intesa Sanpaolo banking group, was named to head
the new ministry of development, infrastructure and transport.

Another key appointment was that of Antonio Catricala, head of the anti-trust
authority, who was made under-secretary to the prime minister's office.

Despite reports that Mr Monti had sought to include politicians in his
cabinet, there are none.

"The absence of political personalities in the government will help rather
than hinder a solid base of support for the government in parliament and in the
political parties because it will remove one ground for disagreement," he
said.

Some analysts have said this lack of political cover may leave the
administration open to being undermined in parliament.

Mr Monti still faces a confidence vote at the Senate on Thursday and at the
lower house on Friday, but it looks certain that he will receive the backing of
lawmakers, correspondents say.

Former Prime Minister Silvio Berlusconi has reportedly said he could "pull
the plug" on the government if he does not like what it does.

Announcing his list, Mr Monti told reporters he aimed to restart economic
growth in Italy.

He paid tribute to Mr Berlusconi, who resigned on Saturday, bowing to market
pressure.
Continue reading the main story
Monti's technocratic government

• Mario Monti - Prime minister and economy minister. Former European
  Commissioner
  
• Corrado Passera - Minister of development, infrastructure and transport. CEO
  of Italy's largest retail bank, Intesa Sanpaolo
  
• Antonio Catricala - Cabinet undersecretary. Head of antitrust authority
  
• Elsa Fornero - Labour minister. Economics professor, University of Turin.
  Expert on welfare and pensions
  
• Giampaolo Di Paola - Defence minister. Navy admiral. Chairman of Nato
  Military Committee. Former Chief of Staff of Italian military
  

Mr Monti is tasked with reducing public debt of 1.9tn
euros ($2.6tn; £1.6tn) and restoring economic growth.

Borrowing costs for the government have soared in recent weeks, to levels at
which Ireland, Portugal and Greece needed emergency bailouts.

Italy's debt is large but is considered stable and its deficit is relatively
low but Mr Berlusconi's failure to push through critical economic reforms led to
a collapse of investor confidence.

"It will be a race," Mr Monti said after unveiling his cabinet. But, "we have
had many signals of encouragement from our European partners and the
international community.

"I believe all this will translate into... a calming of the market
difficulties concerning our country," he said.

He has the backing of Italy's main political parties but still needs approval
from both houses of parliament before he can take office and push through tough
austerity measures.

Only one party, the right-wing Northern League, says it will withhold its
support.

Mr Monti intends to remain in office until the end of the current legislature
- 2013.
'Undeniable experience'
London-based economist Annalisa Piazza said the new cabinet seemed to contain
a "good mix of specialties".
Continue reading the main story
“Start Quote

The only question for Italy is: 'Is it too
late?'”

End Quote Riccardo Barbieri Chief
European economist, Mizuho

"A majority of names are academics with undeniable
experience in their respective sectors," she was quoted by Reuters news agency
as saying.

"I think that the choice of Passera... is important considering the crisis
originated in the financial sector."

The Newedge Strategy economist also singled out Piero Giarda, an expert on
public finances, who was made minister for relations with parliament.

Another economist, Riccardo Barbieri of Mizuho, told Reuters: "The cabinet is
made up partly of people Monti knows well and trusts and partly of people who
have probably been suggested to him by President [Giorgio] Napolitano as being
credible...

"It's interesting that Monti has kept the economy ministry for himself. He
obviously wants to be in control of what is clearly the most critical area."

Welcoming the appointment of Mr Passera, the economist added: "The only
question for Italy is: 'Is it too late?'"

Angela Merkel and David Cameron are at loggerheads over the proposed tax on Financial transactions. Britain relies on 30% of it"s Business
coming from it"s Finance whereas Germany, sells machinery and cars etc.

France and Germany are at loggerheads because Sarkozy wants the ECB to lend money as opposed to buying Bonds , but Merkel will not budge saying the ECB does not have authority under the Treaty and thinks it will lead to devaluation of the Euro and inflation.

Thanks AnnaEsse, the rioting in Greece the last time will be more intense because Papandeou had to resign to make way for a tougher
PM who will fare no better at trying to bring in more austerity measures. I predict the whole EU will come tumbling down , this new guy Monti will fare no better in trying to bring in austerity measures.

The Spanish Bonds being sold today incurred more interest, but the French Bonds did not.

The Euro has fallen in value and stocks across Europe have fallen substantially today.

Angela Merkel is now saying Europe must consider Treaty change , presumably to allow the ECB to lend money. HAD THIS BEEN DONE WHEN
GREECE FIRST NEEDED A BAIL OUT, THE SITUATION MIGHT HAVE BEEN CONTAINED.

Now all 27 Countries will have to be involved, not just the 17 who adopted the Euro. How long will this take I wonder?

I wouldn"t be surprised if this is a ploy to allow Germany and Northern Countries to opt out of the EU and set up on their own with the
Deutchemark as the currency.

Meanwhile, Rome continues to burn around the World.

Fitch is saying several U.S. Banks face serious problems if the EU crisis persists.

France urges Merkel to allow ECB to lend money.

Theorists are saying it looks like Greece will march against any more austerity measures, as will Italy, both volatile Countries.

However, as I have said, to change the Treaty would take time.

French Spanish and even German Bonds have increased their yields today and there is a distinct change in that sales are declining as
Investors see the contagion spreading.

Merkel rejects Sarkozy plea for the ECB to lend money, the Spanish 10 year Bond yield reached critical level this morning of 7%.

Ther reason Merkel resists the idea of the ECB lending money is she is terrified that this would lead to untamed inflation resulting in the same situation in Germany in the 20"s and 40"s. However, she might be forced to change her mind when the contagion spreads to the North,
Denmark is the latest to have problems with its Banks.

The new President of the ECB has already said he will not agree to lend money because it is not written in the Treaty and he is paring down the numbers of Bonds the ECB will buy.

Greece braces for large protest rally in Athens

The austerity measures are
deeply unpopular with the Greek public
Continue
reading the main story
Global
Economy

• What's the matter with Spain?
  
• What's the matter with Italy?
  
• Is
  the euro about to capsize?
  
• How might Greece leave the euro?
  

Greece is bracing for a large rally
to mark the anniversary of the student uprising in 1973 that helped bring down
the country's military dictatorship.

The march is expected to be joined by protesters against planned austerity
measures, which Greece must implement to tackle its growing debt crisis.

Some 7,000 policemen are being deployed in Athens amid fears that the rally
may turn violent.

It comes a day after Greece's interim government won a confidence vote.

The governing coalition of Lucas Papademos had a huge majority - 255 MPs
voted in favour, and 38 against.

The technocratic government must approve a new bailout package and commit to
reforms in order to secure the next instalment of an international
loan.
History repeating?
The 17 November demonstration traditionally draws huge crowds in Athens every
year.
Lucas Papademos says Greece
needs to take bolder steps to tackle the crisis

People march from the polytechnic to the US embassy in protest at US support
of the junta, which Washington saw at the time as a buffer against
communism.

But this time the march will be more than a commemoration, drawing protests
against the cost-cutting Greece is currently pursuing, the BBC's Mark Lowen in
Athens reports.

In 1973, the uprising helped usher in the end of the country's leadership,
and the current government will hope that history will not repeat itself, our
correspondent adds.

The government says the austerity measures are essential, although two party
leaders within the coalition remain reluctant to sign a document committing
themselves to the bailout terms.

They are the leaders of the conservative New Democracy party, Antonis
Samaras, and the leader of Greece's Far Right Laos party, George
Karatzaferis.

But both leaders backed the unity government in the vote.

Mr Papademos, an unelected former banker, earlier said his priority was
ratifying the international 130bn euro ($177bn; £111bn) bailout package agreed
at an EU summit last month.

Speaking before Wednesday's confidence vote in parliament, Mr Papademos
appealed for unity and said Greece needed to take bolder steps to tackle the
crisis.

"Dealing with Greece's problems will be more difficult if Greece is not a
member of the eurozone," he told parliament.

The planned reforms have already triggered widespread protest in Greece.

The crisis led to the resignation last week of the then-Prime Minister George
Papandreou.

The unity government is intended to run the country until elections in
February.

An American attending a meeting with the new Greek Prime minister says he thinks the 50% write off is worth 40% of Greek GDP, not so long
ago the Greek debt was estimated at 192% of GDP and with no prospect for growth, how are they going to ever get out of Debt. There will
be more protest marches ending up with damage to buildings when the latest austerity measures are announced. Merkel has said that the latest tranche will not be released unless the people accept the measures

Merkel has not only fallen out with Sarkozy over the ECB lending money, angered David Cameroon for not allowing the Transaction Tax.on
Investement purchases that her position is quite entrenched and she is a solitary figure. Whether she still has the backing of the German Government is debatable , every Country around the World is affected and annoyed at the way this crisis has been handled. Merkel might be very clever , putting herself in a corner so she has no alternative but to take Germany out of the EU which is what she wants, or very stupid
to think she can dominate every area of the EU and maybe other Member Countries will turn against her.

New Italian premier presents plan to lawmakers

From Hada Messia, CNN
November 17, 2011 -- Updated 1430 GMT (2230
HKT)


Italy's new prime minister Mario Monti has
presented his proposed reforms to lead the country out of financial
crisis.

STORY HIGHLIGHTS

• NEW: Student protesters say they shouldn't have to pay for debt
  problems they didn't cause
  
• Mario Monti says his plan will balance the budget and promote growth
  
• Monti is scheduled to face a vote of confidence in Italy's Senate
  
• He took office Wednesday, four days after Silvio Berlusconi resigned
  

Rome (CNN) -- Italy's new prime minister presented his
proposal for leading the country out of financial crisis Thursday.

Mario Monti, who took office Wednesday, said the main points of his program
are balancing the budget, promoting growth, and cutting down on social
disparities.

He also said overhauling Italy's pension system, fighting tax evasion and
cracking down on organized crime will be key steps.

Monti's presentation came before he was scheduled to face a vote of
confidence in Italy's Senate.

"What we are trying to accomplish, my dear senators, and which I ask you to
support, is extremely difficult. Otherwise I imagine I wouldn't be here today,"
he told lawmakers in remarks that were also broadcast on Italian television.
"The margins for success are so reduced after years of battling in national
politics. If we know how to ... start a constructive dialogue, we will have the
opportunity to save the country and re-establish credibility in its
institutions."






What's next for Italy's new
government?






New leaders tackle Europe debt
crisis






Last Look: Berlusconi's new
gig






Italy's post-Berlusconi
challenges

Monti also said that his government was studying some measures to increase
revenue, including adjusting real estate and wealth taxes.

"We need to confront a crisis," he said, noting that Italy's real estate tax
is significantly lower than other countries.

As politicians debated overhauling parts of Italy's financial system,
hundreds of students demonstrated in Rome and Milan, with protesters saying they
didn't want to pay for debt problems they didn't cause.

Monti and his new ministers sat down for their first Cabinet meeting
Wednesday evening, seeking to find a way out of a crisis that has shaken the
confidence of global investors.

The new prime minister, who replaces the flamboyant Silvio Berlusconi, said
he will also serve as finance minister until he nominates someone else for the
post.

Monti faces an arduous task. Italy has one of the highest national debts in
Europe at €1.9 trillion ($2.6 trillion) -- about 120% of GDP -- and has seen low
growth in recent years.

The 68-year-old former European Union commissioner won the backing of
Berlusconi's political party and Italy's largest left-wing party on Tuesday.

He suggested Monday that his government might not last much longer than a
year, until scheduled elections in early 2013. And at any time, Parliament could
dissolve his government "because of lack of trust," he said.

It is "obvious" that the task at hand is an emergency and that to achieve
economic growth and social equity "should be the priorities," Monti said.

Berlusconi resigned Saturday night, prompting cheers, flag-waving and singing
in celebrations outside his office and ending an era in Italian politics. He was
brought down by difficulties in pushing through budget cuts after 18 years in
and out of the prime minister's office.

The former prime minister is expected to give his first speech as a lawmaker
in the lower house of Parliament on Friday, according to Italian media
reports.

His People of Freedom party remains the strongest force in Parliament, and
Berlusconi has said he plans to remain active in it.

Berlusconi is the second prime minister to resign this month over the debt
crisis sweeping across Europe, following last week's replacement of Greece's
George Papandreou. Papandreou was replaced by Lucas Papademos, a former European
Central Bank official.

Greece anti-austerity protesters join annual rally

The annual march has taken on
extra significance because of anger over tax rises and spending cuts

Continue
reading the main story
Global
Economy

• What's the matter with Spain?
  
• What's the matter with Italy?
  
• Is
  the euro about to capsize?
  
• How might Greece leave the euro?
  

Thousands of protesters are taking
part in an annual march in the Greek capital, Athens, with numbers swelled by
anti-austerity demonstrators.

The rally marks the anniversary of a student uprising in 1973 that helped
bring down the country's military dictatorship.

There was a brief clash outside the parliament when police fired tear gas at
youths throwing petrol bombs, but the march has been mainly peaceful.

Some 7,000 officers are on the streets.

Analysts say it is the first test of public defiance against Prime Minister
Lucas Papdemos's new government.

It comes a day after Greece's interim government won a confidence vote.

Mr Papademos's governing coalition had a huge majority - 255 MPs voted in
favour, and 38 against.

His technocrat government must approve a new bailout package and commit to
reforms in order to secure the next instalment of an international
loan.
History repeating?
The 17 November demonstration traditionally draws huge crowds in Athens every
year.
Lucas Papademos says Greece
needs to take bolder steps to tackle the crisis

People march from the polytechnic to the US embassy in protest at US support
for the military junta, which Washington saw at the time as a buffer against
communism.

But this time the march is imbued with a lot of anger about the austerity
measures, says the BBC's Mark Lowen in Athens.

In 1973, the uprising helped usher in the end of the country's then
leadership, and the current government is hoping that history will not repeat
itself, our correspondent adds.

The government says the austerity measures are essential, although two party
leaders within the coalition remain reluctant to sign a document committing
themselves to the bailout terms.

They are the leaders of the conservative New Democracy party, Antonis
Samaras, and the leader of Greece's Far Right Laos party, George
Karatzaferis.

But both leaders backed the unity government in the vote.

Mr Papademos, an unelected former banker, earlier said his priority was
ratifying the international 130bn euro ($177bn; £111bn) bailout package agreed
at an EU summit last month.

Speaking before Wednesday's confidence vote in parliament, Mr Papademos
appealed for unity and said Greece needed to take bolder steps to tackle the
crisis.

"Dealing with Greece's problems will be more difficult if Greece is not a
member of the eurozone," he told parliament.

The planned reforms have already triggered widespread protest in Greece.

The crisis led to the resignation last week of the then-Prime Minister George
Papandreou.

The unity government is intended to run the country until elections in
February.

Germany's secret plans to derail a British referendum on the EU

Germany has drawn up secret plans to prevent a British referendum on the overhaul of the European Union amid concerns it could derail the eurozone rescue package, leaked documents obtained by The Daily Telegraph disclose.


Angela Merkel, the German chancellor, is today expected to tell David Cameron that Britain does not need a referendum on EU treaty changes, despite demands from senior Conservatives for more powers to be repatriated to Britain Photo: AFP






By Bruno Waterfield, in Brussels

10:02PM GMT 17 Nov 2011
1024 Comments


Angela Merkel, the German chancellor, is today expected to tell David Cameron that Britain does not need a referendum on EU treaty changes, despite demands from senior Conservatives for more powers to be repatriated to Britain.

The leaked memo, written by the German foreign office, discloses radical plans for an intrusive new European body that will be able to take over the economies of beleaguered eurozone countries.

It discloses that the EU’s largest economy is also preparing for other European countries, which are too large to be bailed out, to default on their debts — effectively going bankrupt. It will prompt fears that German plans to deal with the eurozone crisis involve an erosion of national sovereignty that could pave the way for a European “super state” with its own tax and spending plans set in Brussels.

Britain would be relegated to a new outer group of EU members who are not in the single currency. Mr Cameron will today travel to Brussels and Berlin for tense negotiations with Mrs Merkel amid growing disagreement between the leaders over how to deal with the eurozone.

The Prime Minister is increasingly exasperated that Germany refuses to provide more financial help for Italy and other struggling countries amid concerns that the crisis is having a “chilling effect” on the British economy. Mrs Merkel yesterday said she expected Mr Cameron to “examine a stronger involvement with other countries” once the eurozone crisis had been resolved.

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[what's this]




She said: “We’ve seen a sovereign debt crisis evolve in some states and particularly those in the eurozone find themselves in the international focus.
“It was right of David Cameron to concern himself with the UK’s debt issues when he became Prime Minister — that’s my firm conviction, and once the negative focus has moved away from Europe, he will examine a stronger involvement with other countries.”
The eurozone contagion is threatening to spread to Spain and France. Yesterday, the price of Spanish government borrowing reached the “brink” of crisis point.
The Spanish government sold 10-year bonds at a 6.975 per cent yield — just below the seven per cent level which has triggered international assistance elsewhere.
Amid protests in Milan and Turin, Mario Monti, Italy’s unelected “technocrat” prime minister unveiled sweeping austerity reforms. Mr Monti warned that a break-up of the single currency would take eurozone economies “back to the 1950s” in terms of wealth.
The six-page German foreign ministry paper sets out plans for the creation of a European Monetary Fund with a transfer of sovereignty away from member states.
The fund will have the power to take ailing countries into receivership and run their economies. Even more controversially, the document, entitled The future of the EU: required integration policy improvements for the creation of a Stability Union, declares that the treaty changes are a first stage “in which the EU will develop into a political union”. “The debate on the way towards a political union must begin as soon as the course toward stability union is charted,” it concludes.
The negotiating document also explicitly examines ways to limit treaty changes to speed up the reforms. It indicates that Mrs Merkel will tell Mr Cameron to rule out a popular EU vote in Britain.
“Limiting the effect of the treaty changes to the eurozone states would make ratification easier, which would nevertheless be required by all EU member states (thereby less referenda could be necessary, which could also affect the UK),” read the paper.
Senior government officials confirmed that they had dropped a previous demand that EU powers should be “repatriated” to Britain in return for the treaty changes requested by Germany, a move that will anger Conservative MPs.
“I don’t think that anyone is seriously proposing going down that route,” a senior government source said.
Open Europe, a think tank, last night called for Mr Cameron to demand something in return from Mrs Merkel for her “far-reaching plan”, which requires the unanimous consent of all 27 EU countries, giving Britain a veto.
“It would be the first step towards a vision of 'political union’ that would have major consequences for the future of the entire EU, and therefore the UK’s place within it,” said Stephen Booth, the think











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All gloom and doom yet again around Europe, protest marches in Greece, Italy (doesn"t look good for the new Prime Ministers) and Spanish
protesters protesting about lack of Funds for Education, 4 million under 25yr olds currently unemployed.

The U.S.A. is losing patience with Merkel because there is still no decision , something has to give.David Cameron, the weakest voice in the
EU because Britain has not adopted the Euro can huff and puff all he likes but Merkel will take no notice of him. Don"t have a Referendum
on this David will you and give the Citizens of the U.K. a chance to regain some independence . If Merkel and the President of the ECB eventually agree the Bank will act as lender, that is breaking the Treaty and Britain would have evey right to leave the EU.

The Chief Financial Officer of Siemens says the Euro has to be saved. Martin Luther was the original advocate of living within one"s means and this is inbuilt into the German Character, neither a borrower or a lender be. Debt and Inflation are Taboo words . Germany is the major economy
and many of it"s people think every other Country should help , not just Germany.

Dixon of Commerzbank says elements of the Treaty have been broken before so for the ECB to lend money is not a problem. There must
ultimately be fiscal and monetary union in the EU .The ECB is not there to be like the Bank of England . Europe has a prolem with who is
in charge, technically Merkel and Sarkozy were never elected, it"s because they are the largest and Countries and of course Germany is the
most politically stable and richest Country.

If fiscal and monetary union were to happen would Germany still dictate or will there be a more democratic Government of all Members.?