The EU executive believes that these two sets of measures would allow the euro area to overcome the current crisis by advancing to an organization in which greater solidarity would be offset by increased liability of the members.

Depending on the device, the EU executive could amend not only the first draft national budget, submitted in April, but the budget bills during the second half of the year.

The Commission may make recommendations or even claim that a new budget is established, if necessary up to defend his opinion directly to national parliaments after discussion between the finance ministers of the euro area.

But the parliaments retain the final say on the budget, but the EU executive would in turn can open without waiting for an excessive deficit procedure if it considers that the country moves away from the budget path which is recommended.

In extreme cases when the country refused repeatedly to comply with EU recommendations, it could be placed "under administration" Community Trust in the clear in Brussels.

Floods in Thailand will also affect exports significantly in the last quarter, disrupting supply chains across Asia, warned the BoJ in its report of November.

"Exports and production should show more or less stable at the moment and then increase moderately, reflecting mainly an acceleration of the recovery of overseas economies," said the central bank, warning however that the economic outlook remained uncertainty.

The least we can say is that the end of term Jean-Claude Trichet has not been easy. The French left the European Central Bank (ECB), after eight years of presidency, when the euro area is experiencing a critical step – critical? – Of its crisis. For if the Europe Agreement birth Thursday morning in pain is an important step in the short term, it does not eliminate all long-term risks of contagion from the debt crisis.

We do not worship nor hate Jean-Claude Trichet, as it is more consensual than cleaving – it boasts of never having been outvoted by the Governing Council of the ECB. We respect him.For he succeeded in making the institution of Frankfurt an economic and political front. The markets were suspended in any of his words at monthly conferences of the ECB on interest rates. And since Europe is in crisis, he took part in EU summits as well as leaders and heads of government of member states of Euroland.

The route of Jean-Claude Trichet

1942: Born in Lyon

1969-1971: ENA

1978-1981: Economic Advisor, Valerie Giscard d'Estaing

1986-1987: Director of the Office of Edouard Balladur, Minister of Finance

1987-1993: Director of Treasury

1993-2003: Governor of the Banque de France

2003-2011: President of the European Central Bank

Of the review of eight years as president of the ECB, it can be fierce independence vis-à-vis the Franco-German policies.No sooner did he take the levers of the ECB in November 2003, accusing Jacques Chirac and Gerhard Schröder to gut the Stability Pact. In 2010, he opposed the will of Nicolas Sarkozy and Angela Merkel to involve private investors in the rescue of Greece. But we remember also its renewed calls for member states to implement a real economic governance of the euro area. Not to mention his extraordinary responsiveness during the financial crisis in August 2007 first, then in October 2008, noting that the interbank market is frozen, the ECB is the first to lend banks as much liquidity as they wish.

The strong euro, the result of the fight against inflation

Two of his actions, however, are highly controversial.

German Chancellor Angela Merkel was to participate Wednesday in a crucial European summit bears the overwhelming support of the Bundestag but conditional to negotiate a strengthening of the European Relief Fund (EFSF). German MPs had to vote at midday on a "motion" filed by the government majority and the opposition, a mission order for Mrs. Merkel.

Without going into technical details, two pages of this motion pose prohibited: no way to load even more the European Central Bank, making it taste too many Germans. And not about to spend more than 211 billion euros already pledged.Before the vote, the Chancellor still had to speak before the lower house. "It will be a long day," warned the early morning spokesman Steffen Seibert, via Twitter. "We will send a strong signal for Europe", promised Wednesday to television the secretary general of the party Christian Democratic Union (CDU) Angela Merkel, Hermann Grohe.

"It is fitting that on such important issues the opposition (…) renounces the tactical game fan", it was bliss. In fact, the conservative chancellor for European affairs has a "grand coalition", which gathers around its own most conservative / liberal of the two main opposition parties SPD (Social Democrats) and Greens. The mission statement drafted by all parties, with the exception of the radical left "Die Linke", should be adopted by an overwhelming majority of 620 MPs.On 29 September already, when he acted for the Bundestag to ratify a first capacity building of EFSF, this "holy alliance" was played.

This massive vote of support will not prevent commentators to have dissenting voices in the majority, to see if Merkel was able to win without the votes of the opposition. He needs 311 votes for this account in his own camp. "Merkel needs the magic 311 votes to go heads up in Brussels," commented Wednesday Der Spiegel in its Internet edition. Otherwise, the Bundestag to hands-free Merkel to leverage the lending capacity of EFSF (440 billion), based on two options: to fund a "credit insurance" states in difficulty, and seek external funding, such as emerging markets.

Members recognize that with this strategy, "the risk of loss can be changed" they do not want to put more money on the table, but are willing to lose the already committed. This vote confirms the increasingly important role taken by the German parliament in the European political game, to the dismay of some partners in Germany. The Constitutional Court has recently strengthened the powers of the Bundestag, by requiring the green light for decisions involving public funds in support schemes in Europe.

This is not without boondoggles: Friday, the Assembly had decided to confine the discussion of the EFSF its Committee on Budgetary Affairs. Before you turn around Monday and to convene a plenary session. "We are treading unknown territory" with respect to working with the Bundestag, Merkel agreed Tuesday, trying to recall the division of roles."These are different tasks: a government that conducts international negotiations, and the concern for parliamentary support the widest possible," she said.

Acerbic, columnist of the daily Handelsblatt stated that "the government (had) not thought about the time arrangements for informing the parliament." And parliamentarians did not realize that their new power is synonymous with extra work, "he said.

He added that any revision of the plan provided for Greece in the Europe Agreement of July 21 will continue to provide that the private sector participation is voluntary and avoid a credit event.

The President of the Commission, speaking on the sidelines of the LCI meeting of G20 Finance in Paris, said the European countries with fiscal room should be used to support growth.

"A decision must be applied immediately, a decision on the strengthening of the European stability, a decision on a greater guarantee for our banks," he said.

"States that have room for maneuver should support demand," he added.

José Manuel Barroso declined to quantify the need to recapitalize European banks, on which European leaders emphasize their pressure to enable them to withstand greater losses than expected on the sovereign debt of the most fragile countries in the euro area.

The European crisis is on everyone's mind at the meeting of G20 finance which opened Friday in Paris to complete proposals on reducing global imbalances in the context of the Cannes summit of November 3 and 4.

"It is fundamental that there is a policy coordination between countries to weather the current international situation," said Brazilian President Rousseff after meeting officials of the European Council and Commission in Brussels.

"The absence of effective regulation of the financial system is causing the problem," she said.

The economy dominated an annual summit that normally relations in trade and investment.The inability of the EU to find an effective parry to his debt problems upset Brasilia, Washington and Beijing, while market confidence is affected by fears of a global recession.

The leaders of both parties were critical financial regulation more effective in preventing future crises and to prevent national economic problems will spread to other countries or regions.

"We need to overhaul the global financial architecture in order to avoid financial crises in the future," said Herman Van Rompuy later, European Council President, representatives of business circles in Europe and Brazil.

GROWTH, advocates Rousseff

The EU leaders, who will meet this month before the G20 summit scheduled for November in Cannes (France), will have a more united front against economic hardship, said Van Rompuy.

"A strong and coordinated action is necessary to prevent the global economy falls into recession. The EU and Brazil will cooperate closely to prevent this from happening at the G20 summit in Cannes, he added.We must cooperate more on trade and exchange rates. "

Dilma Rousseff, whose country has itself gone through a debt crisis in the 1980s before re-emerge as a major economic power, said that "holders of tax adjustments recession" made when Brazil had problems of debt, had aggravated his stagnation.

"We can end the crisis by stimulating economic growth," she said on the occasion of his first visit to the EU as president.

The EU is the largest trading partner of Brazil, and European investments in this country represent more than all of those of the Union in China, India and Russia.

Brazil wants greater involvement of the EU's leading industries such as telecommunications, oil extraction and refining. For its part, the EU hopes to benefit from a Brazilian economy that recorded last year a growth rate of 7.5%, its fastest in 24 years.

However, discussions on a free trade agreement between the EU and the South American bloc Mercosur, dominated by Brazil and Argentina, are deadlocked.

At 9:36, the CAC 40 index advances 2.79% at 2939.25 points after taking 1.75% Monday, with a volatility index down 4.31% to 47.81 points.

According to the U.S. television network CNBC, which cited a European financial responsibility, a special fund could be created through the European Investment Bank to issue bonds and purchase of European sovereign debt.Bonds could also serve as collateral for the ECB, CNBC added.

Austria's Ewald Nowotny, a member of the Governing Council of the ECB, for its part, said at a conference at Harvard University, an increase in the size of the European Financial Stability Fund (EFSF) was likely but would probably not as important as what some people expect, "not the order of a thousand billion" euros.

The "rally" bear markets are more violent, says Frederic Buzare, head of equity management at Dexia Asset Management, which has 85 billion euros of assets under management.The rebound will not last if investors do not get clear action plan to resolve the crisis, he added.

In this type of policy-driven market, it's all about the risk premium. The valuation ratios are no longer relevant, adds the manager.We spend more time reading the statements of leaders (political) to study the balance sheets of companies, he says.

For his part, U.S. President Barack Obama said Monday night that the crisis of European debt was "afraid the world" and that European leaders attacked the problem but not as quickly as needed.

Other major European markets, the London Stock Exchange gained 2.1%, the Frankfurt 3.2% and 2.6% in Milan, while the pan-European index STOXX 50 wins almost 3%.

Bank stocks are still at the top of increases in the CAC 40, with a gain of more than 9% for BNP Paribas, over 8% for Societe Generale and more than 7% for Credit Agricole. Axa takes 7.8%.The index of banks in Europe advance 3.5% /

But all sectors benefiting from the rebound on Tuesday, including cyclic, with a rebound of 4.5% of the index motor and 4.1% of commodities that had posted the weakest performance yesterday.

A barrel of U.S. light crude rose 2.6% to 82.29 dollars and Brent from 1.2% to 105.22 dollars, causing the oil companies and related industries in its wake.

The performance of the German government bond (Bund) and 10 years is around 1.9% against 1.8% the day before closing, while the euro is stable against the greenback around 1.3530 dollar.

2011 is the year the trade deficit lights will beat his sorry record. The trade imbalance is expected to reach 75 billion euros this year, said Secretary of State for Foreign Trade, Pierre Lellouche, at a hearing Tuesday afternoon before the Finance Committee of the National Assembly, Les Echos reported . The record for 2008 (56.5 billion) is preparing to be sprayed.

Pierre Lellouche mentions "two mitigating circumstances": the rising cost of energy bills due to soaring oil prices and the overvaluation of the euro. But these two factors n 'explain that the half the deterioration in the trade deficit.We must recognize that the capacity of France to export is failing. "The basic issue is that of the competitiveness of our businesses," laments Pierre Lellouche.

"We do not anticipate a recession in Europe. The latest forecasts from the European Commission show that there will be growth, modest growth, it is true," said Monday the head of the executive in Brussels to a visit to Australia.

Concerns about the risk of contagion to Spain and Italy to the debt crisis in the euro area continue to cause nervousness in financial markets, and Greece feeds new concerns about its ability to achieve its goals of fiscal consolidation.

"Let me be very clear.The EU and the euro are strong and resilient, "said José Manuel Barroso after a meeting with Australian Prime Minister Julia Gillard, whose country belongs to the G20.

The final pillar of the law Tepa ("Labour, employment and purchasing power"), passed in the summer of 2007 and the five-year symbol of Nicolas Sarkozy, teetering dangerously. After the tax shield, the tax credit on mortgage interest relief, or inheritance tax and gift tax, the tax exemption of overtime could be eliminated, or at least scaled down – Claims loads are decreasing and the number of hours maximum. François Fillon said the union leaders with whom he met on Monday night.The secretary general of the UMP, Jean-Francois Cope, for his part acknowledged this morning that it was a "track" in the new savings plan to be presented Wednesday by the government. This device, however, was the symbol's flagship campaign slogan of Nicolas Sarkozy in 2007, "work more to earn more." The reasons for the sacrifice of the tax shelter on the altar of triple A tricolor.

Because it's a niche that is very expensive

The tax exemption of overtime is one of the tax and social niches most expensive ever. The shortfall for Social Security is about three billion, one for the IRS is about $ 1.5 billion. 4.5 billion euros per year on average in less revenue for the public finances.4 billion euros, it is precisely the amount of additional savings that the government must release this year to keep the deficit target to 5.7% of GDP is assumed that growth will not reach the 2% forecast . The government does not intend to delete the entire device, but the plane at the margin, the gain will be only a few hundred million euros according to Le Figaro.

Because the device generates abuse

Employers as employees have a common interest to declare overtime. Which generates abuse. In short: the employees who were already working before measuring 39 or 40 hours, and recovering lost profits in the form of RTT or bonuses, overtime these institutionalized, and have declared.But "there was no additional overtime," is the UMP deputy Jean-Pierre Gorges, author of a parliamentary report published last June. An observation already singled out in 2010 by Pierre Cahuc and Stephane Carcillo. According to two economists, if the number of paid overtime has certainly increased by 25% since 2007, working hours, that is ultimately the number of hours worked, has not budged. They conclude that the tax exemption of overtime is actually a tax planning tool for businesses. The exemption from payroll taxes on overtime, on average, reported 1.3 billion euros per year to businesses. This makes it more attractive for companies to pay overtime to their employees rather than pay them bonuses or increase their salaries.

Because the gain in purchasing power is not significant

The device offers a gain in real purchasing power. Thus, it is an average of 3.2 billion euros will be donated to some 9.4 million workers each year through the exemption from social security contributions (paid at the time is gross) and the tax exemption ( the overtime pay is deductible from income tax). The average annual gain for employees would be about 500 euros per year, or 42 euros per month. What put the light butter in the spinach, or even feed her book A, but not strongly enough to boost consumer spending. In addition, the tax exemption of overtime benefits neither self-employed or part-time employees, and a whole taxable to employees only.Are excluded from my device the most modest.

Because this niche is not in use

Nicolas Sarkozy has already announced in late July that he would not touch the niches "in the employment service." You're in luck because the tax exemption of overtime hours he is rather harmful, if one believes the unions and the left opposition. They believe the device is a brake on hiring: companies prefer to use overtime rather than hiring in times of high activity. They are not the only ones to think so. From the introduction of the device in 2007, a report of CAE (Centre for Economic Analysis) denounced the potential windfall for companies. The very serious account of the Court has also denounced in 2010 effect "ambiguous" on the job because "the increase in working hours may induce firms to substitute work hours for men."This is demonstrated in the second quarter 2011, growth in the volume of overtime hours rose 5.8% year on year, after rising 5.7% in first quarter 2011, while unemployment remained at a high level. "The levels of overtime since the start of 2011 now exceed those observed since 2008, while employment has still not regained its pre-crisis levels," fell in July ACOSS, the organization that brings together the Urssaf.