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.

Groups and UMP New Centre (NC) voted this draft budget called "obsolete" by the leftist opposition, who voted against.

This draft budget, the last of the five-year and the Legislature, is built on a projected growth rate of 1.75 for 2012 but the government has revised this rate downward by reducing it to 1%.

In the second part of the expenditure, the budget contains several provisions of the savings plan submitted on November 7 as the removal in late 2012 of the device "Scellier", a tax benefit for investors in new homes for rental .

Another measure of austerity November 7: the refocusing of the interest-free loan that will be reserved for new homes and means-tested.

Or a shot of "plane" of 15% and not more than 10 of the tax loopholes.

Meeting in Brussels, ministers primarily responsible for preparing the ground for the Heads of State and Government in defining an acceptable range of options increased participation of the private sector to the new Greek plan on a "maximization" of fire capability fund to support the euro (EFSF) and the recapitalization of European banks.

"This afternoon, we will discuss the leverage for the rescue fund, but without committing ourselves to details," said the chairman of the Eurogroup Jean-Claude Juncker.

"We will try to present to the Heads of State and Government of a policy statement (…) We will try by next Wednesday to have as much detail as possible," he added.

The heart of negotiations on the EFSF, that Paris would be granted a banking license, allowing it to access funding from the European Central Bank to increase its capacity for action by a factor of up to five.

But Berlin refuses, however, this possibility would be to accept that the institution of Frankfurt finance the countries of the euro area, one of the dogmas explicitly excluded by the European treaties.

The other members of the euro area are also divided, Belgium and Spain having voted for a reconciliation BCE-EFSF while Slovakia and Austria have indicated that this solution was not studied.

INTERNATIONAL PRESSURE

According to several sources, Paris and Berlin are unable either to agree on the amount of the participation of banks in new bailout of Greece.

The German authorities, in particular Finance Minister Wolfgang Schäuble, insist that the envelope of 50 billion euros negotiated on July 21 is significantly revised upwards, if necessary by forcing banks to make an extra effort.

According to government sources German, Greek debt should be reduced to around 120% of its gross domestic product (GDP) against 162% today.

But again, the members of the euro area are widely divided on the different options on the table, the level of the discount to be applied to Greek bonds as well as voluntary and non-bank participation.

The count-down is initiated, however, for not only the peaks of Sunday and Wednesday but above the summit of Heads of State and Government of the G20 in Cannes in early November.

Present in Brussels, the executive director of the International Monetary Fund, Christine Lagarde, said the institution would seek to assist the Europeans to resolve the crisis.

"The IMF will do all it can to help Europe, particularly in the Eurogroup, to find solutions," she said.

Thursday night, U.S. President Barack Obama held talks on the economic situation in Europe with his French counterpart Nicolas Sarkozy, German Chancellor Angela Merkel and British Prime Minister David Cameron.

The EBIT of the company thus stood at 330 million euros for the three months to September against 244 million a year ago.Turnover increased 20% over the period.

Deutsche Boerse and NYSE Euronext have until Nov. 8 to communicate officially to the European Commission their responses to concerns in Brussels about their merger, said last week a source close to the matter.

For now, officials of the two stock exchange operators are still reading and analyzing the "statement of objections" sent to them by the Commission on October 5, it says. This release contains the objections of the EC to the merger in terms of competition.

The agreement to acquire the operator of stock exchanges of New York and Paris by the operator of the Frankfurt Stock Exchange was concluded in February.The merger will create the world's largest exchange operator.

Earlier in the day, another source said that European regulators should organize on October 27 an oral examination of the merger.

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.

The rating agency notes that Spanish banks continue to suffer from the economic crisis over the next 15 to 18 months.

S & P has placed Spain in category 4 (cons from 3) of the scale "Bichri" (Banking Industry Country Risk Assessment), which is 1 for countries with the strongest to the weakest 10.

Among the countries in Group 4, one finds including the Czech Republic, Israel, South Korea, Mexico and Slovakia.

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.

The French bank said in a statement it had a net profit of 339 million euros in the second quarter of 2011, down 10.6%, after a charge of 653 million euros related to the crisis in Greece .

She said July 28 that the impact of the Greek crisis would cost a maximum of 850 million euros in its accounts of the quarter.

According to the consensus reached by the editor of Reuters, analysts on average expected a net profit of 193 million euros.

Over the period, net banking income rose 1.1% while the provisions for risk of loss on the credit increases by 14.8%.

Faced with the concerns of investors about the liquidity needs of banks, Credit Agricole said to have a reserve of over 120 billion euros of liquidity available in late July.

"Addiction to cash is limited to USD 36 billion, unrelated liquid reserves available," said the bank.

Net income for the Crédit Agricole group as a whole for its spring to 881 million euros for the second quarter.For comparison, BNP Paribas and Societe Generale respectively reported a net profit of 2.12 billion euros and 747 million euros.and

Given the deterioration of the crisis in Greece, Crédit Agricole was forced to abandon its goal of returning profits to its Greek subsidiary Emporiki in 2012, without setting a new schedule.

However, the bank maintains its financial targets for 2014, ie a net profit of six to seven billion euros in 2014 and revenue over 25 billion.

Like its French competitors, the Crédit Agricole fell sharply from late June to the Paris Stock Exchange, because of investor concerns about the debt crisis in the eurozone and fears of the refinancing of banks.

She has lost 40% of its value since late June. It closed Wednesday at 6.212 euros.

"The Secretary Geithner told the President that he intended to remain at his post at the Treasury," said Assistant Secretary of the Treasury Jenni LeCompte.

Geithner wants to "deal with the challenges that the U.S. economy faces," the statement said.

The euro area has been on the table Thursday a new plan to help nearly 160 billion euros to save Greece and prevent contagion from the debt crisis, but at the risk of causing a default of the country and to break a taboo. After ten hours of talks at a summit in Brussels, the heads of state of the monetary union in the evening reached an agreement to ease Greek debt – amounting to nearly 350 billion euros now – and involve banks.The volume of debt should be reduced by at least 26 billion euros by the end of 2014, said Greek Prime Minister George Papandreou at the end of the crisis meeting.

The leaders of the euro area have decided to strike hard with a rescue of an amount higher than expected and the first emergency plan decided in spring 2010 of 110 billion euros. The second aid plan until end 2014 will be in the detail consists of about 109 billion euros in loans from Europe and the International Monetary Fund, although the distribution between the two groups has not been decided. The rest must come from banks, insurers and investment funds that lent money to Greece, thus meeting a requirement in Germany that had caused much turmoil and divisions among the Europeans.

For political reasons, Berlin sought to involve the banks in the second aid plan, but worried that request at the highest point as it might lead to a default of Greece, with disastrous consequences for the economy . Opponents of this option, first and foremost the European Central Bank, have relented. For if the leaders of the euro area have implicitly accepted the likelihood that this leads to a failure on part of the Greek debt, this should last a few days, according to a diplomat. However, this is a first for a country of the euro area.

The participation of banks led to a fierce power struggle between the last week in Berlin, supported by the Netherlands and Finland on the one hand, the European Central Bank, France and many other countries.These disputes have fueled the nervousness of the markets and created turmoil that threatened to take Italy – also heavily in debt – to turn in the storm of the debt crisis.

So far strongly opposed to this solution, the President of the European Central Bank, Jean-Claude Trichet welcomed the new aid plan, claiming it was "crucial" to stabilize the Greek economy. He did not rule out a non-payment of Greece, he had rejected so far. "We make our arguments, we are not always heard," he acknowledged.He also welcomed the fact that the private sector to plan aid is limited to only Greece, and not be considered for other fragile countries in the euro area.

Above all, he was granted a concession loud now accept the euro area itself to buy the debt of troubled countries in the markets, through its Financial Assistance Fund, to relieve the banks that hold large amounts. Only the ECB was responsible for this task so far. The Fund may also unlock lending "preventative" to prevent fragile states are caught in a debt crisis.

French President Nicolas Sarkozy saw "the beginnings of a European Monetary Fund.""We appreciate the efforts required of the Greeks, all countries in the euro area have decided to be with them, we can not abandon a member of the euro area from the time it enters a reform agenda, "he also said.

After granting a substantial aid package, the euro area does not stop there way: proposals to improve its governance will be made "before the end of summer" with German Chancellor Angela Merkel Sarkozy said, while the very future of the area seemed in peril with the Greek cause.

By Friday, the Japanese Minister of Finance, Yoshihiko Noda, said Friday that his country was ready to buy more bonds from the European Financial Stability (EFSF) if necessary.

Meanwhile, financial markets, the ads have led to a rebound Thursday in anticipation of the markets.As for the single currency, it has appreciated sharply against the dollar, passing above the 1.44 dollar. Asian financial markets welcomed Friday the announcement of the plan: to 2:20 GMT, the Tokyo Stock Exchange gained 0.86%, 1.35% Hong Kong, Sydney and Seoul 0.85% 0.56%.