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.

The leader of New Democracy, one of the three member parties of the coalition government of Lucas Papademos, reiterated that his word was enough and that a written guarantee was unnecessary.

But European leaders fear that political parties are reluctant to implement unpopular reforms before the elections on February 19.

Samaras has already announced its intention to obtain an absolute majority at the polls to renegotiate the terms of the plan for European support.

"With regard to the discussion I had with the troika and the specific issue written guarantees, I would have said my position," said the Conservative leader after the interview.

"THERE WILL BE A SOLUTION"

By refusing to sign the document submitted by the troika, the economist would jeopardize the payment of the next tranche of aid. Creditors are willing to block eight billion euros needed to Athens to avoid default next month.

Political analysts believe, however, a compromise that allows both sides to save face will be found.

"One way or another, there will be a way around the problem.

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.

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.

"This announcement is likely to penalize the performance of the banking sector, given the uncertainty it generates on the implementation of the Europe Agreement on Greek debt," say analysts at Natixis.

Lionel Garden, head of institutional sales at Assya Capital, believes that "the post-summit rally seems definitely over."

"Pandora's box"

"When U.S. investors will wake up, they will not like what they see. The referendum is a bad idea that falls at the wrong time. This is a big disappointment as the market hoped for unity within the euro area.

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.

The government does not expand the new tax on soda beverages containing sweeteners such as the National Assembly proposes to finance the lower cost of agricultural labor, said Thursday the budget minister Valérie Pécresse. Asked by Canal + on the position of the State in this new provision added by the Finance Committee of the Assembly on Wednesday, the spokesman of the government remained unclear. "It is the wishes of the parliament, we will discuss. But it will be to finance the lower cost of agricultural labor," she was merely responding.The aim is to "enable our farmers to sell their products to the same price as Germany and Spain," said Valérie Pécresse.

For about half the tax, revised help reduce the cost of ongoing work in the agricultural sector, which suffers from a lack of competitiveness against many of its competitors such as Germany, Spain or Italy. The rest will include health insurance. Initially, this tax on soft drinks would bring 120 million euros and should not apply to beverages with artificial sweeteners.

The new tax on soft drinks has doubled and extended to beverages containing sweeteners Wednesday in the Committee on Finance of the Assembly, it should yield more than double, or 250 million euros.The surplus revenue to the state expected from the doubling must be used to finance a reduction in the cost of agricultural labor, said a UMP Amendment / New Centre approved in committee in the review of the draft budget 2012.

6.22 euros per hectolitre

Initially, the tax on soft drinks would bring 120 million euros and should not apply to beverages with artificial sweeteners. But "these drinks, which are not basic necessities, benefit from the reduced VAT rate. They must be able to handle the additional load generated by this new contribution," said Michel Diefenbacher (UMP) in a sub-amendment.

Currently, the wine is subject to VAT of 19.6%, while water and soft drinks are taxed at 5.5%.The rate of contribution of soft drinks will be increased to 6.22 euros per hectolitre will be increased from the beginning of 2013, to January 1 of each year, at a rate equal to inflation (excluding tobacco) of the preliminary last year. Sought by the AFP, the National Association of Food Industries (Ania) was not immediately available for comment Wednesday night the decision to expand the tax soda products with sweeteners. The Government will reduce in 2012 to 210 million payroll taxes on permanent farms in order to "improve competitiveness", Nicolas Sarkozy announced Tuesday.

In addition € 130 million from the tax on soft drinks, the exemption of social contributions of farmers on permanent employment will be funded by 80 million euros from a reduction of a tax on heating oil for professional use.The domestic consumption tax (TIC) of heating oil used as diesel fuel for professional use will be increased from 5.66 to 7.20 euros per hectolitre, as a New Centre-UMP amendment also passed Wednesday. Finally, the cost of a farm worker is expected to fall to one euro per hour, as repeatedly promised the Minister of Agriculture, Bruno Le Maire.

The announcement of the creation of the tax, 24 August, as part of the austerity plan Fillon, had angered the industry, outraged that the government justify this contribution in the fight against obesity. The French subsidiary Coca-Cola had even threatened to suspend an investment of 17 million euros in one of its plants, in the Bouches-du-Rhone, before turning back to the outcry from politicians.

The BoE's decision on Thursday to bring its program of asset purchases to 275 billion pounds underlines the fragility of the British economy, against a backdrop of fiscal restraint and spending power of consumers due to half-mast 'high inflation and weak wage growth.

The Governor of the BoE Mervyn King, in a letter to finance minister George Osborne, says that the global economic recovery has slowed and the debt crisis in the euro area has caused severe strains in financial markets.

"These tensions within the global economy threaten the British recovery," warns Mervyn King.

If the price increase is expected over 5% annual rate in the coming months, the recent deterioration in economic outlook bodes well for a return in the medium-term objective of the BoE, which is 2% in annual basis.

The Bank of England held rates unchanged at record low of 0.5%.This rate has not changed since March 2009.

The bold decision of the BoE to launch a new phase of quantitative easing contrasts with the more conservative ads of the European Central Bank.

The ECB also held its key rates unchanged Thursday while taking further steps to promote the supply of interbank liquidity and to intervene to the tune of 40 billion euros for the primary and secondary markets for bonds in the euro area .

OUTLOOK further deteriorated

Economists polled by Reuters had given a probability of 40% to restart its program of asset purchases by the BoE expected but mostly that it covers only 50 billion of extra pounds.

The sterling fell to 1.5280 dollars after the announcement, the lowest since July 2010, against 1.5466 before.

"The fact that the Monetary Policy Committee has decided to act now on the quantitative easing and he did it for 75 billion pounds rather than 50 points out that these members consider that the already difficult prospects of the economy further deteriorated due to headwinds both domestically and internationally, "said Howard Archer, economist at Global Insight.

"We believe that quantitative easing will be emphasized in the first quarter of 2012," he added.

The UK economy is virtually at standstill for a year while the government is facing a budget deficit that reached almost 10% of GDP.

The BoE had frozen to 200 billion pounds the amount of its asset purchases since February 2010 in favor of an economic recovery after a deep recession.

Restrictive means adopted by the BoE in view of inflationary pressures has markedly changed over the summer with the fear of a relapse into recession and difficulties for banks caused by the sharp correction in financial markets crisis the euro area and the signs of a global slowdown.

"We would not be surprised to see the total amount of asset purchases to 500 billion pounds, the new stage of quantitative easing, starting with the 75 billion announced today, adding an additional 300 billion in the first phase," said James Knightley, ING Financial Markets.

In his new "World Economic Outlook", the IMF cut its growth forecast to 1.6% this year and only 1.1% next year, respectively 0.4 and 0.6 point less that 'expected in June.

And stresses the need for quick decisions to support countries in difficulty, regain market confidence and alleviate the financial storm.

"In a highly uncertain environment dominated by tensions over the crisis of sovereign debt in the euro area, the risks to growth are mainly focused down," says the Fund.

He explained that the rising interest rate markets may deter investment and lead growth, while a spread of the debt crisis in the countries of the "heart" of the area could threaten the stability financial crisis.

The European Central Bank (ECB) has the power to mitigate these risks, however, considers the institution headed by Christine Lagarde. She believes that the ECB will lower interest rates if inflation risks persist and growth.Jorg Decresson, an IMF economist, pointed out at the press conference presenting the forecasts.

In the meantime, the IMF urges the ECB to continue its repurchases of bonds, at least pending the entry into force of the reform of the European Financial Stability Fund (EFSF), which must provide the power to make this type of redemption.

Meanwhile, the IMF advocated a strengthening of the financial system, a recommendation already mentioned in recent weeks by Christine Lagarde but was more than cool reception in Europe.

Banks should "take immediate action" to raise private capital and "should be more ambitious than that supervisors deem necessary," the Fund.

SIGNIFICANT DIFFERENCES

The new IMF forecasts contrast with the scenario of a gradual and modest recovery outlined in the spring.They should influence the meeting of finance ministers and central bankers planned this weekend in Washington.

Especially as the downward revision spares no one on the Old Continent, not even the country of Central and Eastern Europe who had endured the crisis better and better rebounded since 2008-2009.

The IMF growth forecasts for this "emerging Europe" have been reduced to 4.3% for 2011 and 2.7% for 2012, against 5.3% and 3.2% previously.

"The financial turmoil will affect the activity through a deterioration in confidence and funding, even if the adverse effects of temporary factors such as high commodity prices and supply disruptions related to the earthquake Japan subside, "said the IMF.

And he stresses that its new forecast assumes that European leaders are able to contain the crisis in the euro area.A thinly veiled warning against the risk of further deterioration of the economy in case of paralysis of policy-making process.

IMF forecasts show large differences in economic performance in Europe: Germany, Switzerland, Sweden, Poland and the Netherlands are expected to show growth levels close to those recorded before the crisis, while d others are penalized by drastic adjustment programs, such as Iceland, Latvia and of course the States "peripheral" in the euro area.

In a report released Wednesday, the new Budget Control Committee of Greece, composed of independent analysts, said that "a significant increase in the debt, leaving a large deficit and a deep recession have pushed to the extreme dynamics debt which is now out of control. "

"These developments seem to largely offset the positive impact" of the latest bailout of the European Union amounting to 159 billion euros agreed last month, the commission said in its report published excerpts of which are by the agency semi-state Athens News Agency.Alarmist conclusions that place the Greek government in an awkward position vis-à-vis its creditors EU and IMF. They are involved because the week that Athens is negotiating hard with the Troika of its creditors for payment of the sixth tranche of the loan.

Impatient partners to the very slow implementation of structural reforms and socially unpopular, especially in the labor market, which they consider necessary for the country inflates its coffers while finding growth. More generally, they are alarmed to see that the Greek government deficits are amplified rather than backward.

The Greek finance minister, Evangelos Venizelos, has done everything to discredit the report by comparing it to a gaffe."It is clear that the Office", whose mission is to inform the relevant parliamentary committees, "has neither the knowledge nor the experience nor the responsibility" required, he said

Still, the government is forced to a large gap more and more complicated, because the measures requested by the Troika feed the recession worsens. Evangelos Venizelos has acknowledged last week that gross domestic product expected to have fallen more than 4.5% in 2011 against 3.5% originally planned.

And the public deficit – the source of all evils in the country – already stands at 14.69 billion euros in the first half of 2011, a target of 16.68 billion for the whole year.

In an attempt to fill part of the hole, including the authorities decided to increase from 10 points on Thursday of VAT on catering, from 13 to 23%, as unpopular in a country for tourism. A host of other measures are also on track, but no results are yet ringing and stumbling measurable in macroeconomic terms.

During the summer, some new problems were added, after the extraordinary EU summit on 21 July, which decided last minute a new plan to help the country involving states with hundreds of private banks.

Among the main, is the reluctance of some countries such as Finland, fueled by the rise of nationalism, hand to hand to the portfolio in Greece, if it did not "guarantee" of repayment.

The leaders of the euro area have given a rescue plan of 109 billion euros in July in Greece to avoid bankruptcy in the country. The private sector has also advanced 50 billion euros.