"Political leaders should give an answer in principle tomorrow afternoon (the EU)," he told reporters Panos Beglitis, spokesman for the Greek Socialist Party ( PASOK) on Sunday.

They will then discuss the plan of the troika (International Monetary Fund, European Commission and European Central Bank) at a meeting chaired by Prime Minister Lucas Papademos.

"There will be a meeting of political leaders chaired by Papademos tomorrow afternoon," said Beglitis. 

The chief minister said for his part that the various managers of the government coalition have agreed on a reduction in public spending by an amount equivalent to 1.5% of GDP this year.

This includes measures to reduce salaries and benefits costs to make the Greek economy more competitive, he added.

He also confirmed the meeting of heads of coalition parties on Monday to conclude negotiations on the second aid package of 130 billion euros to be implemented by the mid-March to avoid a collapse of public accounts. 

The two main Greek unions called for a 24-hour strike Tuesday to protest against austerity measures and reforms demanded by international creditors.

"We expect one-day strike on Tuesday," said Ilias Iliopoulos, general secretary of the ADEDY representing public sector employees.

"Despite our sacrifices and despite the recognition that this policy mix is ​​bad, they ask even more austerity," he added.

ADEDY and its private counterpart, the GSEE, representing about two million workers in Greece, about half of the workforce. 

BAROIN OPTIMISTIC

Creditors of Greece had requested a reduction in spending worth one percent of GDP, slightly more than two billion euros for 2012.

The negotiations on the restructuring of the Greek debt held by the private sector rose "relatively well", said his side the French Minister of Economy and Finance, Sunday .

"I think it progresses smoothly on the part of private sector involvement to be made on a voluntary basis," said Baroin under the "Grand Rendez-Vous "Europe 1-Le Parisien-i> Télé.

"We would not get away from the level at which one must move the Greek debt in 2020, that is to say around 120%," said the French minister. And "it is because we do not withdraw these objectives that the discussions are difficult," he said.

"Anyway, it's later than February 13," continued Baroin.

February 13 is the deadline posed by the euro area to launch the operation, which should bring the Greek debt around 120% of GDP in 2020 against over 160% today.

The private sector should accept a discount of around 70% of its obligations under the exchange program of the Greek debt. This will help to lower than 100 billion euros of debt of Greece.

In exchange for a loan of at least 130 billion euros by 2015, the troika of institutional creditors requires further structural reform and further reforms of austerity authority to clean up its public accounts.

Troika calls including a lowering of wages in companies and supplementary pension, which measures face many political and union resistance.

In the absence of an agreement, Greece is threatened with failure to pay on 20 March, when mature 14.5 billion euros of bonds.

The "blunder" by Standard and Poor's comes almost timely for the European Commission. Brussels Wednesday will unveil a range of measures to regulate rating agencies, and the announcement erroneous degradation of France by S & P should increase the willingness of European regulatory agencies. Details of the measures to be adopted.

Suspend a rating

The Commission will decide to suspend the rating of a State in case of excessive volatility or if the country is under European aid program. The decision can be explained by the previous in Greece.

Attack to justice agencies

Any investor can now sue an agency and ask for damages when it deems necessary. Brussels wants to create "a European framework of liability in case of serious misconduct or gross negligence." A new measure that should appeal to France after the "true-false" degradation Standard and Poor's.

Impose a turnover in the agencies

Brussels wants to put some competition in the "Big Three", Moody's, Standard and Poor's and Fitch Ratings. The idea of ​​creating a European agency was dropped, now Brussels wants to impose a rotation to the actors who are noted. Clearly, companies and states will be required to change agencies every three years, to encourage competition between agencies. But the idea is not only criticized by the rating agencies but also by some of their clients.

Net income for the Swiss reinsurer has more than doubled in the third quarter to $ 1.35 billion (988 million) against 618 million in the comparable period in the previous year.

Swiss Re said the performance by "a moderate level of natural and unique effects positive."

Premium income rose to 5.74 billion against 5.05 billion a year earlier.

The combined ratio, a key indicator of operating profitability in the sector, however, has deteriorated to 80.8% against 76.4% last year.The combined ratio was expected at 89.7%.

The world's second largest reinsurance confirmed its medium-term objectives, for an ROE of 700 basis points above the average over five years and an average annual growth of 10% of earnings per share.

"Our financial targets in 2011-2015 reported in February 2011 is our top priority and we are fully dedicated," said CEO Stefan Lippe in a statement.

The group also expects a modest turnaround in the market but general damages, liability and accidents.

"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.

According to a survey conducted in June 2011 for the Circle Health and Europ Assistance, 29% of French say they have postponed or abandoned medical care because of financial difficulties during the past year. This is one of the highest rates in Europe: in Germany, they are only 15%, UK 6%, Spain 5%. Only Poland is less (36%). In the U.S., they are 25%.

Worse, the number of people have waived medical care in France has more than doubled in two years. In 2009 the ratio was only 11%.In three quarters of cases, these waivers or deferrals are for dental or optical care, routine care 12%, 6% of drug purchases and 5% of heavy operations.

In addition, 51% of French respondents believe that equality in access to care is not guaranteed, 53% fear a lack of public money in the future and anticipate a 50% increase in the price of medical procedures. To cover the increase in health spending, 33% of French people favor the increase in contributions and 26% are willing to pay more deductible per medical procedure.

The Dow Jones Industrial 30 yielded 2.49%, or 283.82 points at 11,124.84. The S & P-500, wider, lost 35.33 points, or 2.94%, to 1166.76.The Nasdaq Composite fell on its side of 52.05 points (-2.01%) to 2538.19.

As expected, the Fed announced it would buy Treasury bonds maturing long to bring down interest rates in the long term, but especially the phrase "significant downside risks weighing on the economic outlook" that caught the attention of market participants.

"This comment on the prospects – and I do not, moreover, why it is a surprise – was an attachment point for market participants," said Stephen Massoc, managing director at Wedbush Morgan.

The Fed will buy, by the end of June 2012, 400 billion of Treasury bonds with maturities ranging from six to 30 years.During this period, it will give an equivalent amount of bonds maturing in three years and under.

This action, to put pressure on interest rates in the long run is similar to that conducted in the 60's and so called "Operation Twist".

Stressing that economic growth would remain weak, the Federal Reserve that kept interest rates at between 0% and 0.25%, confirmed that these rates remain exceptionally low until mid-2013.

The index values ​​involving transportation, considered a measure of economic health, has plunged 5.27%.

The fund bank also sensitive to economic conditions, was also affected by the decision of Moody's downgrade of Bank of America, Wells Fargo and Citigroup on the ground that the Federal government may be reluctant to rush to the aid of large banking institutions difficulty.

The title of Bank of America fell 7.5% to 6.38 dollars, that of Wells Fargo 3.9% to 23.71 dollars and action Citigroup lost 5.2% to 25.52 dollars, the index KBW banking shares fell 5.5%.

The technology sector was one of the few in the green, the action Hewlett-Packard gaining 6.6% to 23.96 dollars after a source said the board planned to replace the CEO Leo Apotheker after less than a year of service.

Oracle has gained 4.2% to 29.54 dollars after reporting quarterly forecasts Tuesday night than expected.

Rumors that Moody's had placed the sovereign rating on negative watch Italian Aa2 June 17, could reduce an imminent, also weighed on French banks.

The CAC 40, which had jumped ahead of 3.27% on Thursday and spent most of the session in the green, was down 0.48% to 3031.08 points after three sessions of up to row. Since the beginning of the week, it took 1.9%.Elsewhere in Europe, Frankfurt and London took 1.18% 0.58% while the pan-European Eurofirst 300 index gained 061%.

Rumors that Germany would have postponed discussions on the European Financial Stability Mechanism (EFSF) also weighed on bank stocks.

Among the French banks, BNP Paribas lost 7.56% to 28.195 euros and Credit Agricole, which leaves the EuroStoxx 50 Monday, 10.97% to 4.917 euros.Natixis, which is outside the CAC 40 Monday, gave up 4.41% to 2.387 euros.

The week was marked by renewed optimism about the willingness of political and monetary authorities to engage in concerted action to contain the crisis of the euro.

The announcement Thursday afternoon by the major central banks of their intention to cooperate to ensure dollar liquidity of European banks had largely confirmed the return to cautious optimism.

"Everybody was worried, thinking that the politicians were not on red alert, and this week we learned that they were.This was the real positive surprise, "said Franz Wenzel, head of investment strategy at Axa Investment Management.

"The market does not expect necessarily a revolution that would change the scenario for the future, but is reassured to see that central banks are there to do what is necessary," he said.

However, this does not solve the central problem of the euro area, the crisis of sovereign debt, noted speakers, who do not expect a resolution of the Greek question at the meeting of finance ministers the Eurogroup in Wroclaw, Poland.

The market remains divided between those who believe in the rescue of Greece and those who think it will not be able to meet the requirements for better management of public finances, said a Paris-based dealer action.

Patrice Pérois, sales trader at Kepler Capital Markets, said that the meeting was disrupted by purely technical factors, with the expiration of futures and options on stock indices and the restructuring and re-weighting of the three indices: Euro Stoxx 50, Stoxx 600 and CAC 40.

The performance of the German government bond (Bund) is relaxed to 10 years of seven basis points to 1.86% while the euro weakened against the greenback and traded around the 1.3780 dollar against 1.38% on Thursday.

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.

At the Paris Bourse, the fall of the SocGen action sailed around 18.5% to 16.15 after exceeding 20% ​​temporarily. BNP Paribas

Abandoned agricultural credit and 15.68% 12.52% to 16.15.

The indices also dug their losses in the wake of a drop of around 3% of Wall Street opening.

"When we see how things have changed, there is now a lot of pressure on France.It's pretty focused, "said one London-based analyst who declined to be named, about the fall of the French bank.

"It's a little to challenge the French system:" you promise to reform.It's good but now we need concrete announcements ", he adds.

The French government announced late this morning that France would take 24 August the necessary steps to ensure that its objectives of reducing public deficits are met regardless of changing economic conditions.

CONCERNS IN ITALY

French banks are also under attack because of their high exposure to Italy, a country under pressure from European leaders to address its budgetary situation.

According to figures from the Bank for International Settlements (BIS), the French banks are exposed to the tune of 410 billion euros to Italy, followed by German banks with an exhibition of 165 billion.

BNP Paribas and Credit Agricole are especially vulnerable to Italy because of their local branch, respectively Banca Nazionale del Lavoro and Cariparma.

At the Milan stock exchange, securities Intesa Sanpaolo and UniCredit were reserved for the decline in the afternoon due to excessive volatility.

The market is concerned about the ability of Italian banks to refinance.In response to these rumors in the market, the ABI, the Italian Banking Association, said Wednesday morning that Italian banks had no difficulty at this time to refinance.

"Italy seems to be what worries that the market returns (the Italian debt) have fallen after the intervention of the ECB", noted earlier in the morning a trader in Paris.

EXTENSION OF AID TO GREECE?

In addition to these fears also reports that the European Union and the Institute of International Finance (IIF) would think an expansion plan for the exchange of Greek sovereign debt to include obligations maturing in 2024 instead of 2020.

To some analysts, this could result in the sudden depreciation of the most important for banks that hold the Greek sovereign debt beyond 2020.

"Banks that have not depreciated 100% of their positions could have an additional impact," said an analyst based in Paris. "This is true for BNP."

BNP Paribas said last week it held the Greek sovereign debt beyond 2020 on which it has not applied a 21% discount.

Societe Generale has however indicated that it did more than government debt after 2020.