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Angela Merkel and Nicolas Sarkozy are considering the establishment of a Stability and Growth limited to a few countries in the euro area, the Welt am Sonntag reported on Sunday.

A new deal would avoid waiting for a treaty reform could drag on, the newspaper quoted German government sources.

German Chancellor and French President could unveil the next week this proposal as part of a plan against the debt crisis.

"Based on these measures," the newspaper, "there should be a majority in the European Central Bank for a more strong capital markets.

On 14 November, it had fallen to historic low of 317.90 per euro.

Bond yields, already at a high of two and a half years more than 8% should also be under pressure.

To justify its decision, Moody's described the growing uncertainties about the ability of Hungary to achieve its budgetary targets, the high debt levels and what the rating agency designated as growth prospects in the medium term more mixed.

The Hungarian Ministry of Economy said in a statement that the lowering of the Hungarian sovereign rating to Ba1 by Moody's was part of "financial attacks directed against Hungary."

The AMF said Thursday it had opened an investigation following the release by the rating agency Standard & Poor's erroneous information suggesting that the French sovereign rating was lowered.

The AMF said in a statement it had contacted the European financial supervisory authority (ESMA), under its powers of scrutiny of rating agencies.

The French finance minister, Baroin, had previously requested the opening of the investigation into the causes and possible consequences of the mistake, which he described as "quite shocking rumor of information that do not match any foundation" .

"We will not leave any negative message through.It was a strategy, we have an appointment in terms of deficits that is fixed. It will not change one iota, "he said in Lyon on the sidelines of a conference on the economy.

As investors worried about a possible spread of the crisis in the euro area to the major European economies, the error of S & P was able to accentuate the room nervously.

The yield of the loan to ten years jumped by about a quarter point, its largest increase since the launch of the euro in 1999.

Clarification of S & P was issued in English in Paris at 17:40 (16h40 GMT), after the market close.

Outgoing Prime Minister George Papandreou and the opposition leader Antonis Samaras reached an agreement Monday night on the name of the head the next coalition government. Without giving his identity. Greek Prime Minister George Papandreou will soon give way to the head of the country.

Outgoing Prime Minister George Papandreou and his conservative rival Antonis Samaras reached an agreement Monday night on the new leader of the coalition government they have committed themselves to form Sunday, said the public television channel Net. Without explicitly confirm this breakthrough, or provide details, the spokesman of the outgoing government, Ilias Mosialos, confirmed in a statement that the negotiations between the two parties had reached "positive approaches to the appointment of new Prime Minister."

According to Net, the name of the new prime minister will be made Tuesday, together with the composition of the new cabinet, expected to leave Greece for its serious economic and political crisis by ensuring, before early elections by the end February, the implementation of debt reduction plan in the euro area adopted in late October in Brussels. Discussions between the two main Greek parties have dragged on, despite the impatience of European partners who are tired of Greek procrastination.

"An agreement is delayed, it is not easy. Antonis Samaras and George Papandreou are in constant contact and try to find the necessary solutions," had said Monday night in a government source. "If necessary, it will last until tomorrow," she had said. Asked by Net, Conservative MP Harakopoulos Maximos for his part acknowledged "a problem" in the negotiations.

Representatives in Greece of the European Union, the International Monetary Fund and the European Central Bank Monday morning talk with the Finance Minister Evangelos Venizelos in order to conclude discussions on a new package of financial assistance, has one source close the negotiations.

Without this amount of eight billion euros, the Greek state could be short of cash by mid-November and go in default of payment, major risk for the entire euro area.

"We are working on the assumption that the meetings will conclude today," the source told Reuters on condition of anonymity.

The delegates of the "troika" EU-IMF-ECB must then publish a joint statement on Monday or Tuesday, concluding their tasks, then contact the finance ministers of the euro area and the Board of Directors of the IMF reports that the decision will depend on the payment or not the new tranche of funding.

Last week, representatives of the troika had said they wanted, before concluding their mission, have details of the implementation plans and the impact of downsizing of the Greek civil service and increasing taxation.

French and German leaders pledged Sunday to unveil before the end of the month a new set of measures to resolve the debt crisis in the euro area.

However, no details were provided on the plan. Paris and Berlin have also glossed over their disagreements about the rescue of European banks.

Greece said on Monday morning have enabled support system to help the bank Proton, which is thereby de facto nationalized as it is already under investigation on suspicion of Greek offense rules on money laundering.

Greek banking stocks fell by 11% due to fears that other institutions across the country have also need government help.

The draft budget for 2012, the last of the five-year Nicolas Sarkozy, is planning to reduce the public deficit to 4.5% of GDP at end 2012 before reaching 3% in 2013, years during which the public debt ratio would begin to decline.

But the deteriorating economic situation and the outcome of the presidential election of April-May, for which the Socialist opposition is the favorite, could rapidly complicate or disrupt the exercise settings.

"This government will put an end to the continued increase in state spending since 1945 is a historic change", welcomed the budget minister, Valérie Pécresse, presenting the text to reporters Wednesday.

"For the first time since 1945, state spending will decline by one billion euros in absolute value, excluding charges of debt and pensions," she said.

The budget deficit should be reduced next year to 80.8 billion euros if Parliament following the government request to find one billion euros in additional budget debates. This deficit is estimated for 2011 to 95,500,000,000 euros.

The general government deficit, which includes financial statements and those of local communities, will be 5.7% in late 2011.And, once found the European limit of 3% in 2013, it would be reduced to 2.0% in 2014 and 1.0% in 2015, a course which aims to strengthen the note "triple A" given by the French debt the major international rating agencies, a stated priority of the Elysee.

Government debt was 87.4% of GDP at end 2012, 87.3% in 2013, 86.2% in 2014 and 84.1% in 2015, after 85.5% expected in late 2011.

UNCERTAINTIES

The text confirms the government forecasts economic growth to 1.75% in 2011 and 2012 – which are higher than many economists – and then to 2.0% in 2013, 2014 and 2015.

The collapse of financial markets and the deteriorating international economic conditions have in fact further dimmed the prospects for growth, as further illustrated on Wednesday the confirmation of no growth of France in the second quarter.

These pressures on growth does not necessarily discredit the 2012 budget, estimated Monday Michel Didier, president of the Institute of Economic Studies Coe-Rexecode, which expects growth to 1.2% next year.

"Between 1.2% and 1.7%, it is not likely to upset the public finances," said he. "The key is to stay on a path where one earns a point deficit annually."

Economic uncertainty coupled with the impact of the next presidential election.Ever, since France goes on every year deficits, or the mid-1970s, the deficit has in fact declined during a presidential election year.

"The President reiterated that our goal of deficit reduction was untouchable and would be held ready for the euro," said Valerie Pécresse during the proceedings of the Council of Ministers.

ITEMS REMOVED FROM 2007 150 000

For the second consecutive year, state spending will be frozen in value, excluding debt and pensions.

The non-replacement of a civil servant retiring two will continue in 2012 with 30,401 job cuts, bringing the number of cuts to 150.000 full-time equivalent positions over the life of the quinquennium.

According to government projections, the wage will fall and next year for the first time since 1945, amounting to 0.2 billion euros.

The debate on the draft budget, which begins Oct. 18 in the National Assembly, should focus on measures the most iconic, even if their financial reach is limited.

The "outstanding contribution" of 3% for high incomes seems guaranteed to occupy the center stage.The government is said to be open and to lower the threshold by parliamentarians of the measure, which should lead to reducing it from 500,000 to 250,000 euros.

To finance its debt, France plans to issue next year to 179 billion euros of debt in the medium and long-term (net of redemptions) against 184 billion euros this year, announced the Agence France Trésor, which manages the debt of the state.

The proposed budget anticipates a 1.7% inflation in 2012 and holds a hypothesis for Brent oil barrel to 110 dollars and euro / dollar of 1.43 in 2012.

The meeting of European agriculture ministers failed to convince all Member States to maintain funding of millions of free meals. Update on the issues of the blockage. The European aid to the poor to distribute free meals to some 13 million people in Europe.

It must have the meeting "last chance". However, on Tuesday in Brussels, the European Ministers of Agriculture have failed to agree on the future of food aid to the poor, previously levied on agricultural funds. Six countries of the European Union (EU) refused to hold it in the state, saying its operation denatured for many years.Associations, including the Red Cross and Restos du Coeur in France, fear serious consequences, which could be felt in 2012.

What is the European food aid?

In 1987, in the heart of the cold winter that pushed Coluche to open the "Restos du Coeur", the European Commission created the European program of aid to the poor (PEAD). Backed by the Common Agricultural Policy (CAP), he plans to give to charity, today nearly 240 – the agricultural surplus of the member countries, then redistributed to the poor. Nineteen of the 27 EU states benefit now headed by Italy, Poland and France, for the preparation of some 13 million meals.

Since 1995, the surplus stocks are supplemented by a budget that allows you to run the program despite the fall in surplus.Between 1988 and 2008, its budget has risen from 97 to 300 million euros, reaching 500 million in 2009.

Why is the program being called into question today?

The current debate has in fact emerged in 2008. That year, "EU Commissioner has proposed to give a stronger legal basis to support plan by assigning two objectives: to reduce farm inventories, but also contribute to food security of the poor, with a social dimension" , said Nadège Chambon, researcher expert on the CAP for the think tank "Notre Europe". With this new legal base, the European Commission would have any legitimacy to buy food in the absence of surplus, or to expand the range of products supplied.

But the refusal of a handful of countries, including Germany, buried the project. These states were opposed to the feeding program is funded by the EU budget.In 2010, the current Commissioner for Agriculture, Dacian Ciolos, submitted an amended version. "It would increase the share of the envelopes of the EU, but also to open the co-financing private foundations, for example," says Nadège Chambon. The search for a compromise failed again today: Germany, United Kingdom, the Netherlands, the Czech Republic, Denmark and Sweden continue to oppose the text, forming again a minority of block which makes it impossible to vote.

What are the arguments of the opposing countries?

The strong position of these six countries is based on a jurisdictional issue. "In principle, assistance to the poor is good, but it is the duty of national states," said the German representative, the Secretary of State Robert Kloos, advocating that it be spring " national budgets and not the European agricultural budget. "In Germany, moreover, the associations are very few appeals to the European program, with emphasis on regional governments, municipalities and churches. (Read on the subject: Germany has does not (the restaurants) heart?)

In April, the Court of Justice of the European Union, seized by Germany, has proved him right, by canceling the article to fund the distribution of aid from the budget of the CAP.

And those of his supporters?

The European Commission is in turn firmly attached to the device. Members highlight the growing needs of the poor, still weakened by the recent rise in food prices."In 2006, an estimated 43 million people in the EU-25 were at risk of food poverty," she recalled in a discussion paper.

"The CAP has imposed tariff protection which may themselves have negative consequences on the food purchasing power of citizens. The European Union would have a real legitimacy to helping people by providing food aid to the poor" Nadège Chambon also observed.

Program funds be at risk in the short term?

Yes, largely. The decision of the Court of Justice already prevents the European Commission to use the budget of the CAP to fund the program in 2012, depriving him of more than 80% of its resources. Result, its funds could rise from 480 million euros this year to 113.5 million in 2012, since only the original part of the program, the distribution of the surplus can be maintained."The associations are likely to distribute 130 million meals in less than in 2012," responded Didier Piard, head of advocacy at the Red Cross.

Despite the determination of the Commission and the outrage of European public opinion, "I do not see many positive outcomes, both the position of countries who oppose the program seems strong," said Nadège Chambon. In anticipation of the forthcoming negotiations, the states in favor of maintaining the program should continue intense negotiations to bend the skeptics.

Casino, which owns 54.8% of Exito, said it plans to subscribe to the capital increase in the amount of its share, maintaining its controlling stake in Exito.

Shares not subscribed by shareholders will be allocated to international investors and individual shareholders in Colombia, said the French group.

The subscription period runs from September 5 to 23.

The German and French banks have adequate capital to be provided Thursday in response to reports that the International Monetary Fund (IMF) considers that the European banking sector suffers from a lack of capital.

According to a European source, the IMF estimates that European banks may face an equity gap of 200 billion euros to tackle the debt crisis in the euro zone and a slowdown in growth.

Last Saturday at the annual meetings of the Federal Reserve, the IMF director Christine Lagarde had called for a recapitalization "substantial" financial institutions in Europe.

"French banks are well capitalized," said a Reuters spokesman for the French Banking Federation (FBF)."They have increased their capitalization since the crisis."

When the MEDEF Summer University in Jouy-en-Josas (Yvelines), the budget minister Valérie Pécresse also indicated that French banks had sufficient capital.

"I believe that there is no concern to be for French banks," said the minister, echoing the words of the Minister of Economy, Baroin Wednesday night on France 3.

Earlier in the morning, German banks have also found that the fears of the International Monetary Fund (IMF) regarding a possible lack of capital were not justified.

"Banks are well capitalized," said Michael Kemmer, director of the BdB, in an interview with German daily Die Welt.

The BdB represents some 210 private banks including Commerzbank and Deutsche Bank.

BACK SECURITIES BANK

"We do not understand how the IMF comes to these conclusions," he responded in turn the association of German public banks VoeB.

Christine Lagarde's statements of last weekend cause since the beginning of the week an outcry in Europe.

The European Banking Authority (EBA) in particular reported that banks in the European Union did not need to be massively re-capitalized.

Concerns about the crisis of debt in the euro area and the worsening economic climate, however, continue to weigh on European financial stocks.

The European banking index declined 0.55% Thursday to 11:15.

In Paris, Crédit Agricole and BNP Paribas, highly exposed to sovereign debt of peripheral countries in the euro area, drop respectively 3.81% and 2.29%.

German bank Deutsche Bank sells 2.89% -1.38% Italian Unicredit.

A German minister, also vice chairwoman of the CDU, argued Tuesday the idea of ​​conditioning in the future the grant of European rescue fund for financial guarantees, about which Berlin has quickly sought to differentiate themselves.

"Several states are working hard to meet the debt service. This should be welcomed.But to maintain these efforts over the long term, it is the collateral, "found the Labour Minister Ursula von der Leyen, the public television channel ARD.

Minister, Vice-President of Christian Democratic Party of Chancellor Angela Merkel has suggested that the collateral in the form of gold reserves or investments in industrial enterprises.

These comments do not reflect the position of the German government, it was quickly declared a government source.

Most important, they added, is that the assistance is tied to strict conditions.

Demand for Finland to see his loans secured by assets, condition sine qua non for participation in the plan of aid to Greece, has sparked a lively swirl across the euro area. Austria, the Netherlands and Slovakia have called for particularly enjoy the same treatment.

German officials had not so far expressed only informally on the issue, saying the majority feared that demand for Helsinki does a series of similar requirements in the euro area.

In his position as Minister of Labour, Ursula von der Leyen has no direct say about the German policy vis-à-vis the euro area.But the debate is lively in the action of the CDU Angela Merkel on this issue of the debt crisis.

On Monday, the Dutch Finance Minister Jan Kees de Jager had found the agreement illegal Finnish Greek state and said he would not accept it.

The rating agency Moody's has in turn criticized a scenario considered negative for the credit rating of Athens and that of other countries helped.

"Many countries reject the solution that Finland has negotiated for itself to the disadvantage of all others," said Tuesday the Austrian Minister of Finance, Maria Fekter.

"Regarding the collateral, we must find a solution acceptable to all States, and I see no trace so far," she said.

Earlier, Bloomberg reported that Finland had expressed readiness to modify the agreement with Greece.

"This is a technical solution that works well, but if this particular model is not possible, then we must look elsewhere," said Finnish Prime Minister Jyrki Katainen in an interview at the agency.