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The gloomy economic outlook could convince the EU to show some flexibility on deficits of countries like Spain, but the tidal wave of fiscal austerity will continue until the debt crisis will not be overcome.

The European Commission publishes its updated economic forecasts Thursday for 2012 and 2013 for 27 economies of the bloc. According to several sources, they show a significant drop in activity and will spur debate among member states on a revision of targets for this year and next year.

A European official working directly on the case told Reuters on condition of anonymity that the current targets would gradually appear untenable and could be adjusted upon publication of economic forecasts Spring, May 11

"The (European) Commission does not want to look ridiculous by insisting on unrealistic goals and there will be adjustments," he said. 

According to three other sources of high rank, the Commission could allow member states to go beyond a few decimal points their goals for 2012 while keeping unchanged those of 2013, when most European countries promised to return to below 3% under the Stability and Growth.

The EU executive could also decide to defer a year, until 2014, achieving this goal to reflect the change in environment since the publication in November An estimate of the growth was still 0.5% in 2012 and 1.5% in 2013. 

REVISION "SMALL OR VERY SMALL"

For several weeks, several countries, including Italy and Spain have questioned the paradigm of austerity inspired by Germany and called for a shift of policies e ECONOMIC towards less spending cuts and measures to support the growth and fight unemployment.

European leaders have addressed this issue in late January at an informal summit and on Monday, Britain, the Netherlands, Italy, Spain and eight other countries felt that the euro area should try to focus on reactivation of growth in the EU rather than solely on fiscal consolidation. 

Spain is particularly under the spotlight since the new center-right government announced in December that the deficit would reach 8% of GDP or more in 2011, well above the pre ; visions.

If Madrid continues to provide, at least in public, that the deficit will be reduced to 4.4% this year, the threat of a recession makes this task almost impossible.

One source said that Spain and other countries hoped the Commission would show a certain "understanding" while many economies are facing recession in their second three years. This source added, however, that we should not expect a revision other than "small or very small."

According to the Wednesday edition of the newspaper El Pais, the Spanish Prime Minister Mariano Rajoy could request within ten days to review the Community executive from 4.4% to 5% over the current target of deficit reduction.

Rajoy and his economy minister, Luis De Guindos, met with Jose Manuel Barroso, Commission president, and Olli Rehn, Commissioner for Economic and Monetary Affairs, last Tuesday Aftern s that Reuters found that Brussels plans to sanction Madrid for not sufficiently reduce the deficits. 

NO APPETITE NORTH

The economies of both the euro area and EU shrank by 0.3% over the last three months of the year and despite signs of stabilization, analysts questioned ; s by Reuters believe that activity will fall by 0.4% in the euro area in 2012 before recovering to sluggish growth in 2013.

But, with a support plan for 130 billion euros to Greece only adopted and faults are doing day in Portugal, the European Commission and countries whose fiscal position is the most sound estimate that deficit reduction must remain a top priority. 

"Y-Will there a discussion of deficits in the Eurogroup? Perhaps, but there is little or no appetite or sympathy at all for a softening of goals," explained , a European source involved in discussions. "Ask the Belgians, or the northern countries (EU) or the Germans."

Under pressure from the European Commission, Belgium has announced the freezing of € 1.3 billion of expenditures in excess of 11.3 billion euros in savings already announced es. The country has no intention to be flexible with their peers.

Germany, Finland, the Netherlands and Luxembourg are also reluctant to revise downwards the targets because they believe that fiscal consolidation is a precondition for a sustainable growth in the future and that the European crisis is above all a crisis of confidence.

"Review downward targets would be of no help," the source said, adding that it would also undermine the credibility of the new rules on monitoring deficits and debt which the EU has since the crisis began in 2009. 

Under these rules, a country must now submit its budget to advance to the Commission and can be automatically sanctioned and fined in case of deficit greater than 3% of GDP and debt greater than 60% of GDP.

Last month, 25 of 27 Member States have even gone further by agreeing to a rule limiting their deficits to 0.5% throughout the primary cycle.

The Swiss group has nominated Tuesday for the resumption of the LyondellBasell refinery. Threatened with closure, the site located in Berre is stopped since January 4. Over 350 employees are affected. LyondellBasell refinery in Berre

This is a gleam of hope for employees of LyondellBasell refinery. Threatened closure of the site-Berre l'Etang located in the Bouches du Rhone interested investment group Klesh. In parallel, the Swiss group has already made an application for three Petroplus refineries in Europe, including the site of Petit-Couronne, in Normandy.

The group Klesch just sent following discussions with the Inter advice and a letter of intent after which he expressed interest in buying the refinery and steam cracker, "say the unions CFE / CGC, CFDT, CFTC, CGT and FO in a statement, asking the current management and public authorities to investigate this possibility "with the utmost seriousness." Contacted by AFP, the Swiss refused to any immediate comment

. "A credible alternative to the closing"

According to the unions, this track, initiated by the unions after the announcement in November by the French chemist Arkema a sale of its vinyl (PVC, chlorine) to Klesch, "opens a credible alternative to the closure of the refinery." Fabien Astier, CGT, highlights the consistency of the project, which would develop synergies between the refinery, steam cracker and the Arkema Fos-sur-Mer. Asked about the profile of Klesch, presented by the unions of Arkema, hostile to the sale of vinyls, like a "gravedigger," Mr. Astier said "remain vigilant". "We are not ready to sign a blank check," he warned. The group must "demonstrate its credibility through a machine vision, financial and social in line with our requirements on this site in the interests of employees and the entire petrochemical site Berre," said the Inter.

The current management had announced the proposed closure of the refinery September 27, 2011, after failing to find a buyer, citing "heavy losses". This project, which was to receive 370 of the approximately 1,250 employees who work on the total complex of the U.S. group. LyondellBasell around the Etang de Berre, had resulted in the immediate vote of strike, with blocking units, for nearly two weeks before the granting by the direction of a reprieve. The refinery is currently "mothballed", that is to say, but stopped maintained to be ready to restart in case of buyer, that unions are actively looking.

Tens of thousands of protesters gathered Sunday around the Greek Parliament and some clashed with police a few hours of the vote by MPs on a bill consisting of austerity measures such drastic and unpopular required by the EU and the IMF in exchange for a new rescue plan.

Greek Prime Minister of Greece Lucas Papademos warned against the "economic chaos" in case of rejection, while Germany has warned that Greece should stop being a "well bottomless "`.

After three days of tension and political threats, Parliament began shortly after 14:00 (12:00 GMT) to examine the bill to save 3.3 billion euros thanks to lower wages, pensions and job cuts public. 

The vote must take place before midnight (2200 GMT), said the finance minister, Evangelos Venizelos, "because on Monday morning, the banking and financial markets should have received the message that Greece can and will survive. "

"If the law is not adopted, the country will go bankrupt," warned the Minister that a Communist deputy threw the pages of the bill on the floor of the Assembly.

About twenty members of the coalition of Lucas Papademos have threatened in recent days to vote against the text and six government members submitted their resignations, but the Prime Minister will still theoretically supported by a large majority.

But the Greek population does not intend to accept the new austerity measures without saying anything. 

"The Greek people RAISE"

Tens of thousands of people gathered in the afternoon around Parliament to lobby MPs, the largest mobilization for months.

"Enough is enough!" Exclaimed Manolis Glezos, 89, a veteran of the extreme left.

"They have no idea what it means to an uprising of the Greek people. And the Greek people, ideas all political persuasions, is beginning to lift, "said the hero of the resistance to the Nazis during World War II

.

"annihilation These measures will not go", he further promised, mouth covered by a mask to protect themselves from tear gas fired by police to de pledge Syntagma Square, Parliament

. Some protesters responded by throwing stones and Molotov cocktails at police ….. At least fourteen

…. protesters injured were taken to hospital, police said, and about fifty others treated on site , mostly for choking. At least eight policemen were also injured.

"There is tear gas into the interior of the Assembly," said an MP, Panagiotis Lafazanis.

The new austerity plan is the price to pay for the release of an aid program of 130 billion euros from the EU and the IMF – the second since 2010.

Greece has to touch the money before March 20 to repay a state loan of 14.5 billion euros.

"Bottomless well"

Germany has turned up the heat a notch Sunday warning that Europe expected actions and not words.

"The promises of Greece are no longer sufficient for us," warned the German finance minister, Wolfgang Schäuble. 

Referring to the new austerity plan in which the Greek deputies must vote this Sunday, the minister said in an interview published by the Welt am Sonntag that the previous did not e ; tee implemented in their entirety.

Wolfgang Schäuble said that the Germans are largely in favor of an international aid to Greece. "But it's important to say that it can be a bottomless pit. This is why the Greeks will finally have to clog the well. Then we can put something. At least people are now beginning to realize that it will not work with a bottomless pit.

"Greece must do its homework to become competitive, it requires a new rescue plan or some other way that we do not want to (…)" he says referring to an output the euro area.

Asked if such an outcome is possible, Wolfgang Schäuble responds: "Everything is in the hands of the Greeks themselves. But even in that event, on which no table, they remain an integral part of Europe ".

"We are pleased to offer our assistance, but we should not give others the impression that they have not done enough. Each state is responsible for itself," explains he said.

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.

European shares retreat in early trade Monday, concerns over U.S. debt back in the news as the crisis in the euro zone sovereign has still not been resolved.

At 9:03, the CAC 40 index lost 0.84% ​​to 2971.58 points.

London yields 0.81%, Frankfurt and Milan 0.52% 1.06%. Madrid was down 0.15% after the victory of the Popular Party (right) in the parliamentary elections. The Euro Stoxx 50 index of the principal values ​​of the euro lost 0.5%.

The 10-year rate of the entire euro zone relax with the exception of Greek performance stretches of 16 basis points to 26.3%.

Softbank, a telecommunications operator which is not affected by the rising yen, jumped 8.37% on first half results historic, while the electronics group Sharp and construction equipment manufacturer Komatsu gained 6 respectively, 2% and 5.58% despite the downward revision of prospects for their result.

The surge in the yen to a new record high against the dollar, however, limited the gains.

The Nikkei rose by about 4% since the beginning of the month, while the U.S. S & P has won over 13% and move towards its biggest gain in a month since October 1974.

General Electric announced Friday a 18% increase in quarterly profit, supported among others by its activities in aircraft engines or in health facilities.

The first American industrial conglomerate plans to increase its operating profit per share of a double-digit percentage next year, despite a "volatile global economy," according to CEO Jeff Immelt.

"We sail on a sea of ​​oil in a volatile global economy," he said in a statement.

The group reported a profit attributable to shareholders of $ 2.34 billion (1.7 billion) in the third quarter, or 22 cents a share, against $ 1.98 billion, or 18 cents per share, a year earlier.

This result includes a charge of eight cents per share for the redemption of preference shares sold to the fund of Warren Buffet Berkshire Hathaway during the financial crisis.

Excluding items, earnings totaled 31 cents per share, a level consistent with the consensus analyst forecasts Thomson Reuters I / B / E / S.

The turnover stood at 35.37 billion dollars, higher than the 34.94 billion expected by analysts.

"The turnover was high and the rate of organic growth was strong," said Jack De Gan, Harbor Advisory.

"They give us a preview of the next quarter and beyond."

GE has offset the slowdown in demand in the United States and Europe thanks to its strong presence in emerging markets, including China, Russia and the Middle East.

In early trade, the share was 1.20% while the Dow Jones clinching 1.13%.Since the beginning of the year, action has lost about 9% of its value.

This decline is due to the fear caused by a smaller margin than expected, especially since the benefit has itself been supported by favorable taxation.

"The margins came out below our expectations and are down from one year to another in the four major industry segments," noted Jeffrey Sprague of Vertical Research Partners.

These results furthermore suffer from the comparison with other industrial groups. Honewywell has reported Friday a profit increase of 45%. Caterpillar and 3M, other barometer of the health of American industry, publish next week.

The French and German leaders, as well as European leaders and the Executive Director of the IMF will meet in the evening of Wednesday in Frankfurt for a preparatory meeting at the EU summit on Sunday the crisis of the euro.

French President Nicolas Sarkozy and German Chancellor Angela Merkel will be accompanied by their finance ministers Baroin and Wolfgang Schäuble, the ECB President Jean-Claude Trichet and his next successor, Mario Draghi, the European Council President Herman Van Rompuy and that of the European Commission Jose Manuel Barroso, and the IMF Executive Director Christine Lagarde.

"No statement is expected at the end of this working meeting," said President of the French Republic.

The meeting came a day after the lowering of the rating two notches by Moody's Spanish, which has increased pressure on European leaders urged to engage at the summit of 23 October breakthroughs to resolve the sovereign debt crisis.

The rating agency had announced the day before she gave herself three months to assess the French Aaa rating and stable outlook, on a background of slower growth, crisis in the euro area and calls for a recapitalization of banks .

In this context, the markets have high expectations of the European Council to be held this Sunday, and during which France and Germany have promised to present a solution "comprehensive and lasting peace" to the crisis of the euro.

A French government source said French President Nicolas Sarkozy did not rule out further action to protect the signature of France to the rating agencies. see

"I do not rule out making further reforms if necessary," said the French president at the Council of Ministers on Wednesday, according to remarks reported by a government source."He did not rule out doing more, he said, 'We'll see if we fit,'" the source said.

Faced with the hopes raised by the top financial centers on Sunday, German Chancellor reiterated its invitation Wednesday markets patience.

"These sovereign debt has accumulated for decades, so we can not resolve in a single peak. It will be hard work over the long term," she said at a conference the press.

A theme echoed by José Manuel Barroso. "We are at a decisive moment, which requires clear answers and determined responses together," he said."Do not expect us to be at the end of our troubles."

"Finito BASTA"

According to German newspaper Handelsblatt, citing government sources, Germany is considering using the European Financial Stability Fund (EFSF) to help states pay the interest on their debt.

This could take the form of a suspension of payment of interest through the issuance of zero coupon by the EFSF, the newspaper said.

Some countries such as China, India and Brazil could also contribute to strengthening the capacity of the fund, said last Handelsblatt.

Berlin, however, tried to put an end to speculation about a possible increase in funding for the EFSF.

"There is no discussion of an increase in excess of 440 billion euros, that's it, finito, basta," said the spokesman for the German finance minister, Wolfgang Schäuble.

Two senior officials of the European Union had earlier denied reports the British daily Guardian that France and Germany have agreed to carry the EFSF to 2,000 billion euros as part of plan to resolve the crisis debt in the euro area. and

One of the two leaders said it was not easy to increase the capacity of the EFSF, currently at 440 billion euros.

Leveraging the EFSF? "NOT SO SIMPLE"

"It is naive to think we can do this kind of calculation and come up with a nice round figure of 2,000 billion.It's not that simple, "he said.

European leaders, however, could agree on Sunday means the multiplication of the response capacity of the EFSF, allowing it to secure some of the new issue of debt in the euro area, said on Tuesday European officials.

Ensuring, for example, the first 20% to 30% of potential losses, the EFSF could triple or five overall capacity for intervention.

With about 300 billion yet available, the EFSF could thus increase its fire power to more than 1,000 billion or 2,000 billion, which would be sufficient to cover the financing needs of Spain and the Italy in 2012.

Greece is still mired in recession and the debt is expected to reach 357 billion euros this year, equivalent to 162% of its gross domestic product. Most analysts agree that this debt can not be honored by Athens.

The country is experiencing this morning for a general strike for 48 hours decided to protest against austerity, and scuffles broke out in parliament between demonstrators and police.

SAP, the world of enterprise software, announced Friday a higher-than-expected results for the third quarter, resulting in strong growth in the German action.

By 11:25 GMT, the action of SAP advanced 2.21% to 41.44 euros, making slightly better than European technology index values ​​(2.18%) boosted by the good results of Google.

"The backlog of SAP remains available and the companies continue to invest in IT," said SAP in a statement, responding to those who fear a decline in spending.

During the third quarter, the group recorded a turnover of 3.41 billion euros against consensus of 3.32 billion analysts according to Thomson Reuters I / B / E / S.

Operating profit rose 23% to 1.13 billion euros, against one billion expected by analysts.

SAP confirmed that, for all of 2011, he was counting on the top of its forecast range for growth in sales of software and related services, ranging from 10% to 14%.

The operating profit of the group should also be near the top of the range of 4.45 to 4,650,000,000 euros.

"We are positively surprised by the level of licensing. We believe that new products have enabled SAP to grow its revenues," said Oliver Finger at DZ Bank.

Apple Tuesday unveiled its new iPhone, an updated version of its iPhone 4 launched in June 2010, but not a real 5 iPhone as some fans had hoped.

The disappointment of some fans who were waiting to be surprised by something sensational, has plunged the share price. End of the session, it was trading down over 4% to 359.70 dollars.

The new CEO of Time Cook assured his first major launch of a new Apple product with aplomb. The emblematic figure of the group's founder and now chairman Steve Jobs, made no appearance at the event, as some had hoped.

The new iPhone, the iPhone 4S, faster, improved and equipped with voice recognition.The camera feature has been improved.

"It's been 16 months and all we have is a processor in the iPhone A5 existing four," said Colin Gillis, an analyst at BGC Partners.

This was highly anticipated iPhone while the phone in Google's Android software, such as those of South Korea's Samsung Electronics, Apple's approach.

More than 550,000 Android devices, including tablets, are turned daily.

Apple has sold over 20 million iPhones during its third fiscal quarter, which ended June 25

The iPhone, which represents over 40% of the revenues of the California firm, has been a success since its release in 2007.This smartphone has the task Cupertino one of the great world of consumer electronics.

According to Nielsen, the iPhone is number two in the U.S. with a market share of 28% with 43% behind Android.

Worldwide, shipments of the iPhone increased by 9.1% in the second quarter, while those of Nokia handsets dropped by over 30%, which has made Apple the world leader with a share of market of 18.4%, according to iSuppli IHS. Samsung, whose shipments rose faster, sometimes very quickly with a market share of 17.8%.

Tuesday's show, "Let's talk about iPhone," marked the unofficial debut Tim Cook since his arrival in the general direction of Apple in late August, replacing Steve Jobs, who was on temporary sick leave since January.