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The government deficit in France was equivalent to 5.2% of gross domestic product (GDP) in 2011, writes Les Echos Thursday on their website.

The first estimate of the deficit is to be published by INSEE Friday morning.

The objective of the Finance Act was 5.7% and the government indicated it could be 5.3%.

Asked by Reuters, the Budget Ministry did not wish to comment.

The government and the two main candidates in the presidential election, the socialist Francois Hollande and Past President Nicolas Sarkozy pledged to reduce the deficit (which includes State, local and social security) to 4.5% of GDP at end 2012 and 3% in late 2013.

The European Central Bank has inflected his speech Thursday with a warning of unexpected inflation and a call to governments and banks in the euro area so that they take over in order to consolidate the stabilization of the economy of the block.

She has once again lowered its growth forecast for this year and next year after leaving its key rates unchanged, noting that the prospects for the economies of the area have e ; ty much worse without the massive liquidity injections carried out as part of its refinancing operations with two long-term (LTRO) in December and February.

The ECB began to see signs of stabilization at the beginning of the year, but the expected recovery could take longer than expected. "Available economic indicators confirm signs of stabilization in the euro area, but the economic outlook remains subject to downside risks," said ECB President Mario Draghi, when the press conference that followed the announcement of maintaining the refi rate to 1.0%.

Thus, for 2012, the ECB table does on a GDP growth between -0.5% and 0.3%. For 2013, it anticipates a range between 0% and 2.2%. Three months ago, the central bank of euro countries anticipated a change between -0.4% and 1.0% for 2012 and a range of 0.3% to 2.3% for 2013.

The recent 20% increase in oil prices has, however, prompted the ECB to raise its inflation forecast and anticipate a price increase of between 2.1% and 2.7 % this year, against a range of 1.5% to 2.5% previously. For 2013, the price increase should be between 0.9% and 2.3%, against a previous forecast of 0.8% to 2.2%.

"Because of rising energy prices and indirect taxes, inflation rates are now expected to remain above 2.0% in 2012, the prevailing upside risks", Mario Draghi warned.

The latest Reuters poll conducted among 74 economists, the ECB should keep rates unchanged this year and much of 2013.

Bund futures rose while European equities and the euro have reduced their earnings after the downward revision of growth forecasts of the ECB. 

"From our perspective, the projections (the ECB) are still relatively optimistic, while economic data showed no" stabilization ", especially in the periphery (euro area). The risks are clearly on the downside, "said Annalisa Piazza of Newedge Strategy

. NOT divisive ….. Draghi

… was confident that the operations of long-term refinancing of the ECB which resulted in the injection of more than 1,000 billion in cash in the banking system of the block it averted a crisis far more serious

. Borrowing costs for countries difficulty such as Italy and Spain have fallen sharply and Mario Draghi said that markets, including the interbank market, working again and that investors were income on assets denominated s euro

. "All things considered, we see that great progress has been made", he said. "Simply compare the situation as it was in November and what it is today."

The President of the ECB, however, called on governments and banks to take over to reinforce the recovery of European economies, calling for further progress in fiscal consolidation and further structural reforms.

The euro area economy has stabilized in recent months, partly because of lower rates in November and December the ECB and its massive refinancing operations long-term.

Its room for maneuver to fight against the crisis in the euro area seem small now, partly because of reserves that raises its action, particularly in Germany. 

The Bundesbank President Jens Weidmann has sent a letter to Mario Draghi last month to express his concerns and the former head of economic studies of the ECB, and always trè s influence, Juergen Stark ruled Thursday in a German newspaper that the quality of the balance sheet of the ECB was "appalling".

Jürgen Stark had resigned within the ECB last year to protest against decisions which he felt they were not consistent with the mandate of the institution.

"My personal relationship with Jens is excellent … No one is isolated within the Governing Council and the Bundesbank, in particular, is not isolated," said Mario Draghi. "I'm really attached to the culture and tradition of maintaining price stability, the Bundesbank," he said.

In the letter to Mario Draghi and obtained by the German business daily Frankfurter Allgemeine Zeitung, Jens Weidmann was concerned about the imbalances in the interbank clearing system of the euro area TARGET 2 and risk that would result to the Bundesbank, which will be exposed in the unlikely event of a breakup of the euro.

Mario Draghi has sought to minimize these concerns and has declined to comment on the progress of the exchange transaction of Greek debt to be finalized e Thursday at 20:00 GMT at Athens risk of exposing themselves to a default.

The net job creation show an increase of 25% in February. Almost all sectors involved in the upturn. Employees of General Motors in the United States

Hiring in the private sector has greatly accelerated in the United States in February, according to the monthly survey on employment of the consulting firm HR ADP released Wednesday. Private companies have created that month 216,000 more jobs than they destroyed, ADP says in a statement

The balance of hires, adjusted for seasonal variations, appears and up 25% from January and very close to that given to the median estimate of analysts (218,000 net job creation).

ADP has revised upward its estimate of 2% of hires in the previous month, to 173,000. "The increase in employment [... remained] solid "in February, and" almost all sectors of the economy created jobs, "writes ADP, noting that" the average monthly hires totaled 200,000 over the past five months "…. According to the survey

….. ADP, February was the twenty-fifth consecutive monthly rise of private employment in the United States

.

The main European stock markets opened in fall Tuesday in the wake of Wall Street and Asian markets, fears of an economic slowdown in China and Europe prompting investors to reduce their exposure to risk.

In Paris, at 9:30 am, the CAC 40 lost 0.83% (29 points) to 3458 points. London yields 0.56% and Frankfurt was down 1.01%. The pan-European Euro Stoxx 50 index was down 0.96% after gaining over 9% since the beginning of the year, supported especially by abundant liquidity injected by the Bank Central Bank (ECB).

The values ​​of the automobile are among the largest declines. The European sector index losing 2.2%, weighed down primarily by PSA Peugeot Citroen.

PSA lost more than 5% in the Paris Stock Exchange after the announcement of the terms of the capital increase of a billion launched after its alliance with General Motors. The French group also announced it would not pay a dividend this year.

The German Merck was down 1.3% after reporting fourth quarter results below expectations, within the scope of a claim to half mast for the crystal used in the tee ; léviseurs flat screen.

The earnings season in Europe has been relatively poor. According to Thomson Reuters data Starmine, only 49% of STOXX 600 companies have published the results meet or exceed expectations, against 68% of companies S & P 500 on Wall Street.

"The macroeconomic data from the euro area, while the main liquidity operations of the ECB are completed, have aroused fears of a recession and de ; ceived markets. To make matters worse, China has lowered its forecast for growth ", says Koen De Leus for KBC Securities in Brussels.

Markets have also coldly received the message sent Monday by Athens, which it was prepared to force private creditors to take losses on Greek debt. Private investors have until Thursday to say whether they intend to or not participate in the exchange of debt that should allow Greece to erase more than 100 billion euros of its debt, as part of its second bailout of 130 billion euros.

In the match that opposed them remotely Friday field of employment, Nicolas Sarkozy announced at the Petit Couronne do restart the refinery Petroplus temporary while in Florange, Francois Hollande has proposed to oblige companies to find a buyer. Relive the game minute by minute.

This afternoon, a new match was held at a distance between Nicolas Sarkozy, visiting the Petroplus refinery in Petit Couronne, and François Hollande, who moves in Florange to meet with employees of Arcelor Mittal. Two strategic locations in the field of employment. The outgoing president has announced a 6 month contract with Shell and restart the refinery. The Socialist candidate, himself, proposed a law requiring companies to find a buyer when leaving a site. Back to the duel of "saviors of plants".

2:05 p.m.: Arcelor Mittal is dismissed by the High Court of his application for entry ban to anyone outside the service in its application was primarily site.Cette the many journalists covering the occupation of the site by employees.

14:00: Nicolas Sarkozy said that would be discussed next week in Parliament a bill to prevent the diversion of assets of a failing firm, regarding the Petroplus oil declared bankrupt since late January.

14:00: "Now we need you to fight for the more difficult is that the buyer", said also the head of state. There are 3 or 4 buyers interested [...] So far we have not yet found "

. 1:52 p.m.: With regard to the financing, the president ensures that for two months of work needed to restart the refinery, "was 50 million. The 20 million were transferred to the state, 10 million will come through quotas CO ², and the other 20 million cash avanace Schell in "

1:50 p.m. "Last night later, we signed a processing contract, which guarantees refining activities for a period of 6 months. If there was no contract, it was over. The oil company will provide the gross pay and the cost of processing.

1:40 p.m.: Francois Hollande reacted to the news of Nicolas Sarkozy: "It is in fact only get the former owner of the site. This is going to the most urgent."

1:20 p.m.: "I am a word. It is signed" with Shell, said Nicolas Sarkozy, adding: "I'm not saying it saves the refinery, but it is signed, it makes the job for six months ".  

Holland made two proposals

1:18 p.m.: Holland wishes to clarify that he came as an MP, and is prepared to file a bill: "When a large firm does more than one production unit but does not give the, we will do a bill that will force him to appeal to buyers. " Another proposal: the businesses that use too much to pay the interim benefit of unemployment contributions. He is applauded by employees.

1:10 p.m.: The Socialist candidate speaks. He says he wants to defend the steel industry, "sector of excellence". "I come before you to make commitments. I am aware of the anguish that is yours." He adds, to the attention of its competitors: "There are candidates and candidates of the people who claim to serve the people"

13.00: Francois Hollande arrived at the plant Arcelor Mittal, where he has not spoken yet. It stands in the middle of union representatives, who express their demands, after climbing a truck.

12:45: The president finally arrives on the site. Francois Hollande, is always expected Florange.

11:50: The PS deputy for Seine-Maritime, Laurent Fabius, was invited by surprise on the Petroplus refinery site to welcome Nicolas Sarkozy.

11:45: Nicolas Sarkozy will meet in closed session with the staff representatives and administrators of the Petroplus refinery.

Faced with a record unemployment rate since 1999 that is almost symbolic of the 3 million people, the head of state has recently invested personally in two emblematic cases of companies threatened: the Lejaby lingerie factory Yssingeaux (Haute-Loire) and the solar panel manufacturer Photowatt to Bourgoin (Isère). Candidate since Feb. 15 to a second term, Nicolas Sarkozy made a record of his two electoral argument to illustrate his determination to protect "the France of the factories". "If I had said as they (the Socialists) + we + can not do anything, Alstom would no longer exist, Photowatt we do speak of it and Lejaby would have been wiped off the map", he said Thursday at a public meeting in Lille.

The promise made yesterday by Nicolas Sarkozy to ban hats and retreats, golden parachutes has a deja vu. The candidate of 2007 there was already risky. The President also, during his tenure. But from words to action, there is a gap … Nicolas Sarkozy Golden Parachute

What he said in 2007: At the time, the future president described the golden parachutes "detestable practices" and announced their removal "summer 2007" in the name of "values ​​that are not (his) ".

What he did: It is clear that five years later the "golden parachutes" still exist. Certainly, there have been few measures of supervision. But they were sometimes taken by the UMP majority against the Government's view.

In August 2007, the TEPA law requires and golden parachutes are subject to a decision of the Board, and is linked to performance criteria. But the announced removal is not requested. In 2008, during the speech of Toulon, the head of state announced that executive compensation "must be indexed to the actual economic performance of the company. They should not be eligible for a golden parachute when they committed mistakes or put their company in difficulty ". No law follows.

In 2009, following the scandal of the golden parachute of the former CEO of Valeo and stock options of Societe Generale, Nicolas Sarkozy puts it: "There should no longer be any golden parachutes, it should not be any bonuses, distribution of free shares or stock options in a company that receives government assistance, which implements a social pronounced or that relies heavily on partial unemployment. " A decree to this effect was taken in April. But this prohibition applies only to companies that received aid from the state (banking and automobile sectors) until end 2010. And it is not retroactive.

Finally, 21 October 2010, MEPs adopted an amendment during consideration of the budget which provides that golden parachutes may not exceed 'twice the highest severance benefits, provided in case of dismissal by the agreements business or industry. " Baroin, then budget minister, has yet attempted to oppose it. He states that "the government has already done much" and argues that "these elements of compensation (that) feed business competitiveness to attract the best subjects."

Pensions hats

Unlike the golden parachutes, Nicolas Sarkozy has never announced the elimination of pensions hats. But he has often denounced the abuse. And his government has taken steps to harden their taxation. That said, in February 2010, matter in full Proglio, Luc Chatel, a spokesman of the government has not asserted that the least critical of retired boss of Veolia's hat fell within "the hard". He even tried to justify it. And as for golden parachutes, the government has sometimes sought to oppose regulatory ambitions of its majority

What he did:

The decree of 20 April 2009 prohibits hats retreats for executives of companies that have benefited from state assistance, but this provision shall be valid only until the end of 2010. Today, they are perfectly legal.

In October 2009, MEPs in the committee adopt a reform of the governing pensions hats … but waive the government's request. Eric Woerth, budget minister then, justifies its position by the fact that this system affects many thousands of frames and not only the great leaders. The government settle a code of ethics established by the employers.

In October 2010, MPs return to the fray and adopt a law to limit pensions hats. The latter will no longer exceed 30% of the remuneration of the last fiscal year. Unusually, the majority supported the opposition. The government opposes it but will eventually bow, relying on "wisdom" of the assembly.

Taxation has for its part, was weighed down twice in 2010 (particularly in the context of pension reform). And surtax has once again undergo a hardening at the end of last year with the introduction of a progressive scale with three slices according to the amount (7%, 14% or 21%) against two previously (6 % or 12%).

The high wages

What he said

Wednesday night on France 2: "From now on, the remuneration of top leaders will be voted on not by the board, where typically there are many friends, but by the general meeting of shareholders. (They) will be published in the legal documents to be published by the company "

What he has said: ……. In June 2006

. at Agen: "At the very least, is that the leaders of large listed companies assume their remuneration to their employees, their shareholders, and that, therefore, remuneration of each officer is not secretly fixed in the closed session of the Board but publicly endorsed for each of them by the general meeting of shareholders, and, of course, nominally published in the annual report. " What he did

:

Actually, not much thing, except the temporary ban on stock options and bonus shares for companies aided by the State until the end of 2010. Otherwise, the government has clearly shown its refusal to regulate comprehensively Wages and Salaries Francois Fillon saying, still in 2009, such a move would have "no real technical, economic, unless you want naturally regulate all remuneration ". And rely on the wisdom of big business and its ethics code. The measures proposed Wednesday to stay elsewhere in this lineage. Existing in the Anglo-Saxon voting remuneration by the general meeting of shareholders does not guarantee the end of excessive compensation. And the principle of transparency on executive compensation has already been included in the New Economic Regulations Act of 2001.

At the brink, the euro area has again died Tuesday morning at the fire that threatened to bring Greece but the road is still long and bumpy before the country only emerges from two years of an unprecedented crisis.

Under the terms of the agreement reached shortly before 4:00 Tuesday and after thirteen hours of negotiations, the Greek debt will be reduced to 120.5% of GDP by 2020 through a new public loan program of 130 billion euros and a restructuring of debt held by private creditors.

They have finally agreed to a 53.5% discount on their obligations through a share swap that will erase more than 100 billion Greek debt. 

The European Central Bank and national central banks in the euro area also participate in the plan by giving up some profits on Greek bonds they hold.

"We have reached an agreement on a new scale for Greece and a private sector that will lead to a significant reduction of the Greek debt (…) to ensure the future of Greece in the euro area, "said President of the Eurogroup, Jean-Claude Juncker, after the meeting.

The euro jumped by about half a cent against the dollar after the announcement of this agreement by Reuters. 

ATHENS UNDER SURVEILLANCE

The restructuring of the Greek debt held by private creditors will commit this week, said Greek finance minister, Evangelos Venizelos.

It is expected to close in early March, when the Greek authorities should also have implemented a list of priority measures in the program if they want to get the first disbursement.

These public funds are needed to Athens could repay 14.5 billion euros of bonds maturing on March 20.

Troika EU-IMF-ECB, which oversees the implementation of reforms and conducts quarterly reports will be further strengthened and its resources increased. 

Under the second bailout, the European Commission will soon send dozens of permanent inspectors in Athens to ensure the smooth running of the technical program and monitor the implementation .

This presence on Greek soil will be accompanied by the creation of a special account to process a priority debt repayments Greek, whose principle is enshrined in the constitution within two months.

NO MIRACLE CURE

This agreement multistage was made necessary by the state of Greek public finances as they appeared in a confidential report prepared by the EU, the Central Europe ; enemies and the International Monetary Fund and obtained by Reuters. 

The document also shows that in case of slippage in reforms introduced in Athens or in terms of economy, Greece's debt could reach 160% in 2020, about his current level.

The new aid package will not be a miracle cure. The Greek economy shrank by 7% annual rate in the last quarter of 2011, more than expected, and the new austerity measures would further exacerbate the situation.

Diplomats and economists do not expect this new bailout plan that solves all economic problems overnight, Greek and many believe it will take at least ten years or more for fulfill this task.

Air Liquide, whose growth has slowed sharply in the fourth quarter, however, table of new growth in its net profit in 2012 barring any major degradation of the situation after one year 2011 range by emerging and resistance in Europe.

The world's largest industrial gases account on a portfolio of opportunities 12 months – that is to say that projects the group is likely to win – a record level of 4.2 billion euros at end 2011, against 3.9 billion euros at end 2010.

Air Liquide announced Friday sales up 7.2% to 14.457 million euros in 2011, down 6.8% on a comparable basis, and net income of 1.535 million, up 9.4%, with an operating margin stable at 16.7%. 

Analysts polled by Reuters on average expected a turnover of 14.479 million euros and net profit of 1.533 million.

The cluster gas and service, which provides the bulk of group sales, was up 7.5% of its sales on a comparable basis, driven by a 20% increase in sales in countries é ; mergents thanks to strong growth in demand and start-ups and ramp-up units. Emerging, high growth, now represent 21% of sales against 15% in 2008.

The growth of this division has slowed to 1.9% in the fourth quarter on a comparable basis, its lowest level since late 2009, reflecting an unfavorable comparative and global caution client group, particularly in the steel and electronics.

The group, whose competitors Linde German and American Praxair and Air Products intends to pay an increased dividend to 2.50 euros from 2.35 euros for 2011 against 2010.

"The signing of new contracts and continuous innovation to expand its businesses allow the group (…) to be confident in its medium term development program in the 2015 Alma" , said in a statement the CEO Benoît Potier. 

This strategic plan, presented in December 2010, is an average annual growth of 8% to 10% of sales and sustained growth in net income by 2015.

Decisions of industrial and financial investments, totaled 2.0 billion euros in 2011 against 2.2 billion in 2010, with the group's entry in Mexico, Ukraine and Turkey.

The three-party coalition government in Greece have agreed on a set of new austerity measures to implement in return for a second international aid plan ; Athens.

This agreement was confirmed by Mario Draghi, the chairman of the European Central Bank (ECB), itself informed by the Prime Minister of Greece Lucas Papademos.

"A few minutes ago, I received a call from the Greek Prime Minister said that agreement had been concluded and approved by the major parties," said Mario Draghi in Frankfurt.

These austerity measures are required by the ECB, the European Commission and the International Monetary Fund (IMF) to release a second with at least 130 billion euros to avoid bankruptcy in Greece. 

The negotiations between the socialist PASOK, New Democracy conservatives and the far-right LAOS have been difficult because of the hostility displayed by much of the population, already subjected to a rigorous treatment drastically since 2010.

Standard & Poor's on Tuesday cut score of 15 large banking groups, mainly in Europe and the United States as a result of a major review of its rating criteria.

In total, the U.S. agency has reviewed the status of 37 major global banks. In particular, it confirmed the notes of BNP Paribas and Societe Generale."The lowering of S & P both on European and U.S. banks has undermined confidence in the markets," said Terry Pratt, IG Markets.

"This decision has overshadowed the progress made in Brussels on the issue of scaling the EFSF."

Another analyst, Guy Lebas of Janney Montgomery Scott, said that these banks will see their funding costs rise.

This month, officials from S & P indicated that they would gradually announce the ratings updated for more than 750 banking companies in the world, starting with the principal. New announcements are expected in the coming weeks.

For large banks, the rating adjustments are larger than S & P has provided for the entire industry.