International & World Report

From our correspondent in Brussels

For the euro, auctions have never been so high. The Heads of State or Government rejected twice by the end of the game. They meet Wednesday night to decide on a "package" massive enough to stop the contagion of debt, no more poor national treasuries and banks already weakened by the crisis.

Prime Minister François Fillon asked Tuesday the issues preventing a failure "could push the European continent to unknown lands." The common currency is, with the single market, the cement of the EU. Dramatization, she stretches under the gaze of politicians: in Rome, London or Berlin, the crisis of the euro weakened government coalitions. The majority of Silvio Berlusconi Tuesday seemed on the verge of bursting.David Cameron faces a near-rebellion in its ranks conservatives, not on the euro but even on membership of the United Kingdom to the EU.

Defense against infection

For now, Angela Merkel seems less threatened. But witness the influence of its parliamentary majority on crucial European choices, the Chancellor will accept the decisions of the summit after obtaining a travel order tightened the Bundestag. "There is no need to top, just look at the parliamentary debate before the Bundestag on TV," a European diplomat scoffed Tuesday. At the heart of the debate in Germany find themselves the roles of the European bailout fund and the ECB's refinancing loans become vulnerable to large countries like Italy or Spain.

The drama may come from Silvio Berlusconi.Italy, the third continent's economy, has taken the place of Spain in the nightmares of the leaders of the euro area. To it they think of first when they say they want to erect a barrier against infection. Nicolas Sarkozy has strongly requested the Italian Prime Minister to introduce an austerity plan credible to their peers. Tuesday evening, all indicated that the Cavaliere would arrive in Brussels on hands almost empty. He could get away with a pirouette. "Who will take the risk of rekindling the fire on the euro, claiming that Italy is definitely not serious?" Asks a well-placed observer.

Tuesday in Brussels, experts and diplomats continued to activate a device described as "quite substantial".But this is not the only issue: Wednesday evening, "it will be for each to balance the three points of a triangle: accept economic reality difficult to convince a sustainable markets and minimize the impact of the election austerity" . The crisis has entered its most political.

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Navigate troubled markets, a fierce industrial competition and the need to "respect its property interests." The State shareholder is, once again, the experience of a difficult environment – under the sharp eye of Jean-Dominique Comolli, Commissioner of State Holdings, appointed in September 2010. The annual report of the Agency for State holdings (EPA) provides an overview of contrasts.

In terms of numbers, the net result of 57 companies (660 billion euros in total assets combined) in which the state is now stood at 7.9 billion euros in 2010, "a slight increase over that observed in 2009 "(7.4 billion), the report of the EPA.

Under the fiscal 2010, the State should receive 4.4 billion euros in dividends in 2011, "which is the level of dividends received in 2010."The rate of distribution to the State recorded a moderate decline from 59.5% in 2010 to 55.7% in 2011. However, it remains higher than for large companies in the CAC 40.

In a context of bearish markets, the portfolio of listed state accounted for 69 billion market capitalization at September 1, 2011 (as against 88 billion at September 1, 2010)."The value of the portfolio is highly concentrated EPA under the EDF, which fell by 35.17% over the period," says the document.

The evolution of the portfolio reflects in fact "a wide variety of situations" from positive performance in aeronautics / defense to significant reductions of "cyclical" (motor transport) or the financial sector.

A government that is perfect

Governance side, the state shareholder wants to be perfect, either in terms of earnings, mix, or territory. Thus, the overall percentage of women board is 15% in companies where the state is a shareholder. This rate rises to 20% for its own representatives.The state ownership "ensure that executive compensation is directly linked to their performance," says he, too.

The State shall last to the industrial development strategy of companies in which it operates. In 2010, Nicolas Sarkozy had called for a competent administrator in industrial systematically accompanies the representative of the EPA in the boards of industrial enterprises. It's done.

And since last year, the owners of the companies concerned are not a "regular" with the Minister of Economy. The main objective is to promote the activity in France.The results of the investigation Bercy last two years are quite encouraging: investment on French territory increased by 7.3% between 2009 and 2010 – even though they are very different industries – and jobs back less and less each year.

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It was an open secret. The six countries of the euro area currently receiving a rating of "AAA" (Germany, Austria, Finland, France, Luxembourg and the Netherlands), everyone knew that the Hexagon was the most fragile. And for two main reasons, as the visible one and the other as the nose on your face.

First is the only country of the "club of six" not to balance its accounts public, when we ignore the burden of debt (annual interest payments to our creditors). France continues to display a "primary deficit" in the words properly. This shows that the remediation work is far from complete.Note, for example, that Italy is now in a situation of "primary surplus", even though the peninsula remains weighed down by debt levels far higher ransom of a history of fiscal mismanagement even older than ours.

Second handicap, and distinguishes us from the other five members of the club "triple A" France is the only one to record a deficit of its external accounts. The imbalance between our imports and our exports attests an alarming lack of competitiveness. Clearly, if the French economy was not part of a monetary union, it would now interest to devalue its currency. She would even be forced by the markets.

But that Paris could lose its valuable in the future "triple A" and it would be first across the euro area which would be weakened. Including Germany. Across the Rhine, there is concern especially as a contagion effect.Professor Hans-Werner Sinn, president of the Ifo economic institute, also highly critical of the current functioning of the euro area, just bring a vivid demonstration quick pay day loan.

A model to redefine

In a recent study ("The Ten Commandments to save the euro"), he notes that the cost of insurance on the ten-year Bunds has increased tenfold since the crisis of the euro, to 1.2%. The fault lies, he says, to become burdens on Germany, the main funder of the rescue plans for its partners in the Euroland. This bill gets heavier a little more if France was itself degraded. The warning from Moody's recovery even more debate on French economic policy. Designating Paris as the weak link of the "triple A" rating agency highlights the twin deficits, internal and external, which is our brand.And these two imbalances, the most distressing is certainly the failure of "Made in France" to find its place under the sun of the euro.

Compared to its neighbors "triple A" – true "mark area" within the monetary union – France stands out on another point. Never in modern history since the First World War, it has succeeded in establishing a social contract where competitiveness is central. Such as the famous Wassenaar agreement of 1982 in the Netherlands, to exit the eternal Germanic model, in fact that of all Northern Europe. Rather than attempt to "re-enchant the French dream", which has ceased to be missing the point, here is the challenge.

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• Incidents in Rome

Tens of thousands of demonstrators, inspired by the "outrage" of Wall Street and Spain, marched Saturday in Rome, the city had been cordoned off by police. "One solution, the Revolution!", "We are not property in the hands of bankers," could be read on the signs of the protesters no fax cash advance.

In Rome, several cars were torched. Photo credits: ALBERTO PIZZOLI / AFP

Useful but expensive. INSEE publishes Friday the first study measuring the effects of tax incentives implemented since the early 1990s to develop home care services (child care, home help for the elderly, housework …). "With an estimated cost of three billion euros in 2010, the tax system is more than half of public spending for the sector," notes and the statistical institute.

Established in 1991, these tax incentives allow households to deduct from their taxes half of their spending on home care services in a ceiling. This system was completed in 2007 by a tax credit for tax-free households, with half the money spent now repaid them without the income tax is a limit.Thus, a household spends 2,000 euros per year in-home services and pay (before deduction of tax benefit) 500 euros tax can now get 1000 euros, against 500 before.

Result, "said resort" home care services took off in twenty years. It doubled between 1996 and 2008 from 6 unsecured personal loans.4% to 12.8% of households. "This development reflects both supported the regularization of undeclared work and employment creation, because of better solvency of households," says INSEE.The institute estimated that between 85,000 and 300,000 the number of households that have used more, thanks to fiscal measures, such services.

Tax Credit

The only tax cut would have enabled the creation, between 1991 and 2007, from 12,000 to 43,000 full-time equivalent jobs "at an annual cost per job created between 23,000 and 85,000 euros."

The tax credit, introduced in 2007 for households not taxable, would have in turn fostered the creation of 4,000 to 14,000 jobs, an annual cost of between 9,000 and 28,000 euros per job. This new provision is only in the end only 2% of the overall cost of the tax benefit (122 million) from the simple fact that users are low-income households, rather young, and therefore little use to home care services.

The mood is gloomy Tuesday in the Paris Bourse. The debt crisis, fears of a default Greek and the difficulties of Dexia still saddled markets. The CAC plunged 2.7% in mid-session at 2 845.78 points after having been closed on Monday, down 1.85% to 2926.83 euros. Elsewhere in Europe, London was down 2.22% to 4,962.80 points and Frankfurt from 3% to 5 215.50 points.

Monday evening, the finance ministers of the Eurogroup announced after their meeting that they see "in October," the decision on the next tranche of 8 billion euros to Greece. Europe is planning to review the private sector in the second aid plan and is considering increasing the relief fund for indebted countries (EFSF).Finance Ministers have also agreed on the granting of collateral in exchange for loans to Greece.

Athens, meanwhile, announced new measures after Sunday warned that the country would not meet its deficit targets required by its creditors.

Oil down

Fears weigh on the euro area also on the European currency. The euro sank below the $ 1.32 in late morning, its lowest level since January against the greenback, carried away in the turmoil of the debt crisis and the postponement of a decision on Greece by the finance ministers of the euro area. Mid-session, the euro bought 1.3184 dollars against 1.3178 dollars late Monday.First thing in the session, he even fell to 1.3146 dollars, its lowest value since January 13.

Oil markets, concerns about the global economy weigh on prices: a barrel of "light sweet crude" for delivery in November lost 1.47% dollar to 76.47 dollars in the morning.

In terms of macroeconomic indicators, investors will pay attention to the publication of industrial producer prices in the euro zone in August expected at least 16 hours. Overseas, industrial orders in the U.S. for August are expected in 16 hours. At the same time, the president of the Federal Reserve, Ben Bernanke, scheduled to speak before a congressional committee on "economic forecasts".

Dexia has announced the sale of its flagship

The entire banking sector will be followed on Tuesday.The board of directors of Dexia (-20.77% to 1.03 euros) announced last night to have initiated a process to solve the structural problems of the group but did not mention track in particular. The Franco-Belgian bank should speed up the sale of its jewels and isolation of its non-performing assets in a "bad bank" quick guaranteed personal loans. His last note was placed on negative watch by Moody's. Deminor insists that the shareholders are consulted before any decision on a plan for the future of Dexia, said the consulting firm to shareholders in an open letter disclosed by Reuters.

For its part, Societe Generale (-3.95% to 18.22 euros) halved its need for long-term financing in 2012, she announced.The French bank will only need 10 to 15 billion euros.

Also in the European banking sector, the first German bank Deutsche Bank has abandoned its goal Tuesday to reach a record operating profit of 10 billion euros this year, but assured that it will profit in the third quarter.

The sugar group Cristal Union will acquire in a friendly group Vermandoise for nearly a billion euros to create the number five European sugar industry, which will be number two in France behind Tereos. Vermandoise group includes two companies listed on NYSE-Euronext Paris, the Society of Sugar Vermandoise (SVS) and the Sugar Company of the Old Pithiviers (SSPLV).The listing of the two securities is suspended.

Stallergènes (-3.63% to 44.81 euros) announced a reorganization of its governance, which will see the arrival of a new executive managing director in early 2012.

GDF Suez (-1.70% to 22.02 euros) has completed the sale of the Rete Gas G6 consortium of infrastructure funds F2i, AXA Private Equity and Enel Distribution. The sale values ​​the distribution assets at an enterprise value of 772 million euros, to 103% of the regulated asset base in 2010, 9.3 times Ebitda and 17.5 times net income. This was announced in June.

Bonduelle (-1.31% to 63.50 euros) reported a sharp drop in its annual net profit by 48% to 30.4 million but expects a rebound in profitability for the year 2011-2012.The food group is also in talks to buy the vegetables Aucy in Russia.

Naturex (-6.88% to 46.02 euros), a specialist in natural ingredients of plant origin, will launch a capital increase of € 49.3 million to fund acquisitions and increase its free float stock.

Group Gorge (9.95% to 6.74 euros) flames just after the announcement of its largest order in the nuclear industry, a contract of 30 million euros in China.

In the first half of 2011, a resumption of sales of businesses began. The second barometer on the subject made jointly by the State and Altares, released Thursday, reported a sales increase of 2.4% over the first six months of the year. These sales were heavily impacted by the crisis in 2009, transactions were down 19%, before timidly back in 2010 (0.9%).

This year, the investment return to a little more frankly. "Although the number of transmissions is lower than before the crisis, the situation improves significantly," says Thierry Million, director of studies of Altares. And with it, the price of the business, which increased by 1.7% over last year to 179,033 euros on average. "The funds transferred in early 2011, which have weathered the crisis, have negotiated more favorable," notes the group.Evidence that most of the times for low-cost funds, however, the median price remained stable at 80,000 euros.

A craze for camping

Like last year, it's the pharmacies that are the most expensive. On average, a pharmacy is minting 1.2 million euros in the first half. In the hit parade of goodwill the most expensive, campsites are in second place. Their prices as the number of transactions continue to climb (30% in first half!), Driven by the success and growth of high-end structures. "The development of chalets and mobile homes on campsites has changed the situation, says Thierry Million no fax payday loan. The price of the stock in trade is also pulled upward by large campground owners, who can afford to invest. " A 378,000 euros Camping on average, their prices now exceed those of the hotels.

Among the funds that are most sold early this year, are also leading bakeries and taverns. A sign that these businesses are particularly effective? "No, fixes the director of studies. It is even the contrary, because the margins are ultimately less important than had been anticipated that buyers turn goodwill as every five years. These traders often try to sell before we get into bankruptcy, to save the furniture ".

Outlook bleak

The second part of the year will be under less auspicious. The economic downturn and the growing reluctance of banks to lend money should help to slow the recovery of transmission of a business, driving prices back down. "A peak was reached.The average price should not exceed 180,000 euros, "Judge Thierry Million. A decline in transactions detrimental to the economy, which would inevitably impact on employment. "The resumption of a stock in trade is the transfer of customers, know-how, but also employees. A butcher, a hairdresser that close, many jobs are destroyed, "warns Thierry Million.

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Banks still working hard to provide for bank charges. Including payment cards. A study by the magazine 60 million consumers, an international card is billed an average of 37 euros per year, while its cost is only 5 euros. Half of the institutions have even raised prices in two years.

Banks 'traditional' is the Postal Bank which offers the lowest rates with an average annual cost of 73 euros, ahead of Caisse d'Epargne Ile-de-France (83 euros) and Societe Generale (93 euros ). Bringing up the rear, there is Crédit Mutuel Ile-de-France (133 euros) and CIC (140 euros). But the banks 'traditional' remain far behind online banking, according to the survey published in the journal business cards.Including ING Direct, which continues to lead but the price of the basket of basic services is no longer free but is 10 euros.

To perform its study, the magazine wrote a basket of ten banking services under the Act Lagarde. It includes an international payment card with deferred debit, the new edition of the code card, a transfer to another bank, the blocking of a check, looking for an archived document for over a year, account management on the Internet and any account maintenance fees.

As was mentioned earlier this month, "there will be no increase in gas rates for individuals on 1 October 2011." This announcement was made Thursday by the Energy Minister, Eric Besson. Businesses, however, will face a bill for them saltier since the increase will be 4.9% next month.

The chosen solution is identical to that adopted by 1 July, when prices for individuals were frozen and prices for businesses increased by 3.2%.

GDF Suez angry

This is not to the liking of GDF Suez, which called for an increase of almost 5%. The gas giant said it would "seize the courts to protect its interests."According to the company, the shortfall of the government's decision is "290 million" in its accounts the second half.

"GDF Suez can only regret the decision of the French Government on regulated tariffs for natural gas because it is not in line with public service contract signed between the state and the company or the laws and regulations concerning the evolution prices of natural gas', denounced the group in a statement."GDF Suez will request that the coverage of costs paid by the group from the suppliers of gas costs have increased recently in the wake of the upward trend of oil prices on which the natural gas price is indexed" he argues.

The competitors of GDF Suez, grouped in the National Association of energy retail operators (anode), had also filed an appeal with the State Council on August 26 to contest the freezing of gas tariffs for households decided government.

But he had promised that there would be no increase until the presidential election. He also asked the Commission for Energy Regulation (CRE) to find a new formula more favorable price to consumers, after a 20% surge in prices.This should be remitted to government in the coming days.

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The atmosphere is dull on the Bourse de Paris. The CAC 40 was down over 3% to 2694 points, after plunging 5.25% on Thursday. Over the whole week and he gave up 9.3% since the beginning of the year almost 28%. Mobilization and call for unity of the G20 held yesterday evening in Washington fail to reassure the markets. Friday morning, Asian stock markets were still sharply lower.

Elsewhere in Europe, the Dax in Frankfurt Stock Exchange lost 1.10% and the FTSE in London yields 0.50%.

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