The Government of the Russian Federation will again be able to reach the cherished 4 percent budget deficit in 2011, even under the most stringent economies, said Reuters. At the end of last year, Putin’s cabinet approved the main features of the budget for 2010-2012, which provide for the deficit be reduced by 6.8 percent of gross domestic product (GDP) to reach 4 percent in 2011 and to 3% in 2012 Originally the government planned budget deficit for 2010 is not more than 5 percent of GDP, but preliminary and comparative data, it will even increase by 2% to 7% annually. “Even if you implement the most violent measures, which provides the Finance Minister Alexei Kudrin, but unfortunately no one seriously considered, I will not be achieved cherished 5 percent,” said a senior source from Reuters Economic Office. Two days ago during a conference dedicated to federal financial programs targeted for 2011, Prime Minister Putin said that in coming years the budget should be prepared on a conservative basis and move gradually to reduce the budget deficit. He did not report specific numbers, which is defined as a setback for the program previously applied to reduce the deficit to 3% by 2012. According to Reuters the source of the meeting were not taken any concrete decision, because two weeks should be reviewed all programs and reduce their limits, because the “hole” in the budget is already 600 billion rubles (over 14 billion euro).
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Germany’s Chancellor Angela Merkel has dismissed suggestions that Greece burdened with debts may leave the EU. “Asked whether Greece should leave the EU does not exist,” Merkel said after meeting with Prime Minister of Greece George Papandreou. Debt of 300 billion and budget deficit of 12.7 percent of GDP made Greece “weak link” of the euro area and Germany has the largest economy in the community. Berlin has repeatedly refuting suggestions that it intends to “save” proved to be in Greece Financial Crisis, recalls agency Reuters. Merkel urged Greeks to “bear with” give effect to the new anti-crisis measures, and to understand that the residence of Athens in the euro area is very important. “All we are faced with economic crisis, we are in a complex situation and therefore understand what forces need to be implemented all measures taken to emerge from the crisis”, said Chancellor of Germany. In the popular press release about the meeting between Papandreou and Merkel says both countries will develop partnership relations on many issues and together we will resist the challenges facing the EU. Greece is in debt and financial crisis, which forced the government to take serious measures for savings. Greece says it does not need economic and political support from the EU.
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Icelanders, as the Greeks do not want to pay for foreign errors indicate global agencies. By overwhelming majority, they rejected an agreement worth $ 5 billion to pay debts to Britain and the Netherlands. The results of about 18 000 votes 93% indicates disagreement with the transaction, but only 1.5 percent were in favor of respondents. In Iceland, held the first referendum since it received independence in 1944. Voters – about 230 thousands – were urged to act on unpopular agreement to compensate customers of bankrupt Icelandic bank “Aysseyv.” Option, subject to consultation, condemning every Finn to pay for nearly one hundred euros per month for eight years. From second payment to Iceland is the only chance to restore their economic standing before the world. Meanwhile, on the eve of the referendum, the Icelandic government began attempts to reach a new arrangement in lighter conditions and claimed that the consultation is outdated and irrelevant text. Reykjavik is hoping the result is not wrongly perceived as a sign that the country is unwilling to pay its obligations under the “Aysseyv.” According to analysts, the outcome of the referendum may delay the next tranche of financial assistance from the IMF.
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The heads of Gazprom and the French state energy company GDF Suez in Paris today signed a memorandum of accession to GDF Suez gas pipeline project “North Stream” with a share of 9 percent, says the message of the Russian gas giant. Estimates are the transaction to be completed by the beginning construction of the pipeline, scheduled for after 1-2 months. The memorandum provides more supplies of Russian gas to France to increase by 1,5 billion cubic meters annually from 2015, natural gas will go to Nord Stream. The pipeline will carry natural gas from Russia to Northern Europe, passing under the Baltic Sea and its major shareholder with 51% stake is Gazprom. Nord Stream will have a length of about 1200 km. The first part of the pipeline with a capacity of 27.5 billion cubic meters of gas per year is planned to be put into operation in 2011, and will immediately proceed with the construction of the second part, the construction of a pipeline capacity will reach 55 billion . cubic meters of gas annually.
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The deficit in trade between the EU-27 and the rest of the world reached 105.5 billion in 2009, while a year earlier – in 2008 amounted to 258.4 billion, showing a pre-data statistical office Eurostat. As regards the euro zone trade balance was positive amounting to 22.3 billion euros, against a deficit of 54.7 billion for 2008. In December 2009 the EU has 2,5 Bn deficit in trade with third countries. Over the same period last year there was a decline in the deficit from 8,8 billion. The previous November, the trade balance was again negative, amounting to 6,8 billion euros, 24.4 billion compared to November 2008. Eurostat data for the period January – November 2009 showed a significant reduction in the deficit in trade in energy resources – from 350.7 billion euros in 11 months of 2008 to 212.1 billion in 2009. Reduced surplus in trade in machinery and equipment (from 138.9 billion to 99 billion euros). As regards trade with chemical products, however, there is growth in the surplus with 5,4 billion euro to 74.1 billion euros in total.
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The European governments have made arrangement to have a principal financial assistance to Greece and considering various options, including bilateral aid, said on CNBC senior representative of the ruling coalition in Germany. “The decision has been taken in principle and in the euro area,” said the source. Germanic lawmakers are considering financial aid to Greece, said earlier before Bloomberg Michael Meister, a member of the Christian Democratic Union of Chancellor Angela Merkel. “Whatever assistance, either bilaterally or by the entire European region will be accompanied by strict conditions, is complemented Meister. It is quite important for the government of Greece to get such support from Europe.
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The U.S. president Barack Obama said the U.S. economy has overcome the crisis and a growing again. “We see that picked the economy from the crisis and grow again. Companies began to hire people to work, but this does not happen as fast as we want,” the president said in an interview with CBS. Labor market in the U.S. occur recovered somewhat – Unemployment fell to 9,7 percent in January from 10 percent in December. Economy has grown by 5.7 percent in the fourth quarter of 2009 and during the third growth was 2.2 percent. Barack Obama announced that he had invited leaders of the Republicans and the Democrats for a discussion on health reform on 25 February. The President and the democratic leaders in Congress seeking to push through healthcare reform law, once again the Republicans are able to block bills in the Senate. According to sociological polls Obama and Democrats in Congress are not demanding enough Republican support for health reform. Discussion on 25 February will be attended by leading representatives of the Republican and Democratic party of both houses of Congress – the House of Representatives and Senate. Is optimistic and the Minister of Finance Timothy Гейтнер, who in an interview with ABC News, quoted by the agency Reuters, says that currently the risk of re-recession in the U.S. is very low. However Geytnar acknowledges that recovery will be slow and uneven.
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The U.S. employers unexpectedly cut to only 20 000 jobs in January compared with a forecast to reduce by more than 25 000 jobs. Thus, unemployment fell to a surprise five-month bottom and 9.7 percent reported in recorded unemployment in December from 10.1 percent. This gave the basis of the calls for comment by Reuters analysts to come together around the view that initiated the improvement of the labor market has put permanent roots. However, the number of unemployed continues to rise in construction and transport sectors, while services and retail industries have added jobs last month. The data of the Ministry of Labor show that currently 14.8 million Americans were unemployed. The economic situation affects most severe adult men, where the number of unemployed reached 10 percent of the active population in this group.
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The healthcare spending in the United States over the next decade will grow faster than the growth of the economy and by 2019 almost 20 cents of every dollar spent will go to health. It emerged from a government analysis, quoted by agency Reuters. Economists from the Centers for Medicare and Medicaid have announced a new report that over the next decade, national health expenditures will increase by an average of 6.1 percent annually – to 4,5 trillion U.S. dollars in 2019. Last year in the U.S. health care are spent around 2,5 trillion. U.S. spending on health more than any other country in the world, although 46 million people have no medical insurance.
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The U.S. President Barack Obama said that reducing the budget deficit is as important as job creation, which earlier announced it as his main priority this year. To continue the economic recovery is a necessary fulfillment of both goals, said in a weekly address to the President shall transmit CNBC. According to the financiers, however, can be dangerous. Obama called it “a sign of progress” growth of U.S. economy by 5.7 percent in the last quarter of last year, but stressed that in parallel with the creation of new jobs must be tamed and the budget deficit that has accumulated too long. The president has outlined specific steps to reduce the deficit: balancing any reduction in revenue with an increase in other such freeze in spending discretionary appointment of a commission to reduce the deficit. Obama argued that the balanced budget rule, introduced in 90 years has led to a surplus at the end of the decade, but after its repeal by the Congress has reached a deficit of 1,3 trillion. dollars, which he inherited when taking office in January 2009.
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