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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The regulatory authorities of the European Union today imposed a fine of companies Akzo, Ciba, Elf Aquitaine and seven others totaling 173 million euro. Penalty measure is to negotiate the prices of their manufactured additives for plastics. The fine, which was announced by EU Competition Commissioner Neelie Kroes, is required for cartel activities and price fixing in the market for such products. Activities of companies, which is punishable by fines today, is performed during the period 1987 – 2000 year. The European Commission has begun an investigation of unannounced inspections in 2003. Ciba was fined 68.4 million EUR, Akzo will have to pay 40.6 million EUR, Elementis- 32.57 million EUR and Elf Aquitaine – 28.6 million EUR. The companies fined due to cartel business are fined because of deals made in cartel agreement and monopolizing the prices for business. Really this action of European commission is one of the hardest done in Western Europe for such violation, but according to the words of European Commission each try for cartel agreements will be fined and investigated according to the law.
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The Romanians will have income comparable to the average income in the European Union at the earliest after 40 years. This is indicated by the analysis of rating agency Moody’s, wrote newspaper Adevarul quoted by Focus Agency. “We will have a relatively long period until the benefits are closer to their average level in the EU. This process will continue for a long time, probably about 40 years, “says a report of the agency. In addition, Moody’s believe that the Romanian economy will continue to record growth after the crisis, but at a slower pace than recorded in the period before the recession. Last year, income in Romania amounted to an average 46% of their average level in the EU, which is calculated by comparing the purchasing power – the main indicator of development, says Eurostat.
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The business and consumer confidence in 16 states of the Eurozone is better for 5th consecutive month. Notes strong upswing in activity in the services sector. Business and consumer confidence in 16 states of the Eurozone is better for 5th consecutive month. Notes strong upswing in activity in the services sector. Business climate index for the Eurozone rose in August to -2.21 points for the rising expectations of -2.48 to -2.71 points after points in July. The index of consumer confidence in the Eurozone in August rose to -22 points in the rising expectations of -21 points to -23 points after July. he index of economic confidence in euro zone in August rose to 80.6 points in expectations for a rise to 78 points after 76.0 points in July. The index of confidence in the services sector in the Eurozone in August rose to -11 points after -18 points for July. The expectations of the market were to rise slightly to -17 points.
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On a business forum in Barcelona, European Commission President Jose Manuel Barroso predicted that the world will be the same after pass this economic crisis. Barroso said that Europe will start to come out of the crisis in 2010 He said the continent should be made much effort to overcome the serious situation. Barroso for most of Europe’s main concern is unemployment. This is the main drama of European society. Barroso added that the European Union will show flexibility in terms of limit of 3 percent of GDP, which must not pass the budget deficits of member states of the Union.
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The current account deficit of Romania registered one of the biggest adjustments to the figures in its history, falling by 73.3 percent in the first half of 2009 compared to same period in 2008, reaching a value of 2.375 billion euros, says e-edition Ziare.com, cited by Focus Agency. Key role in the decline of the current account deficit is the deficit of trade balance, amounting to 2.96 billion euros or 67.2 percent lower than the first half of 2008, shows data of the National Bank of Romania.
The current account deficit was financed eaten by foreign direct investment amounted to 2.894 billion euros. At June 30, 2009 external debt in the medium and long term reached 57.237 billion, an increase of 11.7 percent compared to December 31, 2008.
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Producer prices in the euro area in June rose by 0.3 percent on a monthly basis, but signed decrease of 6.6% over the same period last year This is a record fall of 1996. way. Market expectations were for prices to rise 0.2 percent on a monthly basis and a decline of 6.6 years. The Decline in prices is largely due to less demand for goods in the Eurozone, which is located in the most severe economic recession of the Second World War onwards. By Eurostat said that the main driver of the decline in producer prices is decreased by 15 percent annual price of energy products, especially for more costly oil and gas.
Prices of durable goods rose by 1.5 percent of yearly base.
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With threatening pace with rising unemployment immigrants in Greece, forward agency Focus. Currently the rate is highest in the last five years. In recent years, waves of aliens entering Greece in search of work and poses a serious risk of a new social tensions in the coming months. Data show that during the first three months of the year, unemployment among foreigners was 11 percent. For the first time it is higher than the national average. In practice, however, unemployment among immigrants is even higher, indicating the issue. In April the unemployment rate nationwide was 9.4 percent, marking its highest increase on an annual basis.
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The UK economy has decreased by 5.6 percent in the second quarter of this year compared with the same period of 2008, forward Bloomberg, referring to the statistical office in the country. This is the strongest decline in 1955 when it started keeping official statistics. On a quarterly basis is reduced by 0.8% due to the decline in construction, lending and business services. It is recalled that economists expected the country’s GDP to decrease by 0.3 percent. Expectations of the International Monetary Fund is that the country will register economic slowdown from 4.2 percent at the end of this year. According to Andrew Sentans, Bank of England by the British economy will start to life in the second half of 2009
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The Eight major banks are already with profits in the U.S., which reported earnings in the second quarter of 2009 today to the group, which fell safe as Goldman Sachs and JP Morgan Chase joined Bank of America and Citigroup. The Bank of America reported profits of 3.2 billion dollars during April-June (or $ 0.33 per share) and revenues amounted to 33.1 billion dollars, which is 60 percent more. The results were better than expectations, according to which profits should be between 0.28 and 0.29 dollars per share. Last year in the second quarter was 0.72 dollars per share (or profit amounted to 3.41 billion dollars). The Net income of Bank of America for the period April-June increased by 9 percent to 11.9 billion dollars. Furthermore, the Bank announced that during the second quarter expanded loans to more than 211 billion dollars. Treasury announced that it added reserves (provisions) for credit losses amounted to 13.4 billion dollars. Citigroup results show a net profit of 3.1 billion dollars for the second quarter of 2009, or earnings of 0.49 dollars per share (compared to a loss of 0.55 dollars per share or net losses of 2.5 billion dollars in the second quarter of 2008 ). Bank earnings have amounted to 29.97 billions USD revenues to 17.54 billion dollars for the prior year.
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