The lower House of German Parliament approved the proposal to boost the Eurozone bailout fund leverage, providing Chancellor Angela Merkel’s office, you need to negotiate a key summit of the European Union later today in Brussels. The Vice-President of the Chamber said that 503 deputies supported the proposal, 89 were against and 4 persons abstained. The proposal says that the European Central Bank is no longer required to buy government bonds on secondary markets and the European Financial Stability Fund (EFFS) can not be financed through a financial institution. The proposal to increase the size of the fund without pouring taxpayers’ money it is the subject of fierce debate in the largest economy in the Eurozone. Prospects for a comprehensive agreement to address the debt crisis in the Eurozone today’s summit of leaders of Member States seem dark and deep divisions remain on key aspects such as providing greater financial strength of the rescue fund. The hands of measures regarding the negotiations were tied after the last month the German Constitutional Court ruled that such agreements must be approved by the legislature. Meanwhile, the German Chancellor said that the share of country EFFS remains. “Germany warranties within EFFS amounting to 211 billion, so it was decided and remains so”, Merkel told the Bundestag.
She noted that currently the issue of stabilizing the euro is the most important, dealing with the federal government. “We want Greece as quickly as possible on its feet and make this all possible in the German-Greek partnership”.

The sentiment remained positive for the fourth consecutive session of European markets and brought the leading index increased in the region despite the looming fears that Portugal could become the next member of the eurozone, to resort financial assistance. Strongly in today’s session presented technology companies led by Nokia and Alcatel, after the investment bank Goldman Sachs raised its estimates for the two telecommunications companies. The shares of Nokia and Alcatel rose more than 3% after news. And highly appreciated shares of companies in the sector of renewable energy sources because of votes against nuclear energy in Germany. The European index Stoxx Europe 600, which covers the securities markets in 18 European exchanges, rose 0.1 percent to 276.33 points. Last week brought him 3.1 percent growth, after fears of a nuclear crisis in Japan and the riots in Libya are reassured. The national benchmarks rose in 15 of the 18 European exchanges represented in the Stoxx Europe 600. With a minimum gap of 0.1 percent over the session for the leading indexes in Britain and France, where the FTSE 100 rose to 5905 points, and France’s CAC 40 index rose to 3 976.95 points.
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The Eurozone growth is below 2% by the end of 2012 due to the efforts of many countries in the region to resolve problems with their debts. This forecast in a statement today, the International Monetary Fund (IMF), said Wall Street Journal. IMF stresses that there are three main areas that need attention in order to achieve a sustainable economic recovery: dealing with weakness in the banking sector, the implementation of ambitious plans for fiscal consolidation and continuation of fundamental structural reforms of social insurance and the labor market. After the 16 eurozone countries sharply increased their overall fiscal deficit in 2009 to counter the global recession, the IMF predicted that the euro will have a “neutral fiscal policy in 2010 and reduce its deficit over the next two years. A strict fiscal discipline will limit growth, indicated by the IMF, but at the same time it is needed to stabilize debt levels in the region. Fears of bankruptcy arising from the Greek financial crisis since the beginning of the year and motivate other highly indebted countries in the eurozone to reduce costs. “We expect that measures will be sufficient to address the debt crisis,” said a statement by the IMF. “However, in weak investor confidence and fiscal restructuring will limit potential growth.
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The chancellor Angela Merkel urged Germans to tighten belts and adjust to the rate of savings. Germany lives above its means for years and it said Chancellor during the ecumenical Congress in Munich. “This calls for drastic economies,” Merkel was definite. In 2015 should be saved 10 billion a year, said Chancellor. Angela Merkel’s statement made just days after asking a tight fiscal policy within the European Union. For its part, the Union of towns and municipalities in Germany called for adequate measures for the expected record deficit in municipal funds. Over the next three years there is no prospect of raising revenue, so we need to freeze spending, the union warns. Before it became clear that cities and municipalities are in the worst budget crisis since the founding of the Federal Republic. This year the deficit could reach 15 billion – 3 billion more than expected. This was a hard decision got by Angela Merkel, but the country should be protected by the situation, which happened in Greece, Spain and Portugal.
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Unemployment in the euro area rose to its highest value of establishing a monetary union in January 1999, says statistics from Eurostat. The indicator for September increased by 0.1 percentage points to 9.7%, as were the expectations of analysts. A year ago, unemployment was 7.7%. Across the European Union level indicator has also increased by 0.1% to 9.2%, a record since 2000 when the statistical office has begun to report aggregated data. The number of unemployed is the EU grew by 286 per month to 22.123 thousand million euro only people without permanent employment for 15.324 million, as compared to August the number rose by 184 thousand
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The unemployment in the eurozone grew 9.6 percent in August and reached its highest level since March 1999, already without permanent employment were 15.165 million people showed seasonally adjusted data Evrostat. According to July increase was 0.1 percentage points in a number of  165 thousand unemployed, which coincided with the assumptions of analysts. Throughout the European Union, unemployment also increased to 0.1 percentage points to 9.1 percent, reaching values from March 2004 in 27 countries have remained without work 236 thousand in August to 21 872. For the August 2008 unemployment in the euro area and the entire EU was 7.6 and 7.0%. For a year they are unemployed in the EU increased with only 5 million were released in the eurozone EUR 3.2 million of them.
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The index of business confidence in Germany rose to a 12-month high, according to figures of the Ifo Institute, which refers to Bloomberg. Thus, Europe’s largest economy gives another signal that is gaining momentum after the worst recession since the Second World War. The index of the Munich-based institute, which is obtained from consultation to 7000 companies in the country reached 91.3 percent at 90.5 percent in August. However, the increase is lower than the forecasts of analysts who had expected the index to increase to 92 points. In March, the indicator said 26-year low, falling to 82.2 percent. The index for current conditions also noted an increase to 87 points, measured at 86.2 in August. Ifo Institute’s report comes just days before federal elections in Germany, which this chancellor and her party are expected to be first political force by about 34-36% of the vote. Bloomberg notes that the government program “cache lizzie and improving international trade helped Germany to surged by 0.3 percent in the second quarter of the year.
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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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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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