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The three party leaders of the coalition government in Greece have agreed on a reduction in public spending of 1.5% of GDP in 2012 and will give an answer to the proposal of credit ; the country's international nancial Monday at noon (1000 GMT).

"Political leaders should give an answer in principle tomorrow afternoon (European Union)," he told reporters Panos Beglitis, spokesman for the Greek Socialist Party (PASOK ) on Sunday.

They will then discuss the plan of the troika (International Monetary Fund, European Commission and European Central Bank) at a meeting chaired by Prime Minister Lucas Papademos.

"There will be a meeting of political leaders chaired by Papademos tomorrow afternoon," said Beglitis. 

The chief minister said for his part that the various managers of the government coalition have agreed on a reduction in public spending by an amount equivalent to 1.5% of GDP this year.

This includes measures to reduce salaries and benefits costs to make the Greek economy more competitive, he added.

He also confirmed the meeting of heads of coalition parties on Monday to conclude negotiations on the second aid package of 130 billion euros to be implemented by the mid-March to avoid a collapse of public accounts.

BAROIN OPTIMISTIC

Creditors of Greece had requested a reduction in spending worth one percent of GDP, slightly more than two billion euros for 2012. 

The negotiations on the restructuring of the Greek debt held by the private sector rose "relatively well", said his side the French Minister of Economy and Finance, Sunday .

"I think it progresses smoothly on the part of private sector involvement to be made on a voluntary basis," said Baroin under the "Grand Rendez-Vous "Europe 1-Le Parisien-i> Télé.

"We would not get away from the level at which one must move the Greek debt in 2020, that is to say around 120%," said the French minister. And "it is because we do not withdraw these objectives that the discussions are difficult," he said.

"Anyway, it's later than February 13," continued Baroin.

February 13 is the deadline posed by the euro area to launch the operation, which should bring the Greek debt around 120% of GDP in 2020 against over 160% today.

The private sector should accept a discount of around 70% of its obligations under the exchange program of the Greek debt. This will help to lower than 100 billion euros of debt of Greece.

In exchange for a loan of at least 130 billion euros by 2015, the troika of institutional creditors requires further structural reform and further reforms of austerity authority to clean up its public accounts.

Troika calls including a lowering of wages in companies and supplementary pension, which measures face many political and union resistance.

In the absence of an agreement, Greece is threatened with failure to pay on 20 March, when mature 14.5 billion euros of bonds.

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The rapid increase of the debt crisis in the euro area threatens the credit ratings of all European states, warned Sunday the U.S. rating agency Moody's. Moody's in New York.

In a "special comment" on European countries published Sunday, Moody's says it still considers that the euro area will maintain its unity without any fault as that of Greece, but notes that even this' scenario 'positive' carries consequences very negative for the notes "of European countries. The U.S. rating agency, recently warned that France could lose its "triple A" allowing it to borrow at favorable rates in the markets, and clearly indicates that no country, even among those considered most solids, such as the Netherlands, Austria, Finland or Germany, is immune to a lowering of note.

Other countries may need help

While countries such as Italy and Hungary have more and more difficult to obtain financing at rates viable markets, Moody's wrote that "the political momentum to implement an effective solution to the crisis could n ' be found after a series of shocks, which could lead more countries to be deprived of access to funding markets for an extended period. " The agency is referring to countries like Ireland, Greece, Portugal or Hungary, which have benefited from one or more financial rescue from the European Union or the International Monetary Fund. She said other countries may need to use this kind of solution if the EU fails to quickly find an adequate response to the crisis, these countries would then most likely lowered their rating to that of a investment "speculative."

Greece has one last chance to stay in the euro area and must make a "maximum effort" to avoid being brought back several decades, warned Wednesday the central bank Hellenic.

Painting a picture severe the nation's finances, the Bank of Greece said that the failure to achieve its fiscal targets, delays in implementation of reforms and strong economic contraction had questioned his recent claims about the sustainability of the country's debt.

"The country must avoid at all costs further delays or deviations from objectives; every effort is needed to do better than the targets," said the Bank in its interim report on monetary policy.

"The current situation is the most critical period of Greek history of the postwar period. What is at stake is whether the country will remain within the euro area."

The new prime minister, Lucas Papademos, promised to push reforms forward, although he met a mixed support for the main parties and trade union opposition to the new austerity plan which he has committed.

European shares fell sharply Monday in volume again, failure of U.S. lawmakers to agree on reducing the federal deficit and a warning from Moody's about the "triple A" of France with weighed on investor sentiment.

In Paris the CAC 40 yielded 3.41% at 2894.94 points.

Thirty-six, 38, 42 and maybe tomorrow as 50 per month when Airbus increases production rates of its single-aisle aircraft, it's party time for subcontractors in the aerospace industry.Unless the funds to finance the necessary investment will come running out.

These suppliers, some of which also work for Boeing in the interest of diversification, are technically ready to follow the ups cadence, but sometimes have difficulty obtaining financing from their bankers, actors and observers believe the industry.

Driven by the boom in Asian demand swells order books, manufacturers accelerate the pace, especially in the aisle – the segment of medium-haul flights of 150 seats – the most lucrative and most promising of the civil aviation with a value estimated at some 2,000 billion over the next 20 years.The 'supply chain' will fit, maybe it will grind a bit in the ramp-up, but we adapt, "he told Reuters Jean-Claude Maillard, CEO and founder of Figeac Aero, under contractor to Airbus, which finds that up to 48 or 50 units per month is "quite possible".

He echoed the statements of President of the Group of aerospace equipment and defense (GEAD), Olivier Zarrouati – also CEO of Zodiac Aerospace – who recently told Reuters that a growing number of production plants for OEMs keep up the pace aircraft manufacturer was not required.

"You can go to heaven, there is no limit", says David Bonnus, aerospace expert with the firm Step Consulting.

All eyes are on Berlin where German parliamentarians must vote on a proposed reform of the European Financial Stability Fund (EFSF) earlier this afternoon after a speech by Angela Merkel.The Chancellor will then travel to Brussels for EU summits and the euro area, which should provide practical solutions to the debt crisis.

At 9:30, the CAC 40 lost 0.35% to 3163 points while the Eurofirst 300 was almost stable.

European markets are down, investors holding their breath awaiting the outcome of the day announced as crucial for the future of the euro area.

"It is expected that the Bundestag decides on reinforcements EFSF and the role of the ECB in managing the crisis," said a trader based in Paris.

Values, PSA fell sharply under the influence of lowering its forecast for 2011 after a third quarter marked by lower volumes and increased competition on prices in Europe.The group is likely to reduce its workforce by 10% in Europe.

Ingenico, in contrast, was part up 5% in early trade Wednesday of the Paris Bourse, the manufacturer of payment terminals has published the day before its sales for the third quarter.

The euro remains firm and resolutely clings to a level above $ 1.39, while the German Bunds are hesitant, waiting for a clearer trend in equity markets.

Spot gold rose 1% touching a high of more than a month, reflecting investor fears that the crisis drags on still.

Greece wants a solution to their debt problems that would apply to all of its debt maturing until 2035, said Monday a government source.

"We think of all the Greek debt, expiring until 2035, not 2020 as planned in the previous plan," the source said, adding that "nothing can be done without the European Central Bank ".

Leaders of the 17 euro zone members must agree by the EU summit Wednesday on how the second aid package granted to Greece, including a marked discount on Greek bonds held by the private sector , which represent the 200 billion euros.

"We oppose any unilateral action that could be interpreted as a reconstruction of the debt," the source said.

Whatever emerges from the top of Wednesday, Greek banks are not nationalized, also said the source.

According to the information that leaked a report on the debt of Greece by international inspectors, it seems that the second aid package of € 109 billion agreed in July is no longer sufficient unless private investors n 'accept a discount of 60% on their Greek bonds.

Without it, it would take more than 250 billion euros for Greece is solvent, say economists.

Private creditors of Greece may have to accept a loss of up to 60% on their sovereign debt to the Greek debt can become sustainable over the long term, according to a report that will serve as the basis for decisions of the leaders of the euro area meet Sunday and Wednesday in Brussels.

The EU finance ministers STRIPS for their Saturday on different scenarios and try to resolve their differences in voluntary or not of such private sector participation to a new bailout for Greece.

Friday night, they brought a breath of fresh air in Athens, giving the green light to the payment by mid-November of the next tranche of international assistance by 8 billion euros, without which Greece would default on its securities sovereigns in the coming weeks.

The International Monetary Fund still has to also accept the payment, he conditioned ambitious decisions of Heads of State and Government of the euro area to reduce the mountain of Greek debt.

According to the scenarios included in the report of the troika – IMF, ECB and European Commission – representing international donors in Greece, a 50% discount on Greek bonds held by private investors is necessary to reduce debt to 120% of GDP , against 162% today.

If it was intended to bring it below 110%, a discount of 60% would be necessary, the report, which warns that the Greek debt could have a peak at 186% of GDP.

A footnote on page mentions, however, opposition from the European Central Bank to the publication of such scenarios because it believes that investors will refuse to subscribe voluntarily to these losses, resulting in an inadequate Greek.

Fearing to trigger a credit event with unforeseeable consequences, France and several other countries are also reluctant to go beyond the envelope of 50 billion euros negotiated last July 21 with the banks, as demanded German authorities if necessary by forcing them to go the extra mile.

FUND SUPPORT FOR THE EURO AREA

Reflecting a view increasingly shared by European leaders, the Swedish Finance Minister Anders Borg has called for Saturday to a "substantial discount" on the Greek titles.

"I do not think we should use taxpayers' money.The safeguards system can not only restore confidence, "he said on his arrival at the meeting of EU finance ministers.

In addition to the Greek plan, they try to move forward on Saturday a comprehensive plan to recapitalize banks on the continent, aimed not only to prepare them for losses in Greece but also to restore investor confidence.

Several European and banking sources told Reuters earlier this week that the plan could be around 100 billion euros.

They must also continue work to define a formula acceptable to all the Fund to leverage support for the euro area (EFSF), on which Paris and Berlin are divided.

Friday night, after a meeting of the Eurogroup, which barely touched the issue, the economy minister, Baroin said that France continued to believe that the conversion of cash in bank was the best solution but did not make "one final point of confrontation."

"What counts is what works.And what works is what will go towards deterrence and effective firewall and it is around that we're trying to work, "the minister said to the press.

SARKOZY, MERKEL MEETING

Granted a banking license in EFSF would allow access to funding from the European Central Bank to increase its capacity for action by a factor of up to five.

But Berlin rejects this possibility, which would be to accept that the institution of Frankfurt finance the countries of the euro area, one of the dogmas explicitly excluded by the European treaties.

The other members of the euro area are also divided, Belgium and Spain having voted for a reconciliation BCE-EFSF while Slovakia and Austria have indicated that this solution was not studied.

A European source said Friday that among the solutions on which floor the ministers, not imply the

ECB.

This issue could be decided on Saturday evening at a bilateral meeting in Brussels between Nicolas Sarkozy and Angela Merkel, who will be joined by the presidents of the Commission and the European Council, José Manuel Barroso and Herman Van Rompuy.

European leaders are under intense pressure by their international partners to take decisive action against the crisis, less than two weeks of the G20 summit in Cannes, where they planned to hold them accountable.

Moody's is more secure than the debt of France still deserves the highest rating possible. Degradation could occur in the next six months. The consequences for France and the euro area would be dramatic. The budget minister Valérie Pécresse and the Minister of Economy and Finance Baroin

The sacred triple A of France is under pressure: the rating agency Moody's announced Monday night that it planned to lower the perspective of the note lights. A warning to potentially dramatic consequences for France and for the euro area. Explanations.

Our triple-A is really threatened?

For now, Moody's said it just gave himself three months to determine whether his perspective "stable" was still warranted.The agency is careful to note that this review is part of its annual financial statements for France and it is not yet at this stage, a decision on the rating of the country. However, if the prospect of this note should be revised to "negative", this would imply that Moody's would likely reduce the medium-term (usually for a term of three to twelve months). France, would become the new big country, after the United States to lose the precious talisman financially.

This warning is justified? The presidential campaign hostage rating agencies?

The possibility of a deterioration in France is not a surprise. The warning from Moody's, yes. Rating agencies usually just an opinion or negative stable and degrade or maintain the rating. This is especially the timing is symbolic in three months, the campaign for the Elysee Palace in full swing.A negative outlook on the triple A French will become a major issue of debate. The presidential campaign of 2012 will therefore be under supervision of rating agencies. Read about the blog corridors Bercy.

Concerns about a possible deterioration in the sovereign rating lights are not new. France shows the worst ratios of budget club triple A. Government deficit (5.7% this year) exceeds the level of other triple-A in the euro area (Germany is 0.9%, Denmark 4.8%, Netherlands 3.9% Austria 3% and Sweden has a surplus of 1.5%). France, also displays a primary deficit (excluding debt burden) twice (3% of GDP) than its neighbors (1.6% in the Netherlands, Austria 0.9%, 0.5% Luxembourg, while Germany and Finland should generate a primary surplus this year).Finally, France is also one of the few members of the Triple A club to suffer from a deficit in its trade balance. Also, since the deterioration of the U.S. Standard & Poor's this summer, the French note seems undeserved. However, all agencies – including Moody's – had denied market rumors in August, reiterating that they maintained their confidence in the Triple A of France.

The context was it damaged?

Since this summer, nothing goes to France: there was no growth in the second quarter and looks just as sluggish by the end of the year, the euro area is still mired in the debt crisis and banks French are in the financial market turmoil. This is precisely what worries Moody's. It is "crucial" for France to maintain "investor confidence in its ability and willingness to deal with unexpected challenges," noted the agency in a statement.Or "France could face a number of challenges in the coming months – such as the need for additional support to other European countries or its own banking system, which could increase so significant commitments to be borne by the budget of the country, "she adds. In short: France has more financial flexibility. We understand better the current government reluctance to recapitalize its banks with public money and increase the discount to private creditors of Greece.

What consequences for France if they lose their triple A?

The fact benefit from the best possible rating allows France to borrow in the markets on very favorable terms to finance its debt. Lose this note would increase interest rates, so an increase in the cost of borrowing of the French state.The difference between the rates of French government bonds to 10 years (OAT) and German government securities of similar maturity (Bund) has also passed on Tuesday for the first time, a percentage point. At the same time, insurance against a default on the obligations of the French state (CDS) increased by 10 basis points. Currently, it costs 194,000 euros to insure against exposure to 10 million euros in French government bonds. France must make 8.6 billion euros of bonds by December and 179 billion in 2012 to renew its stock of debt. Direct consequence for the first time, the debt burden will be the first budget item next year, on top of School. According to government projections, it will amount to 48.77 billion euros. If France is losing its triple A, it could be more.Because unlike the United States, whose Treasury bills are still considered a safe haven, the obligations of the French state is not immune to a general distrust of investors, because of the context of European crisis.

And for Europe?

The loss of the triple A French would not be good news for the euro area. This would call into question the quality of borrower of the European Financial Stability (EFSF, which currently enjoys the highest rating possible), because France is the second largest guarantor. Now this tool is the cornerstone of the plan to end the crisis in the euro area. Moreover, France would potentially the camp of countries to aid those who need help.This would call into question the relationship quickly the Franco-German motor of advances in European governance, as both countries do more than talk on equal terms (triple A to triple A). The temptation would be great for the best students in the euro area to operate in a vacuum and cease to be in solidarity with the lower-rated countries. This would result in the breakup of the euro area.

Can we avoid losing our triple A?

"The continued commitment to implement economic reform measures and budget, and visible progress in the goals" for reducing debt "will be important for maintaining the stable outlook" of the note of the country said Moody's. The Minister of Economy and Finance Baroin said Tuesday that Paris would "do everything possible" to keep its deficit reduction targets.For 2011, the deficit target of 5.7% seems achievable. He enrolled in the draft budget law in 2012 (4.6% of GDP), that MPs prepare to vote today, the state seems inaccessible, because built on a growth assumption of 1.75 %. However, most forecasters expect at best a GDP growth of 0.9% next year. That means ten billion euros in additional savings to identify. Last night, Prime Minister Francois Fillon acknowledged that it will take "new measures" austerity if growth is not at the rendezvous. At the risk of bringing France into the spiral-rigor recession in Greece and Portugal for two years.

Banks must be better capitalized to avoid an escalation of the crisis that would be caused by a financial collapse, said Sunday the German Finance Minister Wolfgang Schäuble on the ZDF television, adding that banks no longer trust the to each other.

"We need better regulation and better capitalization of banks," he said.

"Everyone will not like this, but it is the best way there is no escalation of the crisis caused by a collapse of the banking system."

"The cause of this crisis is too much debt, but we must fight the danger of contagion. We must simply recognize that banks currently have more trust towards each other, so the market Banking is not working as it should.The best way to combat this is a better recapitalization. "