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Posts tagged ‘France’

France’s triumphant ‘Joan of Arc’ vows to bring back franc and destroy euro

Marine Le Pen is spoiling for a fight. The leader of France’s Front National   vows to smash the existing order of Europe and force the break-up of   monetary union, if she wins the next election.

Marine Le Pen is spoiling for a fight. The leader of France's Front National vows to smash the existing order of Europe and force the break-up of monetary union, if she wins the next election. It is no longer an implausible prospect.

Mrs Le Pen said her first order of  business on setting foot in the Elysee Palace will be to announce a  referendum on EU membership, “rendez vous” one year later. “I will  negotiate over the points on which there can be no compromise. If the  result is inadequate, I will call for withdrawal,” she said. Photo: EPA

Turning Into PIIGS: Why France’s Debt Crisis Could Doom the EU

European Union

European Union (Photo credit: erjkprunczyk)

By Bill Bonner

From one ragged country to another. We are on a tour of Europe’s unraveling  economies. Ireland…Spain…and now France.

Spain was in the news again yesterday. Its borrowing rate rose to 7.5%…a  level that everyone says in “unsustainable.” We haven’t done the math ourselves,  but we will take their word for it.

Policy makers in Madrid were rattled. Naturally, they took no responsibility  for the mess. Instead, they blamed…short sellers! Yes, and banned short selling  for 3 months.

That ought to do it, right? Everybody knows markets go down because people  sell. So make selling illegal. Problem solved!

Now our travels have brought us back to France. At the heart of Europe…and at  the heart of the alliance with Germany and the whole European Union project, if  France can’t keep itself together…the whole EU is doomed.

And yet, France seems to be hanging by a thread too…while Francois Hollande  reaches for a pair of scissors!

The Telegraph:

The debt levels which the country has are as  unsustainable as Britain’s, yet its policies are more irresponsible and its  remedies more restricted. Although it is considered a core country in the  eurozone, France’s economic profile now bears more resemblance to Greece’s  [than] Germany’s.

Read more: Turning Into PIIGS: Why France’s Debt Crisis Could Doom the EU http://dailyreckoning.com/turning-into-piigs-why-frances-debt-crisis-could-doom-the-eu/#ixzz220e0lsvJ

Appetiser cost of Greek exit is €155bn for Germany, France: trillions for meat course

Main building of the bank of Greece.

Main building of the bank of Greece. (Photo credit: Wikipedia)

By

Eric Dor’s team at the IESEG School of Management in Lille has put together a table on the direct costs to Germany and France if Greece is pushed out of the euro.

These assume that relations between Europe and Greece break down in acrimony, with a full-fledged “stuff-you” default on euro liabilities. It assumes a drachma devaluation of 50pc.

Potential losses for the states, including central banks

Upper bound of the losses

Billions €

French State

German State

TARGET2 liabilities of the Bank of Greece

22.7

30.2

 

Greek sovereign bonds held by the Eurosystem: SMP

9.8

14

Bilateral loans to Greece in the context of the first programme

11.4

15.1

 

Guarantees to bonds issued by the EFSF to provide loans to Greece in the context of the second programme

8.4

11.2

 

Guarantees to debts issued by the EFSF in the context of its participation to the “Private Sector Involvement” –restructuration of the Greek debt:“sweetener”

6.5

8.6

Guarantees to debts issued by the EFSF in the context of its participation to the “Private Sector Involvement” –restructuration of the Greek debt: payment of accrued interest

1

1.4

 

Guarantees to bonds issued by the EFSF to provide loans to Greece in order to buy back sovereign bonds used by banks as collateral to obtain funding from the Eurosystem

7.6

10.2

Total

66.4

89.8

 

They conclude:

The total losses could reach €66.4bn for France and €89.8bn for Germany. These are upper bounds, but even in the case of a partial default, the losses would be huge.

Assuming that the new national currency would depreciate by 50 per cent against the euro, which is realistic, the losses for French banks would reach €19.8bn. They would reach €4.5bn for German banks.

full article at source: http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100017148/appetiser-cost-of-greek-exit-is-e155bn-for-germany-france-trillions-for-meat-course/

Irish FiskalPakt rejectors are now 13/8 on favourites at Paddy Power

Thomas,

Quote from the SLOG. Paddy Power has odds on that the Stability Referendum will fail:

As well as France’s rejection of the ozy in Merkozy last night, German Chancellor Angela Merkel’s centre-right coalition lost power in the state of Schleswig-Holstein…and Irish FiskalPakt rejectors are now 13/8 on favourites at Paddy Power. But having a French President demanding growth, an ECB boss saying we need growth, and a Greek electorate saying ‘no more cuts’ still isn’t bringing home to the more zealous europhiles that the euro crisis has (a) demonstrated a dangerous failure of the currency, and (b) consists of far more than lazy Meds who borrowed too much and now can’t be arsed to pay the loans back.

Pass the word on…………………………………………………

 

Comment :

Happy to oblige!

This is Europe’s rejection of Merkcosi austerity (Vote NO )

From www.thepressnet.com

French and Greek citizens reject the mouthpieces for AUSTERITY..The Irish Government should take note, the same faith awaits them! Irish citizens should now reject the German inspired latest round of impending austerity concealed within this so called fiscal stability treaty. The current shower of collaborators in the Irish government will not be happy with the results in France and Greece .The Peoples of Europe are now getting up off their knees and the sell-out politicians and mouthpieces for German austerity are been kicked out of their plush offices.

Now that France has also rejected the Austerity madness ,Ireland should now reject this failed and divisive policy that has been touted as the only way forward for Europe ! .We need investment in our unemployed, re-education , up-skilling and a massive stimulus packet on par to the Marshall plan after the second world war for Europe! Merkel has created a wave of anti German feeling through Europe and her own party has suffered a major loss in the regional elections this weekend .The German citizens are beginning to realize that dictating austerity measures on to the smaller states within the EU is not a great way to keep friends or customers happy!

The German economy is contracting and Austerity will soon have to visit Germany itself .Merkel has been a disaster for Europe and the Euro! Merkel is the mouthpiece for the bondholders and moneymen and she is now going to have to face the new reality in Europe. Forcing other people to pay the gambling debts of the major German banks is only going to backfire, people will only take so much and she should know this coming from East Germany.

We in Ireland must also step up and take deceive action against this austerity madness, Our political system is totally corrupt and the media is under the control of the gangsters in power .We must send them and their masters in Berlin a strong message!“NO way we will not pay” we will not comply with their demands, these bank debts are not ours and we will not hand you the whip (“A YES VOTE”) that in turn will be use on us. Citizens of Ireland follow the Greeks and the French say no to more Austerity. Make a stand. Vote NO and join the real Europeans for a more inclusive Europe for all.

 

www.thepressnet.com

Challenge to Austerity

Deutsch: Bundeskanzlerin Frau Dr. Angela Merke...

Deutsch: Bundeskanzlerin Frau Dr. Angela Merkel beim Tag der Offenen Tuer im Garten des Bundeskanzleramts English: Chancelor of the Federal Republic of Germany Dr. Angela Merkel on the open door day at the Bundeskanzleramt in Berlin, Germany Français : Dr Angela Merkel, chancelière de la République Fédérale d’Allemagne, lors de la journée portes ouvertes de la Bundeskanzleramt à Berlin, en Allemagne. (Photo credit: Wikipedia)

BERLIN—Europe’s voters delivered another rebuke to their leaders Sunday for failing to overcome a debt crisis that has thrust much of the region into an economic tailspin.

Less obvious is what Europeans expect their governments to do differently. From Greece to France, incumbents lost power—joining a long list that includes the former leaders of Spain and Italy. But their successors will likely find it difficult to pursue policies that deviate much from the austerity-focused course championed by Germany, Europe’s paymaster.As Europe’s only healthy large economy, Germany’s support would be essential for any change. And Chancellor Angela Merkel and her government, fearful of popular resistance in Germany, have made clear in recent weeks that they wouldn’t soften their austerity demands, no matter who won Sunday’s elections.

full article at source:http://online.wsj.com/article/SB10001424052702303630404577388360846621648.html?mod=rss_most_viewed_day_europe?mod=WSJEurope_article_forsub

Hollande,s French election win

Français : Francois Hollande - Mardis de l'ESSEC

Français : Francois Hollande – Mardis de l’ESSEC (Photo credit: Wikipedia)

PARIS (Reuters) – A victorious Francois Hollande faces a short honeymoon after his election as France’s first left-wing president in 17 years, with financial markets eager for clear signals on his policies and how hard he plans to push back against German-led austerity.

The moderate Socialist beat conservative Nicolas Sarkozy with 51.7 percent of Sunday’s runoff vote after a bruising campaign dominated by the same anger over economic crisis that has felled 10 other European leaders since late 2009.

While jubilant left-wing voters partied into the early hours of Monday in central Paris, Hollande admitted that for him, the festivities would have to be short-lived

full article at source: http://www.euronews.com/newswires/1507366-short-honeymoon-for-hollande-after-french-election-win/

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