Funding difficulties persist for European banks

This follows from the last quarterly report of the Bank for International Settlements (BIS).

The sovereign debt crisis and the increased dependence of banks, especially the French and Italians, the liquidity of the ECB.

Increases the reluctance of banks to lend to them.

Each is more difficult to find funding dollars.

The difficulties of funding for European banks will persist due to the sovereign debt crisis, which has increased the dependence of French and Italian banks the liquidity of the European Central Bank ( ECB ).

This follows from the last quarterly report of the Bank for International Settlements (BIS) in December, released this Sunday, in which analyzes the situation of public debt markets and banks. The BIS, based in the Swiss city of Basel , remember that the end of 2014 bank debt maturing in the amount of $ 2 trillion (1.5 trillion euros).

13% of this amount is government guaranteed debt, which has been produced primarily in 2009 maturities that may hinder its extension to reasonable terms. Due to the increasing reluctance of banks to lend to each other, "of the interbank market effectively shifted the balance of the Eurosystem", notes the BIS.

The use of ECB deposit facility where banks can deposit their money in one day has already passed the 300,000 million euros and the ECB's lending to banks has doubled this amount does not include emergency assistance individual banks.

More than half of ECB loans to European banks has gone to French banks, Irish and Italian . French banks have borrowed 141,000 million euros. Italian banks have also borrowed 111,000 million, increasing its reliance on ECB funding to 2.8% of their balance sheets.

Difficulty dollar funding

European banks also have many difficulties to find financing in dollars in U.S. money market which has increased the cost of dollar-euro exchange to the highest level since December 2008. The mutual fund money market U.S. finance have left European banks (-42% from late May) to avoid indirect exposure to sovereign debt risk, according to the BIS.

Emerging markets have been adversely affected by the crisis in the euro area to alleviate the funding constraints, the ECB announced this week two new liquidity operations in euros with a maturity of three years. In addition, six major central banks around the world, led by the U.S. Federal Reserve (Fed) and the ECB agreed on a concerted action to halve the cost of dollar swap lines and establish lines of trade in other currencies .

The BIS notes that the premium paid by financial institutions to exchange euros in dollars fell from 151 to 119 basis points, after learning of concerted action.

In the reporting period, between early September and December, banks in the euro area have tightened the conditions and have increased interest rates on loans to businesses and homes and planned to do so in the fourth quarter. One of the key factors behind this hardening was the worsening of the conditions to which the banks themselves get funding. For example, syndicated loans in the proportion of banks in the euro area in global new loans fell in October to 18% from 26% a year earlier.

The average interest rate of all new loans from banks in the euro area companies increased one percentage point year on year to end September. Banks in Greece and Portugal increased interest rates by two percentage points.

The emerging markets have been adversely affected by the crisis in the euro area, which has led investors to withdraw 25 000 million (18.797 million euros) of emerging market funds in August and September, especially equity funds . There has been a repatriation of assets by investors in the euro area. The withdrawal of 25,000 billion emerging markets fund portfolio inflows match of 85,000 million euros at the euro area, a large part of France.

Rajoy in summit of European Peoples Party

Rajoy will meet with the secretary of the U.S. Treasury, Timothy Geithner.

First international meeting of the next president after the elections.

Transfer the message that Spain is a viable deficit will honor its commitments.

The next prime minister, Mariano Rajoy , travels Wednesday to Marseilles, where it will be s u first international event after winning the elections , to participate in the Summit of European People's Party (EPP) and have meetings with Angela Merkel, Nicolas Sarkozy and Jose Manuel Durao Barroso.

seen before on Thursday with some of the major European leaders late Rajoy have an interview with the secretary of the U.S. Treasury , Timothy Geithner. The financial responsibility of the Government of Barack Obama the next president starts with a round of contacts co n several presidents and prime ministers in Europe.

According to Rajoy himself stressed, which transmit to Geithner and European leaders to interview the morning is the same: Spain is a country that will honor its commitments viable deficits, urges end to doubts about the sovereign debt of several countries euro area through the new Treaty Merkel and Sarkozy proposed and make reforms to enhance competitiveness.

Speech in Congress

This Thursday the agenda of the next president will be charged more, attend a multilateral meeting behind closed doors with government leaders and prime ministers of PPE, and then star in bilateral meetings with Merkel, Sarkozy, President of the EU Commission, Jose Manuel Durao Barroso and Polish Prime Minister Donald Tusk.

Thereafter, the PP leader will speak at the plenary of the Congress of the European people.

The Marseille is the first international Rajoy after winning the elections of 20-N and, although he has already spoken by phone with Merkel and Sarkozy, in Marseille will have the opportunity to directly tell the foundation of his economic plan, which focuses on containment of the deficit.

EU prepares for future summit

EU prepares a key to the future summit of the euro and to calm markets

Budgetary discipline should be fixed and established mechanisms for joint debt issuance.

The European Council President, Herman Van Rompuy, designed to make the bailout fund with more capabilities and financial resources.

José Luis Rodriguez Zapatero attends his last European Council.

The leaders of the European Union on Wednesday preparing a decisive summit for the future of the euro , which is expected to agree a set of short-term measures to calm the tension in the markets and other long to seal the budgetary discipline and pave the way emissions of common debt.

Twenty-seven are still studying the document sent to them on Tuesday the European Council President, Herman Van Rompuy , with a long list of ideas , including providing the permanent bailout fund (MEDE) with new capabilities and more financial resources.

David Cameron will not accept changes to the treaties without safeguarding the City 's community leader also suggested that the European Stability Mechanism (MEDE), which entered into force will be brought forward to 2012, can participate directly in the recapitalization of banks and also has the characteristics of a lending institution.

The latter would allow unlimited access to the European Central Bank (ECB) and act as a true firewall on the debt crisis , a demand raised by France but had always been rejected by Germany.

Another short-term measures proposed by Van Rompuy is to increase IMF resources through bilateral loans that can help troubled euro countries.

In other respects, Van Rompuy proposed to the Twenty shield the fiscal discipline of the euro countries through various forms of exchange agreements (some of them immediate and easy approval and other long-term and long ratification).

The aim is that the commitment of the countries of the euro fiscal discipline open the door "long term" to the creation of a "joint debt" (Eurobonds, called otherwise).

However, this step only come after a stepwise procedure and on the basis of strict criteria for budgetary discipline and economic competitiveness, according to various sources have been explained and diplomatic community.

Heads of State and Government of the Twenty initiate discussions with an informal working dinner on Thursday, beginning at 18.30 GMT.

The summit will formally begin on Friday morning and will run throughout the day.

Approaching postures

Despite the importance of the meeting, EU sources expect moved that the meeting ends without major delays due to previous contacts have enabled Van Rompuy bring positions in many of the points.

The British Prime Minister David Cameron , arrived in Brussels after having warned that not accept changes to the treaties without safeguards to protect the interests of his country, especially the City , the City of London and an economic engine in the UK.

This will be the last European Council President in office of the Spanish Government, José Luis Rodríguez Zapatero , who leaves office in two weeks after nearly eight years as Executive and a number of community summits to his credit.

Italian Government approves the adjustment plan to save 24,000 million euros

Men should contribute 42 years to get his pension and 41 women.

One measure of the plan includes the freezing of pensions that are higher than 960 euros.

According to Monti, the measures are particularly "incisive about tax evasion."

The prime minister has announced compensation waived his remuneration executive leader and Minister of Economy.

The EC welcomes the Italian setting but warns that further reforms will be needed.

The Council of Ministers of the Italian government headed by Mario Monti approved on Sunday the first executive budget adjustment of technocrats and that this Monday will be explained in the Parliament of Italy , government sources.

The approval of the package of economic measures and financial, which aims to save 24,000 million euros, was scheduled for Monday , but decided to advance the Council of Ministers, which has lasted over three hours, after Monti presented the plan to unions , business, social partners and political parties.

Monti, who appeared at a press conference, said his government has " a short term "and" a firm commitment to help Italy out of a grave crisis, a crisis and an economic malaise and Italian society that threatens to destroy what was built by four generations of Italians. "

Italian public debt is the fault of the Italians, who have not given importance to the future of the nation's children

He said that "the great Italian public debt is not the fault of Europeans, is the fault of the Italians in the past have given importance to the future of the nation's children. "

According to Monti, "we have been aware of the need to create the conditions for growth in Italy," to bring under control the deficit and public debt, and "we have also given a very particular weight to equity. "

He said "we have also had to distribute sacrifices and have been careful to distribute them. You will see that our measures are particularly incisive in terms of tax evasion. "

The European excomisario added: "The plurality of sacrifices we want to be seen as a reawakening of the economy Italian, Italian society. "

He added that the labor reform will be addressed the coming weeks: "We have not looked at the labor market, but it will be a definitive step" to give greater weight to merit and competition and greater openness.

As for the costs of policy and steering gear, said, "we adopted a criterion of transparency at the level of international best practice and we decided inspire our asset declarations on the principle of not declaring only what we are asked public office now, but declare our entire heritage. "

Sacrifices and supports equal

Monti said that retributive compensation resignation as prime minister and minister of economy, but retains the income as a senator.

He also referred to the modification of the provinces and said the provincial boards will be abolished and that the provincial councils will have only 10 members.

The prime minister, who wants the decree is called Salva-Italy , announced that it will support the proposal of a tax on financial transactions in the European institutions, a point that Italy had so far had an opposite position.

He said there will be "sacrifice", but also actions in support of enterprises and liberalization in the interests of consumers and competition , while the fight against tax evasion and government priority will exclude the option of resorting to amnesties.

The Minister of Labour, moved

For its part, the Italian Minister of Labour, Elsa Fornero, boarded one of the most contentious issues, the modification of the pension system , with the increase in 42 years for men and 41 for women in the minimum years of contributions in order to receive pension "early" without resorting to quotas.

In the private sector, retirement is for women aged 62 years and for men at age 66 in 2012, with a penalty of 3% for those who are withdrawn, while the total equalization will age 66 years in 2018, he added.

After the minister concluded his speech excited, Monti said the plan calls for freeze pensions in excess of 960 euros per month and maintains the review of minimum pensions in line with inflation.

Europe wants more reforms

The financial vice-president of the European Commission, Olli Rehn , has said that the adjustment package approved by the Italian government offers "a much needed signal a new approach to economic policy," but warned that Rome will face more reforms soon.

Rehn said that the EC will conduct a detailed analysis when you get all the details, "but overall the package is timely and ambitious, giving a much needed signal a new approach. "

He stressed the efforts of fiscal consolidation , "to restore the credibility of the economy and control of their debt." D staked further that measures to increase tax revenues were partially offset by incentive tax to support enterprise and employment and welcomed the commitment to reinforcing the fight against tax fraud.

"In the area of pensions , some long-awaited measures are being introduced to reduce pension expenditure while reinforcing the justice system and increase the participation of the workforce, "he said.

EU expresses its concern about the health of Timoshenko

The European Union on Friday expressed concern about the health status of the former Ukrainian Prime Minister Yulia Timoshenko and warned the Ukrainian authorities of the possible consequences of this event in bilateral relations.

"We are concerned by reports of deteriorating health," he told a news conference on Community Affairs spokesman, Michael Mann , who asked that guarantees Kiev medical examination "timely" and "professional."

Timoshenko contributors have complained that the policy in custody while being tried for abuse of power , is "very bad" and criticized the judge will not allow it to be accessed by your personal physician.

Brussels, Mann said, is following "very closely" the case and is waiting for the authorities to allow its representative in Kiev to see the former prime minister.

"We expect Ukraine to listen to our statements and conduct a fair and independent legal process , "the spokesman said.

Mann said the EU's objective is to go ahead with the trade agreement negotiations underway with the Ukrainian government and expected to close before year end.

But he warned that "developments in the field, referring to the case against Tymoshenko - are not too positive. "

Timoshenko, which he described as "political" process opened against him, could be sentenced to several years in prison for exceeding their authority by signing a 2009 gas contract with Russia.

European shares fall to minimum annual

The European stock markets have suffered a debacle this Thursday . With a lowered average of 4% , all the great places recorded the worst losses of the year.

Pressured by the debt market , the tibia , in the opinion of investors, intervention of the president of the European Central Bank , Jean-Claude Trichet, the fall of Wall Street and fears the worsening U.S. economy , the stock ended at the minimum exercise.

Thus, Frankfurt has dropped the 3.4% and back to levels of last October , while London has fallen 3.43% and prices is in September 2010 .

Paris has given 3.9% to levels of last July , while Milan has lost 5.16% and goes back to April 2009 , while the stock Spanish has lowered 3.89% and is at levels of last June .

U.S. and ECB waving a quiet day

The day was relatively quiet . In the morning the Spanish risk premium relaxed to 360 basis points. The Treasury successfully solved the auction of the medium term , which placed 3,300 million.

But within hours of the close of the session, Trichet assured that they will continue to monitor developments in inflation without making concession whatsoever to the debt problems of many European countries. And we began the descent .

Then the Dow Jones began his day with a drop of more than 2% , dragging the European markets since then they met some reports indicating a slowdown in the U.S. economy.

Statements

There followed the policy statements on issues of markets. The European Commission president , Jose Manuel Durao Barroso , called for extension of the rescue fund and warned of the possibility that the crisis of the debt is spreading to more countries .

The Prime Minister, José Luis Rodríguez Zapatero , praised the auction of debt and analyzed the involvement of Trichet, while considered " essential "that the agreements of the eurocumbre the July 21 early implementation .

The People's Party called for early elections would be convened before November 20 .

In Italy, whose debt differential with Germany rose to 389 points, the prime minister, Silvio Berlusconi stressed the solidity of the Italian economy.

Meanwhile, the euro fell from 1.435 to 1.41 dollars.