Crisis in the EU for the lack of agreement on the budget

Approval of the budget of the European Union (EU) by 2011 has run aground on Monday definitely differences between the governments of the Twenty and the European Parliament (EP), which opens a new crisis in the air leaving the funding for next year.

With an agreement on the figures for next year under his arm, the Council, an institution that represents the Member States, and the Parliament have made a pact not to move them forward because of the war between a minority of countries and parliamentarians and the The european crisis.
A group of Member States, led by the United Kingdom and the Netherlands have refused to accept the demands of PE, which requires a series of political commitments in return for giving up its claim to increase the budget next year by 6%. MEPs want guarantees in writing about his role in deciding the future of EU funding and the opening of a debate on the EU to provide more resources with which to finance themselves. In the two claims that today have become a "no" convincing national budgets, although the Belgian presidency has exhausted the deadline, set for midnight, looking for a deal and the The european crisis .

The european crisis
The position of countries is difficult to accept for the MEPs, who believe that the Council did not have such account as it should be as set by the Lisbon Treaty, to which the rules are negotiating the budget for the first time this year. This was acknowledged on Monday the European Commissioner for Budget, Jamusz Lewandosky, who has warned countries that their refusal to agree would be seen as an "insult" by the Parliament and the The european crisis.

The commissioner, who has tried to facilitate an agreement between the two institutions has ensured that the "absolute majority" of countries willing to reach an agreement and has accused "a few delegations" to inflate their demands and derail negotiation and the The european crisis.
"Parliament has shown from the beginning a great sense of responsibility", stressed in a press conference the chief negotiator of the Parliament, Alain Lamassoure, who stressed that the deputies had never before accepted as is raised by the figures Council. The expiry of an agreement, the European Commission will now propose a new draft budget, which will need to be considered by the Council and Parliament. According Lewandosky, "probably" the EU will have to start the year by extending the budget this year and using the system known as "twelfths", giving a monthly expenditure of up to one twelfth of the budget of the previous period. This, according to Brussels, "seriously affect" projects like the Foreign Service or the new structures of financial supervision and the The european crisis, two of the flagship initiatives of the Union.

European Budget
"The beginning of next year will not be easy for the beneficiaries of the EU budget," warned the sheriff, who deeply regretted the "fiasco" of the negotiations and the The european crisis.. Meanwhile, some sources insist that the budget could still be agreed before the end of the year and that the matter will be discussed by the Heads of State and Government, meeting in Brussels in mid-December. The President of the European Parliament, Jerzy Buzek, who participated actively in the negotiations, has said in turn that the institution will do "everything possible" to approve the budgets.
In the same vein, the Belgian Minister of Budget, Melchior Wathelet, has insisted he can still get an agreement, provided that both parties are willing to give up something. They will have to overcome the reluctance of countries like the United Kingdom and the Netherlands, contrary to cede in Brussels at a time when they are forced to implement major cuts at home. The EU budget is roughly equivalent to 1% of gross national income of the EU and more than two thirds of it are engaged in agricultural support and cohesion and development and the The european crisis..

The EU will develop new indicators to help overcome the crisis

The need to develop new indicators to measure the effectiveness of decisions taken by governments to end the crisis, has been put in evidence at the ministerial meeting on Policies and Metrics on Information Society, held in Madrid.

The meeting was organized by the Spanish presidency of the European Union attended by representatives of the EU, OECD and the International Telecommunication Union, ECLAC (Economic Commission for Latin America and the Caribbean) and experts in metrics that have adopted " Madrid Document "which sets international cooperation for the development of economic indicators.

In a press conference, the head of the Unit of Economic Analysis and Statistics of the Directorate General Information Society and Media EU, Lucilla Sioli, the office manager for the development of ITU Telecom, Sami Al Basherer and division chief of integrity and innovation in the OECD, Cristian Vergez, highlighted the timeliness of this meeting.

They explained that at this time of economic crisis indicators are an essential tool for policy making to help overcome the crisis.

A journalists' questions, noted that measurements performed in different countries are fully comparable as they are reflected always the same data, although there are some difficulties in new subjects such as mobile internet, networks or green technologies, where need to refine procedures.

Secretary of State for Telecommunications and Information Society Francisco Ros, said that in the Madrid Declaration states that governments shall meet at least once a year to further coordinate measuring systems and development of new indicators.

Collected is used primarily official statistical sources, but, where necessary, officers will not be used with particular attention to the reliability and quality of results.

At the meeting, reminded the new European Digital Agenda just to approve the EU and Francisco Ros noted that its development is a priority for Europe despite the economic situation.

Merkel and Sarkozy call for EU to act against speculation

The leaders claim to Brussels together to make a proposal on short selling .- The Commission says working "expeditiously", and announced new products for summer

French President Nicolas Sarkozy and German Chancellor Angela Merkel, have come his way of apparent differences that have arisen between them as a result of unilateral decisions on financial monitoring of Berlin and its dramatic savings plan, which Paris does not just look favorably as it could hinder prospects for recovery in Europe. In a letter published today in the German capital, the leaders of the two main powers of the euro have asked the European Commission (EC) to accelerate the fight against speculation.
In the letter, addressed to the President of the EU executive, José Manuel Durão Barroso, Sarkozy and Merkel will claim that accelerate and intensify work on the regulation of financial markets and to explore the possibility of EU wide ban on short sales in listed companies and the bond market states. "The latest market developments lead us to ask the Commission to accelerate and intensify its work" on the regulation of "infrastructure of derivatives markets," they say. "In particular we believe it is imperative to improve transparency in short sales of stocks and bonds, especially in the sovereign debt markets," added the two leaders in the text.

Brussels has responded through one of its spokesmen, Pia Ahrenkilde-Hansen, who has announced new "during the summer." "The Commission is working expeditiously on these issues and appreciate the support that reflects the letter to our ideas and approaches and, as we announced, we will present concrete proposals during the summer," he has said before nuance that does not interpret the letter as a complaint, "but as a support" to the action plan of the EU.

Germany has unilaterally decided to ban short selling in the open its financial institutions and bonds to curb speculation. The decision, which was the subject of criticism by their partners in the euro to expose the lack of coordination between eurozone countries when dealing with the crisis, which in turn also increased the uncertainty in the markets was completed with the restriction of such operations in the derivatives. He has also forced to disclose short positions in all settings.

The market volatility through the overflow from the fiscal crisis of Greece in February this part has led EU countries to accelerate efforts to advance financial reform. Governments want to control speculators are behind the collapse of the euro, who are enriched by fall of the stock and they are doing business in the secondary markets for debt at the expense of feeding with countries with more deficit. This task is the responsibility of G-20, but has stuck by the divergence of opinions on both sides of the Atlantic and among European executives on how to do it.

A possible rate to banks to prevent taxpayers have to pay next crisis, as has happened in the present and that Germany has already announced it will launch in 2012, more control over the rating agencies and increase transparency markets are some of the main challenges for nearly three years later.

Bernanke said that the crisis in Europe will have a "minimal impact" on U.S.

The chairman of the Federal Reserve (Fed, for its acronym in English), Ben Bernanke, acknowledged that "current developments in the public deficit is unsustainable," but that this "exceptional growth"-close the year at 10.6% - has been necessary to overcome the worst recession the U.S. since the Great Depression. Furthermore, told reporters before participating in the Congressional Budget Committee, has said we are seeing a slight improvement in household consumption and, although recovery is slow and painful for many Americans, has been confident that the progress of domestic demand will be capable of replacing policies of encouragement as the motor of world power and the crisis in Europe will have a "minimal impact" on its economy.
The optimistic words of Bernanke have sat well with the international stock exchanges. In the case of Europe, the rally has left behind three consecutive days of losses, while the euro soared slightly and could be positioned above $ 1.20. The Wall Street closed with a 1.1% rise, Milan is up 2%, Frankfurt, 1.98%, Paris, another 1.96%, and London, 1.15%. As for the Ibex 35, the Spanish selective has regained its former tendency to move more than the rest up everything he touches, something not seen in weeks and ended up with a rebound of 2.3% thanks to last-minute boost parquet flooring have given the words of Fed chairman Thus, after scoring three consecutive 14-month minimum, tomorrow will open in 8868 points, but what really has not changed is that if you go down, it will be more strongly .

Already before the congressional committee, Bernanke has assured today that the U.S. central bank would continue taking the steps necessary to ensure financial stability and economic recovery as it has in coordinated action with ECB in the foreign exchange market to try to curb the worsening of the fiscal crisis of the euro. In fact, he added, the United States played part of his recovery across the Atlantic as "the recent fall" on the stock and the deterioration of the outlook in Europe for the crisis "minimal impact" on the economy their country. For this reason, is confident that U.S. GDP will grow at "a modest pace" this year.

Specifically, the Fed estimates that the U.S. economy will increase between 3.5% and 4% in 2010 and recorded a slight increase next year. A growth rate sufficient, even for a short, to ensure that the deteriorating labor market, which currently has an unemployment rate of 9.5% at end-April, will not continue.

Bernanke said that the crisis in Europe will have a "minimal impact" on U.S.

The chairman of the Federal Reserve (Fed, for its acronym in English), Ben Bernanke, acknowledged that "current developments in the public deficit is unsustainable," but that this "exceptional growth"-close the year at 10.6% - has been necessary to overcome the worst recession the U.S. since the Great Depression. Furthermore, told reporters before participating in the Congressional Budget Committee, has said we are seeing a slight improvement in household consumption and, although recovery is slow and painful for many Americans, has been confident that the progress of domestic demand will be capable of replacing policies of encouragement as the motor of world power and the crisis in Europe will have a "minimal impact" on its economy.
The optimistic words of Bernanke have sat well with the international stock exchanges. In the case of Europe, the rally has left behind three consecutive days of losses, while the euro soared slightly and could be positioned above $ 1.20. The Wall Street closed with a 1.1% rise, Milan is up 2%, Frankfurt, 1.98%, Paris, another 1.96%, and London, 1.15%. As for the Ibex 35, the Spanish selective has regained its former tendency to move more than the rest up everything he touches, something not seen in weeks and ended up with a rebound of 2.3% thanks to last-minute boost parquet flooring have given the words of Fed chairman Thus, after scoring three consecutive 14-month minimum, tomorrow will open in 8868 points, but what really has not changed is that if you go down, it will be more strongly .

Already before the congressional committee, Bernanke has assured today that the U.S. central bank would continue taking the steps necessary to ensure financial stability and economic recovery as it has in coordinated action with ECB in the foreign exchange market to try to curb the worsening of the fiscal crisis of the euro. In fact, he added, the United States played part of his recovery across the Atlantic as "the recent fall" on the stock and the deterioration of the outlook in Europe for the crisis "minimal impact" on the economy their country. For this reason, is confident that U.S. GDP will grow at "a modest pace" this year.

Specifically, the Fed estimates that the U.S. economy will increase between 3.5% and 4% in 2010 and recorded a slight increase next year. A growth rate sufficient, even for a short, to ensure that the deteriorating labor market, which currently has an unemployment rate of 9.5% at end-April, will not continue.

Cameron said that the deficit is worse than expected

Prime Minister David Cameron told the British on Monday that the scale of the budget problems the country is even worse than we had anticipated, citing the Greek crisis as an example of the risks of inaction .
Cameron drew a bleak picture two weeks before the emergency budget presentation on 22 June, when his coalition government will give more details of a deficit-cutting measures amounting to 11 per cent of GDP.

Offering few details about where the cuts will be attacked by the previous Labour Government's economic mistakes of the past decade, he said, had left a legacy of debt crisis."Greece remains a warning of what happens to countries who lose credibility, or whose governments are difficult decisions that can be avoided somehow," he said in a speech at Milton Keynes in central England.
"I want to explain to the country ... why the global escalation of the problem is even worse than we thought," he said, adding that the structural nature of the debt meant that "a return to growth (economic) will not be resolved."

Cameron said the public sector had grown too with Labour. If no actions were taken in five years the cost to repair the debt will be higher than what is spent together in schools in England, climate change and transport.
"Based on the calculations of the last government, it is expected that in five years we will be paying interest on our debt is around £ 70,000 million (84,000 million euros). It is a simply amazing amount."

Spain: Franchise 'low cost'

The economic crisis is changing the business model of franchising, which has also pointed to the low cost. Difficulties in accessing finance from banks have reduced investments in opening of this activity, which has led to the emergence of new models of affordable franchisee. Thus, according mundoFranquicia Consulting, begin to proliferate the 'corners', 'shelves' or sharing of facilities, with dwindling investments.

You can talk about franchises 'low cost', in need of franchising power to cut costs and offer affordable products to stakeholders, recognizing the general director of the consultancy, Mariano Alonso.
"Many flags are optimizing their resources and significantly reducing or even eliminating their rights of entry to encourage new entrants and boost its expansion," said Alonso in the report 'The franchise in figures 2009'.

Alonso stressed that even some plants start to franchise-owned stores as a way of disinvestment, while others choose to outsource services to save costs.

Another phenomenon detected because of the crisis is the growing interest of the unemployed population by this type of business, a trend that began to worsen from the second quarter last year. "Even some people unemployment concentrated in one payment to deal with an initial investment," Alonso stressed.
Industry figures

Franchising in Spain, composed of 823 banners, reached a turnover of 19.635 million euros in 2009 and employed 22,660 people last year, according to the report mundoFranquicia Consulting.

These figures account for 9% of national retail turnover and 12% of recruitment of retailers, while the total investment stood at 4696.2 million, with an average investment of 76,112 euros per opening.

"There are no comparable data in the previous year, but the turnover has been maintained or have suffered a slight decrease in relation to the environment, while the number of channels grew by 2.4% and stabilized the opening of new establishments (+1 , 2%) ", has detailed Alonso, who in 2010 forecast to increase turnover, employment and the number of openings this form of business collaboration.
Specifically, the sector of hotel and restaurant turnover was more than in 2009, 6246.7 million, followed by food (20 channels), with sales in excess of 2,170 million euros, and travel agencies (31 banners) with a turnover of 1,356 million euros.

The hotel and restaurant also stands as the sector that generated more jobs, with an occupancy of 69,533 people, followed by travel agents (17,239 employees), food (13,172) and clothing and fashion (12,133).

Regarding the structure of supply, there are around 62,000 business units in the Spanish market, of which 82%, about 50,500, corresponding to duty-free farms and over 11,000 units of its own. Of the total, over 56% of business units belonging to the service sector.

In addition, over 84% are national brands, while foreign supply operating in Spain, 69% are European education and 21% American.
Regarding the external balance, they find mundoFranquicia managers maintained the entry of Spanish firms in foreign markets, primarily Latin America and Eastern Europe because of its higher growth potential than the domestic market, while the other side of the currency has stopped the entry of European channels in Spain by the difficulty of access to finance, but remains the initiative of South America, using the Spanish market as a gateway to European markets.