WSJ BLOG/The Source: Live Blog: Greek Drama, ECB, G-20 Summit Greece backs away from bailout

referendum; Papandreou signals retreat as party rebels: reports WSJ BLOG/The Source: Live Blog: Greek Drama, ECB, G-20 Summit WSJ: Greece Sticks With Referendum Greek bailout referendum threatens debt deal Stock markets hit by Greek debt referendum

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WSJ BLOG/The Source: Live Blog: Greek Drama, ECB, G-20 Summit 3,130 mots 3 novembre 2011 22:45 Dow Jones News Service DJ Anglais (c) 2011 Dow Jones & Company, Inc. (This story has been posted on The Wall Street Journal Online's The Source blog at blogs.wsj.com/source.) Greek Prime Minister George Papandreou told his cabinet he would drop plans for a referendum if talks with a leading opposition party secured support to push through fiscal cuts required for financial aid. Meanwhile, the European Central Bank, which sets monetary policy for the 17 states using the euro, announced it would cut its main interest rate from 1.5% to 1.25% amid the deepening sovereign debt crisis. 6:25 pm EDT....Euro Crisis Is a Key Election Issue for Obama, by Sudeep Reddy and Carol E. Lee U.S. President Barack Obama prodded European leaders to resolve a debt crisis that he sees as the biggest threat to the U.S. economy and, in turn, his chances of winning a second term. Mr. Obama, on his first trip outside the U.S. since his re-election campaign kicked into full swing, faced the prospect Thursday that fresh political turmoil in Greece could trigger a euro-zone financial meltdown and a recession that could spread world-wide, damaging the weak U.S. economy. Mr. Obama said resolving Europe's debt crisis was "the most important aspect" of the summit. Left unsaid was the importance that challenge holds for his political future. U.S. voters rank the health of the economy as their top concern one year ahead of the 2012 presidential election, and they give Mr. Obama poor marks for his handling of the economy. If Greece descends into further political and financial chaos, and European leaders still haven't executed a broader plan for containing the damage, Mr. Obama could be faced with a spreading global financial crisis while he is on the campaign trail. 6:16 pm Heard on the Street: Europe Opens a Cannes of Worms, by Simon Nixon So much for democracy. Less than 72 hours after Greek Prime Minister George Papandreou stunned the world with his plan for a referendum on Greece's debt deal, it was off the agenda. All it took was a commitment from the main opposition party to back the bailout plan. Suddenly, a deal so important the people had to be consulted became so important the people can't possibly be consulted until it has been fully implemented. The U-turn was a relief to markets, removing the fear of imminent Greek bankruptcy; its official lenders had threatened to withhold payment of the next tranche of its bailout until after the referendum. Even so, this episode has profoundly changed the nature of the euro crisis, dramatically raising the stakes should the Oct. 27 deal fall short. For the first time, the euro zone has acknowledged that a country could quit the euro. Germany's Angela Merkel and France's Nicolas Sarkozy told Mr. Papandreou that the terms of Greece's debt deal were nonnegotiable, so any referendum would be a vote on whether to remain in the euro. The German and French leaders said Greece was free to make this choice. 4:34 pm China's President Rejects Yuan Appreciation Pressure, by Aaron Back Chinese President Hu Jintao called on global leaders to stop pushing for appreciation of emerging market currencies, in some of the strongest language yet from China on the issue of exchange rates. "To keep asking emerging markets to revalue their currencies and reduce exports will not lead to balanced growth. On the contrary, it would only plunge the global economy into a 'balanced recession,' and make sustainable growth impossible," Hu said in a speech at the Group of 20 industrial and developing nations in Cannes, France. Page 2 of 17 2011 Factiva, Inc. Tous droits rservs.

Separately, Chinese Commerce Minister Chen Deming told reporters on the sidelines of the summit that he believes the yuan has already appreciated to a reasonable level. Chen noted the yuan has risen around 30% against the U.S. dollar since 2005, and China's external surpluses are declining as a percent of its gross domestic product. The rejection of demands for appreciation by Chinese leaders stands in contrast to a draft G-20 resolution seen by Dow Jones Newswires, which calls for currency exchange rates to move "more rapidly" towards a market-based system. "We affirm our commitment to move more rapidly towards more market determined exchange rate systems and enhance exchange rate flexibility to reflect underlying fundamentals and refrain from competitive devaluation of currencies," the draft said. But Chinese leaders may draw a distinction between yuan appreciation and yuan flexibility, as they argue that market pressures may move the currency in both directions. Indeed, Chen said that selling pressure on the yuan that emerged in September shows the market perception of the currency is starting to change. In the G-20 draft, nations with large current account surpluses, including China, Germany and Japan pledged to boost private consumption. Chen said that China will focus on expanding imports from Europe as a way to aid the continent's economy. Maintaining strong economic growth must be the top priority for global leaders, Hu said in his speech Thursday, the text of which was distributed by the Chinese delegation at the G-20 summit. Hu added that maintaining China's domestic growth will be beneficial to the global economy. Hu also called for expanded use of the International Monetary Fund's special drawing rights, and for reform of the basket of currencies that make up the synthetic currency. 3:48 pm Obama Raised ECB Role With G-20, EU Leaders by Ian Talley Senior U.S. officials said Thursday that President Barack Obama raised with European leaders the role of the European Central Bank in the euro-zone's strategy to resolve the debt crisis. But the officials stressed that Obama's discussions among leaders from Europe and other Group of 20 nations about the ECB's role was only as part of a comprehensive plan. U.S Treasury Under Secretary for International Affairs Lael Brainard also said the top priority for G20 officials is encouraging growth. That will be reflected in a G20 "action plan" outlining measures country will take to spur a global economic recovery in a G20 statement due out Friday. Brainard also said the G20 is examining ways for the International community to support the euro zone's own efforts. 3:46 pm Sarkozy Claims New Allies on Transaction Tax by William Horobin French President Nicolas Sarkozy has claimed new allies in his campaign to pioneer a global financial transaction tax: Brazil and Argentina. That may not be enough to counter the stiff opposition from the U.S. and the U.K., but Sarkozy isn't deterred. "We will ... make a group of leader countries on the subject," Sarkozy said, along with determined ally Germany and his new South American backers, who are "not opposed to the principle" and "open to the subject." "I'm convinced it is technically possible, [...] financially necessary given the crisis and it is morally absolutely unavoidable," Sarkozy said. 3:27 pm OECD Says Greece Should Tackle Tax Evasion by William Horobin Greece could save a lot by signing up to an international tax convention agreement. Greece could help recover some of 30 billion euros in tax evasion if it signed up to a convention to tackle tax evasion more efficiently, the Organization for Economic Cooperation and Development said. The Group of 20 led the way for other countries to sign up to the convention, the OECD said. Page 3 of 17 2011 Factiva, Inc. Tous droits rservs.

"If I were the Greek government I would make it a priority to sign this agreement," said Jeffrey Owens, director of the OECD's Centre for Tax Policy and Administration. 3:16 pm Greece Will Need EUR80 Billion in February, by Alkman Granitsas, Stelios Bouras and Matina Stevis Greek finance minister Evangelos Venizelos told lawmakers Thursday that the country needs 80 billion euros to cover its financing demands by the time it is due to receive the seventh tranche of its first rescue package in February. "The seventh tranche must be disbursed by the end of February. This payment is not at 8 billion euros (as the sixth tranche is) but at 80 billion euros, because these will be the cash needs of the country," he said. He also warned that an early election would derail the cash-strapped country's new bailout agreement, reached on October 27th in Brussels after marathon negotiations with Greece's official lenders -the European Union, the European Central Bank and the International Monetary Fund - as well as representatives of the private financial sector. 3:10 pm Draft G-20 Action Plan: Surplus Countries Vow to Boost Domestic Consumption by Christopher Emsden Germany and other countries with a current account surplus pledged to global partners in the G-20 to boost domestic consumption as part of a coordinated effort to even out global imbalances, according to a draft version of the action plan members of the group are due to agree Friday. Germany will take action to promote private consumption and investment, not only in absolute terms but as a share of gross domestic product, while other countries with large current account surpluses, such as Japan and China and also Indonesia and South Korea, pledged to do the same, according to the draft, which was seen by Dow Jones Newswires. The global economy is in a "new and difficult phase" with signs of weakness in both advanced and developing economies, the draft said. Coordinated actions for all G-20 members include making sure that currency exchange rates move in accordance with market forces, the draft said. The U.S. pledged to take short-term measures to boost employment and to take credible action towards fiscal consolidation towards the middle of the decade, the draft said. Euro area governments pledged to bolster the stability of regional debt markets. 2:41 pm Euro Area Ready to Help Greece, but Country Must Stick to Deal by Alessandro Torello The euro area is ready to help Greece and it really wants the country to remain part of the single currency, but Greece has to stick to its reform commitments, European Union leaders said Thursday. [ 11-03-11 1845ET ] "The euro area stands ready to continue to support Greece, but Greece needs to stick to the agreed package of 26-27 October and in particular to continue with the implementation of the EU/IMF program," EU Commission President Jose Manuel Barroso and the president of the European Council, Herman Van Rompuy, said in a joint statement on the first day of meetings of the Group of 20. The EU and the International Monetary Fund have agreed on a broad package of aid to help Greece face its sovereign debt crisis, but the country's government has said it will hold a referendum on the deal, throwing markets in renewed uncertainty. The limbo was continuing Thursday as political negotiations continue in Athens, putting into question whether the referendum will actually be held. Also Thursday, Mr. Barroso said in an interview with French radio Europe 1 from Cannes that, according to the latest news, there will be no referendum, but that he is still very worried about the uncertainty. "We are all worried," he said. "Our friendly message to Greece is: get an agreement on the essentials, it's not the moment for division, it's the moment for unity." 2:37 pm Greek Opposition Leader, Deputies Walk Out of Confidence Vote Greek opposition leader, deputies walk out of parliamentary debate on govt confidence vote. 2:30 pm God on Hold by Matthew DaltonAdd a Comment Page 4 of 17 2011 Factiva, Inc. Tous droits rservs.

Milling among the crowds of suited journalists and government officials in the G-20 meeting hall here is a man dressed as a monk. He is in fact a monk: Pere Marie-Paques from the Abbaye de Lerins, on an island off the coast of the French Riviera not far from Cannes. He has two jobs here. The first is to sell the Abbaye's strong, syrupy liqueur, which comes in three flavors (lemon, mandarin and mint). But he also has a message for the men of the world gathered here to discuss (though perhaps not to decide) economic policies that impact billions of people. "The economy is the means to help people," Frere Marie-Paques says. "Have care for the most fragile, have care for peace, have care for justice." But he hasn't had the chance to deliver this message directly to G-20 leaders. Getting a meeting with these guys, even for a servant of God, is hard. 2:26 pmSoros: Euro Crisis Has the Potential to Destroy the Cohesion of the European Unionby Veronika Gulyas George Soros, the billionaire U.S. investor, Thursday said that the current euro crisis has the potential to destroy the cohesion of the European Union, mainly due to its political nature. "The euro crisis is primarily a banking crisis, secondarily, a government debt crisis. These are interconnecrted and mutually reinforce each other," Mr. Soros said, adding however, that there is a third face to the crisis, which is a political one. "Now there's a process of disintegration The euro crisis is a real threat to the political union," Mr. Soros said, giving a lecture at the Central European University in Budapest. Mr. Soros nevertheless stressed the importance of saving the euro, explaining the common currency has by now become impossible to be reversed into separate currencies again. "You can't unscramble the omelette," the Hungarian native noted, adding the euro is "here to stay," just like a "shotgun marriage." He criticised EU leaders that they failed to find a quick solution to the euro crisis because they kept doing too little too late. "They kept kicking the can down the road, but now we'we came to the end of the road," Mr. Soros said. The EU was missing a common treasury, he noted, which could have served as a last resort to fall back on in the time of a debbt crisis. He also added however, that the EFSF is is the embryo of a common treasury. Regarding Greece's debt reduction, Mr. Soros said a reorganization, or default must be orderly, no matter if it takes place voluntarily or involuntarily. He also stressed the importance of keeping Greek banks alive to protect depositors. "If not, then you could have a run on banks in other countries too, which is what I call a melt-down," Mr. Soros added. Europe now has to be re-kindled at a political level, and it needs stimulation but the disintegration trend must be stopped and the solution must be found at the european level, Mr. Soros concluded. Photo (MTI/Zsolt Szigetvary) 2:20 pmSarkozy Welcomes Signs of Political Consensus in Greeceby William HorobinAdd a Comment French President Nicolas Sarkozy Thursday said the Group of 20 industrial and developing nations welcomed signs that Greece might be moving toward a coalition government that would support the terms of the latest bailout package for the country agreed last week. Prime Minister George Papandreou earlier Thursday said that he was open to the idea of pairing up with the center-right opposition led by Antonis Samaras to guide the country through its crisis. Mr. Samaras has made comments on Greek television signalling he is open to working with Mr. Papandreou. Mr. Samaras' stance is "courageous and responsible" said the President of France, which currently holds the presidency of the G-20. Mr. Sarkozy said the G-20 is discussing the implementation of a debt-reduction package in Italy. Page 5 of 17 2011 Factiva, Inc. Tous droits rservs.

"The question is not the content of the package, but its implementation," he said. 2:17 pmThe UK's IMF Conundrum by Nicholas Winning t's hard times and Prime Minister David Cameron thinks the international community should consider boosting the firepower of the International Monetary Fund. But U.K. officials are at pains to stress that any increase in the U.K.'s commitment to the world's lender of last resort would be to boost global confidence and not tackle the euro-zone debt crisis. That may sound like splitting hairs, as it's the IMF that is bailing out Greece, Ireland, and Portugal, in partnership with the European Union and the European Central Bank. But that assertion is key for Cameron to keep the peace with euro-skeptics in his Conservative Party and wider British population. Any suggestion that the U.K. taxpayer will be paying any more money towards bailing out debt-stricken European countries would be like waving a red rag to a bull. "Let's be clear, when the world is in crisis, it's right that you consider boosting the IMF," Cameron said as he arrived for a two-day summit of the Group of 20 industrialized and developing countries. "No government ever lost money by lending money to the IMF, which supports countries right around the world. What we wouldn't support is the IMF investing directly in some euro bailout fund. That wouldn't be right and we won't back it. There is no risk to the British taxpayer of seeing the IMF play its proper role." U.K. officials also say the IMF has loan programs in more than 50 countries of which only three are in the euro area. They are also stressing that the IMF is a senior creditor - meaning it gets paid back before any other creditors. There's no timetable for discussions on whether to boost the IMF's firepower - but if the debate picks up steam, expect to hear the U.K. reiterate that any increase in their commitment to the fund is nothing to do with bailing out euro-zone countries. Photo (European Pressphoto Agency) 2:13 pmGreece Aside, Treasury Yield Expected to Move Higherby Cynthia LinAdd a Comment Acknowledging the U.S. Treasury market remains prone to sudden rallies when euro-zone issues arise, Nomura fixed-income analysts maintain their forecast for Treasury prices to slip and 10-year yields to rise to 2.75%. Even though the Fed reduced its growth forecasts, projections are still positive and inflation is still high, Nomura said, which is "at odds with where yields are." US economic reports have also been better, likely including Friday's key non-farm payrolls report, which the firm sees coming close to or even beating expectations. Benchmark 10-year notes last down 16/32 in price to yield 2.063%. -For previous items on this blog, see http://blogs.wsj.com/source/2011/11/03/live-blog-g-20-meeting-gets-under-way. For continuously updated news on all subjects from The Wall Street Journal, see WSJ.com at http://wsj.com. [ 11-03-11 1845ET ] Document DJ00000020111103e7b3001cg

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News & Commentary Greece backs away from bailout referendum; Papandreou signals retreat as party rebels: reports Polya Lesova, MarketWatch MarketWatch; plesova@marketwatch.com; Polya Lesova is chief of MarketWatchs London bureau. 477 mots 3 novembre 2011 22:27 MarketWatch MRKWC CTGSMFS Anglais Copyright 2011 MarketWatch, Inc. All Rights Reserved. LONDON (MarketWatch) Greek leader George Papandreou on Thursday withdrew plans to put the nations latest bailout plan to a popular vote, pulling back in the face of a rebellion by members of his Socialist ruling party. Papandreou told government ministers in a cabinet meeting that he would reach out to the head of the opposition, center-right New Democracy party to plan steps toward a broader consensus, The Wall Street Journal reported. If an agreement can be formed, there would be no need for a referendum, Papandreou said, according to the report. Other reports said Papandreou had abandoned the plan after the opposition conservative party said it would back the European Unions bailout plan. The premiers bombshell announcement on Monday that there will be a referendum on the aid-forausterity package has sent global financial markets into turmoil, stunned Greeces euro-zone partners and raised fears of a default by Athens. Greeces position within the euro area is a historic conquest of the country that cannot be put in doubt ... [and this] cannot depend on a referendum, said Evangelos Venizelos, Greek finance minister and deputy prime minister, in an early-morning statement issued following his return to Athens from Cannes, France. What is important is for the sixth tranche to be disbursed, without any distractions or delay, he said. Venizelos and Papandreou both travelled to Cannes to meet on Wednesday evening with euro-zone leaders, including Germanys Angela Merkel and Frances Nicolas Sarkozy. Speaking to reporters after the meetings, Merkel and Sarkozy said that Greece has to decide whether it wants to remain in the euro zone and that no more bailout money will be disbursed until there was clarity on this question. Papandreou said that the referendum will effectively be linked to whether Greece should remain in the euro zone. Its not the moment to give you the exact wording, but the essence is that this is not a question only of a program, he said late Wednesday in Cannes. This is a question of whether we want to remain in the euro zone. Thats very clear. That should be clear to everyone. Analysts at Danske Bank noted that Papandreou is rapidly losing support, which may open the door for a unity government. A unity government passing the austerity package as well as general elections seem plausible outcomes, they said. Both scenarios imply that no referendum will take place. The political troubles of Greek Prime Minister George Papandreou mount on Thursday after his finance minister publicly opposes a plan to tie a referendum to the nations membership in the euro zone.|103 Document MRKWC00020111103e7b3000ul

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WSJ BLOG/The Source: Live Blog: Greek Drama, ECB, G-20 Summit 3,498 mots 3 novembre 2011 18:05 Dow Jones News Service DJ Anglais (c) 2011 Dow Jones & Company, Inc. (This story has been posted on The Wall Street Journal Online's The Source blog at blogs.wsj.com/source.) Greek Prime Minister George Papandreou told his cabinet he would drop plans for a referendum if talks with a leading opposition party secured support to push through fiscal cuts required for financial aid. Meanwhile, the European Central Bank, which sets monetary policy for the 17 states using the euro, announced it would cut its main interest rate from 1.5% to 1.25% amid the deepening sovereign debt crisis. 2:00 pm EDT...Obama, Merkel Discuss ECB Role In Euro-Zone Debt Crisis Solution, by William Boston U.S. President Barack Obama discussed what role the European Central Bank could play in resolving the euro zone crisis during a meeting Thursday with German Chancellor Angela Merkel, according to a person familiar with the matter. According to a person familiar with the substance of the one-hour meeting on the sidelines of a meeting of global leaders from the Group of 20, Obama impressed upon Merkel that it was of vital interest to Americans that Europe resolve the crisis. "I am completely invested in your success," President Obama told Ms. Merkel at one point in the discussion, according to the person. President Obama was particularly interested in building strong, efficient firewalls to stop contagion spreading. The U.S., joined by the International Monetary Fund, has pressed throughout the year for a stronger role by the ECB to fight the euro-zone crisis. The Obama administration has pointed to the extraordinary steps the Federal Reserve took during the 2008-09 financial turmoil as evidence of the potential success from an expanded ECB role in the euro zone. But there is no consensus in Europe for a U.S. Federal Reserve-like role for the ECB, with the euro zone's most powerful member, Germany, particularly opposed. 1:49 pm Backing for Rate Cut by Sabrina Cohen Intesa Sanpaolo SpA CEO Corrado Passera welcomed the European Central Bank's decision to cut rates, saying "it was a positive sign" for growth. Speaking on the sidelines of a presentation in Milan, Mr. Passera said the cut "will benefit growth." Earlier Thursday, the ECB cut its benchmark interest rate by 25 basis points to 1.25%. Mr. Passera also welcomed news about the cancellation of the Greek referendum on whether the debthit country should stay in the euro, saying the European Union can't wait months for a decision to be made. "Every country in the EU has to take responsibility for itself," Mr. Passera said. In a surprise move Thursday afternoon, Greek Prime Minister George Papandreou told his cabinet he would drop plans for the referendum if new talks with a leading opposition party secured support to push through harsh fiscal cuts required for further financial aid. 1:34 pm EDT...UK: Debate On Increasing Resources to IMF by Nicholas Winning A debate has begun on increasing resources to the International Monetary Fund, but it is too early to talk about numbers, U.K. Chancellor of the Exchequer George Osborne said Thursday at a summit of leaders from the Group of 20 industrial and developing nations. Page 8 of 17 2011 Factiva, Inc. Tous droits rservs.

In a briefing to reporters following the opening sessions of the summit, Mr. Osborne said there was a real sense of urgency among G-20 leaders about the economic situation and the need for specific actions to come out of their discussions. The Chancellor of the Exchequer said that although the idea of boosting the IMF had been discussed at the fund's annual meeting in early October, officials were now getting down to the "nitty gritty of numbers". "I have not heard anyone object to the suggestion that we should increase the resources of the IMF. The individual contributions to that increase have yet to be discussed so I can't give you a number, but certainly from what I've heard of the Chinese... they too are interested in providing support to the IMF," Mr. Osborne said. 1:28 pm Obama, Merkel Discuss ECB Role in Euro Zone Debt Crisis Solution President Obama and Chancellor Merkel discussed the role of the ECB in fighting the Europe crisis during a bilateral meeting at the G-20 in Cannes. While the U.S. has long pushed for a stronger ECB role, the president made no demand for specific action. 1:00 pm EDT Greece Will Inform European Partners It Plans to Drop Referendum Greek Prime Minister George Papandreou, fighting to stem his country's escalating political crisis, told his cabinet that he will drop plans for a euro referendum if new talks with a leading opposition party secured support to push through harsh fiscal cuts required for further financial aid. Greek Finance Minister Evangelos Venizelos said his country will inform its European partners it plans to drop the referendum. 12:56 pm Hitching to a Northern Star by Paul Vieira Foreign policy experts from Canada held their own briefing for reporters at developments at the Cannes summit -- and when they weren't talking Greece, they spent some of their time lauding the credentials Canada's central banker, Mark Carney, would bring to the role as a new Financial Stability Board chairman in the event he's selected. A new chairman to succeed Mario Draghi is set to be named Friday, when the official G-20 communique is released. But the academics, from the University of Toronto, spoke as if the job already belongs to the Bank of Canada governor. "Mark is a man who has great experience in the private and public sector. He has a justified reputation as a man of principle, a man who understands that roles are important. And I think he will do a great job in his new role," said Donald Brean, a professor of finance and business economics from the University of Toronto. His colleague, Alan Alexandroff, described Carney as a "straight shooter," citing a September speech in Washington in which he said a slowing economy was no reason to delay financial services overhaul. Mr. Carney is one of two contenders for the post, with the other being his Swiss counterpart, Philipp Hildebrand. There is speculation Carney -- a former Goldman Sachs investment banker -- is the leading contender. Canadian government officials Friday said he would be an "excellent" candidate, without elaborating. 12:51 pm Calls for Permanent ECB Bond Buys by William Launder Several euro-zone governments, the U.S. and the European Commission have called on the European Central Bank to assume a more aggressive role in fighting the sovereign debt and banking crisis through a permanent program to buy sovereign bonds, German newspaper Die Welt reports Thursday, citing sources familiar with the matter. The ECB operates as an independent institution within the European Union, and couldn't legally be forced by governments to change its policy without a change to the EU Treaty. But renewed pressure on the ECB to step up its crisis-fighting response, and assume a role more similar to the U.S. Federal Reserve, would underline the growing desperation politicians face in containing the crisis. Italy, France, the U.S. and the European Commission all support the suggestion, proposed at the G-20 summit of industrial countries in Cannes, France, to make the ECB's bond purchase program permanent, according to the report. Germany opposes the proposal, the paper writes. ECB President Mario Draghi, just days into his new role as head of the central bank, said Thursday that the ECB's bond buys are temporary. He stopped short of committing to continue the bond buy program after the euro zone's bailout fund becomes fully operation. Page 9 of 17 2011 Factiva, Inc. Tous droits rservs.

A spokesman for the ECB declined to comment on the report. 12:22 pm EDT Italy Will Pledge to Start Cutting Debt Ratio by Christopher Emsden Italy will pledge to members of the Group of 20 industrial and developing nations to start cutting its public debt ratio as of 2012, according to a draft document seen by Dow Jones Newswires. Italy pledged to make sure its government debt as a share of gross domestic product would start "rapidly declining" as of next year, according to the document, part of the "action plan" each G-20 member submits to partners. Italy also reiterated its pledge to balance its budget by 2013 and introduce a constitutional rule making that obligatory from then on. The debt pledge reflects European Union pressure to require obligatory annual reductions of public debt ratios when these are above 60% of GDP. Italy has long argued for more flexibility on the grounds that, thanks to low household debt levels, its whole-economy debt ratios are among the lowest of any advanced economy. The pledge means Italy's government debt, now amounting to almost 120% of GDP, will have to be reduced alongside fiscal policies of the current year. 12:19 pm EDT A View From the BRICS by Aaron Back The solution to the European debt crisis mainly lies with Europe itself, but China is confident that the region will overcome the challenges it faces, President Hu Jintao said Thursday, the state controlled Xinhua News Agency reported. Hu made the comments in a meeting with the leaders of Brazil, Russia and India, who along with China are part of the "BRICs" nations. The leaders of the four countries were meeting alongside a summit of the Group of 20 industrial and developing nations in Cannes, France. Mr. Hu suggested that the BRICs nations should establish a consultation mechanism to jointly monitor the debt crisis, Xinhua reported. Mr. Hu also described the current world economic situation as "severe," according to the report. 12:07 pm It Ain't Over Till It's Over by Todd Buell [ 11-03-11 1405ET ] We don't know if Mario Draghi is a big fan of team sports, but based on his time in the U.S., where he studied at the famed Massachusetts Institute of Technology, he might know some American sports phrases. One is "that's why you play the game," meaning no matter how unlikely an outcome seems on paper, you never know what will happen until the teams take the field. The same is sometimes true in finance: Even when most say the ECB won't cut rates, the central bank sometimes does and catches us by surprise. Ergo, "That's why you play the game." 12:05 pm Don't Be Stupid by Erin McCarthy Emerging market central banks and policy makers "are not that stupid" to agree to give the euro zone money, says Jerome Booth of Ashmore Investment Management. The euro zone hopes to persuade China and other large developing economies to back European plans to boost its bailout fund by contributing to a special purpose vehicle. "If the emerging countries really want to help Europe ... they can give them some policy advice," he said, adding that the euro zone needs discipline more than anything else. 12:02 pm U.K. Minister Causes a Stir by Alistair MacDonald A British Treasury minister has caused a stir by seeming to suggest that the euro is breaking up. Mark Hoban told Parliament: "I don't think there is any intention for us to join the euro at a time when it is breaking up." Treasury officials have been quick to say that Mr. Hoban was reacting to a question that asked, would the U.K. join the euro if it were breaking up. The resulting furor, however, underscores how high tensions are running in non-euro Europe, as well as the euro zone. Even in a euro sceptic country like Britain, which typically stays aloof from any euro fray, the crisis is getting wall to wall coverage. Never have so many Britons known the name of a Greek Prime Minister. Mr. Hoban, the financial secretary to the treasury, acknowledged that the U.K. is currently involved in contingency planning should the euro break up. But Treasury officials say that they don't see that as being the likely scenario. 11:52 am Berlusconi: Italy's Economic Fundamentals Are Solid by Stefania Spezzati and Liam Moloney Page 10 of 17 2011 Factiva, Inc. Tous droits rservs.

Italian premier Silvio Berlusconi said the fundamentals of the country's economy are solid, while acknowledging the country's problem is its debt pile. Berlusconi told his peers at a meeting of the Group of 20 industrial and developing economies in the French town of Cannes that Italy has always honored its debt repayments, as well as its European Union and international pledges. 11:26 a.m. Meet Lucas Papademos, by Eduardo Kaplan Lucas Papademos, the man some expect to lead a unity government in Greece if Mr. Papandreou resigns as Prime Minister, is currently a Visiting Professor of Public Policy at Harvard University Kennedy School of Government. Mr. Papademos has ample experience dealing with policy and markets as a former Vice-President of the European Central Bank from 2002 to 2010, and as Governor of the Bank of Greece from 1994 to 2002. Mr. Papademos could not be reached for comment. In an interview with the Wall Street Journal in May, Mr. Papademos discussed some of the steps Greece needed to take to address its mounting crisis. Six months later, as Greece's woes have become the biggest test of the euro zone, Mr. Papademos will find even tougher challenges if he were to take the job. 11:05 a.m. U.S. Won't Join EU on Financial Transactions Tax, by Sudeep Reddy The leaders of Germany and France raised the idea of a financial transactions tax in their meetings with President Barack Obama Thursday at the G-20 summit. And both got the same disappointing answer. European Union leaders are using the G-20 forum to push for a tax on trades of stocks, bonds and derivatives to raise money for taxpayers who have bailed out their financial systems. The U.S. is against the proposal, and even some European nations -- such as the U.K. and Sweden -- say it won't wor k unless it's adopted globally because activity would move to regions that don't assess the tax. "The president made clear that he shares the objectives that Chancellor Merkel and President Sarkozy have in ensuring that the financial sector contributes an appropriate share to the resolution of crises," Mike Froman, the White House's deputy national security adviser for international economic affairs, told reporters Thursday. The Obama administration has backed a different kind of tax, a financial crisis responsibility fee, on the largest financial institutions. 10:47 a.m. Investors Still Supporting EFSF as Bond Insurer, by William Horobin Boosting the euro zone's bailout facility by using it to insure bonds still has the full support of investors, Diekmann, chief executive of German insurer Allianz SE, said Thursday. Allianz championed the idea of using the European Financial Stability Facility to finance guarantees covering the initial losses that buyers of euro-zone sovereign bonds would suffer in the event of default. The idea was adopted at the summit of euro-zone leaders last week as a way of boosting the firepower of the EFSF without requiring more funds or guarantees from governments. But government debt investors are waiting for the details before making a move. "It's totally supported but the bond investors need to have the technical implementation data," Mr. Diekmann said on the sidelines of the B20 business leaders' conference in Cannes ahead of a summit of the Group of 20 industrial and developing nations. After a positive initial reception, the deal forged in Brussels has met with skepticism regarding the details, and Greek Prime Minister George Papandreou's call for a referendum on its latest bailout and whether the country will stay in the euro has further fuelled concerns and market volatility. "[Bond investors] need to understand the pricing mechanism and know if these bonds are going to be part of indexes or not. As long as they don't have these answers it will be very difficult for them to say 'we'll take that up,'" Mr. Diekmann said. 10:35 a.m. ECB: Final Thoughts, by Brian Blackstone Mario Draghi ends with a shout-out to the home audience. "I have a great admiration for the tradition of the (German central bank) Bundesbank." Page 11 of 17 2011 Factiva, Inc. Tous droits rservs.

Bottom line from presser. * ECB willing to cut rates even with inflation high. * Draghi rejects ECB role as lender of last resort to governments. * But sidesteps questions whether ECB will stop buying bonds once EFSF able to do so. 10:32 a.m. ECB: Dollar Moves Higher Across the Board, by Dow Jones Newswires The ECB's surprise rate cut initially sparked a risk-rally, but as focus shifts to looming pitfalls (such as Greek referendum and possible euro-zone exit), the dollar is getting a broad lift. Analysts say ECB President Mario Draghi's downbeat assessment of the euro-zone economy is drawing attention to the erosion of the euro's interest rate differential and that risks to the global economy remain tilted to the downside. For the moment, QE3 is less of a concern for shelter-seeking traders flocking to the dollar. EUR/USD falls below 1.37, down 0.40%. 10:25 a.m. ECB: Difference in Opinion? by Katie Martin Spot the difference. Angela Merkel: "If the euro fails, Europe fails We will do whatever it takes to protect this currency." Mario Draghi: "Euro breakup? It's not in the treaty." We're paraphrasing, but you get the idea. In his first press conference at the helm of the ECB, Mr. Draghi denies a "legalistic" stance to the structure of the common currency. But his response to the totally inevitable "will the euro break up?" question has hardly been rousing. The euro's under serious pressure in the wake of the ECB's surprise rate cut, and Mr. Draghi's generally gloomy tone on the outlook is not helping one bit. 10:23 a.m. ECB: Dragi Says Balance Sheet Not at Risk, by Brian Blackstone Mario Draghi says ECB's balance sheet is not at risk despite holdings of Greek bonds. Refers to "strange schizoid attitude" in which some observers say balance sheet at risk, while others say ECB should expand it to help everybody. 10:21 a.m. ECB: Super Mario Makes a 'Splash,' by Eva Szalay The euro fell sharply against the dollar and yen Thursday after the European Central Bank unexpectedly cut its key lending rate by 0.25 percentage point to 1.25%, and the currency extended its losses after ECB Governor Mario Draghi started his maiden press conference and said there was a risk of a mild recession in the euro zone. The European currency sank towards the day's low, extending losses made after the rate cut, and traded as low as $1.3675 against the dollar from $1.3807 before the decision was taken. The currency was at $1.3753 before the press conference. The rate cut confounded the consensus market expectation that the ECB wouldn't cut until December, although a few bank analysts had expected Mr. Draghi to ease monetary conditions. "Mr Draghi is making a splash in his first meeting," said Carl Forcheski, a currency strategist at Societe Generale in New York. Mr. Forcheski noted that the move is a clear departure from the more hawkish stance of the central bank's previous head, Jean-Claude Trichet. The single currency rallied earlier in the day during London trading hours as the Greek political situation showed signs of unravelling, raising hopes that a dreaded referendum vote on the country's bailout package might be abandoned. A ruling socialist party official said Greek Prime Minister George Papandreou would resign as early as today, helping the euro to stem its losses after the ECB rate cut and as a press conference with Mr. Page 12 of 17 2011 Factiva, Inc. Tous droits rservs.

Draghi got underway. "The ECB rate cut should be euro-bearish but given the turmoil of the political situation it is probably not the factor to dominate the euro's value against the dollar," said Steven Saywell, head of currency strategy at BNP Paribas in London. [ 11-03-11 1405ET ] Meanwhile, the dollar fell against the yen after the ECB decision and hit the day's low, after the Japanese currency gained sharply against the euro. But the greenback recovered its losses during Mr. Draghi's speech to trade at Y78.02. The euro traded as low as Y107.00 from Y107.64. At 1403 GMT the euro was at 1.3666 and at Y106.67, while the dollar was at Y78.03. -For previous items on this blog, see http://blogs.wsj.com/source/2011/11/03/live-blog-g-20-meeting-gets-under-way. For continuously updated news on all subjects from The Wall Street Journal, see WSJ.com at http://wsj.com. [ 11-03-11 1405ET ] Document DJ00000020111103e7b3000qq

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WSJ: Greece Sticks With Referendum By Costas Paris, Marcus Walker and Alkman Granitsas Of THE WALL STREET JOURNAL 960 mots 2 novembre 2011 18:15 Dow Jones News Service DJ Anglais (c) 2011 Dow Jones & Company, Inc. Greek Prime Minister George Papandreou was facing a grilling over his high-stakes call for a national r e f e r e n d u on the country's bailout package in critical talks with European partners Wednesday. (This story and related background material will be available on The Wall Street Journal website, WSJ.com.) The renewed uncertainty over Greece's adherence to its bailout plan after Greece's cabinet overnight approved plans for the referendum is expected to dominate the summit of the Group of 20 industrial and developing nations in Cannes Thursday and Friday. Papandreou, who faces a confidence vote in Greece's Parliament Friday, was meeting in Cannes with French President Nicolas Sarkozy, German Chancellor Angela Merkel and other European Union leaders as well as International Monetary Fund chief Christine Lagarde. The leaders, who were caught unawares by the referendum call, will press Papandreou to either drop the referendum--which effectively amounts to a vote on whether Greeks want to endure the further financial sacrifices necessary to remain in the 17-country euro zone--or hold it as soon as possible. "The latest it can be done is Dec. 11. ... Without that decision, we can't agree on the next tranche of the program," an IMF official said. The IMF board was supposed to vote on the next tranche of its joint bailout program with Europe in midto-late November, but now will most likely wait until after the referendum, the official said. Another IMF official noted, however, the IMF has had to deal with political risk in other programs. In the middle of negotiations with Ireland, for example, a government was ousted and replaced by the opposition. The IMF successfully negotiated a new agreement. News of the referendum early Tuesday sent shock waves across European governments and markets, sparking warnings it could push Greece into a disorderly default on its debts and destabilize the entire euro zone. Greece needs the cash to pay off upcoming debts. It is unclear when, exactly, Athens will run out of money, with officials predicting any time in the next month, depending on the success of collecting new tax revenues. Without the E.U. and IMF loan, Athens will likely be forced to default on its debt, fueling the spread of the debt crisis into other euro-zone countries. Many Greek lawmakers rebelled against Papandreou's bombshell, seen as an attempt by the prime minister to shore up support for his drastic austerity policies, but one that also risked wrecking Europe's plan for taming the debt crisis in the euro zone. European leaders fear the shock waves from a Greek default could bring down other euro-zone governments and swaths of the Continent's banking system. The U.S. government worries such a financial crash in a key part of the world economy could hurt global growth. The turmoil in Greece caused consternation in other European capitals on Tuesday. Merkel and Sarkozy conferred in an emergency telephone call, after which they said they would press ahead with the accord struck between European leaders last week. The agreement would put Greece back on the path to growth, they said. Anthony Livanios, an independent political analyst, said he would be surprised if Papandreou didn't pass Friday's confidence vote, because no member of Parliament wants the responsibility of toppling the government at such a crucial time for the country. "We may have another loss of a deputy in the process but I see Papandreou as hanging on," he said. But many in Greece doubt Papandreou will survive as prime minister for long. Even if he continues as Page 14 of 17 2011 Factiva, Inc. Tous droits rservs.

premier, he risks becoming a lame duck following a rebellion among his Socialists against his referendum proposal. Most analysts now expect Greece to hold early elections at some point in coming months. The likely outcome, opinion polls suggest, would be a center-right government led by Antonis Samaras, head of the conservative New Democracy party. That would pose a new headache for Europe: Samaras has consistently denounced the austerity conditions that are tied to international aid for Greece, arguing they are destroying the Greek economy. Instead, he wants tax cuts, which other European leaders have told him they aren't prepared to finance. On Tuesday, Samaras came out against the idea of a referendum and called for elections instead. Tuesday was a day of high drama in Athens, where four Socialist party deputies voiced their opposition to the referendum, and one lawmaker quit the party outright, raising fears that Papandreou may soon be ousted. "If Greeks vote no in the referendum, if they say no to the austerity measures in return for bailout loans, then the country's exit from the euro is almost certain," a Socialist party official said. Junior cabinet minister Milena Apostolaki said she was leaving the socialist camp because she flatly disagreed with the referendum. Her defection left the party with a razor-thin majority of two seats in Greece's 300-seat Parliament. Apart from the four deputies who voiced their opposition, six other senior Socialist party officials called for Papandreou's replacement. But senior government officials played down the dissent. "There was a unanimous decision to support the referendum," a senior government official said. "There is no chance that it won't happen. What people say today is different from how they will vote later." A second official said that the referendum would likely take place before Christmas--slightly earlier than previously expected--and after a special ministerial committee had worked out the details and wording of the referendum. --Ian Talley, Tom Lauricella, Gabriel Parussini and Stelios Bouras contributed to this article. [ 11-02-11 1415ET ] Document DJ00000020111102e7b2000md

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Banking System Stability Greek bailout referendum threatens debt deal Staff 133 mots 1 novembre 2011 Washington Business Journal Online WASBJO Anglais 2011 American City Business Journals, Inc. All rights reserved. Greek Prime Minister George Papandreou has announced that the nation's latest bailout crafted by European leaders will be put to a public referendum, The Wall Street Journal reported. The move is meant to secure a majority endorsement of the austerity measures required by the plan and thus defuse the massive street protests and strikes that threaten to paralyze Greece. The danger is that a "no" vote could bring down the government and cut off international funding for Greece, leaving the country facing a financial meltdown. The government expects to hold the referendum in January. Did you find this article useful? Why not subscribe to Washington Business Journal for more articles and leads? Visit bizjournals.com/subscribe or call 1-866-853-3661. Document WASBJO0020111101e7b100008

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Stock markets hit by Greek debt referendum Staff 152 mots 1 novembre 2011 Dayton Business Journal Online DAYBJO Anglais 2011 American City Business Journals, Inc. All rights reserved. Greek Prime Minister George Papandreou has announced that the nation's latest bailout crafted by European leaders will be put to a public referendum, The Wall Street Journal reported. That has sent futures on Wall Street significantly lower as the stock markets are set to open with big losses Tuesday. The move is meant to secure a majority endorsement of the austerity measures required by the plan and thus defuse the massive street protests and strikes that threaten to paralyze Greece. The danger is that a "no" vote could bring down the government and cut off international funding for Greece, leaving the country facing a financial meltdown. The government expects to hold the referendum in January. Did you find this article useful? Why not subscribe to Dayton Business Journal for more articles and leads? Visit bizjournals.com/subscribe or call 1-866-853-3661. Document DAYBJO0020111101e7b100002

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