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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President Barack Obama prodded European leaders to resolve a debt crisis that he sees as the biggest threat to the G-20 Summit 3. E C B . Suddenly. economy and. on his first trip outside the U.wsj. Less than 72 hours after Greek Prime Minister George Papandreou stunned the world with his plan for a referendum on Greece's debt deal. its official lenders had threatened to withhold payment of the next tranche of its bailout until after the referendum. economy.S. since his re-election campaign kicked into full swing. Mr. in turn. announced it would cut its main interest rate from 1. his chances of winning a second term.. this episode has profoundly changed the nature of the euro crisis.25% amid the deepening sovereign debt crisis. removing the fear of imminent Greek bankruptcy. Even so." Hu said in a speech at the Group of 20 industrial and developing nations in Cannes..Euro Crisis Is a Key Election Issue for Obama. 4:34 pm China's President Rejects Yuan Appreciation Pressure. 6:16 pm Heard on the Street: Europe Opens a Cannes of Worms. The U-turn was a relief to markets. Tous droits réservés.S.S. U. (This story has been posted on The Wall Street Journal Online's The Source blog at blogs.S. Papandreou that the terms of Greece's debt deal were nonnegotiable. 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. For the first time.W S J B L O G / T h e S o u r c e : L i v e B l o g : G r e e k D r a m a . 27 deal fall short. Meanwhile. 6:25 pm EDT. Obama could be faced with a spreading global financial crisis while he is on the campaign trail. it was off the agenda. Mr. in some of the strongest language yet from China on the issue of exchange rates. Obama said resolving Europe's debt crisis was "the most important aspect" of the summit. by Aaron Back Chinese President Hu Jintao called on global leaders to stop pushing for appreciation of emerging market currencies. Inc. by Sudeep Reddy and Carol E. The German and French leaders said Greece was free to make this choice. and they give Mr. Germany's Angela Merkel and France's Nicolas Sarkozy told Mr.S. by Simon Nixon So much for democracy. All it took was a commitment from the main opposition party to back the bailout plan.' and make sustainable growth impossible. "To keep asking emerging markets to revalue their currencies and reduce exports will not lead to balanced growth. Page 2 of 17 © 2011 Factiva. On the contrary. so any referendum would be a vote on whether to remain in the euro. Obama poor marks for his handling of the economy.130 mots 3 novembre 2011 22:45 Dow Jones News Service DJ Anglais (c) 2011 Dow Jones & Company. it would only plunge the global economy into a 'balanced recession. voters rank the health of the economy as their top concern one year ahead of the 2012 presidential election. If Greece descends into further political and financial chaos.) 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. dramatically raising the stakes should the Oct. ECB. Left unsaid was the importance that challenge holds for his political future. France.5% to 1. Obama. damaging the weak U. Lee U. 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. which sets monetary policy for the 17 states using the euro. and European leaders still haven't executed a broader plan for containing the damage. . Mr. G - 2 0 S u m m i t WSJ BLOG/The Source: Live Blog: Greek Drama. Inc. the euro zone has acknowledged that a country could quit the euro. the European Central Bank..

the OECD said. Hu said in his speech Thursday. the Organization for Economic Cooperation and Development said. and for reform of the basket of currencies that make up the synthetic currency. 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. Chen said that China will focus on expanding imports from Europe as a way to aid the continent's economy. which calls for currency exchange rates to move "more rapidly" towards a market-based system. That may not be enough to counter the stiff opposition from the U.. as they argue that market pressures may move the currency in both directions.K. Hu also called for expanded use of the International Monetary Fund's special drawing rights. Page 3 of 17 © 2011 Factiva. along with determined ally Germany and his new South American backers. the text of which was distributed by the Chinese delegation at the G-20 summit.S Treasury Under Secretary for International Affairs Lael Brainard also said the top priority for G20 officials is encouraging growth.. Chen said that selling pressure on the yuan that emerged in September shows the market perception of the currency is starting to change." Sarkozy said.Separately. 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. But Chinese leaders may draw a distinction between yuan appreciation and yuan flexibility." the draft said. Germany and Japan pledged to boost private consumption. The Group of 20 led the way for other countries to sign up to the convention. EU Leaders by Ian Talley Senior U. Brainard also said the G20 is examining ways for the International community to support the euro zone's own efforts." Sarkozy said. and the U. 3:48 pm Obama Raised ECB Role With G-20.S. including China. Inc. 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. Hu added that maintaining China's domestic growth will be beneficial to the global economy. 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. Chen noted the yuan has risen around 30% against the U. "We will . and China's external surpluses are declining as a percent of its gross domestic product.. who are "not opposed to the principle" and "open to the subject. Indeed. The rejection of demands for appreciation by Chinese leaders stands in contrast to a draft G-20 resolution seen by Dow Jones Newswires. dollar since 2005. 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. 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. Tous droits réservés. "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. but Sarkozy isn't deterred. ." "I'm convinced it is technically possible. Maintaining strong economic growth must be the top priority for global leaders. nations with large current account surpluses. In the G-20 draft. make a group of leader countries on the subject.] financially necessary given the crisis and it is morally absolutely unavoidable... 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. U. [.S.S.

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

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

They are also stressing that the IMF is a senior creditor .K. But that assertion is key for Cameron to keep the peace with euro-skeptics in his Conservative Party and wider British population. . Inc. Tous droits réservés. Even though the Fed reduced its growth forecasts.S. Photo (European Pressphoto Agency) 2:13 pmGreece Aside.063%.75%. expect to hear the U. -For previous items on this blog. which the firm sees coming close to or even beating expectations. but its implementation." he said. "Let's be clear.but if the debate picks up steam. it's right that you consider boosting the IMF. For continuously updated news on all subjects from The Wall Street Journal. [ 11-03-11 1845ET ] Document DJ00000020111103e7b3001cg Page 6 of 17 © 2011 Any suggestion that the U. reiterate that any increase in their commitment to the fund is nothing to do with bailing out euro-zone at http://wsj. which supports countries right around the world. in partnership with the European Union and the European Central Bank." U. What we wouldn't support is the IMF investing directly in some euro bailout fund.K. Nomura fixed-income analysts maintain their forecast for Treasury prices to slip and 10-year yields to rise to 2. officials also say the IMF has loan programs in more than 50 countries of which only three are in the euro area. taxpayer will be paying any more money towards bailing out debt-stricken European countries would be like waving a red rag to a bull. and Portugal. But U. Benchmark 10-year notes last down 16/32 in price to yield 2." Cameron said as he arrived for a two-day summit of the Group of 20 industrialized and developing countries. see WSJ. Nomura said.wsj. see http://blogs. That wouldn't be right and we won't back it. likely including Friday's key non-farm payrolls report.K. 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." US economic reports have also been better. "No government ever lost money by lending money to the IMF. There's no timetable for discussions on whether to boost the IMF's firepower . That may sound like splitting hairs. officials are at pains to stress that any increase in the U.K. when the world is in crisis. as it's the IMF that is bailing out Greece.meaning it gets paid back before any other creditors.'s commitment to the world's lender of last resort would be to boost global confidence and not tackle the euro-zone debt crisis. projections are still positive and inflation is still high."The question is not the content of the package.K. which is "at odds with where yields are. Treasury market remains prone to sudden rallies when euro-zone issues arise. There is no risk to the British taxpayer of seeing the IMF play its proper role. Ireland. Treasury Yield Expected to Move Higherby Cynthia LinAdd a Comment Acknowledging the U.

MarketWatch MarketWatch.” he said late Wednesday in Cannes. That should be clear to everyone. Polya Lesova is chief of MarketWatch’s London bureau.” 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 nation’s membership in the euro zone. Greek finance minister and deputy prime minister. Papandreou said that the referendum will effectively be linked to whether Greece should remain in the euro zone.G r e e c e b a c k s a w a y f r o m b a i l o u t r e f e r e n d u m . but the essence is that this is not a question only of a program. center-right New Democracy party to plan steps toward a broader consensus. Inc.. plesova@marketwatch. “This is a question of whether we want to remain in the euro zone. 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” Analysts at Danske Bank noted that Papandreou is rapidly losing support. Papandreou said. If an agreement can be formed. ”Both scenarios imply that no referendum will take place.” they said. according to the report. in an early-morning statement issued following his return to Athens from Cannes. All Rights Reserved. which may open the door for a unity government.“ said Evangelos Venizelos. Tous droits réservés.|103 Document MRKWC00020111103e7b3000ul Page 7 of 17 © 2011 Factiva. Other reports said Papandreou had abandoned the plan after the opposition conservative party said it would back the European Union’s bailout plan. including Germany’s Angela Merkel and France’s Nicolas Sarkozy. “A unity government passing the austerity package as well as general elections seem plausible outcomes.. Papandreou signals retreat as party rebels: reports Polya Lesova. LONDON (MarketWatch) — Greek leader George Papandreou on Thursday withdrew plans to put the nation’s latest bailout plan to a popular vote. [and this] cannot depend on a referendum. P a p a n d r e o u s i g n a l s r e t r e a t a s p a r t y r e b e l s : r e p o r t s News & Commentary Greece backs away from bailout referendum. . Speaking to reporters after the meetings. “What is important is for the sixth tranche to be disbursed. without any distractions or delay. That’s very clear. Venizelos and Papandreou both travelled to Cannes to meet on Wednesday evening with euro-zone leaders. 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. “Greece’s position within the euro area is a historic conquest of the country that cannot be put in doubt . France. “It’s not the moment to give you the exact wording. The premier’s bombshell announcement on Monday that there will be a referendum on the aid-forausterity package has sent global financial markets into turmoil.” he said. Inc. stunned Greece’s euro-zone partners and raised fears of a default by Athens. The Wall Street Journal reported. there would be no need for a referendum. 477 mots 3 novembre 2011 22:27 MarketWatch MRKWC CTGSMFS Anglais Copyright 2011 MarketWatch.

" Mr.wsj.5% to 1.S..K.S.W S J B L O G / T h e S o u r c e : L i v e B l o g : G r e e k D r a m a .) 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. Passera said. President Obama was particularly interested in building strong. Merkel at one point in the discussion. Page 8 of 17 © 2011 Factiva. announced it would cut its main interest rate from 1.Obama. which sets monetary policy for the 17 states using the euro. 1:34 pm EDT. Federal Reserve-like role for the ECB.498 mots 3 novembre 2011 18:05 Dow Jones News Service DJ Anglais (c) 2011 Dow Jones & Company. the ECB cut its benchmark interest rate by 25 basis points to 1. 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. G-20 Summit 3. 2:00 pm EDT. Mr. but it is too early to talk about numbers. Inc. ECB..UK: Debate On Increasing Resources to IMF by Nicholas Winning A debate has begun on increasing resources to the International Monetary Fund. Merkel Discuss ECB Role In Euro-Zone Debt Crisis Solution." Earlier Thursday. Mr. according to the person. "Every country in the EU has to take responsibility for itself. particularly opposed. by William Boston U. the European Central Bank. 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. "I am completely invested in your success. G - 2 0 S u m m i t WSJ BLOG/The Source: Live Blog: Greek Drama. . Chancellor of the Exchequer George Osborne said Thursday at a summit of leaders from the Group of 20 industrial and developing nations. 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. E C B . 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. But there is no consensus in Europe for a U. Obama impressed upon Merkel that it was of vital interest to Americans that Europe resolve the crisis. Meanwhile.. Tous droits réservés. (This story has been posted on The Wall Street Journal Online's The Source blog at blogs. efficient firewalls to stop contagion spreading.25%. In a surprise move Thursday afternoon. 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. with the euro zone's most powerful member. Speaking on the sidelines of a presentation in Milan. U.25% amid the deepening sovereign debt crisis. Inc.S. Passera said the cut "will benefit growth.. joined by the International Monetary Fund. has pressed throughout the year for a stronger role by the ECB to fight the euro-zone Germany. 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. saying "it was a positive sign" for growth. The U." President Obama told Ms..

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

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

and as Governor of the Bank of Greece from 1994 to 2002. . ECB: Final Thoughts. told reporters Thursday.S. In an interview with the Wall Street Journal in May. Mr. Mr. Mr. The Obama administration has backed a different kind of tax. "It's totally supported but the bond investors need to have the technical implementation data. And both got the same disappointing answer.m. the White House's deputy national security adviser for international economic affairs. Inc. 10:35 a. 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. Meet Lucas Papademos. 11:05 a. chief executive of German insurer Allianz SE. by William Horobin Boosting the euro zone's bailout facility by using it to insure bonds still has the full support of investors. U. Investors Still Supporting EFSF as Bond Insurer. and Sweden -. Diekmann said." Mr. as well as its European Union and international pledges. and even some European nations -. Papademos has ample experience dealing with policy and markets as a former Vice-President of the European Central Bank from 2002 to 2010. said Thursday. 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. Papademos discussed some of the steps Greece needed to take to address its mounting crisis. "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. a financial crisis responsibility fee.Italian premier Silvio Berlusconi said the fundamentals of the country's economy are solid. is currently a Visiting Professor of Public Policy at Harvard University Kennedy School of Government. Mr. European Union leaders are using the G-20 forum to push for a tax on trades of stocks. is against the proposal. 10:47 a. as Greece's woes have become the biggest test of the euro zone. "I have a great admiration for the tradition of the (German central bank) Bundesbank. the man some expect to lead a unity government in Greece if Mr. Diekmann. 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. 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. bonds and derivatives to raise money for taxpayers who have bailed out their financial systems. Six months later.m. As long as they don't have these answers it will be very difficult for them to say 'we'll take that up.K. After a positive initial reception. the deal forged in Brussels has met with skepticism regarding the details.'" Mr.m. Tous droits réservés. "[Bond investors] need to understand the pricing mechanism and know if these bonds are going to be part of indexes or not." Mike Froman. 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. But government debt investors are waiting for the details before making a move. The U. 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.m. Papandreou resigns as Prime Minister. Won't Join EU on Financial Transactions Tax.say it won't wor k unless it's adopted globally because activity would move to regions that don't assess the tax.S." Page 11 of 17 © 2011 Factiva. while acknowledging the country's problem is its debt pile. on the largest financial institutions. Papademos could not be reached for comment. 11:26 a. Papademos will find even tougher challenges if he were to take the job.such as the U. by Brian Blackstone Mario Draghi ends with a shout-out to the home audience. by Eduardo Kaplan Lucas Papademos.

* Draghi rejects ECB role as lender of last resort to governments. Draghi to ease monetary conditions. Jean-Claude Trichet. Inc. helping the euro to stem its losses after the ECB rate cut and as a press conference with Mr. Refers to "strange schizoid attitude" in which some observers say balance sheet at risk. Forcheski noted that the move is a clear departure from the more hawkish stance of the central bank's previous head. EUR/USD falls below 1. "Mr Draghi is making a splash in his first meeting.m. ECB: Dragi Says Balance Sheet Not at Risk.25 percentage point to 1. . For the moment.25%. by Brian Blackstone Mario Draghi says ECB's balance sheet is not at risk despite holdings of Greek bonds. Europe fails… We will do whatever it takes to protect this currency. ECB: Difference in Opinion? by Katie Martin Spot the difference. 10:25 a. Mr. but as focus shifts to looming pitfalls (such as Greek referendum and possible euro-zone exit).' 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 0.3753 before the press conference. In his first press conference at the helm of the ECB. 10:32 a. But his response to the totally inevitable "will the euro break up?" question has hardly been rousing. ECB: Dollar Moves Higher Across the Board. * But sidesteps questions whether ECB will stop buying bonds once EFSF able to do so. * ECB willing to cut rates even with inflation high. 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. Angela Merkel: "If the euro fails. 10:23 a. and traded as low as $1." We're paraphrasing. Draghi denies a "legalistic" stance to the structure of the common currency." Mario Draghi: "Euro breakup? It's not in the treaty. Tous droits réservés. Draghi's generally gloomy tone on the outlook is not helping one bit.40%.3675 against the dollar from $1. raising hopes that a dreaded referendum vote on the country's bailout package might be abandoned. ECB: Super Mario Makes a 'Splash. by Dow Jones Newswires The ECB's surprise rate cut initially sparked a risk-rally. 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. The currency was at $1.m.m. down 0.3807 before the decision was taken. The rate cut confounded the consensus market expectation that the ECB wouldn't cut until December. Mr. the dollar is getting a broad lift. 10:21 a.Bottom line from presser.m. QE3 is less of a concern for shelter-seeking traders flocking to the dollar.37. although a few bank analysts had expected Mr." said Carl Forcheski. The single currency rallied earlier in the day during London trading hours as the Greek political situation showed signs of unravelling. The European currency sank towards the day's low. The euro's under serious pressure in the wake of the ECB's surprise rate cut. but you get the idea. A ruling socialist party official said Greek Prime Minister George Papandreou would resign as early as today. a currency strategist at Societe Generale in New York. Page 12 of 17 © 2011 Factiva. and Mr. extending losses made after the rate cut. while others say ECB should expand it to help everybody.

But the greenback recovered its losses during Mr. [ 11-03-11 1405ET ] Document DJ00000020111103e7b3000qq Page 13 of 17 © 2011 Factiva. "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. head of currency strategy at BNP Paribas in at http://wsj. At 1403 GMT the euro was at 1.3666 and at Y106. see WSJ.64.wsj. Draghi's speech to trade at Y78. after the Japanese currency gained sharply against the euro.00 from Y107.03. . Inc. while the dollar was at Y78. [ 11-03-11 1405ET ] Meanwhile. the dollar fell against the yen after the ECB decision and hit the day's low.Draghi got underway." said Steven Saywell. see http://blogs.02. The euro traded as low as -For previous items on this Tous droits réservés. For continuously updated news on all subjects from The Wall Street Journal.

with officials predicting any time in the next month. because no member of Parliament wants the responsibility of toppling the government at such a crucial time for the country.W S J : G r e e c e S t i c k s W i t h R e f e r e n d u m 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. government worries such a financial crash in a key part of the world economy could hurt global growth. Tous droits réservés. was meeting in Cannes with French President Nicolas Sarkozy. Another IMF official noted. "We may have another loss of a deputy in the process but I see Papandreou as hanging on. Many Greek lawmakers rebelled against Papandreou's fueling the spread of the debt crisis into other euro-zone countries. Papandreou. But many in Greece doubt Papandreou will survive as prime minister for long. exactly. the official said. after which they said they would press ahead with the accord struck between European leaders last week. Greece needs the cash to pay off upcoming debts. Even if he continues as Page 14 of 17 © 2011 Factiva. WSJ. sparking warnings it could push Greece into a disorderly default on its debts and destabilize the entire euro zone. . Without the E. but one that also risked wrecking Europe's plan for taming the debt crisis in the euro zone.U. 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. News of the referendum early Tuesday sent shock waves across European governments and markets. they said. 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. and IMF loan. Merkel and Sarkozy conferred in an emergency telephone call. Athens will likely be forced to default on its debt. . The U. It is unclear when. The agreement would put Greece back on the path to growth. who faces a confidence vote in Greece's Parliament Friday. The IMF successfully negotiated a new agreement." an IMF official said. (This story and related background material will be available on The Wall Street Journal website. "The latest it can be done is Dec. German Chancellor Angela Merkel and other European Union leaders as well as International Monetary Fund chief Christine Lagarde. 11. Without that decision." he said. but now will most likely wait until after the referendum. In the middle of negotiations with Ireland. Anthony Livanios.. for example. 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. seen as an attempt by the prime minister to shore up support for his drastic austerity policies. The IMF board was supposed to vote on the next tranche of its joint bailout program with Europe in midto-late November. Athens will run out of money. who were caught unawares by the referendum call. the IMF has had to deal with political risk in other programs. an independent political analyst. Inc. a government was ousted and replaced by the opposition. however. we can't agree on the next tranche of the program.) 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. Inc. said he would be surprised if Papandreou didn't pass Friday's confidence vote.. The turmoil in Greece caused consternation in other European capitals on Tuesday. The leaders. depending on the success of collecting new tax revenues.

"There is no chance that it won't happen. The likely outcome. he wants tax cuts. [ 11-02-11 1415ET ] Document DJ00000020111102e7b2000md Page 15 of 17 © 2011 Factiva. Apart from the four deputies who voiced their opposition. raising fears that Papandreou may soon be ousted. What people say today is different from how they will vote later. six other senior Socialist party officials called for Papandreou's replacement. head of the conservative New Democracy party. Junior cabinet minister Milena Apostolaki said she was leaving the socialist camp because she flatly disagreed with the referendum.premier. he risks becoming a lame duck following a rebellion among his Socialists against his referendum proposal. arguing they are destroying the Greek economy. Tom Lauricella. where four Socialist party deputies voiced their opposition to the referendum. Samaras came out against the idea of a referendum and called for elections instead. would be a center-right government led by Antonis Samaras. But senior government officials played down the dissent. "There was a unanimous decision to support the referendum. Gabriel Parussini and Stelios Bouras contributed to this article. then the country's exit from the euro is almost certain. if they say no to the austerity measures in return for bailout loans. Tuesday was a day of high drama in Athens. which other European leaders have told him they aren't prepared to finance. Tous droits réservés. Her defection left the party with a razor-thin majority of two seats in Greece's 300-seat Parliament. Most analysts now expect Greece to hold early elections at some point in coming months." 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. opinion polls suggest. "If Greeks vote no in the referendum. That would pose a new headache for Europe: Samaras has consistently denounced the austerity conditions that are tied to international aid for Greece." a Socialist party official said. Inc." a senior government official said. . Instead. On Tuesday. --Ian Talley. and one lawmaker quit the party outright.

com/subscribe or call 1-866-853-3661. Tous droits réservés. 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. Inc. The danger is that a "no" vote could bring down the government and cut off international funding for Greece. Document WASBJO0020111101e7b100008 Page 16 of 17 © 2011 Factiva. All rights reserved.G r e e k b a i l o u t r e f e r e n d u m t h r e a t e n s d e b t d e a l 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. Did you find this article useful? Why not subscribe to Washington Business Journal for more articles and leads? Visit bizjournals. leaving the country facing a financial meltdown. Inc. The Wall Street Journal reported. 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 government expects to hold the referendum in January.

S t o c k m a r k e t s h i t b y G r e e k d e b t r e f e r e n d u m Stock markets hit by Greek debt referendum Staff 152 mots 1 novembre 2011 Dayton Business Journal Online DAYBJO Anglais © 2011 American City Business Journals. Tous droits réservés. Did you find this article useful? Why not subscribe to Dayton Business Journal for more articles and leads? Visit bizjournals. leaving the country facing a financial meltdown. The danger is that a "no" vote could bring down the government and cut off international funding for Greece. 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 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. All rights reserved. The government expects to hold the referendum in January. Inc. Document DAYBJO0020111101e7b100002 Page 17 of 17 © 2011 or call 1-866-853-3661. That has sent futures on Wall Street significantly lower as the stock markets are set to open with big losses Tuesday. . The Wall Street Journal reported. Inc.

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