Germany calls for Greek bond swap save time (AP)

By DAVID McHUGH and GABRIELE STEINHAUSER, AP Business writers David Mchugh and Gabriele Steinhauser, Ap Business writers - Wed Jun 8, 4: 34 pm EST

Frankfurt, Germany - Minister of Finance of the Germany, said the private creditors must share the burden of any financial assistance more high for the Greece under an agreement to prevent, by default on its debts.

In a letter to officials dealing with the debt crisis and obtained by the Associated Press Wednesday, Wolfgang Sch?uble suggested an Exchange that extend repayments of the debt by seven years and Athens to give time to reform its economy.

Such an approach has already been strongly opposed by the ECB in the field, that it could spread unrest through the financial system of the continent, then the ratings agencies have warned, it could be considered as a defect.

In the letter of Mr. Jean-Claude Trichet, the President of the European Central Bank, the Monetary Fund interim management International Director John Lipsky and other finance officials, said bond - so far spared losses that the countries of the euro area were rescue of Greece, the Ireland and Portugal - should be a "substantial and quantified contribution" for the new aid package reviewed by the Governments of the euro and the Monetary Fund International.

The best way to do that, it was said, was to swap the existing Greek bonds for new bonds which could extend their maturity in seven years. Sch?uble is one of the Finance Ministers of the euro area trying to find an agreement on a new package of aid for the Greece in time for the next formal meeting on 20 June.

He said that expect the Greece need for a "substantial" increase in aid.

"At the same time without another disbursement of the funds before July, we face the real risk of the first default unorderly in the euro area," it said.

In the letter, said any deal June 20 "" must include a clear mandate - to Greece, possibly with the IMF - to begin the process to involve Greek bonds holders.""

"Such a result can best be achieved through an exchange of link leading to an extension of Greek sovereign bonds in circulation by seven years, at the same time giving Greece the time needed to fully implement the necessary reforms and regain the confidence of the markets," said.

The idea may face the opposition of the ECB, which has flatly opposed any restructuring of the Greek debt that would bond with less than full value. ECB officials said that such an approach would be inflict losses on the unstable Greek banks which the Government can afford sick bail and could make it more difficult for other countries to borrow money on the bond market because investors would fear the possibility that similar measures.

The ECB has even threatened to ban the use of the obligations of the Greek Government as collateral for Central Bank credit to Greece does what he considers a restructuring of its debt. Rock, which would be the Greek banking system, which is based on the support of the ECB, because banks can not find credit elsewhere.

The Greece received a package of international rescue (161 billion dollars) last year European billion, but is still the difficulty come with money to pay its debts, as it is considered too risky to borrow on the private bond markets.

The risk of Greece running money next year, as banks and investment funds reluctant to buy bonds of the country, which remains stuck in recession and is struggling to reduce its large budget deficit. Some rich nations are opposed to put more money without obtaining the private creditors share the part of the load.

A spokesman of Monetary Affairs Commissioner Olli Rehn of the Union - one of the recipients of the letter - said Wednesday that no decision on the exact nature of the participation of the private sector has been made, but that officials of the euro area are currently seeking a several options, including asking banks and other financial institutions to keep their loans in Greece at its current level or to extend the deadlines for repayment for bonds that they hold.

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Steinhauser contributed Brussels

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Dow 1% as stocks rebound (Reuters)

NEW YORK (Reuters) - The Dow rose 1% Thursday, with Wall Street rebounding after six days of losses a restricted US trade deficit has been seen as a positive point in a recent string of weak economic data.

The Dow Jones industrial average (.)(DJI) has acquired 120.49 points, or 1.00%, to 12,169.43. The Standard & Poor 500 Index (.)(SPX) increased $ 12.17 points, or 0.95%, to 1,291.73. Nasdaq Composite Index (.)(IXIC) added 11.86 points, or 0.44%, to 2,687.24.

(Reported by Edward Krudy.) (Editing by Jan Paschal)

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Dollar mixed, slide in stocks on the comments of Bernanke (AFP)

London (AFP) - the dollar traded mixed, and global markets mainly remote fellows on Wednesday as comments by Federal Reserve Chairman Ben Bernanke and German data underlined the fragility of the global economy.

The dollar against the euro but slipped against the yen in London trading.

The euro fell to $1.4656 in London in exchange of $1.4688 at New York on Tuesday. Against the Japanese currency, the dollar has fallen to 79.86 hollow Tuesday yen.

In trade in the stock market, benchmark FTSE 100 in London fell by 0.91% to 5,810.88 points, DAX 30 Frankfurt hangar 1.16% to 7,022.44 points and in Paris the CAC 40 index lost 0.96% to 3,837.31 near the mark to Midway.

"All the hits so far this morning have a muted response to the comments of Bernanke, yesterday evening reflecting fairness and the weakness of the products and the strength of the dollar," said analyst Simon Denham capital spreads trading group.

Gold prices slid to $1,537 ounces $ 1 545 Tuesday. Asian stocks closed mostly lower that concerns about the State of the global economy has reached the confidence, but a rally end saw the Nikkei finished the day in positive territory, said traders.

Oil futures also fell as a divided OPEC considered to boost supplies in a move aimed at reviving global economic growth low but which returned lower risks for energy producing nations.

On Tuesday, Bernanke warned that there was a "loss of momentum" in the already lukewarm us jobs market.

Two years after a slow recovery and largely unemployed, Bernanke said that employment and growth would eventually pick up, but a recent soft patch was carefully monitored and that stimulating policies were still necessary.

US stock market has waived all their gains Tuesday after comments from the Director of the reserve which came just 15 minutes before the closing bell.

A floating day became the fifth losing session in a row after Bernanke said to an audience that the low housing sector retain recovery and that job creation was in a recession "from normal".

On Wednesday, traders digested as low data Germany European powerhouse. Official figures showed that industrial production slipped 0.6 percent in April from output in March, the first fall since December.

The result was another sign that the largest economy in Europe slows, although economists expect him still increase by at least 3% this year.

During this time the trade between the Germany and the rest of the world collapsed in April, separate data showed underlying forecasts for a slowdown in global activity in the middle of the year.

German exports fell by 5.5% compared to the previous month while imports decreased by 2.5%, the national statistical office, said in a news release.

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Growth in the first quarter euro-zone confirmed to 0.8% (AFP)

Brussels (AFP) - economic growth of euro 17-state area was 0.8 per cent in the first three months of the year of output in the last quarter of 2010, the European Union said Wednesday.

Final confirmed figures of the Office of the EU data, Eurostat, showed an acceleration in the rate of recovery of the euro between January and March of growth of 0.3% in the previous quarter - an increase of 2.5% on the corresponding period 12 months earlier.

The figure for the euro area, despite his battle with a deep and persistent debt crisis, compares favourably with that for the United States, which has posted growth of 0.5%, and the Japan, where the economy decreased by 0.9%.

When counted up, the full EU, which also includes powerful but non-euro Member States Britain and the Poland, also logged growth of 0.8%, having hit just 0.2 percent over the last three months of last year.

In retail, household expenditure increased by only 0.3% in the euro area, the same as in the previous quarter, while exports increased by 1.8% and imports also up to 1.9 per cent.

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Speedy coalition of Portuguese politicians eye deal (AP)

Lisbon, Portugal - Portuguese political leaders Wednesday began to discuss the possible formation of a coalition Government that would require enough votes in Parliament to ensure the adoption of austerity measures promised in exchange for rescue billions of euro78 of the country.

Portugal attempts to release a burden of ruinous debt that has launched the economy into recession and unemployment at a record 12.6%.

He committed these increases and compensation and expenses budgetary and social reforms and deep economic, through the provided by Europe and the Monetary Fund financial rescue plan International. Any sign that the new Government fails to comply with the commitments of the country could further complicate the European sovereign debt crisis.

Pedro Passos Coelho, head of centre-right Social Democrat who won the most seats in the general election at the end of last week, has opened talks with Paulo Portas, smaller people's party leader, conservative.

Together, the two parties have 129 seats in the 230-seat Parliament, giving them an absolute majority and the power to adopt policy of debt reduction and economic reforms.

The Social Democrats, who had filed a six-year Socialist Government, collected 105 parliamentary seats in Sunday's ballot. This means that the opposition parties could potentially consolidate to overcome its plans if it governs alone in his four year term.

The Greece, who also had a rescue plan, is struggling to ensure parliamentary approval for a new set of strikes and protests austerity measures. Portuguese unions have also committed to demonstrate against austerity measures.

The Social Democrats and the popular Party approved rescue repair to dig the Portugal of its debt hole, and they ruled in coalitions in the past.

Passos Coelho, who has never held a Government post, should become Prime Minister. Portas is tipped to be Foreign Minister.

In a brief statement written after two hours of negotiations, the leaders said that their delegations would be to continue the negotiations in the coming days.

On his Facebook page, Portas wrote that the needs of the Portugal are urgent. "Negotiations... cannot be extended,"he wrote."".

The new Government has no time to lose as the Portugal must adopt measures more than 200 over the next two years under the Rescue Agreement. A slate raise money privatisations is due to take place before the end of the year. They include the state airline TAP Air Portugal, ANA airport management company and the division of the transport of the national railway company.

President Anibal Cavaco Silva, mostly a ceremonial figure, said that he wanted to to swear in Passos Coelho as Prime Minister in time for a June 23 Summit of the Union European.

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Poland increases the interest rate of 4.5 per cent (AP)

Warsaw, Poland - Central Bank of Poland Wednesday raised interest rates by a percentage point to a quarter of 4.5 per cent that it tries to curb inflation.

The National Bank of the fourth increase in the Poland this year has been widely expected that the price of fuel, food and other items continue to increase. The move also comes in strong consumer demand and high wage pressures.

Despite higher borrowing costs, the Poland economy continues to grow strongly. Economic growth this year should rise to about 4%.

Bank BPH in Warsaw said that it expects a rise in rates more this year if inflation remains high.

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OPEC split on the increase in oil production (AP)

Vienna - Mideast turmoil, a weak global economy and divisions to raise crude production promise to make OPEC this week meeting one of the most volatile in recent history or not.

Ultimately, the Group of 12 countries is probably opt to increase the output level to reduce international concerns about the high price of oil. But some influential members are looking to increase the price of crude oil.

Iraqi oil Minister Abdul - Karim Elaibi, said to journalists Tuesday that a price of $100 and $120 per barrel is "reasonable". Who is reached or exceeds the current prices and is considered too high by the major catch oil consuming countries with their economies. And it goes against the efforts made by the cartel, OPEC Saudi Arabia to push prices downward.

OPEC oil ministers are often faced with easier choices at regular meetings, where they seek agreement on how to pump and sell to the rest of the world. But mixed signals before the meeting on Wednesday to take difficult decisions.

Disorders of the Libya and the Yemen threatens to destabilize the large region's oil-producing nations. Normally, the two countries produce less than 4% of the world's oil needs, and Saudi Arabia, and other increased profitability to offset much of the deficit. But the concerns that the violence could spread to more large producers and seriously cut in world production has caused jitters, crude exporters and United States, China and other consumers with enormous needs.

The precarious state of the world economy is an another wild card of talks this week.

Weak housing and employment reports in the United States, added to the gloom spread by the attempts of Europe to bail out Governments and the merger of the Japan post-Fukushima. Its current price of about $100 a barrel, crude reference may be too expensive for the nations of ends, a worsening of the situation, and resulting economic difficulty less demand for oil.

But with the spraying of savings by using less energy, raising output to lower prices can also flood the market, leading to a surplus which can result in prices below $ 80 per barrel. Even this reference, which is preferred by the Saudis and other moderate OPEC members is considered as too weak by price hawks Iran and the Venezuela.

Analysts noted that it y much at stake, but that the contradictory signals facing Ministers are creating uncertainty.

Johannes Benigni of energy JBC called meeting of OPEC on Wednesday "an event key..." (which) could be in fact the most important (OPEC) gathering of the Decade. "Energy analyst IHS Catherine Hunter described as" one of the most difficult sessions for some time, in terms of gauging fundamental market and navigating the Intergroup policy. "

In one such context, OPEC - supplies of oil, which represents approximately one-third of the planet - cannot be regarded as indécise. Ehsan Ul - Haq, with KBC Energy Economics, said the world "would like a clear signal" of OPEC that it is ready to stabilize markets and to alleviate the concerns of the price will lead still above.

The 11 members of OPEC are already exceeding their current production quotas. Their production is about 26.15 million barrels per day – approximately 1.3 million barrels above the daily target of production overall 24,85 million barrels a day OPEC agreed two years ago.

Opens the way to what would be a relatively painless decision - the meeting may choose to raise the ceiling for output levels of real output of about 26 million barrels per day. Add the daily 2.7 million barrels produced by Iraq, which is not bound by quotas, and OPEC could lead to more than 29 million barrels per day on the market.

Head of energy JBC Benigni expects a similar scenario. Production of OPEC forecasts it will be approximately 30.5 million barrels per day by end of 2011, assuming that the members of the nations producing above their individual ceilings, as usual.

Once more, the Saudis - which represent approximately one third of OPEC's production - will be the main champions of hiking the ceiling of production to drive down prices, in their opinion that should be the crude extraction between $70 and $80 per barrel. Oppose is Iran, producer of no. 2 of the OPEC, which argues that world inventories are already high and an increase in output targets would lead to a glut and a corresponding price decline.

"There is no need for any increase in the performance of the production by OPEC", Mohamad Ali Khatibi, a senior Iranian OPEC delegate, told Iranian State television Monday.

While the Saudis are supported by the countries of the Gulf, the weakness of the US dollar could generate support for the Iran. The price of oil is $, which means that producers lose whenever the greenback slides in value.

Ul Haq noted that the Iran and assailed Government of Libya - which has little sympathy for the United States and other consumer oil Western choirs insurgents seeking to overthrow Muammar Gaddafi - will send new Ministers to the meeting.

The two should be severed price hawks. That said Ul - Haq, "could result in very long discussions between the group led by Saudi Arabia and the group led by the Iran."

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George Jahn is available at http://twitter/georgejahn

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Margaret Childs in Vienna and Ali Akbar Dareini in Tehran has contributed to this report.

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A look at economic developments around the world (AP)

A look at economic developments and activity in major stock markets of the world Tuesday:

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Vienna - Mideast unrest, a weak global economy and divisions on whether to increase gross production promise to OPEC this week meeting one of the most volatile in recent history.

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ROME - food world prices fell slightly in may, but they will remain "at stubbornly high levels" for the coming months, a United Nations agency said.

The Food and Agriculture Organization said high and volatile prices can wait for the rest of this year and in 2012, citing a decline in stocks of food and modest production increases for most crops.

Food prices fell by 1% in may from the previous month, but are still 37 per cent above may 2010, according to a price index. The index had reached a record high in February, raising fears of a repeat of the 2007-2008 food crisis, when high prices have led to violence and political tensions in many regions of the world.

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Brussels - Sales at retail in euro 17 countries have increased by more than expected in April despite concerns about the debt crisis and the first interest rate rise the European Central Bank in nearly three years.

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Brussels - The European Union, said the plans by 27 States members of the bloc to reduce budget deficits and to stimulate their economies in the following year are often too vague and not ambitious enough.

Executive Board of the European Union published its first assessment of the planned budgets of States and economic reforms, an annual exercise presented following the financial crisis which has made European economies.

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LONDON - In Europe, Germany of DAX closed 0.3 per cent higher, the CAC 40 in France was 0.2 percent higher and the FTSE 100 index leading British shares ended up less than 0.1%.

Earlier in Asia, the closed Japanese Nikkei 225 0.7 percent, index ABN of the Korea of the South slipped 0.7%, Hang Seng Hong Kong index lost 0.4% while mainland China shares gained 0.6% as investors kept on the alignment of the bargains after recent liquidation.

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Athens, Greece - country Europeans must decide how connect the Greece potential gaps in funding next year until the Monetary Fund International may release its next batch of loans, an emissary of the IMF said, as the economy of the country who have difficulties Minister were of criticism from members of the party over new planned austerity measures.

Representative principal Bob Traa said EU leaders had "hard to crack nuts" at a Summit of the European Union at the end of June - accepting additional if necessary rescue support - before the IMF would release its share of a euro12 billion ($18 billion) July opus, which is due for rescue the European billion last year.

The initial rescue loan agreement had predicted that the Greece would be able to borrow on the markets of the part of its next year's financing needs, but the average of the high interest rates which is very likely. Accordingly, it is expected that the Greece will be need for additional assistance beyond the current set of rescue loans.

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SHANGHAI - Foreign manufacturers see mixed trends sales in China as a largest market worldwide for new vehicles cools after years of unbridled growth.

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Brussels - Wholesale of fruit and vegetable producers Spain, Italy and France with anger asked compensation for farmers who have been deceived by considerable losses in the initiation of e. coli, forcing the head of the EU farm to increase its offers of assistance.

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HONG KONG - Italian fashion house Prada SpA plans to increase to $ 2.6 billion in a listing on the stock exchange of Hong Kong, according to a person familiar with the deal, to join other foreign companies flocking to cash in on the growing fortunes of China.

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Lisbon, Portugal - Portugal, the authorities are trying to speed up bureaucratic procedures so that the new centre-right Government can get to work on the fight against the crisis of the country's ruinous debt.

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Macau - Asia will be home to the two largest casino markets worldwide at the beginning of this year, with all Singapore to take the n ° 2 place in Las Vegas, an American game industry group said.

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NEW DELHI - Minister of Finance of the India, said that the Director General of the Monetary Fund International must be chosen on merit and not nationality, as the Minister French of finance Christine Lagarde went to New Delhi on a canvas for the work.

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LONDON - that the major airports in Britain, most of its public services, the chain of pharmacy top of the page and creator of the nation's favourite chocolate bar have in common? All are owned by foreign companies. But resumed controversial last year by Kraft Foods Inc. of 195-year-old creator of the bar of Dairy Milk, Cadbury PLC, was a nationalist sentiment and prompted the Government to take into account several protectionist laws.

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REYKJAVIK, Iceland - former Prime Minister Geir Haarde Iceland is due in court to be formally charged for his role in the nation Bank collapse.

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WASHINGTON - The U.S. called for China to reveal all of its programs as Beijing Government funding back in a trade dispute between the two major economies of the world on clean energy technology.

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LIMA, Peru - President-elect of the Associates of Peru new leftist are doing their best to soothe investor fears after the stock market plunged on concerns that it will be hostile to private enterprise.

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Manila, Philippines - the Inflation in the Philippines increased 4.5 percent as the price of clothing, fuel and public services have increased.

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Havana, Cuba and China signed a series of economic agreements that include the extension of an oil refinery in Cienfuegos.

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Slide in world stocks, dollar dented by Bernanke (Reuters)

London (Reuters) - European stocks fall on Wednesday and the dollar dropped to a minimum of one month against the yen after the US Federal Reserve Chairman Ben Bernanke offered a dark vision of the economy, but did not provide advice of fresh stimulus.

Concerns about growth in the largest economy in the world have dominated financial markets, this month, and European stocks fell to their lowest levels since mid-March, global stocks of conduct 0.5 per cent below the day. (.(MIWD00000PUS)

Future equity U.S. declined by 0.4% to 1,279.00.

Bernanke acknowledged the US economy had slowed, but provided that no suggestion of the Central Bank was prepared to step in with a third round of bond purchase - a form of QE - to support the growth. The dollar fell in response.

"IS3 looks as if it has become a distant hope." "The markets had pinned much on getting another form of stimulation," said Justin Urquhart Stewart, Director at seven Investment Management.

The FTSEurofirst 300 (.)(FTEU3) high European equity index decreased by 1% to 1,093.32 points, a two-and-half month low and a sixth consecutive day of losses of plumbing.

Uncertainty about whether if European politicians will manage to identify an agreement for further financial assistance for the Greece has also impeded sentiment towards the euro area.

The euro briefly rose to a maximum of one month of $1.4696 in Asia as the dollar flanché, but later pared to $1.4648, off the coast of about 0.3 per cent for the day, hit by a slowdown in German exports and a fall in industrial production.

Greek and Portuguese debt insurance costs against default rose as investors fretted about the possibility of a Greek debt restructuring and because of the risk aversion scans markets.

German Government bunds increased approximately 13 ticks, although outperformance in the overnight US Treasury bills has seen performance on the fall of paper U.S. 10 years 9 basis points below that of the dikes, most in one year.

"Bernanke was too consensual and this is U.S. data that set the tone of here, said a trader of bonds." We're not more wood and the periphery of the euro area and the last thing that they need is a slowdown in growth. ?

Greece needs a fresh substantial assistance of the euro area to prevent the insolvency of first State currency bloc, a German newspaper reported Tuesday, quoting the Finance Minister German Wolfgang Sch?uble.

OIL SLIDE

The dollar fluctuated close to a minimum of one month less 80 yen: the Japanese currency confirmed on the risk aversion increased reflected in falls in the stock. The dollar index was also to lows a month of 73.506 struck Tuesday (.)(DXY)

Poor signs on growth in addition to the belief of market that U.S. interest rates will remain low for an extended period, while the European Central Bank is scheduled to report Thursday, it will move forward with a further increase in interest rates next month.

Brent crude fell 0.5% to $116.36 per barrel, after gaining $2.30 Tuesday. Investors are trying to determine if OPEC will raise production targets at a meeting in Vienna.

"Oil prices have been softening this morning on the back of expectations that the meeting of OPEC of today could bring an increase in production to match estimates of oil demand growth," said Jane Foley, currency analyst senior of Rabobank.

"High commodity prices are being associated with soft us growth and since EQ can be a factor behind the acceleration of prices in this sector, the Outlook for oil prices are a critical component of decisions." "of the decision makers", she added.

(Additional reporting by Nick Macfie, Brian Gorman and Kirsten Donovan; editing by Patrick Graham/Ruth Pitchford)

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EU to increase the supply of aid for farmers affected by e. coli (Reuters)

LUXEMBOURG (Reuters) - strong European Union Chief said on Tuesday, he was ready to significantly increase its original offer of 150 million euros (220 million dollars) in financial compensation for farmers affected by a deadly epidemic of e. coli.

Advance of a meeting of Ministers of the firm Luxembourg, the European Commissioner EU firm Dacians Executive said agriculture of the European Union was prepared to provide up to EUR 150 million in compensation to farmers affected by the crisis.

"I committed myself to review this figure (150 million), the level of remuneration and come back with... a proposal substantially increased as soon as tomorrow," agriculture said at a press conference after the meeting.

(Statement by Charlie Dunmore and Julien Toyer)

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Greek reform efforts reached the critical stage (AP)

By GABRIELE STEINHAUSER and ELENA BECATOROS Associated Press Gabriele Steinhauser and Elena Becatoros Associated Press - 11 minutes ago

Athens, Greece - the Greece struggle to implement the new of austerity and avoid default installs in a critical phase Thursday as Prime Minister George Papandreou pressed his Cabinet for approval and international creditors chided the country for its lax efforts.

The new measures - budget cuts and a liquidation of the assets of the State in businesses and real estate - are a prerequisite for the Greece receive the next part of its rescue (161 billion dollars) European billion plan granted a year ago.

Without the payment of the Greece billion euro12, which remains mired in recession and locked out on international bond default on its massive debts.

Papandreou and his ministers were the subject of intense criticism of their own members of the Socialist Party in a series of meetings of marathon on the plans. They include a repair euro6.4 billion ($9.4 billion) package of cuts and hikes tax for this year, a reader of austerity renewed for 2012-2015 and a programme of privatisation ($73 billion) euro50 billion.

Pressure on Papandreou and his Government is more important than ever, with international creditors of the country claim a cross-party support for the rescue package and to openly criticize the slow pace of reforms.

"After a fort in the summer 2010, came under the reform implementation to a standstill in recent quarters,"the European Union, the European Central Bank and Monetary Fund International wrote in a summary of their recent evaluation of the efforts of the Greece."." The Associated Press obtained a copy Thursday.

The three institutions, known as the troika, also cited "political risks" to the implementation of the programme of privatization in their conclusions, which were distributed between the Finance Ministers of the euro on Wednesday and budget cuts.

"Those doubts on the ability and the willingness of the company and the Greek Government to persevere in fiscal consolidation and restoration of competitiveness" are the main likely reason for the Greece will be not able to access new financial markets, leading to serious deficiencies in funding next year, the troika concluded.

While the General problems with the bailout of the Greece are known for some time, the summary of the report of the troika is much more critical than the prior statements.

The report also details some of the additional expenditure reduction measures the Greek Government plans to take over the coming year. To meet the objectives set out in the programme, the Government has to make budget cuts and other measures worth approximately 10 per cent of the production between 2011 and 2014, said of the troika.

Among those who are wage and job cuts in the public sector, a reduction in administrative and defence spending, savings in State enterprises, expenditure on health, pensions and disability services, said the report. Only 1 in 10 vacant posts in the public sector will be completed this year, and only one in five will be completed until 2015.

The Government also plans to raise taxes on fuel, property, beverages and tobacco, as well as restaurants and bars.

Some of the additional reductions are needed because the economy of the Greece did worse than expected, when the rescue plan was announced last.

In the first quarter, the gross domestic product of the Greece reduced 5.5% a year earlier, the national statistics Office said Thursday. The troika expected now of economy of the Greece to shrink by 3.8% in 2011, worse than the percentage of 3.5 abandon EU does predict that in May.

Without additional measures this year, the Greece budget deficit would remain more than 10% of economic output, the troika stated, the way off the coast of the 7.5 per cent target set out in the programme and also the prediction of 9.5% by the European Union last month.

The shrinkage of the economy has not only led to holes in the revenues of the Government, but has also caused difficulties for citizens.

Greek State-run enterprises workers walked off work Thursday to protest against the privatization of the Government plan because they fear that will lead to more jobs and salary reductions.

Under the slogan "we do not sell", they pass through the Centre of Athens.

Public transport workers walked off the coast of employment in the early morning and the end of the evening, then that port workers, post offices and banks called for a 24-hour strike. Television station technicians were also on strike, as were journalists in the diffuser of State-run, disrupting programing news live. A general strike was called for June 15.

Angry Greeks resumed the central Syntagma Square, establishment of a city attempts a sit-in. tens of thousands of people inhabited the square, which is located in front of the Parliament, last Sunday.

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Contributed by Derek Gatopoulos in Athens and Juergen Baetz in Berlin. Steinhauser contributed Berlin.

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D.Boerse, ears NYSE partners merge a dividend (Reuters)

Frankfurt / NEW YORK (Reuters) - Deutsche Boerse AG (DB1Gn.DE) and NYSE Euronext (NYX).(N) unveiled a dividend special Tuesday, flexing their financial muscle a month before shareholders decide whether to approve a merger which would create the largest operator of Exchange in the world.

Shareholders of a combined company are offered a one-time dividend of 2 euros per share after the transaction closes, the companies said in a joint statement. The total payment is approximately 620 million euros (910 million dollars).

The dividend, which had been discussed with shareholders over the past months, has been provided despite the fact that the rivals of Nasdaq OMX Group (NDAQ.)(O) and IntercontinentalExchange (Ice.N) abandoned a competing offer to the parent of the New York Stock Exchange last month.

Today, the main obstacle for the two exchanges is winning antitrust approval for their agreement to 10.2 billion in Europe, where the company will have a lock on derivatives trade-oriented.

"I don't know if this dividend was necessary for the approval of shareholders at this stage of the game because you did not have a competing bid, and I think that the risk is more on the competition (antitrust) side," said Chris Allen, trade analyst at Evercore Partners.

Deutsche Boerse shareholders have until July 13 to their shares in the deal and shareholders in the Big Board parent are set to vote on July 7.

The shareholders of Deutsche Boerse would control 60 percent of the new company. Deutsche Boerse executive chef Reto Francioni will assume the role of President while that Duncan Niederauer, who is the head of NYSE Euronext, will become the Chief Executive.

"The ability to offer a special dividend underlines the strength of the combined group," said Niederauer.

Earlier this year Francioni had rejected the company was ready to soften its provides suggestions.

"We have a... signed merger agreement which has been entirely negotiated over a long period of time," Francioni spoke analysts at the time. "We are under the terms of the agreement and we are working towards a fence in a timely manner."

Yet bid $ 11.3 billion from Nasdaq and ice - thwarted by the Ministry of Justice of United States and then withdrawn - may have influenced the decision of dividend. April 13, Reuters reported that the NYSE Euronext and Deutsche Boerse were weighing several options including pay a special dividend, to gain the support of the shareholder.

"The two companies have been capital return to shareholders, and they thought that they had a potential to do so in view of the combination, said Allen." It is something which has been a little telegram in the last month. ?

The news came after the NYSE Euronext shares were halted and sparked a brief jump by 1 per cent. The shares were off the coast of 2 cents to $35.48 in afternoon trading. Deutsche Boerse shares closed 0.6% to EUR 53.50.

In a separate move, announced Tuesday, Deutsche Boerse said that he had struck an agreement with SIX Group the Switzerland to take full control of the arm of derivatives Eurex, one of the engines main profits at Deutsche Boerse.

(Reported by Edward Taylor in Frankfurt and Jonathan Spicer in New York; editing by David Hulmes and Matthew Lewis)

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EU warns States on budget plans (AP)

By GABRIELE STEINHAUSER, AP Business writers Gabriele Steinhauser, Ap Business writers - Tue Jun 7, 10: 08 am and

Brussels - Plans by the Governments of the European Union to reduce budget deficits and to stimulate their economies are often too vague and step quite ambitious, Executive of the bloc warned Tuesday in a broader effort to prevent another economic crisis.

For the first time this year, the EU should present their plans for government budgets and economic reforms to the European Commission as part of an annual exercise introduced last fall, when the block was shaken by a strong economic recession.

The recommendations of the political Committee by countries seeking to catch the unsustainable developments before they lead to another systemic crisis, such as that which has already pushed five States of the EU - countries euro, Greece, Ireland and Portugal and the Romania and the Latvia - to search billions of euros in aid.

However, some programs (presented by the Member States) show an insufficient level of ambition and others lack specificity, "President of the Commission José Manuel Barroso told reporters in Strasbourg, France."

Some States do not enough to reduce government expenditure in accordance with the rules of the EU and do not have clear plans for getting back to people at work, at the discretion of the Commission. Unemployment and long-term unemployment among young people and women are also serious problems in the countries which were not so harshly affected by the crisis, the Commission warned.

The EU has limits on debt and deficits for years, but these rules have been violated on several occasions before the crisis. The budget and the recommendations for reform are part of a larger push to make these rules more effective - and expand them to include dangerous trends such as housing and banking bubbles, but their implementation is still in individual States and depends largely on name and shame by the Commission and the other countries of the EU.

A separate law that would allow fines be levied on countries whose finance and economies are out of the line is currently be combated by the Member States and the European Parliament.

"Our economies are interdependent to a degree never before, and this requires that cooperate us more closely and more effectively than we have in the past," Barroso said.

Recommendations give the EU the opportunity to highlight defects in healthier economies, like the Germany, Austria and Netherlands, at a time where much of his attention is focused on already reached-out countries. This is important because the Ireland and the Spain, which are now facing severe budget challenges, have long been considered model States as problems in the markets of the housing and banking sectors have been ignored.

In addition to the budgetary plans, EU Member States were also requested to clarify how they plan such more general targets that stimulate renewable energy, reduce emissions of carbon dioxide and for a stay of children in school.

While States are on track to meet those promises, "additional efforts will be necessary to achieve the objectives in the areas of employment, research and development, energy efficiency, higher education and the reduction of poverty" said Barroso.

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Recovery economic and stock market, recession (AP)

Rebound of the stock market has been more robust economic recovery since the great recession officially ends in June 2009. Below you will find data key to illustrate how the market and the economy have managed the past 24 months. There are also historical data to compare current performance with gains after previous recessions dating from 1949:

? STOCKS. The Standard & Poor s 500 has increased by 45%. This is almost double the 24% gain mean that the stock index posted in the next two years past recessions.

? THE PROFITS OF THE BUSINESS. Throughout the year among the S & P 500 companies operating profits should increase by almost 18% this year, according to the estimates of Wall Street analysts. 2011 A year would record earnings, with profit almost twice the level of 2008. Last year, profits jumped 50% compared to 2009.

? ECONOMIC GROWTH. Gross domestic product of the country, the total production of goods and services, increased by 3 per cent in the first 12 months of recovery, corrected for inflation. This is about half the growth in the first year average 6.2% in the past economic expansion. In the second year of recovery, corrected for inflation, GDP increased by approximately 2.9%, compared to a historical average of 4.1%, which is typical at this stage of a recovery.

? UNEMPLOYMENT. The unemployment rate in May was down 9.1%, 9.5% from the end of the recession. This is a decrease of approximately 4%. 11 Recoveries since 1949, the mean reduction in the rate of unemployment by this stage of recovery was about 14%, almost four times higher than the current decline.

? WAGES. Hourly compensation is 3.3% since the end of the recession. It is approximately one third of the average elevation 9.8% recovery at this stage of renewed economic.

___

Sources:

Moody s Inc. Equity Research, Capital IQ, Morningstar. Analytics, Standard & Poor

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Lagarde said back more say for China at the IMF (Reuters)

BEIJING (Reuters) - the candidate high to run the Monetary Fund International, the French Finance Minister Christine Lagarde, said that she supported a greater share of the China Fund while clarifying that the crisis in the euro area would be a priority if it wins the work.

LaGarde made the comments in Beijing, the latest leg of his tour of the world to obtain support for his candidacy FMF. It is considered the favorite to replace the former IMF Chief Dominique Strauss-Kahn, who was arrested month last on charges of sexual assault.

Lagarde said his talks with the Chinese Central Bank and Ministry officials finance on his candidacy were positive, but it has ceased claiming support of Beijing.

"I am very positive about my trip to China, but the decision did not belong to me." It belongs to the Chinese authorities, "she told a press conference at the France Embassy in Beijing."

"I am confident, that I'm very positive on the meetings, I got so far." Some Governments and some countries have decided to make public at the beginning. My feeling is that it is too early to count your chickens, if I may say. ?

China has not spelt out if it supports Lagarde, but she joined the other big emerging economies by requiring the IMF and other international financial institutions give greater attention to their demands.

And in Beijing, Lagarde said she listened to these requirements. She said that she supported the decision to increase rights vote China IMF 3.65% to 6.4% and also said the Organization would help Beijing internationalize its yuan currency.

After his talks with Chinese Deputy First Minister Wang Qishan and the Central Bank Chief Zhou Xiaochuan Wednesday, Lagarde suggested that there is room to more than the IMF reforms to give increasing savings more say.

"The second thing that we have also agreed on was that the trends of reforms that took place must be prosecuted and should be developed, both to the governance of the Fund, to the representativeness of its members, in particular with the countries that are underrepresented, as is the case with China," she said.

But Lagarde also clear, however, that its priority if it becomes Director-General of the IMF will euro zone crisis that continues to threaten the Greece, the Portugal and other European economies struggling to reduce the yawning fiscal deficits.

"It is clearly the priority of the operations of the Fund at this time," she said of the crisis of the euro.

She urged the Greece to emulate the Portugal seeking to form a political alliance wide to push through painful reforms.

Prime Minister of the Portugal waiting, Pedro Passos Coelho, started negotiations for formal coalition with the CDS - PP Droitiste party to seek a Pact to form a majority government.

"A large force of the Portugal that I hope that the Greece will be able to emulate is that Portuguese political parties and authorities joined forces and formed an alliance." That was critical, Lagarde said.

Finance Minister Pranab Mukherjee the India of said on Tuesday that the country had not committed to support the submission of Lagarde despite his visit, a sign that the India is perhaps still hopeful to appoint another candidate.

The main obstacle to Lagarde bid for the top IMF job is the possibility of an investigation on his role in a payment of arbitration 2008.

The Central Bank of the Mexico Chief Agustin Carstens, who is also in competition for the position of IMF, is due to visit China next week.

Lagarde said the new IMF head selection process should be open, transparent and based on merit, adding that the reform of the IMF should continue to benefit from the emerging economies that are under-represented, including China.

(Written by Kevin Yao;) (Editing by Ken wills)

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US stocks open higher after loss streak (AFP)

NEW YORK (AFP) - US stock markets begins Tuesday in positive territory, as traders seemed to come to a speech of the President of the Federal Reserve Ben Bernanke after a string of losing sessions.

The Dow Jones index was 52.98 points (0.44%) in the 12,142.94 points in the minutes of the opening of trade.

The broad S & P 500 earned a 6.33 (0.49%) to 1,292.50.

According to Patrick O'Hare of Briefing.com, breakthrough levels of technical support Monday means investors will search to see if another collapse comes in trade at the beginning.

The Nasdaq added 11.74 (0.43%) to 2,714.30.

Later in the day, Bernanke comments could set the tone for the afternoon of the trade session.

"It seems likely that Mr. Bernanke acknowledge in particular, the current round of soft economic data and the report of the employment of may", said O'Hare.

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FTSE opens flat interest rates calls (AFP)

London (AFP) - shares of London States it in early trade Thursday, as investors awaited the Bank of England interest rate decisions and the Central Bank European.

The benchmark FTSE 100 shares edged top up 0.04% at 5,810.91 points in the opening of markets.

The two central banks will maintain their loan rates key to low levels after political meetings, opting against increases despite the increase in the inflation caused by rising food and energy prices Thursday.

But analysts expect the ECB to report that he will soon lift its key rates.

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ECB holds rates, expected to report the rise in July (Reuters)

Frankfurt (Reuters) - the European Central Bank held interest rates Thursday and is expected to report a rise in July to address the price pressures in the euro area, where he is pressed to help pave the way for a new plan to rescue the Greece.

The ECB maintained its main rate of 1.25% refinancing, but should use forecasts of higher personal inflation, to be published in the press conference of post-policy meeting as justification a rate hike to come - probably beginning by an increase of 25 basis to 1.50% points next month.

The following press conference, President of the ECB, Jean-Claude Trichet should say that the Bank will exercise "strong vigilance" on the pressures on prices, using an expression which, in the past, reported that a rising was a month.

He used this code in March to mark rate in April increased to 1.25% 1.0% - the ECB from tightening first in two years.

"Today would have been too early for the ECB to raise rates," said Berenberg Economist Holger Schmieding. "It would have been too early after the April rate hike, he would have reported a very aggressive ECB rate position."

"We expect the ECB to report an increase in the rate of July, but leave the prospects of rate policy later deliberately open in order to not step to trigger an increase are important in the euro or spook markets in any other way", he said.

74 Economists surveyed by Reuters had expected the ECB to leave rates unchanged at 1.25%. Earlier Thursday, the Bank of England has kept interest rates unchanged at a record low of 0.5%.

Firming - cost pressures the euro-zone producer prices increased by more than expected in April and overall inflation was 2.7 per cent, well above target of 2.0% of the ECB of ceiling - mean that it is probably noted an increase in rates in July.

ECB projections are likely to be raised, both inflation and economic growth. In the last set of forecasts published in March, the ECB provides that inflation of approximately 2.3% this year and 1.7% then.

GERMAN INITIATIVE

The ECB is mired in high stakes manoeuvres between financial markets, euro area Governments and the Monetary Fund International in the thread who pays avoid the Greece becomes the insolvency State euro zone first.

Pushing the Germany for the participation of the private sector.

In a letter of 6 June at the head of the ECB, the IMF and its counterparts in the euro, German Finance Minister Wolfgang Sch?uble has required a "quantified and substantial" contribution of bondholders in any Greek new package.

The ECB has not yet been explicit, public response to this proposal, but Trichet said that he would be ready to accept a system in which financial institutions in Europe have been invited to maintain their level of outstanding credit to the Greece.

The ECB has always opposes a cut in the capital of the debt, which would mean by default and would affect the Central Bank hard because he purchased approximately 45 billion euros (66 billion dollars) of the obligations of the Greek Government since year latest to try to calm markets.

The ECB also as the Greece wants to meet its commitments to improve its financial situation and other euro-zone Governments help with assistance and has resisted pressure to help Athens by reactivating its now dormant binding-purchase program.

However, the Central Bank is warming to the idea that private investors to share the burden of saving the Greece, potentially paving the way for an exchange of debt.

Trichet as ECB President whose term expires at the end of October, will be pressed for a more detailed response to the letter of the Sch?uble to his following press conference.

"The pressure for the participation of the private sector seems now so intense that it cannot be fought," J.P. Morgan Greg Fuzesi Economist wrote in a research note.

FUNDING ASSISTANCE

While we expect an increase rate of July of the flag, the ECB will be care of ne pas withdraw support to the economy and the banking system so fast to stall recovery or jeopardize the ability of banks to address the limited liquidity.

Fears that the crisis of la debt could spread on the banking system and the fact that in the States of la salvaged off euro-zone banks remain excluded from the credit market, will likely stop the ECB reintroduce liquidity auctions.

The ECB began distributing of unlimited cash in all operations of liquidity in October 2008, after the collapse of the Investment Bank Lehman Brothers has intensified the disruption of financial markets.

Since then, he has abandoned many of six and twelve month liquidity operations and returned to auction offers for three months last year. However, he returned to full allotment for these operations quickly after the Greek crisis has intensified.

Member of the Executive Board that Lorenzo Bini Smaghi said last week that the Central Bank may not be ready to announce its plans this week, suggesting that it may make a decision of last minute at its meeting on 7 July. The ECB is committed to maintaining tenders on an unlimited basis of funding until at least July 12.

(Edited by Ruth Pitchford, Mike Peacock)

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Slide in world stocks, dollar dented by Bernanke (Reuters)

London (Reuters) - European stocks fall on Wednesday and the dollar dropped to a minimum of one month against the yen after the US Federal Reserve Chairman Ben Bernanke offered a dark vision of the economy, but did not provide advice of fresh stimulus.

Concerns about growth in the largest economy in the world have dominated financial markets, this month, and European stocks fell to their lowest levels since mid-March, global stocks of conduct 0.5 per cent below the day. (.(MIWD00000PUS)

Future equity U.S. declined by 0.4% to 1,279.00.

Bernanke acknowledged the US economy had slowed, but provided that no suggestion of the Central Bank was prepared to step in with a third round of bond purchase - a form of QE - to support the growth. The dollar fell in response.

"IS3 looks as if it has become a distant hope." "The markets had pinned much on getting another form of stimulation," said Justin Urquhart Stewart, Director at seven Investment Management.

The FTSEurofirst 300 (.)(FTEU3) high European equity index decreased by 1% to 1,093.32 points, a two-and-half month low and a sixth consecutive day of losses of plumbing.

Uncertainty about whether if European politicians will manage to identify an agreement for further financial assistance for the Greece has also impeded sentiment towards the euro area.

The euro briefly rose to a maximum of one month of $1.4696 in Asia as the dollar flanché, but later pared to $1.4648, off the coast of about 0.3 per cent for the day, hit by a slowdown in German exports and a fall in industrial production.

Greek and Portuguese debt insurance costs against default rose as investors fretted about the possibility of a Greek debt restructuring and because of the risk aversion scans markets.

German Government bunds increased approximately 13 ticks, although outperformance in the overnight US Treasury bills has seen performance on the fall of paper U.S. 10 years 9 basis points below that of the dikes, most in one year.

"Bernanke was too consensual and this is U.S. data that set the tone of here, said a trader of bonds." We're not more wood and the periphery of the euro area and the last thing that they need is a slowdown in growth. ?

Greece needs a fresh substantial assistance of the euro area to prevent the insolvency of first State currency bloc, a German newspaper reported Tuesday, quoting the Finance Minister German Wolfgang Sch?uble.

OIL SLIDE

The dollar fluctuated close to a minimum of one month less 80 yen: the Japanese currency confirmed on the risk aversion increased reflected in falls in the stock. The dollar index was also to lows a month of 73.506 struck Tuesday (.)(DXY)

Poor signs on growth in addition to the belief of market that U.S. interest rates will remain low for an extended period, while the European Central Bank is scheduled to report Thursday, it will move forward with a further increase in interest rates next month.

Brent crude fell 0.5% to $116.36 per barrel, after gaining $2.30 Tuesday. Investors are trying to determine if OPEC will raise production targets at a meeting in Vienna.

"Oil prices have been softening this morning on the back of expectations that the meeting of OPEC of today could bring an increase in production to match estimates of oil demand growth," said Jane Foley, currency analyst senior of Rabobank.

"High commodity prices are being associated with soft us growth and since EQ can be a factor behind the acceleration of prices in this sector, the Outlook for oil prices are a critical component of decisions." "of the decision makers", she added.

(Additional reporting by Nick Macfie, Brian Gorman and Kirsten Donovan; editing by Patrick Graham/Ruth Pitchford)

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Obama urged to make difficult decisions on the crisis of Greek debt (Reuters)

WASHINGTON/Athens (Reuters) - President Barack Obama Tuesday urged the countries of the euro area and the holders of bonds to make difficult decisions to contain the Greece debt crisis while International Monetary Fund said more work was needed to Athens receive his next block of rescue aid.

Obama, appearing at a joint with Chancellor press conference Germany Angela Merkel, said the United States would be favourable, but put the onus for action on Europe and the Germany called a "key leader" to resolve the crisis.

The Greece debt levels "means that the other countries of the euro area will have to provide them with a net and support", said Obama. "And frankly, people who hold Greek debt will have to make decisions, in cooperation with European countries in the euro area, on the way in which the debt is managed."

Obama and Angela Merkel, said that they at length the crisis of the Greek debt during the official visit of the German leader to Washington.

Plans are in form for a second Greece international rescue plan, with a three-year package, a value of the set of 80-100 billion euros to be ready in the next two weeks, official sources said euro area.

The plan aims to avoid a costly failure and restructuring of the Greece 340 billion euros ($499 billion) of sovereign debt, but some European politicians require that holders of bonds share part of the burden of keeping the solvent Greece.

Obama is committed to cooperate with Europe and the IMF on solutions which also give the Greece a chance to grow its economy and suggested that a Greek default could send shock waves that could damage economic recovery in the United States which showed signs of faltering.

"We believe that economic growth in America depends on the sensitive resolution of this issue." "We believe that it would be disastrous for us to see a default and uncontrolled spiral in Europe, because that could trigger a wide range of other events," said Obama.

Angela Merkel, who is under political pressure at home to avoid to be Savior to European countries who have financial difficulties, said that Germany's central role.

"We have seen that the stability of the euro as a whole is also affected if a country is in danger," she said.

"If we see clear European responsibility and we will assume this responsibility, in collaboration with the IMF."

NO NEED TO WORK

In Athens, a senior Greek official said Parliament Government planned to vote at the end of June its plan in the medium term of austerity, a condition for the new package as Athens struggles to avoid default on its debt.

But Bob Traa, senior representative of the Monetary Fund International Greece, said that the European Union needs to do more work before the Board of Trustees of the Fund could release more loans.

"I think there is a Summit in Europe, in June, where a few hard nut to be cracked.". They need to make decisions, and then go us to our Board and pay in early July, "he said at a banking Conference.

A team of IMF, the EU and the European Central Bank concluded an agreement Friday under which Athens impose more austerity and more rapid privatization to reduce its budget deficit.

The Greece has accepted a 110 billion euro ($160 billion) bailout with the EU and the IMF a year ago. But this implies that Athens could resume loans on the market early in 2012, which is not currently possible as yields on Greek debt are sky high in the secondary market.

Details of the new deal to replace the May 2010 rescue must still be resolved, but it involves the financing needs Greece is covered by a mixture of new EU loans and the IMF, deficit compressions, including increases in taxes and asset sales and a "voluntary" participation by the private creditors.

It is possible that creditors agree to buy new Greek bonds when the obligations that they are currently taking into mature, meaning Athens would step find cash for reimbursement.

Slovakia said on Tuesday that he would not approve new aid for the Greece unless private investors bore part of the burden.

But the rating agency Moody said that it is difficult to see how a reversal of the private sector of Greek debt could be truly voluntary, and that such an approach would therefore be likely event of credit - a decision which would have an impact on the market a large scope as places paid financial instruments used to take out insurance against failure to trigger.

Bart Oosterveld, Director General of Moody's sovereign risk group, "it is hard to imagine, in the current circumstances, that people would voluntarily do this", said to journalists in Paris. "Our definition by default provides that, if something is voluntary, it must be truly voluntary..." Most likely not that would be a credit in our event. ?

Traa the IMF has warned that a major restructuring of Greek debt would create incalculable problems in the euro area but indicated that the Fund was open to other solutions.

"Extending the terms of payment, for example loans of partners in the euro zone and the IMF, is a reasonable thing to believe because we have right of depreciation at the end of the program.". "It is a technical issue, that we can think," he said.

($ 1 =. (Euro 6845)

(Other reports by Andreas Rinke, Lefteris Papadimas Ingrid Melander, George Georgiopoulos and Renee Maltezou; writing by David Lawder and David Stamp;) (Editing by Eric Walsh)

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France arguably Greek rollover if no credit event (Reuters)

PARIS (Reuters) - France could return a reversal of the private sector of Greek debt as part of a new EU-IMF rescue plan, if it can find a voluntary formula to avoid more damage in the euro area markets say sources familiar with the thinking of Government.

Euro-zone Governments have edged closer to a compromise this week on a second Greek rescue program, with an increase in official financing, whereby private creditors would be called upon to share their sovereign debt obligations more updated.

President Nicolas Sarkozy softened opposition total earlier Paris to any form of restructuring, saying after the G8 Summit, in Deauville on 27 May that he was different from the restructuring of the search for ways for private investors to share the burden of debt.

French sources said that he wanted to help the German Chancellor Angela Merkel, who has need to appease public anger on the signing of another cheque for the Greece showing that the private sector is sharing the risk.

But France, partner of Berlin in the leaders of the European institutions, has quietly reacted to the proposal of the Minister of German finance Wolfgang Sch?uble of an exchange of Greek debt to extend the deadlines in 7 years and call for a "significant contribution" from creditors.

"The French line has always been to deny the restructuring of the debt of the Greece... regardless of what conditions are proposed," Budget Minister Fran?ois Baroin said Wednesday.

In private and public sector, sources said that Paris was trying to temper the line more lasts from Berlin on the participation of the private sector, a Summit of the leaders of the European Union of 23-24 June, which should accept a new package for the Greece.

Sarkozy can fly in Germany to meet Angela Merkel at the end of next week, a French official source told Reuters.

The sources all spoke on condition of anonymity because of the sensitivity of negotiations.

Officials say that France is resolutely opposed to any move that would constitute a "credit event" in the eyes of investors, triggering payment of Credit Default Swaps used to ensure debt and sending shock waves through the financial system of Europe.

The body of the ISDA derivatives industry, who has the last word or a credit event has occurred, said a voluntary agreement to roll over Greek debt holdings would not usually trigger payment of SADC.

However, credit rating agencies said that they would be likely to classify a turnaround as an exchange of debt distress and downgrade selective rating of the Greece 'default '. Which could affect the European Central Bank's willingness to accept debt Greek as collateral in its liquidity operations.

"There are a number of options on a table and negotiations are not over yet, said a source in contact with the Ministry of finance." A Greek debt rescheduling normally trigger a default value, then that would not be a rollover. ?

NOT QUITE VOLUNTARY

The French are determined to avoid any action which could damage not only creditors of Greece, its financial sector and the economy, but also have an impact on the solvency of the Ireland and the Portugal and other euro-zone countries under stress.

As an alternative to an exchange of debt, French sources said that banks could be persuaded to enter into a voluntary agreement to refinance their Greek debt as it comes of age. However, this would mean official creditors pay more the second rescue plan.

After the Germans, the French banks are second largest foreign holders of Greek debt. BIS figures published this week showed that at the end of 2010, German banks 23 billion euros in Greek bonds and the French banks 15 billion euros.

The ECB President, Jean-Claude Trichet, former Director of the Council of the French Treasury, appeared to open the door to a reversal earlier this week by saying that he would accept a regime in which banks were invited to voluntarily maintain their level of exposure to the Greece.

But he restricted any such scope Thursday by saying that the ECB wanted to avoid "any event credit and selective default."

To encourage banks to buy the new bonds more long term, the ECB could accept as guarantee, while the former ones could gradually cease to be accepted.

"The is can we try to convince the agencies rating and the agreement to avoid triggering a credit event, the packaging", said the source in contact with the Ministry of finance.

Bart Oosterveld, head of sovereign risk of Moody group, said on a trip to Paris this week that it is difficult to see how such an agreement would be truly voluntary, given the vagaries of 340 billion euros from the Greek debt. If there was a suggestion of coercion probably would cause a failure, he said.

Jean-Paul Chifflet, CEO of heavyweight French bank Credit Agricole, among the most exposed in Europe in the Greece, said on Wednesday, he was reportedly favour an extension of the deadlines of the sovereign debt of the Greece.

Another senior banker, speaking on condition of anonymity, said French banks had already given the Government committed last year, when the first Greek bailout, to maintain their exposure to the Greece.

"We have been invited to a meeting with Christine Lagarde and it very clearly that it was expecting the French banks after the Government had to support them in these critical times in 2008-2009, to play the game on the Greece" said.

"It was not voluntary," he said, adding that German banks had made a similar commitment.

(Reported by Paul Taylor, Yann Le Guernigou and Emmanuel Jarry; additional editing by Paul Taylor)

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The economic recovery in the euro area shows signs of slowdown (AP)

LONDON - items of evidence emerged that the eurozone economic recovery may be slow in the second quarter after a way unexpected strong performance during the first three months of the year.

Although Eurostat, Statistical Office of the EU, confirmed Wednesday its previous estimates that the euro zone 17 countries rose 0.8% in the first quarter, analysts say the breakdown of the figures for slower growth point.

They say a strong increase in investment and construction output were unlikely to continue in the second quarter.

During this time, the numbers of industrial production of the show Germany falls a monthly 0.6% in April, which also indicates that more big euro-zone economy may slow in the second quarter.

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Prada plans of introduction on the stock exchange of Hong Kong to raise up to $2 billion (AP)

HONG KONG - Italian fashion house Prada SpA provides to increase to $ 2.6 billion in a list on the stock exchange of Hong Kong, according to a person familiar with the deal, joining other tributary foreign companies on China's rising fortunes.

Prada plans to sell some 423.3 million shares in the range from 36.50 to 48 Hong Kong dollars, according to the person, who spoke condition of anonymity because they were not allowed to comment officially.

If the shares are sold in the upper part of the indicative price range, Prada would raise HK 20.3 billion ($2.6 billion). The price will be finalized on June 17, and the shares will begin trading on June 24, the person said.

The company was founded in 1913 in Milan by Mario Prada and began the manufacture of leather, trunks and Crystal bags, but his modern designs have helped become a symbol of haute couture. He now holds trademarks Miu Miu, the Church and footwear of the car.

Private enterprise, with the President Miuccia Prada and Patrizio Bertelli CEO each 33.2% owner. Miuccia Prada brother Alberto Prada and sister Marina Prada each own 14.2%. Their issues is held by a holding company. The remaining 5.1% is owned by the Italian bank Intesa Sanpaolo.

Prada is the latest in a string of businesses which are public in Hong Kong, attracted by the rise of the economy of its neighbour mass of China is hitting the millionaires and billionaires at a rapid clip. Hong Kong is a Chinese territory but has its own currency and the legal system.

According to The Hurun Report, Chinese version of the Forbes rich list, the number of people with a value of at least 10 million Yuan ($1.5 million) increased by approximately 10% of 960 000 people by 2011.

Newly rich from China spend their money on a wide range of luxury products, including designer clothing, flashy cars, and expensive apartments. Chantiers naval and aircraft officials predict that rich Chinese will propel sales of superyachts and jets private, while Chinese collectors have helped to turn Hong Kong into the third largest auction Centre of the world.

In a prelisting document filed with the stock exchange of Hong Kong, said Prada is waiting for Asia region the most rapid growth of the industry of luxury and China for the growth of the market. Over the next five years, China will become the third largest market for sales of luxury in the world, according to market research.

China's strong economic growth, increased urbanization and increased spending by the wealthy will result in annual growth of sales 15 to 20 percent in the market of luxury now until 2014, the company forecast.

Prada plans to open 70 stores in Asia by 2014, with 30 of those in China. It will also open 30 that Miu Miu stores in Asia during the same time, adding to 25 currently.

"We believe further growth is possible by the continued growth of the Chinese economy, which allows to continue our penetration in Chinese cities," said the document.

Asia represents a third euros approximately of Prada $ 2 billion ($2.9 billion) in sales for the year ending January 31, second only in Europe, who had 42 percent.

Prada is a parade of fashion and presentation for investors Tuesday night in Hong Kong that she prepares for the initial public offering.

The company also seeks to develop in the Middle East, South America and Eastern Europe, according to the document from.

Prada had discussed going public in the past, but the move was delayed after the global financial crisis 2008 sent markets tumbling.

Swiss products trader Glencore and manufacturer of Samsonite suitcases were also listed in Hong Kong this year. Luxury coach handbag manufacturer provides a list in Hong Kong more later this year to raise awareness of its brand in Asia.

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Blair calls for European leader elected (AFP)

London (AFP) - former Prime Minister Tony Blair Thursday warned the EU that elle should elect a leader or face to be left in place by the emerging countries.

The Chief of the newspaper The Times, said former Labour party unless the adopted block "strong, collective leadership and direction", he eventually fled in the wake of China, the India and the Brazil.

Blair shrugged off public fears about more passing control in the hands of the institutions of the EU and called for a change in the perception of the role of the block of one as a peacemaker to one as a world superpower.

"For Europe, the essential thing is to understand that the only way you will get support for Europe today is not on the basis of a sort of post-war considers that the EU is necessary for peace," he said.

"For the generation of my children, it is just a bizarre argument." They don? t see as a real threat.

"What they can completely understand, is that in a particular world in which China will become the dominant power of the 21st century, it is reasonable for Europe to combine together, to use its collective weight to achieve the influence", he added.

The former leader source of discord, which was once considered a possible candidate for the position of President of the European Council believes that the responsibility of an elected leader given concerns about concentration of power.

"If you want to have a debate on the direction of Europe it seems to me very difficult to have Europe-wide, except if you have a few ways by which people choose something that is at the European level, in the nature"he says."

"Us have weight and influence a country like Britain needs unless we are part of this European power thus", he added.

Radical proposal for Blair, who admits has "no chance of being accepted at the present time", would see a leader who represents the interests of the EU on the world stage while at the same time chairs the union of the Member States.

Blair urged the completion of the single market and common policies on energy, defence, immigration and organised crime.

With regard to the "Spring of Arabic" uprisings courses, the Middle East Envoy warned that deeply rooted change required to implement to ensure that the disorder is not diverted by extremists.

"This is a situation in which you certainly need a plan," he said.

"If you get a situation where people get the right to vote, but no other change, no job, and then two or three years down the other line say that Islam is the answer." "If our task is not step to be spectators," he warned.

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FTSE opens flat interest rates calls (AFP)

London (AFP) - shares of London States it in early trade Thursday, as investors awaited the Bank of England interest rate decisions and the Central Bank European.

The benchmark FTSE 100 shares edged top up 0.04% at 5,810.91 points in the opening of markets.

The two central banks will maintain their loan rates key to low levels after political meetings, opting against increases despite the increase in the inflation caused by rising food and energy prices Thursday.

But analysts expect the ECB to report that he will soon lift its key rates.

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Eyes of Europe role of the private sector in Greek debt deal (Reuters)

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BERLIN (Reuters) - The euro zone edged closer on Wednesday to a compromise on a second Greek bailout package under which private creditors would be asked to swap their sovereign debt holdings for bonds with longer maturities.

Several euro zone bankers, including the head of French heavyweight Credit Agricole (CAGR.)(PA), said they would support a maturity extension, a move that would not reduce Greece's massive debt burden purpose could buy it more time to meet its fiscal targets and avoid a harsher restructuring.

The European Central Bank, which has argued loudly against any form of debt restructuring, may also be warming to the idea of private sector involvement if a cut in the main of Greece's debt - a "haircut" - can be avoided.

Greece sealed a 110 billion euro aid-for-austerity deal a year ago but has failed to restore confidence in its finance and a new package is in the works which could total 80-100 billion euros to cover Athens' funding needs through 2014.

German Finance Minister Wolfgang Schaeuble told coalition members of parliament that Greece needed an additional 90 billion euros in its second rescue package that would get the country through 2014, a coalition source told Reuters.

An EU/IMF report on Greece's fiscal progress which was obtained by Reuters on Wednesday underscored the depth of the country's woes. The "troika" of institutions, which includes the European Commission and the ECB slashed its forecasts for the Greek economy, forecasting a contraction of 3.8 percent this year and meager growth of 0.6 percent in 2012.

"After a strong start in the summer of 2010, reform implementation came to a standstill in recent quarters," the report said, warning of political implementation risks.

"A reinvigoration is necessary to prevent the fiscal deficit from getting entrenched at unsustainable levels, but also to reach a critical mass of structural reforms which will support the recovery."

"SUBSTANTIAL CONTRIBUTION"

European economic and monetary affairs commissioner Olli Rehn told reporters in Koenigstein that the euro zone held a teleconference on the Greek situation on Wednesday evening.

"It was underlined that it is essential that Greece meets its fiscal targets for this year with concrete measures that have been agreed..." Greece is now committed to meeting targets. "it has specified concrete measures," he said and added extending debt maturities was part of the discussion.

Rehn, speaking on the sidelines of Financial Times Deutschland Banking Day, also said the euro zone must avoid triggering a so-called credit event as it hammers out a new deal on Greek debt.

"We have been discussing a Vienna style initiative and in that context we have also examined the feasibility of a voluntary debt rescheduling or variety on the condition that it will not create a credit event," Rehn said.

Whether and how to involve the banks, hedge funds and other private holders of Greek debt in a new aid package has been hotly debated for weeks, with some officials worrying such a step could unleash contagion that envelops new countries like Spain, with disastrous consequences for the currency bloc.

On Wednesday, France said it rejected any restructuring of Greece's debt and would not change its stance.

But the German government, worried about a backlash from angry taxpayers and a possible rebellion in parliament, has been pushing hard for some form of private creditor involvement.

In a June 6 letter sent to the heads of the European Central Bank, International Monetary Fund and his euro area counterparts, Schaeuble application a "quantified and substantial" contribution from bondholders as part of any new Greek package.

"such a result can best be reached through a bond swap leading to a prolongation of the outstanding Greek sovereign bonds by seven years," Schaeuble wrote in the letter, a copy of which was seen by Reuters.

It was sent two weeks before a June 23-24 EU summit, at which the bloc's leaders are expected to put the finishing keys on the new deal for Greece.

Such a swap would amount to a restructuring of Greece's privately held debt, even if it was done on a voluntary basis, and ratings agencies have warned that they would view it as coercive and classify it as a default.

"If they do anything like Schaeuble is suggesting then the ratings agencies will smash (Greece) and then they will move on and smash Portugal and Ireland," one trader said, naming the other two countries that have required EU/IMF bailouts.

Reflecting those fears, the cost of insuring Greek debt against default rose as did the premium investors demand to hold Greek, Irish and Portuguese debt instead of German benchmarks.

Goal David Geen, general counsel of derivatives industry body ISDA, said a debt exchange that pushed out maturities would typically not trigger payment of credit default swaps and that could make it palatable for policymakers.

BANKS OPEN TO MATURITY EXTENSION

The stance of the ECB on private sector involvement will be crucial in any deal.

The central bank is believed to be examining a debt swap scenario in which credit rating agencies would declare Greece in limited or "selective" default for a short period of time.

That would probably force it to impose a ban on the use of Greek debt as collateral in its money market operations, but the impact on the Greek banking system could be minimized through emergency liquidity measures until Greece was taken off limited default status.

The ECB could give investors an incentive to participate in a swap by removing the old Greek bonds from its list of eligible collateral. HAD officials are also discussing sweeteners.

Jean-Paul Chifflet, the head of French bank Credit Agricole, told Reuters in Milan that he expected authorities to broach the possibility of a maturity extension with him soon and voiced support for the idea.

"If we lighten Greece's sovereign debt load it should benefit the Greek economy and therefore the actors of the Greek economy," said Chifflet. "I am very much in favor of this."

Several bankers at a conference in Koenigstein, Germany also said they expected a deal of this sort.

"banks and creditors must participate," said Karl-Georg Altenburg, JP Morgan's senior country officer for Germany.

A large number of the big German banks that hold Greek debt are partly owned by the government, meaning Berlin would have direct influence over their decisions on a debt swap.

Bank for International Settlements (BIS) data published this week showed German and French banks hold the most Greek sovereign debt of all foreign institutions, with exposure of 23 billion and 15 billion euros, respectively, at the end of 2010.

Beyond domestic considerations, Berlin may be worried that if private creditors do not participate in the new bailout, the share of debt owned by official creditors - euro area governments, the ECB and IMF - will rise to the point where a future restructuring for the private sector accomplishes little in terms of returning Greece to a sustainable debt path.

Greece's debt burden stands close to 340 billion euros - or roughly 150 percent of its gross domestic product (GDP).

(Additional reporting by Annika Breidthardt in Berlin, Paul Carrel and Marc Jones in Frankfurt, William James in London)

(Writing by Noah Barkin, editing by Mike Peacock/Ruth Pitchford)

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Surprise U.S. trade figures gave stocks a lift (AP)

LONDON - Stocks recovered Thursday as a narrowing of surprise in the US trade deficit helped to consolidate investor sentiment after a week streak of losses.

It was clear relief in the markets that the US trade deficit unexpectedly fell to 43.7 billion in April of $ 56.8 billion the previous month that exports reached a record level and auto imports plunged.

Expectation in the markets was that the deficit was expanding at just below $ 49 billion, providing another cause of concern about the economic recovery in the United States.

Trade figures are important because a decrease in the deficit in the second quarter would contribute to global economic growth.

"The week has been shaping be dull at best, with markets of shares worldwide apparently unable to find gears forward," said Yusuf Heusen, trader selling experienced at IG Index. "The US trade deficit data published gave investors excuse to soak their feet in the water.".

In Europe, the FTSE index 100 shares main Close up 0.8 percent to 5,856.34 while the CAC 40 in France rose 1.1% to 3,878.65. Germany DAX fared even better, trade 1.4% higher than 7,159.66.

On Wall Street, the Dow Jones industrial average was up 0.8% at 12,140 around noon, New York City time, while the broader Standard & Poor 500 index increased 0.7% to 1,289.

The euro, however, was retired after the President of the European Central Bank has failed to provide a clear indication that interest rates could be traversed more beyond the planned increase next month.

By times of London late afternoon, the euro was trading down 0.5% on the day at $1.4517.

Although the ECB kept its main interest rate unchanged at 1.25% Thursday, its President, Jean-Claude Trichet reported that a further rate rise was likely in July as the Bank seeks to get inflation to target.

Trichet is set to retire in October, and some analysts believe that the Bank could expect that Mario Draghi successor takes the head to increase rates again.

"Comments from Trichet increase the probability of higher ECB rates in July but I think it could be up to Draghi in November, said Neil MacKinnon, strategist, global macro to VTB Capital."

In addition, the Bank of England has chosen - also widely expected - to maintain its wait 0.5% interest rate, even if inflation is running at double objective 2 per cent. The move has had little market impact and the pound sterling was more or less unchanged trade agenda to $1.6386.

Earlier in Asia, index Nikkei 225 of the closed Japan 0.2 percent higher to 9,467.15 while ABN Korea South fell by 0.6% to 2,071.42, and Hong Kong Hang Seng lost 0.2% to 22,609.83.

Chinese 苏童 shares erased gains from the day. The reference index of Shanghai Composite Index sank 1.7 for cent to 2,703.35 while the Shenzhen Composite Index smaller China, second Exchange lost 2.1% to 1,113.02.

The price of oil at the same time continued his progression after OPEC left surprisingly production levels unchanged Wednesday.

Oil reference for July delivery was up to US $70 cents to 101,44 per barrel in electronic trade on the New York Mercantile Exchange.

____

Pamela Sampson in Bangkok contributed to this report.

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Blog of the attacks of the Stocks of China Slam (company of the investor daily)

Some Chinese companies listed in the U.S. these days are like ducks in a shooting gallery.

Bloggers and financial Web sites take to target a growing number of recent IPOs Chinese for errors of accounting or outright fraud involving senior executives of the page.

Friday, shares registered in Toronto from Sino - Forest plunged 64% after that short-seller blogger site muddywatersresearch.com accused the operator of forest planting fraudulently exaggerate its assets of forestry. Which sparked a new round of selling in a variety of U.S. listed Chinese companies.

Sino-Forest accused Muddy Waters of defamation Monday. Muddy Waters, who has already contributed to exposing the problems China MediaExpress and Rino International, which have since been removed after virtually wipe shareholders, is not backing vocals.

Blogger attacks led to the Securities and Exchange Commission probes. U.S. exchanges have frozen or removed from the list of shares on a dozen companies focused on China since March in SEC investigations.

Many are small caps or microcaps merge with companies shell here to speak to the public via lists of "backdoor". The shots online often mixes with short-selling, causing these shares to certain days despite the absence of official news of the reservoir. The ghosts of investors and investment of cloud image.

There is big from the effects of training for investors since will keep surging U.S. IPOs by Chinese companies and these critics online will continue to the business impact.

Blogger and other sites making the charges include SeekingAlpha and research of lemon.

"We know (these bloggers) ne font not true, fair judicial investigations when they come out with these reports." "There are a lot of things (about Chinese companies) which is false, misleading, and the creation of a lot of negative feelings in the market," said Mitchell Nussbaum, President of the practice of emerging markets of New York law firm Loeb & Loeb, who represents Chinese companies at the United States "" on the other hand, it appears that some - but far from all these companies - have assume of Board of Auditors to a certain extent. ""

Bloggers Defiant

Bloggers are beaming by their rifles. "No allegation made on (alfredlittle.com) have never proven as false by the targeted companies," blogger Alfred little said in an e-mail interview. "So, what alfredlittle.com offers investors is a useful service." "And Yes, those who have quick access to the reports made death short-circuit updating phony stocks," said little, whose positions appear on SeekingAlpha.

The controversy is stirring calls for more reliable data of business Chinese. Late bilateral in Washington in may, US officials and China negotiations said they are seeking to tighten up the supervision of the corporate accounting "that provide services for audit of public enterprises in both countries."

Other targets of recent bloggers include Deer consumer products (NASDAQ: deer - News) and fertilizer and food maker Yongye International (NASDAQ: YONG - News).

On 23 May, the SEC opened an investigation of accounting Longtop Financial Technologies China (NYSE: LFT - News) after a search of lemon report in question his "non-conventional staffing model" stock gifts to employees and friends of the founder and alleged that Longtop had "margins supersized". Deloitte Touche Tohmatsu leaves also as auditor after accusing Longtop frameworks of collusion with its banks to hide its assets of real money. Longtop shares were halted since May 16.

"I don't work in concert with (shorts), I am a short-seller. "I'm a sell-side analyst," says founder of lemon left Andrew, who said he is "put out truthful information to the market".

Why some Chinese companies run defeat accounting errors after registration to the United States? Analysts say there are cases of deliberate fault. But David Chao, co-founder of DCM, a VC firm he active in China, said venture capitalist that some players strive to respect the date limit to comply with Sarbanes-Oxley accounting rules. Chinese companies have one year to comply with U.S. standards after the list of exhibits. But some found the costs and other difficult requirements.

Another issue is that companies Chinese which checks the books of Chinese firms U.S. appearing on the checklist and partner with the U.S. giant as KPMG are not subject to inspections by the Public Accounting Oversight Board of United States, as required under the Sarbanes-Oxley Act.

Fraud akin to Longtop, once a highly rated company presented by the IBD, have raised questions on the same well known businesses registered in the U.S.. Cabinet of the King of Fund hedge John Paulson owned 14% of the Sino-Forest, April 29. President of the ex - AIG Hank Greenberg have invested in the MediaExpress of la China.

Like many small Chinese stocks, investors are simply to output.

Janet Stites, editor of China knowledge, a newsletter online which allows to follow Chinese commercial enterprises on us financial markets, said a growing number of Chinese companies are considering legal action against bloggers.

Some are already in court. Deer consumer products brings a New York vs blogger trial, saying: it is part of a scheme to depress its stock exchange.

Sino clean energy (NASDAQ: EICS - News), a producer of coal-water slurry fuel, also said in early May that he goes for blog comments that he made about its sales and production figures.

Little fires back via email: "If the allegations were false, they should be easy to refute." Instead, the pattern that we have seen is the use of corporations to denials of coverage and the attacks, physical and moral. ?

Loeb & Loeb Nussbaum, said it will be more difficult to cook books going forward given the "conscience" of U.S. business audit.

In a context of blogger attacks and reporting errors mounted by companies in China, analysts say diligence is the key.

"Investors have to be very careful." "each company will not be like Baidu," said Chao of DCM.

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Summary box: mixed economic data tire stocks down (AP)

MIXED: A survey published by the Federal Reserve showed that the pace of recovery is uneven across the country. While seven of the 12 Fed districts reported stable earnings, the economy down in the regions of New York, Philadelphia, Atlanta and Chicago.

ENERGY UP: Energy companies were among the stocks little to gain largely. Oil companies like Exxon Mobil Corp., which won 1 percent increased after oil over $ 100 per barrel.

Indexes: the Standard and Poor 500 5.38 of lost, or 0.4%, to 1,279.56. The Dow Jones index rose from 21.87 at 12,048.94. The Nasdaq slipped 26.18 at 2,675.38.

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The euro zone starts talks on the distribution of assistance in cash for the Greece (AFP)

Brussels (AFP) - the Finance Ministers launched formal negotiations Wednesday by telephone about the financial "modalities" of a new Greek rescue plan that said a euro-zone EU diplomat will be high EUR 90 billion.

The head of the Ministerial Eurogroup, Luxembourg Prime Minister Jean-Claude Juncker, said the Ministers "had a first Exchange of views on the modalities for financing the Greece adjustment program" during a conference call.

The talks followed the conclusion of a mission of the European Union and the International Monetary Fund research on the need for new funding and assistance prepared the groundwork for dinner talks planned between the Finance Ministers of the EU June 14 in the period preceding a Summit 23-24 June by national leaders.

Juncker has set the tone for the intermediate days when he called in his statement to a "stimulus" from the Greek strives to reduce spending, sell property and improve the collection of taxes, following the analysis of the Ministers of the revision of the plan to rescue EU and IMF.

"We recognize the significant progress achieved so far by the Greek authorities, in particular with regard to fiscal consolidation, while a revival of structural reforms more broad and budget remains necessary," said Juncker.

The Greece received a rescue of 110 billion euro ($160 billion) the year, but with the debts of the State rose by some 350 billion euros and a deeper that the recession expected reduce the impact of sharp, cutting spending, the second rescue plan is considered inevitable.

The Finance Ministers of 16 other States of the euro area said Juncker "share the view expressed by the tro?ka (EU - IMF mission)"that the strict help to restore the financial viability, to preserve the competitiveness of stability and financial boost.""

It welcomes the commitment of the Greek Government in a privatization program, originally aimed at raising 50 billion euros by 2015, but said the diplomat should contribute "third" of the new rescue plan or $ 30 billion.

Another third would come from the eurozone and IMF loans, although it is not clear if it is ready to be paid under the number a rescue plan.

Crucial for the moment, a similar amount is also planned to "rollover" of the debt owed to private creditors, the diplomat noted, although Juncker did not in his statement on how the financial terms it called in were ventilated, involving some figures on a second rescue plan.

"We stressed the importance of the Greece cross-party support," Juncker added, after a political leader of the Greek opposition met with senior leaders of the EU in Brussels.

"The adjustment of the Greek economy can succeed only when all relevant political parties subscribe the objectives and the main parameters of the program."

In a letter sent to the partners of the zone euro has also made public Wednesday, the German Finance Minister Wolfgang Sch?uble said private banks must give up collecting Greek public debt for seven years as a condition for the new financial aid to Athens.

An agreement could be reached "by" an exchange of link leading to an extension of Greek sovereign bonds in circulation by seven years.

Taxpayers in several European countries such as the Austria, Finland, Germany, the Netherlands and the Slovakia are strongly opposed by most for the Greece.

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