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The 110 million euros, with European banks may need to strengthen their capital should include some 46 billion already pledged to Ireland, Greece and Portugal to their credit, officials said Sunday from European sources.

At a meeting of European finance ministers on Saturday, the president of the new European Banking Authority (BEA) said the country under aid program accounted for 38% of the overall deficit in the European banking system capital, it was estimated at 110 billion euros, it was told Reuters.

Another source confirmed the European project to include 46 billion pledged by the European Union and the International Monetary Fund for Ireland, Greece and Portugal for their banks, part of which has already been paid in this recapitalization plan.

"All the needs of banks of all countries in assistance is taken into account," it was said.

The subject has yet to be discussed again before the EU summit scheduled for Wednesday but the markets, who want to see European banks have as much capital to withstand the current crisis could react badly to such ads.

It would also have the effect of a large share of the burden of the recapitalization of banks Spanish, Italian and French, which, according to one source, account for 45% of the capital needs identified in the EU in recent inspections.

"The problem is that when you view the numbers shock, it is believed that the money is there," said one source, referring to the reluctance of European central bankers to publicly display the goals of recapitalization."But governments have no money," says one.

At Saturday's meeting, the ministers prepared a document delivered Sunday to Heads of State and Government with options for banks to grant new state guarantees to facilitate their search for financing in markets very tight.

Among the models examined, which will complement the movement of recapitalization, one that would be to coordinate government guarantees under the auspices of the ABE, has a good chance of being approved.

"At this stage, the preferred model", it was insured.

The National Assembly on Friday passed two taxes on soft drinks, including one on drinks with sweeteners. And despite a lobbying "scary" Coca-Cola, who may have done too much. The fee for sodas sweetened products will bring 240 million euros, the lights on 40 million.

Coca-Cola has lost. The National Assembly approved Friday the establishment of a tax on soft drinks, the amount will be doubled from the initial project of the government. And it also introduced a tax on beverages containing artificial sweeteners, the lights, against which stood the giant soft drinks. The tax on soda, two cents per can, bring 240 million euros, half of which would finance the reduction of social security in agriculture, and the sweeteners on 40 million euros, said the Minister of Budget, Valérie Pécresse.

It is not Coca-Cola because of trying to oppose it by conducting intensive lobbying. The point that the UMP Bernard Reynes, the source of the amendment proposing to tax the lights, was pessimistic about the chances to see him go. "And I will not deny that it bothers me that the creations of law are dependent groups such as Coca" he admitted even to the expansion. Com shortly before the vote.

"One of lobbying juggernaut"

Drinks lights are in fact 60% of the revenue of Coca-Cola. Well above its competitors. Where the offensive of World No. 1 soft drink for the desired version of the tax. Mailings burst, increase in phone calls and requests for appointments, Bernard Reynes supports even have really been "harassed" by the group. "I had an unacceptable pressure. It is normal for multinationals discuss with MPs.But not how it happened. "

And it is far from alone in being surprised by the firepower deployed by Coca. Many players linked to the Assembly (lobbyists, MPs and their families) show a lobbying "huge", "scary", "pressing as is not permitted" and "the strength of a tank "the giant soft drink with parliamentarians and government.

"They call everybody! We have received phone calls from friends, Bercy for example, who did not care at all about this, but had been called for by Coca they are trying to convince us of abandon the project, "said a member of the cabinet of Jean Dionis du Sejour, Vice President (New Centre) of the Committee on Economic Affairs. Until the discreet meeting between Nicolas Sarkozy and the President of Coca-Cola Europe, Dominique Reiniche, revealed Wednesday by Challenge.fr.

Promises to invest in France, threatens to leave, may give an anti-American image that may scare away other groups … This mixture of "caresses and threats" Coca has been confirmed by several sources MPs we interviewed. In the end, however, the U.S. group may have done too much … "If there is one lesson it is that of the lobbying juggernaut does not work," says Paul Boury, subject matter expert.

A "catastrophe", really?

The action of Coca has not been completely ineffective. The final version of the tax on the lights was indeed amputated 80 million euros compared to the original text. "But that Coke does not care, provides a lobbyist familiar with the matter on condition of anonymity. The group was even willing to pay 250 million euros to the government to abandon the measure.The principle of a tax on lights is a national disaster for them. It stigmatizes products. And a tax, especially in France, is always liable to change. "

The battle is not yet definitively lost to Coke. Valérie Pécresse, who did not support the expansion of the tax, received two separate taxes are adopted. This compromise, said the minister, can "legally secure the device", separating the tax on sodas "we know that the law is indisputable" and that on sweetened beverages, which it has less chance of pass "on the Constitutional Council." And it might explain the legal complaint "arbitrary tax" because not related to a vital public interest clearly identified.In fact, the argument of the national association of food industries, which already qualifies tax sweeteners to "unconstitutional". According to them, in fact, taxing sodas lights rather than any product has "no motivation."

The French banking regulator warned Dexia Credit Local (DCL) in August 2010 that its liquidity position did not meet minimum requirements and that it planned to put the financing subsidiary of Dexia local under "special supervision" and to appoint a controller.

Already recapitalized in 2008 to 6 billion euros not the French public authorities, Belgian and Luxembourg, Dexia announced the beginning of October a new rescue plan led by the three countries.

The Prudential Control Authority (ACP) has sent two letters to Dexia Credit Local in the summer of 2010, copies of which were sent Thursday to Reuters by Georges Gilkinet, MP Belgian French-speaking Green party Ecolo.

"The College (CPA) found that the liquidity position of DCL, which does not comply with the regulations to the deadline of 30 June 2010 and also presents the risk of deterioration was particularly fragile," writing to the regulator DCL August 16, 2010.

"Under these conditions, it intends to place the institution under special supervision."

More detail in a letter sent Sept. 17, 2010, the CPA advanced many shortcomings in the management of Dexia Credit Local.

"In general, DCL is not or has not been always able to accurately determine the parameters of risk instruments markets," it said in the second post.

"The efforts of DCL and Dexia since late 2008 to address the weaknesses identified by internal audit group and this inspection mission are still insufficient to significantly reduce the risks, including counterparty and liquidity, and comply with prudential regulations and accounting, "the governor continued.

CONTROL OPERATIONS failing markets

He also noted the lack of control of Dexia Credit Local of its foreign subsidiaries' consolidated supervision of market transactions was deficient at the time of the survey, DCL not knowing the transactions initiated by its major subsidiaries including Spanish and German."

For the ACP, Dexia Credit Local had failed to mid-2010 to regain control of the risks taken by its various subsidiaries after its first rescue in 2008.

"This situation, similar to that already encountered in 2008 on the activities of the Slovak subsidiary, is not admissible in view of the notional amounts involved and the risks involved," he is also indicated in the report, in which the ACP doubt on the ability of Dexia to "effectively control the activities of its subsidiaries and branches."

A spokesman for the Prudential Control Authority declined to comment.

"This is a report on the consequences of the first banking crisis, we can not correct the story in a snap," Pierre Mariani defended himself in the newspaper De Standaard Dutch, noting that 'no sanctions had been taken against DCL.

A Dexia spokesman declined to comment further.

Dexia has given Thursday launched the final phase of its dismantling by validating the sale of subsidiaries whose Franco-Belgian bank must dispose as part of its rescue plan October 10.

First victim of bank scale of the crisis of sovereign debt in the euro area, Dexia should exist only as a holding company listed in Brussels which will combine the activities of financial services to the public sector in France, Spain, Italy and Germany.

Recapitalized on the basis of 9.9 euros per share in 2008, the Dexia share is worth more today than 0.61 euro. She lost three quarters of its value since the beginning of the year after falling nearly 39% in 2010.

The warning from Moody's Aaa rating on the of France poses new uncertainties about how to resolve the debt crisis in the euro area, five days a crucial summit for the future of the single currency, say the Analysts.

But if the decision of the rating agency to assess the stable outlook of the French financial risk rating to weigh on confidence vis-à-vis the currency area in the coming weeks, there is little chance that the risks associated materialize in the short term.

As for the long term, permanent mechanism for stability, which could take effect in July 2012, will shield the single currency which will have a solid capital structure and legal personality, making it impervious to turmoil on the notes of the national constituent countries.

Moody's justified its decision Monday night focusing on the risks to French growth and the potential costs of bank recapitalization and support to troubled countries in the euro area.

The news comes at the worst time when the leaders of the euro area, meeting Sunday in Brussels to agree on a strategy for Greece and their banks, already suffering from a lack of confidence from investors after almost two years of delay and 14 peaks that have failed to stem the crisis in Greece.

The risk premium associated with the French bonds jumped to a record since the inception of the euro after this warning, which now places a sword of Damocles over the Franco-German couple, the backbone of the currency area and the ultimate guarantor its stability.

Franco-German

The consequences could be felt this week and affect the contours of the European plan to reduce Greece's debt consistently, reinforcing the strength of the euro area banks by recapitalizing and maximize "the firepower of the fund to support the euro area (EFSF) by using leverage.

"The French are clearly vulnerable.It becomes difficult for them to talk on equal terms with Angela Merkel in terms of spreads (the spread between yields on French and German-Ed), "said Ludovic Subran, chief economist at Euler Hermes.

Philippe Waechter, director of economic research at Natixis Asset Management, for its part considers that the new could curb the ability of Europeans to use the EFSF to relieve the ECB in resolving the crisis.

"It's true (that announcements by Moody's) can weaken the EFSF, debts are guaranteed by France to the tune of 158 billion euros, which is significant.It could create a doubt, "he says.

As for Alex Koagne, an analyst at Natixis bank, it is estimated that the bank recapitalization component that is affected first.

"The message from Moody's equivalent to saying that France can not help its banking sector.It's a way of saying: 'If your bank should be recapitalized, they will do in the markets,' "he said.

CALENDAR

Beyond the impact on trust, risk, however, are limited in the short term.

The "multiplier" of EFSF, which could be decided on Sunday, will have no impact on the sovereign ratings of countries in the euro area and could increase the response capacity of the fund to some 2,000 billion euros in guarantees, which does not weigh on the public accounts.

The recapitalization of banks should in turn be primarily via internal reserves and facilities through the market, with limited impact on finances.

Above all, the European Stability Mechanism (MES) could start operating sooner than expected

Legal personality of international institution and its 500 billion euros in capital, which can be more easily "multiplied", will make it impervious to changes in national sovereign debt notes.

The date is now planned on 1 July 2012 but some call for further accelerate this timetable.

Moody's has on its side no plans to go as fast and was given three months to choose whether or not the French note on negative outlook, before eventually withdrawing its maximum score within two years.

Industrial production in the United States increased as expected in September, according to figures released Monday by the Federal Reserve, the manufacturing sector offsetting a decline in the utilities.

Production increased by 0.2% the previous month, according to the expectations of economists polled by Reuters and after remaining unchanged in August. (Revised from an initial estimate showing an increase of 0.2% in August.)

Production in the utilities fell 1.8% last month.She fell 2.9% in August after the July heat wave that had boosted the use of air conditioners.

The rate of capacity utilization rose to 77.4% against 77.3% (revised from 77.4%) the previous month. (Reuters: 77.5%).

The Greek leaders meet with their counterparts in Switzerland next week to finalize an agreement on the Greek capital flight to Bern. It goes from 8.86 to 9 euros gross time to reach 1,365 euros for 35 hours, or about 1,073 euros net per month.

The Greek Secretary of State at the Ministry of Finance, Ilias Plaskovitis, will meet next week the Swiss government officials to advance an agreement between the two countries on the Greek capital flight, said Friday the Minister Evangelos Venizelos. "The Greek government is negotiating with the Government of the Federation Helvetic to develop a model agreement on the Swiss-German-Swiss or helvéto so that Greece can have the tax revenues of the Greeks deposits in Swiss banks," Venizelos said in Parliament during a debate on this subject.

"Mr.Plaskovitis will meet next week in Switzerland Swiss officials on this issue, "said the minister who hopes that" this agreement is ready by the next day. "" We need the Greek parliament is ready to accept such an agreement as did Germany and the UK, "said the minister. The Greek Socialist government has launched several months in a fight against tax evasion, but without much success so far.

"In 2009, capital flight amounted to 5.4 billion euros, 4.9 billion relate only 8,667 Greeks, including 42% say less than 20,000 euros in revenues," said Mr. Venizelos. The Minister reiterated that "tax evasion was a national crime, a national disaster" and described as "Kafkaesque" procedures for fiscal control.

He pledged to publish next week the names of taxpayers who have large debts vis-à-vis the state to force them to pay. "We have identified those who need more than one million euros to the state and we have requested assistance from private companies to collect these debts in cooperation with the tax officers," the minister said adding that " 15,000 individuals and companies need 37 billion euros, of which 32 billion are due by companies. " According to experts, Greek banks suffer from a significant lack of liquidity and considerable leakage of capital, totaled 70 billion euros since 2010.

The trade deficit of the United States declined slightly in August, show figures released Thursday by the Commerce Department.

The trade balance posted a deficit of 45.61 billion dollars, while the market was expecting a hole of 45.8 billion.

In July, the deficit eventually amounted to 45.63 billion (44.81 billion in the first estimate).

Exports were down 0.1% from July to 177.61 billion dollars while imports remained unchanged at 223.22 billion dollars.

The United States has accused a record trade deficit in relation to China, to 28.96 billion dollars against 26.96 billion the previous month.

In the morning, China announced that its trade surplus had declined in September for the second consecutive month, a statistic that reflects the weakness of the global economy and the slowdown in China itself, thus being factor decline in world stock markets.

The current account deficit of France in August fell to 2.9 billion euros from 3.8 billion in July, showed preliminary figures released Wednesday by the Bank of France.

The deficit on trade in goods fell to 5.2 billion euros, against 6.4 billion a month earlier.

Trade in services have stabilized, generating a surplus of one billion euros.

The income balance has reached $ 3.5 billion from 3.6 billion in July while the current transfers deficit was unchanged at 2.2 billion.

The financial account showed a net outflow of direct investment of 800 million euros from 8.5 billion in July.

French direct investment abroad stand at 4.6 billion against 4.3 billion a month earlier.

Portfolio investment recorded net inflows of 21.7 billion euros residents increased their holdings of 34.6 billion while non-residents making sales of French securities to 12.9 billion.

Other investment posted net outflows of $ 4.9 billion after limited net outflows of 5.3 billion.

The cost of support for Dexia is not insignificant for Belgium, but France, this bailout is not in itself a significant risk to his notes because of its low exposure to the Franco-Belgian bank, said Monday a Fitch analyst told Reuters.

"The cost of support for the Belgian Dexia is not insignificant, and highlights a weakness of the note of Belgium, including a large banking and financial commitment that implies for the state," said Douglas Renwick, one of the leaders of the team responsible for Fitch's sovereign ratings, told Reuters in an email.

Monday morning, Standard and Poor's and Moody's confirmed or repeated Monday that they give full marks to the French public debt and its stable outlook, hours after the announcement of the public bailout of Franco-Belgian bank Dexia.

This plan includes 90 billion of government guarantees to ensure the financing needs of the public entity that will remain after decommissioning. Belgium will provide 60.5% of these guarantees, against 36.5% in France, the remainder returning to Luxembourg.

Suspended since Thursday, Dexia shares plummeted to its resumption of trading at 14.30, losing up to 36% before recovering an hour later to earn 8.88% to 0.92 euro. She eventually finished down 4.73% to 0.805 euro.At its highest in late May 2007, the action was still worth 22.56 euros.

Maria Malas-Mroueh, who is also one of the leaders of sovereign ratings, said that 36.5% of 90 billion of guarantees accounted for at most 1.6% of French GDP."For Fitch, Dexia exposure is small compared to the French GDP and it is not in itself a significant risk to the French note," she said in an email.

This view is shared by Moody's which held that the dismantling of Dexia would, for now, no impact on credit ratings of France.

Some concern weighing on the credit rating due to a share of the debt of France and also the country's banks' exposure to debt in the euro area device.

Second largest economy in the euro zone, France is the country whose deficit and debt are the highest in six countries in the euro area still rated AAA.

Discussions on the future of Dexia continued Saturday in Brussels and Paris to an agreement on the orderly dismantling of the Franco-Belgian bank, the first victim of the European debt crisis.

Originally scheduled for Saturday afternoon, a decisive meeting of the board of the group was delayed until Sunday to give negotiators more time.

Belgian Prime Minister in charge of current affairs, Yves Leterme held talks in the morning by telephone with the head of the French government said on around him, while advisors from both countries met in Paris.

The finance ministers of both countries, Baroin and Didier Reynders, should discuss the matter later in the day, sources said in Brussels, which could take an inter-Belgian.

No comments could be reached immediately on the case in Paris.

The rating agency Moody's has increased pressure on the Belgian camp Friday night: it has placed the sovereign rating of Aa1 by explaining kingdom under surveillance will include assessing the costs and liabilities that the state could play in supporting Dexia.

The dismantling of the group could indeed go through a nationalization of the Belgian branch, Dexia Bank Belgium (DBB), which specializes in bank deposits.

One solution put forward in recent days by the interim government in Brussels but which opposed the three Belgian regions, which owns 5.7% of the group and who wish to retain a role in financing local governments.

Both sides, however, are closer to a compromise in recent hours, officials said a source familiar with the matter.

The Belgian daily L'Echo reported previously that the nationalization of DBB may be followed by a holding areas at a future capital increase of DBB.

LOAD difficult to allocate

The Echo adds, however, that the track of a redemption of DBB by a foreign bank is being considered and said that several institutions have expressed interest, including Deutsche Bank, Rabobank, Crédit Mutuel and BBVA.

Another key point of discussion: the distribution of the financial burden of dismantling between Belgium and France, whose participation combined with that of the Caisse des Depots (CDC) is around 25%.

Yves Leterme and Didier Reynders warned Thursday the French government that Belgium would not only burden.

The two countries should agree on such funding guarantees to provide for the financing necessary for the liquidation phase of a bond portfolio valued at 95 billion euros.

According to L'Echo, France keen to maintain its AAA rating, "defends a 60/40 split or 65/35" instead of the theoretical equilibrium 50-50 on the basis of the current distribution of capital."Belgium is not hostile," the daily.

Friday, François Fillon announced that the Deposit would release three billion euros to finance the French local authorities until a new entity formed by the Deposit and Consignment Office (CDC) and the Postal Bank takes over Dexia.

Before the board of directors of Dexia, Nicolas Sarkozy at the Elysee Palace has received the Director General of the International Monetary Fund, Christine Lagarde. It did not comment after the meeting.

The French president is scheduled to visit Sunday in Berlin for talks and a working dinner with Chancellor Angela Merkel before the summit of the euro area of ​​17 and 18 October and the G20 in Cannes on 3 and 4 November.A bilateral meeting during which the larger issue of the recapitalization of banks in Europe should be addressed.