The fee will rise to 0.1% of the value of acquiring the shares. It must take effect in August.

Are concerned the major listed companies headquartered in France, "whatever the place of completion of the transaction."

The amount of another tax, which will focus this time on purchases of credit default swaps (CDS) sovereign "naked", will amount to 0.01% of the notional amount of the contract.

The text also plans to tax the transactions of high-frequency trading.

For the latter, the tax will amount to 0.01% of the amount of orders canceled or changed beyond a threshold may be fixed by decree. This threshold "can not be less than two-thirds of orders addressed and can be modulated depending on the size of balance sheet of the operators concerned," we read in the text.

To avoid penalizing the financing of companies and states, the obligations are not affected by these new taxes.

The government hopes these measures will yield one billion euros in a full year.

MORE EXEMPTIONS

The published document is described by BFM Business as draft article to be included in the draft amending budget presented Wednesday by the Cabinet.

Without commenting directly on this document, a source at Bercy said the bill was forwarded to the Council of State and it was not final. 

The document states that the tax on stock purchases is due on the first day of the month following the acquisition.

For 2012, the tax must be paid before November 30 for purchases made between August 1 and October 31.

Several exemptions are provided, especially for market-making activities, purchases made through a share issue, the operations performed by a clearing house or the acquisition of shares between companies within the same group.

The tax on sovereign CDS bare "applies to any purchase by an enterprise carried on in France," it reads in the text.

This tax will not be due if the taxpayer holds a long position in the debt of that State, he said. 

Again, the market-making operations are not affected.

As for the tax on high-frequency trading, it is clear that it will not affect the systems used to optimize the conditions to execute orders or to route orders to one or more trading platforms or affirm those orders.

If we add also the data from Iceland, Norway and Switzerland, the decline was slightly less marked, to -1.4%.

Over the period from January to October, registrations show a decline of 1.2% over the same period in 2010 (-0.9% with Iceland, Norway and Switzerland) to 11,126,000 units.

In Germany, the number of registered vehicles rose 0.6% in October compared to last year (9.8% over 10 months), while in France, sales were up 2.4% Last month, a slight increase of 0.4% over 10 months to 1.829 million units.

The number one European car Volkswagen rose by 3.7% of sales in October, all brands, while the runner, French PSA Peugeot Citroen, saw his fall by 6.4% the month last.

For its part, Renault has declined by 2.3% in October and Fiat a drop of 10.3%.

These will begin in the evening and will begin with interviews with the presidents of the Senate and the Chamber of Deputies, Gianfranco Fini and Renato Schifano, sources said political sources.

In a brief speech following his nomination, Mario Monti said that Italy had "overcome the challenge of redemption" in a "troubled European and global context."

"The country must become a pillar of strength, not a weak link in the European Union that we were among the founders," said the former European Commissioner.

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.

This tax will be sitting on their sales-tax at a rate of between 0.08% and 0.12% and is expected to bring nearly 250 million euros, the newspaper said on its website. Electricians (mainly EDF) will pay the third party, says he.

The government source confirmed the creation of this tax and its rates, but not the expected return.

Wednesday the government will introduce the draft budget for 2012 which aims to reduce the public deficit of France to 4.5% of GDP at the end of next year.

Against the backdrop of the debt crisis, the activity of services in the euro area, representing about two-thirds of the economy of the 17 countries using the euro, fell into contraction in September for the first time in two years, according a flash estimate published by Markit.

The index of manufacturing it has continued to decline for the second consecutive month, following the lead of HSBC PMI index of Chinese industry, reflecting a narrowing of the event for the third consecutive month.

By mid-day, European stock markets were digging their losses, also depressed by the bleak diagnosis of the Federal Reserve on the U.S. economy.

"There is a global slowdown (…), the Fed took note of yesterday (Wednesday), and the Bank of England raised the possibility of a new round of quantitative easing," notes Lolay Jeavons, responsible research world at Lloyds Banking Group.

"There is no doubt that the risks of a global recession have increased."

The services index in the euro area stood at 49.1 after 51.5 in August, while analysts on average expected a 51.0 index.Manufacturing activity has contracted it to 48.4 against 48.5 expected and 49.0 in August.

"The numbers are consistent with continued growth in gross domestic product (GDP), so it does not show even a recession," said Martin Enlund of Handelsbanken.

GOVERNMENT CALLED TO ACTION

"That said, (…) the credit crunch in the euro area could lead to another recession by Christmas if governments do not act quickly and vigorously."

Tuesday, the International Monetary Fund (IMF) has warned Europe and the United States against the threat of a relapse into recession next year because of rapidly addressing economic problems that could contaminate the rest of world.

The European Central Bank (ECB), which was the first major central bank to raise rates after the financial crisis, may have to lower them again in the near future, especially as anti-inflation rhetoric has subsided with the decline in price pressures.

"Under these conditions, the ECB could cut the refi rate to 1% by the end of the year," Judge Clemente De Lucia, an economist BNP Paribas.

In Germany, driving the economy of the euro area, the private sector activity in September rose at its slowest pace in over two years and new orders declined for the third consecutive month.

The composite PMI, which includes industry and services, stood at 50.8 version of "flash", its lowest level since July 2009, against 51.3 in August.

"We could see very little growth (of German GDP) in the third quarter and perhaps even a contraction in the fourth," warns Chris Williamson, economist at Markit.

"A BAD NUMBER OF GDP TO PROFILE" IN FRANCE

Moreover, the growth of private sector activity in France in September fell to its lowest level since the beginning of the recovery in 2009, accentuated the decline in the industry while expanding services was weakening.

The composite PMI fell to 50.7 in version of "flash" against 53.7 the previous month.

"The results of the PMI for the entire third quarter involve a considerable loss of the underlying dynamics of the French economy, which means a bad figure for quarterly GDP growth is emerging from stagnation in the second quarter" said Jack Kennedy, senior economist at Markit, which links with the escalating debt crisis in the eurozone.

In China, HSBC index of purchasing managers in the manufacturing sector fell to 49.4 this month, against 49.9 in August, the third consecutive month that figure below 50 points , which separates expansion and contraction.

The contraction in manufacturing activity, against a background of decline in new orders and new export orders suggests that the second largest economy in the world will perhaps not a replacement locomotive to address the "continuing weakness" found Fed by the United States.

Economists and Chinese leaders expected that the country's growth slowing, largely because of declining exports.

"The export sector seems increasingly threatened since the global fundamentals are reeling," said Connie Tse, an economist at FORECAST in Singapore.

But even if the prospects darken abroad, domestic demand should continue to maintain growth in China over 8%, even if it fuels inflation and may complicate the task of the Chinese central bank to contain rising prices without undermining activity.

"It would be completely irresponsible for the government. That's why it will not happen. The Social Democrats will not give up," she said at a gathering of the Social Democratic Party broadcast by the channel public television YLE.

Before her, a Finnish government source warned that the granting of collateral in exchange for the participation of Finland in terms of aid to Greece was an absolute prerequisite.

The website of a European institution had advanced earlier Helsinki waive this requirement.

"It seems there was a misunderstanding.Our demand is still very topical. The collateral is an absolute prerequisite to the participation of Finland to the aid plan, "said the government source.

"Discussions are ongoing on how to make these possible collateral," she said.

Greece has signed with its international donors agreed a new rescue package in July, covering its financing needs until mid-2014.

It was later, as part of a bilateral agreement, agree to provide a guarantee (collateral) to Finland in exchange for loans, leading Austria, Slovakia and the Netherlands to make the same requirement the week passed.

However, the Netherlands has changed its attitude Monday, their Finance Minister Jan Kees de Jager rejected the Austrian proposal to extend the principle of collateral.

The rating agency said Monday that the proliferation of such bilateral agreements with granting the guarantee would be negative for the credit rating of Greece, now that or just a notch above the default.

"The agreement between Greece and Finland, in itself, small scale, is nevertheless very significant.Continue with this approach could delay the next tranche of financial assistance to Greece and therefore precipitate a default in payment, "said she.

Greece in September to receive a slice of eight billion euros in the first aid program.

Moody's believes that other countries in the euro area will come to interfere with the agreement with Finland.

"One thing leads to another and you can get into difficulties in the implementation of the bailout.Maybe it was a mistake to enter into this agreement with Finland, "said a Greek economist.

Greece, which market activity is limited to monthly auctions of short-term debt, to refinance 4.0 billion euros good three and six months in September.

For the agency, require collateral demonstrates a lack of commitment on the part of some countries in the euro area, increasing the load all over France and Germany, who have to take extremely firm commitments to strengthen the euro area.

"The deep divide, despite a facade of unity of the countries in the euro area, as evidenced by such requirements, and that even in the context of the new Franco-German proposals to strengthen the European institutions, is a source of new concerns about the conditional nature of the current mechanism and scalable financial support, "Moody's also noted.

She finally believes that the proliferation of collateral agreements also restrict the pool of funds available for future rescue packages.

If they speak of "historic" or "serious decision", they caution that it is not a surprise.

"This is the first country" AAA "to lose the top rating. It's not a big surprise given what has happened in recent days. S & P had prepared the ground for a breakdown of the note states United, "said Nicolas Forest, head of rates strategy at Dexia Asset Management.

"Even if it was half expected, it is a serious decision.The impact will be far reaching, "said Ciaran O'Hagan, rates strategist at Societe Generale who fears that we have opened a" Pandora's box ".

He said the decision will affect somewhat the "risk-free" (government bonds), "but the response will focus on the highest risk assets, including shares and agencies (including Freddie Mac Fannie Mae, Ed) directly guaranteed by the federal government. "

Nicolas Forest also expects initially a slight tension on U.S. rates and a more violent reaction on risky assets, including equities.

SHIP

For two weeks, the sovereign debt crises on both sides of the Atlantic and the economic downturn much stronger than expected, particularly in the United States, were plunging stock markets and interest rates propel fragile states the euro area to prohibitive levels.

Meanwhile, countries that have the best signatures, such as the United States, Germany and France, have seen their rates drop significantly.

"In recent weeks despite threats of debt, U.S. rates have never been so low, a sign of investor confidence," said Nicolas Forest.

Ciaran O'Hagan for, "the Treasuries (bonds, Ed) U.S. will remain a reference (benchmark)."

"It's a ship that takes time to tack," he said, adding that the stock of marketable debt U.S., excluding treasury bills (TBills) amounted to 17.234 billion dollars.

It removes the immediate possibility that other countries rated "AAA", including France, also lose the top rating.

Both strategies underscores the need to assess the decision of S & P over the long term, that is, the ability of the U.S. government to adopt a credible plan for financial recovery in the face of faltering growth.

Ciaran O'Hagan asks the other what will the large portfolios of investors required to have a certain proportion of securities rated "AAA".

"We are ready," he told CNN the leading Republican minority in the Senate, Mitch McConnell, who plays a key role in these talks.

Meanwhile, a senior White House has a flat, saying that there was still no agreement.

Raising hopes of a positive outcome to the negotiations, ABC News reported Sunday that the discussion of U.S. debt have led to a tentative agreement on a framework to reduce the budget deficit.

The chain, which cites unnamed sources in the Congress, said that the debt ceiling would be raised until the elections of 2012.The plan also provides for a reduction in spending of more than 1,000 billion over 10 years and the establishment of a new panel of members of Congress, which will provide recommendations on additional measures to reduce the deficit by more than 1000 billion.

This agreement would cover a total of 3,000 billion dollars, said Mitch McConnell, voiced confidence that it would prevent the United States end up in default and raise taxes.

It also provides that the proposal won the support of a "significant percentage" of Republicans.

Democratic Senator Charles Schumer for his part said that the "enforcement mechanism" of new measures to reduce the deficit was the main subject of debates.

He added that the debt ceiling will be increased until 2012 but the Democrats continue to oppose cuts in spending on programs of Social Security, Medicare and Medicaid.

Finally, he said, spending cuts in the defense sector will also be a "scale equivalent" to non-military spending cuts.

The U.S. Treasury, which reached its debt ceiling in May, and Congress needs to borrow more, warned that if no agreement is reached after 2 August, the U.S. might not be able to fill their obligations vis-à-vis their creditors.

OBAMA RESPONSE

If Democrats and Republicans agree on the need to raise the debt ceiling, currently set at 14,300 billion, stumbled up to the discussions on the timing and terms of deficit reduction to accompany recovery.

After weeks of standoff between the two camps, the White House went out of his reserve Saturday by receiving a delegation of elected Republicans to try to break the deadlock.

Sign of an improving climate, the leader of the Democrats in the Senate, Harry Reid, announced the postponement of several hours the vote on a plan to increase debt in order to give more time for negotiators on both sides.

Originally scheduled on the night from Saturday to Sunday at 1:00 (5:00 GMT), the vote was postponed to 13:00 Sunday (1700 GMT).

Saturday, a draft submitted by the Democrats had not obtained the required majority in a vote in the House of Representatives, controlled by Republicans.

But after days back, the return of the White House at the forefront of discussions is considered a positive sign.

"Our country will not be in default for the first time in its history, it will not happen," said Mitch McConnell, calling himself "confident and optimistic" about the possibilities to arrive in time to a bipartisan agreement.

Faced with the threat of a downgrade sovereign American weigh heavily on a fragile economy, the White House is also trying to keep reassuring.

The economic adviser Gene Sperling the White House has said on Fox News that he "feared that the United States are experiencing a new recession" and urged Congress to approve an increase in the debt ceiling to to reassure the financial markets.He found that the current budget uncertainty amounted to "shooting itself in the foot" because it weighs heavily on U.S. growth.

The Republicans want to ensure that Obama is involved in discussions to have the guarantee that he will not oppose its veto on a possible negotiated settlement to Congress.

The head of the White House intervened Saturday for the second time in two days to urge members of both sides to reach an agreement and back the specter of a defect that would in his opinion "inexcusable."

"There are many ways to solve this problem," Obama said in his weekly radio address. "Congress must find common ground on a plan that both parties can agree to the House.And it must be a plan that I can sign by Tuesday. "