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To: Les H who wrote (178519)	7/9/2002 6:02:28 PM
From: Haim R. Branisteanu	Respond to of 436258

Solbes warns of rising budgetary deficits European Union currency commissioner expects more discipline from Italy, France and Portugal (babble Fish translation from German) Bettina Vestring BRUSSELS, 9 July. European Union currency commissioner Pedro Solbes pointed himself deeply anxiously over the rising budgetary deficits to Italy, France and Portugal. In the discussion with " the citizens of Berlin newspaper " Solbes said on Tuesday, some governments were obvious in temptation to place the stability pact for the euro in question. The European Union commission to see in all probability forced to introduce a deficit procedure against Portugal. Sometimes France and Italy would have to count on an early warning " (blue " letter). Also yet placing the German budgetary situation, added Solbes is not content. Germany will submit likewise only a balanced household to 2004, later than most other euro-countries. At least however the commission from Berlin received so far still no references, which would place in the spring the agreed upon reorganization goals in question. " There are four countries in the euro-zone, which problems create, but under this four countries the three economical heavyweights Germany, France and Italy are ", so the European Union commissioner. " We pay all to calculation " " We turned out in danger that some of these countries did not use growth using now, to increase in order to reduce their deficits, but around it " said Solbes. " In former times everyone would have gotten the consequences of such a policy in the own country to feel. Now, where we have the common currency, we pay the calculation everything together. " Solbes added, he hoped that the Ministers of Finance of the euro-countries would speak with their meeting on Thursday about the development of the deficits. Particularly concerned Solbes pointed itself over the situation to Portugal. It is in the meantime sure itself that the deficit lay clearly there in the past year over the three-per cent border, which the stability pact prescribes. As soon as the official confirmation is received, the commission will therefore introduce a sanction procedure against Portugal. If the government does not bring its household fast under control, threaten it a fine, said Solbes. " If the deficit lies in the year 2002 still over the three-per cent border, we really come into large difficulties. " Italy ready likewise problems: Still three weeks ago ago the Italian Minister of Finance made a commitment to his European Union colleagues to adjust its household up to the year 2003. Now the government in Rome presented however a financial plan, which plans a reconciliation only 2004. In addition it comes that Italy does not seize structural measures, in order to reorganize its household, but on a mark measures is limited. " That is like that, as if you do not pay their daily meal from your content, but but, said Solbes " sell your house. " At the end the inheritance is consumed. " Also France missed it so far to seize the necessary painful measures in order to bring its public finances in order, criticized Solbes. To take some national investments out in the future simply of the deficit computation it rejected suggestions from Paris. Also one may not out-count the expenditures for the structure of a European defense simply. " One must remain respectable ", said Solbes. " Fact is nevertheless that one must pay, which one buys, and which applies also to the defense. If such expenditures lead to higher debts, the interest rises, and then that loads the economy altogether. One cannot out-count nevertheless a part of expenditures simply. " At all the currency commissioner spoke himself decided against each softening of the stability pact out, with which the participants in the European monetary union had committed themselves to the household discipline. " I do not believe that there are economic reasons for a reform of the pact, I also no changes will suggest ", said Solbes. " The stability pact is difficult only for the countries, which did not reach their balanced budget yet. " Clearance more exactly define The European Union commission and the member countries worked at present more exactly to define the clearance which the stability pact of the national financial policy leaves. Thus one agreed to compute the structural deficits according to a uniform method said Solbes. This helps to recognize the long-term household developments. Also over the framework, which arises as a result of respective economic growth, one wants to come to an agreement within the euro-zone. Finally go it also around advising over the consequences from an economical shock, for example by a sudden increase of the oil prices. " The stability pact is not a straitjacket, it is flexibly enough ", said Solbes. Of a failure of the pact Solbes did not want to hear anything: In the opposite show the straight present debate over the deficits that the agreement is still effective. " We have a system, which works well, if one keeps the rules: Everyone must be convinced deeply of it that it must do, what it do should ", said Solbes. " Still we do not see people, which question the rules. However we see people, which are in temptation to place the rules in question. " berlinonline.de

To: Les H who wrote (178519)	7/9/2002 6:13:42 PM
From: Les H	Read Replies (3) \| Respond to of 436258

O'Neill says any further corporate accounting frauds to be known by August WASHINGTON (AFX) - The public will know whether there are any further cases of corporate financial misreporting by August, said Treasury Secretary Paul O'Neill, thanks to a new requirement for chief executive officers. The new requirement by the Securities and Exchange Commission that CEOs attest to the truth of their firm's accounts on a personal basis will ensure that any further cases are brought to light, he said in an interview on Fox television. The SEC rule takes effect in the mid-August filings due at the SEC, he noted. "If there are any more birds in the tree, they are going to fall out after that filing," he said. "Because I don't think any CEO is going to knowingly certify that last year's results are not true -- unless they've been assured by everyone and anyone that it's all true," he said. He reiterated that CEOs have the "duty and responsibility" to know "everything that's material in their company." This does not include small cases of fraud such as 10,000 usd bribes, but any CEO should be knowledgeable about transactions on the order of 1.0 bln usd, he said. Separately, O'Neill rejected as "a lot of trash" criticism of SEC chief Harvey Pitt for having previous ties with the accounting industry. It does not make sense to exclude individuals with experience in a field from regulatory oversight of that same field, he concluded.