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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (91837)	6/24/2012 1:11:46 PM
From: Haim R. Branisteanu	Respond to of 217556

German Government Agrees With States on Fiscal Treaty, ESM 24-Jun-2012 The German government has reached an agreement with representatives of the country's 16 states to ratify the European fiscal treaty and permanent bailout fund, clearing an important hurdle on the way to legislative approval of the measures in Germany later this week, the government said Sunday. After several hours of negotiations between representatives of the German government and representatives from the individual states, the government said both sides agreed on the framework of how to help the states to cope with possible extra costs resulting particularly from the fiscal pact. Some of the details of the agreement still will have to be worked out, but the federal government will take over at least some of the costs of integrating handicapped people, a key demand voiced by representatives of the states ahead of the talks Sunday. The agreement paves the way for approval of the bailout fund ESM and the fiscal treaty in the upper house of parliament, where the states are represented, next Friday. This past Thursday, the government reached an agreement with the main opposition parties, granting the needed two-thirds majority in the lower house of parliament. With passage of the measure almost guaranteed in both houses of parliament, the attention now will turn to when Germany's president will sign the measure. Germany's constitutional court has asked the president, Joachim Gauck, to hold off with signing the bill into law after left-wing lawmakers lodged a last-minute legal challenge on the constitutionality of the measure. Chancellor Angela Merkel's government had been negotiating for weeks to reach a compromise with opposition lawmakers that would ensure parliamentary approval of the fiscal pact, which enforces budget discipline in the euro zone, and the European Stabilization Mechanism, a rescue fund originally scheduled to take effect July 1. The measures form a big part of Europe's response to its banking and sovereign debt crisis. The timing of the ratification is important as it will determine whether the euro zone taps the ESM or its predecessor, the European Financial Stability Facility, for up to 100 billion euros ($125.7 billion) in financing for Spain's ailing banks. For the ESM to come into force, it needs the approval of member countries representing 90% of the ESM's capital. Write to Klaus Brune at klaus.brune@dowjones.com

To: Haim R. Branisteanu who wrote (91837)	6/24/2012 4:27:23 PM
From: elmatador	Read Replies (1) \| Respond to of 217556

Germany knows the model is exhausted. Knows the PIGS only chance to pay what they owe is through severe hardship. A hardship the populaces aren't willing to stomach. An economy based on transformation industry was possible because 2.5 billion people (USSR, China and India plus indebted emerging markets) were off the global economy. They could import cheap inputs to transform and export. Once these 2.5 billion became active, the transformation cum exports model of the EZ was no longer tenable. Why? Because the emerging markets are now gobbling the inputs EZ used to import. Same can be applied to Middle East and North Africa. Their imports got too expansive. Their populaces revolted against entrenched governing elites.