Investment strategy correspondent, London
Ingrid's Feed
May 13, 2013

Spain, Portugal push for full banking union as Germany finds hurdles

BRUSSELS/MADRID May 13 (Reuters) – Spain and Portugal called
on Monday for the euro zone to complete a banking union as
Germany underscored legal hurdles before a central element of
the plan to deal with failing banks can be introduced.

“It is indispensable that we stick to the agreed calendar on
banking union and that we take steps to make sure families and
small companies receive credit,” Spanish Prime Minister Mariano
Rajoy told reporters.

Apr 30, 2013

Empty shops, tight wallets threaten France with recession

PARIS, April 30 (Reuters) – French consumers bought fewer
cars, tables and chairs, and clothes in the first part of the
year, challenging the government’s pledge to steer the euro
zone’s second largest economy away from recession.

Consumer spending accounts for more than half of France’s
output and is the motor of the economy. It fell last year for
the first time in 19 years.

Apr 30, 2013

Heating cold houses gives unexpected boost to French spending

PARIS, April 30 (Reuters) – French consumer spending
rebounded in March, largely thanks to increased household
heating to combat unusually cold weather, but it was not enough
to stop a quarter-on-quarter decline.

Consumption, which accounts for over half of France’s
output, is the motor of the French economy but high
unemployment is making households cautious about spending.

Apr 25, 2013

French jobless claims hit all-time high in March

PARIS (Reuters) – More people were out of job in France in March than at any other time in the past, data on Thursday showed, a bleak record that cast new doubt on government promises to reverse the unemployment trend by year-end.

The new 3.225 million record, an 11.5 percent annual increase, is a symbolic blow to Socialist President Francois Hollande, whose approval ratings have sunk to the lowest of any modern French leader in recent months as jobless claims soared.

Apr 17, 2013

France plans spending cuts as fiscal targets slip

PARIS (Reuters) – The French government said on Wednesday it would have a higher-than-planned public debt and deficit throughout its mandate but hoped to appease EU partners with spending cuts that will bring the underlying budget to surplus in 2016.

Paris is battling to persuade the European Commission and euro zone leaders to grant it more time to knock its finances into shape after it conceded earlier this year it would break a pledge to cut its deficit to 3 percent of output in 2013.

Apr 17, 2013

France eyes bigger-than-planned 2017 headline budget deficit

PARIS, April 17 (Reuters) – The French government
acknowledged on Wednesday it would have a higher headline public
deficit than planned by the end of its mandate in 2017, but said
the underlying budget would be in surplus one year before that.

Paris is battling to persuade the European Commission and EU
partners to grant it more time to knock its finances into shape
after it conceded earlier this year it would break a promise to
bring its deficit down to 3 percent of output in 2013.

Apr 16, 2013

France warned on growth goals, fiscal targets in doubt

PARIS, April 16 (Reuters) – France’s economy could shrink
this year and miss future government forecasts, the country’s
budget watchdog and the IMF warned on Tuesday, casting doubt on
Paris’s pledge to cut its deficit below 3 percent of output.

France will unveil a revised multi-annual budget plan on
Wednesday to try to meet the 3 percent EU deficit ceiling in
2014. It acknowledged earlier this year that it will miss the
target this year because growth has stalled.

Apr 15, 2013

Analysis: French bonds find precarious “sweet spot”

PARIS (Reuters) – France is borrowing at its cheapest rates ever, but to keep costs so low it must satisfy the European Union and investors that structural reforms are on track and hope the euro zone crisis can be held under control.

A euro zone country missing its fiscal targets, on the brink of recession, with an unpopular president and a population notorious for its resistance to reform, might seem the perfect combination to scare away investors.

Apr 15, 2013

French bonds find precarious “sweet spot”

PARIS, April 15 (Reuters) – France is borrowing at its
cheapest rates ever, but to keep costs so low it must satisfy
the European Union and investors that structural reforms are on
track and hope the euro zone crisis can be held under control.

A euro zone country missing its fiscal targets, on the brink
of recession, with an unpopular president and a population
notorious for its resistance to reform, might seem the perfect
combination to scare away investors.

Apr 15, 2013

French 2014 budget to raise tax take, trim spending

PARIS (Reuters) – French taxpayers face a heftier tax bill next year, the country’s finance minister said on Monday, even though the focus of fiscal tightening is set to shift from raising extra revenue to trimming spending.

The additional tax burden of about 6 billion euros will show up in a revised multi-year budget plan the government will unveil on Wednesday, key to its efforts to win a one-year reprieve from its euro zone partners on its deficit target.