Chancellor Merkel is holding an emergency meeting with Opel's management to work out a plan to aid the troubled carmaker. But two Cabinet members emphasized an industry-wide bailout was not the solution. "I have invited the head of (Opel) Germany, the head of Europe and the union representative so we can discuss on Monday the situation at Opel," German Chancellor Angela Merkel told reporters ahead of an emergency meeting of major economies here to deal with the global financial crisis. "The federal government, the economy minister and the finance minister are going to take control of this matter," she said of the talks with Opel, a unit of faltering US auto giant General Motors.
"I have invited the head of (Opel) Germany, the head of Europe and the union representative so we can discuss on Monday the situation at Opel," German Chancellor Angela Merkel told reporters ahead of an emergency meeting of major economies here to deal with the global financial crisis.
"The federal government, the economy minister and the finance minister are going to take control of this matter," she said of the talks with Opel, a unit of faltering US auto giant General Motors.
An weekend agreement could see Iceland getting the international aid it needs to emergy from the crisis that has devastated its economy. Iceland will repay thousands of foreign savers who had money in now-frozen accounts The European Commission on Monday said the agreement reached with several EU states on how to repay thousands of foreigns who had accounts in Iceland paves the way for aid to start flowing to the country, including a package from the International Monetary Fund worth as much as $6 billion. Those accounts have been at the center of a tensions between Iceland and its European neighbors. Britain and the Netherlands have been delaying the IMF package, which has deprived Iceland of badly needed funds to revive its currency trade and restart the economy. "We welcome the announcement by Iceland that it will apply EU rules on the protection of bank deposits," Amelia Torres, spokeswoman for the European Commission, said at a press conference on Monday.
The European Commission on Monday said the agreement reached with several EU states on how to repay thousands of foreigns who had accounts in Iceland paves the way for aid to start flowing to the country, including a package from the International Monetary Fund worth as much as $6 billion.
Those accounts have been at the center of a tensions between Iceland and its European neighbors. Britain and the Netherlands have been delaying the IMF package, which has deprived Iceland of badly needed funds to revive its currency trade and restart the economy.
"We welcome the announcement by Iceland that it will apply EU rules on the protection of bank deposits," Amelia Torres, spokeswoman for the European Commission, said at a press conference on Monday.
The world's 20 leading industrialised and emerging nations have backed fiscal stimulus plans to boost their economies but reached no agreement to co-ordinate such action - the preferred option of a number of European Union nations. The gathered leaders pledged to take over next four months a series of steps to "support the global economy and stabilise financial markets." G20 leaders have agreed to some new regulation of banks and insurance houses, but there will be no new global financial architecture "We are determined to enhance our co-operation and work together to restore global growth and achieve needed reforms in the world's financial systems," the group of 20 nations stated after a top-level meeting in Washington on Saturday (15 November). However, leaders reached no agreement on any internationally co-ordinated series of tax cuts and government spending to prime the economic pump, as some European leaders had favoured heading into the summit. The final conclusions also came well short of delivering any construction of a new global financial architecture or "refounding capitalism" as the current chair of the EU presidency, France's Nicolas Sarkozy, had famously demanded.
The world's 20 leading industrialised and emerging nations have backed fiscal stimulus plans to boost their economies but reached no agreement to co-ordinate such action - the preferred option of a number of European Union nations.
The gathered leaders pledged to take over next four months a series of steps to "support the global economy and stabilise financial markets."
G20 leaders have agreed to some new regulation of banks and insurance houses, but there will be no new global financial architecture
"We are determined to enhance our co-operation and work together to restore global growth and achieve needed reforms in the world's financial systems," the group of 20 nations stated after a top-level meeting in Washington on Saturday (15 November).
However, leaders reached no agreement on any internationally co-ordinated series of tax cuts and government spending to prime the economic pump, as some European leaders had favoured heading into the summit.
The final conclusions also came well short of delivering any construction of a new global financial architecture or "refounding capitalism" as the current chair of the EU presidency, France's Nicolas Sarkozy, had famously demanded.
The European Investment Bank (EIB) could help out struggling European car makers with a credit programme worth up to €40 billion, with details expected next week, the Financial Times reports. With car sales dropping 15.5 percent in Western Europe in the past month, car makers on the continent are turning to national governments and EU institutions to rescue them from the spreading recession. European carmakers are lobbying Brussels, Berlin, London and Paris to help secure their future The €40 billion rescue package from the EIB would be double the amount the American congress is proposing to save US car giants General Motors, Ford and DaimlerChrysler. Details of the bail-out could be put forward next week, when the European Commission expected to make proposals to bolster struggling industries in the face of the economic slowdown. Top executives of German car maker Opel are to meet Chancellor Angela Merkel on Monday (17 November) in a special cabinet session. Opel is struggling "not to go under" with its American owner General Motors, threatened by bankruptcy, Frankfurter Allgemeine Zeitung reports.
The European Investment Bank (EIB) could help out struggling European car makers with a credit programme worth up to €40 billion, with details expected next week, the Financial Times reports.
With car sales dropping 15.5 percent in Western Europe in the past month, car makers on the continent are turning to national governments and EU institutions to rescue them from the spreading recession.
European carmakers are lobbying Brussels, Berlin, London and Paris to help secure their future
The €40 billion rescue package from the EIB would be double the amount the American congress is proposing to save US car giants General Motors, Ford and DaimlerChrysler.
Details of the bail-out could be put forward next week, when the European Commission expected to make proposals to bolster struggling industries in the face of the economic slowdown.
Top executives of German car maker Opel are to meet Chancellor Angela Merkel on Monday (17 November) in a special cabinet session. Opel is struggling "not to go under" with its American owner General Motors, threatened by bankruptcy, Frankfurter Allgemeine Zeitung reports.
It has been a real eye-opener. 7 years ago when we bought our first car in France, the concept of a discount was seen with agock. Now, Citroën knocked 2,000 off just for walking in the door, plus another 700 euros, passing on the states ecology payment. Peugeot was selfish at only 1,500€ plus the 700. Ford was more refined; the larger amount for the Focus, and next to nothing for the new Fiesta.
Unfortunately, all these cars are somewhat overpriced to start with...IMHO. If I do any more research, I am going to have to open an english-speakers French car blog. Never underestimate their intelligence, always underestimate their knowledge.
Frank Delaney ~ Ireland
In the end, delegates to the financial summit of industrial and emerging economies delivered a closing statement without any concrete decisions. Host Bush has nothing left to say as the world eagerly awaits his successor Obama. What is clear, though, is that G-20's influence will grow. Washington's National Building Museum is an impressive structure. In this splendid setting, President George W. Bush stood in front of a blue and green map of the world. The members of the G-20 had just finished their summit on the global financial crisis and Bush spoke as optimistically as a foreman at a topping out ceremony. The leaders were "adapting our financial systems to the realities of the 21st century," he said. "Our nations agree that we must make the markets -- the financial markets more transparent and accountable." TV coverage of Saturday's speech kept breaking up due to the stormy weather in Washington. News stations switched instead to cover firestorms in California. It was suitably symbolic: In these stormy times, Bush's rhetoric cannot hide the fact that the most he can do is lay the foundations for future construction. Bush at the closing press conference: "Goodbye" The outgoing president quoted the summit communiqué, in which the participants committed themselves to continuing the "vigorous efforts ... to stabilize the financial system." Explicitly, the 20 countries advocated greater oversight of ratings agencies and stronger regulation of hedge funds. Consumer protection is to be bolstered and international financial institutions should be reformed. In addition, there should be clearer accounting standards and a review of the way managers are paid. There was no announcement of a global stimulus package, only initiatives by individual states. The declaration amounts to five pages. It is an impressive list. However, the many sentences describe principles rather than concrete measures. The summit merely showed that the leaders have understood the roots of the crisis. They even devote a paragraph to explain how there was no "adequate appreciation" of the risks the financial markets posed. The real message from Washington, though, was the following: We understand the gravity of the situation, but real action will have to wait. It will have to wait until one of the primary architects of any new financial structure takes office: US President-elect Barack Obama. By the time the next G-20 summit rolls around on April 30, the new president will be in office. In the meantime, G-20 delegations are to circulate detailed proposals by March 31 in preparation for that summit, which may be held in London.
In the end, delegates to the financial summit of industrial and emerging economies delivered a closing statement without any concrete decisions. Host Bush has nothing left to say as the world eagerly awaits his successor Obama. What is clear, though, is that G-20's influence will grow.
Washington's National Building Museum is an impressive structure. In this splendid setting, President George W. Bush stood in front of a blue and green map of the world. The members of the G-20 had just finished their summit on the global financial crisis and Bush spoke as optimistically as a foreman at a topping out ceremony. The leaders were "adapting our financial systems to the realities of the 21st century," he said. "Our nations agree that we must make the markets -- the financial markets more transparent and accountable."
TV coverage of Saturday's speech kept breaking up due to the stormy weather in Washington. News stations switched instead to cover firestorms in California. It was suitably symbolic: In these stormy times, Bush's rhetoric cannot hide the fact that the most he can do is lay the foundations for future construction.
Bush at the closing press conference: "Goodbye"
The outgoing president quoted the summit communiqué, in which the participants committed themselves to continuing the "vigorous efforts ... to stabilize the financial system." Explicitly, the 20 countries advocated greater oversight of ratings agencies and stronger regulation of hedge funds. Consumer protection is to be bolstered and international financial institutions should be reformed. In addition, there should be clearer accounting standards and a review of the way managers are paid. There was no announcement of a global stimulus package, only initiatives by individual states. The declaration amounts to five pages. It is an impressive list. However, the many sentences describe principles rather than concrete measures.
The summit merely showed that the leaders have understood the roots of the crisis. They even devote a paragraph to explain how there was no "adequate appreciation" of the risks the financial markets posed.
The real message from Washington, though, was the following: We understand the gravity of the situation, but real action will have to wait. It will have to wait until one of the primary architects of any new financial structure takes office: US President-elect Barack Obama.
By the time the next G-20 summit rolls around on April 30, the new president will be in office. In the meantime, G-20 delegations are to circulate detailed proposals by March 31 in preparation for that summit, which may be held in London.
Gordon Brown will claim today that his plans to cut taxes to keep the British economy moving have won the endorsement of leaders from the world's 20 largest economies. The Prime Minister will use the conclusions of the G20 summit in Washington to justify plans to raise tax credits for the low paid and speed up building projects on schools, hospitals, housing and transport projects.In the pre-Budget report a week today, the Government may also announce a boost to winter fuel payments. Changes to tax credits could help the 1.1m "losers" from last year's scrapping of the 10p income tax rate who missed out on compensation this year.Government sources dismissed as "complete garbage" speculation that taxes could be cut by a massive £30bn. But the Washington meeting may have given the Chancellor, Alistair Darling, more room for manoeuvre.Dominique Strauss-Kahn, the managing director of the IMF, who attended, called for nations to approve a fiscal stimulus equal to 2 per cent of gross domestic product - about £30bn in Britain. Such a move, he said, would result in a 2 per cent increase in growth. When asked where fiscal stimulus was needed, he said: "Everywhere. Everywhere where it is possible."
Gordon Brown will claim today that his plans to cut taxes to keep the British economy moving have won the endorsement of leaders from the world's 20 largest economies.
The Prime Minister will use the conclusions of the G20 summit in Washington to justify plans to raise tax credits for the low paid and speed up building projects on schools, hospitals, housing and transport projects.
In the pre-Budget report a week today, the Government may also announce a boost to winter fuel payments. Changes to tax credits could help the 1.1m "losers" from last year's scrapping of the 10p income tax rate who missed out on compensation this year.
Government sources dismissed as "complete garbage" speculation that taxes could be cut by a massive £30bn. But the Washington meeting may have given the Chancellor, Alistair Darling, more room for manoeuvre.
Dominique Strauss-Kahn, the managing director of the IMF, who attended, called for nations to approve a fiscal stimulus equal to 2 per cent of gross domestic product - about £30bn in Britain. Such a move, he said, would result in a 2 per cent increase in growth. When asked where fiscal stimulus was needed, he said: "Everywhere. Everywhere where it is possible."
Spending is indeed necessary (but investment, not consumption), only the State can do it in the short term - thus this calls for tax increases, on those that won't see their consumption affected: the rich. In the long run, we're all dead. John Maynard Keynes
I have some (not a lot, but some) sympathy for the idea that reducing taxes at the bottom end, maybe even by 4 - 5%, can provide a stimulus to the high street, which is likely to shed jobs if people rein in. And that sheeding of jobs will reduce confidence still further. I would also like to see benefits improved, ie that people below tax threshold got a bit more to cope with prices.
Naturally, I actually want taxes to rise at the top end, not just in the waged sector but I want significant tax rises and the slashing of exemptions for those who are well above the waged sector and hwo have benefitted disproportionatley over the last 30 years. I want the non-doms taxed, I want the tax exiles creamed, and I want foreign millionaire residents who currently pay nothing to contribute something.
As for spending, I really don't want to bail out hte financial institutions. We simply seem to be encouraging takeovers that make the "too big to fail" situation worse. I personally want a huge increase in social housing; we have a failing building sector that hasn't the confidence to make new build starts and a massive undersupply of affordable housing at the bottom end. This is a great opportunity for the govt to be pro-active in creating jobs and addressing urgent needs. And if I'm wishing for magic ponies I might as well ask for failing manufacturing to be skewed into the windfarm business.
To pay for it I want trident stopped, ID cards stopped, Iraq stopped, those stupid aircraft carriers stopped, the aircraft to go on them stopped, afghanistan turned into something useful. keep to the Fen Causeway
WASHINGTON, Nov 16 (Reuters) - Italy is preparing a multi-year plan worth 80 billion euros ($101.5 billion) to help its ailing economy, Economy Minister Giulio Tremonti announced after the meeting of 20 nations to discuss the global financial crisis. Speaking at a news conference with Prime Minister Silvio Berlusconi, Tremonti said the plan would rely heavily on European Union funds and have a modest impact on the budget deficit. It will be presented as an emergency decree "in the coming days," Tremonti said. Both Tremonti and Berlusconi said the plan was worth 80 billion euros, but Tremonti explained that half of this would actually come from the use of EU funds Italy already receives. Before the end of this month the government will "set out the utilisation of EU funds of 40 billion euros over three years for the environment, research and development", he said. Italy has generally had a poor record in managing to find a use for funds allocated to it by the EU.
Sir Win Bischoff, chairman of Citigroup, today admitted that staff numbers in London and New York will be hit "heavily" as the US banking giant revealed plans to cut 52,000 staff across the globe. The bank announced one of the biggest single employment culls in corporate history in electronic briefings with staff today. Citigroup employs 11,000 people in the UK, including 1,800 staff at Egg, the internet banking group that it acquired from Prudential, the British insurance group, in May last year. Speaking in Dubai, Sir Win said it would be irresponsible for Citigroup and other banks not to look at staff numbers in the current climate.
Sir Win Bischoff, chairman of Citigroup, today admitted that staff numbers in London and New York will be hit "heavily" as the US banking giant revealed plans to cut 52,000 staff across the globe.
The bank announced one of the biggest single employment culls in corporate history in electronic briefings with staff today.
Citigroup employs 11,000 people in the UK, including 1,800 staff at Egg, the internet banking group that it acquired from Prudential, the British insurance group, in May last year.
Speaking in Dubai, Sir Win said it would be irresponsible for Citigroup and other banks not to look at staff numbers in the current climate.
