Global spat erupts over power of developing countries at IMF

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“A deal to double the IMF’s resources between its 188 members was first struck in April 2009 when Gordon Brown hosted the G20 summit in London. It was formalised in November the following year, and wrapped up with governance reforms to give developing economies more seats on the managing board.  But the Obama administration is believed to be dragging its feet because the agreement would formally release roughly $55bn to the IMF that its political opponents could paint as bail-out funds for the eurozone. With just a month to go before the presidential elections, the sign-off comes at a sensitive time.”

http://www.telegraph.co.uk/finance/financialcrisis/9601631/Global-spat-erupts-over-power-of-developing-countries-at-IMF.html

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Mass rally in Venice to call for independence from Italy

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“Inspired by the nationalist aspirations of Scotland and Catalonia, pro-independence campaigners will hold a mass rally in the heart of the lagoon city on Saturday, calling for an urgent referendum to be held on the issue.  Indipendenza Veneta, a newly-founded pro-independence movement, says it expects several thousand people to turn up for the rally.  They will be ferried across the Grand Canal in gondolas to deliver a ‘declaration of independence’ to the headquarters of the Veneto regional government.  Activists want to carve out a new country in north-eastern Italy. The ‘Repubblica Veneta’ would encompass about five million people.”

http://www.telegraph.co.uk/news/worldnews/europe/italy/9589732/Mass-rally-in-Venice-to-call-for-independence-from-Italy.html

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Police on Alert As Merkel to Visit Greece

“German Chancellor Angela Merkel brings her tough-talking advocacy for austerity to ground zero of the European debt crisis Tuesday, and police in Athens are so nervous they are employing as many security measures as they would for a visit by a U.S. president.  Police have flooded the streets with 7,000 additional officers and hundreds more undercover agents, stationed snipers on rooftops, closed a half dozen subway stations and sent helicopters to hover over the city to help protect the German chancellor from expected massive demonstrations.”

http://abcnews.go.com/blogs/headlines/2012/10/police-on-alert-as-merkel-to-visit-greece/

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Europe’s Richer Regions Want Out

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“Catalonia may be the catalyst for a renewed wave of separatism in the European Union, with Scotland and Flanders not far behind. The great paradox of the European Union, which is built on the concept of shared sovereignty, is that it lowers the stakes for regions to push for independence.  While a post-national European Union may be emerging out of the euro zone crisis, with a drive for more fiscal union and more centralized control over national budgets and banks, the crisis has accelerated calls for independence from member countries’ richer regions, angry at having to finance poorer neighbors.”

http://www.nytimes.com/2012/10/07/sunday-review/a-european-union-of-more-nations.html?_r=1&adxnnl=1&adxnnlx=1349708610-0wiUgEQH0zfTgIWlASKU6g&pagewanted=all

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A message from Spain to The United States of America

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Euro Pacific Capital Global Investor Newsletter: October 2012

“Just a few short years ago, joining the Eurozone was the cherished hope of many of Europe’s poorest countries. Greece was so desperate to get in that it hired Goldman Sachs, which only helped to obscure further the extent of the Greek budget deficit. Now, several years into the European debt crisis, it’s not simply that some countries may want out (like Finland) but that potential new members no longer want in.”

http://www.europac.net/global_investor_newsletter_october_2012

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Spain Finance Minister’s ‘No Bailout’ Remark Sparks Laughter

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“‘Spain doesn’t need a bailout at all,’ de Guindos said, straight faced and somber, as mirth spread throughout the audience — even de Guindos’ assistant interpreter couldn’t mask a smile.  Not to be perturbed by the disbelieving audience, whose giggles audibly spread throughout the room, de Guindos said that Madrid’s reform program was sufficient to stave off a full sovereign bailout and that the European Central Bank’s (ECB) bond-buying program would suffice to help Spain recover.”

http://www.cnbc.com/id/49298217

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France Targets Deficit Cut With Tax-Hiking Budget

“The government confirmed a temporary 75 percent super-tax rate for earnings over one million euros and a new 45 percent band for revenues over 150,000 euros.  Together, those two measures will bring in around half a billion euros. Higher tax rates on dividends and other investments, plus cuts to existing tax breaks will bring in several billion more.  The budget will also disappoint pro-reform lobbyists by merely freezing France’s high public spending rather than daring to attack ministerial budgets as Spain did this week in a bid to avoid the conditions of an international bailout.”

http://www.cnbc.com/id/49206756

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Lazio governor Renata Polverini resigns amid Italian scandal

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“The governor of the Italian region of Lazio has resigned over the alleged embezzlement of €1m in public funds, which were reportedly used to buy cars, holidays and expensive dinners.  Calls for her resignation had grown amid public anger after photos were published of a bawdy toga party hosted by a member of Lazio’s regional council, where men wearing pig masks fondled female guests.  The scandal is set to reinforce voters’ views of Italy‘s elected officials as overpaid and corrupt, increasing doubts over their ability to gain office and govern effectively next year, when Italy’s technocrat government headed by Mario Monti is expected to step down.”

http://www.guardian.co.uk/world/2012/sep/25/lazio-governor-resigns-amid-scandal?newsfeed=true

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Be Very Careful, Beloved Spain

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“Do [those advocating military actions] speak for the Armed Forces? One assumes not. One awaits a categorical denial from King Juan Carlos, from premier Mariano Rajoy, and from the cupula of the Armed Forces that such a course of action is being considered.  The Draghi bond plan can certainly put off the day of reckoning. It can lower borrowing costs across the board and cushion the slump. But it cannot in itself stop the slow asphyxiation of these societies. We are moving from the financial phase of this crisis to the full-blown political phase. It really is playing out like the 1930s.”

http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100020330/be-very-careful-beloved-spain/

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