The FX Report

French far-right candidate Marine Le Pen, who today reiterated his attacks on Europe, has become the Chief Whip of the euro currency rejecting half of the ten candidates for the presidency.

The single currency has become a weapon to attack the two main candidates, Socialist Francois Hollande and the outgoing president, the conservative Nicolas Sarkozy, both supporters of the euro.

Le Pen and Nicolas Dupont-Aignan sovereigntist are the most militant against the single-currency, although a recent survey says that two out of three French people are favorable to the euro.

The leftist Jean-Luc Mélenchon, fighting with Le Pen for third place in the first round next Sunday, is less categorical, but committed to changing the role of the European Central Bank (ECB) so you can pay directly to countries need.

In the event that the other partners do not accept this proposal, the candidate of the Left Front, where he joined the French Communist Party (PCF), does not rule out the euro.

Something similar happens to the Marxist and Trotskyist Nathalie Artaud Poutou Philippe, declared enemies of the “Europe of finance” symbolized by the single-currency.

The left-wing Gaullist Jacques Cheminade, the candidate who polls place in the last position, believes that “the euro has died, has self-destructed.”

But the hardest attacks to the single currency from the countryside of Le Pen.

The National Front candidate committed to a referendum to leave the euro and the franc as rescue national currency, a weaker currency would improve the competitiveness of Gallic products in international markets, while France would recover monetary sovereignty.

“The euro crisis rages, Spain is the latest victim and can not save,” said Le Pen, the third in the polls closely with Mélenchon.

The far-right candidate states that “Europe was one of the most prosperous continents of the world” before the euro and now “is in bankruptcy, with unemployment and poverty exponential.”

He contrasts the situation in the euro area with that of the European Union countries that do not have the single currency, such as Sweden, where growth is higher.

“We say it does not work because there is not enough Europe. But the reality is that the more we build Europe, worse going on. Somewhere there must be a problem,” he adds.

Sections of the UGT union factories in Cadiz and Seville Alestis called today to guarantee the salaries of 1,800 workers Andalusian aeronautical group in its nine plants in Spain after submitting the notice of voluntary bankruptcy creditors.

In a statement, the federation of metal, construction and related UGT-A has reported the meeting of the unions and was also called for the consolidation of the aviation group.

He expressed concern about the economic situation of Alestis, which has had to file bankruptcy notice (formerly suspension of payments) to gain time in the negotiations it has with a group of banks to meet their payments resulting primarily program of the new A350 airliner.

The regional federation of metal UGT request meetings with management of the company and its main client (Airbus) to transfer their priorities on maintaining employment, payment of wages and continuity of the project industry.

He has also sued the Government of Andalusia and the various Alestis shareholder seeking new avenues of credit and to ensure to all of the monthly payment of employees of the factories that make up the group.

It has also required the new members of the board of directors engaged in a work Alestis firm, committed and determined in the consolidation of the industrial project as a contractor class.

The International Monetary Fund (IMF) warned today that unless policies applied coordination and supervision required to calm the “volatility” in the eurozone, the region’s GDP could fall by 1.4% until 2013 and reiterated that Spain and Italy major concern.

The multilateral organization recognized, however, that “risks have declined” due to fiscal reforms introduced and liquidity injections made ​​by the European Central Bank (ECB).

“Achieving safe positions will take time for tax, sovereign debt is exposed to sudden changes in investor perceptions,” the IMF said in its financial report today, which considers the “credit crunch” as one of the big brakes .

“The answer is more and better Europe,” said Jose Vinals, director of the IMF Financial Affairs in a press conference.

The risks come from an excess of debt reduction in the speed of European banks, which are subject to high stresses, as “must deal with sovereign debt risks, weak growth, and demands to strengthen their capital cushions.”

Therefore stressed the importance of strengthening European coordination and providing a path to complete “a pan-European financial stability framework.”

In the positive scenario, if put into practice the measures required by supervision and encouragement at European level, the IMF estimated that the euro zone growth expected to rebound by 0.6% over the next two years.

The latest IMF estimates for the euro area, which serve as the basis of these two alternative scenarios, forecast a contraction of GDP in the eurozone by 0.3% in 2012 and grew 0.9% in 2013.

The Government today has become clear to leave their willingness to meet the deficit targets committed “however great the magnitude to reduce”, and even through the intervention of the regions where they are unable to meet its financial obligations.

So far have been returned “by his inconsistency” to several autonomous adjustment plans for improvement before the Council of Fiscal and Financial Policy (CPFF) next May, as explained by Secretary of State for Public Administration, Antonio Beteta .

These adjustment plans that communities have been referred to the Treasury, will involve a saving of 10,000 million euros, to be added to the 10,000 to be cut health and education.

Appearances before the Budgets Committee of the Congress of Deputies have been marked by the unambiguous message of compliance with a deficit of 5.3% of GDP in 2012 and 3% in 2013, after a report of the International Monetary Fund ( IMF) alert of possible deviations.

In this regard, the Secretary of State for Economic and Business Support, Fernando Jiménez Latorre, has emphasized that the report does not include the latest measures taken by the Executive and even computes budgets this year.

He has also defended the “significant effects” that the announced reforms in health and education will have on fiscal consolidation, because these items consume most of the autonomous budget.

But in the case of regions to express the impossibility of meeting its financial obligations may be seized and the government will take care of your finances straight.

“We will look at the political color, which is irrelevant, but the necessity of enforcing the law, which is absolutely relevant,” said Beteta inadvertently reveal what communities have returned adjustment plans, in some cases by “serious discrepancies” and others for “minimal explanations.”

But if these discrepancies persist, do not adopt its adjustment plan and start implementing the plan of stability provided by law.

“We will meet the deficit. Nobody has the slightest doubt, however difficult the situation may be and however great the magnitude to reduce”, has made clear the Secretary of State Beteta.

“If we are to have credibility and build trust, he added, we demonstrate that our word is worth something, that is not pure smoke and that is far from the financial tightrope.”

Therefore, according to Jimenez Latorre, the budget for 2012 is “ambitious and austere” and set to the “needs” of the Spanish economic policy to address current challenges, particularly the high rates of unemployment and debt.

The secretaries general of the UGT and CCOO in Catalonia, Jose Maria Alvarez and Joan Carles Gallego, have described today as unjust and improvised proposal of the Government co pharmacist and have wondered what will happen in Catalonia, where the government introduced the so-called CiU “moderator ticket” to levy one euro each recipe.

Speaking to journalists at the presentation end of ILP to modify the mortgage law, Gallego said that the proposal “is an insult to democracy because it has not undergone any social debate and also make it from Mexico.”

“There is a logical proposal, because all they do is impoverish the citizens, and does not solve the sustainability of the health system,” he added.

Gallego recalled that citizens already pay their taxes “and you have to do is go after those who do not, on large fortunes, for example.”

For Alvarez, the pharmaceutical co-payment proposal is “evidence that this ignores and despises society.”

“What we have to do is to streamline the health system, but the government improvised,” added the leader of UGT.

The two Secretaries-General have both highlighted the “enormous political disorganization of how you are doing things” between the government and the ACs and wondered if the Catalans will have to pay “twice”, referring to the Government intends to establish payment of one euro per prescription.

Nearly 500 scientific experts will meet this fall tourism in Galicia to study innovation and new experimental tourism.

The XVII International Congress, organized by the Spanish Association of Scientific Experts in Tourism (AECIT) will be held from 21 to 23 November in the town of Ourense Carballiño and was released today by the Regional Minister of Education and Culture, Xesús Vazquez.

The panel discussion between professionals and experts from various countries will aim to match supply with the characteristics of the visitor, informs the regional government in a statement.

Vazquez stressed in his speech that education and training are the pillars for the construction of Galicia.

In this sense, he considered important to “develop forums for experts and professionals in the new concepts and lines of work in tourism, focused on creating and developing high potential tourism products and experiences to offer high value added, unique and personalized. ”

For the Regional Minister, is “essential” to improve the capacity and knowledge of prospective key issues in decision-making “in a matter so sensitive and so important economically and socially as tourism.”

In presenting the general secretary also spoke for Tourism, Carmen Pardo, who said that this conference will help the “tourist exchange of knowledge and technical cooperation nationally and internationally.”

He added that it “will help stimulate the area, in a time of year in which all initiatives are grateful for the seasonality of tourism in the territories.”

The risk premium of Spain fell to 10.45 below 400 basis points (399.5) for the first time in two weeks after the yield on ten-year Spanish, whose differential with Germany the same period to measure country risk was reduced to 5.759%, from 5.8% previously.

After closing yesterday at 414 basis points, the additional cost that investors demand for buying Spanish sovereign debt rather than German, which is considered safer, began today’s session almost unchanged at 415 basis points.

Spain’s country risk has been far below the 400 basis points since April 4, a time at which doubts about the growth potential of the Spanish economy and even a possible bailout for the country placed the country risk highest since last November.

In particular, the lack of investor confidence on Spain’s ability to meet their commitments to debt and deficit reduction is mitigated yesterday after the excellent reception the issuance of letters found at 12 and 18 months, where although the Treasury practically had to bend forward to the demand of the entities went beyond all expectations.

Spain held tomorrow other debt issuance, debt maturing in 2014 and 2020, which expects to attract between 1,500 and 2,500 million euros.

As for the risk premiums of other countries in the euro area, Italy and Portugal the narrowed at this hour, up to 364 basis points to 1,069 the first and the second, while that of Greece grew to 1,955 points .

Secretary of State for Economic and Business Support, Fernando Jiménez Latorre, today defended the “significant effects” that the announced reforms in health and education will have on fiscal consolidation.

Speaking at the Congressional Budget Committee of Deputies, Latorre has insisted that the budget balance is the primary goal that directs all government economic policy, including reforms of the health and education, with which aims to save 10,000 million euros.

Speaking to the media after the hearing, noted that the items of health and education consume most of the budget of the Autonomous Communities, so that spending must be reduced to reach the deficit target of all government for this year.

Has described the 2012 budget as “ambitious and austere” and set to the “needs” of the Spanish economic policy to address current challenges, particularly the high rates of unemployment and debt.

Recognized that these problems are not resolved in the short term, but it is necessary to implement a “strategy to generate a turning point in the negative inertia of the Spanish economy” and overcome “bottlenecks impeding growth “.

So, have you considered that fiscal consolidation will “restore confidence” in Spain, which will result in improved financing conditions and, in turn, the economy.

Also contribute to this objective the measures adopted to improve the transparency of government, which in time will detect deviations in the deficit target.

Jimenez Latorre has defended the reforms approved by the Government, particularly labor and financial target for though “partial problems” are aimed at a global goal.

Secretary of State explained that the budgets for this year are based on a macroeconomic “unfavorable,” while “realistic and prudent” in order to avoid “projections that threaten the achievement of objectives” .

Thus the Government’s forecast that the Spanish economy to contract by 1.7% in 2012, mainly due to a fall of 3.9% of private domestic consumption and 8% of the demand for government.

Iberia today announced a cut in salary costs of its pilots, which has moved the union that represents them, Sepla, to warn the company that will not find many points of contact with them if he persists in this attitude in the context of negotiations on the strike have called.

The reduction of unit costs the airline aims to be achieved through a reduction of 12% of the wage and other measures that are an additional 8% cut in labor costs of the pilots.

As for the negotiations on the strike, sources with the Ministry of Public reported that already in the department has received the necessary documentation to initiate a possible labor mediation between the Spanish airline and its pilots to end the 30 days stoppages called by unions until July.

The company has sent a report that includes their differences with the union Sepla-Iberia, which will be sent to the pilots union for both parties to reach an agreement. If a settlement is not reached, the Ministry of Development would mediate the conflict.

Iberia has stressed that the group of pilots is the only one that has not reached an agreement on the collective agreement after more than two and a half years of negotiation, which has led to the determination to raise the pay cuts.

Meanwhile, Sepla-Iberia has described as “provocation” this measure, which was communicated to the union at the meeting sponsored by Fomento, maintained yesterday the representatives of the pilots with the address.

In addition, the organization considers the attitude a “disloyalty to the good faith and interest” shown by the Government in unlocking the strike.

The lowering of wages is part of a package with other measures including the disappearance of pension funds for these workers, layoffs of pilots who lose their sick flying license and the disappearance of clauses limiting any flying, according to the union.

In addition, Sepla said that raises the disappearance of the obligation for the company to grow “in proportion” to British Airways and the extinction of clauses “guarantee Spanishness” Iberia Madrid-Barajas and Barcelona-El Prat.

This shows an attitude “cruelty” with the pilots, according to the union.

On 9 April the Sepla began a wave of strikes, which is called today: there are thirty days for every Monday and Friday until 20 July, and then of the twelve are between December and February in protest the creation of low-cost subsidiary Iberia Express, which began operations on 25 March.