In Paris the CAC 40 finished down 0.13% (3.99 points) to 3,008.00 points. The Paris index lost 3.89% on the week and 4.8% since the beginning of the year.

The UK FTSE dropped 1.33% and 0.60% the German Dax, while the pan-European FTSEurofirst 300 index ended down by 1.18% to 969.81 points, at lowest since December.

Going against the trend, some banks have rebounded, including Santander (2.97%) and BNP Paribas (2.94%), supported by the rumor of a reintroduction of the ban on sales to die covered on banking stocks.

Fitch downgraded the ratings on Thursday night in Greece, citing the growing risk of leaving the country monetary union, while Moody's has downgraded 16 Spanish banks, citing the ability reduced by the Spanish state to help them. 

On Wall Street, the entrance of Facebook on the Nasdaq has temporarily obscured the uncertainties created by the political situation in Greece. But the market turned downward, and the action of the first global social network, which debuted at 42.05 dollars, quickly erased its gains to return around its IPO price of $ 38.

Several Belgian newspapers reported that the Belgian government would like to replace Pierre Mariani by Karel De Boeck, former CEO of Fortis.

According to these newspapers, the current Group CEO would be willing to leave his position as number two in the bank if they receive a severance package of 1.2 million euros stipulated in its contract. 

"The Group CEO has made no request to the Belgian and French about the conditions of his eventual departure contrary to news reports published so far," re ; Pierre Mariani is in an email to Reuters.

"No decision on the replacement of the CEO and President (Jean-Luc Dehaene, Ed) Board has been taken to date" he continues.

Dexia Bank, already saved from bankruptcy in 2008 by Belgium, France and Luxembourg, was forced into last fall due to the dismantling of sovereign debt crisis. 

Luc Coene, the Governor of the Central Bank of Belgium (NBB) said Monday that the bank, which enjoys state guarantees for its refinancing needs, would probably need to be recapitalized again e.

The group has since seen its market capitalization crisis collapse. Currently, the bank is valued at about 350 million euros on the stock market with a share price at only 0.18 euros.

"CONFIDENCE TO PETER MARIANI"

Asked by Reuters, Michel Bouvard, president of the supervisory board of the Caisse des Depots (CDC), Dexia's largest shareholder with 17.7% stake, has in turn brought ; support for Pierre Mariani.

"Personally, I have every confidence in Pierre Mariani," said Michel Bouvard. "When you are in managing a complex issue, which is the case, it is better that he who began managing the file management ends until one goes to the next step. "

"I did not speak on matters of internal governance of Dexia," he nevertheless wished to emphasize.

Since the decision late last year to dismantle Dexia, the Belgian authorities have carried out the nationalization of retail banking activities in Belgium while the France has decided to return via the CDC and the Postal Bank, the activities of local government financing.

The European Commission must still approve the plan and set the price that Dexia will have to pay in exchange for 90 billion euros of state guarantees provided. 

Dexia posted a net loss of 11.6 billion euros in 2011 and some analysts said the bank could continue to generate losses in the coming years.

Although in sharp decline, the size of the stock of Dexia is considered by some analysts as a systemic failure to pay the bank would have incalculable consequences for the entire system European banking.

A year earlier, taxable income was three billion. The Reuters poll gave it to 2.4 billion euros for the period under review.

The taxable profits of the corporate and securities division, usually the main generator of profits of the bank, declined to 1.7 billion euros against 2.3 billion a year earlier.

David Koubbi me, who just succeeded Olivier Metzner to defend the prisoner for his appeal hearing in June, wrote to the chairmen of the Assembly Finance e and Senate to be surprised that SocGen could receive a tax deduction of nearly 1.7 billion euros in compensation from the e episode.

In his letter obtained by Reuters has learned me Koubbi asks Jérôme Cahuzac Philippe Marini and the convening of a commission on this episode. This request will remain a dead letter at least for now, the Parliament sitting over pending legislative elections in June

But it is a way for Jerome Kerviel, also condemned in first instance to repay 4.9 billion euros, to start the assault on his former company , it has always accused of being informed of their risk practices and turning a blind eye as they pertained.

Koubbi is me in his letter that a tax deduction for exceptional loss is legally possible that if there were no obvious deficiency in the controls. Now this is the case, since the Banking Commission fined 4 million euros to SocGen in 2008 for this failure.

"It seems to me that the allocation of that amount in favor of Societe Generale goes against the established case law applicable to the deduction tax (…) I therefore ask you to convene a committee to inform our citizens, "the lawyer wrote in his letters.

Convicted of embezzlement, forgery and using false and fraudulent intrusion into a system of data processing, Jerome Kerviel, who was also sentenced to ; repay the loss, is currently free and still has not paid, the appeal is suspensive. 

The trial court ruled that he had deliberately violated his professional engagements and hidden the reality of its position in its hierarchy.

The young man admitted pronouncements risk of dizzy from 2005 to 2008 on European equity market indices, reaching nearly 50 billion euros, and camouflaged by other reversals of orders fictitious market, expected to cover the risk.

Unsettled after the announcement of their discovery by the bank, in full rout of financial markets, these positions, which were once largely the beneficiaries, ultimately caused a net loss of 4.9 billion euros.

The index of construction costs (ICC) in France continues to climb. It increased by 6.85% year on year to reach 1,638 points in the fourth quarter of 2011, above its record dating from the previous quarter, announced the National Institute of Statistics and Economic Studies (INSEE) on Friday. The ICC, which was 1,624 points in the third quarter of 2011, had previously reached an all time high in the third quarter 2008 to 1,594 points.

Year on year, the CHF increases and 6.85% after rising 6.84% in the third quarter of 2011, 5.01% in the second quarter and 3.05% in the first quarter. Since the law of personal services from 26 July 2005, the ICC is no longer a reference to the rent review during the lease in the private rental market. He was replaced by the benchmark rents (IRL), which is now based on the index of consumer prices excluding tobacco and rents, since the enactment of the law for purchasing power in February 2008 . However, the index of construction costs is a reference for the revision of certain commercial rents, alongside the commercial rent index.

The public deficit, which includes state, local and social security funds, totaled 103.1 billion euros last year, according to preliminary results of the national accounts published by INSEE Friday.

The public debt amounted to 85.8% of GDP at end 2011, to 1.7173 trillion euros, up 122.1 billion in one year, and this leads to a more e ; up 84.9% as expected.

The deficit was the end of 2010 to 7.1% or 137.0 billion. 

Armed with this result, "we expect to accelerate our progress in reducing the public deficit to 4.4% of GDP, and keep the 3% in 2013," said the budget minister, Valérie Pécresse, in interview published Friday in Le Monde.

At 5.2% end of 2011, "it's 10 billion better than the objective of which France had undertaken", welcomed the Prime Minister, Translation ois Fillon.

"France has done much better thanks to the efforts of the French," said President Nicolas Sarkozy.

The Socialist Francois Hollande, favorite in the polls for the presidential election, pledged to cut the deficit to 4.5% end 2012 and 3.0%, the limit the European Stability Pact, the end of 2013. 

BOOST FOR 2012

The lower deficit in 2011 will ease the task of the next president, provided that economic growth does not collapse, the effort is less important.

But the trend was poor in January and a sharp economic slowdown is expected for all of 2012, likely to derail the accounts if it were larger.

Last year, the tax burden increased by 1.3 points to 43.8% of GDP, due to higher taxes (+ 7.8%).

Spending continued to decelerate, with growth of 2.1%, a rate lower than GDP growth in value, after 2.3% in 2010 . Public spending accounted for 55.9% of GDP in late 2011 after 56.6% in late 2010.

Revenues have increased it by 5.9% after 3.3% in 2010, and accounted for 50.7% of GDP from 49.5% in late 2010.

Interest paid by France to its income increased 9.5% due to increased debt and the impact of the acceleration of inflation on compensation of indexed bonds.

Operating expenses slowed, wages rising by 1.6%, after 2.1% in 2010, and intermediate consumption decreases by 1.5%.

Social benefits have remained the same dynamic in 2010, up 3.1% after 3.2%. Public investment increased by 1.6%, after falling 8.0% in 2010.

On the revenue side, taxes on income and wealth grew by 10%: the increase in tax revenues from both the corporate income tax (8.7 billion ) than the general social contribution (5.2 billion) and income tax (3.6 billion), note INSEE. Taxes on products and production are up 5.8%.

Social contributions have accelerated (+4.1% after +2.0%), in connection with the resumption of payroll and annualized general relief contributions social.

DEBT NOT ALWAYS CONTROL

The State contribution to the debt ratio increased from 90.3 billion euros last year, a somewhat larger variation than its financing needs.

The difference results from an increase in cash (5.9 billion) and loans to troubled countries in the Euro zone (10.4 billion). Conversely, the State shall be reimbursed a portion of loans to the automotive sector (4.0 billion), note INSEE.

The debt of central government bodies amounted to 10.4 billion at end 2011, down 3.7 billion, due to the deleveraging of the Company's equity participation of the State (-3.5 billion).

The contribution of local government debt reached 166.3 billion against 161.1 billion in late 2010.

The contribution of social security funds to the debt increased 30.4 billion to $ 205.4 billion. The change in debt, larger than the deficit resulted mainly from the increase in cash of social security funds (12 billion), said INSEE.

Life insurance finds the appeal to the French. Net new money (deposits less withdrawals) was positive in February in France, to the tune of 300 million euros for the first time in seven months, according to figures released Friday by the two main associations of insurers. This figure confirms the recent comments from several insurers, which reported a relative normalization of the market after a very difficult semester, unprecedented in the history of this offering.

Withdrawals down

The return to the green net inflows is primarily attributable to a sharp slowdown in redemptions (withdrawals), down 24% compared to January. They are still 21% above their level in February 2011. At the same time, payments recorded a more moderate decline of 14% compared to January 2012 and 13.5% compared with February 2011, according to figures released by the French Association of Insurance (AFA), that meets the French Federation of Insurance Companies (FFSA) and the Group of mutual insurance companies (Gema). The total amount placed on life insurance contracts has increased from 1.369 billion to 1.377 billion in January end in late February.

These figures tend to confirm the speech held by many insurers, who announced several weeks back to "a sense of normalcy," the term used by the CEO of AXA France, Nicolas Moreau, mid-February. "The movement announced inflection is confirmed over the last month," he told AFP the president of the FFSA, Bernard Spitz, while calling for caution. "It is far too early to see a trend," he warned. Life insurance, however, seems out of the rut, after a year-end nightmare.

Crisis in the eurozone and sluggish economy

The product has suffered because of the deepening crisis in the euro area, which prompted investors to favor short-term investments. But many of these products were already pushed forcefully by banks, launched a hunt for deposits in view of the arrival of the new regulatory framework, says Basel III.

Climate degradation, but also the planned reduction of Scellier, also resulted in the postponement of significant financial investments to real estate. "There was an overall campaign debt", marked, among other things, a wave of mortgage repayments, observed Mr. Moreau. He said "it is possible that at the peak of the crisis, our people have chosen to pay off debt rather than reinvest."

Calming the markets

The normalization of markets, beginning in 2012, supported by advances on Greece and off operations of the European Central Bank (ECB), have provided some form of appeasement. "The purchases have decreased significantly, people are less worried" at the end of 2011, said Thursday the CEO of the insurance arm of BNP Paribas, Eric Lombard. "On the first months of 2012, Aviva is pleased with the evolution of the collection," said Aviva France Friday. However, several factors unfavorable to life remain, primarily the arrival of the retired generation "baby boom" and the continued decline in yields. Last month, the CEO of CNP Assurances, Gilles Benoist, and had talked about "turning point".  

"Life insurance is going to find his true vocation, which is not to compete with short-term banking products, but to constitute a real reserve of long-term savings and fund pensions and dependency," he had said. A vocation that does not seem challenged by the candidates in the presidential election in a position to be elected. "On the substantive issues, there is a line of force that consensus on the left and right is one that returns a favor long-term savings," said Mr. Spitz. For him, "everybody understands that to have growth, you need investment and therefore long-term savings. I have no fear as long as this message has gone."

This series of ads comes as more directors of Veolia, which Proglio, currently head of EDF, has, according to sources familiar with the matter, considered asking for the resignation of the current CEO Antoine Frérot at a council held in late February.

Reputedly close to Proglio, the Chief Executive Denis Gasquet, Veolia leaves the group with immediate effect. Also Director of Operations, he was responsible for overseeing the implementation of cost reductions.

Olivier Orsini, who held the position of Executive Vice President and Secretary General, and Jean-Pierre Frémont, the executive vice president of public authorities and business, also leaving the Executive Committee of Veolia, and at the same time abandoning their duties within the group.

These changes were decided by Antoine Frérot to "accelerate the implementation of the strategic plan approved by the board," said Veolia in a statement.

Sylvain Boucher also joined the executive committee of which he was previously secretary. 

ACCELERATING THE STRATEGIC PLAN

The executive committee now includes, besides the CEO, seven against nine previously. Jérôme Gallot, Jean-Michel Herrewyn, Franck Lacroix, Jean-Marie Lambert, Jerome Le Conte and Pierre-Francois Riolacci to retain their seats.

In stock at 16h58, the title wins 5.07% to 12.755 euros, signing the largest increase in the CAC 40 index, which rose by 0.4% at the same time.

"The acceleration of the strategic plan and tighter around Mr. Frérot teams were well received," said a trader based in Paris.

Another market operator, also based in Paris, points out that these departures had been widely expected by the market, believing that the benefits likely to die as ; knotting of short positions as well as upward revisions of recommendations. 

"The action moves as people cheer the departure of Denis Gasquet: it was at the head of the Environmental Services division during his disastrous performance, and more recently he has overseen restructuring, "he adds.

The strategic plan of Veolia plans to refocus the group on water, waste and energy services and reduce costs of 420 million euros by in 2015.

Veolia also planned to produce five billion euros in sales in 2012-2013 and reduce net debt to below 12 billion at end 2013.

Francois Hollande promised, if he wins the presidential election in May, to close the oldest nuclear power plant the French fleet which, besides its 34 years of service, is also trè ; s criticized because of its location in a seismic zone.

But the Socialist candidate did not say when, and this schedule will be critical to network operators as to the market as they will need several months to adjust. 

Bernard Cazeneuve, in charge of energy with the candidate Francois Hollande, declined to comment on the consequences of closing Fessenheim.

If, in case of victory, Francois Hollande kept his promise in the wake of its accession to the Elysee, the French offer of electricity could shrink and prices s' fly to favor consumption peaks during which France is already operating at full production capacity, according to traders.

In France, each degree Celsius less on the thermometer causes an increase of 2,300 megawatts (MW) of electricity consumption, equivalent to twice the consumption of a city Marseille as a third of French homes are heated with electric heaters. 

During the cold snap in February, the French electricity demand hit a record 101,700 MW, 105 MW more than the country's production. Prices have skyrocketed and electricity transmission network (RTE), the network manager, was forced to ask consumers to reduce the maximum use of their devices é ; electric.

A decline in nuclear output could increase the deficit during the next peak consumption.

EDF, which manages 58 French reactors, and RTE did not wish to comment on the impact of a shutdown of Fessenheim on offer.

"We see every year a new record demand, so close Fessenheim certainly mean higher prices and risks for the supply of winter," said a trader based in electricity london. 

Traders and analysts said that France, the leading exporter of electricity in Europe, will not take the risk to close Fessenheim until you have installed production capacity sufficient to offset this loss.

"Fessenheim close perhaps in 2017, and the impact on prices will then depend on the ability of France had to quickly build wind farms, gas-fired unit and ; s biomass to compensate for the lost electricity, "said the trader in London.

At Flamanville (Manche), in 2007 EDF began construction of a new EPR nuclear reactor of 1650 MW. Delayed by 4 years, its commissioning is scheduled for 2016.

"If the EPR is again delayed, this could complicate things," said another trader.

SECURE SUPPLY

GERMAN

Also, if Fessenheim closed in 2012, Germany would face supply problems.

"If we close Fessenheim, there will be a real problem to secure supplies at local level on the southwest of Germany," said Fabien Roques, head of research at the company IHS CERA council.

"Fessenheim really brings (to Germany) production at a specific location on the network for managing peak demand during cold snaps," he added.

The plant, located between Mulhouse and Freiburg, has a capacity of 1,800 megawatts. 

After the disaster of Fukushima, Japan in March 2011, Germany decided to close eight of its 17 nuclear reactors, four of which were located in the south-west , a heavily populated area that is home to large cities such as Stuttgart and Heidelberg.

This region is now importing more electricity from the north – which produces massive electricity from wind – but also from France, Belgium and Luxembourg, according to analysts.

A spokesman for EnBW Transportnetze, the electricity transmission network in south-west Germany, confirmed to Reuters that a closure of Fessenheim would impact on its network . Should be used more frequently to production sites and non-nuclear alternative to maintain balance in the region, she said.

Main black spot, a plant closure could jeopardize Alsatian drawing rights granted to the German supplier E.ON, 800 MW from the central French Fessenheim and Cattenom, also near the German border .

These rights could be redirected to other stations, said a spokesman for the German utility, adding that the exchange agreement may be renegotiated between the two countries.

The ECB considers this unprecedented opportunity, while growing fears of an explosion in the euro area affect the interbank market, banks tend to reduce the number of establishments to which they lend.

For now, the maximum maturity of liquidity operations of the ECB is one year.A bank to finance two or three years from the ECB, it could be misinterpreted. "

Another source said that the ECB was considering the possibility of providing liquidity to maturity in the same vein through several short-term loans, pledging to keep such a line of credit for a period up to three years.

In June 2009 the ECB has proposed for the first time refinancing operations to one year. She repeated this year with a LTRO to 12 months in October and 13 months in December.