French News - 21 February
Monday, February 20, 2012 at 12:31PM
Eurozone ministers back 130bn-euro bailout for Greece
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Eurozone finance ministers have agreed a second bailout for Greece after 13 hours of late-night talks in Brussels.
Greece is to receive loans worth more than 130bn euros (£110bn; $170bn).
In return, Greece will undertake to reduce its debts to 120.5% of its GDP by 2020 and accept an "enhanced and permanent" presence of EU monitors to oversee economic management.
Greece needs the funds to avoid bankruptcy on 20 March, when maturing loans must be repaid.
After five straight years of recession, Greece's debt currently amounts to more than 160% of its Gross Domestic Product.
The euro immediately rose on reports of the deal.
Deeper cutsThe agreement was announced early on Tuesday by Jean-Claude Juncker, prime minister of Luxembourg and chairman of the eurozone finance ministers group.
Mr Juncker said the "far-reaching" deal would lead to "a very significant debt reduction for Greece" and ensure its future within the eurozone.
He said "the eurogroup is fully aware of the significant efforts already made by the Greek citizens".
What went wrong in Greece?
- Greece's economic reforms, which led to it abandoning the drachma as its currency in favour of the euro in 2002, made it easier for the country to borrow money.
The deal also means that private holders of Greek debt will take losses of 53.5% on the value of their bonds.
When all the elements of the exchange are accounted for, the loss to investors is expected to be as much as 70%.
Eurozone leaders and the IMF said in October that Greek debt should be reduced to a more sustainable level of 120% of GDP by 2020.
The deal provides for the presence of EU monitors of Greece's economic management as some members doubt Greece's commitment to its spending pledges.
Greece will also have to pass within the next two months legislation that gives paying off the country's debts priority over funding government services.
Successive rounds of austerity measures, demanded by Greece's international creditors, have failed to restore growth and have provoked clashes between protesters and police.
The Greek government fell last year after ex-Prime Minister George Papandreou called for a referendum on the eurozone rescue package.
He was replaced by Mr Papademos, an unelected technocrat who is expected to lead Greece until parliamentary elections in April.
Measures passed by parliament last week set out 3.3bn euros' worth of cuts to salaries and pensions, and to health and defence spending - sparking a fresh series of protests.
Analysis
This is in effect uncharted territory for the eurozone - a managed Greek default, with over 50% of the country's private debt being written off. This was not even being considered as an option several months ago.
But the Greek people will be sceptical about this bailout. The deal that has been agreed will mean more austerity and spending cuts, and even more pain for Greeks.
Greeks say that the country's middle classes who have worked hard and pay their taxes are, unfairly, bearing the brunt of a crisis they did not create. They feel Greece's notorious corrupt politicans and wealthy Greeks who evaded tax are to blame.
But he added that "further major and joint efforts by all parts of the Greek society are needed to return the economy to a sustainable growth path."
The head of the IMF, Christine Lagarde, who also took part in the negotiations, said the deal "should give enough space for Greece to restore its competitiveness".
Speaking after the deal was reached, Greek Prime Minister Lucas Papademos said he was "very happy" with the outcome.
The BBC's Stephen Evans in Brussels says the agreement will mean deeper cuts in public spending that Greece had planned.
It also means there should be no default or any knock-on effects in the rest of the eurozone - at least for the moment, our correspondent adds.
But he says big questions still remain - including whether imposing medicine of this harshness will make the Greek economy stronger.
A first rescue package worth 110bn euros in 2010 was not enough to avert Greece's deepening crisis.
Coach crash: Driver investigated over 'involuntary homicide'
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The accident occurred on the A26 motorway near Chalons-en-ChampagneDerek Thompson, 47, was behind the wheel of the vehicle when it went down an embankment on the A26 motorway.
Peter Rippington, 59, who taught at Alvechurch School, died and more than 20 people were hurt in Sunday's crash.
Pupils from the school were returning from a skiing trip in Italy at the time of the crash.
According to the Foreign Office, seven people remain in hospital, including a 13-year-old girl who underwent surgery in Paris.
'Repeatedly swerve'Mr Thompson appeared before a judge on Monday afternoon and is now free to return to England on the condition he will attend a French court at a later date.
In a statement, the Rheims prosecutor said Mr Thompson had been questioned by the examining magistrate (EM) on Monday afternoon.
"He explained to the EM that he had no recollection of the circumstances of the accident.
"He is under investigation for involuntary manslaughter and involuntary wounding."
Prosecutor Christian de Rocquigny said: "Witnesses who were driving in the area near the coach saw the vehicle repeatedly swerve towards the verge.
"The tachograph indicates some unexplained variations in speed in the nine minutes before the accident, the judge explained.
"While being questioned the driver, having denied falling asleep, has acknowledged that it was possible that he did so."
Police in France have confirmed Mr Thompson, who suffered minor injuries, tested negative for both drugs and alcohol.
There was also no evidence of him having worked excess hours or speeding at the time of the incident.
The school party had been on a skiing trip to Val d'Aosta, organised by travel company Interski.
The Mansfield-based firm said the crash happened at about 02:30 GMT, near the city of Rheims, as the party made its way home aboard two coaches.
The Foreign Office said it was working closely with French authorities and was also assisting the passengers involved and their relatives.
There had been 20 adults - including two drivers and six ski instructors - and 29 schoolchildren on board, the company added.
The vehicle involved was owned by Solus Coaches, which is based in Tamworth, Staffordshire. A spokesman for the coach company said it was "saddened" to hear of the crash and offered its "sincere condolences" to the family and friends of Mr Rippington.
Peter Rippington died in the crash and his wife, Sharon, was also hurtMost of the children have now arrived back in Worcestershire.
Tributes have been paid to Mr Rippington, whose wife Sharon and daughter Amy were also injured in the crash, at the Church of England middle school, which opened as usual following the half-term break.
Speaking outside the school Bryan Maybee, chair of governors, offered his condolences to those "affected by this tragic accident".
He said: "[Peter Rippington was] a dedicated and inspirational teacher.
"We continue to wish for the swift recovery and safe return of those currently being treated for injuries abroad.
Mr Maybee was joined by the Reverend David Martin, rector of Alvechurch, who said Mr Rippington "was so much part of this community" and that he had given "his whole life to Alvechurch Church of England Middle School".
West Mercia Police said it was supporting the families of the children and members of the staff involved and family liaison officers had been put in place at the school.
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Eurozone Greek bailout talks begin in Brussels
Some eurozone ministers doubts Greece's austerity pledges
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Eurozone finance ministers are holding talks in Brussels aimed at securing a second vital bailout for Greece.
They have said they are hopeful of reaching a deal, with France's Finance Minister Francois Baroin saying all the elements are in place.
But his Greek counterpart Evangelis Venizelos said haggling would go on "until the very last minute".
Athens needs the 130bn euros (£110bn; $170bn) in order to avoid bankruptcy next month, when loans must be repaid.
The rescue plan would also write off 100bn euros of debt, with private lenders accepting a 70% reduction in what Greece owes them.
In return, they would receive cash and new bonds, expected to mature in 30 years' time.
Negotiations to write off even more debt are being held in parallel in Brussels between Greek officials and their international lenders on the one hand, and bank chiefs on the other, say officials.
'Permanent presence'
This is the second time Greece has sought a bailout from international lenders.
Jean-Claude Juncker - prime minister of Luxembourg and chairman of the eurozone finance ministers group - said Greece had fulfilled many of the conditions asked of it and he was hopeful the talks would be "the final consultations".
"I am of the opinion that today we have to deliver, because we don't have any more time," he said.
German Finance Minister Wolfgang Schaeuble also said he was "optimistic" a deal would be reached, while Mr Baroin said he would plead for the deal.
"All the elements are in place... both with the bankers, private sector creditors, and public sector creditors, the states and central banks," he told Europe 1 radio.
But as the talks began, Dutch Finance Minister Jan Kees De Jager said he would like to see "some kind of permanent presence" by the EU, International Monetary Fund (IMF) and European Central Bank (ECB) over Greece's revenues and public expenditure.
"When you look at the derailments in Greece which have occurred several times now, it is probably necessary," he said.
Elections ahead
After five straight years of recession, Greece now has a debt greater than 160% of its Gross Domestic Product (GDP).
Eurozone leaders and the IMF said in October that Greek debt should be reduced to the more sustainable level of 120% of GDP by 2020.
Successive rounds of austerity measures, demanded by Greece's international creditors have failed to restore growth and have provoked clashes between protesters and police.
The Greek government fell last year after ex-Prime Minister George Papandreou called for a referendum on the eurozone rescue package.
He was replaced by Lucas Papademos, an unelected technocrat who is expected to lead Greece until parliamentary elections in April.
Measures passed by parliament last week set out 3.3bn euros' worth of cuts to salaries and pensions, and health and defence spending.
Several thousand people protested in Athens on Sunday against further cuts agreed by Mr Papademos' cabinet on Saturday - but the numbers were far reduced from the tens of thousands who protested last week.
Mr Venizelos has said he now expects the "long period of uncertainty" to end.
"The Greek people send to Europe the message that they have made, and will make, the necessary sacrifices for our country to regain its position of equality within the European family," he said in a finance ministry statement issued in Brussels on Monday.
IMF chief Christine Lagarde praised the work Greece had done so far and said the IMF was ready to work with them.
US Treasury Secretary Timothy Geithner said the US was encouraging the IMF to support the bailout, but it is not clear how much the IMF will contribute.
Some eurozone finance ministers doubt Greece's commitment to its spending pledges and want strong mechanisms to ensure its debts are paid.
It is not yet clear how the eurozone intends to keep the pressure on Greece to ensure it fulfils its commitments, says the BBC's Europe editor, Gavin Hewitt.
And, he adds, there are doubts that even with the bailout Greece will be able to reduce its debt to a sustainable level.
Funds from elsewhere may need to be found. A first rescue fund of 110bn euros in 2010 was not enough to avert the crisis.
How bond swaps work
- · Governments borrow money by selling bonds, promising to pay a lump sum in future and interest in the meantime
- · With a bond swap, the investors give up the original bonds in exchange for new ones with different payment terms
- · In the case of Greece, it is expected that the final payment will be half the original amount
- · When all the elements of the exchange are accounted for (including the discounting of future cash flows), the loss to investors is expected to be as much as 70%
- · Final repayment will be pushed further into the future, although investors will get some of their cash almost straight away
Analysis
BBC Europe editor, Brussels
Greek ministers and European officials vividly describe the catastrophe if Greece defaults. "If there is a default," said the German centre-right MEP Elmar Brok, "then there would be no pensions, no salaries at all. It would become a failed state."
No-one pretends that default would be an easy option.
There would be a run on the banks and, at the most elemental level, there would be the question of how soon a new drachma could be printed and distributed.
But those who oppose the new bailout package argue that Greece is not being saved from the fate of a failed state, but being pushed into one - and for years to come.
France recalls Rwanda ambassador from Kigali
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France has recalled its ambassador to Rwanda Laurent Contini after the authorities in Kigali refused to accept Paris's choice of a new envoy. WeeklyJeune Afrique had reported that Kigali earlier this month rejected the nomination of Hélène Le Gal, currently France's consul in Quebec, because she was considered too close to French Foreign Minister Alain Juppé.
The magazine said Juppé "has long been considered hostile to the current authorities in Kigali."
Juppé, who was also foreign minister during the Rwandan genocide in 1994, has said he will not "shake hands" with Kagamé or go to Rwanda following the release of a 2008 report accusing France of complicity in the genocide.
Juppé, who has dismissed the report as "lies and fabrications", did not meet his Rwandan counterpart when she visited France and was outside the country during Kagamé's visit.
Despite differences over the choice of a new envoy, French foreign ministry spokesman Vincent Floreani said he two countries had a good relationship.
"Relations between France and Rwanda have not stopped strengthening since the visit of the president to Kigali in February 2010, which sealed at the highest level the political and economic recovery between our two countries," he said.
Contini, considered close to former foreign minister Bernard Kouchner, fell out of favour with Juppé last year after making statements considered too favourable to Kigali.
France and Rwanda have a history of difficult ties and relations between the two countries were broken off between 2006 and 2009.
Tensions have eased this year after experts mandated by a French inquiry to probe the 1994 downing of Rwandan leader Juvenal Habyarimana's jet cleared Kagamé's aides of involvement.
The assassination of Habyarimana was one of the triggers that unleashed a genocide that left around 800,000 Rwandans dead.
Following the 1994 attack, hardliners from the slain president's Hutu ethnic group, led by members of his inner circle, began to slaughter members of Kagamé's Tutsi minority.
Kagamé's rebel FPR eventually managed to overthrow the Hutu-led regime.
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Fuel: "lead free" crosses bar of 1.60 € per litre
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The average price of a litre of unleaded 95 rose to 1.614 euro to 18 February, while the super unleaded 98 averaged 1.64 euro.
With the cold and geopolitical tensions but also the weakness of the euro, the price of crude oil, the direct cause of the pump price, never ceases to be increasing. Even before the announcement of the cessation of Iranian oil sales to France and the UK , the barrel had almost never been sold as expensive in the history of oil. And fuels are being moved to record levels in France.
Last week, all the average prices of unleaded passed the symbolic threshold of 1.60 euro per litre, including VAT. Since 1 stJanuary 2012, the average fuel prices increased 8.5 cents per litre of gasoline (5.5%) and 6.5 cents per litre of diesel (+ 4.7%).
Secretary of State for consumption Frédéric Lefebvre has recently announced a version dedicated to mobile phones official website www.prix-carburants.gouv.fr, which allows motorists to compare prices at service stations. This mobile version available at www.prix-carburants.gouv.fr/mobile
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Eleven treated in hospital after fatal coach crash
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Tests show driver was not under influence of drink or drugs when the coach flipped over near Reims, northern France
Peter Rippington, the maths teacher killed in the coach crash, and his wife Sharon, who was injured. Photograph: Foreign & Commonwealth Office/PA
Eleven people remain in hospital in northern France after a coach crash involving 29 British schoolchildren and 13 adult supervisors .
A teacher, Peter Rippington, died in the accident near Reims, which happened as the party was returning from a ski trip.
Six people were said to be seriously injured although their condition was not life-threatening, according to a local prosecutor investigating the crash. A 13-year-old was transferred to the Necker children's hospital in Paris where she underwent surgery.
Initial tests on the driver, who received minor injuries, showed he was not under the influence of alcohol or drugs, and local police are believed to be investigating whether he might have fallen asleep at the wheel. Another driver and six ski instructors were also on the coach, which flipped over and came to rest at the bottom of an embankment on the A26 at Châlons-en-Champagne.
Tributes have been paid to Rippington, head of mathematics at Alvechurch middle school in Worcestershire, who died in the crash. The school was open on Monday with pupils and adults being offered counselling. Police officers were on duty at all three entrances as pupils and parents arrived, some in tears.
Dozens of bunches of flowers and notes of sympathy in memory of Rippington had been left around a flagpole inside the school grounds.
A photograph of the teacher with his wife Sharon had been placed near the tributes. She and their daughter Amy were injured in the crash. In a statement, the Rippington family said they were devastated, describing the 59-year-old as "a wonderful husband, father, son, brother, son-in-law, brother-in-law, uncle, friend and teacher".
Rippington was a "dedicated and inspirational teacher", Bryan Maybee, chairman of the school's governors, said in a statement read outside the school. "He will be so sadly missed by all those who knew him."
After confirming that staff and children who were well enough to travel arrived back from France late on Sunday night, he added: "We continue to wish for the swift recovery and safe return of those who are currently being treated for injuries abroad.
"The school is open today and I can reassure you that specialist support is in place for children and staff."
Rev David Martin, the rector of Alvechurch, said: "The church community are holding all those affected by yesterday's shocking crash in our prayers, especially Peter's family. Peter was very much part of the wider community in Alvechurch and was known and liked by many"
St. Laurence's Church in the village was open to give people an opportunity to say prayers and light candles for Rippington, he said.
Pupils left a message that read: "Dear Mr Rip, you will be truly missed. You were a one-of-a-kind teacher and you can never be replaced. You were funny and kind and always made everyone's day.
"We will love and miss you forever and always."
Kate Vanderplank, who has two sons who were taught by him, said: "He was a fantastic teacher, really special. He was great not just within the school but in the community as well."
Vanderplank said her children were both in shock. A female pupil told Sky News: "He was an amazing teacher. You could talk to him about anything. He would just sit and listen."
Twenty-seven people were taken to two hospitals following the crash, with 22 of those said to have minor injuries.
Interski Snowsport School, the company that arranged the trip, said it was "saddened and distressed". In a statement, it offered its condolences to Rippington's family and friends and sympathy to those injured and others involved in the incident.
The bus was owned by Solus Coaches, which is based in Tamworth, Staffordshire, and was chartered by the ski company. "Our thoughts are with the bereaved, to whom we offer our sincere condolences," said a spokesman. "We are also obviously highly concerned for the welfare of the injured passengers and all others involved in this incident."
The Foreign Office is investigating the accident and providing consular assistance.
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China rebukes Iran for France, UK oil ban
China buys around 20 percent of Iran's oil exports
(Reuters) - China rebuked Iran on Monday for stopping oil sales to British and French companies at the weekend, calling for renewed efforts at dialogue over an escalating stand-off over Tehran's controversial nuclear programme.
China has repeatedly called for talks over Tehran's efforts to enrich its own uranium, which Western countries suspect is aimed at obtaining nuclear weapons. Iran has said the enrichment is for power generation.
"We have consistently upheld dialogue and negotiation as the way to resolve disputes between countries, and do not approve of exerting pressure or using confrontation to resolve issues," Chinese Foreign Ministry spokesman Hong Lei said when asked about Iran's ban on oil sales to British and French firms.
China "hopes all sides can get back onto the correct path of dialogue as soon as possible," Hong told a daily news briefing.
China is one of the largest users of Iranian oil, buying around 20 percent of total exports.
The European Union enraged Tehran last month when it decided to impose a boycott on its oil from July 1. Iran, the world's fifth-largest oil exporter, responded by threatening to close the Strait of Hormuz, the main Gulf oil shipping lane.
On Sunday, its oil ministry went a step further, announcing Iran has now stopped selling oil to French and British companies, a move which will however have little or no impact on supplies reaching France or Britain.
French and Anglo/Dutch oil majors Total and Shell have been big buyers of Iranian crude but Total had already stopped buying from Iran and Shell had scaled back sharply.
Iran has ramped up rhetoric in recent weeks while also expressing willingness to resume negotiations on its nuclear programme. Western powers have cautiously not ruled out the use of force if the programme continues. But speculation is high Israel may attack nuclear facilities in Iran.
Hong said the use of force would be the wrong answer.
"Attacking Iran militarily would only worsen the confrontation and lead to further upheaval in the region," he said.
The fast food revolution à la francaise
French baguettes
Julie Kertesz/Flickr
By Alison Hird
France, home to gastronomy and the long Sunday lunch is undergoing a food mini-revolution.
The takeaway food market is now worth more than 32 billion euros a year, up 66 per cent in the last seven years.
French get tough on bank bail-outs
Any French bank that is bailed-out by taxpayers will be part-nationalised and forced to lend to businesses and households, the Socialist party has promised if it wins the forthcoming election as expected.
Segolene Royal said any French bank that is bailed-out by taxpayers will be part-nationalised and forced to lend to businesses and households. Photo: AFP/GETTY
Unlike Britain, which took an 83pc stake in Royal Bank of Scotland and 41pc of Lloyds Banking Group in return for £65bn of taxpayer support in the 2008 crisis, President Nicolas Sarkozy's government provided €360bn (£299bn) of support for French banks without taking any common shares.
Three of France's leading lenders, including BNP Paribas and Societe Generale, have been instructed to raise just over €7bn between them in the coming months.
They are expected to try to tap the markets, but may have to resort to state help.
Segolene Royal, a senior party figure and former wife of the Socialist candidate François Hollande, said today: "Whenever we have to bail out the banks, we will acquire part of their capital and demand the kind of behaviour that should never have been allowed to slide. That means lending to businesses and consumers in the right conditions."
Ms Royal, a former presidential contender, is expected to play a government role if Mr Hollande wins in the April-May presidential election
ArcelorMittal workers occupy French site over jobs threat
Workers at the ArcelorMittal's site in Moselle eastern France
Reuters/Vincent Kessler
Around 200 metal workers from global steel giant ArcelorMittal have occupied the company’s site at Florange in the Moselle region of eastern France in protest at management’s refusal to re-open two blast furnaces which have been out of operation since the middle of last year.
The workers say they will continue their action until ArcelorMittal reveals its plans for the site.
At the same time around half the company’s workforce, some 3,000 employees, were also temporarily laid-off and the company says it has no immediate plans to re-employ them.
Unions say they fear the company has plans to close down the site completely.
Earlier this month, the world’s biggest steel maker announced a net loss for the last three months of the year of 757 million euros.
At the time ArecelorMittal chairman said the situation in Europe was a ‘live’ concern.
The company says it intends to cut operating costs by 605 million euros this year
Montpellier New force to improve the city environment
DOWNTOWN Twelve officers employed to track down anti-social behaviour
"We have listed twenty to six spots in the City and its suburbs," says Regine Souche, elected deputy responsible for security.
The twelve municipal officers in this brigade patrol the streets in search of "uncivil behaviour. Hopefully now the new fines will deter oafishness says mayor Helen Mandroux.
Dogs, and waste sites
These incivilities which spoils the City are primarily related to waste. "The traders or restaurateurs leave on their doorstep or on the street their garbage cans, cartons, without following the rules collection" says one agent.
Sites in this new war include the abandonment of rubble on the street, or a blocking gutters.
People responsible for dog excrement, the presence of animals in playgrounds, dogs not on leashes, paper and trash thrown onto public roads will all now be punished.
"We will not seek fine everyone -we will inform and educate first, but in repeat behaviour will attract a fine " said one of the three municipal police officers in this new brigade.
French Press Review
There are four different views of President Nicolas Sarkozy's first official steps towards reelection, taken in the southern French city of Marseille.
For the right wing daily, Le Figaro, Sarko has decided to place himself in the Gaullist tradition, in the shadow of wartime hero General De Gaulle, suggesting that only Sarkozy has the courage and the vision necessary to save the nation in its latest hour of need.
The basic lesson is that France will have to accept certain sacrifices if it is to survive. Le Figaro's editorial salutes the courage of the out-going president, while condemning his principal opponent, the Socialist Party's François Hollande, for refusing to pronounce the dreaded s-word, "sacrifice".
Left-leaning Libération says the same General De Gaulle probably went for a quick spin in his grave yesterday, as Sarko tried to reinvent himself as a man of the people.
The problem, says Libé, is that none of the people have forgotten the hugely expensive celebration dinner in Fouquet's, the luxury holiday on a yacht owned by stinky rich Vincent Balloré, the tax havens for the president's billionaire friends.
And what has the right been doing for the past 10 years? How come they discovered the people just two months before the next presidential election?
Sarko is good at rhetoric, concedes Libé, and he's clearly got the bit between his teeth and is going to give Frank the Dutchman a run for our money. But the policy is "blindingly contradictory", to quote the Libération editorial, and will work only if the common man has a remarkably short memory.
Communist L'Humanité sees Sarkozy moving to the right, "extremely", an obvious reference to the candidate-president's efforts to capture the votes of supporters of the far-right Front National.
And Le Monde wonders, with more than a hint of irony, if Sarkozy has really changed over the past five years.
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