Continue even today violent confrontations and demonstrations in much of the Arab world and elsewhere, especially against Us embassies, for American film deemed blasphemous and offensive to the Prophet Mohammed.

In Tunisia at least three people died and 28 were injured in the attack by demonstrators at the u.s. Embassy in Tunis, as reported by State television. A Reuters reporter saw police open fire to try to quell the rebellion. In the clashes was also torched the American school in Tunis, now closed.

In Sudan, at least one person died during a demonstration outside the US Embassy while the police launched tear gas to disperse about 5,000 protesters who have surrounded the German Embassy and the nearby British Mission in Khartoum.

In Lebanon, a protester was killed and two others wounded in clashes with security forces in the city of Tripoli, stemming from the protests against the film and against the visit of Pope Benedict XVI in the country. A security source said that the man was killed when the protesters tried to make breaking into a government building. Also wounded 12 members of the security forces.

In Egypt there were throwing stones at the police who, in Cairo, has blocked access to the US Embassy, already targeted in recent days. Here agents in riot gear threw tear gas and responded to throwing stones.

Also in Yemen-where yesterday at least one person died and 15 others were injured in a demonstration in Sanaa-security forces have blocked the roads around the US Embassy in the capital, and to strengthen the security the Pentagon sent the marines.

In Nigeria, where Islamic fundamentalist group Boko Haram killed this year hundreds of people in a riot, the police fired in Jos to disperse Muslims took to the streets to protest the film about Muhammad. The Government has preallertato the police and enhanced security for foreign missions.

Today's protests also spread to Malaysia-Bangladesh, Afghanistan, Pakistan, Iran and Iraq--followed last Tuesday's attack against the U.s. Consulate in Benghazi, which resulted in the death of the American Ambassador to Libya, Christopher Stevens, and three other Americans.

For the murders, Libyan authorities yesterday said they had arrested four people, while the Usa has sent two destroyers in the Libyan coasts and a team of specialist marine, in addition to monitoring missions with drones (unmanned aircraft), departing from the base of Sigonella, Sicily.

Mixed reactions in the Pdl to forfait Silvio Berlusconi this evening at the party youth party in Rome, which was expected to reveal his intentions on a possible re-election to the premiership of Italy.

The former Prime Minister, who would have to participate in a debate with young people from the evocative title "a Knight's tale", has instead preferred to land in Milan after returning from a holiday in Kenya resort guest entrepreneur Flavio Briatore.

Giorgia Meloni, organizer of Atreju, has a reaction to the defection of the Knight piccata because attaches to political tactics not shareable. More pragmatic former Colonel of An, Ignazio La Russa, according to which the tatticismo is legitimate when there is no clear position on the political future of the Pdl.

"I am sorry that Mr Berlusconi has chosen not to participate, for the first time, the traditional confrontation with youths of Atreju which annually leads the political season. That debate without filters, passionate, serious but also fun was in an extraordinary occasion for many boys and a bathroom of the future '' for the President. Deny them this possibility ' for tactical reasons, and my personal view, a pity, "writes the former Minister to the youth of the Berlusconi Government.

He then criticizes her fellow party trying to "close the President in a reliquary" away from the direct relationship with the people, activities in which "excels" and thus giving room for "small formations trying to put together Cirino Pomicino with Montezemolo and De Mita with Passera".

Meloni also puts into question the leadership of Berlusconi calling the primaries: "we want a Pdl that face the primaries and face the square. At any cost ".

La Russa said that Berlusconi had already suggested days ago an absence to Atreju and admits that there are no definite decisions about his candidacy. "I think a party leader has the duty and the obligation to announce choices when others decide that those choices should be announced".

"Berlusconi could come to Atrejiu and say ' these questions do not answer ' or ... not to come because at the moment does not intend to pre-empt decisions which deserve further reflection and his party," the former defence Minister of the Center

The British Royal family has decided to sue for invasion of privacy the French magazine Closer, Mondadori Publishing Group's controlled by Silvio Berlusconi, who has posted pictures of topless wife of Prince William, Kate Middleton.

The Duchess of Cambridge was picked up during a holiday on the French Riviera while removing the above piece of a bikini and images spread by Closer made a moment around the world.

"The Royal family confirms that the Duke and Duchess of Cambridge started today in France a legal action for violation of privacy against the Publisher of Closer Magazine France," announced a press release.

The Court of Nanterre, near Paris, said the Royal couple's lawyer has already presented the first documents to begin the proceedings and that the Publisher will be heard Monday.

Chairman of Mondadori is Berlusconi's daughter Marina.

Legal sources explain that the role of the defense is going to be difficult, but that the proceeds from the sales of the newspaper will be significantly higher than the eventual compensation that can be estimated in the order of several thousand euros.

The film "Silver linings playbook" by US Director David O. Russell has won the prize of the film festival of Toronto. The Director of films such as "Fighter" and "I Heart Huckabees" had reported at the beginning of the Festival that he cast the actor for his film by audition through the Internet telephone service Skype had.

The tragicomedy "Silver Linings Playbook" tells the story of a former teacher who returns to his family after several months in a psychiatric hospital and tried to get his life back. In addition to Bradley Cooper and Jennifer Lawrence stars also Robert de Niro and Julia Stiles see.

Other than in Venice or Cannes the Canadian Film Festival is not a competition. Toronto awarded only an audience award and an award by the international press. The film of the German Director Margarethe von Trotta "Hannah Arendt" on the German Jewish philosopher with Barbara Sukowa in the went away empty-handed. The winning films from Toronto considered contenders for Oscars next spring.

Due to bad weather, the US space agency has moved NASA release the patterned from U.S. space shuttle "Endeavour" in the Museum on Tuesday. Originally, a modified Boeing 747 with space shuttle should depart today from the Kennedy Space Center in Florida.

According to the current plans "Endeavour" will arrive after several stops on Thursday at Los Angeles International Airport. From October 30, the shuttle should be then permanently to see in the California Space Center.

The "endeavour" was the youngest star of the space shuttle fleet of United States, in April 1991 it rolled out of the Assembly unit in the Californian Inglewood. Since the maiden flight in May 1992, the shuttle was a total of 299 days in space and covered more than 185 million miles in his 25 missions. End of may the space shuttle had their last mission to the international space station completed.

The billionaire US Investor Warren Buffett has completed the treatment for his prostate cancer. "Today I had my 44th and last day of radiation", the 82-Jährige executives from newspapers belonging to him said as the paper "The Omaha World-Herald" reported on its website on Friday.

He will feel the side effects a few weeks - but he was "so happy" to be able to say that it was "over". "Today is a great day for me," Buffett added. The disease was diagnosed in April at an early stage.

Buffett is the Chief and the investment company Berkshire Hathaway, which is part of the Omaha World-Herald company. He comes from the city of Omaha in Nebraska, United States.

The U.S. magazine "Forbes" leads Buffett with assets of $44 billion (EUR 33.7 billion) as the third richest man in the world. Berkshire Hathaway holds among other important contributions in the beverage giant Coca Cola, the computer Group IBM and the Wells Fargo financial services. The investment firm owns dozens completely - by insurers to a railway company.

Today, the UN Human Rights Council debated a new version of his report to Syria. The report refers to the period between mid-February and July. a debate followed by the hearing of the Syrian representative. Vote will be at a later date. It is expected that the report calls for the transfer of suspected Syrian war criminals to the international war crimes Tribunal in the Hague.

However, approval of UN Security Council deeply divided on the question of Syria would require to do so. In the middle of August published report, a UN Commission had accused both parties to war crimes.

Also hope Rafael van der Vaart has not stopped the free fall of Hamburger SV: lost further punktlose HSV at Eintracht Frankfurt 3-2 (1-2) the comeback of the Dutchman after four years and four months in the Bundesliga and is still on a direct relegation position. SC Freiburg previously triumphed against 1899 Hoffenheim 5-3.

The Frankfurt Takashi Inui (13), Olivier Occean (18) and Stefan Aigner (52) benefited from rough defensive bloopers of the Hamburger before 51,500 spectators in the sold-out World Cup arena in their goals. Heiko Westermann (45th) and Heung-min achieved the first goals of the season score song (63.). In first-half injury time, the Hamburg Petr Jiracek saw a rough challenge also the red card.

The harmony continued their great start with three victories in a row and again advanced to the second place behind champion Bayern Munich. Powered by a strong Inui Hesse from the outset played forward courageously.

1899 Hoffenheim slipped previously with SC Freiburg deeper into crisis. The Kraichgau started with big goals in the season in a turbulent encounter with 3-5 (1-2) and which remain after the seventh season across setback no point in last place.

Ex - goalkeeper Wiese did a serious error is when the third goals by Fallou Diagne (68th), when he ran under a corner. For the ultimate in 3: 4 by Cédric Makiadi saw the goalkeeper again not good from (84.). Stuck in a cross field on the line, Makiadi hit from close range.

While it looked only in the Baden Derby before 22.800 people after reparation conjured up by Hoffenheim. Matthieu Delpierre was a quick start (2nd), who gave the guests but no security. The home side did not impress in front of national coach Joachim Löw and turned the game by Karim Guédé (9) and Max Kruse (27) completely deserved before the break. After the compromise by the Boris Vukcevic substitutes at the break (57th), Centre-back used Diagne Wieses dropouts for his first hit of the season. Takashi Usami (76) more than made up for the guests still, however, Makiadi and Sebastian Freis (87) provided with their goals in the final for the first season victory of Freiburgers.

Before the District Court of Augsburg the trial of the former arms lobbyist Karlheinz Schreiber will be reopened today. Schreiber had been sentenced to eight years in prison in May 2010 due to tax evasion. After a review of both the 78-Jährigen and the public prosecutor's Office, the Supreme Court but ordered to new roll up the first trial before a different Chamber of the Court.

Scribes used a network of bribes over the years and was the key figure in the CDU Parteispendenaffäre the year 2000 lot getretenen. In may he had to be released from prison for health reasons, he had suffered a heart attack in custody.

Commits with an attempted blockade of Exchange in New York the capitalism-critical movement occupy after street wall today their first anniversary. To want to occupy activists to build a "human wall" before the New York Stock Exchange NYSE. Also political workshops and exercises in civil disobedience are planned. Critics of capitalism had built a camp at Zuccotti Park, close to the stock exchange in September of last year. The movement spread from New York to the world.

Top without pictures of Prince Williams wife Kate deal with a French Court today. The number two of the British Throne and his wife want to achieve an injunction in Nanterre on the outskirts of Paris for "Breach of privacy", eliminated with further publications of the photos.

Also, that wants to claim pair damages by the French gossip magazine "Closer," due to the release of the photos last week. These show dressed, Kate only with a bikini panties as she eincremt the back including her husband. In Italy the gossip page "Chi" wants to bring out on Monday a Special Edition with the photos.

Top without pictures of Prince Williams wife Kate deal with a French Court today. The number two of the British Throne and his wife want to achieve an injunction in Nanterre on the outskirts of Paris for "Breach of privacy", eliminated with further publications of the photos.

Also, that wants to claim pair damages by the French gossip magazine "Closer," due to the release of the photos last week. These show dressed, Kate only with a bikini panties as she eincremt the back including her husband. In Italy the gossip page "Chi" wants to bring out on Monday a Special Edition with the photos.

After a series of incidents on flights of the low-cost airline Ryanair in recent weeks, Spain plans stricter controls of machines of the airline. Given the "fact" that the machines of Irish society would, used especially in Spain the Spanish authorities wanted to be able to carry out more intensive checks, said infrastructure Minister Rafael Catalá.

On Saturday, a Ryanair machine had landed on the road from Bristol to reus in Spain according to the airline because of a "possible engine problem" at the airport of Prat in Barcelona. On Sunday, it was according to the Spanish Airport Authority AENA on a flight between Paris-Beauvais and Tenerife again an incident, the machine "because of technical problems" had to land at the airport of Madrid-Barajas. In July, Ryanair had requested three emergency landings due to lack of fuel.

After a series of incidents on flights of the low-cost airline Ryanair in recent weeks, Spain plans stricter controls of machines of the airline. Given the "fact" that the machines of Irish society would, used especially in Spain the Spanish authorities wanted to be able to carry out more intensive checks, said infrastructure Minister Rafael Catalá.

On Saturday, a Ryanair machine had landed on the road from Bristol to reus in Spain according to the airline because of a "possible engine problem" at the airport of Prat in Barcelona. On Sunday, it was according to the Spanish Airport Authority AENA on a flight between Paris-Beauvais and Tenerife again an incident, the machine "because of technical problems" had to land at the airport of Madrid-Barajas. In July, Ryanair had requested three emergency landings due to lack of fuel.

More than a thousand people protested against the hostile to islam film produced in the United States in Afghanistan's capital Kabul. On Sunday, there had been several injured during nationwide protests in Pakistan. Meanwhile the head of the Shiite Hezbollah militia in the Lebanon, Hassan Nasrallah called on "The innocence of the Muslims" to a week of protests against the film, in which the Prophet Muhammad is vilified.

In Kabul, some protesters set fire to cars and cried "Death to America" as the Chief of police of the Afghan capital, Mohammed Ajub Salangi said. Also out some people opened fire on police officers therefore from the set, they shot back but not. "And we won't be that also," Salangi said.

The protests were held according to the on the road from Jalalabad in the East of Kabul. NATO and US bases are located there. An AFP photographer according to lay stones on many roads, also shopkeepers in the area closed their business in a hurry. Reports on injuries were not available so far.

In the Pakistani port city of Karachi shot the police on the Sunday before the U.S. Consulate General in the air and against about a thousand demonstrators with tear gas and water cannon. At least eight people were injured according to official data, there were also 20 arrests. Approximately 1500 people followed a call to the Islamic party Jamiat Ulema-i-Islam (JUI) to a further protest demonstration in Karachi.

In the eastern city of Lahore, there was a peaceful demonstration with 6000 participants according to local police. Demonstrations were reported from Quetta, Multan and Muzaffarabad.

The head of the Shiite Hezbollah militia in the Lebanon called for a week of protest. "The whole world must see the anger in your faces, your fists and your screams," Nasrallah said on Sunday evening in a speech transmitted on television. The world must understand that Mohammed had followers would not mention to the film.

The film, which had led to violent protests in many Muslim countries in the past few days, Nasrallah described as "the worst ever launched attack on Islam". The film was even more devastating than the burning of the Koran in Afghanistan and the publication of Muhammad cartoons in Europe.

greese

Comes complete abolition of duty-free limit of 5,000 euro for all freelancers, and maintained only for employees and pensioners.

At the same time promoted the full abolition of tax exemptions for individuals (doctors, nosilia, mortgage interest, rent, insurance premiums, Maison k etc.) and replace them by deduction from the income of certain evidence relating to I with the provision of services by doctors, lawyers, plumbers, ilektrologoys, and other freelancers (taverns, restaurants etc.).

In particular, as the ' Nation ', the taxman will recognize and will deduct 100% of taxable income tax receipts from freelancers.

This measure will join the accounts will pay in bars, restaurants, leisure centres and other catering operations, while no benefit would not have taxpayers when collect evidence from supermarkets and store the clothing.

Crisis, Finland, Foreign Minister: let us prepare the eurozone break»

Erkki Tumoioja in an interview with the ' Daily Telegraph ' explains that the Finns have prepared an operational plan

European leaders must prepare for a possible breakup of the eurozone, as it has done the Finland. He said the Finnish Foreign Minister and veteran of the social democratic party, Erkki Tuomioja, in an interview published in the Daily Telegraph. "We must prepare for the possibility of a breakup of the eurozone," said Tuomioja. "It is one thing that no one claims in Finland, even the Party of True Finns # the nationalist right, Ed #, not to mention the Government. But we must be prepared, "said the Social Democrat Minister to the newspaper.

GREECE-according to the Minister, Finnish leaders have prepared an operational plan to cope with any eventuality. " "There is a consensus that a breakup of the eurozone would cost more in the short to medium term and continue to manage the crisis. But a break does not mean the end of the European Union, could enable the Eu to function better, ' he added Tuomioja. The intervention of Minister paints one of the darkest scenarios for the eurozone, "But the abandonment of the euro is one solution advocated by many all over the world. It is evident that a break-up of the euro area would cost more than in the short-to-medium peridoso rather than handling the crisis. As regards a possible exit from the euro of Greece, Tuomioja emphasizes: «we cannot force Greece to exit the area».

After an August under the banner of (relative) calm, investors seem to have to prepare a hot September. After the calm storm? In fact, the recession in Europe, the indecision and the division between eurozone leaders, the situation in Spain and Italy, forced to borrow at high rates, began to look of concern for Greece, the cocktail is explosive. The ECB President Mario Draghi sought to convince the markets about the irreversibility of the euro, saying he was ready to do everything will need to preserve the single currency. Encouraging words (?) who have partly contributed to loosen the tension on the markets but merely because they were uttered, raised some doubts. The Dragons, at this stage, presents a remarkable lack of details: time, mode, duration and amount of the intervention. This feeds the speculations and lends itself to easy denials.

The head of the ECB has raised many hopes. But the risk is to create a big disappointment if the intervention of the Frankfurt Institute were to be abandoned, delayed or distorted due to opposition from Germany (Berlin estimated that a massive intervention by the Central Bank could trigger a surge in inflation and promote some fiscal laxity from the States). The next Conference of dragons, waiting for the 6 September, will be followed with particular attention.

The ECB's action can also depends on the decision of Spain to ask for (or not) to help eurozone firewall to save an economy choked by the collapse of the banking sector, a victim of the explosion of the housing bubble. The ECB does not intervene to buy Spanish debt until Madrid will formalise its request for aid to the European financial stability Fund (EFSF). So far the premier Mariano Rajoy refused to do so, fearing the imposition of drastic restructuring terms.

The Sudanese Foreign Ministry was targeted before the message storm mood against the Chancellor. Westerwelle requires protection against threatened violence. Today, new protests are planned in Khartoum.

After the violent attack on the German Embassy in Sudan, Foreign Minister Guido Westerwelle has prompted the Government in Khartoum in sharp form to ensure the security of German citizens. "That our message despite prior request was not adequately protected, we cannot accept" the FDP-politician said the "Welt am Sonntag".

He expects from the Sudan "that he guarantees the integrity of our message and the security of our compatriots in its entirety". Further demonstrations before the representatives of Germany, the UK and the United States are planned for Sunday in Khartoum.

Government mobilized targeted against Germany

Unlike as in the ongoing since Tuesday attacks against U.S. embassies in several countries of the Arab world, which had been triggered by an abusive movie produced in the United States about the Prophet Mohammed, the Government of the Sudan by radical Islamists under pressure mobilized also targeted against Germany and his Chancellor Angela Merkel (CDU).

In a statement of the Foreign Ministry by the Sudanese News Agency SUNA Merkel was accused, she have two years ago the Danish cartoonist Kurt westergaard had honored, whose drawings of the Prophet Muhammad in 2006 provided for turmoil in the Islamic world.

Also, the Chancellor did not prevent that the right-wing populist party "Pro NRW" will show the controversial cartoons in rallies. "The German Chancellor has unfortunately welcomes an insult to Islam and thus challenged the peaceful coexistence of cultures", it was said.

Nook - "think price for westergaard is right"

The personal African representative of the Chancellor, Günter Nooke (CDU), is warned to be intimidated by the violence. "I think it is still correct and courageous, that Angela Merkel Mr westergaard awarded this prize has", said the "Welt am Sonntag" Nooke.

© dpaMerkels personal Africa representative, Günter Nooke (CDU)

It was important "that we openly represent our values as a politician." "Freedom of expression and freedom of the press is substantial for us." With regard to the abusive film Nooke urged also "increasingly religion to learn about, to understand what can be blasphemy in other regions of the world".

The German Trade Union of the police considers insufficient the protection of German embassies in the Arab and African region. "The ways to protect the diplomatic facilities from attacks in violent mass demonstrations missing of the federal police in these regions after today", said Chairman Bernhard Witthaut "Image on Sunday".

Polenz calls for review of hate videos

The CDU foreign policy expert Ruprecht Polenz called for a review of hate videos by the German authorities. The film, in which the Prophet Muhammad as a child molester, Schürzenjäger and homosexuals is vilified, could fall under section 166 Penal Code, which prohibits the abuse of religious beliefs.

The Party of "Pro Germany" had announced to want to show the film "Innocence of Muslims" in Berlin.

Interior Minister Hans-Peter Friedrich (CSU) against the right-wing populist party proceed, these should be announced in the "mirror", decided as announced the controversial Mohammed video in Berlin public show. "Such groups and organizations want to provoke the Islamists in Germany", Friedrich said. "However, we must proceed with all legally permissible means."

The US police has heard the Director of videos on Saturday, to determine whether he had breached laws. The Government announced to send Marines to protect of their messages to Libya, in the Yemen and the Sudan.

After the violent attack on the German Embassy in Sudan, Foreign Minister Guido Westerwelle has prompted the Government in Khartoum in sharp form to ensure the security of German citizens. "That our message despite prior request was not adequately protected, we cannot accept" the FDP-politician said the "Welt am Sonntag".

He expects from the Sudan "that he guarantees the integrity of our message and the security of our compatriots in its entirety". Further demonstrations before the representatives of Germany, the UK and the United States are planned for Sunday in Khartoum.

Government mobilized targeted against Germany

Unlike as in the ongoing since Tuesday attacks against U.S. embassies in several countries of the Arab world, which had been triggered by an abusive movie produced in the United States about the Prophet Mohammed, the Government of the Sudan by radical Islamists under pressure mobilized also targeted against Germany and his Chancellor Angela Merkel (CDU).

In a statement of the Foreign Ministry by the Sudanese News Agency SUNA Merkel was accused, she have two years ago the Danish cartoonist Kurt westergaard had honored, whose drawings of the Prophet Muhammad in 2006 provided for turmoil in the Islamic world.

Also, the Chancellor did not prevent that the right-wing populist party "Pro NRW" will show the controversial cartoons in rallies. "The German Chancellor has unfortunately welcomes an insult to Islam and thus challenged the peaceful coexistence of cultures", it was said.

Nook - "think price for westergaard is right"

The personal African representative of the Chancellor, Günter Nooke (CDU), is warned to be intimidated by the violence. "I think it is still correct and courageous, that Angela Merkel Mr westergaard awarded this prize has", said the "Welt am Sonntag" Nooke.

© dpaMerkels personal Africa representative, Günter Nooke (CDU)

It was important "that we openly represent our values as a politician." "Freedom of expression and freedom of the press is substantial for us." With regard to the abusive film Nooke urged also "increasingly religion to learn about, to understand what can be blasphemy in other regions of the world".

The German Trade Union of the police considers insufficient the protection of German embassies in the Arab and African region. "The ways to protect the diplomatic facilities from attacks in violent mass demonstrations missing of the federal police in these regions after today", said Chairman Bernhard Witthaut "Image on Sunday".

Polenz calls for review of hate videos

The CDU foreign policy expert Ruprecht Polenz called for a review of hate videos by the German authorities. The film, in which the Prophet Muhammad as a child molester, Schürzenjäger and homosexuals is vilified, could fall under section 166 Penal Code, which prohibits the abuse of religious beliefs.

The Party of "Pro Germany" had announced to want to show the film "Innocence of Muslims" in Berlin.

Interior Minister Hans-Peter Friedrich (CSU) against the right-wing populist party proceed, these should be announced in the "mirror", decided as announced the controversial Mohammed video in Berlin public show. "Such groups and organizations want to provoke the Islamists in Germany", Friedrich said. "However, we must proceed with all legally permissible means."

The US police has heard the Director of videos on Saturday, to determine whether he had breached laws. The Government announced to send Marines to protect of their messages to Libya, in the Yemen and the Sudan.

The Hague . On Wednesday, the Dutch decide not only on the composition of Parliament, but also about the future EU policy in their country. The right-Liberal Party for freedom and democracy (VVD) of acting Prime Minister mark are Rutte and the social democratic labour party (PvdA) according to surveys almost neck and neck. While the VVD rather supported the austerity of German Chancellor Angela Merkel at the solution to the euro crisis, the PvdA tends rather to a socially absorbing policy such as the French President François hollande with their Spitzenkandidatent Diederik Samsom.

Samson said at his voting in Leiden that voters had "only a day to make the Netherlands stronger and socially responsible". Rutte held against it on Tuesday when the last campaign appearance, the Dutch would have to take a decision of principle: between left solve of the creation of jobs, which would increase the deficit, and the savings approach to Merkel's. 'France is a country of high deficits, high taxes, low growth - and that would be not good for the Netherlands', Rutte said. "The Germans have the same philosophy as we: low debt and jobs."

The right-wing populist Gert Wilders, which caused the early election, in which he said the support of his party for freedom (PVV) in Parliament withdrew, the minority Government of Ruttes in his voting in the Hague: "it is whether we want to remain independent or one of a European superstate are an important day for the Netherlands and a historic day." He campaigned in the election campaign for the withdrawal from EU and euro, vote losses are forecast his party.

Observers expect a difficult form a Government after the election in the face of the expected majority situation. 21 Parties appear in the vote, according to surveys, eleven of them could win seats in the Dutch Parliament.

At the last election of 2010, it took four months for Rutte was sworn in as Prime Minister of a minority Government supported by Wilders party for freedom (PVV). 18 Months later the Government broke apart when Wilders did not support the austerity of the Cabinet.

Berlin (dapd). Foreign Minister Guido Westerwelle has praised the decision of the Constitutional Court to the euro rescue screen ESM. "This is a wise decision in the pro-European spirit of our Constitution," the FDP-politician declared on Wednesday in Berlin. The work of the Government for the euro and Europe go further. The limit of liability to no more than 190 billion euros imposed by the Federal Constitutional Court was right and necessary. "The German power should not be overwhelmed."

Further, he stated: "The Federal Constitutional Court has confirmed the policy of the Federal Government and declared constitutional." "This is good for Germany and good for Europe." First light at the end of the tunnel is visible. "We must not allow to now in our determination to overcome the debt crisis together with budgetary discipline, growth orientation, and European solidarity."

After the Karlsruhe judgment, Germany may join the permanent euro rescue screen ESM under certain conditions. The Court has ruled that a ratification of the ESM Treaty is only allowed if under international law it is certain, that Germany's capital on the ESM actually to €190 billion remains limited.

The opinion from Karlsruhe it should run fast: already in October the ESM Rescue Fund could take up his work. Needy countries there are progressing enough - all Cyprus and Spain.

Klaus Regling does not need a long training period. He knows out namely with the behaviour of the euro saver. As Chief Executive Officer (CEO) - as this is Bank called in he - he leads the provisional recovery screen EFSF over two years. Actually he should assume already the Chief post in the successor, the Permanent Fund of ESM, since this summer as Managing Director. But his move was delayed because of complaints at the Federal Constitutional Court. Is it likely the opinion from Karlsruhe but quickly.

Already at their meeting on 8 October, the Finance Ministers of euro countries could sign the treaties for the ESM. Then, nothing in the way is Regling switch to the ESM. Move it but does not have therefore. The ESM is housed in the same building in Luxembourg as also the EFSF, which for a year will work in parallel. So far 57 employees stay on board, Regling is set in addition few. Until end of the year is to the ESM about 75 employees have.

Work there is plenty. Eagerly waited the euro countries to the new Rescue Fund, can distribute maximum EUR 500 billion in aid loans. The ESM will be filled with 700 billion, 80 billion in cash, the remaining 620 billion as warranties. Germany contributes most of EUR 190 billion.

That this limit must be respected, the judges in Karlsruhe have stressed in their judgment. Only if this is ensured, Germany can ratify the ESM contract and Finance Minister Wolfgang Schäuble (CDU) as planned transfer the first two tranches of the ESM. Then, the Rescue Fund - which provides especially when many Germans discomfort - is able to work.

The euro Finance Minister which take all the important decisions in the Governing Council of the ESM, will have to decide in the autumn probably about first aid. A rescue request from Cyprus is regarded as virtually certain - whether he is addressed initially to the EFSF or directly on the ESM, is still unclear. Cyprus is all but already speculated a small sum less than 10 billion euros

A real test for the ESM would be a call for help from Spain or Italy. Madrid has submitted a request to the EFSF, he has been promised up to 100 billion euros for the recapitalisation of the ailing banks. Still no money has flowed, Spain must first of all a plan to clean up the financial system work out and determine the precise financial requirements.

It is planned that the Bank help by the EFSF on the ESM is over. But in negotiating is expected already that a second request for help from Madrid is coming soon. It is no longer the banks on the Iberian Peninsula, but just around the whole country.

Spain has problems to get fresh money at bearable interest rates on the capital market. Which changes not as soon as possible would be in autumn Madrid probably be the first test case for a new process in which the ESM works together with the European Central Bank (ECB).

Madrid would be a help request to the ESM, which then takes directly new Government bonds of the Government or provides you with at least a kind of Dispokredit - known as precautionary credit line. On the other hand you would impose a reform and cost Euro Finance Ministers Spain. As the means of ESM are limited, could the ECB parallel on the market already given buy government bonds and interest rates so press.

The ECB had made such interventions in the past two years, but without the parallel use of ESM predecessor EFSF. Hardly were the returns by the intervention of the Central Bank, the affected countries, in particular Italy, were after with their reform efforts.

Therefore, ECB chief Mario Draghi now wants that beneficiary States first tap on the ESM. Spain however so far refuses to submit to a strict savings dictation by the EU. When it comes to shove, Draghi and the ESM to the longer lever should sit but.

EU Commission President Jose Manuel Barroso has defended plans to make all 6000 banks of the euro area under a new European banking supervision. "It will be a supervision for all banks," Barroso told the European Parliament in Strasbourg in a speech on the State of the Union. The crisis showed that there could be risks to the financial system not only in the so-called system-critical banks.

Barroso presented the plans the European Commission on a uniform European banking supervision in the euro area in his speech, which should be located at the European Central Bank. "To create this European supervision, is the very top priority", said the Portuguese. Because the crisis had also shown that although banks borders are, but not the supervisory authorities. Further steps on the way to a European Banking Union were a common deposit guarantee, as well as rules for the handling of bust banks.

The new control authority for the banks of the euro area to the plans according to the EU Commission from the beginning of next year their work record and then gradually take over the supervision of all 6000 banks in the euro area. According to Summit decision of June also an "effective" uniform banking supervision is the prerequisite that the future euro Rescue Fund ESM can provide banks in the future directly with financial injections - hope particularly crisis countries, such as Spain.

The competent European Commissioner Michel Barnier discusses the details of the Commission's plans for banking supervision in the afternoon in Strasbourg. Federal Finance Minister Wolfgang Schäuble (CDU) criticized already the project, under the control of the new supervision to all banks, instead of only the largest banks in the euro area in the past few weeks. He also believes it is "unrealistic" that the new supervision can take their work in January.

The ECB welcomed the creation of a single European banking supervision with their participation. The creation of such supervision is "an important step, to lay the foundations for a financial Union, with a view to ensuring financial stability in the euro area and the EU", said the ECB in Frankfurt am Main.

BENGHAZI, Libya (Reuters) - The U.S. ambassador to Libya and three other embassy staff were killed in a rocket attack on their car, a Libyan official said, as they were rushed from a consular building stormed by militants denouncing a U.S.-made film insulting the Prophet Mohammad.

Gunmen had attacked and burned the U.S. consulate in the eastern city of Benghazi, a center of last year's uprising against Muammar Gaddafi, late on Tuesday evening, killing one U.S. consular official. The building was evacuated.

The Libyan official said the ambassador, Christopher Stevens, was being driven from the consulate building to a safer location when gunmen opened fire.
"The American ambassador and three staff members were killed when gunmen fired rockets at them," the official in Benghazi told Reuters.
There was no immediate comment from the State Department in Washington. U.S. ambassadors in such volatile countries are accompanied by tight security, usually travelling in well-protected convoys. Security officials will be considering whether the two attacks were coordinated.
Libyan deputy prime minister Mustafa Abu Shagour condemned the killing of the U.S. diplomats as a cowardly act.
The consular official had died after clashes between Libyan security forces and Islamist militants around the consulate building. Looters raided the empty compound and some onlookers took pictures after calm returned.

In neighboring Egypt, demonstrators had torn down an American flag and burned it during the protest. Some tried to raise a black flag with the words "There is no God but God, and Mohammad is his messenger", a Reuters witness said.

PORTRAYAL OF PROPHET

U.S. pastor Terry Jones, who had inflamed anger in the Muslim world in 2010 with plans to burn the Koran, said he had promoted "Innocence of Muslims", which U.S. media said was produced by an Israeli-American property developer; but clips of another film called "Mohammad, Prophet of Muslims", had been circulating for weeks before the protest.

That film portrayed Mohammad as a fool, a philanderer and a religious fake. In one clip posted on YouTube Mohammad was shown in a sexual act with a woman.

Jones, a pastor in Florida whose latest stunt fell on the anniversary of the September 11, 2001, attacks on the World Trade Center and the Pentagon, triggered riots in Afghanistan in 2010 with his threat to burn the Koran.

Many Muslims consider any depiction of the Prophet offensive and any depiction of him can cause outbursts of anger in the Islamic world and among Muslims in Europe.
Libya's interim government has struggled to impose its authority on a myriad of armed groups that have refused to lay down their weapons and often take the law into their own hands.
It was clearly overwhelmed by Tuesday night's attack on the consulate that preceded the assault on the ambassador.
"The Libyan security forces came under heavy fire and we were not prepared for the intensity of the attack," said Abdel-Monem Al-Hurr, spokesman for Libya's Supreme Security Committee.
In Benghazi, unidentified men had shot at the consulate buildings, while others threw handmade bombs into the compound, setting off small explosions.
LOOTED
On Wednesday morning, the compound stood empty, with passers-by freely walking in to take a look at the damage.

Walls were charred and a small fire burned inside one of the buildings. A small group of men was trying to extinguish the flames and three security men briefly surveyed the scene.

A Reuters reporter saw chairs, table and food lying alongside empty shells. Some blood stains could also be seen in front of one of the buildings. Three cars were torched.

The crowd of around 2,000 protesters in Cairo was a mixture of Islamists and teenage soccer fans known for fighting police and who played a part in the revolt that toppled Egypt's leader Hosni Mubarak last year.

The fortress-like U.S. mission is near Tahrir Square, where Egypt's uprising began and the scene of many protests since. Youths danced and chanted football songs. A Reuters reporter said they appeared to climb into the embassy compound almost as an afterthought.

"We sacrificed dozens and hundreds during the uprising for our dignity. The Prophet's dignity is more important to us and we are ready to sacrifice millions," said mosque preacher Mohamed Abu Gabal who joined the protest.

U.S. Secretary of State Hillary Clinton, in a statement late on Tuesday, confirmed the death of the U.S. consular diplomat in Libya, who was not identified, and condemned the attack there; but she made no mention of an attack on the Ambassador's car.

(Additional reporting by Hadeel Al Shalchi in Tripoli, Sarah N. Lynch and Arshad Mohammed in Washington, and Reuters reporters in Cairo and Benghazi; Writing by Edmund Blair and Tom Pfeiffer; editing by Ralph Boulton and Janet McBride)

Staggering the Government, the working class can flex their muscles

In the fourth-largest country of the euro area, the crisis comes to almost every hour. Spain is sitting on a powder keg, but even on a whole series of gunpowder, which could explode at any time. The Government under the conservative Mariano Rajoy, which was equipped with a lush majority a few months ago, rapidly losing ground. The 65-day militant miners strike in the summer was very probably only the start of a new round in the class struggle. Also the organized looting large supermarket chains in Cadiz and Seville by hundreds of farmworkers the Andalusian Trade Union SAT under the leadership of regional seconded Sánchez Gordillo (from the left) encountered enormous resonance. This fall offers the chance of a generalized, radical movement of working people against the Government and the capitalist being.

by Danny Byrne

After the disaster of PSOE and the election of Rajoy and his party PP in November 2011 anything other than an enthusiastic atmosphere existed, so the clear result but expressed that a substantial part of the population had confidence at that time. Confidence is that the crisis is temporary and with a change of Government the things again for the better could turn.

But shortly after it came to massive economic turmoil. The "Greece"-Gespenst went to. The Spanish economy fell in recent months then deeper into recession. The number of jobless is growing rapidly and is approaching the mark of six million (25 percent of all working-age).

Government is counting on

The new Cabinet liked weigh a few months in the security to know a large parliamentary majority behind him. But public support melts them between your fingers like sand. The daily of El Pais relied in July on a study that never lost a new Government in a such breathtaking pace of support. Many see only "liar" in Rajoy and co., since they ran an election announcement after another into its opposite (such as for example the promise not to raise the value added tax).

The political representatives of the ruling elite now plug into violent conflicts. Uncertain and divided the Government has become that Rajoy imposed gagging his ministers and forbade them to speak publicly at all for the Cabinet showed up recently because,.

The national question - a time bomb

The associated with high savings requirements, confrontational stance of the Central Government to the autonomous provinces will clearly exacerbate the national tensions. The Basque country and Catalonia, two regions of Spain, where people place great emphasis has always been on their own tradition and culture, are at the forefront of the opposition of several provinces of against Madrid.

Just Catalonia and the Basque country, the two most powerful industrial regions of Spain, are furious at the new "stability law", which opens up similar opportunities to the provinces of the Central Government and it has the "troika" to indebted euro countries. However it is a matter, such a law to decide, and another, to implement this in practice.

In the Basque country elections are in October, after the local PSOE/PP Government has burst. Here, two nationalist forces provide a head-to-head: on the one hand the right PNV, on the other hand the new left-nationalist Amaiur.

As in the 1930s, the task to defend the self-determination of all Nations - as a precondition to bring together the working class in Spain and to achieve a common fight against the rulers is for the left.

A challenge which deprived mood among large parts of the masses, which currently is in the increase for Amaiur, to give it an anticapitalist, internationalist direction is in the Basque country. Suppose, there exists a left-nationalist government, then she could, should help it is the austerity requirements of Madrid thinking and pursue a Socialist course, for workers and young people nationwide to a glowing example of resistance we

Report of the spring Academy of Annegret Gabelin in newsletter women's and Genderpolitik of the left of July 4, 2012

Four days of intensive learning with knowledgeable speeches, passionate discussions, the reunion with old friends and getting to know new colleagues and comrades - in a relaxed atmosphere in the European Jugenderholungs-and meeting place at the Werbellinsee in Brandenburg, about 70 miles northeast of Berlin. Is third Spring Academy of the left that "What destroyed the crisis Europe" took place from 20 to 24 June on the subject of. The 100 participants and participants from all State associations addressed after an introductory lecture 18 workshops with a focus on "New dimensions of the capitalist crisis", "Crisis of democracy", "Potential resistance", "Reactionaries developments" and "new alliances and old enemies".

According to the participants and participants, the workshop on "The EU crisis from gender perspective" was one of the highlights of this year's Spring Academy. Cornelia Ernst, Member of the European Parliament, spokesperson for the delegation of the left, began her very interesting and lively discussed talk a discourse to the European gender equality policy by she referred to extensive legal basis and contracts within the EU. These show that the EU as an engine of the emancipation of gender acts and contributed significantly to, the gender perspective from the "minor opposition"

to get. Now, in this comprehensive and deep systemic crisis of capitalism, it comes to a rollback in the gender policy. This assessment makes that Cornelia Ernst, that the crisis is not gender neutral, but is especially those who are disadvantaged even without crisis. The Austeritätspolitik makes the gender dimension back to something

"Additional", that quiet may be ignored given the size of the problems. Increasing the differentiation within the EU and the desired harmonisation according to the demanding guidelines of the EU is pushed aside under pressure from national egoisms. And at once is a "minor opposition" from "Women's policies" again, the equality and anti-discrimination policy threatens to disappear from the agenda.

Why are women affected but now more strongly from the crisis? The crisis in the EU is accompanied by the crisis of the welfare state. The social State, which is an important condition for the economic independence and self-determination of women, becomes the vigorously, the European Parliament and the national parliaments are excluded from more and more EU decisions. Women are subject to and affected by unemployment more precarious working conditions. Making the most of unpaid care work. Especially the male-dominated construction and automobile industry was affected by the first wave of the crisis - here bad effects could soften in Germany State benefit, but the "scrapping bonus". Now started the second wave of the crisis and meets women predominantly with retail, services or tourism. Adequate State

Support - such as for the SCHLECKER employees - stay out.

After looking at women in political decision-making, Cornelis Ernst proves that the EU labour market policy contributes to the increase of female poverty. Is declared in the strategy "Europe 2020" as a key objective, to increase the employment rate of men and women, 75 percent but that the quality of this employment, working conditions and pay are hidden. The consequences are a growing gender division of the labour market, a reduction of women's employment, the increase of unequal pay, restricting the access of women to health and education. Cornelia Ernst speaks of a feminisation of poverty and shows that even in the case of Greece.

Feminism as one of the two pillars of a left Socialist Party?

There was a lively discussion in the workshop on the outlined challenges for DIE LINKE, which can be summed up in a sentence: "The social impact of the crisis, the crisis as a whole is unsolvable, if the gender dimension in the solution strategies is not anchored." This led to the question of what we need to do as LINKE itself, how we have to change ourselves and our party to credible for arguing. The answer of Cornelia Ernst is: "We need to understand that the gender dimension is no additional presence in our politics, but a mainstay." Also left anti crisis concepts fail if this strategic approach will be neglected. Gender and active Antidiskriminierungsp

he crucial question is which way the States looking out of debt. The variants which are currently under discussion, would primarily affect the following groups:
German taxpayers
They are especially affected if the debts are communitarised - for example via euro bonds - or if Germany is pumping too much money into the rescue EFSF and ESM. That makes the state budget at the latest when the federal government must pay higher interest rates. Or when an indebted country goes into bankruptcy and Germany loses his borrowed money. Today are the public authorities of Greece's biggest creditor.
In the event of bankruptcy of the German state would be even a part of the debt, the other people actually wear - for example banks. Because they are considered "systemically important" apply, they have been in the past, often rescued by the states. If they are not already owned by the state. Commerzbank, which had to write because of their Greek bonds about 2.2 billion euros, is still 25 percent owned by the Federal Republic. Even the bathroom nationalized bank HRE had lost with Greek government bonds 2011, around 8.9 billion euros. Ultimately, therefore, the debt come back on to the taxpayers.
The rich German
It is not said that the stresses in the state budget will be borne by all taxpayers. Many want that in this case the rich should pay more. But while many people often are considered "rich", who think nothing of themselves. One possible way would be a forced loan, which has called the German Institute for Economic Research recently. Here, citizens are obliged, with assets of over 250,000 euros to buy German government bonds. Could be about 230 billion euros to Germany on loan from his involuntary creditors in this way, experts have calculated.
By the way: Who has to invest primarily in real estate and stocks comes with inflation still not necessarily them. Historically stood at the end of a great period of inflation is often a so-called "load balancing", in which the less-affected owners of real assets were taxed heavily.
Wealthy Spaniards and Italians
Instead of 'subsidizing Spanish or Italian debt by German forced loans, Spain and Italy could fall into the pockets of their own rich citizens. Because their property is quite large. On the one hand, the Italian State currently has debt of 1960 billion euros, on the other hand, the Italians have a personal fortune of 3737 billion euros - which could be one or the other to extort € so. The situation is similar in Spain: Here a debt mountain of 775 billion euros compares with a personal wealth of 1.857 trillion euros.
Previously put the revenue from property taxes is not as much money in the coffers of the countries in crisis: Taxing the rich is in most states, less than 4 percent of gross domestic product - in Spain is around 1.9 percent, 2 percent in Italy. Since air seems still up. Higher property taxes could also have unintended effects: Who knows a lot of potential, usually as he smuggled abroad on tax evasion. At least as far as the income of the top earners, Spain has already forged ahead. Prime Minister Mariano Rajoy has raised the top tax rate from 45 percent to 52 percent. The French still pursue rigorous plans: President Hollande will unbutton the top earners of more than EUR 1 million annual income three quarters of their salary for State purposes.
All Europeans, if they have financial assets and life insurance
A popular method of over-indebted countries it was in the past, wegzuinflationieren the debt, so pay the debt with freshly printed money. Because more money is in circulation, it loses value. This is good for the borrowers, but bad for the creditors. Therefore, the voices become louder, urging a debt crisis of countries by inflation. Must pay the creditors who now get back less in real money - and indeed in the whole euro area. So far, however, inflation rates in most European countries remain below two percent - though critics say that inflation is currently taking place in assets such as real estate.
An inflation träfe not just people with big money accounts, but also people with pension funds and life insurance companies. Because they have their money in government bonds often - and their value vanishes with high inflation. The social consequences would be serious.
Especially the owners of pension funds and life insurance companies, however, would also be taken if the states would go bankrupt. Because then its indirectly owned government bonds would be worth less directly.

Ex-Foreign Minister Joschka Fischer will be answered in the euro crisis to speak: There is talk of chaos, fire and avalanches. It faced a global economic crisis, as alive today if they had not yet experienced.




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Topics Financial CrisisEuropean UnionEuro crisisJoschka Fischer
In a commentary for the "Süddeutsche Zeitung" criticized the Green Party politician and former Foreign Minister Joschka Fischer, the current European policy.
The European house was "on fire," said Fischer, and Europe. led by Germany, delete "rather than continue with kerosene with water." Europe must summon the courage to set up a fiscal union with a common budget, uniform tax policy and guarantee the debt.
"Europe is now on the edge and is in precisely these fall into the coming months, if not now Germany and France together get them back onto and the courage of a fiscal union and political union of the Euro Group muster," said former Secretary of State.
If the euro fail, the EU will disintegrate. As a consequence, there could be a global economic crisis, as they have not yet experienced the present generations. Greece threatened to descend into chaos.
"And then sets in the run on the banks in Spain, Italy and France will trigger an avalanche that Europe is beneath them." Without the euro, Europe would disappear from the world political stage.
Fischer's conclusion: Germany must opt ​​for the fiscal union. "And that means that Germany is finally the financial survival of the euro zone, with its economic power and its ability to guarantee."

Federal government rejects criticism

The federal government rejected Fischer's criticism back sharply. "Nothing we do is political, focused on the goal of Europe based on the judge, the exact opposite is true," said government spokesman Steffen Seibert.
The federal government strip a very substantial contribution to the development of Europe in the current crisis.

The current bailout of Europe has failed and is not likely to bring about the euro zone out of the crisis. It is therefore inevitable that it will be replaced by another economic concept.
The current rescue package consists of a banking Rekapitalisierungspaket, the euro rescue of the EFSF and ESM, a fiscal pact and an extremely generous monetary policy. Each of these four elements has serious weaknesses.
This requires the Rekapitalisierungspaket that banks increase their capital ratio to nine per cent - giving them an incentive to shrink their balance sheets and thus to award fewer loans and sell the bonds of highly indebted countries. Both are in a crisis is not really helpful.

The support capacity of the EFSF and ESM is not enough to secure greater crisis countries such as Spain and Italy. Due to the insufficient creditworthiness of some countries, the capacity can not currently be extended.
Thus, the proposed fiscal pact will be the Euro countries agree to limit their deficits to a maximum of 0.1 percent of gross domestic product. Only in severe recessions is a deficit ratio of more than three per cent be allowed. Short in combating the recession is hindered, the long-term pact leads to falling public debt ratio, which state investment in education and infrastructure - inhibit - and thus the long-term growth.
Also, the current ECB monetary policy is not sustainable. Because of low interest rates and the almost unlimited liquidity can lead to neglect of risk costs and hence to financial bubbles.
None of the four pillars of the current rescue package can solve the euro crisis sustainably. Therefore, the current system will be replaced sooner or later by a new economic policy construct. Here is not a new solution proposal, seriously, there are only two likely alternatives - and both were primarily from the German perspective is anything but desirable.Euro Bonds have long term serious Fiolgen
One possibility would be the much discussed Euro Bonds. Although in the short term would probably interest the average in the euro area falling overall because the Chinese central bank expected to increasingly buy euro bonds and U.S. government bonds would sell it to diversify their portfolio. These interest rates would, however, obscure the long-term consequences of such a measure, which sooner or later will inevitably come to light.
For the long-term consequences of euro bonds would be serious. The German interest rates would rise significantly and the Greek fall because everyone would pay the average interest rates. In the short term, it would not be noticeable to the German voters likely that changes in interest behind this relationship a gigantic North-South transfers within the euro zone hides - long would this insight does not stop and would bring great tensions within the euro zone with it.
Euro bonds would also generate large misallocations within the euro area, because the interest of a country would be out of proportion to the risk of default. That would weaken the incentive for highly indebted countries to operate finally a responsible fiscal policy, clearly. This highly-indebted countries would continue into debt even higher, which would grow the imbalances between creditor and debtor countries continue -. Until the next, even bigger crisisInflation would be a black future
The second alternative is inflation. The more, the euro area has relied on the European Central Bank (ECB) to stabilize its financial markets, the less the ECB is able to devote themselves to the fight against inflation. Sooner or later, the point will come when the ECB is caught in a conflict and either raise interest rates in order to combat an inflation flare up, or keep interest rates low in order to keep the European financial markets stable. When the financial markets recognize this conflict, it is the ECB have hard to get inflation expectations under control. You could then become a self-fulfilling prophecy.
Both scenarios would mean for Europe, a black future. To avoid these alternatives, Europe must rethink and say goodbye to conventional approaches. A simple four-point plan could make an important contribution to securing the future of Europe.
First Europe needs a "breathing fiscal rule". After a particularly serious problem in the current Fiscal Pact, is that it requires indebted countries to launch massive austerity programs. The countries are already in an economic depression - as currently Greece, Portugal, Italy and Spain. And the austerity programs exacerbate the crisis and thus lead to the opposite of what they really want to achieve: as a result of the economic downturn, falling tax revenues - and transfers rise. This in turn increases the national debt, which creates new demands for austerity measures that exacerbate the economic crisis again. This creates a vicious circle. Therefore, it is necessary to allow recession-affected countries, to stimulate the economy through government spending and tax cuts.
A breathing fiscal rule would allow exactly that: Every country in the euro zone should include a fiscal rule in its constitution, which provides for long-term debt ratio of more than 60 percent of gross domestic product and about how quickly this will be achieved. At the same time must be defined as strongly anti-cyclical fiscal policy should be. This would ensure that an expansionary fiscal policy during recessions also attracts a restrictive fiscal policy in boom times by himself.
Second It must solvency criteria for EU countries are defined. For this, the ECB establish transparent, accountable and publicly communicated criteria. In the event of insolvency of the affected country would go through an orderly bankruptcy and should get in this time, no money by the ECB. Financial contagion would be banned, as other euro countries under its fiscal rules could meet the solvency criteria.
Third The European Commission should use its funds in order to support growth through targeted investments in countries with current account deficits. This could also be used by the European Investment Bank. With such a growth pact, the EU Commission could ensure greater competitiveness in weaker euro-member countries.
4th It must be ensured that large financial institutions whose failure would create macroeconomic problems and mean as a threat to state solvency would not be able to fail. Under the current system, these institutions can be sure to keep their profits in good times to be able to, while large losses are absorbed by the government in bad times. This leads to excessive risk-generated - finally have these financial institutions do not carry their own risk costs.
To solve this problem, new incentives. One possibility would be to require such institutions to include their debt in the form of convertible bonds. Once minimum capital requirements are no longer met, the bonds would automatically be converted into shares - balance sheet considered, so debt would be transformed into equity.
This simple measure would have important implications might not excessive debt because the bonds convert into shares if the capital ratio falls too much. Thus, the capital requirements would have been met. The cost of debt and the associated risks would be borne by the shareholders and no longer have to be borne by taxpayers. Thus the institutions would avoid even a strong incentive to excessive debt - because the shareholders would put pressure on the management to avoid excessive debt, because the conversion of bonds into shares would result in a dilution of the value of existing shares by itself.
Such a four-point plan had the potential to solve the euro crisis and the euro area to sustainably breathe new growth. You just have to want it. All that is necessary for the implementation of this plan is a portion of political will - and above all courage to say goodbye to conventional ways of thinking. This is not the moment yet.