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France's CFDT trade union says both Sarkozy and Hollande have shown agreement with a plan for workers to show flexibility in wages and benefits in return for preserving jobs. This comes at a time when France's trade deficit is widening. It was 69.6 billon euros in 2011. Hourly labor costs in France are 34.20 euros, 14% higher than in Germany, where similiar wage restraint was shown by the unions during the last decade to reduce high unemployment. It is 20% higher than the euro-zone average, according to Eurostat. Now France is looking to adopt some aspects of the German model to improve competitiveness and reduce unemployment.

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Porsche sales for the 9 month period August 2008 to April 2009, fell by 28%, to 53,635 vehicles, with revenue down 15% to 4.64 billion euros. The better revenue numbers are due to a larger sales proportion of the higher margin 911 model. Sales were down in all regions of the world. Porsche's net debt has tripled to 9 billion euros after an attempt to take over full control of VW. It owns 51% of VW shares. Porsche is looking for Quatar investment funds, and is trying to get a 1.75 billion euro loan from state controlled bank KfW to reduce its debt load.

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German unemployment is falling since 2005 when it peaked at 5 million unemployed. Its down by 711,000 in 2007. The unemployment rate is now down to 8.4% and should continue falling. Causes are several trends, a strong external economy means higher exports to Asia, Russia and the Middle East. And demographics with aging population and fewer working age people means jobs created fill the ranks of fewer people available to work. But this trend may be slowed by a further strengthening of the euro, a global slowdown, or a minimum wage that is on the high side 7-8 euros instead of 5-6 euros.

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Italy and the European Union turn to former ECB president Mario Draghi for leadership of the new government in Italy. He is seen as the best choice for Italy's recovery with financial help from EU funds. Mr. Draghi has his personal reputation as ECB president for recovery of the euro currency in the face of austerity policies pushed by the German finance ministry, and the 200 billion euro funds going to Italy, to ensure a recovery. "Consciousness of the emergency entails answers that are up to the challenge," says Draghi.

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Krugman comments on the Swiss National Bank's decision to give up the peg of 1.20 to the euro made in 2011, and reduce interest rates to a negative 0.75% on Jan. 14, 2015. He points to the dangers of complacency about the deflationary trend in Europe, Japan and the U.S., and deflationary pressures in China in the first quarter of 2015.

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Gemany face a serious challenge from Portugal and the teamwork of Christiano Ronaldo, Bruno Hernandez, Bernardo Silva, Diogo Jota in Euro 2021 soccer on June 19.

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Floyd Norris says the announcement by the ECB on Dec. 20, 2011, that 523 banks borrowed 489 billion euros under the newly created Long Term Financing Operation goes a long way towards giving Europe time to address the debt crisis. A major problem is recapitalization of European banks and the ECB's action helps address this problem. This is one of the achievements of the December summit of European leaders, though it was not the way markets had expected. Markets were focussed on large scale bond buying by the European Central Bank or issuance of euro bonds. ECB head, Mario Draghi, aware of widespread opposition in Germany to such proposals made it clear this was not going to happen. The Long Term Financing Operation of the ECB provides unlimited amounts of loans to European banks at 1% for 3 years, and accepts sovereign government debt as well as other types of securities as collateral. The result of this action was to lower the yield on a recent Spanish bond auction to 1.7% for three month bills from 5.1% the prior month. Spanish and Italian banks can now buy government debt of their countries and use the bonds as collateral at the ECB for three year loans at 1%. This Norris estimates will generate profits of about 37 billion euros for European banks from the difference between the ECB rate of 1% and the rate on two year bonds of Spain and Italy of 3.6% and 5.1% respectively for the bond purchases of 489 billion euros- calculated on a spread of 2.5 percentage points over three years. Another infusion of funds from the ECB will occur in February 2012. The new capital infusion gives European banks less reason to reduce lending in the eurozone as they work to meet the higher capital reserve requirements set under new Basel III rules. This is especially important given the austerity measures being implemented across the eurozone countries and Britain to reduce government deficits, and in light of the lower growth expected as a result....

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Defying the odds after falling behind 0-2 England make it up with coach Wiegman's substitutes to 3-2 in Euro soccer quarterfinals 2025. The directness and physicality of the Swden team and England are outplayed in the first half. The second half rebound is similar to the way France rebounded against the Netherlands. The French team however moved much further to end the game completely outplaying the opponents.

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Champs Elysees has become a tourist trap with about 72% of people on the avenue tourists. It is shunned by Parisians and most people who have seen it deteriorate so much. Now mayor Anne Hidalgo is planning a 200 million euro redesign to turn it into a garden space for locals.

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India will allow automobile imports at 10% duty instead of 110%, allowing 250,000 EU automobiles into the Indian market, as part of the deal that benefits Germany. Tariff on European wines will go down from 150% to 20-40%. Duties on olive oil and processed food such as pasta and chocolates will go down to zero, which will benefit Italy, and Switzerland. A labor mobility agreement will let professional workers and seasonal workers from India into EU and EU to India. New talks will bring India into the EU's Horizon Research Programme.

It will double EU exports to India by 2032 over 6 years when it is implemented starting in 2027. An astonishing 97% of traded goods are included for cutting or eliminating tariffs. It will save EU 4 billion euros in duties, says the EU. Tariffs are cut on a vast arrayof industrial products- iron and steel (India benefits) chemicals, plastics, pharmaceuticals (India benefits) and machinery (Germany benefits).

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Polls published by IDEA in Hungary that show less than 10% of Hungarians see EU as a concern most are concerned about corruption and governance and public services cost of living. This was done before the election and showed Tisza at 39% and Fidesz at 30% support with 22% undecided at the time who swung in favor of Magyar and Tisza party. This shows that policies will change and Tisza supporters by large majority want change in policies friendly to EU. Yet the election was fought for good governance, good public services and lower cost of living. This means changes will not be too drastic  with Russia, not keen on Russian oil imports but maintaining pragmatic relations with Russia. But it makes a difference as 18 billion euros will be coming to Hungary from EU that were frozen under Orban which can finance better public services. Rule of law can improve and corruption can be reduced in government for Hungarian society to be seen as healthy after a quarter century of one party government by Fidesz party of Orban. ...

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Of the 10 parties expected to win seats in the Greek parliamentary elections, 7 oppose the IMF program for Greece and 2 call for exit from the euro. A Pasok-New Democracy coalition government is by no means certain. Pasok and New Democracy largely supported the IMF program before the elections. Greece has to make 3 billion euros of spending cuts right after the elections and 12 billion euros in 2013-2014 under the IMF program. Poor showing by Pasok and New Democracy could lead to calls for changes to the IMF program. About 73% of Greece's debt is now in official hands- 23% with the European Financial Stability Facility (EFSF), 21% bilateral government loans, 21% ECB, 8% IMF. Only 27% is now in the hands of private investors after the debt restructuring. The election of Socialist candidate Hollande in France who has declared the handling of Greece by the EU deplorable and a failure of governance not only in Greece but in Europe, would also add support to calls for changes in the IMF program to include growth measures. Hollande predicts a large public contribution by governments, the EFSF and the ECB, the IMF, to match the 70% contribution of private investors. The IMF appears to have anticipated this by recently enlarging its rescue fund....

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The collapse of the Irish economy as house prices drop 50%, bank stocks drop 90% and unemployment rearches 10% in 2008. In Limerick unemployment is 14% and higher in some areas of the city. Mr Dunne, Ireland's best known developer, once paid in July 2005 the amount of 379 million euros for a 7 acre plot in the exclusive Ballsbridge neighborhood of Dublin. He planned a one billion euro development on that site. He is now insolvent.

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Krugman says the Euro was basically flawed when a single currency was established without political or fiscal union. Because of this the problem can only be solved he says, by action in Brussels and Berlin. Greeks he points out work longer hours than Germans and are not lazy, the welfare state is larger in Sweden and Germany, and Greeks were able to finance imports through trade, shipping and tourism before Greece joined the eurozone. After joining the euro foreign money poured into Greece causing inflation and making Greece wages rise with labor productivity 25% below the European average, making Greece uncompetitive. A lot of the foreign money was wasted and should not have been loaned to Greece in the first place, except that foreign banks perceived the eurozone membership as an implicit guarantee.

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Recent polls suggest that 4 out of 5 Germans say they are not benefitting from the rebound. Germany has experienced growth with the recovery in export markets in Asia, but the benefits are not being seen at home. Experts at the OECD, and at Duisburg-Essen University's employment institute, say that there has been a downside to the unemployment rate having reached 7.6%; much of this gain has been achieved by expanding the low wage sector. Something like this has not happened in other European countries. The OECD employment outlook report 2010, reveals that 21.5% of Germans were employed in the low-wage sector in 2008, compared to 16% in 1998. The Duisburg-Essen University estimate is that 2.3 million workers were added in this sector from 1998 to 2008, with a total of 6.55 million workers in this sector in 2008. What is happening according to experts is that the Hartz IV labor-market reform is subsidizing the low wages paid by the private sector. And the German government has spent $50 billion in subsidies for people in this sector since 2005. The concern relates to consumer spending which is tight in Germany, even as exports have done well in the recovery from 2008. Average net income has actually fallen since 2004 in Germany, reaching 15,815 euros in 2009 from the figure of 16,471 euros in 2004. Germay has no minimum wage across all sectors. To have a minimum wage comparable to other European countries, hourly pay would have to be between 5.93 euros and 9.18 euros. The DGB group of unions have called for a 8.50 euro minimum wage. ...

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Corruption in Greece, just as the Greek economy burdened with some of the largest debt in the European Union. The threatens to weaken the EU with the prospect of Germany and other countries having to help Greece avoid adefault on its debt. This would only draw markets attention to other economies like ireland, Britain and Italy which are also burdened with large debt.

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The Economist view is that the USA, the Euro-zone, and the emerging markets, are all moving in different directions. The US has failed to address deficit concerns in the recent Bush tax cuts deal between Obama and the Republicans. The Euro-zone faces the prospect propping up its weaker members facing a debt crisis. and slowing growth from spending cuts.The monetary conditions are too loose and the flow of capital into emerging markets risks increasing inflation. This increases the chances of a macroeconomic shock if the govenments and central banks in emerging markets don't get the adjustments right- either doing too much or too little. The US faces the prospect of problems in the bond market with current management of public finances.The Economist views the risks compounding as a result of these divergences between these three regions, with the prospect of 2011 becoming a year of damaging shocks.

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ECB president Mario Draghi describes the problem of financial fragmentation in the EU, as each country's national supervisors ask their banks to withdraw their activities to within national boundaries. This ringfencing of liquidity positions means the interbank market is not functioning. Draghi says this financial fragmentation is within the mandate of the ECB to correct. He points to the risk of convertibility that has more and more to do with the premia being charged for Spain's and Italy's government bonds, not just the perception that the counter party can fail.-"To the extent that these premia have to do with factors inherent to my counterparty, they come into our mandate, they come within our remit." Draghi's effort to define the issues of financial fragmentation, and sovereign premia "hampering the functioning of the monetary policy transmission channels," is critical because the ECB sees it important to act within its mandate. The final point he makes is a political one about the future of the euro: "When people talk about the fragility of the euro, and the increasing fragility of the euro, and perhaps the crisis of the euro, very often non-euro area member states or leaders underestimate the amount of political capital that's been invested in the euro. We view this, and we are not unbiased observers in Frankfurt. We think the euro is irreversible. And its not an empty word now, because it preceded saying exactly what actions we are making that would make it irreversible." On the progress made, the acceptance of one financial and banking supervisor by member countries of the EU is seen as part of the idea of shared sovereignty necessary to put meaningful supervision across national boundaries in place. And on the structural reforms and deficit controls needed to be put in place he sees "the pace has been set, and all the signals that we get are they don't stop reforming themselves."...

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A $12 million euro loan taken out in 2014 by Marie Le Pen's party from a Russian bank that was transferred to a Russian military aircraft parts maker is the subject of much debate in the French presidential election. It was brought up by Mr. Macron in the recent televised debate with Le Pen.