Translated from the Brussels jargon, the PEC – president of the European Council – report will be Herman Van Rompuy’s preliminary text of the future of “Economic and Monetary Union”. This will be circulated in sealed envelopes next week.
The separate text will set out a “roadmap” to a banking union, polling debt via some kind of eurobonds and political union via EU treaty change over the next 10 years.
Also important and controversial is will the “other financial stability measures” paper, including financial transition tax proposal and moves towards a banking union that can be taken by the EU before the end of the year.
Britain faces major fight over an FTT, or some other banking levy, at a meeting of EU finance ministers on Friday ahead of the summit next week.
The UK – which has no veto under current proposals on deepening EU banking regulation – also faces the ECB becoming Europe’s main banking regulator and the creation of national bank resolution funds that can be asked to contribute to European bank bailouts on a “compulsory” basis.
Greece election: pro-bailout party to attempt coalition - BBC News
Antonis Samaras: ''This is a victory for all Europe''
The leader of Greece's pro-bailout New Democracy party, set to win most seats in a general election, says he wants to form a government as soon as possible.
Antonis Samaras said Greeks had voted to stay in the euro, and called for a "national salvation government".
The leader of the anti-bailout Syriza party, Alexis Tsipras, which came a close second, agreed Mr Samaras should be first to try to form a coalition.
Germany said it viewed the result as a decision to "forge ahead" with reform.
With 80% of votes counted, interior ministry projections put New Democracy on 29.9% of the vote (130 seats), Syriza on 26.7% (71) and the socialist Pasok on 12.4% (33).
New Democracy leader Mr Samaras said: "The Greek people voted today to stay on the European course and remain in the eurozone.
"There will be no more adventures. Greece's place in Europe will not be put in doubt."
"The sacrifices of the Greek people will bring the country back to prosperity," he promised.
Analysis
And so this second election in two months, seen as the most important in Greece's modern history, is going to go right down to the wire.
The top two parties - with very different visions of how to deal with the Eurozone crisis - are neck and neck. For New Democracy supporters, who were hoping for a clear win, it will be a nervous few hours.
Their leader Antonis Samaras had portrayed this election as a choice between staying in the euro or going back to the drachma.
But that's not how Syriza and its supporters see it - they believe it's about promoting a different kind of economic policy to help Greece out of a spiral of recession and unemployment.
Syriza supporters gathered at Propilea in front of Athens University began to chant slogans when the first exit poll numbers were revealed.
For now, the politicians are watching and waiting and probably biting their nails. Whoever wins, however narrowly, gets an extra 50 seats in parliament. It could be the decisive difference.
But the winner still needs to put together a coalition government which is strong enough to last - and that may not be so easy.
He also said Greece would "honour its obligations".
The BBC's Mark Lowen in Athens says that suggests Mr Samaras wants to press ahead with spending cuts demanded by the country's international creditors.
European leaders have warned that if a new Greek government rejected the bailout, the country could be forced to abandon the single currency.
While the radical-left Syriza and other smaller parties have opposed the bailout, New Democracy and Pasok said they would keep it in a renegotiated form.
Germany's Finance Minister, Wolfgang Schaeuble, said he viewed the election result as a decision by the Greek people "to forge ahead with the implementation of far-reaching economic and fiscal reforms in the country".
Eurozone finance ministers said in a statement that such reform was "Greece's best guarantee to overcome the current economic and social challenges and for a more prosperous future [for] Greece in the euro area".
They said they expected representatives of the European Commission, the European Central Bank and the International Monetary Fund - the so-called Troika - to return to Athens as soon as there was a Greek government in place.
Germany Foreign Minister Guido Westerwelle suggested Athens might be given more time to comply with its obligations.
"There cannot be substantial changes to the agreements, but I can well imagine talking again about timelines," he said.
Mr Tsipras, the Syriza leader, congratulated Mr Samaras on his apparent victory, and said he had the right to try to form a government.
But he appeared to rule out joining such a coalition, saying Syriza would "not sacrifice our position" of opposition to the austerity programme.
Difficult talksIf the projections from the interior ministry are proved correct, New Democracy should be able to build a majority coalition with the socialist Pasok, benefiting from a rule which gives the leading party 50 extra seats in the 300-seat chamber.
However, coalition talks may not be easy. After a first, inconclusive election six weeks ago, each of the main parties tried but failed to form a coalition government.
The leader of Pasok, Evangelos Venizelos, proposed a broad four-party coalition including New Democracy, Pasok, the Democratic Left and Syriza.
"No decision can be taken without this national unity," he said.
Analysts suggested Mr Venizelos had doubts over the viability of a coalition with a narrow majority.
When his party was in power it suffered numerous defections and rebellions as it tried to impose unpopular austerity measures.
Our correspondent, Mark Lowen, says that with such a strong showing by Syriza, Greece could be in for an autumn of discontent by opponents of the bailout deal.
Four other anti-bailout parties look set to take between 60 and 70 seats. They include the far-right Golden Dawn, which looked set to secure about 7% of the vote.
Sunday's vote is being watched around the world, amid fears that a Greek exit from the euro could spread contagion to other eurozone members and deepen the turmoil in the global economy.
Tough austerity measures were attached to the two international bailouts awarded to Greece, an initial package worth 110bn euros (£89bn; $138bn) in 2010, then a follow-up last year worth 130bn euros.
Polls suggest most Greeks want to be rid of the bailout and its onerous conditions, but want to stay in the euro.
Various European leaders have warned they cannot do both.
Greek bailout: Where the parties stand |
|||
|---|---|---|---|
| Party | Stance on bailout | Share of vote May | |
| Pro-bailout parties | |||
|
New Democracy |
Keep bailout but more time for restructuring and EU help to stimulate growth |
19% |
|
Socialist (Pasok) |
Keep bailout but subject it to a "structured and courageous revision"; implement fiscal adjustment over three years, not two |
13% |
Anti-bailout parties |
|||
|
Syriza |
Cancel bailout, nationalise banks and freeze privatisations, but stay inside eurozone |
17% |
|
Independent Greeks |
Reject bailout but remain in eurozone |
11% |
|
Democratic Left |
Gradually disengage from bailout but stay in eurozone |
6% |
|
Communist (KKE) |
Unilaterally cancel debt, leave the EU and restore Greece's own currency |
9% |
|
Golden Dawn |
Tear up the bailout but not necessarily abandon the euro |
7% |
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RPT-FOREX-Euro reaches one-month high on Greek vote results - Reuters UK
(Repeats with headline tag)
* Euro makes gains on dollar and yen on vote relief
* Greek results suggest pro-euro parties holding slim majority
* Risk assets looking bid, with Aussie lifting to 5-week top
By Wayne Cole
SYDNEY, June 18 (Reuters) - The euro hit a one-month high against the U.S. dollar on Monday after Greek election projections showed parties committed to staying in the single currency were on course to secure a slim parliamentary majority.
The euro rose to $1.2747 in early trade, from around $1.2655 late in New York on Friday. Volumes were light with traders cautious on how the result would pan out.
"There's still some uncertainty about what form the government will take and the market's waiting for clarity on that," said Peter Dragicevich, an FX economist at Commonwealth Bank of Australia.
"If equities open up the euro should be supported around these levels," he added. "But the vote doesn't sort out Spain's banking problems or the lack of growth in the region, so we don't see the euro going much higher."
With 80 percent of the votes counted, New Democracy had 30.1 percent of the vote to the radical leftist SYRIZA's 26.6 percent, with PASOK on 12.5 percent.
Because of a 50-seat bonus given to the party which comes first, that result would give New Democracy and PASOK 163 seats in the 300-seat parliament, in an alliance broadly committed to the 130 billion euros ($164 billion) bailout.
Technically the break of $1.2670 resistance was supportive, with the next barrier at $1.2745. Against the yen, the euro rose to 100.59 yen.
The dollar inched up to around 78.90 yen, compared with 78.65 yen in late trading in New York on Friday.
Currencies considered to be leveraged to global growth enjoyed a relief rally, with the Australian and New Zealand dollars up at their highest in more than a month. The Aussie firmed to $1.0124, from around $1.0048 late on Friday.
CBA's Dragicevich noted the U.S. currency was restrained by speculation the Federal Reserve was nearer to another round of quantitative easing.
"There's a chance the Fed could adopt more of an easing bias at its policy meeting on Wednesday and that should cap the dollar for now," he added.
Most other asset markets were yet to open for trading, after shares, commodities and bond markets had climbed on Friday.
Australian share price index futures indicated a higher open to the S&P/ASX 200 index.
The initial Greek vote results drew expressions of relief from world leaders. German Finance Minister Wolfgang Schaeuble said the results, if confirmed, were a commitment to reform, while the White House hoped for the speedy formation of a new government that would remain in the euro zone.
"The response suggests investors are anticipating the formation of a pro-bailout government," said analysts at CitiFX in Singapore. "This looks to fit in line with the most benign scenario for the election."
"Still, we are skeptical that this marks the beginning of a new uptrend," they added. "For sustained gains in EUR in the days ahead, further 'encouraging' headlines will likely be needed from this week's G20 meeting and the later EU summit." (Reporting by Wayne Cole and Naomi Tajitsu; Editing by John Mair)
Finance Minister asks LIC to attract younger customers - dayandnightnews.com
The Finance Ministry has asked LIC to devise a strategy with a view to focus on young people so that the average age of policy holders can be brought down leading to improvement in bottom line. “The average age of policyholders (of LIC) is very high. It needs to come down,” a top Finance Ministry official said.
LIC should bring proper policy and reach out to younger people so that this objective can be achieved, the official added. Average age of insured with LIC is 37 years. Higher average age raises risk for LIC. Lower the age of people, the mortality rate such cases are lower. Thus, it will help the company in improving profitability. The insurer behemoth has a market share of around 81 per cent in terms of new business policies and 71.3 per cent in terms of new business premium during 2011-12.
Finance Minister Pranab Mukherjee in a recent meeting with the heads of the public sector insurers had appreciated role of LIC in implementation of social security schemes. “I congratulate LIC for being the trust factor among the people. LIC also is successfully implementing Social Security Schemes – Aam Aadmi Bimay Yojana and Janashree Bima Yojana (JBY),” he had said. “I would advise LIC to work out “Kisaan Bima Yojana”, a life insurance scheme for the farmers on the lines of JBY where the coverage can be extended up to the age of 65 or 70 years and the additional premium could be borne by the farmers covered under the scheme,” he had said.
In order to increase penetration of insurance in the country, the Finance Ministry has advised insurers to appoint Business Correspondents as agents. It will make business sense for insurance companies to appoint these Business Correspondents as agents to tap the huge potential of insurance coverage in rural areas.
No related posts.
RPT-FOREX-Euro briefly jumps broadly after Greek vote results - Reuters UK
(Repeats with "FOREX-" tag in headline)
WELLINGTON, June 18 (Reuters) - The euro briefly rose after Greek election results showed parties committed to its debt bailout plan were on course to secure a slim parliamentary majority, keeping the debt-indebted country in the euro zone.
The euro rose to around $1.2730, according to Reuters data in early Australasian trading on Monday, its highest since May 22.
But it pulled back to around $1.2690 by 1948 GMT, as investors were uncertain about what shape a coalition government may take.
Official vote projections from Greece's interior ministry showed the pro-bailout New Democracy taking 29.5 percent of the vote, with SYRIZA in second place with 27.1 percent. The Socialist PASOK followed in third place with 12.3 percent.
"It's positive so far for the market, and risk currencies are opening higher," said Imre Speizer, a senior market strategist at Westpac.
"New Democracy has taken first place ... but we don't know what the coalition's going to look like, so we still do have some uncertainties remaining and any gains should be limited."
Against the yen, the euro rose to 100.45 yen, before edging back to around 100.00 yen.
The dollar rose to around 78.90 yen, compared with 78.65 yen in late trading in New York on Friday,
Currencies considered to be high risk, including the Australian and New Zealand dollars , rose to their highest in more than a month, before trimming gains.
Most other asset markets were yet to open for trading, after shares, commodities and bond markets had climbed on Friday.
Australian share price index futures indicated a higher open to the S&P/ASX 200 index. (Reporting by Naomi Tajitsu; Editing by Maureen Bavdek)
Forex: EUR/USD poised to open higher on Greek elections result - NASDAQ
FXstreet.com (Buenos Aires) - The EUR/USD is poised to open higher, amid Greek elections results: the latest polls result shows the New Democracy getting near the 30% of the votes, while the Socialism is 3rd with a 13%. If both parties form the coalition they suggested, they will be able to form a vote with the 151 sits required. Latest news however, show Socialist Pasok is not willing to form a coalition without Syriza that is getting now around the 26% of the electorate.
Despite the comes and goes that will likely extend until a government is actually set, the EUR/USD quotes in early interbank trading above 1.2700, having been as high as 1.2727 so far. GBP/USD is set to open around 1.5740, and AUD/USD around 1.0100; market players are pricing in lower chances of Grexit, along with higher chances of more QE in the US.
Money laundering cases tough, critical - Lubbock Avalanche-Journal
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McALLEN — When it comes to arresting drug traffickers and dismantling organized crime, the investigation into a U.S. horse racing operation allegedly laundering money for one of Mexico’s most powerful cartels is rare — and difficult to ...Islamic finance: Neo-Con madness again - Hindustan Times
Poor Subramanian Swamy. The prospects of Islamic finance and banking options in India make him nervous as a rain-drenched cat.
He thinks Arab funds will flow like water, endangering India’s financial sovereignty. With Swamy and friends, such paranoid stuff and canards are bread and butter. Without these, they cease to exist. Muslim-bashing is the summon bonum of their existence; Islam a bogey they raise to stay alive. Without this all-important vocation, they are dead and gone.
The JP Morgan Chases, Dow Joneses, Citibanks, Morgan Stanleys and the Stancharts out there however know the exponentially growing Shariah-complaint financial market well and have dabbled in it. Not because of religious requirement. They are in it for the profit. The State Bank of India too offers Shariah compliant products in many Gulf countries. There’s money to be made after all.
But this isn’t about Islam or finance really. This is rather about defending principled Indian liberalism from its sworn enemies.
A vitriolic propagandist, Swamy is one of those right-wing cynics who will have no qualms trampling upon religious liberty.
This is about stopping the misinformation they spread, while reinforcing our own intellectual credentials in battling the neo-CONs — the pun is not intended but incidental.
This is going to be the challenge we will face for a long, long time. Cultural conservatism cannot be allowed to be passed around in the name of political conservatism by near-fraudulent means.
Back to Islamic finance. With at least $500 billion in assets globally managed in accordance with Shariah, or Islamic law, and the sector growing at over 10% a year, according to Standard & Poor’s, Islamic finance isn’t about Islam as much about wealth management for potential investors.
In principle, Islamic finance seeks equitable wealth by banning exploitative financial practices. In practice, it’s about side-stepping paying of interests, gambling on derivatives and excessive risk-taking. Or investing in casinos, pornography and weapons of mass destruction, pornography or pork.
The fundamental requirement of any investment under Islamic finance is to share both reward and risk. So, products are designed in such a way that both profits and losses are equally shared among lenders and borrowers. There cannot be a zero-sum game: one’s profits cannot come from other losses.
Financial institutions love Islamic finance not because of its moral compass but because of something far more basic: its market potential.
HSBC and Citigroup established their global Islamic finance divisions in the 1990s, as did Ernst & Young. Unlike Swamy, they know money isn’t Muslim or Jewish.
Even central banks can’t resist the temptation. London could soon be the hub of Islamic finance in the west. The Japanese and British govts — in an attempt to attract Muslim investors — have announced plans to issue sovereign bonds that conform to Islamic law.
Ford Motor sold its $848-million Aston Martin to Investment Dar, a Kuwait-based Islamic bank, under a Shariah-compliant sale. Why? Because it got a lucrative client. A Shariah-compliant private equity firm based in Bahrain owns Caribou Coffee, America’s second-largest coffee chain, just as Saudi British Bank is part-owned by HSBC and Standard Chartered.
France can’t stand the veil but has changed its tax and legal codes to attract Islamic investors. All leading banks in London have so-called Islamic windows.
Rules have been amended in non-Muslim financial centres, such as London, Singapore and Hong Kong, to facilitate Islamic finance.
A home-purchase plan for the mainstream UK market approved by the UK’s Financial Services Authority has been designed around Islamic finance principles and shows that Islamic finance can inspire sustainable financial products.
The principles of this home purchase plan are the same as those governing Islamic housing schemes in the UK: Risk-sharing, not charging high fees; allowing for part rent, part purchase, sharing equity upside and sharing downside property risks.
Yemen’s Al-Amal bank won accolades of the Consultative Group to Assist the Poor (CGAP), an arm of the World Bank, in 2010 for its innovative Islamic microfinance initiative, a lease-to-purchase arrangement in which borrowers work as salaried employees of the bank they borrow from, while also working on their own plans for which they took the loans.
Islamic financial services need to be seen as an investment product in a broader portfolio bouquet.
The idea is not to foist Islamic finance on the rest of the world economy but to allow a healthy competition between the two. Being a niche product, it cannot, definitionally, supplant conventional banking.
In the context of greedy practices of the sort that led to the 2008 credit crisis, it however merits a closer look.
But more than anything else, it should be there on the table, laid out among many other instruments as an option for Muslims to enhance wealth and the quality of their lives within their religious beliefs.
Global banks are happily offering Islamic finance products and will do so as long as there is a market and demand. Doubting Thomases, such as Swamy, can continue, in the meanwhile, to spread some more scare. That’s how they earn their profits: from hate-mongering.
McCain sees new effort to reform campaign finance - MSNBC Firstread
Former presidential hopeful John McCain talks about the impact private donations have on the presidential campaign.
Arizona Sen. John McCain predicted a renewed effort of reform the nation's campaign finance laws as an outgrowth of the unrestrained influx of donations in this year's presidential campaign.
The Supreme Court's 2010 decision in the Citizens United case, which struck down many of the restrictions on political spending and spurred the advent of so-called "super PACs," was one of the worst in modern history, McCain said.
"I think there will be scandals as associated with the worst decision of the Supreme Court in the 21st Century — uninformed, arrogant, naive," McCain said on NBC's "Meet the Press."
"The fact is that the system is broken," he later added. "I predict to you that there will be scandals, and I predict to you that there will be reform again."
McCain has long been an advocate of campaign finance reform; a landmark 2002 campaign finance law bearing his name was the subject of the legal challenge that led to the Citizens United ruling.
That decision did away with many of the limits on the magnitude of political contributions, fueling an inflation in the cost of campaigns, particularly on the federal level. Super PACs like American Crossroads, Restore our Future and Priorities USA Action have been able to spend tens of millions of dollars already on the campaign. They're able to cull their support from a handful of wealthy donors, the size of whose report is sometimes clouded by twin nonprofit groups associated with super PACs, which don't have to disclose their donors.
One of the largest such donors has been Sheldon Adelson, the casino magnate who gave over $10 million to a super PAC in the primary that supported Newt Gingrich for president. Adelson's since pledged at least $10 million to the pro-Romney super PAC, Restore Our Future.
McCain fretted earlier this week that Adelson's contributions would be tantamount to "foreign money" entering the campaign, since Adelson's fortune is built in part by revenues from overseas casinos.
McCain said on Sunday that he's worried about Adelson's influence, but no more so than the influence of organized labor spending or other donors' impact on the campaign.
"Not any more than other people who will give lots of money; not any more than the trade unions, the labor unions have. The whole system's broken, and there's a wash. I don't pick out Mr. Adelson any more than I pick out Mr. Trumka," he said, referring to the AFL-CIO's president.
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