Nicolas Sarkozy and Angela Merkel were to Sunday on the table all matters relating to the crisis in the euro area: Greece, Financial Stability Fund, recapitalization of banks … But rather than concrete decisions or announcements spectacular, the two leaders particularly wanted to mark the kick off of a hectic schedule that will take them to the Cannes G20 3rd and 4th November. "Europe will have solved all its problems," before that date, have hammered the President and Chancellor.
The next step should come from Brussels. The European Commission said Friday that it would present "in the days to come" proposals for a coordinated recapitalization, which should help to reassure markets worried about the resilience of the European banking system to the crisis. It could soon make its findings on Monday.The European Banking Supervisors (EBA) should also provide estimates of the impact of a sharp depreciation of the Greek debt on bank balance sheets.
With these data in the hands of the leaders arrive for summit of the European Union and the euro area provided 17 and 18 October in Brussels. They will then give a "clear signal" on the subject, said Angela Merkel. The idea is to display a "consensus" on the amount and schedule for building banks' capital. For we must recognize that, as regards the amounts, blur still dominates: the figure of 100 billion to inject capital is the most commonly cited, which is much less than 200 billion euros mentioned a few days ago even by the IMF free business cards.
The next step in the operational implementation of the European financial stability should have been ratified by all parliaments by mid-October: Malta decides before Monday Slovakia on Tuesday. Aid to Greece will be released.
"Acting quickly"
Throughout this long process, Europe should remain under pressure. In recent days, Obama has returned several times to the load on the resolution is too slow for his liking of the crisis in the eurozone. European leaders must "act quickly," pleaded the U.S. president, hoping that a "very concrete plan of action" would be presented.He believes that the crisis in Europe could have a "very real" in the United States.
For her part, Angela Merkel last week has dampened hopes for a reform of the international monetary system from the G20, saying the work on this subject will not be completed. But the Cannes summit will probably be enough to do with the subject of the European crisis.
ALSO READ:
"Paris and Berlin are given one month to save the euro
"Banks: tensions before the meeting Merkel-Sarkozy
"How to Save the Euro?
The news is reassuring. With a large majority, the Bundestag adopted the new rescue plan the Eurozone. If the vote was little doubt that the amplitude of the majority was still uncertain. According to AFP, German Chancellor Angela Merkel has won the support of its majority.
The new rescue plan foresees an expansion of European powers of the fire in the euro area, the Financial Stability Fund (EFSF), and increased its capacity from 440 to 780 euros milliarsd. "The German MPs have overwhelmingly demonstrated their sense of responsibility," responded the French Minister for European Affairs, Jean Leonetti, in a statement.
Of 611 votes cast, 523 of 620 deputies voted "for", said the chairman of the meeting Norbert Lammert. Only 85 deputies voted against and three abstaining.As expected, two of the three opposition parties, the Social Democrats (SPD) and Greens, have made their voices.
More importantly, 315 members of the coalition voted for the building according to the AFP and a Conservative MP quoted by Reuters. Clearly, Merkel would not have needed the votes of the opposition guaranteed high risk personal loans. This was not a foregone conclusion, the majority having spread its divisions, the previous weeks on this subject.
If the Chancellor had failed to gather his troops, the German government would have been seriously destabilized, fueling doubts about the survival of the coalition. Angela Merkel would have indeed been "made in Germany as a loser," said Holger Schmieding, of Berenberg Bank.
Germany is the eleventh country to approve the reform of the rescue plan initially set up in 2010 to assist countries in the euro area in need.Berlin, because of its predominant economic weight in Europe, will be the first contributor.
The vote of the Bundestag is the first in a series of three crucial. In the coming weeks, he will speak on a second plan of aid to Greece and early 2012, on a permanent rescue mechanism (MES) to succeed the EFSF.
ALSO READ:
"Euro: Paris ready to go further
"The calendar extension to the euro area
"SPECIAL – Depression, fear of debt
Since the beginning of the week, investors in Europe and the United States, is won over by a wave of optimism about the outcome of the crisis of sovereign debt. The CAC 40 jumped 5.74% on Tuesday to finish the session at 3023.38 points, aligning a third straight session rebound. Another encouraging sign is the trading volumes are recovering. Yesterday more than 4 billion changed hands on the great values of the Paris stock exchange.
Other major European markets rose in unison. The Dax in Frankfurt Stock Exchange gained 5.29% and 4.02% London FTSE. And the European indices, the Eurostoxx 50 was up 5.06%. "The anguish of Greece, who were greatly exaggerated, have finally subsided a bit," said one operator.A Wall Street as investors watch with great attention the developments of the rise of public finances in Europe, the relief was also needed. Sitting in the Dow Jones advanced 2.27% and the Nasdaq 2.18%.
"Investors have decided to give credit to European and international policy makers in their efforts to find ways to resolve the crisis of sovereign debt," explained economists broker Aurel BGC. There are "high hopes that one is engaged in the right direction towards resolving the debt crisis in Europe," agreed analysts at LBBW in Frankfurt. Other analysts, however, want to caution, as the strategists of the Crédit Mutuel-CIC who believe that the upturn may not last and that the rumors that stir the markets are certainly still "exaggerated."For them, the hypothesis of the expansion means the European support fund for countries in trouble (EFSF), which propels the securities of banks for several days, "does not solve the structural problems in Europe."
According to the spokesperson of European Commissioner for Economic Affairs Olli Rehn, Europe is considering strengthening the capacity of the European support fund for countries in trouble (EFSF). Rumors press also reported a proposed quadrupling of the Fund's lending capacity to 2000 billion euros. In turn, an official of the ECB, the Austrian Ewald Nowotny, did not rule out declines in interest rates in the euro area.But soon, the German Finance Minister Wolfgang Schäuble assured that Europeans had "no intention of bailing out" the EFSF and called the hypothesis of totally "stupid."
Absent for several weeks, the good news poured in yesterday from Europe and the United States.
On the Old Continent, first. Jean-Claude Juncker, the leader of the finance ministers of the euro area has confirmed the return of the troika, bringing the European Union, the ECB and the IMF, major donors of Greece, by Thursday Athens, which could allow the release of a new tranche of EUR 8 billion, which is vital for the country. At the same time discontent rises and Athens was again paralyzed Tuesday by a wave of strikes in public transport.
Good news also in the United States, in the still under close surveillance of the property.House prices in the twenty largest U.S. cities have stabilized in July, according to Case-Shiller survey.
In Paris, banking stocks, on the front line since the beginning of the sovereign debt crisis, have literally flown the hope of a breakthrough in the situation in Greece.
Societe Generale, had a spectacular end of the session, jumping nearly 17%. For its part, BNP Paribas was awarded 14.15% and Credit Agricole was up 13.10%.
Oil opened up in New York
The euro was weakening on Tuesday to below $ 1.35. In session, the euro stood at 1.3496 dollars, against 1.3523 dollars late Monday.He had fallen in session Monday to 1.3363 dollars, its lowest level since mid-January, prior to recover.
As for commodities, gold has recovered slightly this morning at 1640 dollars an ounce after declining over the last three sessions. Oil evolved soaring Tuesday at the opening in New York, driven by renewed optimism for the determination of the Europeans to resolve the debt crisis in the eurozone. On the New York Mercantile Exchange (Nymex), a barrel of "light sweet crude" for November delivery traded at 82.64 dollars, up by $ 2.40 at the close on Monday night.
How long the French banks will they resist the attacks of which they are the target market? BNP Paribas, Societe Generale and Credit Agricole is in the eye of the storm: their actions have lost between 50% and 55% of their value in three months! This distrust, more violent and against many of their European competitors has two main explanations. On the one hand, French banks are exposed to the vulnerable countries of Europe device (Greece, Spain, Italy …) they hold a large stock of debt of state and they often have subsidiaries. Moreover, their model "universal" makes them more dependent than the average market financing. However, funding has become, if not rare, at least very expensive.
In that context very high voltage, a parade could be a battle plan based on that 2008.The rumors for weeks on a recapitalization by the state of all French banks. The Sunday Journal Sunday evoked an injection of 10 or 15 billion euros. At its off the plane from Washington, the Minister of Economy, French Baroin furiously opposed to "the most categorical denial." Same reaction at the Elysee and the Bank of France. Such an operation would be "useless, or even against-productive," said a source familiar with the matter. For now, anyway, "banks do not want it, they are not in a logic of solidarity, but prefer to play their own cards." The "special case" of Franco-Belgian Dexia, in the words of the governor of the Banque de France, is the subject of specific thoughts.Started in late 2008, the restructuring could involve an alliance with Caisse des Depots et La Banque Postale in the field of financing local authorities (our editions of September 23), but without dismantling or modification of the shareholders, Dexia said.
Maintain and adapt
Rather than a recapitalization, institutions such as the authorities prefer to place a battle plan: take and adapt. Friday, Bloomberg TV, the governor of the Banque de France, Christian Noyer, reiterated his confidence in the strength of French institutions. However, it has raised its requirements: all French banks will have to comply, from 1 January 2013, new prudential regulations known as "Basel 3", that is to say six years ahead of schedule. The effort required is considerable.All things being equal, the transition to Basel 3 means a financial institution that it should, about four times its equity. In fact, banks will reduce the volume and level of risk of their assets and their businesses, so that the capitalization is less effort. The banked profits and payment of stock dividends must achieve the required level. For three years, the sector in France has already accumulated 50 billion euros of additional capital. The line of defense erected by the European Central Bank, whose windows are wide open cash to banks in the euro zone, is also a key element of the device.
"But we're not crazy," says a source familiar with the matter. The possibilities of slippage are many, starting with one that Greece would go bankrupt.Better to be prepared for any eventuality and have a plan B shares at any time, ideally in a European context. Tools that were used by the state in 2008 to recapitalize banks and guarantee their loans have not been dismantled, they can return to duty at any time.
ALSO READ:
"The state would have prepared a plan to rescue banks
"Why do French banks toast
"Access to distrust of French banks
Time to pay the bill has come. The Federal Housing Finance (FHFA) has filed Friday in New York a complaint for fraud against the banks it considers responsible for the subprime crisis. In the end, it is not twelve, as originally announced by the New York Times, but seventeen institutions (ten U.S. and seven foreign) that are affected by this complaint. Among them, the French bank Societe Generale.
Nearly $ 200 billion of securities
The FHFA criticizes all of these institutions have sold financial products backed by mortgages on the two parastatals of mortgages Fannie Mae and Freddie Mac, between 2005 and 2008. At the time, the banks had facilitated access to loans of U.S. households to recruit new customers and sell homes often too expensive betting on rising prices.The system had finally collapsed during the summer of 2008, taking with it Fanny Mae and Freddie Mac.
The FHFA estimate that the seventeen banks have concealed certain characteristics of the securities they sold, including lying about reality checks on the creditworthiness of borrowers households. "The complaints allege violations of federal law governing financial assets and rights (common law) in the sale of securities backed by residential mortgages designed by these institutions," said the FHFA.
All the losses by the two organizations, which then 40% of the outstanding loans granted to the United States is estimated at 30 billion.Placed under public guardianship, Fannie Mae and Freddie Mac have so far cost $ 170 billion to American taxpayers.
The FHFA was assessed for each of the banks in the dollar amount of securities sold to two giants of credit (see box). In total, nearly $ 200 billion of securities that were sold. Most involved, the JPMorgan U.S. (United States) would have sold itself for more than $ 33 billion of securities. Societe Generale for its part would have yielded $ 1.3 billion.
"Fannie and Freddie knew"
The complaint of the Federal Agency is expected to lead to negotiations and a financial agreement to avoid a trial. In all cases, the procedure could be very expensive institutions in question, particularly in the largest U.S. bank by assets, Bank of America.The group should in fact not only defend his own actions, not the worst according to the FHFA, but also the mortgage lender Countrywide and investment bank Merrill Lynch, bought in 2008 make quick cash. Last June, the U.S. bank said it had agreed to pay $ 8.5 billion to end the prosecution of several investors and intended to spend an additional provision of $ 5.5 billion to clear the situation with Freddie Mac and Fannie Mae. The Wall Street Journal fell when it was the agreement to compensate the largest ever signed. The group also announced on the night of Friday to Saturday it plans to reduce its workforce by 10%, equivalent to the elimination of 30,000 positions.
The defensive line of Bank of America today is that Fannie and Freddie knew very well what they were doing."They said they understand the risks" and "now seek to hold other market operators to be responsible for their losses," the group said in a statement.
Regarding the French bank Societe Generale, no figures were given, but the injury is considered "important" by the Federal Housing Finance.
Amount of securities sold by banks
1. JPMorgan (USA): more than $ 33 billion
2. Royal Bank of Scotland (UK): more than 30.4 billion
3. Countrywide (United States, Bank of America): about 26.6 billion
4. Merrill Lynch (United States, Bank of America): more than 24.9 billion
5. Deutsche Bank (Germany): more than 14.2 billion
6. Credit Suisse (Switzerland): over 14.1 billion
7. Goldman Sachs (USA): more than 11.1 billion
8.Morgan Stanley (USA): more than 10.6 billion
9. HSBC (UK): more than 6.2 billion
10. Ally (USA, formerly GMAC): over 6 billion
10. Bank of America (USA): over 6 billion
12. Barclays (UK): about 4.9 billion
13. Citigroup (USA): over 3.5 billion
14. Nomura (Japan): more than 2 billion
15. Societe Generale (France): nearly 1.3 billion
16. First Horizon (USA): 900 million
17. General Electric (USA, parent company of GE Capital): 550 million
ALSO READ:
"Washington wants to pay the housing crisis on banks
"Bank of America pays the subprime crisis at a high price
"Buffett invests $ 5 billion in Bank of America
"The subprime continue to be expensive
"Fannie Mae also requires an extension in Washington
The measures announced in mid-August by Angela Merkel and Nicolas Sarkozy are now entering into their implementation phase, wanted to highlight this weekend the Minister of Economy, Baroin, in an interview published in the Journal du Dimanche.
Franco-German work beginning to bear fruit. On the harmonization of corporate taxes first. Baroin said that the proposals on a plate and a single rate in France and Germany are on the table in 2012, for implementation in 2013. "In practice, we expect an early convergence of the supplementary budget in September," said the minister. Impossible, however, as to what are currently the preferred paths to achieve such convergence. If, for example, the corporate tax will fall in France, or if it will increase across the Rhine.
The tax on financial transactions discussed in G20
The terms of the tax on financial transactions announced on August 16 by Angela Merkel and Nicolas Sarkozy also remain mysterious. "What is the basis used? Rate? Who receive income: the Commission, the States? We have not finalized the position on this issue ", said Minister of Economy, Baroin, in an interview published this morning in the Journal du Dimanche.
The German Minister of Economy Wolfgang Schäuble and his French counterpart have yet met last week, including to clarify the contours of the future tax, the timing is tighter. As originally announced by the Franco-German tandem, a first draft of the text should be proposed to the European Commission in the coming weeks."We are preparing a specific proposal that we send to the Committee in September," Baroin repeated the weekly.
Delicate negotiations
A timing that will allow the Commission to bring to the table a legislative proposal on the subject in early October, which will integrate the conclusions of the Franco-German couple. "It will be examined in the fall. We are determined to achieve results at the G20 3 and 4 November in Cannes, "said the minister. So much for the calendar. So far, the European Commission was considering the track instead of a 0.1% tax on transactions involving stocks or bonds, and 0.01% for those on products.
The adoption of such a tax at the European level is difficult, however, regardless of the arrangements envisaged.The unanimous agreement of the 27 states should indeed succeed the vote the proposal by the European Parliament. But Britain, which houses an important financial center, as well as Ireland or Luxembourg, are currently strongly opposed. Main question, the financial sector also protested against such a hypothesis, arguing the risks of travel to areas of the transactions tax warmer.
Do not panic in financial markets. This seems to be the credo now senior U.S. policy makers after a weekend marked by new sterile discussions between elected Republicans and Democrats on the thorny issue of the reversal of U.S. debt. Twice since Friday night, the talks between the two sides have failed to unlock the status quo on the action to start to reduce the U.S. debt. With a huge debt ceiling set by law (14.294 billion U.S. dollars) was exceeded on 16 May, which could lead the world's largest economy straight into a default on 2 August.
Friday night, the country experienced a further escalation in the standoff between Democrats and Republicans, they refused to comply with the requirements of President Barack Obama.The Democrats call indeed now $ 400 billion of additional tax increases. A change of position is unacceptable, according to John Boehner, the Republican leader of the House of Representatives, while the two sides had previously agreed to a ceiling of one trillion dollars in additional tax revenue to reduce debt further Atlantic. Saturday evening, the President was therefore convened in emergency to four White House officials Republicans and Democrats in Congress for a new emergency meeting. But no more successful in negotiations, after 50 minutes of discussion.
Do not scare investors
The inability of both sides to agree on tax revenues and budget cuts necessary leads the U.S. on a slippery slope.Besides the risk of degradation by the rating agencies of their sovereign rating, the status quo would cause panic on world financial markets, barely recovered from the fears of the risk of contagion from the crisis of the Greek debt to other countries Europe.
U.S. officials are well aware, those who now wish to reach an agreement by Sunday evening before the opening of Asian markets. Rebuked by President Barack Obama, Congress pledged Saturday to present a plan to reduce the deficit within 48 hours to push the risk of lowering the country's sovereign rating. The fact is that beyond the tax revenues, the issue of budget cuts expected to be a problem. Democratic side, the president believes that the 1.6 trillion cuts represent an offer "extraordinarily fair".Republican side, these efforts remain insufficient to John Boehner, who wishes to bring to 3 trillion budget savings over 10 years.
Critical deadlines
Given the failure of talks between the president and elected officials of both Houses, the compromise could eventually go through further discussion within Congress. This Sunday, "the leaders of the Senate and House have agreed to return to Congress to speak to their groups and discuss the way forward. The conversations will continue all day "has said Jay Carney, spokesman for the president. For now, no new summit meeting is scheduled with Barack Obama, but on the other hand John Boehner also called for an early agreement.If a common ground on removing the ceiling on debt seems likely, no party could only be satisfied with this short term solution, and discussions on the reduction of public spending should be more difficult. One observation that seems to share Timothy Geithner.
On Sunday, U.S. Treasury Secretary said that there would probably agree to a two stages, first raising the debt ceiling and so that an agreement on spending cuts and a second stage of higher taxes and reforms. Whatever the timing adopted, it was also described as "unthinkable" that the United States do not meet their debt obligations.And as Barack Obama, who does not want thorny issue of the debt rose to the surface during the election year ahead, Geithner wants to avert the threat of a default for at least 18 months, but less than 10 days of the deadline of August 2, the time is now very critical.
ALSO READ:
"A default formally excluded
"U.S. Debt: Obama an ultimatum
"Debt: Barack Obama fails to restore calm
The government is intensifying the fight against fraud. That was the message you want to pass the budget minister, Baroin on Wednesday by making public the figures for abuse detected in 2010. In total, the state services deplored the loss of 3.4 billion euros, all public finance fraud combined.
In detail, it is tax evasion which, with 2.4 billion euros detected, most of the losses in 2010 deplored. Fraud in Social Security is in turn a much smaller portion (about 15%), the order of 458 million euros. A figure which Labour Minister Xavier Bertrand had already communicated, at the beginning, before the members of the evaluation mission and control of Social Security.
Progress remains to be done
'Significant results' achieved through improved quality controls, s'estfélicité Baroin. The mobilization of officers of this struggle, better coordination of actors and especially being able to pass files between different services (Banks primary health insurance, employment center, the family allowance), allowed, according to the minister, to detect even more abuse personal loan for poor credit.
It was on this last point that Baroin wishes to focus the efforts of the administration. "It's obviously in the field of the crossing of files that we want to progress. [We are moving towards] a centralized payment incidents or signs of fraud, "he advised. The aim is that such fraudsters once reported to be more regularly monitored.
Labour Minister, Xavier Bertrand, had already begun to turn in April last tougher penalties for fraudsters who abuse the social security system. "You have to apply and increase the existing penalties," he had tried to stop the "theft of the French."
However, progress is at hand. Members of the evaluation mission and control of Social Security in outline in the report they just make it public. According to their estimates, social security fraud would actually alone 10-20000000000 euros, of which three-quarters come from black labor. A figure that is breathtaking, when compared to the deficit of social security in 2011, estimated by the government 21 billion euros.
War is everyday, but at the end of the year you are doing the accounts … For eight years, the winner is Airbus, both in terms of shipments of orders at the expense of its rival Boeing. And every two years at Paris Air Show, the manufacturer makes Toulouse a point to increase the ads. Behind these record sales of a European officiating … American John Leahy. Who was responsible for marketing a small American manufacturer, Piper Aircraft, before becoming sales manager of Airbus North America in 1985 and Airbus in 1994. Here, in this country that looked very carefully built the planes in Toulouse, as Leahy made his debut and had his first successes, as with Northwest, he has persuaded to buy ten A320s and take an option on 90 others.One way to make him test this device.
"Persistence pays," he said today as he presides over the destinies of commercial Airbus for over seventeen years. In his office in Blagnac, the excitement as we approach the show is palpable and the boss's schedule is constantly changing.
Whenever the negotiations that lay ahead endure short, its secretariat change his schedule because John Leahy taking and never give an answer to everything. Hence the rumor that the staff of Boeing starts each week by asking, "Where is Leahy today?" The character is but little known in France as it is attached to Toulouse, where he moved with his wife and children, carefully taking away from the Parisian establishment."I'm not the boss of Air France or Renault, so I do not need that." This also allowed him to cross safely multiple turbulence in the management of Airbus. While recognizing today have been in an awkward position in 2006, when the great Franco-Prussian War at Airbus. Its longevity is admired Richard Branson, the Virgin boss, that Leahy had convinced to be equipped with Airbus business cards design. "If there were so few portraits of me is that I do not spend any time. To make a presentation of my products, I can run the world, not for an interview. Same problem with the French language, he admits.I could never bring myself because my days are busy. "
"The indefatigable American", as it is called in Toulouse
It is not impunity commercial director of Airbus, especially in an area where, for historical choice, English is the working language. This does not prevent Leahy to have a real commitment to our country. "France is an extraordinary country, he said, smiling. No other country has as many talk shows parade where specialists of all kinds. And I know of no other country where you can stay three hours at the table to talk about politics and culture. But it may be a good thing. Watch a plane, it's a mix of technology and aesthetics.Just shop around for a A380 to be amazed, as if before a masterpiece. "
When, in 1994, Jean Pierson, the symbolic head of Airbus, Leahy proposed to moving to Toulouse, the problem arose from an international school for their children. "They had six, 10 and 12 years and did not speak French, recalls John. Since then, Airbus has remedied the problem by creating one of the best schools are, thus facilitating the arrival in Toulouse of executives around the world. "
Up at dawn, some exercises just to keep an online endangered by the many business meals which his position involves and direction Blagnac driving his Mercedes hybrid. In his office, his two secretaries teams take turns. It is at the heart of Airbus strategy, where they prepare all purchase contracts.It is here mounted power the European manufacturer, which has managed in three decades to become the world's leading manufacturer of civil aircraft, ahead of rival Boeing.
Prudence, caution still, still cautious. While the transfer market opens its doors for the championship of France Ligue 1, the motto is clear: to sell before buying. French clubs will indeed seek first to reduce their payrolls, after a deficit posted more than 130 million euros in 2009-2010."Given that wages represent about 60% of the expenditure of clubs, it is logical that they are the first adjustment variable to try to maintain a balanced budget," says Bastien Drut, an economist and author of book Economics of Professional Football (Editions La Découverte).
And it is confirmed: Olympique Marseille last Friday broke the contract of the largest salary in Ligue 1, Argentine Gabriel Heinze (4.5 million gross) and could also disposing of his compatriot Lucho Gonzalez, third largest French league's salary (4.3 million euros a year). The president of Olympique Lyonnais had figaro.fr revealed last May that the club Rhone probably sell two or three "big" salaries.Finally, Paris Saint-Germain asked to Ludovic Giuly, the highest paid player in Paris (3.2 million gross) to decrease by over 40% of his salary to keep his place in the workforce next year.
Down 15% to 20% of wages between 2009 and 2011
This trend began in 2009 mainly because of the impact of economic crisis. It continued in 2010 with the uncertainties related to income and television rights was confirmed in 2011 with the establishment from the 2013-2014 season of the famous financial fair play (measure requiring all European club do not spend money it does not) desired by the UEFA president, Michel Platini. "Over the past two seasons, we found a decrease in payroll clubs in Ligue 1 between 15% and 20%, says Philippe Diallo, Director General of the Union of professional football clubs (UCPF).And this trend is not ready to stop. "
It's the end of fifteen years of incessant flights of wages since the end of the Bosman ruling (decision of the Court of Justice issued Dec. 15, 1995 allowing every player to move freely within the European Union) who saw the payroll from about 154 million euros in 1995-1996 to 778 million euros in 2009-2010. "Basically, the average salary of Ligue 1 was multiplied by five in fifteen years," says Bastien Drut, an average annual increase of just over 12%. "
PSG / Qatar: two competing strategies
If this choice is logical to comply with new rules adopted by UEFA, but it could weaken the Ligue 1 against the best European clubs."From there, I doubt that we are seeing a real reduction in payroll in the major French clubs, says Vincent Chaudel, communications director Europe, Africa and Middle East at Kurt Salmon, a consulting firm. As the French and European teams can not do without talent, they never cease to raise wages. " And in this area, Paris Saint-Germain which could lead to the transfer market looks bleak. The Parisian club has been bought by 70% of Qataris.
But for now no information was given on behalf of the investor and its strategy.Will they be conservative or, conversely, will they want to hit big shots are talking about a budget of 50 million euros for the Paris club in the transfer market this summer – even "overpay" for players? "If they buy only French players, they will boost the economic machine of French football," said Vincent Chaudel. However, they may also want to attract celebrities to boost the resources of the PSG in derivatives, particularly in France and abroad left to blow the payroll. " Through Al-Jazeera Sports broadcast the Qatar League 1 with the following headline, PSG he hopes to continue to share in the world.And for that recruit international stars.
PSG: "Our payroll will be stable for 2011-2012"
A guideline that might conflict with the one the club has put in place since the arrival of Robin Leproux headed in 2009, namely French recruit players while controlling payroll. PSG, it ensures that the transfer window will be controlled from a financial point of view and that the arrivals of celebrities were utopian. "Our payroll will be unchanged from the 2010-2011 season to 45 million euros, less than half that of Lyon and Marseille, and our budget will be substantially the same as last year, 80 million euros. Qatar is not Abu Dhabi (owner of Manchester City) and the French league is not the English league, "says one club in Paris."But with the price of one Carlos Tevez (striker for English club Manchester City, whose market value would be around 50 million euros), we can mount a very good team in France," says the communications manager of a big French club.
ALSO READ:
"The French football should rethink its business model"
