First economic review pass Irish

15 April 2011 last updated at 13: 56 GMT support by the Government of the Republic of Ireland banks was one of the main reasons for the Bail-Out the Ireland's progress on the deficit reduction by the European authorities - approved a condition of last year the Bail-Out.

You have seen performance during the first three months of the Republic and said have that it has achieved its objectives.

Minister of Finance of the country, Michael Noonan, said a press conference that had been the bodies "very free".

Earlier, its credit rating was cut again on concern about the financial strength.

The credit rating agency of Moody's as the country that one of the two places on the scale marked status only a hack of "Junk".

Usually, such a move means that the Government to borrow more money to pay.

An Irish rescue package worth 85bn agreed euro (£ 70bn, $113bn) European authorities and the International Monetary Fund (IMF) - 17.5bn banking sector come from the country - if it could no longer cope with its debt, largely overwhelmed the result for his.

Continue reading the most important story Joe Lynam BBC News

Moody's timing are not really the Irish Government today. After two weeks in the cost of borrowing for Ireland please had, results in the today's downgrade Baa3 or above on the "junk" status, pushing 10-year bond back up.

The new coalition in Dublin had hoped, trumpet the IMF/ECB/European Commission report on the progress of the Irish economy always be down deficit. The IMF et al signed off on plans by Dublin to tweak the conditions of the original Bail-Out deal last December year.

But its growth forecasts for 2011 to Karg revised the international bodies also down 0.5% - making it harder to the deficit from your current 10% to its target of 3% by 2015 to cut.

Separately, the Republic in talks is to interest with its European partners, the 5.8% billion pay €67 by the IMF, the ECB and the European Commission on loan.

Tough Mr. Noonan said that certain changes, including the resolution of a cut in the minimum wage had given the authorities behind the Bail-Out, the EU, the IMF and the European Central Bank.

The Bail-Out came with strict conditions, including an interest rate that the newly elected Government said was too high, and promised, it reduces.

Mr. Noonan said "significant progress" on this issue on the last week of meeting in Hungary to have been achieved.

He said, he again next month would take the matter at a meeting of eurozone finance ministers.

The final review documents would be made public once final approval on May 15-16 had been Mr. Noonan said.

Moody's cut, which the Republic credit score on Friday to Baa3 - a level above junk-bond status - say it could be its budget deficit due to the weaker than expected economic growth cut fight.

It stands alone but among the three leading rating agencies. On Thursday Fitch upgraded ratings his Outlook, while standard & poor's are the same grade as Fitch Republic.

It has a target, the gap between government income and cut expenditure to 3% of gross domestic product by 2015.

The Republic 2010 deficit hit a European record time of 32% after it verkrüppelten from its banks saved.

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Us warned on lack of deficit plan

18 April 2011 last updated at 16: 42 GMT Republicans push on plans massive cut government expenditure of US warned has been that the its national debt by standard & poor's credit rating could be cut.

S & P is concerned, that Democrats and Republicans no plan to reduce the growing US deficit agree with can.

It has its Outlook from stable to negative, increasing the probability that the rate could be cut within the next two years downgraded.

The US Treasury replied that S & P had underestimated its ability to deal with the public debt.

"Since the United States have, relative to the 'AAA' [top rated] people like what we think huge budget deficits and rising debt of the Government and the path to the addressing this is clear not us, we have our Outlook on the long-term rating revised, stable to negative" the Agency said in a statement.

The surprise move sent to reduce us and European shares. The S & P 500 fell the most in a month, and US dollar fell against the euro and Swiss franc. Oil was also significantly lower.

In Europe the UK, German and French fell main indexes all at least 2%.

The US deficit fédéral currently amounts to $1. 4tn (£ 858bn) and is expected to reach $1. 5tn in the current financial year.

Budget battle

President Barack Obama proposed that could plunge the world into a new recession, when the ceiling for money that can hire the United States is not raised in the next few weeks, before the current debt of $14. 3tn.

Read the main story of Mr Obama continues and the Republicans in a battle over the extent of expenditure locked cuts are.

The House of representatives Republicans controlled budget, which aims, 2012 has a $6. 2tn expenditure by the Government over the next decade cut passed.

But the Bill is expected not to make the Democratic-led Senate.

The current battle is now about issues by 1 October. Last week Congress passed a budget bill, the $38 billion in public spending on the rest of the current financial year until would cut to 30 September.

Last week, Mr Obama laid out his plan to reduce the budget deficit to $4tn 12 years.

'Political judgment'

Austan Goolsbee, Chief Economist of the President of economic recovery Advisory Board, U.S. dismissed the change in Outlook in the production of the rounds on cable networks.

Ajay Rajadhyaksha, head of fixed income at Barclays Capital in New York reviewed the U.S. deficit dilemma

"What does the S & P is a political decision, and it is one, we do not agree with", he told CNBC.

The S & P Outlook cut comes after the International Monetary Fund (IMF) last week before warned that the size of instability of financial markets created the U.S. deficit.

In a statement, S & P was positive about the General State of the US economy, but said: "we believe that it material risk that no agreement on the response of medium- and long-term fiscal challenges could reach U.S. policy makers by 2013."

"If an is not agreement and meaningful implementation is not started until then would this we believe that the U.S. tax profile useful weaker than the peer"AAA"sovereigns play."

'Wake-up call'

The United States have the top AAA rating for the long-term bonds.

Because the United States are the world's largest economy and its debt is the backbone of the global financial system, concern about the U.S. created ability, his debt to pay huge waves in the world economy.

"It is a wake-up call that we need to do something," says Axel Merk, currency Fund Manager in California. S & P is "must be absolutely right that this treated that something serious."

But the US Treasury responds strongly to the change in Outlook.

"We believe that S & P's negative Outlook the ability of America's leaders, together, to the difficult fiscal challenges of the nation underestimated address," he said.

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Japan downgrades Economic Outlook

13 April 2011, last updated at 07:19 am the earthquake and tsunami caused widespread damage to Japan's North East coast of the Japanese Government has its assessment of the economy in the wake of the devastation caused by earthquake and tsunami of last month downgraded.

It said key sectors of the economy, including industrial production and exports would suffer.

The decision is that the Government of the evaluation has downgraded the first time in six months.

Monetary Fund (IMF) raised its forecast for Japanese growth cut the international on Monday.

"The economy is weakness recently due to the impact of the earthquake great East Japan shows", the Japanese Government said in your monthly economic report.

"It remains in a grave condition".

Down

The disaster affected many companies, the operations in the North East of Japan, had factories and supply chain blocks to destroy.

Current deficiency caused by the crisis in the nuclear power plant should Fukushima Daiichi in the summer.

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the condition of the economy is not more flat or in a stationary position, but the direction is down "

end quote Shigeru Sugihara Cabinet Office the power loss resulted in roles blackouts, production on some of the largest companies in the country."

The Government has warned, that this deficiency can say the negative impact exports items as manufacturers battle to their production lines back to full capacity reject.

Japan's economy was already before the earthquake and the tsunami hit on 11 March come from the global financial crisis were fighting.

Analysts say the twin natural disasters further back, that set recovery process.

"The condition of the economy is not more flat or in a stationary position, but the direction is down," said Shigeru Sugihara, Director of macro-economic analysts in the Cabinet Office.

Japan is estimated that reconstruction will cost up to 25 trillion yen ($295bn).

Nuclear crisis

The true human costs of the disaster is one month on is still unclear. The official death toll is 13,333, with more than 15,000 people still untreated for. More than 150,000 people have been made homeless.

In addition to the impact is a national mood of self-restraint. In sympathy with the victims, people in other parts of Japan have back on consumption was cut.

One month after the quake, engineers trying still to stop Fukushima reactors from overheating

Prime Minister Naoto Kan urged a return to normality, not for those living in areas affected.

"Let's life normally without in excessive self control." A new future, to build "he said in a televised speech late on Tuesday."

Now workers are crucial in the crippled nuclear power plant Fukushima Daiichi knocked restore tsunami cooling systems through the fight, and one avert large scale release of radiation.

Accommodation, engineers siphoned off 250 tons of highly radioactive run-off water in place storage facilities.

Raised on Tuesday, Japan's nuclear and industrial Agency, seven of the the crisis in the work at the highest level.

The decision reflects the entire publication of radiation on the plant, which is in progress, rather than a sudden deterioration.

Level seven previously only on the disaster at Chernobyl in the Ukraine, where 10 times more radiation emitted was applied in 1986.

Mr Kan said that "step by step the reactors in Fukushima Prefecture, Japan move Daiichi power station in the direction of stability".

There were no fatalities through the holes in Fukushima, and risks to human health are as low enough.

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US inflation is 2.7% in March

15 April 2011 last updated at 15:06 am rising gasoline prices are rising US Food and gas prices drive inflation in which increased the annual rate of US inflation of 2.1% in February to 2.7% in March.

From the consumer price pay the US Labor Department showed the gain between February and March at 0.5%.

Gasoline prices and food together was almost three quarters of annual increment, leave in addition to the rise was only 1.2%.

As in the rest of the world, fuel and food prices in the United States have risen sharply.

Gasoline prices were for the ninth consecutive month, by 5.6% reflects the steady increase in oil prices in recent months.

Food prices rose in February by 0.8%, the largest monthly increase since July 2008.

Food and energy prices costs the increase was only 1.2%.

Wages and salaries in the United States grow hardly that limits the ability of retailers to increase prices.

Rising oil and commodity prices pushing up prices to inflation all over the world.

Also on Friday published figures showed that consumer prices in China rose by 5.6% in March and by 2.7% in the euro area. The Indian Government said that the inflation rate reached 8.9% in February.

A separate Government report on Friday was hourly earnings for all employees, adjusted for inflation, in real terms by 1% in the last year.

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G20 agrees opportunities to the risk measure

15 April 2011 last updated at 22: 08 GMT French Finance Minister Christine Lagarde (R) chaired the meeting of Finance Ministers and central bankers from the G20 Summit have a number of "indicative guidelines" agreed to measure the potential risks for the global economy by the national economic policies.

All members of the G20 Summit will be monitored under the new system.

In addition to members that a deeper, second stage analysis of imbalances are subject to for more than 5% of the overall economic performance of G20 account.

These include the United States, China, Japan, Germany and France.

This is to "reflect the greater potential for spill over effects of larger economies", the group said.

The G20 not formally the countries, where this up would apply, but French Finance Minister Christine Lagarde said that France one of the seven total higher control would face.

The Group was meeting in Washington in front of the spring meetings of the World Bank and the International Monetary Fund (IMF).

The g-20 accounts for 85% of worldwide and is now the main forum for the trial of the world financial system reform.

Imbalances

Many economists believe that global imbalances contributed to the recent financial crisis.

Continue reading the most important story

the guidelines are a bit like a network, which actually holds the countries that violate or do not respect the guidelines "

end quote French Finance Minister Christine Lagarde emerging market countries reinvested their surpluses in Western markets, that banks", excessive risks, so the argument goes.

Finance Ministers agree that they must find a solution for this type of imbalance.

But countries on how quickly they need to act, do not agree to.

China acknowledges that it must open its economy and allow its currency, the Yuan, to get more, but it you want at his own pace.

The United States, on the other hand, that would like to see happen much faster.

Monitoring methods

After its last meeting in February, the group reached an agreement on the indicators to recognize the economic imbalances.

The Washington Business measurement applies to these indicators, public debts and deficits, and private debt and savings rates.

In its latest Communique said the G20, their monitoring four approaches would use:

Estimate what should look like a country imbalances, such as the use of economic models specifically for the Countrylooking in a land imbalances in terms of their national historical Trendscomparing a country imbalances with groups of similar Countriescomparing of a country imbalances with the full G20.

The last three approaches used statistics from 1990 to 2004, "such as this time, which is the large building in external imbalances, advance", the Communique said.

Watch: European policy makers becoming complacent over economic recovery

"Incoming identified these countries by at least two of the four approaches such as with persistently large imbalances to determine in a second step, the nature and root is evaluated to identify causes for their disparities and barriers to adaptation," the group said.

The second step of the review would be carried out independently by the IMF.

"The guidelines a bit like a network run actually contains which of the countries which violate or do not respect the guidelines," said Mrs Lagarde, which currently holds the Presidency of the G20 Summit chaired of the meeting such as France.

"And the network is a little close for the countries that are considered systemically important, as they represent more than 5% of GDP [gross domestic product] of the G20."

However, the Group has no mention of any "Name and shame" list, which would identify the members in the most risky positions.

'No complacency'

Although the world economy on the road to recovery seems to be the meeting at a time was when many threats to growth remain.

The challenges are unrest in the Middle East, high oil prices, sustained inflation in China and debt problems in Europe.

The Director of the IMF, Dominique Strauss-Kahn, told the BBC that some policymakers thought "the crisis behind us" and it was "the wrong attitude".

In Europe, he said, was no room for complacency about high debt.

"Much more to be done by the Europeans to resolve the debt problem []," he said.

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World Bank chief warns against the crisis

17 April 2011 last updated at 08: 54 GMT Mr Zoellick said the world should not forget that the lesson of last financial CrisisThe has warned President of the World Bank, that the world "a strike away from a full blown crisis".

Robert Zoellick cited as the greatest threat to poor countries, the risk "a generation" rising food prices.

He was speaking in Washington at the end of the spring meetings of the World Bank and International Monetary Fund.

In the meantime G20 pledged finance chiefs, who met in Washington, financial support for new Governments in the Middle East and North Africa to help.

Mr Zoellick said that this support was vital.

"The crisis in the Middle East and North Africa underlines how we must the conclusions of our latest world development report into practice." The report highlighted the importance of the safety of citizens, justice and jobs, "he said."

He demanded the World Bank also quickly Act, support to reforms in the region.

"Waiting for the situation stabilize will mean lost opportunities." "Revolutionary moments no winning hand is the status quo."

The Washington meeting, turbulence in the Middle East, volatile oil prices and high unemployment also came to the language.

IMF chief Dominique Strauss-Kahn raised special concerns about high unemployment among young people.

"It is probably too much to say that there is a jobless recovery, but it certainly is a restore with not enough jobs," he said.

He said "in particular because of the youth unemployment... the danger is now, that this will be transformed in a life sentence, and there is the possibility of a lost generation".

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Food prices threaten millions

14 April 2011 last updated is at 16: 32 GMT which ignore World Bank President InflationThe that World Bank warned that rising food prices, driven by rising fuel costs, pushing millions of people in extreme poverty not to eat Guide.

World of food prices are driven by problems in the Middle East and North Africa, 36% above the level of the previous year, and remain volatile, the Bank said.

Since June last year has pushed the 44 million people in poverty.

A further 10% would boost more below the extreme 10 m $1.25 (76 p) move to the day, the Bank said.

And before that, it warned that a hike could lead 30% costs in the price of Staples more arms to 34 million.

"Protect the poor"

The World Bank estimates there are about 1.2 billion people of less than $1.25 a day life.

"More poor people suffer and arms could be due to the high and volatile food, more people," said World Bank President Robert Zoellick.

"We have to eat first place and to protect the poor and weak, spend most of their money on food."

Mr Zoellick said later in the week before the IMF and World Bank spring meetings.

The meetings are the Finance Ministers and central bankers, including Finance Minister George Osborne and Governor of the Bank of England, Mervyn King will take part.

Nutrition

The World Bank says that basic commodity prices close 2008 all remain very fast at their peak with the prices of wheat, corn and soy beans.

The only exception is rice, which is slightly declined in price last year.

The Bank proposes a series of measures to reduce the impact of high food prices on the poor.

These foods include promoting-producing countries to facilitate export controls, and production of biofuels production redirect, when you exceed certain limits food prices...

Other recommendations include for social assistance and food programs to the poorest, better to make more nutritious weather forecast, more investment in agriculture, the adoption of new technologies - such as rice fortification, and efforts to combat climate change.

He also said financial measures are necessary, are subject to poor countries to prevent volatility of food.

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Mexican wave bye-bye?

18 April 2011 last updated at 23: 01 GMT by Julian Miglierini BBC News, Mexico City Acapulco, Mexico's prime tourist destination, takes a war much affected by drug-related violence, it is said, comes at a price – not only in human life, but also on the health of a country's economy.

Mexico, a bloody war against drug cartels, seems untouched by the conflict - but do business in that country is not easy for anyone in times of rising crime.

Mexico's economy is firmly - growing next 5.5% in the operations and optimistic expectations throughout this year, a healthy recovery from the effect on the neighbouring economy had recession in the United States.

Mexican Finance Minister Ernesto Cordero recently said there was "no evidence" the BBC suggest investors were from the conflict by the presence of organized crime groups by using the country as a route to transport dissolved drugs in the United States will be postponed.

As for tourism, one of the largest earners of Mexico's foreign currency, "we have very high rates of occupancy, it seems not affected," said Mr. Cordero, added, that the priorities for the violence were not usually tourists visited.

To say that on the Acapulco hotel.

Call a hit

The resort on the Pacific coast, one of the most important tourist destinations of the country for domestic and foreign tourists, has become a battlefield in the fight against organised crime.

Continue reading the most important story

everyone has problems, restaurants, bars, even people sell items on the beach "

end quote José Luis Espejel Copacabana hotel almost 700 people died in drug-related events since 2006 in the city, and shooting between rival drug cartels and with the security forces are common."

Foreign tourists have not targeted and district has hotel in particular through the violence - spared been but headlines around the world "Acapulco's descent into violence" reputation have badly tarnished the city.

Sitting under a sun lounger by the pool in the Hotel Copacabana, chief Concierge, José Luis Espejel admits that tourism is declining.

He talks about the "spring breakers", the U.S. University students, the from late February to early April South of the border for warm temperatures and beach parties herd.

Breakers was following warnings by some in the United States against travel to parts of Mexico, Acapulco from the radar for early in the year 2011.

Mr Espejel says, that during the last year about 2,600 students filled the rooms of the hotel, appeared in this year only 60. The official figures from the Acapulco authorities say the number spring break, which this year fell by up to 93% compared to 2010 came.

She had a huge impact on the town living.

"There are no jobs," he says.

"Low occupancy, no revenues, obviously no gains." "And these are not only hotels - everyone has problems, restaurants, bars, even people selling items on the beach."

Positive

Information according to the authorities visited some 22 million tourists Mexico in 2010, by 4.4% compared with 2009.

The Acapulco divers are one of the most important tourist attractions of the city

Critics say that the increase is nothing to celebrate - entry since the number of tourists was in 2009, as Mexico reported in the swine flu was the first country were had.

Other sectors of the economy are healthier indicators show.

The announcement, earlier this year, the US retail giant Wal-Mart, that it more than 1 billion $ invest would (£ 615 m) on the Mexican market was still further evidence of the Government, the foreign investors in the were put off by rising crime praised.

Antonio Ocaranza, spokesman for Wal-Mart Mexico, says that while she noticed some changes in the people's Party had purchase pattern - further grown, for example, in some areas of the country in which they avoided due to security concerns shopping after dark - their sales.

"We see that the current circumstances affecting some cities in the country, I, that this is a country, that think about what happens now, has tremendous growing opportunities."

In fact, Mexico rank high was the leading country in Latin America in a World Bank report on the ease of doing business - amount of hurdles a company credit or access to other criteria set - it.

Unemployment in Mexico is the lowest in all the Americas and one of the lowest between Member States of the Organization of cooperation and development (OECD).

' Extortion fee'

But it is argued that Mexico's economy good signs indicating the violence there could be prevented or more to grow.

Recently, a Chief Economist of BBVA, a number put on Spanish bank - one of the largest investors in Mexico.

"There would be no violence, the Mexican economy 1% on the prices of recent years would have grown", said Jorge Sicilia from BBVA analyst.

This is considered by many not only investment in additional security for companies, but attributed to the fact their business kidnapping and extortion turns have to drug cartels in sophisticated organized crime groups, spreading.

A survey of the American Chamber of Commerce in Mexico of more than 500 business, which leaders revealed that 67% felt less secure me do business in Mexico compared to the previous year.

The CANACINTRA national manufacturing industry Chamber recently estimated that in the year 2010 in the areas of violence had closed up to 10,000 small and medium-sized companies most concerned by the drugs.

Many of them had suffered extortion or threats of criminals, which called for the payment of a "fee" for their safety.

This is the case for a businesswoman in Central Mexico, preferred to remain anonymous.

She told the BBC that had six months ago, she and her husband, owners of a successful medium-sized enterprises, was approached by a group of armed men who identified themselves as members of la Familia drug gang.

She asked her, pay about $4000 (£ 2,465) each month - and to kill her and her family, if she are not threatened.

Fearing retribution from the criminal, when she alerted the authorities, they decided to pay.

"they appeared to collect the fee each month," visibly nervous says they, while walking to a park in Mexico City.

These episodes make many in Mexico fear like the drug war rages, other parts of the country could start lives the turmoil of that already faces Acapulco.

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Young people on the

18 April 2011 most recently updated on the 23: 01 GMT by Nastaran Tavakkoli far and James Melik reporter, BBC World Service Chinese entrepreneurs Xiaoche Miao own dessert shop open, when she was only 21 young people are to create jobs for themselves that would otherwise be unavailable be to you during the economic downturn.

One of the most important issues in the recent unrest in the Middle East and North Africa, was lack of prospects for young people where a quarter of the youth of the region are unemployed.

In addition, young people around the world by the global economic crisis were worst affected.

2010 Appeared the ILO figures estimate that 13% of those under 24 so far were the highest number of work - around the world.

Inspirations

The Global Entrepreneurship Monitor estimates that 120 million people around the world in the age between 18 and 34, in the round from their own businesses.

And another 300 million already running their own ventures.

Jared was Toole, 25-year-old founder of the Under30CEO - a network of young entrepreneurs in the United States - witnessed how young Americans corporate jobs to view and the traditional career path during the economic downturn.

Continue reading the most important story

there to marry pressure on young women and have children, but they are also keen on success at work and financial independence "

young Arab women entrepreneurs end quote Samia El Solh" many young people, I work with, have seen that even the corporate world insecure istund some of the largest banks just fall apart, "he says."

", The view has on one runs her own business seem less risky and more attractive made."

In addition, they have inspired by the successes of other young entrepreneurs, such as such as the founders of Google and Facebook, and there is an increasing desire for young people to follow their passions.

"The increased interest in entrepreneurship is also a lifestyle issue," says Mr was Toole.

"they want to work hard, do they love what." "Away from the regular nine to five is a common wish that the we to listen."

Emancipation

Can this view is shared in other parts of the world and want to feel fulfilled special relevance to young women in their work and family life.

"There is pressure on young women to marry and have children," says Lebanese businessman, who runs the young Arab women entrepreneurs network and the push magazine for young women in Middle Eastern business is Samia El Solh.

"But they are also keen on success at work and financial independence," she says.

Since that can be difficult to reconcile the long inflexible hours within the regular structure of the job, is only an incentive for such women.

"The new generation is more skilled, they are aware of their options and they want more from life" has it.

"There are also women who are very creative, and therefore they are always feel that they want much to give and they produce something entrepreneurs."

Identity

Chinese youth is according to Kevin Lee, the youth-focused their traditional notions of success rewrite consulting China Youthology.

Despite China's strong economic performance difficulties have half of the new graduates job search within the first year, although this is not the biggest driver for their interest in entrepreneurship.

While related to tech startups with ambitions graduates establish the worldwide success of the country's many technology, also an increase in there of the smaller structures, such cafes, craft enterprises and small retail businesses.

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my dream is to show young people that you can values and do something socially beneficial - and make money "

end quote Linnea Passaler of Italian Entreprenuer" their motivations really come from their ideas of, what they want their lives be. It has a reform of their definition of success, "Mr Lee says."

"Chinese people as defined money or status, but we see in the post - 80's generations, which is this with by good relations with family and friends, and time for your own interests are historical, success."

China's youth are also place more emphasis on the study of their identities and regular jobs allow them don't have the time to do so.

Now these smaller companies as a vehicle are used where.

"they feel that their business is an extension of their personal space and their personal identity," Mr LEE said.

He believes, that this impact search also China's economy inside it is turning slowly from the factory of the world to his craft room.

"These smaller stores build infrastructure for more cottage industries, go back to craftsmanship and a different philosophy of what products can be."

Passion

While many young entrepreneurs by the view on doing what they love are motivated to use some of their companies as vehicles for social progress.

Italian oral surgeon and entrepreneur Linnea Passaler use their site to allow patzienti.org to patients to medical services.

While she is passionate about medicine and technology, also hoping to Italy's youth inspired.

"We are the social crisis in Italy, a moment", she says. "I want to show young Italians, that it is possible to have an idea and make it happen that you can do it in Italy without connections."

With Ms Passaler says more than a quarter of the frame-24 s unemployed in Italy, that young people feel the status quo works against them and that something is done a fight can be.

"This year 150th anniversary of Italy's reunification marked," continues Ms Passaler.

"It is a very important moment for our national values." My dream is to show young people that they can values and do something socially beneficial - and make money.

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Interlocking BRICS

14 April 2011, last updated at 07: 22 GMT by Saira Syed business reporter, BBC News, correspondent in China, write a review Singapore BBC Russia, India and Brazil the condition of their EconomiesChina plays host on Thursday on the third Summit of the BRIC countries, as it and other emerging economies increasingly global growth drive.

The leaders of Brazil, Russia, India and China meeting on Hainan Iceland, together with potential new Member, South Africa.

The term BRIC 2001 economist Jim O'Neill was coined by Goldman Sachs to group the four fast-growing economies.

In the last few months has their economic power from their growing political influence associated with was.

The four are part of the G20 Summit, a grouping of the world's major economies.

Had a rest quickly by the global financial crisis 2008, prove they were not as vulnerable to a downturn in the United States and Europe the BRIC countries.

With the developed world not looking to businesses to contact these countries to each other, and smaller emerging markets.

Brazil's commodities has traditionally exported minerals in the United States and Europe, but Chinese demand is the equation for Brazil's agriculture change.

The soy industry has shown particularly rapid growth to be meet the demand of the Chinese population.

This week approved start some Brazilian pork producers to export to the country for the first time China.

"You can see the shift instead of the reorientation of Brazilian agriculture towards China,", said Benjamin Selwyn of the Department of international relations and development studies at the University of Sussex.

China is also hungry for Brazil's other commodities, such as such as iron ore for the production of steel used in their great building boom.

Last year China the United States was Brazil's largest trading partner with more than $56bn in the trade.

In addition, were Brazil has also a market in China for some of his were found.

This week Brazilian President Dilma Rouseff a business in China signed for Embraer, the third largest manufacturer of commercial aircraft of the world travel market to sell aircraft redeem China Airlines, on the Mainland of rapidly expanding air.

Oil in Siberia has helped to make Russia of the world's largest manufacturers of raw materials

While China may be the world's largest consumers, Russia is the world's largest manufacturer of many raw materials.

Russia has always been - and is - a large natural resource exporter. However, where there to exports has changed dramatically in the last 10 years.

Trade with Asia increased at the expense of the business with the United States and former Soviet Union countries.

Developing Asia's economic growth and the push within Russia trade relations outside its traditional partners in Europe, have now China of Russia's largest trading partner, followed by Germany made.

"China is Russia's economic future," said Roland Nash, Verno investment research in Moscow.

"Both require each other to economic growth." "China sets the price for many of the world's natural resources through demand and Russia supply."

India is a world leader as a supplier of services, virtually inventing the outsourcing industry.

Unlike Brazil and Russia, who built their economies for the raw materials exports, India has developed its people.

Together with services, the medical care industry has taken huge strides.

But it has no mass producers, such as the other BRIC countries, and therefore much of his were imported from China.

This means that although China is now biggest trading partner of India, India a large trade deficit with the country.

"There is an asymmetry in their relationship," said Taimur Baig, of Deutsche Bank.

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China has been very pragmatic in far-reaching out down the line, to Africa and Latin America. "

End quote Taimur Baig Deutsche Bank, Singapore / China invented to itself and is now a mass manufacturer of high-tech products, including semiconductors and solar panels."

It is also a manufacturer of low-cost, high-value industries such as clothing and textiles.

"Its about maintaining competitiveness in the global economy," said Damian Tobin, of the school of Oriental and African Studies at the University of London.

"Low-cost production is driven by the labour component, intensively, begins to rise and then a lot of companies for the next cheapest alternatives will look like Viet Nam," he added.

Maintain the growth in the manufacturing sector, China has enabled more high-tech products increasingly in the direction.

Last year, China has successfully won orders for high speed rail around the world, after it has been a world leader in the industry and now is home to the world's fastest train.

Just in this week, Brazil said Chinese companies to bid for a planned high-speed railway line would allow.

The four BRIC States are in their hunger for raw material feed their rapid growth together.

China is the leader in the search for resources around the globe but has was followed by Brazil, Russia and India

"China very pragmatic in down the line, to Africa and Latin America, deliveries of raw materials and at the same time the creation of markets for its own exports, secure to reach," said Taimur Baig, Chief Economist at Deutsche Bank in Singapore.

But it all wrong.

Brazil and India flooding concerns about China have their markets with cheap goods, sparking a debate on the value of the Yuan said.

Most analysts agree that these provide an acronym four countries does not mean that they will act as one on the global stage.

"I would not expect the Brazilians or the Chinese to say BRIC means a new configuration of the world." "It is a long process see what gains can be made from cooperation with the G20 and other countries", said Mr Selwyn.

Although the BRIC countries dependent on developed economies are in decline, they have to work on an international stage with the major industrialized nations.

Read more >>

Malay Algarve

Last updated 14 April 2011 to 23:47 am by Paul Henley BBC News, Albufeira, Portugal the Algarve does well from tourism - but poverty spreads elsewhere in Portugal Antonio speaks four languages fluently and used to as a Baker and pizza chef in the United States work.

He is in an early morning queue in the resort of Albufeira in the Algarve coast trying now for Portuguese State to register help.

He is fast losing hope to work again.

He says "How I social security people say, I'm looking for any kind of work, as long as it is legal,".

"The situation is really bad here." "I see so many unemployed people."

It is estimated that about 50% of the people he sees have no jobs.

"And there is no real work - everything else such as cleaning a House for a day." "But that was it - only in the short term".

Struggles for funds

Asked what he thinks when he sees wealthy tourists enjoy the beaches and restaurants just a few blocks away, Antonio laughs and says, he thinks, they are happy. Proof that things must better be elsewhere in Europe.

The Portuguese used are worse than their EU citizens.

But most think she had left behind the levels of poverty that make unwelcome return.

Antonio is one of the many currently on job search

The country was officially declared bankruptcy and announced an international Bail-Out of its economy.

The Albufeira branch of the Santa Casa da Misericordia is charitable organization almost completely depending on private donations to carry out their work, looking after the least lucky members of the local community.

It runs residential care for people with learning disabilities, abandoned children, people with physical disabilities and the elderly.

His soup kitchen and daily food deliveries have been never more.

And increasingly fights it with money from donors who are affected by the recession.

Baking school and Cafe run by a staff with special closure have already faced.

The most basic services soon become the victims of the financial crisis, organizers say.

Poverty trap

Paula Faria runs accounts of the charitable organization. "Whatever our income, not whats there now enough for half of the debt,", she says.

The priority is now to pay wages and buy food. It is not enough to meet expenses, repair or replace a car, she adds.

It owes the butcher 60,000 euro ($86,500; £ 53,000) and see how she longer can get away with loans for much.

Even those regular employment in the region have can fall into the poverty trap.

Daisy Sampson, journalist for the Algarve resident, who lives in Carvoeiro, has observed the changes since the recession hit.

"If you come to a restaurant or a bar as a tourist you see that the people you are smart."They speak several languages and you will be smiling and happy, because they make some money, she says.

But visit not living in the places, the tourists. It lives in the Interior with their extended families, where it is cheaper, it adds.

Often, they need to support children, mothers and fathers as the primary. And it has become more difficult lives for these primary workers.

Mean tax increases they must work harder to feed her family, she says.

"Someone to five euros an hour is almost two euros bread for a loaf much." "Wages have relied never high here and people on the visitors fully."

Foreigners in the Sun on the beach at Albufeira are largely oblivious to their hosts economic problems. Many have come here to try, forget their own.

"It definitely feel it is a crisis," say one Italian pairs.

A Welsh family mentioned that something about problems had said their tour guides when they boarded the bus at the airport.

"But we can see no changes," they say.

"I'm sure they have a recession, but aren't we all?"

Read more >>

What is a rating agency?

A high score from a credit rating agency means cheaper borrowing - a low mark carries a heavy price AAA, B3, CA, CCC... they look like some kind of hyper-active school report.

They are, indeed, a marking system, and one that is designed to inform interested parties.

The letter of below are given to large-scale borrowers, whether companies or governments, and tell the buyers of this debt how likely they are to be able to get it back.

The score card of so affects the amount that should be charged by way of return on that borrowing.

These letters have been all over the coverage of the financial impact of the crisis besetting the heterogeneous.

A change to the score means a change to the amount a borrower must pay its debt-holders, something that can make it more expensive to borrow as investors demand a higher rate of return for taking on more risky debt.

But while the borrowers in the news - the governments of Greece, Ireland, Portugal, and now even the mighty US - are household names, the ones that have such to impact on their fortunes are not.

Continue reading the main story private-sector firms that assigns credit ratings for issuers of debtA credit rating takes into account the debt issuer's ability to pay back its loan that in turn affects the interest rate applied to the security (eg a bond) being issuedA credit downgrade can make it more expensive for a government to borrow moneyThey are credit-rating agencies, which exist to assess the credit worthiness of bond issuers - companies or, as in this case, countries who borrow money by issuing IOUs known as bonds.

But who are they? We need them and how do they work out whether to give the top-of-the-class AAA or a lower grade, such as CCC, which - sticking with the schools analogy - means the issuer is probably planning on bunking off?

Poor and Moody

Standard & poor's (S & P), as the oldest, comes first. It was begun in 1860 by Henry poor, who wrote a history of the finances of railroads and canals in the United States as a guide for investors.

The 'Standard' part came into being in 1906, when the standard Statistics Bureau which set up to examine finances of non-railroad companies.

The two businesses joined forces in the 1940s.

Moody's was started in 1909 by John Moody, who published an analysis of the tangled and uncertain world of railway finances, grading the value of its stocks and bonds.

These are now mighty concerns - Moody's operating income what $688 m in 2010 and standard & poor's made $762 m.

They each have 40% apiece of the business of rating of major companies and countries.

Fitch, with another eponymous founder, John Fitch, which set up in 1913 and is a smaller version of the other two.

There are hosts of other ratings agencies, whose names rarely appear break-even within the darker corners of the financial pages - so why are these three businesses the ones everyone watches?

Track record

Read part of the answer with the Securities and Exchange Commission (SEC), the US financial watchdog.

In 1975, it acknowledged these three as Nationally recognized statistical rating organizations (NRSRO).

"Continue reading the main story

the reasons for ratings adjustments vary, and may be broadly related to overall shifts in the economy or business environment - or more narrowly focused on circumstances affecting a specific industry, entity, or individual debt issue"

end quote standard & poor of an endorsement from an NRSRO makes life quicker and easier for countries and financial institutions wishing to issue bonds - it basically tells investors a firm has a track record and how likely it is to be able to pay back the money.

Further impetus for NRSROs comes from the fact that certain regulated investment funds are required by the SEC to hold only those bonds that have a very high rating from accredited agencies.

An insurance company's strength is so judged by the ratings applied to the investment reserves it holds.

A downgrade of at issuers' rating pushes down the value of a bond and raises its interest rate.

It can mean regulated funds must now sell these bonds.

But this can cause a vicious cycle.

A big sell-off adds in market forces - more best-sellers than buyers – reducing the price further. That means a yet higher interest rate must be paid - and that puts an even bigger strain on the borrower.

Although the SEC has 10 NRSROs on its approved list, including a Canadian agency and two Japanese ones, the big three - standard & poor's, Moody's and Fitch - remain the industry standard-bearers.

This is partly because they make their ratings available freely to investors – making their money from charging the organisations who want their bonds rated.

Heavy criticism

So much for their size. What of their actual methods?

Standard & poor of said it based its judgments on a range of financial and business attributes that might influence the repayment, some of which may depend on the issuer of the bond (ie the borrower).

List in a statement, S & P gave a long of indicators it may use, including "economic, regulatory and geopolitical influences, management and corporate governance attributes, and competitive position".

That seems to cover everything. But since the credit crisis that started in 2007, these agencies have come in for heavy criticism - and even hostility.

Continue reading the main story rating agencies use different systems involving a long list of lettersA top mark is AAA or AAaDown to BBB or Baa3 is of so safeBB or BA1 down to C is speculative - or "junk" other less sequential numbers are applied to the worst kind of bondAfter all, stacks of mortgage-backed securities - the investments that were backed by mortgages that were either never going to be paid back or were even fraudulent - were given the very best grade by the three supposed experts in rating the likelihood of the money being paid back.

Similar dramatic swings have been taking place in the ratings applied to government - backed - rather than private property-supported debt. One day a country's bond gradient is a safe top rating and the next given a mark that suggests investors' money is not safe.

Many observers believe that if the rating on the UK's government bonds - or gilts - what downgraded by just one notch from AAA to AA it would put up the cost of official borrowing by around half of one per cent.

That would mean a big rise in the annual interest bill which has to be met by taxpayers.

When asked why it changes ratings, S & P responded: "the reasons for ratings adjustments vary, and may be broadly related to overall shifts in the economy or business environment - or more narrowly focused on circumstances affecting a specific industry, entity, or individual debt issue."

It indeed appears a dark art - but one whose influence has a more measurable effect.

Read more >>

Entrepreneurs to create new jobs 40 %

19 April 2011 last updated at 7:37 PM David Cameron is look, to entrepreneurs who help rebuild Britain's economic growth, only 40% of new jobs - a much smaller number of companies than expected create 1% of the start-up companies had - a World Economic Forum (WEF) study found has.

WEF said that Governments should examine them on the search for growth through entrepreneurship successfully made.

It said that they should do this instead "replicate Silicon Valley".

Would-be entrepreneurs last month Prime Minister David Cameron said "now is the time", to start their business.

Mr Cameron has a schema, called "Start Up Britain", in the value of around £ 1,500 areas as training and Internet advertising company people set it to support.

The growth engine seeks the coalition Government to the private sector balance of cut in public sector jobs provide.

Other Governments, see also start up companies as a key to the economic expansion.

Continue reading the main plot of

in the dark moments, I never thought that we go. "Not even a second"

end quote Sir Martin Sorrell WPP the WEF Entrepreneurship_Report, in collaboration with Stanford University and global enterprise, said: "To avoid the collapse of the global financial and economic systems, Governments around the world are now concentrated on a basis for future growth."

It said its report was insight in how entrepreneurship, with "the ultimate aim of improving economic growth, prosperity and quality of life" to successfully promote.

The WEF study highlighted eight different important growth strategies for early-stage companies.

It said a key finding was that the similarities in early-stage companies around the globe are far greater than their differences.

"Dark moments"

Some operators reported "dark moments" when creating their companies to lose such an important customer or media errors the failure of a promising research.

Sir Martin Sorrell, Chief Executive of advertising giant WPP, was called the secret of getting through this self-confidence: "in the dark moments I never thought that we go." "Not for one second."

WEF was also generally a successful company grow for two years and then in the next, what it "a growth path snakes and ladders" called would shrink.

The successful strategies that it belongs to "Teaching to take years for a more powerful engine for future growth down from the" advocates for the overcoming of it.

It also says that strong management systems of great importance is. WEF says that no systematic management systems adopt high-growth occurs is calls it "a self-inflicted wound".

The report saw 380,000 companies in 10 countries.

Read more >>

In pictures

20 April 2011, last updated at 03: 49 GMT

Violence spreads over parts of Northern Nigeria

Images from around the world on April 18.

FOM the traditional, the little quirky

Images from around the world: 9-15 April

Photo from in the whole world on April 14.

An exhibition of the work of photographers

Modern masters on display before the auction

A selection of photos on the subject is missing

Photos from in the whole world on April 13.

Russian celebrations of the 50th anniversary

Read more >>

IMF says us deficit, must tackle

12 April 2011 last updated at 16: 33 GMT  by Andrew Walker economics correspondent of the BBC World Service efforts by some US States such as Florida against their deficits with opposition it met is an urgent need for the United States against the deficit of public finances, after the International Monetary Fund (IMF).

The Organization has warned that risks to create the size of the deficit instability of financial markets.

However, the global economic recovery is strength, wins the IMF said.

In the developed economies, the private sector increasingly spending in ride that replaced recovery, it added.

This reduces the risks of a renewed recession Governments continue their expenditure to stop areas, said the IMF fiscal monitor.

However needed, the report warned that more developed economies to see levels of public debt.

"In developed countries, the United States, measures in particular must take that meet their tax obligations would allow" the IMF warned.

He said "market worry about sustainability remain subdued in the United States, but a further delay of the action could be costly tax, deficit increase still aggravated by rising income,".

The US deficit federal currently stands at $1.4 trillion (£ 858bn) and is achieving expected to be $1.5 trillion in the current financial year.

Deficit reduction

At the World Economic Forum meeting in Davos in January US Treasury, the U.S. Government's position on the government deficit Secretary Timothy Geithner explain.

"There is a greater recognition of the U.S. political system, that is our position not in the long-term, sustainable," said Mr Geithner.

"I know there are people who want to make very deep cuts that would undermine the recovery."

"You got to ensure that recovery does not hurt you and take risk so much that you damage the early expansion by shifting significant restrictions to prematurely."

"We go to not happen." There are some people who like to move to do... very quickly at very deep cuts in spending, but it is not the responsible way to do it. "

Competitive currency

The IMF twice-yearly review of the global economy also suggested that risks in emerging markets were building.

It said that some of them should allow their currencies to rise, from the inflation by cheaper imports.

There was a strong implication that China is a country, has the IMF in mind.

A stronger and therefore less competitive currency is something that many other countries in China want to see.

India is expected to continue to grow very strongly over the next two years, although not as fast as in 2010, when the IMF data it after faster than China has grown.

Read more >>

China again raises Bank reserves

18 April 2011 last China is updated inflationary measures at 03: 37 GMT ' take a long time ", says Peter Hoflich the Asian Banker China Central Bank raised the amount of money, the lender in reserve for the fourth time have this year, as it increasing inflation battles."

Insisting banks hold more money to give the Central Bank hopes, which in turn will reduce expenditure limit.

The latest move, raising the required reserve ratio from 20% to a record 20.5%, is expected to be over building Yuan ($54bn, £ 33bn) lock-up, which can otherwise give banks.

Inflation in China reached 5.4% in March.

Rising food prices were the main cause, with the cost of food by 11.7% in the year to March. Housing costs have also surged.

The Central Bank has increased four times also interest rates since October, when it tries to inflation put an end to areas.

Read more >>

China is booming as inflation ensures expansive 5 percent

15 April 2011 last updated at 09: 22 GMT the Government has tried, food and property to curb China's economy its boom in March and was inflation since 2008 for the fastest speed accelerated.

Growth faster than expected was 9.7% between January and March over the same period a year earlier, said the National Bureau of statistics.

Consumer prices increased in March compared with the previous year by 5.4%. There was the annual 4.9% in February.

The Government has taken steps to try, property and food prices cool.

Chinese inflation has despite accelerated four interest rate increases since October.

"The numbers higher than market expectations, in particular the CPI (consumer price index), inflationary pressures is really great meaning," said never Wen of Hwabao confidence in Shanghai.

"So I think that on the skin tightening measure."

Control of inflation

Chinese President Hu Jintao said Friday that China's economic growth was still unbalanced.

Read the main story Martin patience BBC News, Beijing

The authorities have for months it was that their top priority is the fight against of inflation.

But despite measures such as the increase in interest rates that increased borrowing, inflation remains stubbornly high.

The Chinese authorities have placed much value in the treatment of the economy.

And that is, why it is so sensitive to the issue of inflation in China.

With millions of households spending half of their income for food is the fear, that social unrest could trigger high inflation.

The price increases are a result of massive government spending and loan program to ward off the effects of the global financial crisis in 2008.

The lending boom also House and stock prices drove to fears of an asset bubble.

He promised the role of domestic consumption in the economy boost.

Mr Hu expressed which Asia's version of the World Economic Forum on the Chinese island of Hainan in Boao.

This week, Prime Minister said Wen Jiabao, that the Government would use all the tools available to combat inflation.

"We are all means to stabilise the prices, the top priority of our economic controls this year and also our most urgent task try the" Mr said Wen during a cabinet meeting.

Food prices

Rising food prices were the main cause of inflation. The cost of food was 11.7% in the year to March. Housing costs have also surged.

Prices were driven by the demand. Retail sales in the first quarter of the year, 16.3% was over a year ago.

Driving in another sign of the effects of strong growth, oil demand for February rose to 10.3% a year ago, world oil prices higher.

The Chinese Central Bank increased the amount of money that must have Chinese banks lending to limit and to try to control inflation reserve.

Analysts expect the Bank to order further increasing in addition to possible interest rate increases.

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Indian inflation rate hits 8.9 %

15 April 2011 last updated at 15: 09 GMT analysts believe a rate by the Indian Central Bank, India's inflation rate is now likely to 8.9% by 8.3% increased in February, driven by fuel and production costs, the Government has announced higher.

Also, the January inflation rate was 9.35% from 8.23% corrected upwards.

Earlier this week the International Monetary Fund (IMF) about the inflation warned building in fast-growing economies of Asia.

The body said "Boom-like Dynamics" not may be, except get control.

The Reserve Bank of India has raised its key interest rate eight times since March 2010.

The cost of borrowing currently is 6.75 %

Analysts believe, a further rate rise by the Indian Central Bank is now likely.

"It seems that inflation has changed guiding curve." "The expected decline in inflation just does not happen and looks like we have underestimated the underlying pressure on prices," said Ashutosh Datar, an economist at IIFL in Mumbai.

"Further monetary tightening is inevitable after today's data and 50 basis points in May will strengthen the case for a hike," he added.

Rising raw material prices push up the inflation rate in the world.

On Friday, China has shown that prices increased in March compared with the previous year by 5.4%. This was 4.9% in February.

The rate of inflation rose to 2.7% in the euro area and the United States.

Read more >>

Portugal begins talks Bail-Out

18 April 2011 last updated at 14: 54 GMT Finance Minister Fernando Teixeira dos Santos leads the Portuguese delegation in talks Portugal euro ($115bn, £ 70bn) started with international authorities about the conditions of a Bail-Out, expected to be worth up to zurückgeschnitten talks.

Senior officials from Europe and the International Monetary Fund meet Portuguese Finance Minister Fernando Teixeira dos Santos in Lisbon.

Meanwhile denied Greece that a Bail-Out got in the last year, reports that its debts would have to restructure it.

Euro lost 1% of its value against the dollar as one of the reports.

It was trading at $1.4275. Against the pound, it was 0.7% to 87.78 pence.

Benchmark for Portugal and Greece reached the yields on government bonds also its highest level since the introduction of the euro of 1999 on concerns the European debt crisis.

"Greece in such a difficult situation that restructuring is inevitable, sooner rather than later", said Daniel Gros of the Central for European policy studies BBC world.

"Most earlier say would would be better than later, but the politicians do not agree, do they want to keep, as long as possible" he added.

Read the most important story of

, that the Finnish Parliament has the right to vote at the request of the EU to other countries Bail-Out. The strong showing of the true Finns could potentially delay the rescue plan for Portugal. "

End quote Bank of Greece Governor George Provopoulos its debt - i.e. the conditions change - restructuring Gavin Hewitt was"neither necessary nor desirable"BBC Europe Editor."

The General Confederation of the Workers Union, the one million members, which said that it, the cost-cutting measures to protest would hold a strike on the 11.

And the European Commission denied there were talks about a possible restructuring of the Greek debt.

The nervousness spread market even after Spain, which, to borrow money for 12 months at an auction on Monday had to pay much higher interest rates.

The heavily indebted State, which is often spoken as the next State, a sovereign debt crisis could be facing a rate of 2.77%, up from 2.13% paid last month.

Finnish question

Officials have suggested that the conditions of Portugal's rescue deal agreed by mid-May.

It is to find a Bail-Out the third element of the euro within a year.

Greece received € 110bn in May last year, during the Irish Republic a Bail-Out at about 85bn euro in November were.

Read the most important story that two German EU delegations - Jürgen Kröger for the European Commission and Rasmus Rueff for the European Central Bank - lead while the IMF team is headed by Dane, Poul Thomsen.

However the true Finns can be the completion of the Portuguese Bail-Out more complicated by the strong showing last party in Finland. The true Finns are take advantage of and against the Bail-Out.

The European facility for financial stability, worth up to 440bn euros, financed by members of the eurozone and requires unanimous approval to be used.

An enemy of the Finnish Government could theoretically veto the package and, in contrast to other countries of the euro area, the Finnish Parliament can vote whether to approve the measures.

The European Commission tried to downplay this possibility in the light of the election campaign.

"We expect Finland fully to its obligations with regard to the involvement of Finland as the rest of the eurozone,", he said.

Watch: "It is almost a done deal," says Daniel Gros of the Centre for European policy studies

In the Finnish television, the true Finns, leader, Timo Soini, said: "The package, that is, I think it is."

Strict opposition

In Portugal, the main opposition party in the Transitional Government bid Bail-Out is secure, but many members of the public have been vocal in their opposition, the BBC's Alison Roberts reports.

"Is not clear how much can be more rigour imposed on results from the June elections, regardless of which Government," says our correspondent in Lisbon.

Workers in the public sector, which have already cut their wages plan to strike at the beginning of May. Also, there were widespread protests with young people in the last month about the lack of job opportunities.

The Government of José Sócrates collapsed last month - Bail-Out - request, because he does not pass package an ambitious austerity measures and privatization could get.

But some economists suggest that the IMF are on the interest rate and duration of the loan to EU officials, under pressure from voters in the Member States are, which put the money could take a softer line.

This is, since the IMF last week that Portugal forecast would GDP this year and continue to shrink.

Read more >>

Bail-Out views

Last updated 7 April 2011 to 23:08 am by Rob young business reporter, BBC World Service, Lisbon and Frankfurt Dinis Coelho Dordio had to cuts in his shop that view by Dinis Coelho Dordio farm has one of the most beautiful in all Portugal.

His Sintra you can farm house an old Castle and a former Royal Palace located at the top of the wooded hill, starting at the bottom of his country.

In the Centre of the well-maintained lawn can a giant white marquee holds 300 guests. The family rented it to couples hold wedding receptions.

But the business has made by Portugal's savings program of spending cuts and tax rises are, as their growing debt control the Government fought has.

"Today is a little too large [marquee]." Nowadays, it is not usually 300 guests. There are 200 maximum, because we are in a crisis, "he says."

The family business to employees had fired and tries to diversify in the restaurant industry.

Dini is concerned, but things get even worse if, as expected, an international Bail-Out more closely strapped means more belt.

"People are afraid because we don't know if we have social security, when we will have money for pensions in a few years." "As people start, really, whether or not money to spend."

Jobs problem

The Centre of the city of Lisbon is an hour away by train, where old, bright yellow trams along cobbled streets trundle.

The sidewalk cafés of Chiado of district are the place to politics and philosophy for more than a century to discuss.

In fact a statue of famous writer of the country travelled Fernando Pessoa, on one of the tables.

SIP an espresso near 27-year-old Joao Gomes.

He graduated from the University with a degree geography a few years ago, since he can only get temporary jobs - a major problem for the young nation.

But he does not think, strict - whether by the Government or a EU IMF Bail-Out - is the right recipe to get the economy on its feet again.

"I accept it." I think taxes are very high, they are too high, "says he."

He fears that achieve a Bail-Out of Portugal's European Union partners, the country in an even bigger financial mess.

We should manage the problem and not ask for help from the outside. We know that every cent we questions, we have to back pay more in the future. "

"Happy People" Homens as Luta hope restore national pride in the this year's Eurovision Song Contest

Financial crisis of the country is also the subject of the Portugal's entry in the Eurovision Song Contest.

The ironically titles that Sung "A Luta É Alegria" or "The battle is joy" of comedians turned singer of Homens da Luta.

Lyricist JEL says that to solve leaders and ordinary people of the country in complete disagreement to the financial difficulties of the country are.

"The vast majority of the politicians who govern us demand to bring people to the victims." "Young people with talent are Portugal because they can find jobs, where they can ahead."

He shall think it restore some national pride, numbers can be when he and his group in Eurovision in Germany may, compete may even against the country for Portugal's Bail-Out?

"Our song bad, speak of Germany or any other country" he says. "We go to Germany, to Europe show that Portuguese are not sad people." "We are happy people who want to live with our brothers in Europe."Euro capital

The European charity strain is a thousand miles away in Germany signs for.

Opinion polls have about half the German does not want to, that their country to hand over all more money to bail out debt-ridden countries proposed.

As Europe's richest country, Germany is the largest guarantor of programme to give that money to run massive money in European countries.

Frankfurt is the capital of the European monetary system, housing the European Central Bank, the guardian of the single currency.

The European Central Bank is highly visible in Frankfurt am main

Outside Headquarters, there is a huge bright yellow and blue sculpture in the form of the euro currency symbol.

Tourists get their photos under it. But the currency and everything, what it has become a source of irritation for some in Frankfurt am Main.

Clemens Christmann from the Hess "German taxpayers fear of other countries debt to pay are", says industry association, an organization that represents mainly family owned company.

"I'm pretty sure that the German taxpayer will not accept from year to year increased spending for other European countries."

"Other laws"

Germany's various levels of Government are their own levels of public spending cuts as they try to balance their books.

Rome's square, the medieval square next to the main, has a main meeting place of the city for centuries.

People here not about whether euro contributions to the most indebted Nations still should Germany multi-billion agree.

It has a mixed reaction in Germany the country's contribution to the euro-zone rescues

"We have more laws make, so that countries in Europe, which have difficulties need no help from the other countries in Europe," says a local.

Her friend remembers the days before the euro was lovingly.

"The German mark was better." "It was better when each country had its own currency."

But European solidarity has not completely disappeared. The Federal Government's argument that benefits from a strong euro Germany resonates clearly with some.

"Germany got huge benefits from the euro." You [countries in difficulties] must be supported. What can we do? These countries would break "another says resident."

Exporter benefits

In Frankfurt's oldest music store hundreds of classical and e guitars on the walls hang music, cream.

Half of the shop are selling for people outside of Germany.

Co-owner Bernie Hahn says that exporters benefit his country of all Bail-Outs in the long run.

"If we strong neighbours, still not, our buy products that have?" As an investment in our own economy at the end of the day is it, "he says."

But it is not only trade, which motivates him - it's also a feeling of being a European.

"It was part of the deal from the beginning." Everyone knew that we pay for it. "We are the strongest economy in Europe so that only the deal is."

Read more >>

Economic threat

6 April 2011 last updated at 00: 38 GMT Yemen is on the way to reduce weak economy, some economists warn hundreds of thousands of demonstrators in Yemen continue to call for the resignation of President Ali Abdullah Saleh. In the West is concerned Yemeni uprising could authorize al Qaeda, but some believe the real risk - is the economic. This report is by our correspondent in Sana'a, Yemen, cannot be named for security reasons.

Ali Abdullah Saleh has the walls of Sleiman's small grocery store in Medinat al-Leyl - one of the poorest districts of Sanaa.

"I am for stability," Sleiman said. "Security is what I want."

Since decades Sleiman President Saleh saw as the man, the Yemen stable hold, but now he begins to change his mind.

Not so much because of the protests that have swept the country, but because life in Medinat-al-Leyl has become more difficult.

Prices rise, and security issues and roadblocks across the country make it difficult to deliver goods for Sleiman.

"People are hoarding."You buy supplies for the coming two months just in case, he says.

Cut taxes

Medina al-Leyl embodies many no running water has Yemen's problems - the neighborhood streets are dirty, malnutrition is widespread.

Yemen has weeks of nationwide protests were taken

Aid agencies say that because of the crisis, tens of thousands already not to food purchase, and economists warn that Yemen's weak economy on the way to the collapse is.

As anti-Government protests began two months ago, President Saleh led a series of reforms.

Those who ignore that it spending money warned, that he not have Mr Saleh cut taxes, increased the salaries of civil servants and public sector jobs created.

When down not the protests, calls for economic incentives the Government people hold rival demonstrations.

"If you are in the situation, the President with access to the Central Bank, bring thousands into the streets will be", says Hameed al-Ahmar of the opposition Islah party. "These people are, and if we control the Central Bank we have proof."

Three young men, to be - confirm not called away from the crowds chanted slogans in support of the President Mr. Ahmar theory.

A boy says, that his father, who is a village Sheikh, last Friday demonstration 300 people expressed. The Government, he says, pays for their transport and food, and everyone got the equivalent of $10 (£ 6) per day paid visit.

Another young says he received lunch and paid the equivalent of $10.

"Our Central Bank is now empty," he laughs. "they need more money soon."

Saudis 'fed up'

Diplomats in Sanaa say, that the Central Bank more money for new Government spending match print. The IMF and the World Bank also confirm the Government tap its reserves is and that this wreaks havoc on the Yemeni currency - rial.

Rial's value has dropped sharply was, and dollar have virtually disappeared from Exchange booths and banks across the capital.

In the country, that its most imported, importers will fight now, letters of credit, with suppliers demanding advance payments in full.

The price of wheat flour has almost doubled after the World Food Programme (WFP), last month. And food shortages, aid organizations ensure fewer people be able to afford although not imminent threat staple.

"The situation is not good." "If you take the global increase in the food, mix Rial in it weakening, and add the political situation, we really good news, not have," says Gian Carlo Cirri, of the WFP.

The increased spending by the Government comes as sales have dropped. Some estimates show that oil production in the past two months, after oil companies pulled out their staff and tribesmen set aflame an oil pipeline connection boxes of Marib's oil to the Red Sea last month imposed.

While recently umpteen billions in Bahrain and Oman help Yemen's powerful neighbors Saudi Arabia it has poured Governments, seems Riyad in no hurry to help Yemen. Many take this as a sign that gave the Saudis to the Yemeni Government.

"In one of the Wikileaks, which complained the Saudis that all send the money on Yemen ending in Swiss bank accounts, so that they see the advantage of not with the current regime intervene, fed up" says Sanaa-based analyst Abdel Ghani al-Iriyani.

The cost of the Yemeni revolt and the collapsing economy, many believe, is the greatest threat to the stability of the country.

"The Government takes measures Rial stable to hold", says economist Mohammad al-Maitami. "But if there is any confrontation, Rial collapsing and Yemen will reduce with him."

"People have no access to food and water." People will fight, "he adds."

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Boost fears?

Last updated 7 April 2011 to 13: 59 GMT by Damian Kahya business reporter, BBC News the President of the European Central Bank, Jean-Claude Trichet, is the decision of the European Central Bank, is to increase interest rates to 1.25% of 1% as a surprise, almost no one come fine balancing act.

The Bank had intentions far drawn was thus not risk scaring the markets.

But the news of last night that was Portugal it, ask for a Bail-Out having latest eurozone country the sub-units of the euro highlighted.

Some economists have warned that an interest rate rise to welcome some countries, for others the opposite of what they need.

Rising prices

The euro-zone economy is increasingly divided between the countries, which by the financial crisis recovered have and have those that still have to fight.

Due to some of the historical and geographic coincidence to have the two groups of "Core" and "Periphery" was called.

The core is of Germany, led where the latest official figures rising industrial production showed, that is a further 1.6% in February compared with month earlier.

At the same time euro zone taken inflation 2.6% in March - well above the Central Bank objective, although well below the rate in the United Kingdom.

Economically the core countries account for most of the output - so the Central Bank has to customize them.

"The level of the base interest rate, specifically, no longer in line with the based on the situation in 85% of the euro area", Giles Moec, European Economist at Deutsche Bank said.

Continue reading the most important story

the periphery now have quantitative easing rather than a rate hike "

end quote Marco Valli European Chief Economist UniCredit limit to growth?" The situation is quite different for the economies in the so-called periphery.

The Republic of Ireland, Portugal and Greece she can fight for a large part of the economic performance of the euro area - account, but not according to the growth of the core.

All are involved in severe austerity programmes which are likely further pressure on their ability to grow.

"The periphery now need is quantitative easing rather than a rate hike,", Marco Valli, chief eurozone said economist at UniCredit.

But a rate rise itself have a relatively small effect on these economies also.

The Governments of Greece, the Irish Republic and now Portugal see only a limited effect on their sovereign borrowing costs because they are subject to Bail-Outs.

To calculate that which will be a rate cut of the GDP to 0.25% in three years the impact on the larger economic Italian bank UniCredit.

The Irish property market suffer with rate increases

Instead, the concern is that increases damage of economic confidence and disproportionate effects have to be.

Households already in significant debt, can be affected the most.

"they are already shaken by unemployment, increases in tax and social welfare cuts," said Austin Hughes, Chief Economist at KBC Ireland. "Ireland, Spain and Portugal also tend to have a far greater concentration of variable rate bond than other countries."

This means that home and homeowners see a greater effect of rising interest rates and can by default on mortgages.

That would mean more trouble for banks.

Export make

Rate rises can also push up the value of the euro, which drives the price of exports.

This would it more difficult for countries to export their way out of the recession.

The ECB is the Federal Reserve and the Bank of England in which procurement if it continues to do probably will further strengthen prices - euro.

A new survey of KBC and chartered accountants Ireland of the Irish finance officers found, that 73% of Irish companies felt a rate rise would be harmful to their Aussichten.Geld available

But economists to point out that the European Central Bank is still money of troubled banks available in the periphery at special rates.

Since the financial crisis banks could now hold money in the base rate - 1.25%.

Previously, she had to fund, drive the cost of borrowing to compete.

This "full allocation" policy should limit the effects of rising prices on banks.

If interest rates remained could higher inflation unchanged, instead increase the long-term costs of borrowing for all euro-zone countries.

For the countries of a Bail-Out the move make ultimately not much difference either way.

"The problems of the Portugal are much more complicated than a rate hike way 0.25%, they need external help," says Mr Moec of Deutsche Bank.

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EU strict drive country

6 April 2011 last updated at 21: 08 GMT Portugal has a wave of protests public sector cut protection Europe cuts for a generation is seen in the grip of the tough austerity measures - some of the lowest public sector.

Shockwaves are still by the financial crisis of 2008, feel that bank lending paralyzed and left Europe's huge budget deficit and public debt.

In the troubled 17-nation euro zone Greece and the Irish Republic received huge Bail-Outs last year from the EU and the International Monetary Fund (IMF). Portugal is next in the series for such a rescue.

Investors fear of the debt of this 'Peripheral' eurozone countries sent floating interest rates (yields) on their Government bonds, making it more difficult for them, on the international markets to borrow.

The 27 EU Member States want their budget deficits to a maximum of 3% of GDP by the year 2014-15, cut, so what belt measures are more tightly strapped countries take?

Caretaker Prime Minister José Sócrates, on 6 April, said he the EU had asked for financial aid - a movement that had been long expected. He joined a new austerity package in March after the opposition rejected. He is acting PM until an early election on 5 June.

Various strict measures have been adopted already. Top earners in the public sector, including politicians, see a 5% pay cut. VAT (value added tax) increase by 1% and is income tax hikes for those earning more than 150,000 euros (£ 131,000). The defense budget is drastically shortened and two high-speed rail projects are moved have been.

Public services, including flights and garbage collection, were paralyzed by a general strike on November 24 on the cuts.

In December, the former Irish Government adopted a EU IMF Bail-Out 85bn worth euro (£ 75bn; $119bn). But the new coalition Government by Enda Kenny, the interest rate on the credit would like to receive reduced.

Since 2008, euro, a huge hole in public finances has the cost of bailing out the affected banks 46bn. But that costs will increase euro to almost 70bn because Bank stress tests, published in March 2011, showed that four major banks would have to be cleaned up.

The toughest budget in the history of the country contain a promise, trim the deficit from 6 euros in 2011. Euro has billion Government spending, lowered with all officials to at least 5% salary and social welfare reduced slashed.

The conservative liberal democratic coalition Government has announced the biggest cuts in government spending since World War II.

It is estimated that around £ are between savings be made over four years. The plan is, deleted 490,000 public sector. The most budget cuts Whitehall departments face of 19% on average. Is the retirement age from 65 to 66 to 2020 to rise.

The budget deficit is about 10% of GDP and unemployment - 2.53 million - is officially at the highest level since 1994.

Increased public anger about the cuts. More than 250,000 people demonstrated largest protest of the city in London on 26 March - since the Iraq war 2003.

France has announced to loss potentials euro (£ revenues) to cut expenditure in the next three years. It includes close savings through tax loopholes and withdrawing the temporary economic programs measures.

The highest earners must pay income tax also an additional 1%.

The plan, the retirement age of 60, to increase 62 and the full State pension age from 65 to 67 provoked major protests and strikes over the past year.

The Greek Government at the end of its economic problems by the drastic cuts in expenditure and increase tax revenues in exchange for a EUR 110bn (£ current) Bail-Out from the EU and IMF required.

The rescue deal agreed in may, after Greece's budget deficit - 13.6% of GDP - turned out to be much higher than originally reported.

Efforts be made to tax evasion and fight to prevent government corruption. Early retirement schemes be reduced is. On the average retirement age from 61.4 to 63.5 rise set.

Public sector bonus payments are to be scrapped; Salaries and pensions for at least three years frozen public sector; VAT will increase from 19% to 23% and taxes on fuel, alcohol and tobacco by 10%.

The cost-cutting measures have caused public sector strikes and violence on the streets of Athens.

Founded in the centre right coalition, after months of negotiation on 8 October said, he wanted the budget cut to 18 euros ($ reinsurance segment; £ 15 billion euro) 2015.

But the new Government is to adopt themselves to the radical freedom, legislation, and there are doubts about the long-term viability.

Unemployment has doubled since more than - 20% in 2007. It is the highest rate in the EU and Spain's biggest economic problem.

The Government approved an austerity budget for 2011 includes an increase in taxes for the rich and 8% spending cuts.

Government workers had reduced their pay by 5% and salaries will be frozen for 2011. The retirement age is 67 is raised.

Increase the taxes on tobacco by 28% and Madrid also plans to sell 30% of the Spanish National Lottery and a minority stake to airport authority of the country.

Proposed the Government wage cuts of 25% and pension cuts of 15% in May to reduce the country's budget deficit.

It gave resignation protests and Interior Minister Vasile Blaga after thousands of police officers on strike over the 25% pay cut went.

Romania's economy shrank more than 7% in 2009 and it needs to meet an IMF Bail-Out to the wage bill.

The Government approved austerity measures reinsurance segment euro for 2011 / 12.

Italy aims, public sector pay cut and freezing new hires. Only an employee is replaced for all five left.

Public sector pensions and local government spending are also targeted, and there are plans, down on tax evasion. Medium for city and regional authorities will be reduced expected by more than 13 billion euro.

The Government plans the budget deficit to a record zurückgeschnitten to reduce euro by 2014. The total deficit in the year 2009 was 3.1% of GDP, but it will be more than 5% for the year 2010.

The plans include a reduction of subsidies for parents, 10,000 government job cuts over four years and higher taxes on nuclear power.

In contrast to many of its neighbors Germany enjoys strong economic growth - GDP grew by 3.6% in 2010. Unemployment is lower than before the 2008 crisis.

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Banks face "tougher" stress-tests

8 April 2011, last updated at 15: 30 GMT Allied Irish Bank had to be rescued out after passing the test Europe regulator banking which has said that banks of strict tests in its latest review of their finances to be.

It contains some Irish banks, including one that passed the last year's test, but later a Government needed Bail-Out.

The regulatory authority would like to make sure that banks have to resist enough capital more difficult economic scenarios.

The new tests include 90 banks including Royal Bank of Scotland, HSBC, Barclays and Lloyds banking group.

Barclays mentby earlier it record euro ($1 billion; £ 1.1 billion) to improve his Spanish Division their reserves after Government stress tests in Spain.

Stricter tests

In the 90 contain some banks are not tested before - such as the Irish Republic Irish life & permanent (IL & P) and two Norwegian banks.

IL & P ordered billion to increase euro last month after Government stress tests in the Republic.

Many banks are previously tested again, such as Allied Irish Bank contain. It was passed last time, but later a Government needed Bail-Out.

The tests described the European banking authority (EBA) examine how banks would fare economic conditions should deteriorate further.

"The scenarios are provided by the EBA strict," said Peter Hahn CASS business school, BBC News.

These include a European recession and a decrease of 15% in the European equity markets.

"they definitely more credible this time as last time;" "be it could be worse", said Mr Hahn.

Standard not tested, but despite widespread concern to pay countries skills were back, which will not look at their debts, the test what would happen, each country standard.

In all cases, banks should maintain a quota to a 5% animal. The term refers to reserves that could use banks to cope with losses.

At least 10% in the reserve, ceased said to ensure that they have banks in the United Kingdom, while the new Basel III international rules say that banks must hold 7% from 2013.

Certain forms of possession some German banks can not counted which means this time - that they may have extra cash to increase.

Boost cash

A survey of investment bank Morgan Stanley found that less than 10 banks were expected to not the test.

Those who do increase capital to sell assets or to reduce their loans.

Banks, who fear that they fail the test are expected to be in advance to raise money.

Three banks, Germany's Commerzbank, Italy Intesa Sanpaolo and Banca Monte dei Paschi di Siena have already announced, reserves, plans to increase their capital.

The results of the test are expected in June.

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Iceland rejects repayment deal

10 April 2011 were last updated at 11: 04 GMT the latest plan to repay of the Great Britain almost 60% of the people against the PlanIcelanders and around billion lost euro the Netherlands when the country's banking system is reduced rejected in 2008.

Partial referendum results showing coordination No 58% and 42% supported the plan.

Jóhanna Sigurðardóttir, Iceland Prime Minister, said that the rejection meant "the worst option has been selected".

UK Treasury Minister Danny Alexander said the decision was "disappointing" and the matter would go to an International Court.

Dutch Finance Minister Jan Kees de Jager, he said would consulting UK on further steps against Iceland, but added that the matter would likely in court end.

"I am very disappointed that the Icesave agreement not get." This is not good for Iceland for the Netherlands.

"The time for negotiations is over." Iceland remains committed to repay. Now for the courts to decide the issue is, "said Mr de Jager in a statement."

It is the second time a referendum rejected a repayment deal.

Icelandic Landsbanki ran bank savings accounts in the UK and billion lost it the Netherlands under the name Icesave and investors euro (£ 3 billion, $5 billion).

When it collapsed in 2008, the British and Dutch Governments had to reimburse 400,000 citizens - and repay money to decide Iceland like that.

Continue reading the most important story Joe Lynam BBC News

The Icelandic people were doomed, if she did and damned if they don't. It looks, as if she could not stomach still the idea of paying the debts of the private banks - disabled even if the revised agreement was essential more generous.

The consequences of this vote, the referendum is that much more could be extended Iceland's years in the financial wilderness.

Moody's and other rating agencies look set, the land of even further, downgrade costs it unaffordable, to borrow on the markets.

Icelandic bid will accede to the EU pauses, or even a veto of the United Kingdom and the Netherlands. And the tiny Atlantic economy faces legal action in the EFTA Court which, interest rate figures could force it to earlier than planned, and with a punitive expedition.

Democracy will not pay if you are an Icelander.

Mr Alexander, Chief Secretary to the Treasury, said Andrew Marr programme: "It is obviously disappointing..." We have tried to get a negotiated solution.

"We have an obligation to get the money back and we will continue to have, until we do..." We have a difficult financial position as a country, and this money would help, "he said."

'Such a horror'

Icelandic Parliament had backed up the business, but President Olafur Ragnar Grimsson rejected certificate pattern, which trigger the referendum.

A previous deal to introduce tougher reimbursement regime, was rejected in a referendum of March 2010, at 93% of the voters.

Finance Minister Steingrímur Sigfússon released a third attempt, voters accept a repayment deal to exclude.

"I think we are a very clear sign of this referendum, always, that further negotiations are excluded." "No use in trying the back."

A process is can take now to an International Court, the European Free Trade Association surveillance authority, referred to the several years the problem.

Backers of a 'yes' votes had argued that the agreement was the best way to resolve the problem of the costs and risks repayment after Iceland.

The 'no' camp said the Icelandic taxpayer was under no legal obligation to pay a private bank losses and that the agreement would put a heavy burden on the nation.

Extended period of time, lower interest rates

Under the terms of the rejected deal Iceland would have paid back the money more than 30 years between 2016 and 2046 with 3.3% interest in the United Kingdom and 3% in the Netherlands.

The previous proposal, the money was back interest rates between 2016 and 2024 with 5.5%.

Prime Minister Johanna Sigurdardottir: "disappointing numbers"

The actual cost to the State was expected much less than the billion owed euro, as the Government said that most would come the repayment from the sale of the assets of Landsbanki.

The Government has said it does not expect the costs more than 50 billion credit card debit (£ 168 m).

Analysts say that a solution vital is Islands prospects for recovery, the country would again on the financial markets thus to finance itself.

Solving the dispute is also key to the Islands see opportunities to join the EU.

Iceland the three largest banks broke within days of each other in October 2008.

The Government compensated Icelandic savers, but all faced overseas customers to lose their money.

The problem sparked a diplomatic row between Iceland and the United Kingdom and the uncertainty about Icelandic economic recovery creates.

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