The first quarter of 2012 was brutal for businesses in France: 16,206 filed for bankruptcy. A trajectory that may demolish the prior annual record set in 2009 during the financial crisis when 61,595 firms went bust. Since then, bankruptcy filings eased off. Now the direction has changed—and worse, it is hitting larger companies and a lot more jobs. But the French have a solution, one that would violate fundamental rules of the EU.
Transparency International just published the results of its National Survey on Corruption in Greece, which tried to sort out the kind of bribery and petty corruption that households had to deal with in their daily lives. The results were sobering, as they tend to be with corruption surveys—but in an unexpected way: for those asking for bribes, an outright depression has commenced.
On April 20, finance chiefs and central bankers of the G-20 hold a shindig in Washington DC. At issue is money. Bailout money for the Eurozone. The IMF wants to dig deeper into its pocket, but the amounts are skyrocketing, and … “We certainly need more resources,” explained IMF Managing Director Christine Lagarde. Bankrupt countries try to bail out bankrupt countries. And taxpayers everywhere get to foot the bill.
Economic reforms are tough. While they’re supposed to open opportunities, put budgets on sounder footing, or make the country more competitive, they invariably cut into the flesh of some groups, who then react with demonstrations and strikes to put pressure on the reformers to preserve the status quo. But in Italy, pharmacists have come up with an ingenious and tongue-in-cheek strike aimed straight at the reformers personally.
Italian Prime Minister Mario Monti, while in Japan, summarized it eloquently when he said, “The financial aspect of the crisis is over.” The ECB, despite apparently fake German reservations, has jumped with both feet on the money printing bandwagon where it happily joins the Fed, the Bank of Japan, and other central banks. The endless flow of money has started in the Eurozone, and Greek politicians have figured this out.
At 2 p.m on Thursday, the final day of the annual wage negotiations that were going nowhere, Bruno Ferrec, the man in charge of the nine Fnac stores in Paris, was “retained” by 120 of his employees at a conference room at the Hotel Ibis in Paris. “For now, we do not know when we will let him go,” said the representative of the CGT, one of the unions involved in the negotiations. And the police did nothing.
President Nicolas Sarkozy, practically written-off in the French presidential election, is grasping at straws, and in the process, during an interview on France Info, he created a new classification of people in France, and maybe even in the whole entire world: Muslim by appearance.
Europe with its relatively affluent population of 500 million has turned into a nightmare for the auto industry. And the R-word—restructuring—unpalatable and almost illegal as it is in Europe, is being bandied about, this time by Fiat-Chrysler CEO Sergio Marchionne, who, as President of the European Automobile Manufacturers’ Association, spoke for all EU automakers. It was a dire warning and a cry for help.
The latest success—I suppose you could call it that, at least for those involved on the financial end—was the Kiekert deal last week. The company was founded in 1857 near Düsseldorf, Germany, and became the largest manufacturer of automotive door-lock systems. Its customers are GM, Ford, VW, BMW, and other automakers around the world. But now a Chinese company bought Kiekert, the sign of a sea change.
Inflation pervades every aspect of our lives, from skyrocketing gasoline to rents to well, corruption. But inflation in the cost of under-the-table payments is notoriously difficult to measure, and so it’s not included in any of the indices. But in Germany, which is historically paranoid, and rightfully so, about inflation, after two wipe-outs in one generation, there’s progress: inflation in the cost of corruption can now be estimated.