A reality that is not enough to reassure the markets

True respite or simple technical rebound Markets have sent contradictory signals yesterday to the euro area. On the one hand, the European single currency was a little strength against the dollar, which may appear as the manifestation of a new optimism to European finance. On the other, the evolution of the "credit default swaps" (CDS) led to skepticism. Indeed, CDS of the Greece, but also the Spain and Portugal, left to rise, which means that we must pay more to hedge a risk of failure of these countries.

Statements by Finance Ministers of the G7 this weekend, have therefore only produces a mixed effect. As had summarized it Christine Lagarde at the end of this meeting, "the message has been that the European G7 members have confirmed their partners the substance and the importance of the plan put in place by the Greece, and they are convinced that this problem will be managed". Positive point: the Greece seems to have actually taken the problem to arm the body. Point more and more regarded as negative by the market: there is no project of bailout of the Greece by the European Union, nor by the international monetary Fund (IMF). It is this last scenario are calling for more and economists, the image of Arnab Das, in Roubini Global Economics. It puts forward the strict conditions that the IMF could set to lend funds to the Greece. A better device, according to him, to the intervention of the European Union, "which would be judge and party." "There is no shame to cooperate with the IMF", also said Jean-Pierre Jouyet, the President of the authority of des marchés financiers (AMF), breaking a taboo in the euro area.

"Each for himself".

For the time being, the countries caught in the turmoil are forced to "everyone for himself." The Greece will introduce, this week, new rules of austerity (read below). The Portugal announced last week, a series of budget cuts. As the Spain, also seen as a potential weak link, it unveiled last week, a draft budget aimed at saving 50 billion euros over three years. And yesterday, the Ministry of the economy was presented in Madrid, a program of bond on a reduction of 34 in 2010 in the volume of emissions. The Ministry failed to note that the Spanish debt will thus stand this year "nearly 20 points below the average European. A reality that is not enough to reassure the markets. The Spain remain reasonably debt, its budget slippage translated into effect the violence of the crisis that it crosses. Evidence, for investors, the country's growth model is to review in depth. A case of close figure of the Portugal, whose potential seems anemic by low productivity and specialisation in sectors with low added value. Behind the strictly financial question clearly point questions about the Economic Outlook for South Europe.

In the meantime, the Spanish authorities does not décolèrent against what they perceive as an activity of speculation against them. Yesterday, the Minister of transport, José Blanco, criticised the "financial speculators". While his colleague in charge of the economy, Elena Salgado, went to London to meet including the direction of the "Financial Times", very critical now on the euro area and its poor students.