显示标签为“WRAPUP”的博文。显示所有博文
显示标签为“WRAPUP”的博文。显示所有博文

2011年10月11日星期二

WRAPUP 4-Polish PM wins new term, markets buoyant

AppId is over the quota
AppId is over the quota

* Tusk's Civic Platform wins new four-year term

* Tusk to seek new coalition with Peasants' Party

* Marklets, analysts welcome outcome as sign of stability

By Gareth Jones

WARSAW, Oct 10 (Reuters) - Centre-right leader Donald Tusk has become the first Polish prime minister since the fall of communism in 1989 to win a second consecutive term following his Civic Platform's election victory, nearly complete results showed on Monday.

With 93 percent of the votes counted, Tusk's pro-business party had 39 percent of the votes in Sunday's election. Its main rival, Jaroslaw Kaczynski's nationalist-conservative Law and Justice party, trailed on 30 percent.

On that projection, Civic Platform would secure 206 seats in the 460-member lower chamber, or Sejm.

Its ally, the rural-based Peasants' Party, was on track to win 30 seats, giving Tusk enough support to rebuild the same coalition that has steered Poland smoothly through the economic turmoil of the past four years.

Tusk is also expected to try to lure moderate members of the post-communist Democratic Left Alliance (SLD) into a new coalition. The SLD won only about 8.2 percent of the vote after losing many younger voters to a new libertarian grouping.

Palikot's Movement, founded by wealthy businessman and former PO lawmaker Janusz Palikot, won 9.9 percent. Palikot's attacks on the powerful Roman Catholic Church and championing of causes such as gay rights and legalisation of soft drugs have struck a chord among young urban voters.

Lech Walesa, Poland's former president and leader of the Solidarity trade union in communist times, said Palikot had successfully tapped into issues neglected by other parties.

"Palikot had a clearer message... and people want a simpler, clear message," Walesa told TVN24 television.

Financial markets welcomed Tusk's victory as a guarantee of political and economic stability in the European Union's largest eastern member state at a time of deepening crisis in the euro zone.

"From the point of view of the markets, this is very good news. Investors worried that we could see a coalition made up of three parties," said Ernest Pytlarczyk, chief economist at BRE Bank.

The Polish zloty was 1 percent higher against the euro in early Monday trade, bonds also firmed and the Warsaw bourse's main index rose 0.3 percent while other regional stock markets fell.

Polish President Bronislaw Komorowski, a former Civic Platform lawmaker, is expected to ask Tusk to form a government but has said he must first wait for the final election results, expected on Tuesday evening.

"I hope that it will be possible to reduce the time necessary for creating the government ... to a minimum," Komorowski said on Sunday evening.

The main surprise of the election was the rise of a new liberal grouping, Palikot's Movement, which the exit poll showed winning 9.9 percent, much of it at the expense of the former communists.

Janusz Palikot, its founder, is a wealthy businessman and former PO lawmaker whose attacks on the powerful Roman Catholic Church and championing of causes such as gay rights and legalisation of soft drugs struck a chord among young voters.

CONTINUITY

Political analysts said Sunday's election result showed Polish democracy had come of age.

"The ruling party and coalition for the first time in Poland's post-communist history has been re-elected and that shows the consolidation of democracy in Poland," said Jacek Raciborski, a political scientist at Warsaw University.

"Only the low turnout is worrying," he added.

About one in two eligible voters took part in the election, in which a return to power by Kaczynski would have threatened relations with Germany and Russia and worried investors.

Tusk's party also won a clear victory in the upper chamber, or Senate, where it was projected to win 62 of the 100 seats.

The outgoing coalition has presided over four years of strong economic growth, steering Poland smoothly through the 2008-09 global financial crisis without dipping into recession.

Its victory ends a string of defeats for ruling parties in elections in EU member states this year, including in Portugal, Latvia, Denmark and Ireland.

Civic Platform has pledged more cautious reforms aimed at reining in the public debt and budget deficit, expected to reach 53.8 percent and 5.6 percent respectively this year.

It also wants to continue a privatisation programme set to net 15 billion zlotys ($4 billion) for state coffers in 2011 and to pursue closer ties with Poland's EU partners.

The result is a personal triumph for Tusk, 54, a pragmatic liberal conservative from near Gdansk on Poland's Baltic coast, who was involved in the Solidarity movement that helped end decades of communist rule.

Tusk, whose country holds the EU presidency until the end of this year, favours closer integration with the rest of the bloc and says joining the euro remains a strategic goal for Poland despite the debt crisis in the euro zone.

He has good personal ties with German Chancellor Angela Merkel and has maintained a cautious rapprochement with Russia, despite strains over a plane crash there last year that killed then-President Lech Kaczynski, Jaroslaw Kaczynski's twin.

Jaroslaw Kaczynski's calls for a halt to privatisation, for higher taxes on the wealthy and for a more combative stance in dealings with the EU had unsettled investors.


View the original article here

WRAPUP 2-Europe eyes buoying banks to weather debt storm

AppId is over the quota
AppId is over the quota

* Europe banks may need more than 100 billion euros -Ireland

* High risk that crisis could broaden - Schaeuble

* Merkel, Sarkozy to meet Sunday in Berlin

By Carmel Crimmins and Jonathan Gould

DUBLIN/FRANKFURT, Oct 8 (Reuters) - European banks may need more than 100 billion euros ($135 billion) to withstand the sovereign debt crisis, Ireland estimated on Saturday ahead of a meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy to work out how to recapitalise the lenders.

The falling value of banks' holdings of government debt from Greece and other euro zone periphery states has already provoked the implosion of Belgian lender Dexia , adding urgency to the Merkel-Sarkozy talks.

"There is a high risk that this crisis further escalates and broadens," German Finance Minister Wolfgang Schaeuble told German paper Frankfurter Allgemeine Sonntagszeitung in an interview released in advance of publication on Sunday.

Germany and France have so far been split over how to strengthen shaky lenders and fight financial market contagion that may follow a possible Greek default.

Paris is keen to tap the euro zone's 400 billion rescue fund, the EFSF, to recapitalise its own banks, while Berlin is insisting the fund should be used as a last resort.

The International Monetary Fund (IMF) has said European banks need 200 billion euros in additional funds.

Irish Finance Minister Michael Noonan said the capital needed to bolster banks' cushions was likely to come from a variety of sources but the total bill would be large.

"I think there is general agreement that it will be significantly in excess of 100 billion (euros)," Noonan told reporters on the sidelines of an economic forum in Dublin.

"I know that some of the big German banks that I was talking to personally intend raising money on the market so it will be private funding. Other banks would like to avail of the EFSF fund. Other banks will rely on their sovereign governments to provide the capital so there is going to be a range of ways of doing it," he said.

Regulators worry that forcing a raft of major lenders to take state aid would not be the best use of Europe's limited capital resources, while banks fear than singling out only some lenders for extra support could heighten market worries about weaknesses at individual banks.

German newspaper Frankfurter Allgemeine Zeitung on Saturday cited financial sources as saying France's five-biggest lenders would agree to take 10-15 billion euros in funding from the state but also wanted to see Germany's No. 1 lender Deutsche Bank plump its capital cushion.

But a senior French banking source shot down the idea that French banks could be pushing for state aid, saying the Frankfurter Allgemeine Zeitung report was baseless.

"I don't know what game the Germans are playing... This is wishful thinking," the source told Reuters, asking not to be named.

Deutsche Bank Chief Executive Josef Ackermann is against any role for the state in his own bank's capital position and has ruled out a capital increase.

A Deutsche Bank spokesman on Saturday referred to Ackermann's long-standing public position and declined further comment.

The chief financial officer of Deutsche Bank unit, Deutsche Postbank , said he expected the 21 percent haircut on Greek bonds that international banks agreed to take as part of a EU-brokered debt relief deal in July would not be enough.

"Therefore we would expect renewed writedowns in the third quarter," Postbank's Marc Hess told Boersen-Zeitung newspaper.

Banks' need to gird their capital bases is also leading some to merge, such as Spain's No. 5 retail bank Banco Popular , which launched an all-share bid for its smaller rival Banco Pastor on Friday.

FIGHTING FIRES

Sarkozy is due to arrive in Berlin on Sunday afternoon and hold a working dinner with Merkel in the evening, amid signs that conditions for resolving the crisis are getting no easier.

Slovakia's coalition government was in deadlock on Saturday over talks on ratifying a strengthening of the EFSF rescue fund, with a junior party insisting on conditions for its support.

Euro zone minnows Slovakia and Malta are the last countries holding up expansion of the EFSF mandate, which is needed to fight the sovereign debt crisis

Angry Greeks have taken to the streets to protest government efforts to slash spending, boost taxes and privatise state companies but Belgian Finance Minister Didier Reynders said the pain could not go on indefinitely.

"This is not acceptable on a political, social or even economic level: we do not want the cure to kill Greece," Reynders told Greek newspaper Proto Thema in an interview.

Meanwhile, Greece's representative at the IMF said the country's borrowing needs will be higher than currently projected due to a tougher-than-expected recession and the outcome of a debt agreement with private sector creditors.

"This financing gap will have to be covered either by increasing the 109 billion euro loan agreed on July 21 or through a restructuring of private debt," Panagiotis Roumeliotis said in an interview in financial daily Imerisia.

EU leaders agreed in July to provide Greece with a second bailout of more than 109 billion euros to help the country service its debt through to 2020.


View the original article here