Catalonia seeks independence and declares sovereignty ! France a zombie - did they need their wag the dog moment to deflect away from domestic troubles ?

http://globaleconomicanalysis.blogspot.com/2013/01/catalonia-drafts-declaration-of.html

Sunday, January 13, 2013 1:09 PM

Catalonia Drafts Declaration of Sovereignty, Announces Vote of Independence, Seeks Self-Determination in 2014

Via Google translate from El Pais, please consider Catalonia proclaimed "sovereign subject"

The Catalan Parliament proclaimed that Catalonia is "legal and sovereign political subject" in the vote will mark the formal start of the independence process and solemnly opened by the President of the Generalitat, Artur Mas . The Catalan House will vote on the first floor of the legislature, scheduled for the 23th, the statement called sovereignty of Catalonia, first step to call the query for self-determination in 2014.

Convergence and Union and Republican Left (ERC) yesterday closed a first draft of the text, they sent groups to a greater or lesser extent, defending the right to decide: Partit dels Socialistes (PSC), Initiative for Catalonia (ICV-EUiA ) , and d'Unitat Popular Bid (CUP ). The text is open to nuances, but CiU and ERC, a parliamentary majority, will not accept major changes.

The resolution does not set the date of the consultation, although both parties in the legislature signed agreement, have signed a commitment to hold the vote in 2014. Without the permission of the Government, the referendum is unconstitutional, so the claims and makes clear that it will look for any possible legal formula to perform: "They used all existing legal frameworks to implement the strengthening of democracy and the right to decide. "

The statement, a text of six points with a long preamble emphasizes that the Catalan government will dialogue with the state, but also makes clear that no agreement will be asked to help "the European institutions and the international community as a whole." From the query performed, CiU and ERC agree to be "scrupulously democratic" pluralism and ensuring citizens' access to all information.

This will be the fourth time that the Parliament proclaims the right to self-determination of Catalonia. But it will be the first to clearly set this right is specified in a query to proclaim independence. It is the first step in the process sovereigntist, to continue in the first half of this year with the creation of the Catalan Council of National Transition , designed to protect the process, and the opening of negotiations with the Spanish government to convene a referendum.

Declaration of Independence

Here is a translated version of the Declaration of Independence as listed in El Pais.

"Declaration of Sovereignty of the Catalan people"

"According to the democratically expressed will of the people of Catalonia, the Catalan Parliament agrees to declare the democratic sovereignty of the people of Catalonia as a political and legal, initiating the process to make the exercise of the right to decide how implementation of the right to self-determination of peoples, and to enforce the will of Catalonia form a new state within the European framework in accordance with the following principles:

1. Sovereignty. The people of Catalonia have, for reasons of democratic legitimacy, political subject matter of legal and sovereign.

2. Democratic legitimacy. The process of exercising the right to decide will scrupulously democratic, especially ensuring the plurality of choices and respect for all, through deliberation and dialogue within Catalan society with the aim that the pronouncement where the end result is the majority expression of the popular will.

3. Transparency. Shall be provided all the tools necessary for the whole population and Catalan society has all the information and knowledge necessary for the exercise of the right to decide and encourage its participation in the process.

4. Dialogue. Was bet on dialogue and negotiation with the Spanish government, the European institutions and the international community as a whole.

5. Europe. Was defend and promote the founding principles of the European Union, particularly the fundamental rights of citizens, democracy, commitment to the welfare state, solidarity between the different territories of the Union and the commitment to economic progress, social and cultural.

6. Legality. Was used all existing legal frameworks to implement the strengthening of democracy and the right to choose. "

Commitment to the Welfare State

Not sure if this is a translation issue, actually I think not, so I could not help but laugh at the phrase in point number 5 promising a "commitment to the welfare state".

Mike "Mish" Shedlock



and....


http://globaleconomicanalysis.blogspot.com/2013/01/france-hidden-zombie-in-europe.html

Saturday, January 12, 2013 10:13 AM

France, the Hidden Zombie in Europe

Via Google Translate from Spanish, GurusBlog asks and answers the question Is France the zombie hidden in Europe? 

 Although still quite outside the focus of the media and investors as its risk premium relative to German bonds remains relatively low, for me, leaving aside the PIIGS, which are marked by blood and fire, France, is really the real zombie Europe, an economy that has been losing competitiveness rather quickly. Here are some data for me is the great Zombie in Europe and also on the legacy of Sarkozy Hollande mandate goes straight to the precipice.

In 1999 France sold 7% of world exports. Today only sells 3% and the figure continues to deteriorate.

In 2005 the trade balance was positive in France +0.5% of GDP today is negative -2.7% of GDP. Ie imports far exceed exports. The French economy is becoming less competitive, for example in cars and machinery equipment sales to China are seven times lower than the annual sales volume of these products from Germany.

High labor costs, which combine high wages, little flexibility to fire and high taxes. French workers are uq emenos hours work in the developed world and 86% of the contracts are fixed. 42 of every 100 euros of wage costs of a company are social charges or taxes in Germany are 34 out of 100 €, in UK 26 out of 100.

Since 2005, unit labor costs in France have not only increased, and the cost to produce a car in France have incrmeentado 17%, Germany 10%, Spain 5.8% and 2% in Ireland . In France a worker earns on average € 35.3 per hour worked, in Italy the average is 25.8 € and 22 € in UK and Spain.

The most immediate results: The results of French companies have fallen to 6.5% of GDP, a level that puts them at 60% of the European average. The reason is simple, French exports lost market share and the only way for companies to survive is to lower margins. But less margins means less money to invest in new plants or technology. So the R & D of French companies has fallen 50% in the last four years.

To top off the circle, Hollande government has decided that the state must suck more companies and limited part of the tax deductions they had. The result will be less profit and less investment.

Against this background, it seems difficult that economic growth sneaks by France in the coming years. In 2012, French GDP grew a measly 0.2%, the average increase of French GDP in the last 3 years was 1.2%, in Germany 2.7%. By 2013 it is expected that France into technical recession. Unemployment is highest in the last 14 years at a rate of 10.9% verus the German rate of 6.7% and is expected to Public Debt to GDP reached 97% in 2013, higher than the debt Spanish public.

Currently the French economy is the French state. The French state spending accounts for 57% of GDP. In the last eight years France's GDP has increased by a sad 7.3% (inflation adjusted). All growth has come through increased public spending and not the development of the private economy.

And with all the monster Papa French State refuses to stop growing. In 2011 and 2012 has presented a budget deficit of 5% of GDP, a level likely to be repeated in 2013

That is a very well presented set of statistics by Guru Huky, founder of GurusBlog. Indeed, French president Francois Hollande has made matters so much worse for France, as I have commented many times.

The remaining question at this point is how much longer France will remain a "hidden" zombie. It will be interesting to see the results (and the panic) once the bond market turns on France.

Mike "Mish" Shedlock