Europe getting close to the edge ? Portugals Finance Ministers quits abruptly Monday - Schauble 's apprentice gives up austerity purging for Berlin ? And in Italy , the Vatican Bank cancer spreads as its Director and Deputy quit suddenly - a theme of the day ? Finally , in France , the Opposition calls for a referendum - Marinne Le Pen feeling her oats as the National Front Party becomes France's Syriza ( as far as capturing public opinion and appeal , not political pedigree ) in 2013 !

http://www.aljazeera.com/news/europe/2013/07/201371203447668628.html

Portugal finance minister quits

Resignation of Vitor Gaspar comes amid rising social discontent over austerity measures. Last Modified: 01 Jul 2013 21:48

A strike against austerity measures brought public transportation to a standstill last week [EPA]

Portuguese Finance Minister Vitor Gaspar, the architect of the country's reforms under its EU-IMF bailout, has resigned as the economy reels and social discontent mounts under the impact of austerity measures. Treasury Secretary Maria Luis Albuquerque, who has managed the country's privatisation efforts, is to replace Gaspar. Gaspar's resignation on Monday came as a surprise despite the country having struggled to keep to the terms of its $102bn EU-IMF bailout package and political and social opposition to austerity rising in recent months. "Repeated slippages have undermined my credibility as finance minister," Gaspar said in his resignation letter. Last week the national statistics agency reported that the country's public debt rose to 10.6 percent of economic output in the first quarter of this year as expenses rose while tax receipts fell. Portugal is supposed to squeeze the deficit down to 5.5 percent of GDP this year. A former central bank adviser, Gaspar, 52, was the principal architect of Portugal's efforts to balance its finances which has included tax hikes, plus cuts in spending and state jobs. The economy, already in recession for two years, is expected to contract by another 2.3 percent this year, under the impact of the austerity measures. Meanwhile, unemployment is expected to rise to a record 18.2 percent, while over 42 percent of youths are already out of work. Surprise departure Political opponents have criticised Gaspar for blindly implementing the recommendations of the EU, IMF and European Central Bank under the May 2011 bailout deal. Last week strikes against the austerity measures brought public transportation and flights to a standstill. Gaspar acknowledged the unemployment rate, particularly among youths, was very serious and said it needs an "effective and urgent response on the European and national levels." Gaspar also acknowledged his policies caused divisions within the government, and expressed hope his resignation would strengthen the government. "This resignation is a surprise for Portuguese society, as it is for most of the political world," said political scientist Antonio Costa Pinto. "It is the departure of the most important finance minister Portugal has had for decades," he added. http://www.zerohedge.com/node/475911 Vatican Bank Scandal Widens Following Resignations Of Director, Deputy Submitted by Tyler Durden on 07/01/2013 14:39 -0400 The story of the Vatican Bank's priest, the Italian secret service spook, and their "fiduciary" banker gripped the world's attention over the weekend when the latest iteration in the Vatican Bank's money laundering series were revealed. Now, comes the resignations: the first of many. AP reports that the Vatican Bank director, and his deputy have both resigned "following the latest developments in the broadening finance scandal." From AP: The Vatican said Monday that Paolo Cipriani and his deputy, Massimo Tulli, offered to step down "in the best interest of the institute and the Holy See." Cipriani, along with the bank's then-president, was placed under investigation by Rome prosecutors in 2010 for alleged violations of Italy's anti-money-laundering norms after financial police seized 23 million euro ($30 million) from a Vatican account at a Rome bank. Neither has been charged and the money was eventually ordered released. But the bank, known as the Institute for Religious Works, has remained under the glare of prosecutors and now Pope Francis amid fresh concerns it has been used as an offshore tax haven. We are confident that the rabbit hole on this one will stretch very deep by the time all is revealed, and the resignations will reach all the way to the very top. French Opposition Demands Referendum, Warns "What Are They Going To Do? Send In Tanks?" Submitted by Tyler Durden on 07/01/2013 14:05 -0400 France   Germany   Nationalism For the first time, France's Front National party (described by some as 1930s Social Nationalism) is running level with the two governing parties in post-war France - the Socialists and the Gaullistes. With all around 21%, the Front is rapidly gaining support as its leader, Marine Le-Pen exclaims, "Europe is just a great bluff. One side there is the immense power of sovereign peoples, and on the other side are a few technocrats." As The Telegraph reports, following a massive victory securing 46% of the vote in a recent by-election, her anti-euro sentiment is clearly gathering attention. "The euro ceases to exist the moment that France leaves, and that is our incredible strength. What are they going to do, send in tanks?" she notes, adding that should she be elected she will demand an EU referendum, "I will negotiate over the points on which there can be no compromise. If the result is inadequate, I will call for withdrawal." While her rhetoric is strong, it is clear by the gains and her purging of the more extreme members of her cantankerous father's party that she is serious as she concludes somewhat ominously, "France is not a country that can accept tutelage from Brussels." Via The Telegraph, [Front National Party leader Marine Le-Pen is] brimming with confidence after her party secured 46pc of the vote in a by-election earthquake a week ago. For the first time, the Front National is running level with the two governing parties of post-War France, Socialists and Gaullistes. All are near 21pc in national polls, though the Front alone has the wind in its sails. ... "The euro ceases to exist the moment that France leaves, and that is our incredible strength. What are they going to do, send in tanks?" ... "Europe is just a great bluff. One side there is the immense power of sovereign peoples, and on the other side are a few technocrats," ... Asked if she intends to pull France of the euro immediately, she said: "Yes, because the euro blocks all economic decisions. France is not a country that can accept tutelage from Brussels," she said. ... She said the EMU crisis is structural. North and South need different exchange rates. "The D-Mark would be rising if it were not for the euro, and that means Germany has a chronically undervalued currency. The euro is far too strong for France, and it is eating away our competitiveness," ... A recent Pew Foundation survey said French support for the EU Project has collapsed from 60pc to 40pc over the last year, and 77pc think economic integration has been damaging. ... France endured the same slow torture in the early 1930s under the Gold Standard, stoically accepting the "500 deflation decrees" of premier Pierre Laval. The dam broke in 1936 with the election of spurned outsiders, then the Leftist Front Populaire, with Communist support. The Gold Standard collapsed. ... "We have succumbed to a spirit of slavery in France. We have forgotten how to lead, and our voice is not heard any more," she said. It will be heard now.