There is now a growing band of politicians, entrepreneurs and policy strategists who argue that a basic income could potentially hold the solution to some of the big problems of our time. Some of these new converts have alighted upon the basic income as an answer to our fragmenting welfare state. They point to the increasingly precarious nature of today’s labour market for those in low-paid, low-skilled work: growing wage inequality, an increasing number of part-time and temporary jobs, and rogue employers routinely getting away with exploitative practices.

This grim reality collides with an increasingly punitive welfare state. Our welfare system was originally designed as a contributory system of unemployment insurance, in which workers put in during the good times, and took out during temporary periods of unemployment. But a big chunk of welfare spending now goes on permanently supporting people in jobs that don’t pay enough to support their families. As the contributory principle has been eroded, politicians have sought to create a new sense of legitimacy by loading the system with sanctions that dock jobseeker benefits for minor transgressions.

Elderly Germans may have to keep working until the age of 69 if a Bundesbank proposal is adopted.

It says Berlin should consider raising the retirement age to that level by 2060, from around 65 at the moment.  The central bank says that otherwise the country may struggle to honour its pension commitments. It points out that the state pension system is in good financial health at present, but will come under pressure in coming decades. The Bundesbank says that as baby-boomers - those born in the post-World War Two period - retire, there will be fewer younger workers to replace them.. The retirement age for Germans is set to rise gradually to 67 by 2030.  However, the bank believes that from 2050 this increase will not be enough for the German government to keep state pensions at their target level of at least 43% of the average income.  It is therefore proposing pushing the retirement age up to 69.  "Further changes are unavoidable to secure the financial sustainability (of the state pension system)," the Bundesbank said in its monthly report.  But German government spokesman Steffen Seibert said they stood by retirement at 67.  "Retirement at 67 is a sensible and necessary measure given the demographic development in Germany. That's why we will implement it as we agreed - step by step," he added.

There is another gloomy assessment of the world's jobs market On Tuesday. The International Labour Organisation, the World Bank, and the Organisation for Economic Co-operation and Development (OECD) have produced a labour market update for the G20 employment and labour ministers' meeting in Melbourne.

It highlights "large employment gaps remain in most G20 countries", the grouping of the world's biggest developed and emerging market economies. The authors also say that "the quality of employment remains a concern" and that "the deep global financial and economic crisis and slow recovery in many G20 countries has resulted not only in higher unemployment but also in slow and fragile wage gains for G20 workers." The paper concludes: "Seven years after the onset of the global financial and economic crisis, the economic recovery may be strengthening but remains weak and fragile. The employment challenges across most G20 countries are still very sizeable both in terms of a persistently large jobs gap and low quality of many available jobs."The current growth trajectory, if unchanged, will not create enough quality jobs – giving rise to the risk that the jobs gap will remain substantial, underemployment and informal employment will rise, and sluggish growth in wages and incomes will continue to place downward pressure on consumption, living standards and global aggregate demand. Underlining these challenges is the fact that income inequality continues to widen across the G20 countries. "The G20 commitment to boost GDP by more than 2% by 2018 over and above the baseline projections is certainly a welcome step, although it will be important to ensure that this additional growth is job-rich and inclusive"....Of course the report is gloomy - and if the present way of sharing out work is to persist it can only get gloomier. Automation is creeping through every aspect of our lives, gone way beyond the industries now and the amount of work left for humans dwindles by the day.It pays businesses to get rid of people wherever they can - people are its greatest expense. They are now commodities to be plugged in then cast aside as the profit/loss account dictates. Unless someone thinks up something soon to share out what remains of human work, the whole edifice will collapse. People unemployed? No money to spend? - No one to buy the outpourings of these factories; to buy services etc. No wonder the rich are worried about the "stagnant" economy.

Unemployment is rising in Europe's two largest economies, with a shock jump in Germany and a new record high in France, according to the latest figures.

The number of unemployed people in Germany rose unexpectedly by 24,000 to 2.905 million in May. It was the biggest monthly increase since April 2009, and a long way off economist's expectations of a 15,000 decrease. Economists said the drop could partly be explained by the weather, with a loss of fewer seasonal jobs during a milder than usual winter.Despite the rise in unemployment numbers, the jobless rate was unchanged in May at 6.7%, and Schulz said Germany's labour market "remains on a strong positive trend despite the slight May setback".

Nevertheless i know a whole bunch of academics out of work after graduating. Some for years. And from all fields...economics, law, natural sciences, social sciences. Most of those people graduated with above average marks....

Others i know, even with phDs, are working on short term contracts, low paid and always in fear of not getting the follow-up contract. Meanwhile couples with children, even with both working (academics) cannot afford to build a house for their families, even if their parents did that with only one working and the other stay-at-home. German Jobwunder? Rather for the capital-side...If Juncker gets appointed that number will sky rocket, his plan for the United States of Europe, starve them into submission. The EU learnt nothing form the recent vote they are already holding out the begging bowl for another 3.5 billion to plug a hole in their finances.

An Opera in Twenty Farts -- We have entered the period of fart diplomacy in the episode that will become known as Obama's Syrian Farce. We all know that Freedman's account is patently untrue. Putin discussed this possibility with Obama at the G20, and Kerry, Muppet as he is, probably recalled something in his fried brain and blurted it out. The idea that the world has been saved by a blunder, is the disney version of the Syrian crisis that obviously appeals to hacks like Freedland. Why that is so, I will leave you, dear colleague, to ponder.

Fart diplomacy is that tactic used by Great World Leaders when they have been caught with their pants down and their underwear is not, shall we say, what their mothers would have wished. Its aim is to drown out the obvious judgments of onlookers, such as "You've been had, you bunch of gits !", by making loud rude noises and stinking up the air. "A little hair on my pinkie can destroy the whole of your army with its arm tied behind its back ! God bless Mrka"

In reality God will do no such thing. Swayed between amusement and disgust, God is wondering whether to perhaps inflict a plague of piles on Kerry and Obama, as they swagger and posture like drunk children in a sandbox.

"Well., sure, this may work, but I am highly skeptical," says Grand Poopie Obama, looking suitably skeptical. "See, there's a lot of things that will have to be got right, and that will take time, and we dont have time, God Bless Mrka !"

"Assad is famous for his lies,"shouts Kerry, and then "Shit, what bit me in my ass ??!! God is that you biting me in my ass ?!! What did I do ? Told lies ? OK, but hell, that was for the sake of Mrka !"

"Listen up, Assad, we are going to press on with getting permission to blow Syrian babies to smithereens, regardless of what You and Mr Pootin have come up with. So dont think you're off the hook, Adolph, We've got your number."

In Russia in the UN and in Syria, well intentioned diplomats are scuttling to try to prevent the destruction by US tomahawks of thousands of mothers and children, o, yes, and men too. Obaqmna never mentions men who have been murdered. You've noticed that too ? Its not in the script. And while these earnest. efforts are afoot, we get loud farting trombone sounds from the Rose Garden of the White House. "This is too little too late. Assad's slaughter of his people must stop. Now ! "

Question from meek embedded reporter looking remarkably like Jonathan Freedland, but that's just a coincidence (promise): "Mr Obama, do you have any messages for the rebels who continue to slaughter Syrians in huge numbers ?"

The Great Poobear puts on suitable furrowed brow intended to display "deep thought: " The Syrian people have had enough misery. The world is watching. I cant stand idly by. This too must cease. Assad has killed more Syrians than Adolf Hitler ! Hiccup. Burp"

And so it will go on for several days, this period of fart diplomacy, during which the Leader of the Free World will discover a way of pulling up his pants so he can strut, jaw out like Mussolini, to show the Mrkn people that they can be proud to be Mrkn,.... again. Kerry ? Listen, Ive got a tip for you. Give it a few months and then go around the trash cans in Farrgut Park across the road form the White House (that Bastion of World Freedom and Democracy), and you may find Kerry in a can among the Dr Pepper bottles.

Smoke and smoke....

Every day I read in the Greek press about the bills that have not been paid by the government (doctors, pharmacists and other suppliers of services and goods. Their deficit for the first 7 months of this year is some 13bn. They are still predicting a shortfall of 1bn by year end - the difference made up by increased tax payments in 'second half' (it is 5 months - another Greek accounting error?) Dream on!  This is without accounting unpaid bills. For which they announced nearly 2 weeks ago that the government were only going to pay 'salaries and pensions' (so not doctors and pharmacists who are not employed).  There are differing reports about when the Troika will report - end Sept earliest, maybe Oct. Every day Greece is bleeding actual cash, apart from the increasing liabilities that it is incurring due to non-payment.  We all know that Greece has a Governor - Horst Rechengach , however as this subject is taboo, i'l say : even a Troika report, which one assumes will be based on a certain date snapshot, will be out of date before the print is dry.Hopefully they will include a cashflow prediction for the future months (negative?).  Never mind what Junker said about wanting Greece to stay in the EZ and waiting for the Troika report (I am sure he knows what it will say) instead concentrate on his comments on 'credibility' - he is a Banker and when bankers doubt credibility be "Very Afraid'

The ECB declined comment on Friday

"Private creditors have already suffered big writedowns on their Greek bonds under a second bailout for Athens sealed in February, but this was not enough to put the country back on the path to solvency and a further restructuring is on the cards. The latest aim is to reduce Greece's debts by a further €70bn to €100bn, several senior eurozone officials familiar with the discussions told Reuters, cutting its debts to a more manageable 100pc of annual economic output. This would require the European Central Bank and national central banks to take losses on their holdings of Greek government bonds, and could also involve national governments also accepting losses. The favoured option is for the ECB and national central banks to carry the cost, but that could mean that some banks and the ECB itself having to be recapitalized, the officials said. The ECB declined comment on Friday".

Spain is Bust. Italy is pretty much bust and if the truth be told is bust. Ditto Portugal.. Greece is just the weakest and as such fell first.
You have to let people including Governments fail if they are incompetently run. Let them go to the wall and any bank that was dumb enough to buy debt from these States.

Romania has been rocked by political turmoil after parliament suspended President Traian Basescu from office, paving the way for a referendum on his future later this month. The procedure comes despite European Union and U.S. concerns over the status of democracy in the former communist nation.  Basescu was suspended from his job Saturday after 256 legislators voted in favor of a procedure that could lead to him being permanently removed from office. Only 114 lawmakers were against the action. Senate Speaker Crin Antonescu was appointed interim president.  Reacting to the vote, Basescu said he will now prepare for the July 29 referendum when Romanians will get a final say on his fate.  Basescu survived a similar vote in 2007. Analysts say he faces a tougher challenge this time, in part because of his declining popularity in a period of economic crisis in this nation of 19 million people.  Additionally, a recently adopted law requires only a simple majority of votes to push him out. Before, the requirements were more demanding. Romania's ruling center-left coalition says Basescu should leave office because he overstepped his authority and interfered in the government's work since his re-election in 2009.  In one of the latest stand-offs, a public quarrel emerged between the president and Prime Minister Victor Ponta over who should represent the country at a European Union summit. The Basescu has also been accused of alleged harsh remarks towards gypsies, also known as Roma, and disabled people, though the president has denied wrongdoing.  He told parliament before the suspension vote, the real reasons why the prime minister wants him to go is to increase his own power. Unlike in some European nations, Romania's president is chosen by popular vote and is in charge of foreign policy, the powerful intelligence services and the country’s defense policies.  The latest moves have prompted the U.S. and the EU to express worries over Romania's democratic credentials. The U.S. State Department said in a statement that it was concerned that developments in the country “threaten democratic checks and balances."  The EU's executive body, the European Commission, has also urged the government not to reduce the effectiveness of democratic principles and institutions, as the explained by commission spokesman Olivier Bailly.  "The rule of law, the democratic checks and balances and the independence of the judiciary are cornerstones of European democracy and indispensable for mutual trust within the European Union. Government policy and political action must respect these principles and values."
Bailly added that the latest developments threaten progress that was made in these areas since Romania joined the EU in 2007.  In addition to Basescu, Prime Minister Ponta has also come under opposition pressure to resign after an academic panel concluded that he copied a significant part of his doctoral thesis from other authors without proper attribution. Ponta, who calls the charges politically motivated, says they have been orchestrated by an adviser to Basescu.

Like they say, it not who votes that counts, it's who counts the votes.

Whoever becomes the next French president will have no state of grace, leading a country crippled by public debt and in economic crisis, with unemployment nudging a record 10%, a gaping trade-deficit, stuttering growth and declining industry. France's public debt is so high that interest repayments alone account for the second highest state expenditure after education. The rating agency Standard & Poor's this year downgraded France's triple-A credit rating, citing in part its over-high state spending for straining public finances. Both Hollande, a moderate from the centre ground of the Socialist party, and Sarkozy have promised to balance the books – France hasn't had a balanced budget for more than 30 years.

Hollande's manifesto is based on scrapping Sarkozy's tax-breaks for the rich and putting up taxes for high earners to finance what he deems essential spending, including the creation of 60,000 posts in France's under-performing school system. He has pledged to keep the public deficit capped but for his delicate balancing-act to work, he needs a swift return to growth in France, despite economists warning of over-optimistic official growth forecasts that need to be trimmed.

Hollande beat Sarkozy by about half a million votes in the first round of voting on 22 April.  The first round turnout of around 80% was higher than expected and is being closely watched again, with polls suggesting Sarkozy's best chance of an upset comes from an even greater voter turnout on Sunday.

Quiet day - The FTSE 100 rose 1.5pc, or 84.44 to 5,696.7 after investors were reassured by the ratings agency that Europe's second largest economy was not at front-line risk of contagion from the ongoing eurozone debt crisis. "In the absence of important shocks that could be linked to a strong worsening of the situation in the eurozone, Fitch does not foresee modifying its negative outlook [on France] before 2013," a spokesman said. The CAC 40 in Paris closed up 2.66pc at 3,210.79, while the DAX in Frankfurt rose 2.42pc to 6,162.98. Fitch affirmed France's top-tier credit rating in December but revised its long-term outlook to "negative" from "stable", citing the intensification of the eurozone debt crisis. Italy remained the biggest worry among the embattled eurozone countries, Fitch said, and warned it could see its credit rating cut this month.

Staple foods became 20 to 40% more expensive between July 2010 and February 2011, shows the Z.F. index calculated based on prices in Bucharest hypermarkets. ZF selected 15 products whose price it has been following since 2008, once every six months, at the same Bucharest hypermarkets, Carrefour Orhideea and Real Afi Cotroceni. These products were chosen because they are most often to be found in Romanians' purchase basket. (Z.F.)

In the calculation of this index, ZF chose one brand from each category of products, a brand that is well positioned in terms of market share, produced by one of the top-five players in the category. Therefore, one kilo of Băneasa flour costs 2.8 lei in February, 41.4% more than in July 2010. 1 Kilo of Lemarco sugar now costs 4.295 lei, compared with 3.28 lei, an increase of 30.9%. Similarly, the price of Floriol vegetable oil (1 litre) rose over 35%, from 5.11 lei to 6.91 lei. Data from the National Statistics Institute (INS) point to a 10.2% price increase for flour in the July 2010 - January 2011 period. Similarly, the increase amounted to 8.1% for sugar. The only products whose prices fell, of those analysed by ZF, were beer, mineral water, apples, with the decline amounting to 6.1%, 0.1% and 12.4% respectively.

Real estate developers scheduled for delivery in 2011 at least eight retail projects in Romania totaling a surface of over 230,000 square meters, 17% more than the total area of projects completed in 2009, according to property analysts.

In 2009, developers completed retail projects totaling 195,000 sqm, according to CB Richard Ellis (CBRE) data.

Oradea Shopping City, Uvertura City Mall Botosani, Vitan Outlet Bucharest, Policolor Shopping Center Bucharest and Electroputere Shopping City Craiova are other projects scheduled for completion in 2011. Read more on http://www.mediafax.biz/. (Z.F.)euro, criza datoriilor de stat, euroscepticismul, monede nationale, renuntarea la euro, salvare euro, zona euro