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Is the Euro zone must regain their health through a stronger European integration to transfer money to poorer countries or must rather be oriented towards a debt restructuring, starting in Greece?

That is in essence the dilemma presented by a senior official of the euro area to a group of European ministers, other officials and businesspersons gathered at an informal breakfast at the World Economic Forum (WEF) in Davis.

If Europe hesitates between these two options, “time is running out” by certain leaders of the Old Continent did not reveal his identity, despite the relative calm markets show few days ago.

The first, advocated by the so-called peripheral countries, major stakeholders, such as Greece, Portugal and Spain, is clearly rejected by Germany, the main provider of funds in Europe.

Berlin proposes instead respect the rules and conditions their support to drastic measures for fiscal consolidation.

As for the second alternative, many economists, who estimate that some euro zone countries, starting with Greece, have no choice because of its huge debt, advocate a debt restructuring.

This issue remains a taboo in Europe and all the rumors and press reports evoke this possibility is rejected immediately.
“This would cause a horrible trauma,” judged on Friday a senior European official. The Greek Prime Minister Georges Papandreou again rejected this alternative on Friday in Davis.

“We’re not heading toward a restructuring. We have a very clear path, a road map out of our debt problem,” said Papandreou.
Greece, recalled his first minister, has done what was necessary through a grueling set and now has the solidarity of its members.

“It is not only in Greece, even including solidarity. This concerns the conditions for stability” in Europe, said on this issue a top European.
Meanwhile, solidarity is organized around the Financial Stabilization Fund, established in 2010 and will become a permanent instrument in 2013.

However, not at this point there is consensus, as some European officials privately recommended doubling the amount and others resist.
The fund is now endowed than 440,000 million euros in loan guarantees. The Economic Affairs Commissioner, Olli Rein, confirmed on Friday in an interview with the Wall Street Journal that the borrowing capacity will be increased, but did not refer to the amount.

Both in 2011 and in 2012 the growth of emerging and developing economies remain strong and will reach 6.5%, i.e. a small slowdown compared to growth of 7% recorded last year, “the agency said.

In its latest update of the World Economic Outlook, released today, the IMF also expects “capital inflows in emerging markets remained strong, and financial terms, its solidity.”

The report also noted, “Commodity prices will remain high and inflation is rising in some emerging economies.”

It is projected that “consumer prices in these economies will increase 6% this year, i.e., an upward revision of three quarters of a percentage point from the October 2010 edition of World Economic Outlook,” according .

In this context, “in emerging economies, the most important risks are linked to warming, a rapid escalation of inflationary pressures and the possibility of a hard landing,” so “should establish or maintain a restrictive monetary policy if they are starting overheating pressures emerge. “

For its part, the advanced economies are expected to advance 2.5 percent in the period from 2011 to 1912, up a quarter of a percentage point from the perspective of the October 2010 edition.

“In advanced economies, it urges that more is to relieve the financial strain of the euro area and advancing the consolidation and reforms of the financial system and the medium-term fiscal consolidation,” the IMF said.

However, “are expected to remain intense financial strain in the periphery of the euro area, where still of concern to market participants sovereign risk and banking, the political viability of the current austerity measures, as provided, and the absence of a comprehensive solution. “

There, “comprehensive measures are needed, quick and decisive action to deal with downside risks” and “in many countries remains critical to further strengthen national policy measures to further strengthen fiscal sustainability and revive growth.

Six experts discussed in “59 seconds”, the debate program and timeliness of La 1 TVE, the Spanish economy and its future, in a special on the crisis, its effects and the reforms to be undertaken. The program introduces and directs Maria Cased Ritzier Barnacle approached from different perspectives the debate on current economic affairs in the week to approve the pension reform and has announced new measures for savings.

Why Spain doubles the European unemployment? Is it essential to the pension reform to restore investor confidence? What reforms are necessary for the economic boost and create jobs? These are some of the questions asked on the set of “59 seconds” in economics experts invited to the program.

Former PSOE minister, Jesus Caldera (commenting on the debate on the new text of the Pact of Toledo), former minister and president of the PP Foundation Ever is, Eduardo Sera, Professor of Economics at the University of Seville, Juan Torres, economist and business consultant Peter Schwartz and economic journalists Joaquin Stephanie (“Country”) and Fernando Gonzalez Urbane (Chairman of the Press Association) will be responsible for discussing the guests on this special monograph on economy.

EP The First Deputy Prime Minister and Interior Minister, Alfredo Perez Rubalcaba, announced this week would be “very important” for the Spanish economy since the government will give “a sprint” to the policy of financial sector reforms, “fudamentalmente boxes. “

During his participation in the closing of the Forum in Guadalajara ‘Employment Policy and the New Productive Model’ of the PSOE, said that the aim is that “banks and lend money to families, businesses, small and medium businesses to create wealth and employment.” “This is the objective of the reform that we will push to accelerate this week,” he added.

“We are thinking of creating wealth and jobs,” said Rubalcaba, for whom the financial system is “the heart of the economy,” so it is important that “whoever wants to invest and risk having funds available for cheap money.”

In addition, Rubalcaba has referred to the pension reform that the Government will adopt next Friday in order to “strengthen the public pension system.” In this regard, he assured that attempt to do “with political consensus”, especially with workers and employers. “With them you have to do and they’re doing,” he argued.

Rubalcaba has stressed that the Executive poses pension reform for the year 2025, “not to current pensioners.” Therefore stressed the need to explain to them that theirs are “secured.”

“These two reforms will be presented this week a package of reforms which aim is that the Spanish economy to compete in this global world,” announced the First Deputy Prime Minister.