The text states that the exchange, a key component of the plan to reduce government debt developed by the European Union and the International Monetary Fund (IMF), would be to exchange 200 billion of existing bonds against 70 billion euros of new shares and 30 billion euros of cash payments to creditors who will accept it.

It is therefore equivalent to the creditors to agree a 50% loss on their receivables.

Without trade, the deficit would reach 6.7% of gross domestic product next year against 9.0% this year.

"After a history of steady growth, the evolution of public debt will now be reversed," he told MEPs Finance Minister Evangelos Venizelos, in the budget.

"Now the path is a reduction of public debt to alleviate the burden on the shoulders of the Greeks."

The draft budget for 2012 will be initially discussed in committee next week, the plenary vote is scheduled on December 7.

The Nikkei gained 89.23 points (1.05%) to 8,603.70 and the Topix has taken 6.72 points (0.92%) to 735.85.

Italy must award five-year bonds, a first test for the new Chairman Mario Monti.

The market has not reacted much to the publication before the opening of Japan's GDP for the quarter July to September.

The automaker, which holds a 15% economic interest in EADS and 22.5% of the voting rights, is seeking a buyer for part of its participation.

In return for the lifting of the objections of the FDP, the German state will sell stakes in other companies such as Deutsche Post and Deutsche Telekom, it was said.

The reversal of the Liberal Democrats FDP, the CDU partner of Angela Merkel, will allow the state development bank KfW to buy half of the 15% held by Daimler in the European aerospace consortium.

A government source said that the automaker would retain the remaining 7.5% beyond 2013.

She said the issue of price has not yet been addressed and has no agreement is expected before July.

No one at Daimler, EADS or KfW has agreed to comment on the report.

EADS is governed by a shareholders led by the French Lagardère and Daimler.

The Greek bank, purchased by his French counterpart in 2004, lost 617.8 million euros in the first nine months of the year after losing 304.1 million euros the previous year.

"The deteriorating economic environment has had a negative effect on the quality of our loan portfolio and, therefore, our provisions amounted to 377.2 million euros over the period," said the bank.

Geniki also reported a depreciation of 230.1 million euros in its portfolio of Greek government bonds.

The Greek economy is expected to contract 5.5% this year and the country will register a new recession in 2012, due to stringent fiscal austerity measures taken by the government, while unemployment is 16.3% of the labor force.

The loan portfolio of the Greek bank fell by 14% to 3.01 billion euros.

The participation of the General Society in the capital of Geniki increased from 53.9% to 88.4% in November following an appeal for 340 million euros to strengthen the equity of the bank.

The Slovak Parliament approved on Thursday the strengthening of the European Financial Stability Fund (EFSF) in a second vote, allowing the entry into force of this instrument. Slovakia, which was the last of the 17 member countries of the euro area to vote, had a first vote Tuesday rejected the strengthening of the EFSF.

Bratislava's contribution is 7.7 billion euros in guarantees from the state.Of the total 147 deputies present, 114 voted in favor of the safety net for countries in financial difficulties, including Greece heavily in debt. Thirty voted against, three abstained. The first vote, negative, Tuesday evening, due to the refusal of a small party in the coalition to approve the building of EFSF, caused the collapse of the coalition and the fall of the government of Prime Minister Iveta Radicova who had of this vote a matter of trust for his cabinet.

After the failure of this first vote, the opposition Social Democratic Party (Smer-SD) reached an agreement with three parties in the coalition government, totaling 119 seats out of 150, to approve, in exchange for early elections strengthening the EFSF in a second vote. Thursday, Parliament gave the green light to the early elections March 10, 2012.

Without a unanimous agreement of the 17 member countries of the euro area in its building, the EFSF might be maintained in its old form, with limited capacity for action to help states avoid bankruptcy. Worried, the EU asked Wednesday to Slovakia to promptly approve the strengthening of EFSF, emphasizing its importance "crucial" for the euro area.

In Paris, around 9:25, the CAC 40 index lost 1.03% to 3121.16 points, while the Eurostoxx 50 yields 0.91% and 0.91% Eurofirst 300.

The results below expectations Alcoa, attributed to a slowdown in growth, also weighed, including the metal values.

"The impact (of the 'no' Slovak) seems limited, since operators only imagine evil Slovakia could jeopardize such a process aid to Europe, especially as the Troika suggested that the next tranche financial aid to Greece would probably be released soon, "said Saxo Bank in a note.

The euro is stable against the dollar, halting a rally that was motivated by the hope that the Europeans take the necessary measures to stem the debt crisis.The European currency is trading at 1.3647 / 1.3647 dollars against 49 the previous day in the afternoon.

A barrel of Brent is also stable at 110.75 dollars, after five sessions in the green, OPEC has reduced its forecast for growth in global demand.

The financial and cyclical stocks are once again at the forefront of the correction, with a decline of 1.5% of commodity indexes and automotive and 1.2% of the index of bank stocks in Europe .

Activity in the manufacturing industry in France has again contracted in September, with a decline in new orders, production and employment, according to the final estimate of the PMI released Monday by the company Markit. The manufacturing PMI fell back 49.1 points and 48.2 points in August, its lowest level since July 2009. The decline is less marked announced at a first estimate published on Sept. 22. An index below 50 points signals a contraction in activity.

"The debt crisis of the Eurozone and the deteriorating economic conditions have led to a sharp decline in demand," notes economist Jack Kennedy Markit, said in a statement."The manufacturing sector may well have slowed the quarterly GDP growth, the survey data suggesting a decline in industrial production for the entire third quarter."

The decline in the PMI reflected a sharp decline in the volume of new orders, domestic and export markets, sales declined for the third consecutive month and decreased production. "As a result of the current weakness of the sector, the French manufacturers are downsizing for the first time in a year," said Jack Kennedy. The PMI, compiled from a survey of companies operating in France, is a leading indicator of economic conditions, considered reliable by analysts.

Nicolas Sarkozy has urged its partners in the G20 to set up a "social regulation" world which he defined as a "base for minimum protection in all countries" to the G20 Ministers of Labour held Monday, September 26 in Paris.Labour Ministers of the G20 and international institutions met for two days to put social issues such as employment or social protection in the heart of the G20, even though two international organizations, the International Labour Organisation ( ILO) and the Organisation for Cooperation and Development (OECD) fear a serious deterioration in the labor market.

Speaking on the first day of the meeting, Nicolas Sarkozy said that "the crisis has caused a devastating effect on the labor market, 30 million unemployed in less than two years." "The G20 will retain its legitimacy if it can demonstrate its effectiveness in promoting growth and employment," he said. "A financial regulation, economic regulation, add social regulation," the head of state.The G20 meeting of Ministers of Labour is in line with the G20 summit in Pittsburgh in 2009 had called for a "model for global growth more balanced" to avoid another global crisis and promised to promote employment.

The first work session Monday, behind closed doors like the rest of the work was devoted to employment, based on a joint analysis of the OECD and ILO, very alarming for employment in the years come. For both organizations, the global economic downturn could lead to a massive shortage of jobs in the G20 countries in 2012. "We need to stem the slowdown in employment growth and fill the jobs lost. Now is the time to act," warned in a statement the Director General of the International Labour Organization (ILO), Juan Somavia.

40 million jobs could be missed in 2012

"It would have employment grow by 1.3% a year to regain its pre-crisis level by 2015. This would get around 20 million jobs per year in the G20 countries and absorb new entrants, "said the press in Paris at the OECD Employment expert Stefano Scarpetta. "But with the slowdown in economic growth, employment growth, only 1% in recent years, may slow to 0.8% and then it would be 40 million jobs that fail by the end of 2012" , added the economist. He expressed the hope that the upcoming G20 summit leads to "a strong commitment of the G20 countries for employment."

The summit to be held on November 3 and 4 in Cannes (Alpes-Maritimes), after a series of preparatory ministerial meetings as the "G20 social".It brings together the Ministers of Labour and Social Affairs of the 19 largest economies in the world and representatives of the European Commission and international institutions (World Bank, IMF …). Six other countries were invited: Spain, the United Arab Emirates, which govern the Gulf Cooperation Council, Ethiopia, the head of the New Partnership for Africa's Development (Nepad), Equatorial Guinea, on behalf of the African Union, Poland, current President of the European Union, and Singapore.

Divisions within the euro area and the lack of concrete progress on the issue have plunged Greece into turmoil Monday and world stock markets, maddened by the scenario of a default of Athens. A "delay" of continuing the privatization program in Greece can lead the country to "default" on its debt, warned Monday the Permanent Representative International Monetary Fund (IMF) in Greece, Bob Traa. And the meeting of European finance ministers on Friday and Saturday in Poland ended in failure.Divided, they postponed any decision on October the payment of a further tranche of 8 billion euros to Greece, which desperately needs the money to avoid bankruptcy.

"Once again, hopes for new policy initiatives to resolve the debt crisis in the eurozone were violently showered," lamented Jane Foley, analyst at Rabobank. Now, "the market is betting on a 98% default of Greece," said Phil Flynn, of PFG Best Research. The reaction of the stock exchanges Monday was unequivocal. At the close, Paris fell 3.00%, 3.17% of Milan, Frankfurt 2.83%, 2.03% in London.

European indices, once again, been sealed by the banks that would be the first victims of failing Greek. The Deutsche Bank dropped 4.54% and 4.11% Italian Intesa Sanpaolo. In France, Societe Generale won 6.70% and 5.48% of BNP Paribas.In New York, the Dow Jones lost 1.57% to 1600 GMT. The announcement by U.S. President Barack Obama plan to further reduce the deficit of 3.000 billion, financed half by an increase in taxes for the rich, did not produce any relief.

Teleconference postponed

Very worried, the markets awaited the outcome of a conference between the Greek government and the Troika representing the country's creditors, namely the European Commisson, the European Central Bank (ECB) and the IMF. First scheduled for mid-day, the conference was delayed about 16h, after the close of European stock. "The quarterly audit of the troika is decisive. If the IMF decides to exit the process, the risk of default of the country will be very large," said Cyril Regnat, an analyst at Natixis.

A default of Greece "is not a working hypothesis" in the euro area, however, assured the French minister of Finance Baroin. Greece must at all costs to demonstrate that it meets its budget commitments, the only way to obtain payment of the next round of international loans. "This is not a working hypothesis, it is not our strategy," he said on the sidelines of a meeting with his counterparts from the African franc zone in Paris. "Our strategy (…) is to operationalize the agreement of July 21" adopted by the euro area to come again in aid to Greece and strengthen the European bailout fund, he added. The Permanent Representative of IMF in Athens, Mr. Traa said Monday morning that additional budgetary savings will be "necessary".

"Privatization has been delayed from the program because politicians can not agree on how to proceed," he said in reference to the privatization program of 50 billion euros by 2015 that Greece is committed. "If you wait (…) the country will go to default," he warned.

"Conditions uncontrollable and painful"

Taking the worst estimates of Athens, he returned the country's return to growth in 2013, anticipating a recession of -5.5% in 2011, and -2.5% in 2012. Recognizing the gravity of the situation, the Greek Finance Minister Evangelos Venizelos said that the week opened "is a very difficult week for the country, for the euro area and for me."Athens announced on Sunday that it would conduct new cost-cutting measures in 2012 to reduce the public sector.

"We must now take historical decisions, otherwise we will have to take soon in uncontrollable and painful conditions," he said, referring to the threat of insolvency of the country. The minister made it a priority "respect for the objective for 2011," involving corrective action of 1.8 billion euros, to enable the country to continue to meet its commitments, including "a primary budget surplus in 2012" . Mr. Venizelos nevertheless felt that Athens should not be used as "scapegoats" facing the "lack of competence in managing the debt crisis" in the eurozone.

As a result of concerns around Greece, the euro Monday accentuated its decline against the dollar: towards 1600 GMT, the euro bought 1.3633 dollars against 1.3797 dollars on Friday night. The price of an ounce of gold fell 3%, investors withdrawing from the yellow metal to cover losses in other markets.