Italy’s Ambitious Plans to Recover Billions From Tax Evaders

Italian Prime Minister, Silvio Berlusconi

Italian Prime Minister, Silvio Berlusconi

Italian Prime Minister Silvio Berlusconi raised eyebrows back in 2004 when he publicly philosophized over whether Italy’s heavy taxes made tax evasion a “natural right.”

Now that Italy is staring into the abyss of the euro zone debt crisis, Mr. Berlusconi is no longer waxing philosophical.

Measures aimed at fighting tax evasion are a central plank in Rome’s efforts to balance Italy’s budget by 2013 and appease the European Central Bank, which is currently propping up the Italian bond market.

Billions in revenue will be recovered by cracking down on Italy’s infamous tax-evaders, the government argues, plugging large holes that emerged in Rome’s €45.5 billion austerity budget after the government scrapped politically unpalatable proposals, including tax increases and a pension overhaul.

“The problem is that we have an unsustainable fiscal pressure weighing on the official side of the country”, Industry Minister Paolo Romani said in a recent interview at the Ambrosetti conference in Northern Italy. “We have to get €240 billion in phantom income back into official circulation, which means €120 billion in evaded taxes,” he added.

Economy Minister Giulio Tremonti said he expects to recover from tax evasion €700 million in 2012 and €1.6 billion in 2013, by introducing prison sentences for evaders and by forcing tax payers to provide more detailed banking information with their tax returns.

Speaking at the Ambrosetti conference, Mr. Tremonti noted that only 796 people in Italy declared incomes above €1 million last year while little more than 3,300 people earned more than €500,000.

Analysts and European Union top brass question whether Italy is betting too heavily on its ability to rein in tax evaders.

Similar policies have fallen short of their revenue-boosting goals in other countries, such as Greece, because the effectiveness of anti-evasion measures are hard to predict. Measures such as Italy’s jettisoned plan to levy a 5% tax on people who earn more than €90,000 tend to deliver more reliable results, because they target salaried workers who can’t hide their income from the tax man.

The government, however, argues the fairest way to restore Italy’s fiscal health is to simply to make the chronic evaders pay up, rather than levying heavier taxes on those who have already borne the brunt of Italy’s fiscal burdens.

That rationale offers a new spin on Mr. Berlusconi’s past musings on Italian-style fiscal justice. In his 2004 address to Italy’s tax police, the billionaire media mogul declared:

“There’s a norm of natural right that says if the state asks you for a third of your hard-earned money, the request seems right and you’ll give it in exchange for state services. But if the state asks you for more, or much more, you’re being bullied. Thus, you focus on finding ways to avoid–or even evade–that feel in harmony with your inner sense of morality, that don’t make you feel guilty.”

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Swiss Banks Tax Evasion Deal To Hit UK Savers

British taxpayers who have money stashed in Swiss banks could see a significant chunk taken by the Treasury after a deal was struck between the two countries.

Existing account holders could be hit by a one-off deduction of between 19% and 34% in an attempt to settle any tax they owe.

Those who have already declared the full details of where their money is and paid their taxes should be unaffected by the plan, which could raise £5bn for Treasury coffers by 2015.

Chancellor George Osborne said the agreement heralded the end of an era when it was “easy to stash the profits of tax evasion in Switzerland“.

However, tax justice campaigner Richard Murphy told Sky News the deal set an “appalling precedent”.

“Honest taxpayers will now see that it pays – you get a reduction on your tax bill – by cheating, by hiding your money offshore,” he said.

Treasury minister David Gauke disputed the claim, saying that individuals who were being pursued by HMRC over unpaid taxes would be excluded from the deal.

“This is not one big amnesty,” he told Sky News.

George Osborne leaves 11 Downing Street on August 11

George Osborne said the wealthy must pay their fair share

 UK residents with money in Switzerland will also be affected by a new tax deducted at source, which will be 48% on investment income and 27% on gains.

The two countries have agreed to share more information and, as a gesture of good faith, Swiss banks will make an up-front payment to the UK of £384m.

The country is keen to shed its image as a safe haven for money that has not been properly declared to HM Revenue and Customs in the UK.

“Tax evasion is wrong at the best of times, but in economic circumstances like this it means that hard-pressed, law-abiding taxpayers are forced to pay even more,” Mr Osborne said.

“That is why this coalition Government made it a priority to go after those who don’t pay their fair share.

“We will be as tough on the richest who evade tax as on those who cheat on benefits.”

There is a stark choice for those who have abused Swiss banking secrecy – come forward and disclose, or run the risk of losing over a third of your historic Swiss assets.

Paul Harrison, KPMG‘s head of tax investigations

The deal is politically significant because the coalition wants to demonstrate its cuts to some benefits are being matched by equally stringent policies affecting the rich.

Describing it as an “historic” announcement, Exchequer Secretary to the Treasury David Gauke said too many people had abused Swiss banking secrecy.

“The message is clear: there is no hiding place for tax cheats,” he added.

However, experts warned wealthy UK residents may simply transfer their cash elsewhere to avoid paying up.

Chris Oates, head of Ernst and Young’s tax controversy team, predicts more people will move their assets to Liechtenstein.

“This will undoubtedly provide a much-needed boost to the UK’s finances. It is expected to generate billions of additional tax flows to the UK Exchequer,” he said.

Job Centre Plus

The coalition wants to show it is targeting rich cheats, not just benefit claimants

“But HMRC will miss an opportunity to establish whether these individual cases are involved in much wider tax evasion as it will only be based on Swiss assets.”

KPMG’s head of tax investigations, Paul Harrison, said the move was “very significant”.

“It seems there is a stark choice for those who have abused Swiss banking secrecy – come forward and disclose, or run the risk of losing over a third of your historic Swiss assets,” he explained.

“But the authorities need to take care that the innocent and the confused do not get caught up in this.

“There will be people who simply don’t know whether they have a problem and they will need help to sort their affairs out.”

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Europe’s Failure to Stem Banking Crisis Haunts Markets Again

German Logo of the ECB.

German Logo of the ECB.

Four years to the month since the global credit crisis began, European lenders remain dependent on central bank aid, plaguing markets and economies worldwide.

Emergency steps such as unlimited loans from the European Central Bank are keeping many banks in Greece, Portugal, Italy and Spain solvent and greasing the lending of others, while low interest rates and debt-buying are containing borrowing costs. Such aid is needed as concerns about slowing economic growth and sovereign debt prompt banks to curb lending, stockpile dollars and hoard cash in safe havens.

“I’m not sleeping at night,” said Charles Wyplosz, director of the Geneva-based International Center for Money and Banking Studies. “We have moved into a new phase of crisis.”

Central bankers rescued financial firms after the collapse of Lehman Brothers Holdings Inc. in 2008 by providing limitless funding of as long as a year. While they treated the symptom — a lack of ready cash — politicians, regulators and bankers in Europe have proved unable to cure the root cause: some European lenders are at growing risk of insolvency.

The tremors, the biggest since Lehman’s collapse, were triggered by European governments’ continuing inability to stop the sovereign debt crisis from spreading beyond Greece, Portugal and Ireland to question the Italy and Spain. Renewed signs of economic weakness globally and the downgrading of U.S. debt by Standard & Poor’s rekindled concern about the quality of all government debt.

Bank Stocks Tumble

The signs of distress are widespread and mounting: Banks deposited 128.7 billion euros ($186 billion) overnight with the ECB yesterday, more than three times this year’s average, rather than lend the money to other firms. Banks also borrowed 555 million euros from the Frankfurt-based ECB’s overnight marginal lending facility, up from 90 million euros the day before.

European bank stocks have sunk 20 percent this month, led by Royal Bank of Scotland Group Plc and Societe Generale SA. Edinburgh-based RBS, Britain’s biggest government-controlled lender, has tumbled 43 percent, and Paris-based Societe Generale, France’s second-largest bank, dropped 39 percent.

The extra yield investors demand to buy bank bonds instead of benchmark government debt surged to 302 basis points yesterday, or 3.02 percentage points, the highest since July 2009, data compiled by Bank of America Merrill Lynch show. The cost of insuring that debt against default surged to a record today. The Markit iTraxx Financial Index linked to senior debt of 25 European banks and insurers rose to 252 basis points, compared with 149 when Lehman collapsed.

Greek Default Concern

It was the specter of government debt turning toxic that has revived the liquidity crisis policy makers had tried to stop in 2008. As speculation grew that European banks would have to write down their holdings of more governments’ debt after a Greek default, lenders pulled funding to those banks that held the most peripheral debt. It also raised concern European governments would struggle to afford a further bail out of their banks, because both the state and the lenders had failed to reduce their borrowings since the onset of the crisis.

“The debt has been transferred from the banks to the sovereign, but it hasn’t actually been eradicated,” said Gary Greenwood, a banking analyst at Shore Capital in Liverpool. “Until the sovereigns get their balance sheets in order, then these concerns are going to remain.”

Funding markets have seized up as investors speculate that sovereign debt writedowns are inevitable. Banks in the region hold 98.2 billion euros of Greek sovereign debt, 317 billion euros of Italian government debt and about 280 billion euros of Spanish bonds, according to European Banking Authority data.

Euribor-OIS

The difference between the three-month euro interbank offered rate, or Euribor, and the overnight indexed swap rate, a measure of banks’ reluctance to lend to each other, was at 0.66 percentage point today, within 4 basis points of the widest spread since May 2009.

“The central bank is the only clearer left to settle funds between banks,” said Christoph Rieger, head of fixed-income strategy at Commerzbank AG in Frankfurt. “There is a mistrust between banks in general, between regions and with dollar providers overall.”

Overseas banks operating in the U.S. may have cut dollar holdings by as much as $300 billion in the past four weeks as European banks faced a squeeze on funding and sought dollars, Jens Nordvig, a managing director of currency research at Nomura Holdings Inc. in New York said Aug. 18. Dollar assets declined by about 38 percent to $550 billion in the period, he said.

‘More Nervous’

“Banks are becoming more nervous about being exposed to other banks as they hoard liquidity and become more suspicious of other banks’ balance sheets,” Guillaume Tiberghien, analyst at Exane BNP Paribas, wrote in a note to clients on Aug. 19.

By contrast, banks in the U.S. are “flush” with liquidity, loan loss reserves and capital, Goldman Sachs Group Inc. analyst Richard Ramsden wrote in an Aug. 6 report. Large commercial banks combined holdings of cash and securities at large have climbed to 30 percent of managed assets, up from 22 percent at the start of the U.S. financial crisis in October 2007, Ramsden wrote, citing Federal Reserve data.

The Federal Reserve, which provided as much as $1.2 trillion of loans to banks in December 2008, wound down most of its emergency programs by early 2010. One of the few exceptions was the central-bank liquidity swap lines that provide dollars to the ECB and other central banks so they can in turn auction off the dollars to banks in their own jurisdictions.

Trichet, Bernanke

Banks’ woes are again thrusting central bankers to the fore as ECB President Jean-Claude Trichet joins Fed Chairman Ben S. Bernanke and their counterparts from around the world in traveling this week to Jackson Hole, Wyoming for the Kansas City Fed’s annual policy symposium.

After increasing its benchmark rate twice this year to counter inflation, the ECB this month provided relief for banks by buying Italian and Spanish bonds for the first time, lending unlimited funds for six months, and providing one unnamed bank with dollars to satisfy the first such request since February. In doing so, it’s maintaining a role it began in August 2007 when it injected cash into markets after they began to freeze.

Coming to the rescue isn’t easy for the ECB. Its balance sheet is now 73 percent bigger than in August 2007 and its latest bond-buying opened it to accusations that by rescuing profligate nations it’s breaking a rule of the euro’s founding treaty and undermining its credibility. Policy makers are also divided over the best course of action, with Bundesbank President Jens Weidmann among those opposing the bond program.

Economic Threat

The central bank is acting in part because governments have yet to ratify a plan to extend the scope of a 440-billion euro rescue facility to allow it to buy bonds and inject capital into banks. Markets tumbled last week on concern policy makers aren’t acting fast enough.

The funding difficulties of banks was one reason cited by Morgan Stanley economists Aug. 17 for cutting their forecast for euro-area economic growth this year to 0.5 percent next year, less than half the 1.2 percent previously anticipated. They now expect the ECB to reverse this year’s rate increases, returning its benchmark to 1 percent by the end of next year.

The economic threat is greater in Europe because consumers and companies are more reliant on banks for funding than their U.S. counterparts, said Tobias Blattner, a former ECB economist now at Daiwa Capital Markets Europe in London. He says the ECB should eventually try to hand over fire-fighting duties either to governments, who would then inject capital into financial firms, or national central banks, who could provide short-term loans to lenders.

‘Uncharted Territory’

Longer-term solutions may involve the restructuring the debt of cash-strapped nations in a way that doesn’t roil bank balance sheets, potentially in lockstep with a European version of the U.S.’s Troubled Asset Relief Program.

Lena Komileva, Group-of-10 strategy head at Brown Brothers Harriman & Co. in London, said the central bank may have no option but to extend the backstop role it is playing for periphery banks to lenders elsewhere. Refusal to do so would risk a European bank default by the end of the year, she said.

“Markets are back in uncharted territory,” said Komileva. “The crisis is a whole new story now.”

Nikkei dips on profit-taking after Moody’s downgrade

The Nikkei share average edged
lower on Wednesday as investors took profits amid caution about
the long-term impact from Moody's downgrade of Japan's sovereign debt rating, 
offsetting earlier gains made on speculation of more easing by the U.S. Federal Reserve.	
Moody's Investors Service cut its rating on Japan's
government debt by one notch to Aa3 on Wednesday, blaming large
budget deficits and a buildup of debt since the 2009 global
recession. 	
While stock market investors largely shrugged off the move
after Moody's had warned in May it might cut Japan's rating,
banks came under pressure, with some analysts citing fears about
the move's impact on their holdings of Japanese government
bonds.	
One analyst also said investor sentiment could take a hit in
the short term if the Moody's move spurs other agencies to
follow suit.	
"The Moody's downgrade may trigger further downgrades of
Japan's debt by other agencies," said Takahide Kiuchi, chief
economist at Nomura Securities.	
The benchmark Nikkei was down 0.2 percent at
8,716.76 at the midday break, after rising as high as 8,825.27
earlier. The broader Topix  shed 0.2 percent to 748.67.	
On Tuesday, U.S. stocks surged 3 percent on speculation that
Fed Chairman Ben Bernanke will signal new help for the economy
when he speaks on Friday at the central bank's annual gathering
in Jackson Hole, Wyoming. 	
The meeting is widely expected to end with a controversial
decision to buy hundreds of billions of dollars in U.S.
government debt to try to foster a stronger recovery.

Traders said that while there are hopes Bernanke will hint
at some easing, foreign investors were hesitant to take large
positions before the event.	
"For the past few days, futures players are thought to be
engaged in arbitrage trading. They are trying to make profits
within a 100-point range, and today it looks like they were
selling when the index rose above 8,800," said a trader at a
Japanese brokerage.	
NOT UNEXPECTED 
Moody's had warned in May that it might downgrade Japan's
Aa2 rating due to heightened concerns about its faltering growth
prospects and a weak policy response to deal with bulging public
debt, now twice the size of its $5 trillion economy.	
"Stock market investors had somewhat expected that it could
happen because Moody's had warned it might downgrade Japan's
sovereign debt earlier," said Norihiro Fujito, senior investment
strategist at Mitsubishi UFJ Morgan Stanley Securities. 	
Unpopular Prime Minister Naoto Kan confirmed on Tuesday he
would step down as head of the ruling party within the week.    

"We have major developments on the political front, and
while most people in the market believe (former foreign minister
Seiji) Maehara is very likely to win the (ruling party
leadership) election, a swift policy response on debt problems
is unlikely to come out soon," said Fujito.	
The Topix banking subindex was among the biggest
decliners after the Moody's move, losing 0.8 percent. Sumitomo Mitsui Financial Group
fell 0.8 percent at 2,192 yen in heavy trading.

 

Mitsubishi UFJ Financial Group dropped 2.3 percent
to 334 yen. MUFG was also hit by news that the lender lost $1.8
billion from its common stock investment in Morgan Stanley
 so far, at least on paper, according to a regulatory
filing on Tuesday. 	
 But oil-related stocks outperformed, with Inpex 
rising 2.2 percent to 480,000 yen and Japan Petroleum
Exploration soaring 2.3 percent to 3,070 yen. Oil
prices rose on Tuesday on views that the Federal Reserve might
indicate fresh stimulus measures later this week, and also drew
support from fighting in Libya and disrupted Nigerian exports.

Analysis: Beyond debt woes, a wider crisis of globalization?

The crises at the heart of the international financial and political system go beyond the debt woes currently gripping the Western world and to the heart of the way the global economy has been run for over two decades.

After relying on it to deliver years of growth, lift millions from poverty, keep living standards rising and citizens happy, nation states look to have lost control of globalization.

world exchange

A television journalist looks at a display board shortly after the local market opened at the Australian Stock Exchange in Sydney, August 5, 2011.

In the short-term, that leaves policymakers looking impotent in the face of fast-moving markets and other uncontrolled and perhaps uncontrollable systems — undermining their authority and potentially helping fuel a wider backlash and social unrest.

In the longer run, there are already signs the world could repeat the mistakes of the 1930s and retreat into protectionism and political polarization. There are few obvious solutions, and some of the underlying problems have been building for a long time.

“In times of economic recession, countries tend to become isolationist and retrench from globalization,” says Celina Realuyo, assistant professor of National Security affairs at the US National Defense University in Washington DC.

“Given the increased number of stakeholders on any issue — climate change, the global financial system, cyber security — it is unclear how traditional nation states can lead on any issue, let alone build consensus globally,” she said.

The financial system, the Internet and even the supply chains for natural resources have quietly slipped beyond effective forms of state control.

These instruments of globalization have delivered huge wealth and kept economies moving with arguably greater efficiency, but can also swiftly turn on those in authority.

Just as Egyptian President Hosni Mubarak discovered that shutting down the Internet was not enough to prevent social-media fueled protest overthrowing him, the world’s most powerful nation states are confronting their helplessness in controlling markets and financial flows.

Technology and deregulation allow both information and assets to be transferred around the world faster than ever before — perhaps faster than states can possibly control, even with sophisticated laws, censorship and other controls.

The broad consensus at the 2009 London G20 meeting has already been replaced by a much uglier tone of polarization and mutual recrimination at both domestic and international levels.

Where once they would have lobbied quietly, Russia and China now angrily criticize the United States, with Russian Prime Minister Vladimir Putin describing it as an economic “parasite.”

In the United States and Europe, far right groups including the Tea Party, euro-sceptics and nationalist forces look to be rising, sometimes potentially blocking policy-making. On the left, calls grow for greater controls on unfettered markets and capital.

Over the past year, global currency valuations have become the source of new international tensions as major states accuse each other of “competitive devaluation” to boost exports.

In cyberspace, nations worry powerful computer attacks on essential systems could one day spark war, with rows over cyber spying already fuelling mutual distrust.

CENSORSHIP, CONTROLS IMPOSSIBLE?

It’s unlikely that nations can genuinely pull back from globalised systems on which they have become reliant.

“The Net sees censorship as damage and routes around it,” computer science guru John Gilmore said in 1993. In the modern, high-speed globalised system, one could say the same of attempts at financial and economic restrictions.

Many areas of the global economy have also become effectively “ungoverned space” into which a host of actors — from criminals to international firms such as Google and Goldman Sachs to countless other individuals and groups — have enthusiastically jumped.

International companies and rich individuals move money — and even entire manufacturing operations — from jurisdiction to jurisdiction to seek low wages, avoid tax, regulation and sometimes even detection. In many states, that helped fuel a growing wealth gap that is self producing new tensions.

Some argue demands to impose new controls may miss the point. In any case, many of the current crises in the system are the result of attempts to control or distort markets and economic flows.

“Ironically, the theory was always that.. the (euro) single currency would stop the unpleasant capitalists from destabilizing Europe,” says Charles Robertson, chief economist at Russian-British bank Renaissance Capital, pointing to its intention of freeing European states from never-ending local foreign exchange hassles.

“So the short answer is no, without massive capital controls, states cannot stop this.”

Arguably, the wider global financial system has similar inbuilt problems and imbalances — but after decades of being largely ignored, they look to be unraveling rapidly, by the same fast-moving markets that previously fed them.

That is a problem not just for already struggling Western countries but the emerging powerhouses some hoped would replace them as a source of global leadership.

UNSUSTAINABLE SYSTEMS UNRAVEL?

“For most of the last decade, growth and economic activity in many places has been driven by forces that were inherently unsustainable,” says Simon Derrick, head of foreign exchange at Bank of New York Mellon.

“What’s happening now is these… are coming under pressure and it’s getting to the stage where that can no longer be ignored. But none of these issues are going to be politically easy to do anything about.”

Low U.S. interest rates and taxes particularly after 9/11 and the dot-com crash fueled the asset booms that produced the credit crunch.

But they were only sustainable in part because U.S. government spending — including on expensive foreign wars — was effectively underwritten by emerging economies, particularly China, buying up their debt.

Beijing could make those purchases because it was earning billions from soaring exports underpinned by what most observers agree was an unrealistically low-pegged currency.

Those dynamics fueled record economic growth that help to maintain domestic stability. If that slows, some worry unrest could return — particularly if Chinese Internet controls and other domestic security measures prove as unable to control dissent as the admittedly less sophisticated systems of North Africa.

Critics say most attempted financial crisis fixes — bailouts and stimuli– have simply “kicked the can down the road,” providing short-term relief but little more.

“Nobody’s kicking a bigger can with more force than the Chinese government,” wrote Ian Bremmer, president of political risk consultancy Eurasia Group. “The entrenched dominance of their state-led economy has created the greatest near-term buffer to instability in the developing world… (but it is also) by far, the most unsustainable and volatile long-term.”

Berlusconi has ceded power to ECB

Silvio Berlusconi in a meeting

Image via Wikipedia

 Union demands detail on deal with ECB over bond-buying

* Opposition says Berlusconi has surrendered sovereignty

* Monti says key decisions now being taken outside Italy

ROME, Aug 8 (Reuters) – Italy’s opposition accused Prime Minister Silvio Berlusconi on Monday of surrendering sovereignty to the European Central Bank after he pledged to speed up reforms in return for help in facing a dangerous debt crisis.

The ECB agreed on Sunday to buy Italian and Spanish bonds to calm markets after a huge selloff last week sent yields climbing to record levels for the euro zone’s third and fourth largest countries, threatening to unleash an uncontrollable situation.

Berlusconi had agreed late on Friday to bring forward the government’s target of balancing the budget by a year to 2013, following pressure from the ECB.

Antonio Di Pietro, head of the opposition Italy of Values party, said Berlusconi had been “dragged by the ear by the EU and international economic institutions” to the news conference where the measures were announced.

“Berlusconi should perform a service to his country for the first time and go,” he said.

“Palazzo Merkel”, read an editorial headline in the left-leaning La Repubblica daily, referring to Berlusconi’s official residence, Palazzo Chigi, and German Chancellor Angela Merkel.

Behind the rhetoric, the criticism from opposition parties and unions reflect broad concern about the apparent deal between the ECB and the government, suggesting growing political resistance.

European sources told Reuters last week that the ECB had demanded Italy fast-track reforms and budget measures to reduce a large debt burden in return for the agreement to buy bonds.

The daily Corriere della Sera newspaper said that the ECB demands for accelerated reforms were contained in a letter President Jean-Claude Trichet and Bank of Italy Governor Mario Draghi had written to Berlusconi.

TECHNICAL GOVERNMENT

In an interview with the newspaper on Monday, Susanna Camusso, head of the CGIL, Italy’s largest union federation, demanded that Berlusconi declare “what conditions were imposed by the ECB for buying Italian bonds.”

She said the text of any communication with the ECB should be published in full “without omissions so that everyone can judge at what point we are with the crisis without the veil of government lies”.

Berlusconi and Economy Minister Giulio Tremonti have so far given very little detail on what they plan to do beyond declaring they will accelerate measures agreed in a 48 billion euro austerity package approved in parliament last month.

But there are growing questions about how much freedom of manoeuvre they really have.

Mario Monti, a former European Commissioner widely seen as a potential head of a so-called “technical government” of experts which some opposition parties want to replace Berlusconi’s struggling centre-right coalition, said the government had effectively ceded power.

In a guest editorial in Corriere della Sera at the weekend, he said a “technical government” was now effectively in place.

“Form is upheld, ministers remain in office. The primacy of politics remains intact. But the principal decisions are taken by a ‘supranational technical government’ and one could add a ‘market government’ spread between Brussels, Frankfurt, Berlin, London and New York,” he wrote.

On Saturday, Berlusconi once again ruled out calling an election before the next due date in 2013 but he has been badly damaged by recent local election and referendum losses and has struggled to control his fractious coalition.

Last week, he promised a comprehensive reform pact with unions and employers to cut red tape, break down regulatory barriers in product and service markets, reduce the costs of government and fight tax evasion.

However no firm details are expected until September.

The CGIL has made it clear that it will not accept a deal in which the bulk of budget savings come from welfare cuts and has demanded a special wealth tax to balance such measures. (Additional reporting by Francesca Piscioneri and Ian Simpson in Milan; editing by Barry Moody/Mark Heinrich)

Medvedev Shows Off Sample Coin of New World Currency At G8

Dimitri Medvedev has introduced the new sample global supranational currency that will replace sovereign currencies in the near future.

bancor

Sample Coinage of the New Supranational One World Currency

amero coin

The Amero

The Bible tells us that at the end of the age, planet earth will have a global currency that will be used to bring the citizens of the earth under the total control of the one-world government. Every world citizen will not be able to buy or sell anything without having a mark on their hand or forehead (a type of supranational identification mark). Those who refuse will be shut out of the world economic system and terminated. The Bible also tells us that those who accept the mark will be doomed spiritually. More about this subject in later blogs ….

I believe that the turmoil we are currently seeing in global economies is nothing less than a planned demolition of the world economy to usher in the planned new one world currency. Introducing the end-time Mark of the Beast and the Satanic end-time global economic system, cannot be achieved while countries have strong economies or currencies. I predict that we will see an ever-increasing wave of collapsing economies and currencies that require financial bailouts, only to be brought into the dragnet of the New World Order, and it’s tyrannical and absolute control. The Bible is very clear that this new world government, economic system and one world religion, will be inspired by Satan himself with the express purpose of destroying the people of the earth – men and women created in the image of God our Creator.