US President Barack Obama has signed into law a compromise tax bill agreed with the Republicans, averting income tax rises for millions of Americans.
Mr Obama said the $858bn (651bn euros; £542bn) package was "real money that's going to make a real difference".
The deal also extends benefit payments for some of the longer-term unemployed for 13 months.
The bill passed over objections from House Democrats about tax breaks for wealthy Americans.
Mr Obama said compromise was needed to win Republican support. The $858bn package was passed by 277 votes to 148 in the House of Representatives.
"There probably is nobody on this floor who likes this bill," House Majority Leader Steny Hoyer, a Maryland Democrat, said.
"The judgment is, is it better than doing nothing? Some of the business groups believe it will help. I hope they're right."
Under a proposal the White House crafted with Republicans and announced last week, tax cuts enacted by President George W Bush in 2001 and 2003 and set to expire this year would be extended at all levels - including for the highest-earning Americans.
In addition, inheritance taxes affecting only the wealthiest Americans would be lowered and payroll taxes would be cut for a year in a bid to spur consumer spending.
Mr Obama and his Democratic allies had vigorously opposed allowing low tax rates for wealthy Americans to continue at a time of massive budget deficits, but Senate Republicans rejected Mr Obama's preferred approach and the president said he saw no option other than compromise.
When Mr Obama announced the deal last week he said it was the only way to avoid the damage to American families and the economy that would ensue if taxes were allowed to rise and long-term unemployment benefits were not extended.
Congressman Anthony Weiner, a liberal New York Democrat, said on Friday that Republicans had out-negotiated Mr Obama, describing them as "better poker players".
As liberals in Washington have railed against the deal, some conservatives also took up opposition.
They noted the bill adds to the US budget deficit, while also objecting that the low tax rates - which have the biggest impact on the deficit - are only temporary.
пятница, 17 декабря 2010 г.
среда, 15 декабря 2010 г.
Ukraine ex-PM Yulia Tymoshenko faces investigation
Investigators have launched an inquiry into former Ukrainian Prime Minister Yulia Tymoshenko, accusing her of misusing public funds.
Mrs Tymoshenko, now the main opposition leader, has been told not to leave the capital, Kiev.
She says she is accused of illegally diverting money meant for environmental projects into pension funds.
Mrs Tymoshenko, who lost power in March in a no-confidence vote, said the inquiry was politically motivated.
"The authorities continue to systematically terrorise the opposition without any respect for the law or constitution," she said in a statement on her website.
Kyoto connection
Yury Boichenko, a spokesman for the prosecutor's office, told AFP news agency that an inquiry had begun, but he did not go into details.
Reports say the accusations are related to an audit of her cabinet's affairs ordered by the new government, which is allied to President Viktor Yanukovych, her long-time political rival.
The auditors' report, published in October, alleged misuse of funds from the selling of carbon emission rights under the Kyoto protocol.
But Mrs Tymoshenko insisted that funds from the sales of Kyoto quotas, totalling 320m euros (£270m; $425m), had not been spent and were still at the disposal of the environment ministry.
"An expert needs one minute to see that there was no transfer of environmental funds," she said.
"Pensions were paid, but not with environmental funds."
She said investigators had ordered her to return for more questioning next Monday.
On Tuesday, former Environment Minister Georgy Filipchuk was detained over the investigation into Kyoto funds - the third minister from Mrs Tymoshenko's government to be accused of abuse of power.
Mrs Tymoshenko, now the main opposition leader, has been told not to leave the capital, Kiev.
She says she is accused of illegally diverting money meant for environmental projects into pension funds.
Mrs Tymoshenko, who lost power in March in a no-confidence vote, said the inquiry was politically motivated.
"The authorities continue to systematically terrorise the opposition without any respect for the law or constitution," she said in a statement on her website.
Kyoto connection
Yury Boichenko, a spokesman for the prosecutor's office, told AFP news agency that an inquiry had begun, but he did not go into details.
Reports say the accusations are related to an audit of her cabinet's affairs ordered by the new government, which is allied to President Viktor Yanukovych, her long-time political rival.
The auditors' report, published in October, alleged misuse of funds from the selling of carbon emission rights under the Kyoto protocol.
But Mrs Tymoshenko insisted that funds from the sales of Kyoto quotas, totalling 320m euros (£270m; $425m), had not been spent and were still at the disposal of the environment ministry.
"An expert needs one minute to see that there was no transfer of environmental funds," she said.
"Pensions were paid, but not with environmental funds."
She said investigators had ordered her to return for more questioning next Monday.
On Tuesday, former Environment Minister Georgy Filipchuk was detained over the investigation into Kyoto funds - the third minister from Mrs Tymoshenko's government to be accused of abuse of power.
Japanese business confidence down, tankan survey says
Confidence among Japanese companies has fallen for the first time in almost two years, an influential report suggests.
The strong yen and slowing exports hit corporate sentiment, according to the Bank of Japan's tankan survey.
The index is seen as a barometer to the country's economic health and plays a role in driving monetary policy.
It had climbed for six consecutive quarters as Japan began a recovery from deep recession, but fell in December.
The tankan's main index, which reflects the views of large manufacturers, fell to 5 from 8 three months ago.
That figure is the percentage of firms believing business conditions are good, minus those saying conditions are unfavourable.
About 12,000 companies were quizzed for the central bank's report.
Analysts said that the survey suggested that firms were preparing for tougher times ahead.
Stimulus measures
Japan relies heavily on exports - notably of cars and electronics - but the strong yen has hurt its economy by making goods less competitive abroad. It also eats into profits made by firms' overseas when they are brought back to Japan.
Recent data has added to worries for the Japanese economy - which is the world's third-largest.
Factories have cut production, consumer spending has fallen and the unemployment rate is at an historic high of just over 5%.
Last month, the government passed a fresh $61bn (£38.8bn) stimulus package, with an emphasis on supporting small businesses and regional economies.
And earlier this week, plans were announced to trim corporation tax by 5% to try to stimulate the economy and encourage Japanese firms not to relocate to countries with lower tax rates.
The strong yen and slowing exports hit corporate sentiment, according to the Bank of Japan's tankan survey.
The index is seen as a barometer to the country's economic health and plays a role in driving monetary policy.
It had climbed for six consecutive quarters as Japan began a recovery from deep recession, but fell in December.
The tankan's main index, which reflects the views of large manufacturers, fell to 5 from 8 three months ago.
That figure is the percentage of firms believing business conditions are good, minus those saying conditions are unfavourable.
About 12,000 companies were quizzed for the central bank's report.
Analysts said that the survey suggested that firms were preparing for tougher times ahead.
Stimulus measures
Japan relies heavily on exports - notably of cars and electronics - but the strong yen has hurt its economy by making goods less competitive abroad. It also eats into profits made by firms' overseas when they are brought back to Japan.
Recent data has added to worries for the Japanese economy - which is the world's third-largest.
Factories have cut production, consumer spending has fallen and the unemployment rate is at an historic high of just over 5%.
Last month, the government passed a fresh $61bn (£38.8bn) stimulus package, with an emphasis on supporting small businesses and regional economies.
And earlier this week, plans were announced to trim corporation tax by 5% to try to stimulate the economy and encourage Japanese firms not to relocate to countries with lower tax rates.
вторник, 14 декабря 2010 г.
British Airways raises fuel surcharge by £10
British Airways is to increase its fuel surcharge on long-haul flights for the first time in more than two years.
From Thursday, passengers will pay an extra £10 per journey sector - taking the surcharge to between £63 and £108 depending on flight length and class of travel.
BA said the rise reflected "the substantial recent increase in the price of oil".
Short-haul flights are unaffected by the changes.
Increased cost
BA last increased the fuel surcharge in June 2008. It has been reduced twice since then.
Surcharges were introduced to help airlines with the rising cost of jet fuel and have come to make up a significant part of the price of an airline ticket.
They apply to each sector of a journey, so in its full list of the fees faced, BA said the surcharge on a return flight would be an extra £20.
Separately on Tuesday, industry body the International Air Transport Association warned that higher fuel costs would be the biggest challenge for airlines in 2011.
It said that the price of jet fuel was currently 17.6% higher than a year ago and had risen by almost 5% in the past month.
The price of oil has risen steadily from about $72 a barrel in August to just over $90 currently.
IATA forecast the average oil price in 2011 would be $84 from $79 this year.
This meant fuel would make up 27% of operating costs next year, from 26% in 2010, it added
From Thursday, passengers will pay an extra £10 per journey sector - taking the surcharge to between £63 and £108 depending on flight length and class of travel.
BA said the rise reflected "the substantial recent increase in the price of oil".
Short-haul flights are unaffected by the changes.
Increased cost
BA last increased the fuel surcharge in June 2008. It has been reduced twice since then.
Surcharges were introduced to help airlines with the rising cost of jet fuel and have come to make up a significant part of the price of an airline ticket.
They apply to each sector of a journey, so in its full list of the fees faced, BA said the surcharge on a return flight would be an extra £20.
Separately on Tuesday, industry body the International Air Transport Association warned that higher fuel costs would be the biggest challenge for airlines in 2011.
It said that the price of jet fuel was currently 17.6% higher than a year ago and had risen by almost 5% in the past month.
The price of oil has risen steadily from about $72 a barrel in August to just over $90 currently.
IATA forecast the average oil price in 2011 would be $84 from $79 this year.
This meant fuel would make up 27% of operating costs next year, from 26% in 2010, it added
воскресенье, 12 декабря 2010 г.
Oil demand rises on global economic recovery, says IEA
Oil demand will be higher than expected in 2011 as global economic recovery speeds up, according to a report.
The International Energy Agency lifted its demand forecast for next year and raised its projections for consumption to 2015, citing stronger US growth.
The IEA now expects oil demand in 2011 to rise by 1.3 million barrels per day (bpd), some 260,000 bpd more than previously forecast.
Crude prices hit $90 a barrel this week, the highest for two years.
The Paris-based IEA, which advises governments on energy, said the recent price spike was most likely due to a rise in consumption in the third quarter of 2010 from the US and Europe.
It also raised its estimate for daily demand in 2010 by 2.5 million bpd, about 130,000 bpd more than previously forecast.
The IEA report said: "Although economic concerns remain skewed to the downside, not least if current high prices begin to act as a drag on growth, more immediately demand could surprise to the upside."
According to its medium-term projections, the IEA said world oil demand for 2009-2015 would grow by an average of 1.4 million bpd each year, higher than its previous forecast made in June.
Oil prices have hovered in the upper-$80s this week, and reached $90.76 a barrel on Tuesday.
The Organization of Petroleum Exporting Countries (Opec) meets on Saturday to discuss its official production quotas, although analysts believe output will remain unchanged.
However, the IEA said that Opec may come under pressure next year to boost supply.
The International Energy Agency lifted its demand forecast for next year and raised its projections for consumption to 2015, citing stronger US growth.
The IEA now expects oil demand in 2011 to rise by 1.3 million barrels per day (bpd), some 260,000 bpd more than previously forecast.
Crude prices hit $90 a barrel this week, the highest for two years.
The Paris-based IEA, which advises governments on energy, said the recent price spike was most likely due to a rise in consumption in the third quarter of 2010 from the US and Europe.
It also raised its estimate for daily demand in 2010 by 2.5 million bpd, about 130,000 bpd more than previously forecast.
The IEA report said: "Although economic concerns remain skewed to the downside, not least if current high prices begin to act as a drag on growth, more immediately demand could surprise to the upside."
According to its medium-term projections, the IEA said world oil demand for 2009-2015 would grow by an average of 1.4 million bpd each year, higher than its previous forecast made in June.
Oil prices have hovered in the upper-$80s this week, and reached $90.76 a barrel on Tuesday.
The Organization of Petroleum Exporting Countries (Opec) meets on Saturday to discuss its official production quotas, although analysts believe output will remain unchanged.
However, the IEA said that Opec may come under pressure next year to boost supply.
Germany and France rally around euro ahead of summit
French and German leaders have passionately defended the troubled single currency at talks ahead of an EU summit on the eurozone debt crisis.
President Nicolas Sarkozy said France was "deeply attached" to the euro while Germany's Chancellor Angela Merkel said if the euro failed, "Europe fails".
Meeting in the German city of Freiburg, they repeated their opposition to a proposal for joint eurozone bonds.
Mrs Merkel also opposed increasing the existing euro rescue mechanism.
In other developments connected to the summit in Freiburg:
Mr Sarkozy warmly welcomed the arrival in France of the first German soldiers to be stationed there in peacetime. The battalion was being officially installed at Illkirch-Graffenstaden, just outside Strasbourg
A high-speed rail bridge was opened between Germany and France near Strasbourg as part of an ambitious network to span the EU
'The euro is Europe'
"I'd say for us in Germany that the question of expanding the rescue mechanism is not now on the table," she said after the bilateral summit with Mr Sarkozy.
Continue reading the main story
“
Start Quote
A milestone for high-speed rail in Europe”
Peter Ramsauer
German Transport Minister
EU high-speed rail bridge opened
"Less than 10% of the rescue mechanism has been used for Ireland. It is not on the agenda."
She said that setting up a permanent mechanism for future eurozone crises would be the best way of showing the single currency was being defended.
"The EU summit [next week] should give a sign that we are defending the euro, which is why it is important to have a decision on the permanent crisis mechanism and treaty change," she told journalists.
The euro would not be allowed to fail, Mrs Merkel added, because it had "a meaning that goes beyond a mere currency".
Mr Sarkozy said: "We will defend the euro, because the euro is Europe."
EU leaders will meet in Brussels next Thursday for a two-day summit dominated by the eurozone debt crisis.
President Nicolas Sarkozy said France was "deeply attached" to the euro while Germany's Chancellor Angela Merkel said if the euro failed, "Europe fails".
Meeting in the German city of Freiburg, they repeated their opposition to a proposal for joint eurozone bonds.
Mrs Merkel also opposed increasing the existing euro rescue mechanism.
In other developments connected to the summit in Freiburg:
Mr Sarkozy warmly welcomed the arrival in France of the first German soldiers to be stationed there in peacetime. The battalion was being officially installed at Illkirch-Graffenstaden, just outside Strasbourg
A high-speed rail bridge was opened between Germany and France near Strasbourg as part of an ambitious network to span the EU
'The euro is Europe'
"I'd say for us in Germany that the question of expanding the rescue mechanism is not now on the table," she said after the bilateral summit with Mr Sarkozy.
Continue reading the main story
“
Start Quote
A milestone for high-speed rail in Europe”
Peter Ramsauer
German Transport Minister
EU high-speed rail bridge opened
"Less than 10% of the rescue mechanism has been used for Ireland. It is not on the agenda."
She said that setting up a permanent mechanism for future eurozone crises would be the best way of showing the single currency was being defended.
"The EU summit [next week] should give a sign that we are defending the euro, which is why it is important to have a decision on the permanent crisis mechanism and treaty change," she told journalists.
The euro would not be allowed to fail, Mrs Merkel added, because it had "a meaning that goes beyond a mere currency".
Mr Sarkozy said: "We will defend the euro, because the euro is Europe."
EU leaders will meet in Brussels next Thursday for a two-day summit dominated by the eurozone debt crisis.
Madoff trustee files lawsuits worth $20bn
The trustee charged with recovering funds for the victims of Bernard Madoff's multi-billion dollar fraud scheme has filed lawsuits seeking nearly $20bn (£12.6bn) in damages.
Irving Picard has charged nearly 60 people, including a key shareholder in Austria's Medici Bank.
Mr Picard accused Sonja Kohn of "masterminding an illegal scheme" to help Madoff defraud investors.
Earlier this week, Mr Picard sued HSBC bank for $9bn.
It said it would defend itself "vigorously" against the claims.
Similar suits have been filed against JP Morgan Chase and UBS banks.
'Family enrichment'
The latest string of lawsuits comes just days before the two-year mandate of the trustee expires.
Mr Picard said Ms Kohn had "exploited her privileged relationship with Madoff to feed over $9.1bn of other people's money into his Ponzi scheme" for more than 20 years.
"The illegal scheme enriched Kohn, her family and scores of other individuals and entities, including the largest banks in Austria and Italy," he said.
Madoff admitted last year defrauding thousands of investors through a Ponzi scheme, which paid out using new investors' money rather than from any profits.
The scheme, which had been running since the early 1990s, unravelled when Madoff's investors tried to withdraw about $7bn at the height of the economic downturn. Madoff could not produce the money.
Madoff is serving 150 years for the fraud.
Irving Picard has charged nearly 60 people, including a key shareholder in Austria's Medici Bank.
Mr Picard accused Sonja Kohn of "masterminding an illegal scheme" to help Madoff defraud investors.
Earlier this week, Mr Picard sued HSBC bank for $9bn.
It said it would defend itself "vigorously" against the claims.
Similar suits have been filed against JP Morgan Chase and UBS banks.
'Family enrichment'
The latest string of lawsuits comes just days before the two-year mandate of the trustee expires.
Mr Picard said Ms Kohn had "exploited her privileged relationship with Madoff to feed over $9.1bn of other people's money into his Ponzi scheme" for more than 20 years.
"The illegal scheme enriched Kohn, her family and scores of other individuals and entities, including the largest banks in Austria and Italy," he said.
Madoff admitted last year defrauding thousands of investors through a Ponzi scheme, which paid out using new investors' money rather than from any profits.
The scheme, which had been running since the early 1990s, unravelled when Madoff's investors tried to withdraw about $7bn at the height of the economic downturn. Madoff could not produce the money.
Madoff is serving 150 years for the fraud.
четверг, 9 декабря 2010 г.
Parmalat founder given 18-year jail term over fraud
The founder and former chief executive of Italian food conglomerate Parmalat has been sentenced to 18 years in jail for his role in a fraud at the firm.
Calisto Tanzi was convicted of criminal association and fraudulent bankruptcy.
A court also ordered former Parmalat executives to pay the firm 2bn euros (£2.7bn; £1.7bn) and reimburse thousands of defrauded investors.
Parmalat collapsed in 2003 with a 14bn-euro hole in its accounts in what was Europe's biggest bankruptcy.
Some 135,000 investors lost savings. Around 30,000 of them were listed as complainants in the case and are expected to share the compensation ordered by the court.
A representative of the investors told Italian television: "I believe [this sentence] is right, since these people have caused much pain and despair to many people. And it's right for them to pay for it."
The judge also sentenced the company's former financial director Fausto Tonna to 14 years in prison, while Tanzi's brother Giovanni was sentenced to 10 years, seven months.
'Debt factory'
At the time of its collapse, Parmalat was employing about 36,000 people in 30 countries.
And although the scandal only emerged in December 2003, the trial prosecutors said the group had been struggling for many years, surviving in part because of fraud on its balance sheets.
"Parmalat was the symbol of a sick system and the biggest debt factory of European capitalism," investigator Lucia Russo said during the hearing.
Tanzi, 72, had already been given a 10-year sentence for stock market manipulation, following an earlier trial, but had appealed.
His lawyer, Giampiero Biancolella, said that his client maintained his innocence and would also appeal against the latest conviction.
Parmalat was relisted on the Milan stock exchange in 2005 - without its loss-making foreign divisions.
Current Parmalat management and investors took legal action against several banks, including Bank of America and Citigroup, for their role in its collapse. Parmalat has recouped more than 2bn euros in settlements.
Calisto Tanzi was convicted of criminal association and fraudulent bankruptcy.
A court also ordered former Parmalat executives to pay the firm 2bn euros (£2.7bn; £1.7bn) and reimburse thousands of defrauded investors.
Parmalat collapsed in 2003 with a 14bn-euro hole in its accounts in what was Europe's biggest bankruptcy.
Some 135,000 investors lost savings. Around 30,000 of them were listed as complainants in the case and are expected to share the compensation ordered by the court.
A representative of the investors told Italian television: "I believe [this sentence] is right, since these people have caused much pain and despair to many people. And it's right for them to pay for it."
The judge also sentenced the company's former financial director Fausto Tonna to 14 years in prison, while Tanzi's brother Giovanni was sentenced to 10 years, seven months.
'Debt factory'
At the time of its collapse, Parmalat was employing about 36,000 people in 30 countries.
And although the scandal only emerged in December 2003, the trial prosecutors said the group had been struggling for many years, surviving in part because of fraud on its balance sheets.
"Parmalat was the symbol of a sick system and the biggest debt factory of European capitalism," investigator Lucia Russo said during the hearing.
Tanzi, 72, had already been given a 10-year sentence for stock market manipulation, following an earlier trial, but had appealed.
His lawyer, Giampiero Biancolella, said that his client maintained his innocence and would also appeal against the latest conviction.
Parmalat was relisted on the Milan stock exchange in 2005 - without its loss-making foreign divisions.
Current Parmalat management and investors took legal action against several banks, including Bank of America and Citigroup, for their role in its collapse. Parmalat has recouped more than 2bn euros in settlements.
среда, 8 декабря 2010 г.
FSA says failed bank bosses could have pay clawed back
The bosses of failed banks could face having two years' pay clawed back from them, the chairman of the Financial Services Authority (FSA) has said.
Lord Turner told the BBC's business editor, Robert Peston, that he was attracted to imposing such a sanction.
He said the rule - which is already in place in the US - would discourage banks from taking excessive risks.
His comments come after Vince Cable attacked the FSA for not releasing its report on Royal Bank of Scotland (RBS).
Mr Cable has written to Lord Turner to demand details of the investigation into what went wrong at RBS, which the government had to bail-out in October 2008. The government currently holds an 80% stake in the lender.
Lord Turner told our business editor that he was open to the idea of publishing such reports in the future, but that its study on RBS was difficult to publish because the investigation was broken down into separate parts.
Disqualification idea
The FSA was widely criticised for saying that its review of RBS had found no grounds for punishing the banks' senior directors at the time, or the company itself.
The financial watchdog's investigation of RBS was carried out by its enforcement department.
It separately looked at a number of issues, ranging from RBS's ill-timed decision to buy Dutch bank ABN in 2007, to the control mechanisms in RBS's markets division, and whether it gave investors accurate information.
Our business editor added that a reliable source told him that the complete file on RBS could only be turned into a publishable document "if a team of four or five officials were put to work full time on the project for six months".
Lord Turner further considers that the biggest lesson from the crisis at RBS and other UK banks was that banking directors should never take the kind of risks that may be appropriate in other business sectors.
In addition to the idea of forcing failed bank bosses to pay back some of their remuneration, Lord Turner argues that in some cases they could be automatically disqualified from working in the banking sector.
The FSA is further exploring whether the burden should no longer be on it to prove that bank bosses have broken laws or rules.
Instead, it wants bank directors to have to demonstrate that they have taken steps to avoid excessive risk taking.
Lord Turner told the BBC's business editor, Robert Peston, that he was attracted to imposing such a sanction.
He said the rule - which is already in place in the US - would discourage banks from taking excessive risks.
His comments come after Vince Cable attacked the FSA for not releasing its report on Royal Bank of Scotland (RBS).
Mr Cable has written to Lord Turner to demand details of the investigation into what went wrong at RBS, which the government had to bail-out in October 2008. The government currently holds an 80% stake in the lender.
Lord Turner told our business editor that he was open to the idea of publishing such reports in the future, but that its study on RBS was difficult to publish because the investigation was broken down into separate parts.
Disqualification idea
The FSA was widely criticised for saying that its review of RBS had found no grounds for punishing the banks' senior directors at the time, or the company itself.
The financial watchdog's investigation of RBS was carried out by its enforcement department.
It separately looked at a number of issues, ranging from RBS's ill-timed decision to buy Dutch bank ABN in 2007, to the control mechanisms in RBS's markets division, and whether it gave investors accurate information.
Our business editor added that a reliable source told him that the complete file on RBS could only be turned into a publishable document "if a team of four or five officials were put to work full time on the project for six months".
Lord Turner further considers that the biggest lesson from the crisis at RBS and other UK banks was that banking directors should never take the kind of risks that may be appropriate in other business sectors.
In addition to the idea of forcing failed bank bosses to pay back some of their remuneration, Lord Turner argues that in some cases they could be automatically disqualified from working in the banking sector.
The FSA is further exploring whether the burden should no longer be on it to prove that bank bosses have broken laws or rules.
Instead, it wants bank directors to have to demonstrate that they have taken steps to avoid excessive risk taking.
PayPal says US advised it to stop Wikileaks payments...
The bosses of failed banks could face having two years' pay clawed back from them, the chairman of the Financial Services Authority (FSA) has said.
Lord Turner told the BBC's business editor, Robert Peston, that he was attracted to imposing such a sanction.
He said the rule - which is already in place in the US - would discourage banks from taking excessive risks.
His comments come after Vince Cable attacked the FSA for not releasing its report on Royal Bank of Scotland (RBS).
Mr Cable has written to Lord Turner to demand details of the investigation into what went wrong at RBS, which the government had to bail-out in October 2008. The government currently holds an 80% stake in the lender.
Lord Turner told our business editor that he was open to the idea of publishing such reports in the future, but that its study on RBS was difficult to publish because the investigation was broken down into separate parts.
Disqualification idea
The FSA was widely criticised for saying that its review of RBS had found no grounds for punishing the banks' senior directors at the time, or the company itself.
It separately looked at a number of issues, ranging from RBS's ill-timed decision to buy Dutch bank ABN in 2007, to the control mechanisms in RBS's markets division, and whether it gave investors accurate information.
Our business editor added that a reliable source told him that the complete file on RBS could only be turned into a publishable document "if a team of four or five officials were put to work full time on the project for six months".
Lord Turner further considers that the biggest lesson from the crisis at RBS and other UK banks was that banking directors should never take the kind of risks that may be appropriate in other business sectors.
In addition to the idea of forcing failed bank bosses to pay back some of their remuneration, Lord Turner argues that in some cases they could be automatically disqualified from working in the banking sector.
The FSA is further exploring whether the burden should no longer be on it to prove that bank bosses have broken laws or rules.
Instead, it wants bank directors to have to demonstrate that they have taken steps to avoid excessive risk taking.
Lord Turner told the BBC's business editor, Robert Peston, that he was attracted to imposing such a sanction.
He said the rule - which is already in place in the US - would discourage banks from taking excessive risks.
His comments come after Vince Cable attacked the FSA for not releasing its report on Royal Bank of Scotland (RBS).
Mr Cable has written to Lord Turner to demand details of the investigation into what went wrong at RBS, which the government had to bail-out in October 2008. The government currently holds an 80% stake in the lender.
Lord Turner told our business editor that he was open to the idea of publishing such reports in the future, but that its study on RBS was difficult to publish because the investigation was broken down into separate parts.
Disqualification idea
The FSA was widely criticised for saying that its review of RBS had found no grounds for punishing the banks' senior directors at the time, or the company itself.
It separately looked at a number of issues, ranging from RBS's ill-timed decision to buy Dutch bank ABN in 2007, to the control mechanisms in RBS's markets division, and whether it gave investors accurate information.
Our business editor added that a reliable source told him that the complete file on RBS could only be turned into a publishable document "if a team of four or five officials were put to work full time on the project for six months".
Lord Turner further considers that the biggest lesson from the crisis at RBS and other UK banks was that banking directors should never take the kind of risks that may be appropriate in other business sectors.
In addition to the idea of forcing failed bank bosses to pay back some of their remuneration, Lord Turner argues that in some cases they could be automatically disqualified from working in the banking sector.
The FSA is further exploring whether the burden should no longer be on it to prove that bank bosses have broken laws or rules.
Instead, it wants bank directors to have to demonstrate that they have taken steps to avoid excessive risk taking.
Anonymous Mastercard attack hits payments
Web attacks on the Mastercard site have disrupted payments, the BBC has learnt.
The site is among several targeted by the Anonymous group of hackers, who have pledged to pursue firms that have withdrawn services from Wikileaks.
Mastercard, which stopped processing payments to the whistle-blowing site, said the attack had had "no impact" on people's ability to use their cards.
But the BBC has been contacted by a payment firm that said its customers had "a complete loss of service".
In particular, it said that an authentication service for online payments known as Mastercard's SecureCode, had been disrupted.
Other readers have also said that have had problems with online payments. The scale of the problems is still unclear.
Mastercard has not responded to the claims.
Earlier, Doyel Maitra of the firm, said: "Mastercard is experiencing heavy traffic on its external corporate website - Mastercard.com - but this remains accessible.
"We are working to restore normal speed of service. There is no impact whatsoever on Mastercard or Maestro cardholders' ability to use their cards for secure transactions."
False account
Anonymous, which claimed to have carried out the attack, is a loose-knit group of hacktivists, with links to the notorious message board 4chan.
It said that it has hit several targets, including the website of the prosecutors who are acting in a legal case against Wikileaks founder Julian Assange.
The firm originally said Wikileaks' account had violated its terms of services.
But the online payment firm has since said that it stopped payments following a request from the US government; a claim denied by the US State Department.
"On 27 November the State Department, the US government, basically wrote a letter saying that the Wikileaks activities were deemed illegal in the United States," PayPal's Osama Bedier told the Le Web conference in France.
"And as a result our policy group had to make the decision of suspending their account.
"It's honestly, just pretty straight forward from our perspective and there's not much more to it than that," he said.
Other firms that have distanced themselves from the site have also been hit in the recent spate of attacks including the Swiss bank, PostFinance, which closed the account of Wikileaks founder Julian Assange.
The bank said Mr Assange had provided false information when opening his account.
Swamp site
Security experts said the sites had been targeted by a so-called distributed denial-of-service attack (DDoS), which swamp a site with so many page requests that it becomes overwhelmed and drops offline.
Access to Mastercard's site is still intermittent.
Noa Bar Yosef, a senior analyst at security firm Imperva said the attacks were "very focused".
"It is recruiting people from within their own network. They are actually asking supporters to download a piece of code, the DDoSing malware, and upon a wake-up call the computer engages in the denial of service," he said.
Before the Mastercard attack, a member of Anonymous, who calls himself Coldblood, told the BBC that "multiple things" were being done to target companies that had stopped working with Wikileaks or which were perceived to have attacked the site.
"Websites that are bowing down to government pressure have become targets," he said.
"As an organisation we have always taken a strong stance on censorship and freedom of expression on the internet and come out against those who seek to destroy it by any means."
"We feel that Wikileaks has become more than just about leaking of documents, it has become a war ground, the people vs. the government," he said.
Some of the early DDoS hits failed to take sites offline, although that was not the point of the attacks, according to Coldblood.
"The idea is not to wipe them off but to give the companies a wake-up call," he said. "Companies will notice the increase in traffic and an increase in traffic means increase in costs associated with running a website."
DDoS attacks are illegal in many countries, including the UK.
Coldblood admitted that such attacks "may hurt people trying to get to these sites" but said it was "the only effective way to tell these companies that us, the people, are displeased".
Anonymous is also helping to create hundreds of mirror sites for Wikileaks, after its US domain name provider withdrew its services.
Coldblood said that the group was beginning to wind down the DDoS attacks so that it could concentrate on using "other methods which are more focused on supporting Wikileaks and making sure the Internet stays a free and open place".
The site is among several targeted by the Anonymous group of hackers, who have pledged to pursue firms that have withdrawn services from Wikileaks.
Mastercard, which stopped processing payments to the whistle-blowing site, said the attack had had "no impact" on people's ability to use their cards.
But the BBC has been contacted by a payment firm that said its customers had "a complete loss of service".
In particular, it said that an authentication service for online payments known as Mastercard's SecureCode, had been disrupted.
Other readers have also said that have had problems with online payments. The scale of the problems is still unclear.
Mastercard has not responded to the claims.
Earlier, Doyel Maitra of the firm, said: "Mastercard is experiencing heavy traffic on its external corporate website - Mastercard.com - but this remains accessible.
"We are working to restore normal speed of service. There is no impact whatsoever on Mastercard or Maestro cardholders' ability to use their cards for secure transactions."
False account
Anonymous, which claimed to have carried out the attack, is a loose-knit group of hacktivists, with links to the notorious message board 4chan.
It said that it has hit several targets, including the website of the prosecutors who are acting in a legal case against Wikileaks founder Julian Assange.
The firm originally said Wikileaks' account had violated its terms of services.
But the online payment firm has since said that it stopped payments following a request from the US government; a claim denied by the US State Department.
"On 27 November the State Department, the US government, basically wrote a letter saying that the Wikileaks activities were deemed illegal in the United States," PayPal's Osama Bedier told the Le Web conference in France.
"And as a result our policy group had to make the decision of suspending their account.
"It's honestly, just pretty straight forward from our perspective and there's not much more to it than that," he said.
Other firms that have distanced themselves from the site have also been hit in the recent spate of attacks including the Swiss bank, PostFinance, which closed the account of Wikileaks founder Julian Assange.
The bank said Mr Assange had provided false information when opening his account.
Swamp site
Security experts said the sites had been targeted by a so-called distributed denial-of-service attack (DDoS), which swamp a site with so many page requests that it becomes overwhelmed and drops offline.
Access to Mastercard's site is still intermittent.
Noa Bar Yosef, a senior analyst at security firm Imperva said the attacks were "very focused".
"It is recruiting people from within their own network. They are actually asking supporters to download a piece of code, the DDoSing malware, and upon a wake-up call the computer engages in the denial of service," he said.
Before the Mastercard attack, a member of Anonymous, who calls himself Coldblood, told the BBC that "multiple things" were being done to target companies that had stopped working with Wikileaks or which were perceived to have attacked the site.
"Websites that are bowing down to government pressure have become targets," he said.
"As an organisation we have always taken a strong stance on censorship and freedom of expression on the internet and come out against those who seek to destroy it by any means."
"We feel that Wikileaks has become more than just about leaking of documents, it has become a war ground, the people vs. the government," he said.
Some of the early DDoS hits failed to take sites offline, although that was not the point of the attacks, according to Coldblood.
"The idea is not to wipe them off but to give the companies a wake-up call," he said. "Companies will notice the increase in traffic and an increase in traffic means increase in costs associated with running a website."
DDoS attacks are illegal in many countries, including the UK.
Coldblood admitted that such attacks "may hurt people trying to get to these sites" but said it was "the only effective way to tell these companies that us, the people, are displeased".
Anonymous is also helping to create hundreds of mirror sites for Wikileaks, after its US domain name provider withdrew its services.
Coldblood said that the group was beginning to wind down the DDoS attacks so that it could concentrate on using "other methods which are more focused on supporting Wikileaks and making sure the Internet stays a free and open place".
вторник, 30 ноября 2010 г.
Eurozone unemployment rate at 12-year high
The eurozone's unemployment rate hit 10.1% in October as jobless rates rose in Italy, inched down in France and Germany, and remained stable in Spain.
The rate was the highest since July 1998, said EU agency Eurostat.
The number of people without a job rose by 80,000 in October to 15.95 million people, and by 84,000 people to 23.15 million in the 27-state European Union.
Separate figures showed that inflation in the 16-nation eurozone remained unchanged at 1.9% in November.
In the medium term, the European Central Bank wants to keep inflation below, but close to, 2%.
With inflation close to this target figure, analysts expect the bank to keep its main interest rate at 1%.
"The ECB is likely to be quite pleased to see eurozone consumer price inflation stabilising at 1.9% in November," said economist Howard Archer at Global Insight.
though this is the highest level for two years, it is bang in line with the ECB's target level and there continues to be little evidence of any significant pick up in underlying price pressures."The rise in the eurozone unemployment rate was mainly due to an increase in the jobless rate in Italy, the bloc's third-biggest economy, to 8.6% from 8.3%.
The second biggest economy, France, saw its jobless rate edge down to 9.8% from 9.9%.
Spain's unemployment rate, where the global economic crisis has taken a big toll on jobs, remained unchanged at 20.7%.
Earlier, Germany had published separate figures showing its unemployment data for November.
It said the jobless total had fallen by 14,000 to 2.931 million, from 2.945 million in October - which was the first time the total had been below three million for two years.
Germany suffered its worst post-war recession in 2009, with output contracting almost 5%.
However, Europe's biggest economy has seen a strong recovery this year thanks to strong demand for its exports.
"The labour market is profiting from good economic conditions," said German labour office head Frank-Juergen Weise in a statement.
"Unemployment is falling, employment... is rising and demand for workers is increasing."
A government scheme that encouraged firms to shift employees to part-time work rather than lay them off has helped to keep unemployment down.
The rate was the highest since July 1998, said EU agency Eurostat.
The number of people without a job rose by 80,000 in October to 15.95 million people, and by 84,000 people to 23.15 million in the 27-state European Union.
Separate figures showed that inflation in the 16-nation eurozone remained unchanged at 1.9% in November.
In the medium term, the European Central Bank wants to keep inflation below, but close to, 2%.
With inflation close to this target figure, analysts expect the bank to keep its main interest rate at 1%.
"The ECB is likely to be quite pleased to see eurozone consumer price inflation stabilising at 1.9% in November," said economist Howard Archer at Global Insight.
though this is the highest level for two years, it is bang in line with the ECB's target level and there continues to be little evidence of any significant pick up in underlying price pressures."The rise in the eurozone unemployment rate was mainly due to an increase in the jobless rate in Italy, the bloc's third-biggest economy, to 8.6% from 8.3%.
The second biggest economy, France, saw its jobless rate edge down to 9.8% from 9.9%.
Spain's unemployment rate, where the global economic crisis has taken a big toll on jobs, remained unchanged at 20.7%.
Earlier, Germany had published separate figures showing its unemployment data for November.
It said the jobless total had fallen by 14,000 to 2.931 million, from 2.945 million in October - which was the first time the total had been below three million for two years.
Germany suffered its worst post-war recession in 2009, with output contracting almost 5%.
However, Europe's biggest economy has seen a strong recovery this year thanks to strong demand for its exports.
"The labour market is profiting from good economic conditions," said German labour office head Frank-Juergen Weise in a statement.
"Unemployment is falling, employment... is rising and demand for workers is increasing."
A government scheme that encouraged firms to shift employees to part-time work rather than lay them off has helped to keep unemployment down.
EU launches antitrust probe into alleged Google abuses
The European Commission has launched an investigation into Google after other search engines complained that the firm had abused its dominant position.
The EC will examine whether the world's largest search engine penalised competing services in its results.
The probe follows complaints by firms including price comparison site Foundem and legal search engine ejustice.fr.
Google denies the allegations but said it would work with the Commission to "address any concerns".
Earlier this year the attorney general of Texas launched a similar investigation following complaints from firms including Foundem.
The objections in both cases are from competitors which allege that Google manipulates its search results.
"The European Commission has decided to open an antitrust investigation into allegations that Google has abused a dominant position in online search," the body said in a statement.
It said the action followed "complaints by search service providers about unfavourable treatment of their services in Google's unpaid and sponsored search results coupled with an alleged preferential placement of Google's own services."
The Commission's investigation does not imply any wrongdoing by Google.
"Since we started, Google we have worked hard to do the right thing by our users and our industry," said the firm in a statement.
"But there's always going to be room for improvement, and so we'll be working with the Commission to address any concerns."
Core business
Google offers two types of search result - unpaid results produced by the firm's algorithms that are displayed in the main body of the page and "ads", previously called sponsored links.
The investigation will try to determine whether the firm's method of generating unpaid results adversely affects the ranking of other firms, specifically those providing so-called vertical search services.
These are specialist search providers, and can include sites that offer price comparison, for example.
Foundem alleges that Google's algorithms "remove legitimate sites from [its] natural search results, irrespective of relevance". It also says that the firm promotes its own services over those offered by competitors.
"Google is exploiting its dominance of search in ways that stifle innovation, suppress competition, and erode consumer choice," Foundem said in its complaint filed in February 2010.
But Google argues that there are "compelling reasons" why these sites are "ranked poorly".
For example, it said, Foundem "duplicates 79% of its website content from other sites."
"We have consistently informed webmasters that our algorithms disadvantage duplicate sites," the firm said.
The Commission will also look into allegations that Google manipulated elements of its system that determine the price paid for ads from these sites.
Finally, the investigation will also probe how the company deals with advertising partners.
Advertising is the core of Google's business.
Google is alleged to impose "exclusivity obligations on advertising partners, preventing them from placing certain types of competing ads on their web sites, as well as on computer and software vendors," according to an EC statement.
In addition, the EC said it would also look into "suspected restrictions on the portability of online advertising campaign data to competing online advertising platforms."
Google says it already allows customers "to take their data with them when they switch services" and that its contracts "have never been exclusive".
The EC will examine whether the world's largest search engine penalised competing services in its results.
The probe follows complaints by firms including price comparison site Foundem and legal search engine ejustice.fr.
Google denies the allegations but said it would work with the Commission to "address any concerns".
Earlier this year the attorney general of Texas launched a similar investigation following complaints from firms including Foundem.
The objections in both cases are from competitors which allege that Google manipulates its search results.
"The European Commission has decided to open an antitrust investigation into allegations that Google has abused a dominant position in online search," the body said in a statement.
It said the action followed "complaints by search service providers about unfavourable treatment of their services in Google's unpaid and sponsored search results coupled with an alleged preferential placement of Google's own services."
The Commission's investigation does not imply any wrongdoing by Google.
"Since we started, Google we have worked hard to do the right thing by our users and our industry," said the firm in a statement.
"But there's always going to be room for improvement, and so we'll be working with the Commission to address any concerns."
Core business
Google offers two types of search result - unpaid results produced by the firm's algorithms that are displayed in the main body of the page and "ads", previously called sponsored links.
The investigation will try to determine whether the firm's method of generating unpaid results adversely affects the ranking of other firms, specifically those providing so-called vertical search services.
These are specialist search providers, and can include sites that offer price comparison, for example.
Foundem alleges that Google's algorithms "remove legitimate sites from [its] natural search results, irrespective of relevance". It also says that the firm promotes its own services over those offered by competitors.
"Google is exploiting its dominance of search in ways that stifle innovation, suppress competition, and erode consumer choice," Foundem said in its complaint filed in February 2010.
But Google argues that there are "compelling reasons" why these sites are "ranked poorly".
For example, it said, Foundem "duplicates 79% of its website content from other sites."
"We have consistently informed webmasters that our algorithms disadvantage duplicate sites," the firm said.
The Commission will also look into allegations that Google manipulated elements of its system that determine the price paid for ads from these sites.
Finally, the investigation will also probe how the company deals with advertising partners.
Advertising is the core of Google's business.
Google is alleged to impose "exclusivity obligations on advertising partners, preventing them from placing certain types of competing ads on their web sites, as well as on computer and software vendors," according to an EC statement.
In addition, the EC said it would also look into "suspected restrictions on the portability of online advertising campaign data to competing online advertising platforms."
Google says it already allows customers "to take their data with them when they switch services" and that its contracts "have never been exclusive".
понедельник, 29 ноября 2010 г.
Markets fall after Irish Republic 85bn euro bail-out
On Sunday, European ministers reached agreement over a bail-out worth about 85bn euros ($113bn; £72bn).
On Monday, the euro fell 1.4% to $1.309, a new two-month low.
And Irish, Spanish and Portuguese bond yields remained stubbornly high, indicating the market is not convinced European debt problems have gone away.
The leading European indexes all closed more than 2% lower.
The euro also fell against the pound, to 84.15p, its weakest since late September.
Greek debt
Irish Prime Minister Brian Cowen had called the 85bn euros package the "best available deal for Ireland", but opposition politicians had their doubts.
"This is a hugely disappointing result for the country. It's hard to imagine how this deal could have been much worse," said Fine Gael finance spokesman Michael Noonan.
"People are right to feel frightened, and worried about the future, when our own government has sold out the country on such lousy terms."
Also on Monday, the European Commission said the Irish Republic, which will have the biggest budget gap in the EU of 32% this year because of the cost of supporting its banking sector, will reduce the shortfall to 10.3% next year and cut it further to 9.1% in 2012.
However, for 2011 it has kept its forecast unchanged at 1.5%, down from 1.7% for 2010.
At the same time, eurozone finance ministers have opened the way to a six-year extension to 2021 in the repayment period for a European Union and International Monetary Fund loan to Greece.
It would mean an increase in the interest rate charged to Greece, but the rate would not exceed the 5.8% rate the Republic of Ireland is paying for its bail-out.
The BBC's Europe editor Gavin Hewitt said this was another sign that the reality for coun
Bank shares up
At the close of trade in London, the FTSE 100 was 2.1% down. Germany and France declined even more, with Frankfurt's Dax down by 2.2% and Paris's Cac 40 down by 2.5%.
Analysts suggested these falls, along with rising bond yields, reflected the persistent concerns in the markets about European debt levels, despite the Irish deal.
"Markets do not think this is going to draw a line under the problems," IG Index's David Jones told BBC News.
"The focus is now on Portugal and Spain. Markets are taking a view that it is a question of when, not if, they have to go for some sort of bail-out."
Portuguese and Spanish Bond yields continued to rise throughout the day, indicating those heightened concerns about their ability to be able to pay back their debts.
And the cost of insuring Portuguese and Spanish debt against default rose to a record high on Monday.
But Germany's finance minister Wolfgang Schaeuble attacked market speculation over the financial woes of Portugal as "irrational".
At the same time he praised the rescue deal for the Irish Republic.
"The speculation on the international financial markets can barely be explained rationally," he told German radio station Deutschlandfunk.
Countries are put under pressure, leading to "fear effects," he said, adding "the markets can make a lot of money in this way."
And French Finance Minister Christine Lagarde said the bail-out was "sufficient" and that "irrational" markets were not correctly pricing the sovereign debt situation in Europe.
"The amount [of the bail-out] is sufficient because that will keep Ireland afloat for three years," she told RTL radio.
'Best available deal'
France and Germany have also said the Republic of Ireland bail-out should draw a line under its debt crisis.
And they have expressed confidence in Portugal's ability to correct its finances and avoid needing outside help.
An average interest rate of 5.8% will be payable on the loans, above the 5.2% currently paid by Greece for its bail-out.
Irish Prime Minister Brian Cowen said it was the "best available deal for Ireland".
It provides "vital time and space to successfully and conclusively address the problems we've been dealing with since the financial crisis began", he said.
He also said the country would take 10bn euros immediately to boost the capital reserves of its state-backed banks.
Another 25bn would remain in reserve, earmarked for the banks.
The Irish government has also said that interest payments on all state debt will account for more than 20% of tax revenues in 2014.
The deal does not require the Republic to change its low 12.5% corporation tax.
'Appalling'
But as part of the bail-out, the Irish government will have to make an unexpected contribution of 17.5bn euros towards the 85bn euros total.
Dublin is poised to use its national pension fund and other cash reserves to achieve this.
Opposition parties Fine Gael, Labour and Sinn Fein have attacked this, and other elements, of the bail-out.
Main opposition party Fine Gael called the agreement "appalling", saying the 5.8% annual interest rate on the loan was unaffordable.
On Monday, the euro fell 1.4% to $1.309, a new two-month low.
And Irish, Spanish and Portuguese bond yields remained stubbornly high, indicating the market is not convinced European debt problems have gone away.
The leading European indexes all closed more than 2% lower.
The euro also fell against the pound, to 84.15p, its weakest since late September.
Greek debt
Irish Prime Minister Brian Cowen had called the 85bn euros package the "best available deal for Ireland", but opposition politicians had their doubts.
"This is a hugely disappointing result for the country. It's hard to imagine how this deal could have been much worse," said Fine Gael finance spokesman Michael Noonan.
"People are right to feel frightened, and worried about the future, when our own government has sold out the country on such lousy terms."
Also on Monday, the European Commission said the Irish Republic, which will have the biggest budget gap in the EU of 32% this year because of the cost of supporting its banking sector, will reduce the shortfall to 10.3% next year and cut it further to 9.1% in 2012.
However, for 2011 it has kept its forecast unchanged at 1.5%, down from 1.7% for 2010.
At the same time, eurozone finance ministers have opened the way to a six-year extension to 2021 in the repayment period for a European Union and International Monetary Fund loan to Greece.
It would mean an increase in the interest rate charged to Greece, but the rate would not exceed the 5.8% rate the Republic of Ireland is paying for its bail-out.
The BBC's Europe editor Gavin Hewitt said this was another sign that the reality for coun
Bank shares up
At the close of trade in London, the FTSE 100 was 2.1% down. Germany and France declined even more, with Frankfurt's Dax down by 2.2% and Paris's Cac 40 down by 2.5%.
Analysts suggested these falls, along with rising bond yields, reflected the persistent concerns in the markets about European debt levels, despite the Irish deal.
"Markets do not think this is going to draw a line under the problems," IG Index's David Jones told BBC News.
"The focus is now on Portugal and Spain. Markets are taking a view that it is a question of when, not if, they have to go for some sort of bail-out."
Portuguese and Spanish Bond yields continued to rise throughout the day, indicating those heightened concerns about their ability to be able to pay back their debts.
And the cost of insuring Portuguese and Spanish debt against default rose to a record high on Monday.
But Germany's finance minister Wolfgang Schaeuble attacked market speculation over the financial woes of Portugal as "irrational".
At the same time he praised the rescue deal for the Irish Republic.
"The speculation on the international financial markets can barely be explained rationally," he told German radio station Deutschlandfunk.
Countries are put under pressure, leading to "fear effects," he said, adding "the markets can make a lot of money in this way."
And French Finance Minister Christine Lagarde said the bail-out was "sufficient" and that "irrational" markets were not correctly pricing the sovereign debt situation in Europe.
"The amount [of the bail-out] is sufficient because that will keep Ireland afloat for three years," she told RTL radio.
'Best available deal'
France and Germany have also said the Republic of Ireland bail-out should draw a line under its debt crisis.
And they have expressed confidence in Portugal's ability to correct its finances and avoid needing outside help.
An average interest rate of 5.8% will be payable on the loans, above the 5.2% currently paid by Greece for its bail-out.
Irish Prime Minister Brian Cowen said it was the "best available deal for Ireland".
It provides "vital time and space to successfully and conclusively address the problems we've been dealing with since the financial crisis began", he said.
He also said the country would take 10bn euros immediately to boost the capital reserves of its state-backed banks.
Another 25bn would remain in reserve, earmarked for the banks.
The Irish government has also said that interest payments on all state debt will account for more than 20% of tax revenues in 2014.
The deal does not require the Republic to change its low 12.5% corporation tax.
'Appalling'
But as part of the bail-out, the Irish government will have to make an unexpected contribution of 17.5bn euros towards the 85bn euros total.
Dublin is poised to use its national pension fund and other cash reserves to achieve this.
Opposition parties Fine Gael, Labour and Sinn Fein have attacked this, and other elements, of the bail-out.
Main opposition party Fine Gael called the agreement "appalling", saying the 5.8% annual interest rate on the loan was unaffordable.
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