raise United States production of automotive exports to reverse the adverse consequences of a stronger yen

According to Reuters, Honda CEO takanobu Ito wants to raise United States production of automotive exports to reverse the adverse consequences of a stronger yen.

Takanobu Ito, Honda now in United States production car only about 6-7% exports, should increase the proportion of export if demand for space vehicles is strong enough in other areas, increasing the ratio of export to 20% are also conceivable.

High Yen boosts Japan commodity export prices. Takanobu Ito said, are unlikely to increase Japan Auto exports of domestic factories, to the local community as a major export platforms in the past, is not natural.

Honda is Japan's third largest automaker, currently United States export accord, Pilot, MDX, Odyssey 5, the main models, the main export market for Africa, the Middle East and Russia. Honda last year from the United States exporting cars to 55,000 units. Company officials said, through the expansion of Canada and the United States, and Mexico factory capacity, Honda automobile exports originating in North American plants is expected to increase to 200,000 cars a year.

Takanobu 2009 served as Honda's CEO since the yen-dollar exchange rate improves 15%, small cars in Japan in the auto market from a previous growth of 40% per cent share.

Global deflation would be trend

United States General elections on hold "fiscal cliff" problem became urgent after the aobamachenggong for a second term, has entered the countdown. Democratic Republican party "fiscal cliff" debate will continue until December, or even a longer period of time. If the two parties did not reach agreement before the end, United States Government will jump "fiscal cliff", this "jumping cliffs" will have two effects:

For one thing, before I leave all (Bush began from childhood) of a variety of tax incentives, equal to the substantial tax us $ 400 billion (almost every American tax will tax increases) and was forced to cut a deficit of $ 207 billion, amounted to 607 billion dollars, representing United States GDP about 4%, meaning United States economic growth will reduce 4%. This undoubtedly had a slight improvement of United States economic poured a bucket of cold water. In other words, it seems worse, United States economic recession again immediately!

To avoid this situation, Obama invited Congress, business and labour leaders to talks. Because Obama has no need for re-election without scruples, will begin to take hard line. Most frightening predictions is, suppose Obama and members of Congress total failure of the negotiations, the two sides failed to reach an agreement prior to the January 1 next year and jump off the financial cliff.

But I think the possibility is very small, almost zero! from recent years United States analysis of situations is not difficult to see, even play with fire to the last second, United States Government into a halt State will not occur.

At the same time, United States debt, budget deficits, the Government has recorded more than $ 1 trillion for four consecutive years, the debt exceeds the GDP of 70%. United States Government short on the need to reduce budget deficits of $ 1 trillion, more need for long-term ongoing deficit reduction. Treasury Secretary Timothy Geithner said that in order to reduce the budget deficit, there is a need for the wealthiest Americans (earning more than $ 250,000) raising the personal income tax rate, as President Barack Obama "was not prepared to extend the high-income tax cuts", the key to improving the Capital Gain (capital gains) tax rates, because it is the largest of many rich sources of income. Only increase the taxes of the wealthy, to eliminate the financial risks of the cliff of reliable sources, can be true for the majority of middle-class tax cuts.

If you do not properly address this issue, or a further increase United States federal debt ceiling, that United States Treasuries have inevitably to be demoted, United States ' borrowing costs will rise, snowball of debt will snowball, will be more difficult to extricate themselves......

United States economy do? Really simple and simple, best solution increasing revenue and cutting expenditure taking place while the throttle (cuts) will rise in the unemployment rate in the short term, but short than long pain pain, to solve the problem, there must be a strong man the determination and courage of scraping the bone healing broken wrist!

However, the United States Government, this step is difficult. Now let United States Government to "cut expenditure" is unlikely, would cause steep rise in unemployment, which is incompatible with the idea of Obama; and continue to borrow (that is, start the printing presses) also appears to end unsustainable. Finally, therefore, seems to be left open--taxing the rich--this trick, only to be discussed by the two parties over how to tax the rich and increase problems.

In the four or five years because of the financial crisis, United States total "evaporates" $ 33 trillion of wealth, real estate evaporated $ 6 trillion or 7 trillion alone, 2% per cent of the wealth of the wealthy across the United States, over the past few years has increased by $ 2 trillion or 3 trillion. Apparently in addition to the evaporation of wealth (that is, the original bubble burst), are actually middle-class transfer of wealth into the pockets of the rich ... ... Do not fall into the "fiscal cliff", the poor, the middle class and the rich with tax increases, are unreasonable, and taxing the rich is reasonable.

However, the address "fiscal cliff" longer time drags on, investors and senior management the more anxiety in the market. United States stocks fell after the election, and continued depressed state, are investors watching the wind, and traders fear the political stalemate will prevail, as Washington the past two years. Enterprise Manager waiting for a clear signal, there is afraid to let go of the hands and feet big, they are more worried about not knowing how much tax would be paid in the coming years.

By the way, on November 11, Greece adopted a reduced budget, to other European "pig" example to the country; United States will also tax the rich and spending cuts ... ... Thus borrowing consumption, game play to the end of the monetary easing, deflation will be the trend in the world ... ...

After already forming in the global wave of loose monetary and currency war the first signs. Taking into account the current political cycle in several major countries are key nodes in the Web, and loose monetary policy has just launched, policy 3-6 month delay, therefore, global currency war might actually enter the most dangerous in the first half of next year. This maintains high alert, rainy days, is the rational choice of stitch.

The global economy and international financial, looks like chaos colorful, solid track to follow, because history is always kept repeating, most of the evolution of the situation following the trajectory of logical deduction. In June this year, I have taken the lead in prompting the global approach of the era of easy money V2.0, and in making this forecast at the same time, further evolution has hidden in the heart of the situation, that is the moment after the global tide of easy money had been formed, money from the fog of war. From the perspective of evolution of the latest situation, currency war V2.0 are the first signs.

When it comes to currency wars, many people refer to it as "smokeless war", although I have indicated that the definition of, it is just a game, rather than a war. But this game and the war had some similarities. From the perspective of logical deduction, war the national individual conflict of interest must continue to enlarge and irreconcilable, similarly, causes of currency wars and the global game is closely related to the distribution of benefits and rights in the field of Economics and finance. For now, current currency war is about results because:

One reason is that the global economic recovery interest V2.0 at the end of competition more intense. If the 2009 global economic recession 0.57%, is the new century under the impact of the subprime crisis (002280), the first dip in the global economy, then the global economy this year is expected to grow by 3.28%, it is under the impact of the European debt crisis of a double dip in the global economy. Double dip one hand reduces the available for global distribution of the overall benefits, on the other hand, with more differences between the recovery in global, which lead to more fierce competition for recovery benefits. Competing interests of the country for mainly through macroeconomic policies to achieve, and global policy menu is not rich this year, fiscal policy is constrained by high debt risk, monetary policy is constrained by limited policy space, importance in exchange-rate policy in the interests of more prominent. In addition, it is worth emphasizing is that this year's double dip and dip for the first time, a major difference, lack the independence of emerging market growth, and emerging market is the most significant exchange rate fluctuations, inadequate exchange rate regimes relative regional, which has greatly increased possibilities for a global currency war is more a weight.

Reason is loose global monetary V2.0 causes increased competitive devaluation. Marked by a jiekexunhuoer Central Bank Governors meeting in late August, global era of loose monetary policy V2.0 coming, OMT quantitative easing policies pursued by the ECB and fed a high profile launch QE3, Japan's Central Bank starts QE9, people's Bank of China for unconventional reverse repurchase operations, India's Central Bank cut deposit rates, global currencies had been easing, the tone of monetary easing. Loose currency policy tide from two a direction help push currency war: a is through dollars devaluation effect raised global States passive should, QE3 led to dollars devaluation, and dollars devaluation is synchronization increased has most currency, especially emerging market national currency of passive appreciation pressure, turn raised series of should type of exchange rate intervention; II is through protectionism effect raised competitive devaluation, global loose currency V2.0 led to global policy environment more more serious, in global inflation pressure rose, and international trade growth slowed background Xia, Protectionist tendencies in a growing, competitive devaluations by countries desire growing.

Three of the reasons is the world's second-best choice led to speculation of the capitalistic forces gathered strength the currency. Capital natural on has by Lee sexual, and combined current global economic and financial markets status: United States stock has recovered 2008 financial crisis outbreak yilai of all lost, financial Cliff will to background Xia future growth space limited; European stock although more early has rose, on even Greece stock also has stage rebound, but Europe debt crisis may does not completely see end of; emerging market stock, especially CSI stock always is not see signs; international bulk commodity market subject Yu weak of entity economic needs, also difficult has performance space ; In context of global inflationary pressures increased again because of the easy money, once hot bond market has become increasingly bleak; the global property market is in a slump. View the global commodities markets, stocks, bonds and real estate, the medium-term trends are uncertain, in contrast, in the global currency markets, frequent government intervention and exchange rate volatility increasing, competitive devaluation is very eye-catching, speculative forces the opportunity to zoom in relatively large amplitude, the possibility of making speculative gains. Speculative forces may be involved in, as well as currency war explosive planted, sowed.

Of course, many jump up flames, does not mean that the currency war broke out. Multilateral communication and policy collaboration within the context of international efforts is to inhibit the important role of collective irrationality. But given the current political cycle in several major countries are key nodes in the Web, and loose monetary policy has just launched, 3-6 month policy delays, so for some time to come, especially the first half of next year a global currency war might actually enter the most dangerous period. This maintains high alert, rainy days, is the rational choice of stitch.

The euro zone and the IMF agreed to a new round of aid to Greece.

Eurozone finance ministers, the European Central Bank and the International Monetary Fund [microblogging] Tuesday in Brussels to provide Greece with a new round of assistance to reach consensus. 
The euro-zone finance ministers said in a statement, the deterioration of the macroeconomic situation as well as assistance in the implementation of delay, so that the Greek government fiscal outlook even bleaker. 
EU Monetary Affairs Commissioner Rehn (Olli Rehn), said at a news conference action "Greece has told us that their reform seriously, Greece made a lot of efforts to reduce the deficit." 

The finance ministers that all the conditions are in place, Greece to obtain the assistance of the Member States will be formally approved on December 13 Greece 43.7 billion euros in aid from the European Financial Stability Fund. 
The creditors also agreed new targets on the Greek government debt reduction, by 2020 debt-to-GDP ratio down to 124% to 110% in 2022. 
Euro Group Member States still in a statement said, also consider the implementation of other ways to help Greece, including: 
Greek interest on credit lines cut by 100 basis points 
Reduce the cost of loan guarantees for the European Financial Stability Fund to 100 basis points 
May allow Greece delayed for a decade to repay the interest on loans of the European Financial Stability Fund. 
Euro Group, the above measures will not affect the credibility of the European Financial Stability Fund. 

IMF CEO Christine Lagarde [microblogging] said in a statement, "add up all measures should allow Greece debt ratio into a sustainable track, and gradually return to normal market financing. 
Have risen euro rose to $ 1.2982 from $ 1.2961 before a statement. After this news, Asian stock markets also climbed.

How Americans are receiving pensions?

On pensions, a lot of people would think that United States imposed commercial endowment insurance, this is actually wrong, United States pension is an act of State, and non-commercial activities. If you want to understand a country's pension system, we have to figure out three-point, one pension includes several parts, is the second parts are how to pay, how the three parts is received.

United States pension system constituted by the national pension plans and private pension plans. United States Social Welfare States in the West are not the best, but its social security payments system is the largest in the world. United States social security system began in 1935, when Congress passed the Social Security Act, official United States working groups establishing old-age pension system in 1956, after amending the law, pensions have also begun to cover people with disabilities.

United States social security payments is not General in nature, in the United States for people who work a year can therefore access to point 4, about 10 years to obtain the required 40 points, the qualifications to apply for Social Security retirement benefits. Which is not working Americans, or less than ten years of work Americans are unable to receive social security payments. Note that the key to apply for a pension, is in the United States to work legally for more than 10 years, regardless of citizenship or green card status, as a matter of green card holders of long-term residence abroad, is under the provisions of immigration law, had nothing to do with social security pensions.

Americans receive social Angun age rising, people born after 1943, are eligible for full social Angun is 66 years of age. People born after 1960, are eligible for full social Angun was 67 years of age. But people can choose to advance or postpone receiving social Angun, the oldest is 62 years of age receiving Angun, received earlier, amount paid every month will be reduced a lot. If you are age 62 receive Angun, 75% Angun in full and receive amounts every month. 63 per cent to 80%, 64, 86.7%, 65 years of 93.3%.

While the minimum pension age is 62 years old, but Americans do not have to continuously work to 62 years of age to be eligible, as long as the point reached 40. Due to the different income per person, receiving Angun will vary. Working longer, higher wages, more pension. Generally, retirees receive social security payments account for about a year before retirement income 40%. Social security payments report 2011 noted that in 2010, United States 54 million people receive social security payments, pay social security payments of taxes Americans 157 million people.

United States the formula for the calculation of social security payments are fixed, if a $ 75,000 annual salary for persons receiving social Angun in 66 years, how much he can receive each month to Angun? United States social Angun of calculation mode of, by months wage income plus two a calculation points to calculation, first a calculation points for 680 dollars, second a calculation points for 4,100 dollars, annual salary 75,000 dollars of people months wage for 6,250 dollars, if he in 2007 Shi retirement, he monthly can received of social Angun through formula calculation for: 90% (680) +32% (4100-680) +15% (6250-4100) = 1960 dollars, Can receive the Angun 23,520 dollars a year.

Three retirement income mainly Angun, according to statistics, social security payments are most Americans ' main source of income after retirement, 40% of Angun about retirement income. In 2007, half of the retirees ' income is from social Angun, 32% 90% income of retirees from Angun. Due to the existence of social security payments, 40% elderly people over the age of 65 from falling into poverty.

United States pensions was "you-go system", United States Government issued through taxes to sustain social Angun, and participate in the work of people from gold-working day will pay social security taxes, employers have to pay social security payments for each employee taxes. From a historical point of view, 1940 United States employers and employees pay social security payments of taxes each year is an employee earning 2% in 1970, rising to 8.4% in 1990, increased to 12.4%, this rate has been maintained up to now. In 2011, for Obama as an employee of the social security payment rates reduced by two percentage points, so employers and employees pay social security payments to the Government rate 10.4% per cent of total annual income for their employees. If they open a small sale, do a little business, this is called self-employment, self employment status both for employers and employees combined, in 2011 to pay social security payments of taxes to the Government rate is 10.4%.

Tax social security payments are managed by a dedicated Fund, in accordance with the personal situation of retirees each year to grant them social Angun, until the person dies. Angun issued each year according to the inflation rate to adjust in order to avoid a decline in the real incomes of retirees.

Angun on release, United States Government a little taste of robbing, Angun high-income people paid taxes much higher than low-income people, if you press return, low-income people access to return much more than higher income groups.

An Jinhui, and retirees and members of their families

Americans ' pensions is not just a person's social welfare of retired persons, but also benefits to spouses and children. If the retiree died, his spouse had no income spouse can also receive death Angun, subject to the following conditions: a spouse aged over 50 years old, belong to people with disabilities; the second is the spouse aged over 60 years of age; third, regardless of the spouse's age, families with children under age 16 or disabled dependent. As long as it meets one of the above three conditions, the spouse can enjoy Angun died personnel. Current United States there are approximately 5 million enjoy spouse Angun welfare of widows, that for seniors, especially women's lives is a big help.

If the retiree died, children can enjoy the died person Angun. Receiving condition is: not more than 18 years of age; persons still in high school reading 18-19; 18-22 for people with disabilities. If retirees are to dependent parent and dependent spending account for more than half of the living expenses of the elderly, in this case, retirees if passed away, his parents can enjoy receiving the death Angun.

This implementation results can be avoided after the death of retired persons, living hardship to his family to reduce United States poor. At the same time for those who are incapable of working, would amount to the Government, it would be to help people out.

United States tax social security payments be handed over to the Federal Pension Fund management of older persons, the Fund was founded in 1940. From 1982 to 2009, the United States retirement funds have been in surplus status of older persons, the lowest surplus of 89 billion dollars a year, the highest surplus of 190 billion dollars a year.

According to the law, pension fund surplus of older persons need to be loaned to the Federal Government, even with interest for a certain period to repay the Government for the elderly pension funds. By 2009, United States social security payment system can be said to be good, prosperity, but after the 2010 United States social security payments system is facing a huge crisis. From 2010 to 2020, the 8 year old retirement fund expenditures will exceed revenue. But since the Government interest, funds will continue to grow. Between 2021 and the situation is not optimistic, the Fund paid retirees ' Pension Fund amount will be much higher than the income of the Fund, this imbalance will continue until 2037, the elderly pension fund reserves will be depleted, if measures are not taken by the Government, when retirees ' pensions issue will become an issue.

Ageing around the world have been greatly exaggerated, of course, because 2037 world is another touch-like, and the difficulties now facing humanity is only temporary, to now speculate the future itself unreasonable. Human predicament now facing more two difficult adjustment between the revolution of science and technology, and this adjustment than the last century's great depression is clearly much milder, we see human problems, but also confidence in human development.

Second believe that ageing drag on the misunderstanding of pensions actually has a very important, it is the United States is the pay system of pension, this system means that the proportion of pension payment is not fixed, if you have extended the life expectancy of the population, it should increase the length of payment or increase the proportion of payment to guarantee pension payments, this is not a problem at all. Moreover, Western countries, their pension payment has is constantly changing, this is a common situation, excessive hype pension dilemma is meaningless.

How the U.S. Social Security system is built ?

United States is a secure, less welfare States.

Now talk about the people's livelihood, generally referred to the welfare and security of the two words, which is the foundation of social security, social welfare is high level. Social security is the earliest in the world under Bismarck's Germany, Britain and other countries were established after the great depression of the last century, social welfare is a product of the second world war. Now include China, the world's major powers are in fact complete the infrastructure of a social security system, part of its controversial social welfare.

United States although no benefits, but social security is. United States belonging to the liberal State, limited government participation in Economic Affairs, stressed that market security as the core, surrender market allocation for social welfare, non-commercialization of effects is very low, prevailing elitism but stressed that equal political, economic polarization evident on. Traditional States follow only the poor, competition for the market "loser" or a lack of capacity to provide limited support and complement and guarantee their minimum needs. Welfare treatment through rigorous review or a means test to determine.

United States social security road

United States social security and social welfare has experienced two major periods, a period was during the great depression, Roosevelt, another was launched by President Johnson, 60 of the last century "great social movements". Prior period is to establish minimum guarantees, then one is towards welfare.

United States after the end of the civil war, prosperity of national stability and development stages. During this period, laisser faire and social Darwinism was United States mainstream philosophy. This is known as the "gilded age" in the years ahead, United States social feature is the principle of supremacy of the market economic operation of individualism and elitism are advocates, there is no concept of social security, United States the role of the Government is "the night watchman" Government.

Into the 20th century, classical capitalism suffered a strong impact. Old Roosevelt when the first ten ages, United States broke the "progressive movement" egalitarian gradually taking root, trade unions towards social and political center. Under great social pressure, the old Roosevelt to the United States a limited modification of the political and economic system, begin to pay attention to the protection of labour, regulating industry, antitrust, environmental protection and other problems, he even broke precedent and invite a black man to the White House for dinner.

In the 1930 of the 20th century's "great crisis" to the United States brought about profound changes, the social security system was born in Roosevelt's new deal. Roosevelt's new deal, to correct the old capitalism, to intervene in the economy, an amendment to the social Darwinism. Roosevelt's "3R" action in history, namely, rehabilitation (Recovery), relief (Relief) and reform (Reform).

United States Government recognizes: "save the unemployed, not charity, but a social responsibility", "by the Government to avoid suffering from hunger, a huge waste of human resources to prevent terrible". Small Cairns, profess and practice, President Roosevelt had also accepted the theory of "economic justice", he proposed to give the nationals for the first time in the inaugural "from the (economic) freedom from want", which took the country to the positive from the negative freedom of free change of the first step.

In 1933, United States Social Security Act was introduced. Introduction of this important law, the United States had a qualitative leap forward in social security, with the core legislation, United States community has officially entered the era of citizen security.

In early 1944, President Roosevelt proposed "second Bill of rights", includes enough to cope with food and clothing and recreation income, adequate health care, decent housing, good education, old age, sickness, accident and unemployment relief. After the death of President Roosevelt, United States social security expansion operations have been conducted, in 1950, 1952, 1954 and 1956 for significant amendments to social security-related content. 30-50 's people were known as "the greatest generation of Americans" can be said to be worthy representatives of President Roosevelt.

Entered 60 generation, United States of social security improved ushered in has second a peak, Johnson President of "great social" campaign, boot United States of social welfare Mai Shang has a new stepped, only in he served of head two years in drew attention to the United States Congress through of legal "than century within any a President in any a session Congress by made of are to more" main proposal on including welfare bill, and civil rights bill and eradication poverty Bill, which and welfare directly related of has primary and secondary schools education law under, and higher education law under, and medical care law under, and Food Stamp Act, the economic opportunity act, covering a massive funding primary and secondary education, providing education on college students ' grants and loans, medical care system and medical assistance system, relief and vocational retraining.

Politicians in action, United States scholars in national welfare improvement and actively explore. Rawls ' theory of Justice is one of the most influential sociology, he made a series of great value to social justice perspective, deals with the General principles of Justice, United States social tradition of giving priority to efficiency and utilitarianism principle shock impact. Today, Rawls ' view of distributive justice is often considered a basic ethical foundation of the welfare state.

Another scholar Michelmann in Rawls ' theory of Justice on the basis of construction of the "minimum guarantee" welfare rights legal framework in favour of food, shelter, medical care and education, these meet the minimum means of subsistence should be of constitutional significance "welfare rights". Michelmann awareness than European academia's liberal views are conservative, but also gave each United States citizen an opportunity to gain more dignity and well-being.

70, United States "Gode Goldberg v. Kelly Borg" accepted and affirmed the Raich "new theory of property rights", reversing the United States believes that credit belongs to the backward concept of privileged society in the past, confirm that it is the fundamental right of citizens, this means that in the United States the Department of law of the country, on the welfare and security of the law into the revolutionary era.

During the administration of President Ronald Reagan to President Bush, was United States welfare process, 20 years, United States social security not only no progress, but has undergone considerable setback, but did not change the basic framework, which benefited from social credit to groups such as trade unions, farmers ' associations.

United States a large number of farmers from the Government's agricultural subsidies, it is farmers ' Association continue to exert pressure on the Government to seek to. Trade unions are also the same, car giant mass layoffs in the two years before the days are sad! Final solution is the Government stepped in to support the Giants, go marry other members of the social burden. In the United States, trade unions, farmers ' associations and other industry associations to powerful umbrella membership benefits.

United States security projects are divided into three classes on social security, public assistance and welfare services, each United States citizen has a social security card issued by the social security administration, also known as the SIN card, each received a social security card, if you lose the bid for a copy of it. This card is United States residents of one of the most important identity documents. Normal tax use this card at all times, card holders are recorded on all records of income and taxes, eligibility for social welfare payments and the amount to be calculated depending on the individual's record. Usually candidates seeking vocational education, bank accounts, loans, applications, and so on, to produce a social security card or fill in the guarantee card number.

EU medium-term budget dystocia: next side to talk about side modify

Brussels, November 23

After two days of heated debate, the special summit of EU leaders on the 23rd fruitless, the countries failed to reach an agreement on the EU's medium-term budget plan for 2014-2020. The experts believe that the country to the dictates of their own "small thinking" interim budget "dystocia" On the one hand, but also a vivid manifestation of the difficult process of European integration.

Van Rompuy: continue to coordinate

"We're in the next phase of negotiations to further modify the budget plan."

23 afternoon news conference held after the end of the Extraordinary Summit of the European Union, European Council President Herman Van Rompuy said: "European leaders failed to reach agreement on the interim budget, the Council of Europe and European Commission President decided to give in the coming weeks to continue coordination of the powers of the Member States stand, so that the 27 countries to reach a consensus on the interim budget. "(Editor's Note: According to the Xinhua News Agency reported, the 24th EU Internal Market and Services Commissioner Michel Barnier told French Europe the 1st radio interview that the EU summit failed to reach agreement on the EU's medium-term budget plan, not a failure, just interrupt the negotiations only the 2014-2020 medium-term budget of the European Union is a seven-year budget, rather than the one-year budget, the EU member States a few months time to reach a consensus in this regard.)

When asked about the talks fruitless reasons, Van Rompuy said: "My feeling is that we can go further, but our decision must be balanced, not purely in order to reach an agreement to act hastily ... some countries insist on more budget cuts, some countries do not agree with in the next phase of negotiations to further modify the budget program. "

He further explained that the budget negotiations are too complex, generally after two rounds of negotiations. Negotiations in 2005 on a seven-year budget is so difficult.

The summit, Van Rompuy € 1 trillion size of the budget proposed by the European Commission proposal to cut 80 billion euros, slightly lower than the last 7 years, the total budget, including cuts in farm subsidies and aims to provide development to the backward areas assistance "cohesion fund". Britain welcomes, but France, Spain and Italy and other countries to benefit from these subsidies and funds that the program is unacceptable. Summit, Van Rompuy adjust the budget plan, the maintenance of existing agricultural subsidies and the size of the "cohesion funds". In this regard, the United Kingdom, Germany and some Nordic countries expressed strong opposition.

Countries habitual screw around with "small thinking."

More conducive to their own countries striving to make budget allocation.

Analysts pointed out that the EU countries on the major differences of the medium-term budget in its scale, but in fact advocate and oppose spending cuts proposed by both parties the amount of the specific budget gap is not large. If this difference is an average seven years longer on average to 27 countries of view, even more trivial. Therefore, the the interim budget dystocia key reason is that countries are habitually screw around with "small thinking" striving to make the allocation of the budget is more in their favor.

According to the proposal of the European Commission, the EU's 2014-2020 budget of around one trillion euros, an increase of about 5% on a seven-year budget. As the main contributor of the budget, the United Kingdom, Sweden, the Netherlands, Germany, led by several EU Wells Fargo, in the context of the European debt crisis, countries are carrying out different degree of fiscal austerity and, therefore, the expenditure of the EU institutions should also decrease . The other party is mainly using Southern and Eastern Europe countries, they are opposed to reducing the size of the budget, emphasizing in particular to ensure the maintenance of the existing agricultural subsidies and "cohesion funds".

The Yingde countries such as advocated cuts in farm subsidies, as the largest beneficiary countries of the European Common Agricultural Policy, France resolutely resist reducing agricultural subsidies accounted for nearly 40% of the entire EU budget. As a comeback, France asked reassess special rebate provided by the European Union to the United Kingdom policy. For Spain, Italy, as well as a number of Central and Eastern Europe and the southern European countries, the preservation of the "cohesion funds" is their biggest target.

In addition, within each camp there are different voices. For example, Finland has advocated cutting the EU budget, but insisted the budget funds used to subsidize the sparsely populated areas can not be reduced.

Even the European Commission and the European Parliament also has its own small thinking. They oppose the budget cuts, mainly worried about 6% share of the entire budget of the European Union EU administrative operating expenses will be affected. Yingde and other countries have made it clear that more significant reduction in the expenditure. British Prime Minister David Cameron told the media after the meeting, said: "We want to cut that we can not afford to pay the expenses we have no reason not to take a tougher attitude in the issue of reducing the administrative costs of the EU institutions, EU institutions are are not willing to even consider this is an insult to the taxpayers of Europe. "

From another perspective, the reason why the EU's medium-term budget dystocia, but also because many countries are not eager to agree. EU law, member states next year are still unable to time on the interim budget to reach agreement, the seven years from 2014 budget year to year basis, the annual size of the budget in the previous year, based on year inflation growth sync up . EU inflation rate is generally around 2%, so this will be lower than the growth rate of 5% proposed by the European Commission. However, most do not want negotiations eventually broke down, the United Kingdom, because it would cut the total budget expectations run counter to its.

Integration difficult vivid manifestation

EU countries in the negotiations on the EU plan for the future, "often" Strange Bedfellows "phenomenon.

Analysts pointed out that if the EU can not reach agreement on the interim budget, will give hundreds of billions of euros worth of EU-led medium-and long-term public investment projects to bring uncertainty to crack down on the already fragile EU economic. More importantly, it will also dispersed EU energy deal with the debt crisis, and dampen public confidence in the EU.

Martens, the person in charge of the EU think tank, the European Policy Centre, told reporters that the EU countries in the negotiations on the matter of EU development plans "often the phenomenon of" Strange Bedfellows ", from the" financial contract "aimed at strengthening fiscal discipline to the establishment of a bank cartel, each time the results of the negotiations are different from the initial ideas and proposals.

Martens said, this is a vivid manifestation of the difficult process of European integration. If countries even develop throughout the EU gross domestic product (GDP) accounted for only about 1% of the budget should be such a quarrel, to establish the future requirements of the Member States have transferred sovereignty fiscal union, banking alliance, even political union will certainly be more very difficult. In fact, if there is no debt crisis in Europe, the European Union has recently made some progress within 2012 to strengthen fiscal discipline Originally unthinkable.