Nicolas Sarkozy as the French President, depicting himself as a man of action,in a pre-election gamble looks to introduce an unpopular 0.1% tax on financial transactions aimed at raising revenues. The emphasis is to raise revenues while discouraging money from flowing offshore. The tax will target shares and not bonds. He has also pledged to raise consumption taxes as a way to ease fees paid by employers to keep jobs in France.
Spain unemployment rate soared to nearly 23% and nearly 50% for those under the age of 25. Overall 23 million people are jobless across the Euro zone translating to 10% of the active population.
In Brussels, 27 EU leaders meet to try and agree on a strategy to promote growth and reduce government spending, while negotiations on easing Greece’s debt continue. They are trying to cut the debt in half before providing the second bailout to
reduce repayment terms. Greece will default if funds aren’t provided. The lack of progress on resolving the debt crisis is giving the financial markets the jitters.
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