The Hellenic Radio (ERA): News in English, 08-10-08

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From: The Hellenic Radio (ERA) <www.ert.gr/>

CONTENTS

[01] In Internal Economy

08 Ïêô 2008 21:15:00

Sources: Reuters, ANA, MNA

The head of the International Monetary Fund warns of recession in international economy. Europe must show it can respond like the United States. Dominique Strauss-Kahn says that the financial situation is an unprecedented test for the countries that use Europes common currency. European leaders face a difficulty to agree on which approach to adopt. The IMF blamed lax economic and regulatory policies for the crisis. At the same time, the combination of soaring food and fuel prices has pushed inflation to levels unseen in a decade, the IMF said, exacting an especially heavy toll in the developing world where families spending on food is high.

In an attempt to stem the worst global financial crisis since the 1930s, the U.S. Federal Reserve, European Central Bank, Bank of England, Switzerland, Canada and Sweden all lowered official rates by a half-percentage point.

The Bank of Englands shock half percentage point rate cut on Wednesday will not snap Britain out of its economic blues, and further rate cuts will probably be needed.

Iceland is on the brink of bankruptcy for the first time since the advent of economic globalisation. Prime Minister Geir Haarde rushed emergency measures through the Nordic nations parliament to nationalise Landsbanki and give the countrys largest bank, Kaupthing, a £400m loan to bolster its balance sheet.

French mutual banks Groupe Caisse dEpargne (CNCE) and Banque Populaire said on Wednesday they would begin merger talks, in the latest example of banks turning to each other for refuge from the financial storm. Italian bank UniCredit will cut worldwide 700 out of 3,500 jobs

Spain is setting up a fund of as much as $75 billion to buy bank assets, emulating the U.S. rescue plan to shore up the financial system.

The Kremlin announced Tuesday it would inject about $36 billion into Russian banks, one day after the stock market suffered its worst day of trading.

European car markets are also hit by the credit crisis that halts car production around the continent. In German and Sweden Opel, General Motors and Volvo factories are shutting down. Volvo proceeded to 3000 dismissals.

Translated by Sofia Gartziou

[02] Farmers' Protestation

Sources: ÁNA-ÌNA

Farmers from Northern Greece gathered today in the White Tower, Thessaloniki to protest for the low prices of their products. They distributed to passing people mainly elderly ones milk and yogurt.

According to the president of the Pan Hellenic Union of Farmers Dimitris Kabouris, farmers ask form diary companies better prices and from the state financial support and compensations in case of drought through ELGA fund.

The president of the Farmers Lagada Union Mr. Giannis Panagiotidis stressed that farmers are in the "despairing position to beg diary companies to accept their products in open prizes", while the president of sheep breeders Strgios Kyrtsos, said that "prices are very low for producers and very high for consumers".

Translated by Sofia Gartziou

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