Week of December 11, 2011 thru December 17, 2011

China Nov Fiscal Revenue Up 10.6% y/y vs +16.9% In Oct

BEIJING (MNI) - China's fiscal revenue grew 10.6% y/y in November to CNY645.7 billion, the Ministry of Finance said.

The slower growth, compared with a 16.9% increase in October, was the result of the slowing and falling tax revenues as a result of declining auto and property transactions, as well as a rise in the individual income tax threshold and an increase in export tax rebate, the ministry said.

Fiscal revenue rose 26.8% year to date to CNY9.73trillion.

The Finance Ministry also said fiscal expenditure rose 7.5% to CNY1.14 trillion in November and was up 24.3% in the year so far at CNY8.9 trillion.

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ECB Weidmann: EU Summit Decisions Represent Progress: Paper

FRANKFURT (MNI) - The decisions reached Friday by the EU Summit represent progress, European Central Bank Governing Council member Jens Weidmann said in an interview published over the weekend.

Weidmann, who heads the German Bundesbank, told Frankfurter Allgemeine Zeitung he had always stressed that "we need dependable prospects for solid government finances in the individual member states. I do indeed see progress here as a result of the summit decisions."

In particular, he noted that the agreement to enshrine strict deficit limits in national constitutions "can make a major contribution," and that the Stability and Growth Pact will now be better insulated from political whims.

ECB Nowotny: Euro Will Endure, But May Have Recession: Paper

FRANKFURT (MNI) - The Eurozone will not fall apart, but a recession cannot be excluded, European Central Bank Governing Council member Ewald Nowotny said in an interview published over the weekend.

Nowotny, who heads the Austrian National Bank, told Austrian daily Kronen Zeitung on Friday that "we can overcome this crisis, because a change in thinking has taken place. We now know that indebtedness has limits. Hopefully, confidence in the financial sector can emerge again on this basis."

As for the single currency, Nowotny said he was "convinced that it will not fall apart, because it is in the interest of the rich AND the poor countries.