Pharmaceutical Industry of the United States is prepared to spend 80 billion dollars over 10 years for the reform of American health care, which is being developed by the administration of U.S. President Barack Obama.
Democrat Senator Max Bokus has managed to negotiate with pharmaceutical associations on the bill on the reform to transfer part of program costs on the shoulders of businesses, passes Associated Press.
The agreement between the White House, lawmakers and the pharmaceutical industry should facilitate access to prescription drugs for millions of older Americans and reduce costs of the federal government.
B. Obama welcomed the agreement that was reached by the senator and pharmaceutical companies, describing it as a “turning point” in improving the national health system.
The current U.S. public health system, by the general view of American politicians, is imperfect and is in need of immediate reform. Approximately 46 million people in the country are not covered by a health insurance program, the budgetary costs of Medicaid and Medicare programs are growing at a daunting pace and the budget already has a huge deficit.
Congressmen, working on the reform bill, hope that the cost of the plan will not exceed 1 trillion U.S.

The Government of Germany and the authorities of the German lands, where the main businesses of Opel are located, approved the investment plan of Canadian-Russian consortium.
Magna and Sberbank claim for a controlling stake of Adam Opel GmbH, which combines Opel and its sister brand Vauxhall. Under the plan of Magna, General Motors will retain a share of 35% in the Opel, another 35% will have Sberbank, 20% – Magna, and the remaining 10% will be owned by Opel employees.
Capital infusions of new investors in Opel should make about 500-700 million euro. The industrial partner for Opel, as planned, will become “GAS” group. Canadian Magna International expects to complete the transaction for the purchase of Opel by September 2009.

It should be recalled that the German authorities approved the provision for the European Branch of the American auto concern General Motors – General Motors Europe bridge loan of 1.5 billion euros on 1 July this year.
With that German automaker Opel and British Vauxhall will continue to operate regardless of the bankruptcy of the American parent company. In the next five years, Opel plans to increase itsannual sales volume of cars up to 2 million units.

Statistics of the euro zone, published on Monday, showed growth of investors’ optimism. According to the German research group Sentix, optimistic sentiment of European investors reached the maximum in June of this year. Instead of the expected growth to minus 31.0 points, the rate soared from minus 34.3 points to minus 27.0 points in May.

According to experts Sentix, the main factor in the growth of optimism in business circles in Europe has been the improvement of macroeconomic statistics, released recently in the countries of the euro zone. Against the backdrop of slowing economic downturn, confidence in the region is growing that the worst times of recession are behind us and the beginning of the restoration of economic growth is not far off.

An additional factor that stimulated the optimistic tone of market participants became macroeconomic data, released in Germany. The Federal Statistics Office in Wiesbaden reported that the volume of Factory Orders in April of this year had not changed in comparison with that of the previous month. In annual terms it fell by 37.1%, while the predicted decline was 33.0%. In the statement the Ministry of Economy of Germany said that the medium-term prospects for the development of the German economy looked much better.

Thus, expectations that the European economy is ready for the start of reconstruction are stepping up the sale of debt obligations of European governments. At the same time, the players prefer to make predictions for short-term outlook, where apparent improvement in the economic situation is not expected. Therefore, by the end of the trading session the short-term debt securities of most European governments showed increase in price as opposed to long-term securities, which fell on the basis of quotes of the day. The leading benchmark of European government bonds showed the following results half an hour before the closing of trading session: yield of 2-year German Bunds rose by 5, 10-year-olds dropped by 4. Spread between 2-year-old and 10-year German Bunds has shrunk from 204 to 195.

According to analysts, the rally in global equity markets may continue until the end of June, as the month is the final one for the second quarter. Consequently, the desire to complete the quarter with the high rates will be determinative for many investment funds. In addition, the yield of long-awaited positive macroeconomic indicators, giving reason to believe that the “bottom” of economic decline of the European region is reached and the beginning of the process of economic recovery is not far off, no doubt, will further catalyze the growth of prices in world stock markets.

“The economic recession, which is expected in the current year, for the most part, is a consequence of massive disruption in the global economy and the consequent drastic reduction in our exports,” – quotes a leading paper from the speech of Minister of Economics and Technology of Germany Karl-Theodor zu Gutenberg at the meeting of the Cabinet of Ministers.

According to him, the two existing government programs to improve conditions allow Germany in a national scale “to survive better” compared with other countries. In this regard, zu Gutenberg sees no benefit in taking the third market program, as called for by some politicians and experts.

“Anyone who believes that we must “add” a third program will get just the opposite effect: undermining the confidence of investors, consumers and taxpayers. Waiting and frustration – this is the last thing our country needs “, – stressed the Minister.

He said that the further stabilization of the banking and financial sector was the main problem in the process of solving the issue of returning the German economy on a course of stable growth.

“So I think that the primary purpose of developing a rapid and effective solution is the isolation of “toxic securities” on bank balance sheets” – said the head of the Ministry of Economy of Germany.

He also expects further decline of exports this year, but also predicts, that the global economy recovery will stabilize in this sector in 2010.

Almost the same predictions, according to experts in the ministry, can be attributed to the construction investment. “The government market program has a direct supporting influence on it,” – it is said in the press release.

Less encouraging forecast is given in the paper for the field of employment: “In the current year, unemployment will increase by an average of 450 thousand and will reach the level of 3.7 million people, and next year it will increase approximately by 900 thousand and will be 4.6 million people.”

The Minister called personal consumption an important stabilizing factor, which in this period will be exposed to only a very slight decline due to short-term program of government (in particular, reduction of tax on incomes of citizens, reduction of the size of mandatory contributions to health insurance, payment of benefits to children and increase of pensions).

Wide economic benchmarks of the spring forecast, as noted in a press release, will be the basis for the planned evaluation of tax revenues, as well as for meetings in the Council of financial planning, in regard with federal budget, land, communities, and contributions to social insurance.

Shmatko, who did not go to Brussels, said that the situation was serious – gas «reality show» could happen again. He lamented that the EU is not enough active in this matter. «We have informed the management that, in our opinion, EU countries do not have a proactive position regarding this matter», – emphasized the minister.

In his turn, Vice Premier, Finance Minister Alexei Kudrin, reported on June 1 that the head of the Russian government Vladimir Putin had sent a letter to the International Monetary Fund (IMF), where he drew attention to the importance of financial support to Ukraine so that it does not disrupt deliveries of Russian gas to Europe.

Kudrin added that a similar letter was sent to the EU which, given the criticality of the situation simply must respond. «We believe that the EU should also be concerned to avoid failure. Ukraine is on the line where it is not able to fully provide payments for gas », – Kudrin emphasized.

Meanwhile, Ukraine ceased pumping predetermined volumes of gas into storages and, accordingly, ceased to pay for the lost fuel. The fact that she had almost nothing to pay for gas, Ukrainian Prime Minister Yulia Tymoshenko acknowledged at the meeting with Vladimir Putin, in Kazakhstan, May 22. She asked Russia to provide payment for gas transit for five years in advance, because that was the only way to solve the problem. But – she was refused.

The official representative of «Gazprom» Sergei Kupriyanov indicated that the shortage of fuel complicated Ukraine gas transit to Europe. «We are concerned about this situation and try to convey this concern to our colleagues in Europe. If now, in summer, underground storage facilities in Ukraine are not adequately filled, it will be very difficult for the Ukrainian colleagues to comply with their obligations to transport gas “, – he said.

Surprisingly there is no reaction from the EU yet. In March of this year it signed a treaty with Ukraine behind Russia’s back that it would modernize the Ukrainian gas transmission system. But Brussels is not in a hurry to invest in the salvation of the Ukrainian economy. And also the meeting of the European Commissioner for Energy and the head of the Minernego of Russia foiled. It is clear for everyone: if the gas crisis happens again, the sufferers will be European consumers.