CORPORATE NEWS
STERLING hit an all time low against the Euro at GBP 88.23p on February 23rd following Chancellor’s King speech on the UK’s massive debt
Greece’s excessive deficit triggered trading markets’ volatility and excessive speculation against the Euro on February 4th forcing the European Commission to publicly express its « full support in this difficult task» and to « welcome Greece’s ambitious program to correct its fiscal imbalances ». The Commission’s statement specified that implementation of all of Greece’s measures, and statistics, « will be carefully monitored through regular reports to be sent to the Commission by Greece. » The Euro reached a record low at USD 1.3780, (-1% in one day) the lowest exchange rate since June 2009 due to trading markets worries about Greece, Portugal, and Spain, Euro area member states, over their respective government deficits. Ibex 35 (the Spanish bourse) dived - 5.5% as concerns about companies and households debt levels and sovereign debts rose above rationality. CAC 40 fell -2.8% and closed below 3.700 points, financials bit the dust with BNP tumbling -5%, SG -6.6%, and CA -5.5%. Crude oil prices per barrel fell to USD 72 while Gold mechanically rose above USD/ounce 1070.
The European Central Bank 's President Jean Claude TRICHET expressed confidence in Greece’s program to correct its excessive government deficit but stayed prudent about the Euro area‘s growth, forecast to be « moderate » as « uncertainties remain » in the coming months. Main interest rates in the Euro area were kept unchanged at 1%
The Greek government’s stability program for 2010-2013 period includes a budget deficit reduction by 4 % to 8.7% of GDP in 2010, 5.6% in 2011 , 2.8% in 2012 and 2% in 2013. As regards revenues, the program contains the elimination of tax exemptions, the rise of excise duties on tobacco and alcohol and measures to fight tax evasion. On expenditures, the government will cut public servant allowances, freeze recruitment in 2010 and will only recruit 1 for every 5 civil servants retiring thereafter. In addition, all budgetary appropriations per ministry will be cut by 10%. As regards reliable budgetary statistics reports provided by Greece, the Commission is initiating infringement proceedings, requesting the government « to take all necessary steps to ensure that the systemic failures and weaknesses identified in the recent Commission report are corrected. » Greece is further requested « to cooperate with the Commission « so as to promptly agree on an Action Plan to tackle statistical, institutional and governance « deficiencies » . The Commission asked Greece to produce it first report in mid March 2010 when it will be assessed by the Commission. A second meeting has been scheduled in mid-May. Greece’s Plans for 2011 and 2012 also need to be detailed in the coming months.
February 11th saw the European Commission convene finance ministers to an emergency meeting in Brussels over Greece’s deficit as volatility kept pushing down the Euro. The European Union’s solidarity with Greece materialized into a statement in which EU President Hermann Van Rumpuy declared that the cash-strapped state will be closely monitored by its counterparts over reducing its debts by 4% in 2010. The EU statement specified that « the Greek government has not requested any financial support.» Although tangible measures were expected to salvage Greece, the 1991 Maastricht Treaty no bail-out clause, which excludes member state (s) from financially aiding another member state, reminded commentators of each EU country’s obligation towards their respective public finances
The European Commission has recommended that no new stimulus packages should be implemented in Poland following its excessive deficit, estimated at 7.2% by the authorities and, to be reduced below 3% of GDP in 2012 in accordance with the EU Stability and Growth Pact reference value. A « rigorous implementation of the budget for 2010 » must be carried out according to the Commission who will « closely monitor budgetary developments in Poland »
PHILIPS was faced with € 25 000 daily penalty unless it agreed to re-open its TV-sets plant in Dreux, as ruled by the Chartres Tribunal following a complaint filed by unions on behalf of 212 workers sacked collectively and effective immediately, in violation of job rules. The Tribunal also ordered the Group, with €200 million net operating income, to review its redundancy plan. In mid-month, workers had been informed of their lay-offs by registered letters, and were requested not to come to work. In the same letter, all employees were offered equivalent occupations in Hungary for monthly salaries of € 450 and,proficiency in Hungarian was required
EUROSTAR passengers en route from Paris to London experienced a « major technical failure» as announced by the Group, an nth incident as 740 trains riders were delayed in Kent for over two hours. A joint Anglo-French Independent Eurostar Review published in mid-month into the breakdown of five Eurostar trains in the Channel Tunnel in December 2009 concluded that « Eurostar did not have adequate emergency procedures in place for managing major disruption to its services ». The report ’s 21 recommendations included improvement of train reliability or engineering upgrading to prevent technical failures, better passengers’ evacuation and rescue under the Tunnel , and improvement for managing disruption and better communication. The report also concluded that « Eurostar trains had not undergone sufficient winter weather preparations to withstand» extremely severe weather and snowfalls. On consequences of passengers over-extended delay under the Tunnel the report set two priorities: air conditioning (unavailable during the December breakdown) and « an urgent review » of the Group’s « current procedures for evacuating a train in the event of power failure… ». The report also noted that Eurostar’s website failed to inform passengers on alternative means of transport and was unable to keep passengers updated on developments
ALSTOM was awarded a contract worth around € 200 million with the municipality of Amsterdam for 23 metro trainsets to be delivered in 2012 and destined to the existing metro lines of the city. The contract includes an option for additional metro trainsets for the North/South line which is under construction. The metros will be produced in Valenciennes, France, and Katowice, Poland. The first train sets will be delivered in the Spring of 2012 with commercial service effective from the end of the 2012. Total transportation capacity will increase by approximately 50 per cent thanks to the new metro trains larger length of 116 meters. Passenger access will be made easier with large doors, continuous low floor, extra wide chairs and gangways between the coaches. In addition, dynamic travel information, communication connections and transparent interiors will improve passengers’ safety and comfort. Today, one in four metros in operation in the world is an Alstom metro
An unlimited strike at six of TOTAL’s 12 oil refinery plants stopped short of blockading the country following unions and management representatives successful negotiations over jobs and a set deadline, March 8th , to decide on the future of the Dunkerque oil refinery plant, in a stand still since September. Mounting pressure from state interventionism had the Group back down on plans to shut down the refinery with 380 staff and 400 subcontractors. Brittany and the south of France suffered some petrol shortage one week into the protest. Staff at Dunkerque remain on strike
A name and shame list which itemized companies lacking a risk prevention policy in the work place to prevent stress at work was withdrawn from the Ministry of Labor’s web site (travailler-mieux)less than 24 hours following publication due to complaints from management representatives’ local chapters (MEDEF) whose members said they had been wrongly designated on a « red list ». Government’s decision to impose anti-stress policies on firms was prompted by an escalation of employees’ suicides. Xavier DARCOS, Minister of Labor had warned of a deadline when three lists, -- green for best of class, red for underachievers and yellow for on going negotiations-- would be made public. The same week, a report on workers’ stress at work in the private sector and produced on request of the Prime Minister, François FILLON, identified 10 measures to improve workers’ health at work. The 19 page report titled « Well-Being and Efficiency at Work », lists an overwhelming number of internal factors as the major causes of risk to workers’ health such as re-organizations, lay-offs, ICT over-use, multi-tasking, financial performance/target, globalization - distance-management, over-use of reporting methodologies/targets, and over-dedication to a company. According to the report, external causes only include two reasons (clients demands, and commuting) likely to trigger stress defined as « occurring when there exists an imbalance between the perception that one individual has over constraints that are imposed to him/her by his/her environment and the perception that he/she has of his/her own resources to face such constraints». The report recommends best practices such as appropriate management training, impact studies prior to major re-organizations, collective work consideration and underlines that « manpower is a company’s major strategic resource». Solely conducted in the private sector, the report’s authors highly recommend that a similar study be conducted in the public sector
CARREFOUR announced the upcoming closure of 21 stores in Belgium out of a total operating 630 units and plans to shed 1672 employees or 10% of its workforce before the end of June due to fierce price competition, which the Group said, has affected its market share
One million train travelers were expected by SNCF to jam Paris two main train stations due to the winter-break departures to skyiing areas on February 20th from the Paris Ile de France department. School recess is spread successively nationwide into three regional academic departments to avoid road congestions. The Group announced that 1360 trains of which 980 TGVs (fast trains) were scheduled over the week-end alone to meet the first passenger peak which usually occurs then. At Paris Gare de Lyon , 400 TGVs were scheduled for 240 000 passengers to the Alpes en route to skyiing stations of Bourg St Maurice, Grenoble, St Gervais and Evian. At the Paris Austerlitz train station,50 Corail night trains were planned to the Alpes and to the Pyrénées. By train, and due to the highly developed national railway network, skyiing areas and resorts are, on average, between three to five hours away from Paris- Gare-de-Lyon and Paris-Austerlitz, with direct access to lodging via shuttle services
BNP Paribas announced net income up 93% to € 5.8 billion for the fiscal year 2009 with revenues of € 40.2 billion or +46.8% year-on-year. A total € 500 million was provisioned for traders bonuses. Gross operating income rose +87.7% to € 16.8 billion while expenses, up 26% to € 23.3 billion, increased at a lesser pace than the previous year. Net earnings per share rose to €5.2 or +74% compared with 2008. The cost of risk jumped + 45.5% to € 8.4 billion due to retail banking (BNL bc in Italy including private Banking, BancWest especially loan loss provisions on residential mortgages), emerging retail banking and personal finance. The former, for the whole of 2009, was impacted by the devaluation of a number of currencies, higher level of positions in Ukraine and loan loss provisions of a few loans in the Gulf region, while the latter reflected the effect of the economic downturn and higher unemployment. Group Tier 1 ratio increased to 10.1% compared with 7.8% last year
AREVA announced that it was granted approval by the U.S. Nuclear Regulatory Commission (NRC) for the digital Instrumentation & Controls (I&C) system upgrade of a U.S. nuclear station. The Group becomes the first and only supplier to receive NRC approval for full application of a safety-related digital I&C system. Similarly to the EPR™ reactor, the Safety System, TELEPERM XSTM, is included in the design for new nuclear plants, as well as the upgrading and modernization of existing plants of virtually all types and from all main suppliers. Worldwide, 55 units have implemented or ordered TELEPERM XSTM systems since its first installation more than 10 years ago. Among the Group’s activity this month, AREVA announced the signature of an agreement with KEPCO (Korea Electric Power Corporation), for the Korean group to join the Imouraren mine in Niger under an indirect 10% stake of the mining company, jointly owned by AREVA and the Nigerian state. Under the agreement, KEPCO is entitled to that percentage of the mine’s lifelong production to exclusively supply its reactors in Korea. The Imouraren uranium deposit, 80 kilometers south of Arlit in northern Niger, is today considered one of the biggest in the world. Mining is scheduled to begin in 2013, with an annual production capacity of 5000 tons of uranium. Imouraren SA will be in charge of exploiting the mine, over what is expected to be more than 30 years. AREVA and KEPCO also discussed the possibility of extending their cooperation to cover uranium conversion and enrichment activities, as well as used fuel recycling
RENAULT reported €3.1 billion net loss for the fiscal year 2009 with revenues of €33.712 billion or -10.8% year-on-year in a difficult environment although the last quarter sales rose + 25%. World market share (Passenger Cars + Light Commercial Vehicles) edged 0.1 point with an improvement in the second half (up 0.2 point worldwide and 1.4 points in Europe). Group operating margin came to a negative €396 million, or -1.2% of revenues (of which +€224 million in the second half, or +1.3% of revenues). Operating loss reached €-955 million of which -€9 million in the second half. The Group’s working capital requirement improved by €2.923 billion in 2009, with a notable 25% reduction in stocks. Renault expects economic conditions to remain difficult in 2010 with a potential 10% market contraction in Europe. Among four key levers in 2010, the prolonged cost reduction policy will include approximately 4000 staff cut and, R&D expenses kept at less than 10% of revenues
AIR LIQUIDE announced the completion of its majority acquisition of DinnoSanté, specialized in the equipment and home monitoring of patients with diabetes. With a work force of 90 employees, the newly acquired French company supplies nearly 2300 chronic diabetes patients with equipment including insulin pumps and glucose meters. In addition, patients benefit from personalized training and regular follow-up. This acquisition reinforces the Group’s offer in taking charge of pathologies that are treatable at home such as sleep apnea, and chronic respiratory disease. In France, and according to Air Liquide, more than 2.5 million people are being treated for diabetes, a figure that is constantly rising
PSA PEUGEOT financial result for the fiscal year 2009 posted €1.1 billion net loss with worldwide sales down 2.2% to over 3 million vehicles sold compared with -3.1% market decline. Group revenues fell -10.9% to €48.417 billion but picked up in the second half of the year +2.6%. Recurring operating loss of €689 million for the full year. The Group’s leading market share in the Light Commercial Vehicle market rose to 22.2% from 19.7%. Inventory was reduced by 30% to 440 000 vehicles compared with 628 000 units at the beginning of the year. The Group remains confident for 2010 and projects its European market share will increase due to continued momentum of new model launches. However, PSA Peugeot anticipates that the car market may decline by 9% in Europe. Outside Europe, and according to the Group, Chinese market growth should remain at double-digit, while the Latin American market is expected to return to growth
DANONE announced fiscal year 2009 sales up +3.2% to € 15 billion and underlying net income +11.4% to € 1. 4 billion. Per business lines, sales of Fresh Dairy rose +1.6% to € 8. 5 billion, Waters +1% to € 2.6 billion, Baby Nutrition +7.9% to € 3 billion and Medical Nutrition + 11.4% to € 925 million. Per region, while sales in Europe fell -0.3% to € 9 billion, in Asia, sales shot up +11% to € 1.9 billion, and +8% in the rest of the world to € 4.1 billion
EDF reported +3.9% sales increase for the fiscal year 2009 to € 66.3 billion and net income +12.1% to € 3.9 billion, above analysts expectations. Ebitda rose +22.7% to € 17.5 billion and operating income +27.8% to € 10 billion. In France, the availability factor of the French nuclear fleet deteriorated, 78% in 2009, down from 79.2% in 2008 which led the Group to increase net purchases in electricity wholesale markets to 24.1 TWh in 2009 compared with 5.8 Twh in 2008. Sales fell -0.8% to € 34 billion with 9% decline in Ebitda to € 9.4 billion (excluding the extension of TarTam mechanism) and reflected lower nuclear generation to 390 Twh (from 418 Twh in 2008) due to strikes, incidents impact leading to -6 Twh and unusually cold temperatures with -3 Twh impact. International and other activities posted sales up 9.3% to € 32.3 billion or 48.7% of Group’s sales. EBITDA rose sharply, +53.5%, due to the integration of British Energy as well as 18.8% organic growth. Sales in Europe performed unevenly: in the UK, British Energy recorded +36% increase in nuclear generation to 54.5 TWh, sales climbed +33.9% to € 11 billion, and EBITDA tripled to € 3.1 billion compared with a year earlier. Inversely in Germany, EnBW’s contribution to the Group’s sales decreased by 3.6% to € 7.2 billion as consumption of industrial customers in the region of Baden Württemberg fell substantially. In Italy, Group’s sales declined -12.5% to € 4.9 billion while Central and eastern Europe reported sales up 12.9% to € 3.4 billion, including contributions from the consolidations of SPE and Constellation’s nuclear businesses (CENG) since November 2009. EDF expects electricity demand to stabilize in its major markets along with price increases in France and Germany in particular
DEXIA Bank announced that the European Commission has accepted and agreed with its restructuring plan which includes 15% cost reduction of € 600 million up to the year 2011, including € 200 million in 2009, and the sale of Dexia Crediop, Dexia Sabadell, and Dexia Banka Slovensko in the next three years. The Bank was bailed out in September 2008 during the financial crisis with € 6bn capital increase involving the French, Belgian and Luxembourg governments along with the Caisse des Dépôts et Consignations. Dexia’s agreed restructuring plan comprises the end of long term debt issuance that are state guaranteed after 30 June 2010, and for short term debt issuance after May 31 2010. Until the end of the year 2011, the Bank has agreed not to engage into any financial institution acquisition, and equities will solely be paid in lieu of earnings per share. The Group will focus in the coming year on its main business lines which include public and wholesale banking especially in France, Belgium and related markets, retail and commercial banking, in Belgium, Luxembourg and in Turkey, asset management, insurance and services to investors
AIR FRANCE - KLM passenger traffic fell -3.2% in January year-on-year with capacity down -3.4% and load factor of 78% (76.6% last year). Of the Group’s total 5.1 million passengers, the Asia/Pacific route performed best , with passenger traffic up +1% compared with Europe (including France) -4.4%, the Americas -0.5%, Africa/Middle East -2.2%, and Caribbean/ Indian,Ocean -2.2%. The load factor decreased by 3% on this last route, but increased +1% on the Asia/Pacific, +3.5% on the Americas, +1.8% Europe, and +0.2% Africa/Middle East. Traffic on cargo activities rose +2% and an improved load factor on Asia/Pacific route +19% the Americas +6.5%, Africa/Middle East +1.1% unlike Europe’s -0.4% and Caribbean/Indian, Ocean -3.3%
The European Central Bank (ECB) January quarterly survey revealed that an increasing number of SMEs, 49%, encountered difficulties in the second quarter of last year over loan financing from banks unlike large companies. The ECB January survey over banks lending criteria also showed that credit lines to large enterprises in the Euro area over the next twelve months will remain tight as major factors, companies’ balance sheets and lenders’ interest rates margins, remain paramount to financing. According to the survey, banks’ perception of risk of large enterprises, unlike SMEs, account for the second most important factor affecting credit standards, at levels similar to consumer credit and other lending to households. Overall however, credit lines approvals for large enterprises in the first quarter of 2010 are expected to soften, compared with Q4/09 with long term loans recording a substantial increase in demand according to bankers surveyed. On the same period, companies debt restructuring, one of banks’ four major factors towards lending which includes fixed investments, inventories and working capital, M&A and corporate restructuring, rose considerably. As regards loans to households for house purchase and over the next three months, banks lending is expected to ease as bankers’ perception of risk has fallen noticeably along with margins on average and riskier loans. The survey also showed that competition from other banks and from non-banks remains a non-factor for bankers’ decisions and criteria towards lending to each consumers and enterprises of all sizes
IN THE NEWS
President Nicolas SARKOZY announced the cancellation of Haiti’s € 56 million French debt during his official visit in Port-au-Prince, the first such visit of a French president since the island’s independence in 1804, and declared that it is « for Haitians first to define a real national project.» The island’s capital city was devastated last month during a 7.0 magnitude earth quake. Haiti will benefit from € 326 million financial aid from France over the next two years
The European Parliament paid tribute on February 11th to Nelson MANDELA on the twentieth anniversary of his liberation from prison and recalled his role in the dismantling of apartheid. Mr. Mandela was the EU Parliament’s first winner of the Sakharov Prize for freedom of thought
A draft legislation adopted by Members of the European Parliament (MEPs) Women's Rights Committee proposes minimum maternity leave of 20 weeks in the European Union (currently at 14 weeks) and full payment along with entitlement to paid paternity leave of at least two weeks. If approved in plenary, the new legislation will lay down minimum rules at EU level although Member States may introduce or keep existing rules that are more favorable to workers than those laid down in the directive. The maternity leave rules also apply to domestic workers and self-employed workers and should also apply to parents who adopt a child under 12 months old according to the proposed directive. Fully paid additional maternity leave should be granted in specific situations such as premature childbirth, children with disabilities, mothers with disabilities, teenage mothers, multiple birth, and births occurring within 18 months of previous births. The Women's Rights Committee furthermore adopted amendments to ban the dismissal of pregnant workers from the beginning of a pregnancy to at least 6 months following the end of the maternity leave
A five-day air controllers strike against European Union plans to merge controllers services into one body disrupted traffic in the middle of winter-break at Orly and Roissy airports. Last month, the Cour des Comptes’ (equivalent Government Accountability Office) annual report concluded that air controllers work every other day for a maximum 8h15 hours a day, « an excessive shift » due to the high concentration required of them on the job, but underlined that although the shift length is above other EU controllers average, the « opacity » of a leave of absence system known as « clearances » among air controllers reduces substantially the actual number of days worked to « less than 100 days a year». According to the report, an incomplete roster dating back to 2006 was impossible to understand as regards the actual number of hours worked, « an unacceptable practice » likely to be prejudicial to safety in the sky
Pension reforms were debated with Union and Management representatives at the Elysée Palace’s launch of a Social Summit to prepare for the extension of the current legal retirement age of 60. A first report is to be produced by participants by April to allow for additional debates so as to allow for a white paper by mid September. Recent opinion polls revealed that an overwhelming majority of the work force, employees and white collars alike, thumb down future plans to extend the legal retirement age despite the obvious necessity to adapt pensions as is already the case throughout Europe. Eurobarometer’s poll published in January showed that of 1 078 people surveyed in France over European Employment and Social Policy, 64% « totally disagree » with the idea that in « our country« , in this case, France, « many people retire too early » , compared with 30% who « totally agree« . In the EU 27, 49% « totally disagree » and 43% « totally agree »
Over 10 million people are affected by poor housing and nearly 800 000 risk being evicted from their homes next March, when the legalized « winter truce » ends as a direct result of unpaid rent according to Abbé Pierre Association’s annual report. Due to the economic downturn and a dire labor market, nearly 400 000 jobless have lost all unemployment benefits. The report notes that an estimated 600 000 children are penalized with over crowded living conditions which systematically lead to poor academic records
Tahiti and Moorea island were put on red alert as hurricane Oli in Polynesia increased gales to over 250 km/h. The first such storm since 1997 forced the evacuation of over 4000 local residents
Heavy snow falls, up to 30 cm, disrupted traffic for three consecutive days in the Pas -de-Calais, (north east) from Feb 11th as artic weather engulfed cities and the countryside alike. Temperatures averaged -10C up the river Seine and icy roads left highways congested near and around Paris. The south east, Var and Paca departments (Provence Alpes Cote d’Azur) experienced snow falls, up to 10 cm, and EDF, the utilities company, announced power cuts to prevent total black out in the region as in the previous month. According to Meteo France, this winter which has already recorded three prolonged periods of cold snaps since last December is the coldest since 1987
Passenger car production in France fell -27.3% from January to September 2009 according to the European Car Manufacturers Association latest figures, and similarly in Europe where passenger car output decreased by 21.1% as a direct result of the economic downturn. In the European Union, 2.2 million workers are directly employed in the automotive industry, and an additional 9.8 million at subcontractors. Car fleet renewals implemented in 13 member states offset massive production gaps although total vehicle production in Europe decreased by 26% to 10.9 million vehicles compared with a year earlier on the same period. The trucks segment saw production melt, -66%, followed by vans -50%. Among the five member states with the largest vehicle production, the UK recorded the hardest output drop -43.8%. France‘s slipped -31.7%, Italy’s -26.4% Spain’s -25.1% and Germany’s -20.6%
Households finances in the Euro area remained tight in Q3/09 as real final consumption expenditure rose +0.5% while their savings rate, seasonally adjusted, fell by exactly the same percentage point to 15.8% nearly equal to Q1/09 at 15.7%, according to Eurostat latest figures. During the same summer months, households investment rate, seasonally adjusted edged at 9.1% from 9%, the lowest rates since 1999 at 10.1%. Of the gross disposable income components, compensation of employees received totaled € 1.1 billion, or -0.6% compared with Q3/08, the beginning of the financial crisis, but +0.5% compared with Q2/09 as additional lay-offs piled up. Net property income stayed quasi stable or -0.1% but fell -6.3% compared with a year earlier on the same period
The European Parliament rejected an interim agreement on banking data transfers to the US via the SWIFT network due to concerns for privacy, proportionality and reciprocity. The resolution rejecting the agreement was approved by 378 votes to 196, with 31 abstentions. The text signed between the US and the 27 EU Member states now stands legally void. Members of the European Parliament (MEPs) proposed to negotiate a new agreement. A « security gap » is unlikely since in 2010, new arrangements for judicial co-operation between the EU and the USA entered into force that grant access to targeted financial data, on request, via the national authorities.
Prior to the vote, the European Union’s Civil Liberties Committee had recommended Parliament to reject the EU’s interim agreement due to insufficient safeguard for EU citizens personal data protection. Among MEPs’ argument to reject the proposal, are basic data protection principles breaches as « citizens' rights over their own personal data, notably rights of access, rectification, compensation and redress, are also not adequately defined ». In addition, as is no currently the case, the data should be gathered "only for the purposes of fighting terrorism" and "the right balance" must be struck between security measures and the protection of civil liberties. In 2006, press reports had revealed that the US had demanded and accessed clients’ bank accounts and personal data in Switzerland for the purpose of fighting tax evasion, a move which caused furor in Europe. Two years later, media reports also revealed that SWIFT had set up a data storage centre for its European clients in Switzerland, which meant that intra-European data was stored only in Europe. Until then the data had also been kept on a server in the United States
EUROPOL announced the dismantling of an illegal print shop responsible for the production of counterfeit € 50 bank notes in Bogota, Columbia where value of over € 1.2 million fake were seized, along with 312 000 000 counterfeit Colombian pesos. The fake Euro notes were destined to be distributed in Europe. The agency also confiscated an offset machine, printing plates, a computer and other materials to be used for the production of counterfeit currency. The police operation was carried out jointly on 27 January by the Colombian National Police and supported by the Spanish Brigada de Investigacion del Banco de Espana (BIBE). A strategic cooperation agreement was signed between Colombia and Europol in February 2004 and since then several successful operations against international organized crime have been concluded
