Biz Watch

When the United Nations lifted sanctions against Libya on Sept. 12, some expected a quick inflow of investment to the longtime pariah state. There was money to be made, right? Would Muammar Gaddafi have spent billions to pay off terror victims if he didn't expect a return? But most of the interested players are already there. European oil companies — including France's Total, Spain's Repsol, Germany's Wintershall and Italy's Eni — maintained a dormant presence in Libya after U.N. sanctions were imposed in 1992 for Tripoli's suspected role in the 1988 Lockerbie bombing. They quickly revved up after sanctions were suspended in 1999, when Libya surrendered two suspects. That allowed Libya to export around 1.2 million barrels of oil per day — around 90% of it destined

INDICATORS Down With Price Rises Italian consumers boycotted shops in protest against perceived price hikes since the introduction of the euro last year. Consumers' groups claimed almost half of the country's shoppers took part, costing retailers an estimated €300 million. You Can't Clone Money PPL Therapeutics, the Scottish biotech firm that cloned Dolly the sheep in 1996, announced it would fold after years of losses. In Box Out U.K. mobile-phone retailer Phones 4u has banned staff from using e-mail, after workers complained that it hindered their efficiency.

for Europe. "The U.N. vote doesn't really change anything in terms of activity or investment," says Total spokeswoman Sarah Wachter. As for U.S. oil companies, they'd love to jump in, but are still barred by U.S. sanctions — which are unlikely to be lifted with an election on the way. — By Bruce Crumley and Adam Zagorin

We Owe You Money? Get In Line
Britons are famed for loving an orderly queue. But a new law may cause chaos in the ranks of those seeking to wring funds from insolvent firms. Unleashed last week, the Enterprise Act makes it harder for banks to push a firm into receivership (almost 20,000 U.K. businesses failed last year). Instead, it promotes the appointment of administrators acting on behalf of all creditors, in the U.S. style. This spells the end for the U.K. government's right to settle unpaid taxes before other creditors are reimbursed; 20% of a troubled firm's distributable assets are now earmarked for suppliers. Yet some question the move toward a "rescue culture." "This is a combination of a rogues' charter and a lawyers' delight," says Nicholas Hood of U.K. insolvency firm Begbies Traynor. "There'll be a high number of unscrupulous debt counselors bouncing firms into administration where it's not necessary." You can almost see the lawyers getting in line.

When Payoffs Don't Pay
A German court ordered Deutsche Bank CEO Josef Ackermann to stand trial for alleged breach of trust during Vodafone's 2000 takeover of German wireless operator Mannesmann. Ackermann, then a member of Mannesmann's supervisory board, was charged in February with sanctioning excessive payments to the firm's executives.

The Bottom Line
	For the moment, most Europeans who want to see an economic recovery will have to watch it on TV.
		KENNETH ROGOFF, the International Monetary Fund's chief economist, on the euro zone's role in the global economic recovery

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