segunda-feira, 20 de abril de 2009

Eurogroup chief predicts huge layoffs

ANDREW WILLIS

16.04.2009 @ 09:20 CET

The chairman of the 16-nation eurogroup, Jean-Claude Juncker, has warned that job losses will escalate this year despite measures taken by EU leaders in recent months to boost the economy.

"There's a risk of mass layoffs by the end of the year," he said while addressing a conference in Brussels on Wednesday (15 April) organised by European trade unions.

Competition for jobs in the EU is set to rise this year as layoffs increase (Photo: EUobserver)

Mr Juncker, who is also the prime minister of Luxembourg as well as chair of the eurogroup - the EU nations using the euro currency, urged world leaders to move ahead with reforms agreed at the recent G20 meeting in London, but said the EU may need to do more if current stimulus programmes prove insufficient.

"If by 2010, we see this is not enough, we will have to reconsider. Now to simply pour more resources in would be premature," he said.

However, he repeated the line iterated by many EU governments in recent months in the face of US calls for increased stimulus spending that a clear exit strategy is necessary.

"We are in the process of getting into a spiral of debt ... Let's not destroy what we have achieved in ten years. Inflation is a true danger," he said. "We don't have the right to pay off the debt on the shoulders of future generations."

A top priority now is to unblock the EU's malfunctioning financial system, he said, and in particular, action was needed to remove toxic assets held by European banks that are adding to the current uncertainty.

In Germany on Wednesday, European Central Bank governing council member and head of the Bundesbank Axel Weber said that the bank would outline a package of policy measures next month in order to stimulate the economy.

While the bank is largely predicted to cut interest rates further at its monthly meeting on 7 May, a string of comments by board members in recent weeks suggest the bank may also announce new unconventional policy measures to deal with the crisis. These could include the purchase of corporate debt.

But Mr Weber said any new ECB measures should first concentrate of helping European banks due to the systemic role they play in the EU's economy.

"Additional easing of refinancing by banks, for example in the form of extending maturities of liquidity operations, should have priority. Direct intervention into capital markets should take a back seat," he said.

Mr Weber also mirrored comments made by Mr Juncker regarding the need to rein in deficit spending.

"The call for more short-term state debt taking is not in my opinion warranted," he said.

"Germany could exceed the three percent limit this year, and in the coming year, we can count on an additional marked rise in deficit," he said, adding that as a result, the country would likely incur the EU's excessive deficit procedure for breaching maximum deficits allowed under EU rules.

Israel-Arab issue divides EU over anti-racism conference

VALENTINA POP

20.04.2009 @ 09:26 CET

Several EU countries are set to boycott a United Nations conference on racism for fear that it might turn into an anti-semitic platform for Iranian President Mahmoud Ahmadinejad.

Germany, Italy, Sweden and the Netherlands announced they would join a US-led boycott against the Durban Review Conference starting on Monday (20 April) in Geneva.

Jerusalem: Israel has called the UN conference on racism "a farce" (Photo: wikipedia)

The event is aimed at taking stock of progress in fighting racial discrimination, xenophobia and intolerance since the World Conference Against Racism in Durban, South Africa, which took place in 2001 and ended in disarray.

At the time, American and Israeli diplomats walked out of the conference because of attempts by some Arab countries to link Zionism and Israel to racism. Since then, the dispute has continued to hamper UN diplomatic attempts to agree to a global anti-racism statement.

Berlin said on Sunday it would not participate in an event that could be "abused as a platform for other interests."

Foreign minister Frank-Walter Steinmeier said he took the decision after consulting with other EU nations, and he urged those attending the conference to "stand up for the effective fight against racism and ethnic discrimination."

Italy, the Netherlands and Sweden have also decided not to send their ministers to the conference for similar reasons.

France, on the other hand, is planning to attend the event "in order to articulate its standpoint on human rights issues," a source close to President Nicolas Sarkozy's office told AFP.

Belgium said on Sunday it is urging fellow EU member states to attend the event "in large numbers" despite the boycott. "Consultations at the European level are underway," the Belgian foreign ministry said.

The Czech EU presidency, Great Britain and Ireland are also participating, but announced they would only send junior delegates.

Iranian President Mahmoud Ahmadinejad, who has in the past said Israel should "vanish from the page of time," arrived in Geneva on Sunday and was set to address the gathering on Monday afternoon.

On the same day, which marks Adolf Hitler's 120th birthday, several Holocaust commemoration events are to take place around the world, including a ceremony in Geneva attended by leading Jewish figures such as Nobel peace laureate Elie Wiesel.

Against this background, the Durban review conference was a "tragic farce," Israeli foreign ministry spokesman Yossi Levy said. "Officially it is aimed at denouncing racism, but it has invited a Holocaust denier who has called for the destruction of Israel," he added, referring to the Iranian leader.

US President Barack Obama said anti-Israeli language that was "oftentimes completely hypocritical and counterproductive" in the draft final communique had been the red line for his administration.

The UN High Commissioner for Human Rights, Navi Pillay, said she was "shocked and deeply disappointed" by Washington's decision to stay away.

Canada and Israel have said for months they would stay away. Australia also took a similar decision last week.

segunda-feira, 6 de abril de 2009

NATO talks on Rasmussen impact EU-Turkey relations

Summit chamber: Turkish President Abdullah Gul was not happy with the EU being brought up in NATO discussions (Photo: nato.org)

VALENTINA POP

04.04.2009 @ 21:52 CET

EUOBSERVER / STRASBOURG - NATO on Saturday (4 April) named Danish Prime Minister Anders Fogh Rasmussen as its new secretary general, overcoming Turkish opposition during difficult talks which caused fresh tension in EU-Turkey relations.

Turkish resistance to the Rasmussen nomination centered around his support for Danish media after newspapers published cartoons of Mohammed in 2006.

The stalemate saw EU enlargement commissioner Olli Rehn suggest to Finnish state broadcaster YLE that Ankara may be unfit to join the EU because it does not respect freedom of speech.

"This will surely raise questions amongst EU member states and citizens on how well Turkey has internalised such European values as freedom of expression," Mr Rehn said.

Politicians in the circle of German Chancellor Angela Merkel also attacked Turkey.

"Whoever puts Islamic propaganda above the future of NATO and our European system of values, has nothing to look for in the EU," Alexander Dobrint, the secretary general of Ms Merkel's sister party, the Christian-Social Union, told German press.

Turkish President Abdullah Gul did not take kindly to the remarks, calling the EU commissioner's intervention "unfortunate" and "unpleasant" and warning that it woud increase anti-EU sentiment in Turkey.

"This was a NATO, not an EU meeting and I shared this with European heads of state," Mr Gul said at a press conference after the NATO summit in Strasbourg. "Although there are several European members of NATO, you can't take a decision in the EU and impose it on NATO, these two can't be linked."

The Turkish president explained that promises made by US President Barack Obama, rather than the veiled threats on EU accession, finally secured Ankara's approval for the Danish appointment.

Obama-brokered deal

"I had a long bilateral meeting with Mr Obama which was very fruitful and our concerns were overcome and wishes respected. We then had a trilateral meeting with Mr Rasmussen," he said.

In return for backing down, Turkey is to get a newly-created post of deputy secretary general of NATO and several Turkish officers inside the alliance's military command.

For his part, the Danish PM took a conciliatory approach.

"I made it clear I will reach out to the Muslim world and I will make sure we will co-operate closely with Turkey," he told press in Strasbourg.

Mr Rasmussen also pledged to look into Danish-based Kurdish TV station Roj TV, which Ankara wants off the air.

"If Roj TV is involved in any terrorist activities, we will do everything to shut it down," he said.

Mr Rasmussen will go with Mr Obama to Ankara on Monday, where the pair will take place in a UN "Alliance of Civilisations" symposium on promoting inter-faith diaogue.

Forty five-year old liberal finance minister Lars Lokke Rasmussen is to take over as the new Danish PM at home.

Italian intermezzo

Turkey's hard bargaining saw some European leaders break wih protocol at the largely ceremonial 60th anniversary NATO summit.

Italian Prime Minister Silvio Berlusconi spent 40 minutes talking on his cell phone with his Turkish counterpart in Ankara about the Rasmussen problem, causing him to miss the family photo and a minute's silence for fallen NATO soldiers.

The Italian leader was so absorbed on the phone he forgot to walk up the red carpet to his waiting co-hostess Angela Merkel, who eventually shrugged her shoulders and carried on with the ceremony.

Asked later if the phone conversation had helped in any way, Turkish president Gul smiled and said that "[Mr Berlusconi] really wanted to get the result and worked very hard for it."

Obama, Sarkozy mark France's full return to NATO

VALENTINA POP

03.04.2009 @ 17:46 CET

EUOBSERVER / STRASBOURG – France's full reintegration in NATO will strengthen the alliance, US president Barack Obama said on Friday (3 April) in Strasbourg.

"NATO was founded on the principle that European security was American security and vice versa. This pillar of US policy has not changed and we reaffirm it. With France's reintegration in the high structures of NATO, that principle will be upheld," Mr Obama said at a joint press conference with Nicolas Sarkozy.

President Barack Obama welcomes France's reintegration in NATO military command (Photo: Service Photo Elysee - P.Segrette)

The French Parliament last month voted in favour of France's full reintegration in NATO, ending a 43 year-old rift created by Charles de Gaulle who pulled out from the alliance's military in protest over what he perceived as US domination of NATO policies.

"France has sent soldiers in NATO-led military operations, but has nobody in the committees designing the policies who affect our troops," Mr Sarkozy said as an argument in favour of his country's rejoining the alliance – a move which is still controversial in France, even within his own centre-right party.

Mr Sarkozy carefully orchestrated France's full return to NATO's fold to coincide

with NATO's 60th anniversary summit, co-hosted by the French city of Strasbourg and the two German cities of Baden-Baden and Kehl, across the river Rhine, to symbolise Franco-German reconciliation brought about by NATO.

Visibly discomforted by his shorter stature when standing next to Barack Obama, Mr Sarkozy was the first to rush up the stairs to the Rohan palace in the historic centre of Strasbourg after a family picture with his US counterpart, his wife Michelle and the French first lady Carla Bruni (who was wearing flat shoes for the event).

Mr Obama and Mr Sarkozy later on headed off to Baden-Baden where the now 28 NATO delegations, including new members Albania and Croatia, are meeting in three parallel dinners – heads of state, foreign ministers and defence.

The new strategy for Afghanistan, NATO-Russia relations and the likely appointment of Danish Prime Minister Anders Fogh Rasmussen as NATO's next secretary general are on the agenda.

On Saturday morning, NATO leaders are set to cross the "Europe bridge" between Strasbourg and Kehl, highlighting the alliance's role in reuniting Europe. They are then set to resume the NATO working session in Strasbourg and finish off early afternoon.

Meanwhile, security measures were tightened up in Strasbourg, but protests remained calm and peaceful on Friday. One day before, riot police clashed with protesters and arrested 300 people, of which some 100 were still detained on Friday after they destroyed telephone booths and attempted to build barricades.

No extra French troops for Afghanistan

The terrorist threat coming out of Afghanistan is more likely to target Europe than the US, Mr Obama said while stressing the need for broader engagement in Afghanistan, where Al Qaeda is still recruiting.

Mr Sarkozy, however, ruled out sending any supplementary troops to Afghanistan, stressing that France had already increased the number of soldiers last year.

Instead, France is committed to doing more on the civilian side and contributing military police (gendarmes) in the run up to the 20 August Afghan presidential elections.

Despite previous calls from the Obama administration for increased burden sharing in Afghanistan, where the main efforts are being made by US, British and Canadian troops, the US president said he was not disappointed by France not committing more troops.

He praised Mr Sarkozy for his "energy in foreign policy" and said France was not a country which he had to "drag kicking and screaming into Afghanistan," because it recognised that the threat was real and not only directed against the US.

The UK, however, is set to commit extra troops, news agencies reported, as Gordon Brown travelled to Baden-Baden on Friday night.

Engaging Russia without endangering Eastern Europe

It is important for NATO allies to re-engage with Russia, while understanding that the independence of neighbouring states had to be respected, Mr Obama said in Strasbourg. The bilateral meeting he had in London a day earlier with Russian president Dmitry Medvedev had been "terrific," he said.

"We had a dialogue about how to maintain stability while respecting the autonomy of countries. I was a critic of Russia's invasion of Georgia and continue to believe that despite Mr Sarkozy's efforts in brokering the ceasefire agreement we have not seen a stabilisation of the situation," Mr Obama said.

"Our clear message to Russia was that we want to work with them, but they can't go back to the old way of doing business."

Mr Sarkozy also said that Russia needed to understand that the USSR is over and that there are no satellite states any longer. "But we are not going to reinvent the Cold War and it is excellent what Mr Obama is saying, that we need to re-engage with Russia," he added.

Despite Russian criticism reiterated on Friday, NATO leaders are set to reaffirm the commitment made at the last summit in Bucharest last year, that Ukraine and Georgia would become members when they meet the criteria.

Speaking on Friday to university students in London, Russian president Dmitry Medvedev said that "before making decisions about expanding the bloc, one must think about the consequences."

"I said this frankly to my new comrade, US president Barack Obama. NATO needs to think about preserving its unity and not harming relations with its neighbours."

EU divided on financial oversight rules

ELITSA VUCHEVA

06.04.2009 @ 09:26 CET

An informal meeting of EU economy and finance ministers in Prague over the weekend highlighted divisions in the bloc when it comes to implementing some of the reforms of the global financial system agreed just days before at the G20 summit in London.

The 27 ministers on Saturday (4 April) reiterated the need to press ahead with recommendations made by a high-level EU panel headed by former International Monetary Fund chief Jacques de La Rosiere calling for a new financial watchdog to prevent future financial crises, which would be chaired by the European Central Bank.

Not being part of the eurozone, London is reluctant to give too much oversight power to the ECB (Photo: EUobserver)

But some countries, notably Britain, expressed reservations about how far this joint oversight should go.

"The ECB clearly has an important role to play in strengthening and enhancing macro-prudential supervision, but the precise role has yet to be determined," UK financial services secretary Paul Myners was reported as saying by Bloomberg.

French finance minister Christine Lagarde explained that Britain – which is not among the 16 EU states using the euro – was especially concerned about the ECB being in charge.

"We have to find a joint solution because we can't leave London out of the system. London's role in finance is too big," she was reported by AFP as saying.

ECB chief Jean-Claude Trichet also tried to reassure the British, stressing that all EU central banks would still have a place within the new financial watchdog.

"I insisted on the need to be clear about the fact that the new risk council would not only be the eurosystem but the system of all the European central banks ... including those that are not members of the eurozone," Mr Trichet said.

British premier Gordon Brown is to meet Bank of England Governor Mervyn King on Monday in order to discuss how the country should implement the new financial rules laid out by the G20 leaders.

"The British have a somewhat different view," Dutch state secretary of finance Jan Kees de Jager said in Prague.

"We hope that in the next couple of weeks these hesitations will be overcome," he added.

Luxembourg, Belgium unhappy with OECD list

Meanwhile, EU countries that the Organisation for Economic Cooperation and Development (OECD) last week included on a "grey" list of countries that have agreed to better implement international banking transparency standards, but have not yet done so, expressed their dissatisfaction with the move on Friday.

"I think that the treatment given to some countries is a bit incomprehensible," Luxembourg prime minister Jean-Claude Juncker said.

"We will negotiate double-taxation agreements. When we do that we will disappear from this list," he added.

For his part, Belgian finance minister Didier Reynders said that it was not "very pleasant to be on a list that also included tax havens." He also suggested Belgium could soon be taken from the list after it signs agreements on financial information exchange with a number of countries.

During their meeting last week, G20 leaders vowed to crack down on tax havens and bank secrecy.

Italy earthquake leaves 150 dead and scores more trapped under rubble

• Rescue effort hampered by debris blocking roads
• Up to 15,000 buildings destroyed by quake

Italian rescue workers carry body from rubble after an earthquake in the Italian village of Onna

Italian rescue workers carry a body. Photograph: Chris Helgren/Reuters

Rescue workers in central Italy were working last night to free hundreds of people feared trapped under rubble, after the deadliest earthquake to strike the country in three decades caused widespread destruction across the mountainous region of Abruzzo.

Silvio Berlusconi, the Italian prime minister, declared a state of emergency and cancelled a trip to Russia to travel to the epicentre of Monday morning's quake, close to the medieval city of L'Aquila, 60 miles north-east of Rome. He said that in some cases rescuers were digging with their bare hands.

Having climbed steadily all day yesterday, the official total last night stood at more than 150 dead and more than 1,500 injured. Hoever unconfirmed reports quoting hospital sources last night put the total at more than 200.

Between 10,000 and 15,000 buildings had collapsed in the quake, an official at the local civil protection agency said, and at least 50,000 people are homeless.

Gianfranco Fini, speaker of the lower house of parliament, said some small towns had been "virtually destroyed in their entirety". Early rescue efforts were hampered by rubble strewn across roads and the collapse of several bridges.

"We will work for the next 48 hours without any stop, because we have to save lives," Francesco Rocca, the head of Italy's Red Cross, told BBC television. "We estimate that hundreds of people could still be alive under the buildings."

The quake, measured at 6.3 on the Richter scale by the US Geological Survey, struck at 3.32am local time and lasted for "20 interminable seconds", said the mayor of L'Aquila, Massimo Cialente, who described its effects as "terrible, really terrible".

Streets in the city were carpeted with thick dust yesterday, as helicopters hovered overhead and sirens screamed. Part of a university residence and a hotel were destroyed, and the quake brought down the bell tower of a church in the centre of the city. One local man, standing next to a head-high pile of rubble, said: "This building was four storeys high."

Scores of people lined up with suitcases on the roads leading out of the city, waiting to be evacuated from the area. Others, dazed, huddled in blankets close to the ruins of their homes, or assisted the well-organised rescue effort in a desperate hunt for missing relatives. Frequent aftershocks struck the town throughout the day, provoking cries of alarm.

"I woke up hearing what sounded like a bomb," said L'Aquila resident Angela Palumbo, 87. "We managed to escape with things falling all around us. Everything was shaking, furniture falling. I don't remember ever seeing anything like this in my life."

"Our house was destroyed but we got out," said Marion Cadman, a teacher at the English school of L'Aquila. "Now we're in limbo and just glad to have a tent.

"There was a first tremor around a quarter to 11 and we considered going out, but we didn't as we had become so used to them. Then the top floor fell down on the lower one and the corridor was smashed. Our 18-year-old daughter got under the bed as she had been trained to do and we got out before the next big one. We will spend the night in someone's garden. I don't think I will be sleeping between four walls for some time."

Graziella Fantasia, also a teacher in the city, said her family had lost two houses, one in the suburbs of L'Aquila and one in a nearby village. "We have no homes. Now we are waiting because the earth is still moving. We will spend the night in the village where it is better, but it's not safe to stay in houses. A lot of people are in tents. Wherever there is open space there are people and lots of tents."

Dozens of remote villages in the area were also affected, with at least 10 reported killed in the village of Onna. "Almost all the old village is destroyed, 99% of it," a man in Tempera, a few miles to the east of L'Aquila, told the Guardian. "We have already found 10 bodies."

Berlusconi said that 4,000 hotel rooms had been requisitioned along the Adriatic coast and that 20,000 beds in tents were being provided, while stadiums were also being prepared. No one would be allowed to stay in damaged buildings because of the risk of further quakes, he said. Field hospitals were set up after part of L'Aquila's hospital was deemed unsafe and had to be evacuated. More than 5,000 emergency workers were involved in the rescue effort, the prime minister said, adding: "I want to say something important: no one will be abandoned to their fate."

The EU offered immediate assistance, as did Russia and Israel, but an Italian government spokesman said the situation was under control at present. The foreign secretary, David Miliband, said Britain stood "ready to do what we can".

Berlusconi said he would finalise his funding plans last night, but indicated that he planned to seek assistance from an EU fund for disaster relief.

A number of British aid agencies said they had received no requests for aid, but were monitoring the situation and were ready to respond. Pete Garratt, relief operations manager with the British Red Cross, said its Italian counterpart had "significant resources in emergency response".

The earthquake is the worst to hit Italy since 1980, when 2,735 died in a quake measuring 6.5 that struck close to Salerno in southern Italy, and caused widespread damage in nearby Naples. That disaster prompted the introduction of new regulations designed to strengthen constructions in the event of an earthquake. Many of the buildings destroyed in yesterday's tremor appeared to have been earlier, dating from the 1960s and 1970s or, in remote villages, to be medieval structures.

There were questions yesterday about how so many buildings could have been destroyed. Gian Michele Calvi, an earthquake expert at the University of Pavia, said that Italy was in the habit of forgetting lessons. "This country is reminded of the risk of earthquakes only when it finds itself under the rubble," he told Corriere della Sera. "The fact that two of three operating rooms at L'Aquila hospital are no longer usable is something not worthy of a civilised country."

domingo, 5 de abril de 2009

Mixed reactions to G20 outcome

The final communique from the G20 summit in London has been hailed by participants, but has been met with a mixed reaction from other politicians, trade unionists and activists alike.

Barak Obama
Barack Obama: The London summit was historic

US President Barack Obama described it as "a turning point in our pursuit of global economic recovery." He said it was historic "because of the size and the scope of the challenge that we face and because of the timeliness and the magnitude of our response".

German Chancellor Angela Merkel called the outcome "a very, very good, almost historic compromise" that would give the world "a clear financial" architecture.

French President Nicolas Sarkozy said the deal was "unprecedented". He believed "a page has been turned" in the history of global capitalism.

'A bitter pill to swallow'

But rock star and anti-poverty campaigner Bob Geldof said the deal raised several issues. "A key question the African delegation is asking is whether this will be real new money for their countries, and will it be grants or expensive loans?"

David Cameron
David Cameron: G20 doesn't go far enough

Conservative leader David Cameron welcomed some of the measures, but worried they did not go far enough. "Giving more money to the IMF to help countries in trouble, that is right; not going further on trade and getting the Doha round started with a timetable, I think that's wrong.

The outcome was a "bitter pill to swallow" for Juliam Oram from the World Development Movement, who complained the world leaders had missed a historic opportunity to launch a global recovery plan. "What's missing," he said, "is a global green new deal that puts the interests of poor people and the environment at the heart of international trade and finance."

Brendan Barber
Brendan Barber: The summit has delivered real progress

'Just the beginning'

"This summit has delivered real progress in crucial areas with tighter regulation of the financial system," according to TUC General Secretary Brendan Barber, who applauded the crackdown on tax havens and support for the poorest countries. "These mark a break with the failed policies of previous decades. "

"The deal contains some very welcome measures but is, as a whole, insufficient to meet the challenges facing the global economy," said Grahame Smith, general secretary of the Scottish TUC. "The failure to agree a co-ordinated global stimulus package is deeply disappointing,"

"Nobody should imagine this summit is anything more than a beginning," said Adrian Lovett, Save the Children's director of campaigns. "A communique feeds no-one and words alone do not save a child's life... Everything now depends on what those leaders do next."


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