NEWS,20.05.2013

Bird flu costs China industry $65bn

China's human H7N9 bird flu outbreak has cost the country's poultry industry more than 400 billion yuan ($65bn) as consumers shun chicken, government officials said according to state media Monday.
The sector has been losing an average of one billion yuan a day since the end of March, the Beijing Times said, citing Li Xirong, head of the National Animal Husbandry Service.
H7N9 avian influenza has infected 130 people in China, killing 35, since it was found in humans for the first time, according to latest official data.
Poultry sales have tumbled and prices plunged, Li said, causing major financial problems and job losses as a result.
Another agriculture ministry official, Wang Zongli, said government agencies should set a good example for the public by treating "poultry products in a correct way", the report added.
In a stunt to boost confidence, officials and poultry business leaders in the eastern province of Shandong held a widely reported all-chicken lunch last week, according to Chinese media.
China has seen several food safety scares in recent years, including one in which the industrial chemical melamine was added to dairy products in 2008, killing at least six babies and making 300 000 ill.

US to keep close eye on anti-Semitism

The state department has appointed a special envoy to monitor and combat anti-Semitism as a new report documents a global increase in incidents of anti-Semitism and Holocaust denial.

Ira Forman, former CEO of the National Jewish Democratic Council, was chosen as special envoy as the state department released its annual report on religious freedom around the world.
The report said expressions of anti-Semitism by government officials, religious leaders and the media were of great concern, particularly in Venezuela, Egypt and Iran.
At times, the report said, such statements led to desecration and violence.
Secretary of State John Kerry called the report a "clear-eyed, objective look at the state of religious freedom around the world" and said that in some cases, the report criticises US allies and would-be allies.

Russia foils terror attack on Moscow

Russian security services said on Monday they had foiled a terror attack on Moscow, killing two of the plotters and arresting another.
"Our forceful actions prevented an attempted act of terror in the capital," the National Anti-Terror Committee said in a statement.
The statement said the men, all three of them ethnic Russians, were detected on the outskirts of Moscow. A gunfight erupted during their attempted arrest which left a Russian federal security official lightly injured.
The committee added that all three men are suspected of having received their training in the border region between Pakistan and Afghanistan.
The Kremlin said that Russian President Vladimir Putin has been personally informed about the foiled plot.

Republicans eye White House amid scandal

Scandals dogging President Barack Obama are a political gift to Republicans, who could use some good luck after recent election losses.

It's not clear, however, how Republicans can best capitalise on Democrats' woes.
The White House's scandal problems offer a big, enticing target.
Congressional Republicans have ripped into the ousted head of the Internal Revenue Service (IRS), who apologised last week for the tax agency's heightened scrutiny of tea party affiliates and other conservative groups seeking tax-exempt status.
Republicans have been equally indignant in ongoing inquiries into the administration's role in last September's terrorist attack in Benghazi, Libya, which killed four US officials, including an ambassador.
Another controversy now dogging the White House - the justice department's secret seizure of AP’s phone records in a security leak investigation - has thus far stirred less emotion and partisanship in Washington.
An ‘inept’ administration
Taken together, Republicans say, these three controversies portray a rapaciously political and inept administration.
That could be a powerful message in next year's congressional elections, and perhaps in the 2016 presidential race.
"I think people are beginning to think, 'Is anybody running the government up there?'" said Congressman Tom Cole, a close ally of House of Representatives Speaker John Boehner. "Incompetence, detachment, lack of oversight. I think the damage is going to be real and lasting for the president."
Last November's election dynamics that led to Obama's re-election and Democratic gains in Congress complicate the picture, however, and some Republican leaders are urging a bit of restraint in exploiting the White House's new weaknesses.
Party leaders wince when their more zealous colleagues talk of trying to impeach Obama and remove him from office.
Immigration reform
Some Republicans would like to deny Obama a legacy-enhancing prize like passing an overhaul of US immigration laws, one of Obama's biggest second-term goals.
But party strategists say Republicans may need immigration reform more than Democrats do.
Some conservatives, like rising star Senator Marco Rubio of Florida, are urging their party to embrace an overhaul, including a path to citizenship for 11 million immigrants living illegally in the United States.
Hispanics are America's largest minority group and one that is steadily making up a bigger share of the electorate.
They overwhelmingly backed Obama in both his elections, and the trend might worsen for Republicans if they don't show greater interest in Latinos' concerns. For many, that includes major changes to immigration laws.
In the end, the scandals - titillating as they are inside Washington - may have surprisingly little impact on immigration legislation and other bills in Congress.
Boehner, asked on Thursday how the Republicans' apparent momentum might influence legislation, said: "I don't expect that it will."
Tea party
The controversies have managed to reignite the limited-government tea party movement, whose influence in 2012 had waned compared to its muscular role in 2010.
Tea party groups have found new political fuel, especially in the IRS scandal that largely centres on such conservative groups, and are flooding mail boxes with fiery fundraising letters and renewed calls to arms.
Democrats hope conservatives overplay their hands. Even if tea party activists boost Republican turnout in next year's nonpresidential elections, they could complicate the Republican Party's need to woo a wider audience to win presidential elections in 2016 and beyond. Republicans have lost the popular vote in five of the last six presidential elections.
A Quinnipiac University poll this spring found that 24% of Americans view the tea party movement favourably, and 43% view it unfavourably.
Scandals
Democrats love to remind Republicans of their partisan excess in 1998, when the House's impeachment of President Bill Clinton for trying to cover up an affair with an intern struck millions of Americans as political overkill.
Republicans lost House seats that year, costing Speaker Newt Gingrich his leadership post. The Senate acquitted the president.
Boehner and other party leaders are keenly aware that Republicans can overdo their attacks, and even build sympathy for Obama, if their criticisms appear nakedly political or not supported by facts, said Cole, the Republican congressman.
Congressman Jack Kingston of Georgia said he hopes the scandals will increase public attention on Congress, enabling Republicans to highlight an agenda he thinks voters will embrace.
"The scandals, they're not your ticket to the dance," said Kingston, who is running for the Senate in a crowded Republican field.
"They are a reason to have people look at your party. And then, if you have good private-sector job ideas, and balancing the budget, then I think people will vote for you."

Israel MP speaks of removing settlers

Finance Minister Yair Lapid, whose new centrist party is the second largest in Israel's government, said on Monday thousands of Jewish settlers would have to be removed from occupied land under any peace deal with the Palestinians.

But, echoing Prime Minister Benjamin Netanyahu's position, Lapid said Israel intended to hold onto major settlement blocs in the West Bank when final borders are set in the six-decade-old Israeli-Palestinian conflict.

"It's heartbreaking. We will have to remove tens of thousands, not just from their homes, but from their dreams," he said, speaking at a business conference in Tel Aviv. But, he added: "The settlement blocs will remain in Israel."

Lapid did not say which settlements he felt would need to be evacuated. About 80% of 340 000 settlers in the West Bank live in large clusters near Jerusalem and central Israel.

Lapid's Yesh Atid party soared to a surprising second place finish in the January general election and joined the right-wing Netanyahu's coalition.

The former TV news anchor's pre-election promise to partner with Netanyahu only if Israel entered into negotiations with the Palestinians raised hopes among Western powers that Lapid could push the premier into peacemaking concessions.

'Meaningful compromise'

US-brokered peace talks broke down in 2010 in a dispute over continuing Israeli settlement construction in the West Bank. Palestinians have demanded a settlement freeze as a condition for returning to the negotiations.

Netanyahu, speaking in general terms, has said that Israel is prepared for a "meaningful compromise" with the Palestinians, noting that it has withdrawn from occupied territory in the past, such as the Gaza Strip in 2005 and south Lebanon in 2000.

But he has rejected any Israeli return to the lines that existed before Israel captured the West Bank, Gaza Strip and East Jerusalem in the 1967 Middle East war, calling those boundaries indefensible.

Palestinians seek to establish a state in the West Bank and Gaza with East Jerusalem as its capital. About 500 000 Israelis have settled in the West Bank and East Jerusalem. About 2.7 million Palestinians live in those areas.

Lapid, speaking just days before US Secretary of State John Kerry returns to the region to try to restart negotiations, questioned Palestinian leaders' commitment to pursuing peace.

"Abu Mazen [Palestinian President Mahmoud Abbas] is one of the founders of the Palestinian victimhood doctrine and at this stage I do not see him taking one step in our direction," Lapid said.

He was referring to the view of some Israelis that Palestinian leaders focus more on highlighting Palestinian suffering at Israel's hands than on making compromises that might hasten the establishment of an independent state.

Kerry is to meet separately with Netanyahu and Abbas in Jerusalem and the West Bank city of Ramallah on Thursday and Friday.

Israel cancels Unesco mission to Jerusalem

Israel announced on Monday it was calling off a United Nations investigative mission to the Old City in annexed east Jerusalem because of Palestinian efforts to politicise the visit.

"Israel has cancelled the delegation," which was due to have arrived the same day, a foreign ministry official said.

"The Palestinians were not respecting the understandings. The visit was supposed to be professional, [but] they were taking measures that showed they were politicising the event and not letting the delegation focus on professional sides of it," the official said.

Israel in April agreed that the UN Educational, Scientific and Cultural Organisation (Unesco) could assess the state of the Old City of Jerusalem, the first such monitoring mission since 2004, following pressure from Jordan and the Palestinians, who became members of the organisation in 2011.

But ahead of the start of the delegation's work, the Palestinians were trying to "politicise" it, Israel said, contrary to understandings reached by the sides, and to change the action plan Unesco decided upon in 2010.

"Palestinian foreign minister Riad Malki recently said they considered the mission a 'commission of inquiry'," the official said, "and said they would discuss political issues with the mission."

"The Palestinians are also pushing for the delegation to visit the Temple Mount," which is revered as Judaism's most sacred place, said the official, using the Israeli term for the complex known to Muslims as Al-Haram Al-Sharif that houses the Al-Aqsa Mosque.

Cultural and religious heritage is a highly politicised issue for Israel and the Palestinians.

In March, the Palestinian Authority confirmed a verbal agreement dating back to 1924 giving Jordan custodianship over Muslim and Christian sites in Jerusalem, whose eastern sector Israel seized in the 1967 Middle East war.

NEWS,28.03.2013

Putin orders surprise military exercises

Russian President Vladimir Putin on Thursday ordered surprise military exercises in the Black Sea region involving 7 000 troops and dozens of ships to test the army's battle readiness, the Kremlin said. In typical Putin style, the order was presented to the Defence Minister Sergei Shoigu in a sealed envelope in the middle of the night at 04:00, with the drills to start immediately.Putin's spokesperson Dmitry Peskov indicated the order was aimed at testing out the battle readiness of the Russian armed forces and said Moscow was not obliged to warn its partners of the plan."Today at 04:00 am the president of the Russian Federation and supreme military commander Putin gave the order to the defence minister to begin major military exercises in the Black Sea region," Peskov said."We are talking about major exercises, intended as a check," he added in a statement carried by Russian news agencies. He said the exercises would involve 36 ships and up to 7 000 troops.A defence ministry source told the state RIA Novosti news agency that the military drills, which would involve live firing, were already under way and would be wrapped up by the end of the week.Peskov said Putin had already warned the armed forces that they would be subject to sudden checks of their battle preparedness."If we remember what the president said at the council of the defence ministry a little time ago, then we will remember his words that the practice of sudden checks will continue," Peskov added.Putin drew up the sudden order overnight while flying home from South Africa where he attended the summit of Brics emerging economies in Durban.Peskov said 36 ships from the Russian Black Sea Fleet's base in the Ukrainian Crimean city of Sevastopol and the Russian port of Novorossiisk would be involved in the exercises.Aviation, paratroopers and special forces would also take part, Peskov said."According to international practice, exercises involving up to 7 000 people do not require us to inform our partners in advance," he said.The defence ministry's chief spokesperson Igor Konashenkov told RIA Novosti that the drills would involve 7 000 troops, up to 20 military jets and helicopters and 50 pieces of artillery.Key littoral states on the Black Sea include Turkey, Ukraine and Russia's foe Georgia with whom Moscow fought a brief war in 2008. EU members Bulgaria and Romania also have a Black Sea coastline. Peskov said the exercises would take place on three military test ranges on Russian territory.Military reformRussia embarked on a major campaign of military reform after its war with Georgia showed up weaknesses in the reactivity of the armed forces despite the military victory over Tbilisi.The government is seeking to make the army more responsive to the demands of modern warfare by modernising technology and shaking up command structures. Independent military analyst Alexander Golts said that as long as the element of surprise was genuine, the exercises were a good idea "to test the battle readiness of the army".Analyst Pavel Felgenhauer, a military commentator for the opposition Novaya Gazeta newspaper, said Putin was keen to make another display of Russian military might to the West."This is sabre rattling in the place nearest [to Europe] to make a demonstration of our intentions," he said.The exercises represent a major test for Shoigu, one of Putin's closest allies who became defence minister late last year after previous incumbent Anatoly Serdyukov, the architect of the military reform, was implicated in a graft scandal.RIA Novosti said that the manoeuvres come after a similar sudden exercise was ordered in February in Russia's central and southern regions that was the first unscheduled check of the armed forces in 20 years. After those exercises, Russia's top general Valery Gerasimov said a number of systemic problems and shortcomings of military hardware had been uncovered.

Kremlin watchdog slams NGO raids

Members of Kremlin's own rights council on Thursday denounced "unprecedented" raids on activist groups, saying the searches were aimed at paralysing their work and muting their role as a rare critical voice in Russia. Russian prosecutors and tax inspectors have in recent weeks staged a wave of searches of at least 100 leading Russian and foreign non-governmental organisations (NGOs), including Human Rights Watch and Amnesty International."A mass campaign of searches of NGOs is unprecedented in the last 25 years," said Sergei Krivenko, a top official at Memorial rights group and a member of the Kremlin's rights council that advises President Vladimir Putin on rights.He compared the raids to the pressure on civil society under Soviet dictator Joseph Stalin."It can only be compared with a campaign of 1929 when religious organisations were shut down en masse and 1937-1938, when all foreign organisations were closed down," Krivenko, whose group was searched for several days, told a news conference.Pavel Chikov, head of Agora rights association, who is also a member of the Kremlin's rights council, told the same news conference that so far a hundred groups from 25 regions across Russia have reported searches.The raids are being spearheaded by prosecutors and involve members of the FSB security service, police and even Russia's consumer rights watchdog Rospotrebnadzor, he added."First and foremost prosecutors are interested in non-governmental organisations involved in political activities, protest activities, criticism of the authorities and NGOs with foreign financing," he told reporters."Their possible aim is to paralyse NGOs for some time and intimidate them."Rights activists link the searches to a controversial law forcing foreign-funded NGOs involved in politics to carry a "foreign agent" tag.The measure was fast-tracked through parliament upon Putin's return to the Kremlin in May last year in the face of unprecedented protests against his 13-year rule.Rights groups vowed to boycott the law, while Putin said last month that the legislation should be enforced.Tax and fire inspectorsMikhail Fedotov, the head of the Kremlin's rights council, said it was unclear why so many officials including tax inspectors and fire inspectors were involved in the searches."Do they want to check whether NGOs make explosives?" he said. "They found that one group lacked a plan on how to exterminate rats."Earlier this week, the EU called the searches "worrisome", while German officials said the raids on German groups could lead to a deterioration of ties.A US state department spokesperson said Washington was "very concerned" by the searches.In a bid to deflect the mounting criticism, the general prosecutor's office issued a statement on Thursday, saying the current searches were being carried out in accordance with a plan for this year. The results of the checks, it said, will help determine "problem issues and ways to solve them" including by tweaking the current legislation.The prosecutor's office noted that NGOs could file a complaint if they believed their rights and interests were violated, promising that all such complaints would be "swiftly" looked into.In the latest searches, prosecutors on Thursday also visited the offices of Russia's oldest rights organisation, the Moscow Helsinki Group. Its veteran head Lyudmila Alexeyeva led the drive to boycott the "foreign agent" law."Of course, it's possible to make our life a living hell, but we are used to it - they make our life hell and we go on living," the 85-year-old campaigner told AFP.

Top firms scramble for oil wealth

Lebanon's Energy Ministry says 50 companies have participated in a pre-qualification process to win licenses for oil and gas work off the Lebanese coast. The ministry says the companies include Chevron and Exxon Mobil from the United States and Royal Dutch Shell.Lebanon is a resource-poor nation and any finds could help it pay off what is one of the highest debt rates in the world.The names of winning companies will be announced on April 18.Recent Israeli discoveries of oil and gas have raised tensions between Lebanon and neighboring Israel, which are in a state of war. Both countries claim a small maritime area of 850 square kilometers (328 square miles) in the Mediterranean.

US jobless claims rise

The number of Americans filing new claims for unemployment benefits rose more than expected last week, but probably not enough to suggest the labour market recovery was taking a step back.Initial claims for state unemployment benefits increased 16 000 to a seasonally adjusted 357 000, the Labour Department said on Thursday. Still, they remained in the middle of their range for this year.The prior week's claims figure was revised to show 5000 more applications than previously reported. Economists polled by Reuters had expected first-time applications last week to rise to 340 000.Last week's report contained annual benchmark revisions to the series and the model used by the government to iron out seasonal fluctuations.Last week's increase pushed claims above the 350 000 level for the first time since mid-February.The four-week moving average for new claims, a better measure of labour market trends, rose 2 250 to 343 000, but remained below the 350 000 level.That could offer hope job growth this month retained some of the momentum from February. Nonfarm payrolls increased 236 000 last month, with the unemployment rate falling to a four-year low of 7.7%.Claims over the next several weeks will be watched closely for signs of layoffs related to $85bn in government budget cuts known as the "sequester." So far, there is little sign the across-the-board spending cuts are affecting the job market.A Labour Department analyst said no states had been estimated and there were no special factors influencing the report.Claims, however, could become volatile in the coming weeks because of the early timing of Easter and spring breaks, which could throw off the so-called seasonal factor.The labour market is being closely watched by the Federal Reserve, which last week said it would maintain its monthly $85bn purchases of mortgage and Treasury bonds to foster faster job growth.The number of people still receiving benefits under regular state programs after an initial week of aid dropped 27 000 to 3.05 million in the week ended March 16. That was the lowest since June 2008.The so-called continuing claims covered the period for the household survey from which the unemployment rate is derived.

Strict controls as Cyprus banks reopen

Cypriots will finally get access to their bank accounts later on Thursday after a nearly two-week lockdown, but under tight restrictions unprecedented in the eurozone.With world markets still jittery over the crisis, the banks closed since March 16 will reopen from 12:00pm (10:00 GMT) until 6:00pm (16:00 GMT), the central bank confirmed.But Finance Minister Michalis Sarris has imposed temporary limits on daily withdrawals to €300 to prevent a run on the banks that could wreak havoc on the island's already fragile economy.He also banned the cashing of cheques and ordered those travelling abroad not to take more than €1 000 out of the country.Five shipping containers reportedly filled with billions of euros were delivered to the central bank in Nicosia late Wednesday, an AFP photographer said.Under a deal agreed in Brussels on Monday, Cyprus must raise €5.8bn to qualify for a €10bn bailout from the "troika" of the European Union, European Central Bank and International Monetary Fund.Depositors with more than €100 000 in the top two banks Bank of Cyprus (BoC) and Laiki or 'Popular Bank' face losing a large chunk of their money.Cyprus also agreed to major reforms to its banking system, which is heavily dependent on Russian money an estimated $31bn in corporate and private deposits.Monday's deal kept the Mediterranean island from crashing out of the euro but it has provoked fury at home.OnWednesday, around 1 500 anti-austerity protesters marched on the presidential palace to protest the EU-IMF rescue package, which delivers a major hit to big depositors and threatens thousands of jobs.Under the government-imposed restrictions, money transfers to accounts outside Cyprus are forbidden, with some exceptions, and there is a limit of €5 000 monthly in credit or debit card purchases while abroad.Sarris said the strict capital controls would be temporary.But in comments to the private television station Sigma on Wednesday night he warned: "We will see worse days in 2013... the economy will go into deeper recession."Cyprus is the first eurozone country to impose capital controls after bailouts unlike Greece, Spain, Portugal and Ireland, which have also received multi-billion-dollar rescue packages.Sarris's decree said that the restrictions were in place to prevent a run on the banks as depositors tried to get their money out, which would see the financial system collapse and destabilise the economy.The bailout involves restructuring BoC and eventually winding down Laiki, whose "good" assets will be absorbed by the bigger bank.BoC chief executive Yiannis Kypris was sacked by the central bank governor on Wednesday a day after the bank chairman's resignation was rejected.Laiki depositors face losses of up to 80% on deposits above €100 000, while BoC savers have been warned they stand to lose 40%.Thanks in part to comments by Eurogroup chief Jeroen Dijsselbloem on Monday that appeared to suggest the harsh terms of the Cyprus deal could be repeated elsewhere - comments later retracted the markets remained nervous.At one point Wednesday the euro sank to below the $1.28 line for the first time since November. In Tokyo trade on Thursday morning, the euro was still under pressure, fetching $1.2785 and ¥120.33.European and US stock markets closed down, and in early trading on Thursday in Asia markets were also slipping amid fears over Cyprus.Investors were worried about "the 'contagion effect' of a possible run on banks spreading to other parts of the eurozone," SMBC Nikko Securities general manager of equities Hiroichi Nishi told Dow Jones Newswires.Bank employees union ETYK have appealed to the public not to take out their frustrations on bank staff, saying that they too are "victims of criminal acts".In the Greek capital Athens on Wednesday night, a bomb exploded near the home of former BoC executive Nikos Tsakos, a Greek ship owner who had served on the board of the Cypriot lender. Nobody was injured.

Obama calls for action on guns

US President Barack Obama on Thursday urged lawmakers to take serious action against gun violence, telling Americans not to forget the tragedy of the mass shooting in Newtown, Connecticut just months ago. "Tears aren't enough, expressions of sympathy aren't enough," Obama said.Congress is currently considering a bill that would institute background checks on all gun purchases and punish those who buy weapons with the intention of turning them over to criminals.Obama also reiterated his calls for a ban on assault weapons, which is not included in the main legislation to be considered by Congress.Harry Reid, leader of the majority Democrats in the Senate, did not include the proposal in the bill because he felt it was unlikely to pass amid opposition from gun-rights advocates. However, an assault weapons ban will likely be voted on as an amendment to the main measure."There's absolutely no reason why we can't get this done," Obama said. "But the reason we're talking about it here today is because it's not done until it's done. And there are some powerful voices on the other side that are interested in running up a clock of changing the subject or drowning out the majority of the American people to prevent any of these reforms from happening at all."He called on Americans to remember the shooting in Newtown that left 20 children and six teachers dead just over three months ago, saying the tragedy should be turned into action."Shame on us if we've forgotten. I haven't forgotten those kids," he said.Obama's message coincided with the release of details of the police investigation into the Sandy Hook Elementary School shooting.First deathThe shooter, Adam Lanza, 20, killed his mother in the home they shared on 14 December, then went to the school in Newtown, Connecticut and turned his gun on children and teachers. The police documents show that he took his own life within five minutes of shooting his way into the building, Connecticut state attorney Stephen J Sedensky III said.Lanza used a single weapon - a Bushmaster .223-caliber rifle to kill the children and school employees, then used a Glock 10 millimetre handgun to kill himself, the records show. Investigators also found a loaded 12-gauge shotgun in the car he drove to the school and shotgun ammunition.Other details of the investigation reveal that Lanza had a gun safe in his bedroom and had received a Christmas card from his mother with a check inside for the purchase of a gun, according to a search warrant.Details of the investigation also said police interviewed a person who said that Lanza rarely left his home and was an avid gamer, who played the computer war game Call of Duty.A recent poll published by CNN shows public support for major restrictions on guns or making all guns illegal has declined from 52% immediately after the shooting to 43% now.

US flies stealth bombers over South Korea

The United States said two nuclear-capable B-2 stealth bombers flew "deterrence" missions over South Korea on Thursday, defying apocalyptic threats of retribution from North Korea against ongoing war games.The deployment of the stealth bombers was clearly meant to deliver a potent message to Pyongyang about the US commitment to defending South Korea against any aggression as military tensions on the Korean peninsula soar.It came shortly after the North severed its last-remaining military hotline with South Korea and put its rocket units on combat status with a threat to target US bases in the Pacific region.The two B-2s, from Whiteman Air Force base in Missouri, flew the 20 800km round-trip in a "single continuous mission", dropping dummy ordnance on a target range in the South, the US military said in a statement."This ... demonstrates the United States' ability to conduct long-range, precision strikes quickly and at will," the statement said.The bombers were participating in South Korean-US military exercises that have incensed North Korea, which has threatened to unleash a second Korean War and launch pre-emptive nuclear strikes on South Korea and the US mainland.US, South in new pact"The B-2 bomber is an important element of America's enduring and robust extended deterrence capability," the US statement said.Earlier on Thursday, US Defence Secretary Chuck Hagel told his South Korean counterpart that Seoul could rely on all the military protection the United States has to offer - nuclear, conventional and missile defence.The US and South Korean militaries signed a new pact last week, providing for a joint military response to even low-level provocation by North Korea.The use of the stealth bombers is sure to prompt a fresh outcry from Pyongyang, which has already denounced the use of US B-52 bombers in the joint exercises as a rehearsal for a nuclear strike.While most analysts have dismissed the bulk of the North Korean threats as rhetorical bluster, there are concerns that even a minor incident could swiftly escalate in such a volatile environment.In its latest protest at the military drills, North Korea announced on Wednesday that it was severing its military hotline with the South, saying it was no longer needed given that "war may break out any moment".Communication line severedThe joint drills are held every year and are regularly condemned by Pyongyang as rehearsals for invasion.Their staging this year came as tensions were already riding high following the North's long-range rocket launch in December and its nuclear test last month.The North has severed the military hotline before, most recently in March 2009, again in protest at the annual South Korean-US military exercises. In that case, the line was reconnected less than two weeks later.Several weeks ago North Korea severed a Red Cross hotline that had been used for government-to-government communications.Among other things, the military hotline was used on a daily basis to organise movement in and out of the Kaesong industrial complex - a joint South-North Korean venture established in 2004.The South Koreans used the line to give the North the names of those seeking entry to Kaesong, guaranteeing their safety as they crossed one of the world's most heavily militarised borders.The crossing was operating normally on Thursday, officials said, adding that they had had used a civilian link to get the names to the North Korean guards.North Korea has always been wary of allowing crises in inter-Korean relations to affect the zone, which lies 10km inside its side of the border and is a crucial hard-currency earner for the communist state.

Patient Cypriots queue as banks reopen

Cypriots queued calmly at banks as they reopened on Thursday under tight controls imposed on transactions to prevent a run on deposits after the government was forced to accept a stringent EU rescue package to avert bankruptcy. Banks were shut almost two weeks ago as the government negotiated a €10bn international bailout, the first in Europe's single currency zone to impose losses on bank depositors.Bank staff turned up for work early as cash was delivered by armoured trucks, and queues of at least a dozen people formed at branches in the capital, with uniformed security guards on duty.Doors opened at noon but initially at least there was no sign of any major run on the banks, as had been feared.A lot of money had already left electronically. Figures published by the Central Bank of Cyprus on Thursday showed that savers from other euro zone countries withdrew 18% of their deposits from the stricken island in February, as talk of a tax on bank accounts rose.Overall private sector bank deposits in Cyprus fell by 2.2% to €46.4bn last month, after a similar drop in January.Authorities say the emergency rules imposed to limit withdrawals and prevent a bank run will be temporary, initially for seven days, but economists say they will be difficult to lift as long as the economy is in crisis.The capital controls decree was taped to the windows of bank branches and staff handed out copies to customers. In Nicosia, there was relief, but some apprehension about what might happen."You've no idea how much I've been waiting for this," said 64-year-old pensioner Froso Kokikou, waiting in line at a branch of Cyprus Popular Bank, also known as Laiki."I feel a sense of fear and disappointment having to queue up like this; it feels like a Third World country, but what can you do?" Kokikou said. "This is what they imposed on us and we have to live with it."Kostas Nikolaou, a 60-year-old pensioner, said the uncertainty of the past two weeks had been "like a slow death".He added: "How can they tell you that you can't access your own money in the bank? It's our money, we are entitled to it."Many of those waiting in line were elderly people, who said they had run out of cash because they did not have bank cards.The Cyprus stock exchange said it would remain closed on Thursday.On international markets, German 10-year bond yields fell to their lowest level since August on fears of spill-over from the Cyprus crisis to other struggling euro zone members. Yields fell 2 basis points to 1.256%. Traders cited the risk that depositors in other countries could take fright at any signs of a run on deposits in Cyprus.Container trucks loaded with cash pulled up inside the compound of the central bank in the capital Nicosia on Wednesday night to prepare for the reopening, a central bank source said.As in all countries that use the euro, Cyprus's central bank supplies cash for its banks from the European Central Bank (ECB) in Frankfurt. Officials have promised that enough funds will be on hand to meet demand. The ECB did not comment on reports it had sent extra cash to the island.Cash LimitA finance ministry decree limited cash withdrawals to no more than €300 per day and banned the cashing of cheques.The island's central bank will review all commercial transactions over €5 000 and scrutinise transactions over €200 000 on an individual basis. People leaving Cyprus may take only €1 000 with them.A police source told Reuters that passengers leaving Cypriot airports were subject to extra searches. Officers had orders to confiscate cash above the €1 000 limit.With just 860 000 people, Cyprus has about €68bn in its banks a vastly outsized financial system that attracted deposits from foreigners, especially Russians, as an offshore haven but foundered when investments in neighbouring Greece went sour.The EU and International Monetary Fund (IMF) concluded that Cyprus could not afford a rescue unless it imposed losses on depositors, seen as anathema in previous euro zone bailouts.That view has angered Cypriots, whose foreign minister said his country was sacrificing too much for the bailout."Europe is pretending to help us but the price to pay is too high: nothing less than the brutal destruction of our economic model," Ioannis Kasoulides told the French newspaper Les Echos.‘Cyprus euro’Cyprus's financial difficulties have sent tremors through the already fragile single European currency. The imposition of capital controls has led economists to warn that a second-class "Cyprus euro" could emerge, with funds trapped on the island less valuable than euros that can be freely spent abroad. Reflecting fears of a spill-over, ratings agency Moody's said it kept euro zone strugglers Ireland and Portugal on negative outlook, citing the Cyprus bailout as an extra risk.The European Commission said the capital controls were legal and justified under EU law provided they were strictly temporary and proportionate. The EU executive said it would monitor "the need to extend the validity of or revise the measures".The bailout, agreed in Brussels on Monday, looks set to push Cyprus deeper into an economic slump, shrink the banking sector and cost thousands of jobs.Cyprus Popular Bank, the country's second biggest, will be closed and its guaranteed deposits of up to €100 000 transferred to the largest bank, Bank of Cyprus.Deposits of more than €100 000 at both banks, too big to enjoy a state guarantee, will be frozen, and some of those funds will be exchanged for shares issued by the banks to recapitalise them.While big depositors will lose money, the authorities say deposits up to €100 000 will be protected.

NEWS,26.11.2012

Obama drafts Geithner to crack budget

US President Barack Obama has made Treasury Secretary Timothy Geithner lead White House negotiator in budget talks with Congress aimed at averting the fiscal cliff, a report said Monday The Wall Street Journal said Geithner was viewed on Capitol Hill as a straight-shooter who had a better chance of brokering a deal than Jacob Lew, Obama's former budget chief who has burnt his bridges with some Republicans.If no deal is reached before the end of the year, a poison pill law of tax hikes and massive spending cuts, including slashes to the military, comes into effect with potentially catastrophic effects for the fragile US economy.The report said Geithner, who is preparing to leave his post as treasury secretary early in Obama's second term, has spent months already preparing for the fiscal talks, which will begin this week in earnest in Washington.Geithner will be joined by White House budget and tax experts, including Lew, now Obama's chief of staff, and National Economic Council Director Gene Sperling, the Wall Street Journal said.They will try to hammer out an elusive compromise with congressional aides but final decisions will be made by political leaders such as Obama and Republican House Speaker John Boehner, the report said.In recent days, several leading Republicans have indicated a willingness to accept a deal that includes more revenue from ending loopholes in the tax code in return for cuts in funding to Democrats' beloved welfare programs.Geithner, 51, is not affiliated with any party and has spent his career in government finance and on the political sidelines.He first joined the Treasury at age 27. When George W. Bush became president in 2001, he went to work for the Council on Foreign Relations and the International Monetary Fund.At 42, he was tapped to be head of the Federal Reserve Bank of New York, considered the Fed's second-most influential post because the New York bank interacts directly with a powerful constituency that includes Wall Street.Despite holding high office in the years leading up to the 2008 financial collapse, when regulatory authorities are accused of having been asleep at the wheel, he was tapped by Obama to lead the recovery.Upon assuming office in early 2009, he was charged with overseeing two major bailout packages worth more than $1.5 trillion and aimed at shoring up the country's distressed banking sector.The administration has said that the stimulus, while costly, averted another Great Depression, while conservative critics have branded it a costly expansion of government that has failed to revive the economy.

 

Medvedev does not rule out Kremlin return

Prime Minister Dmitry Medvedev said he is not ruling out a return to the Kremlin after his 2008-2012 single term as Russian head of state but was happy working as premier under his mentor Vladimir Putin."If I have sufficient strength and health, if our people trust me in the future with such a position, then of course I do not rule such a turn of events," Medvedev said in an interview with Agence France-Presse and Le Figaro when asked if he had the ambition for another Kremlin term.Medvedev, who on Monday embarks on a working visit to France, served as president after Putin stepped aside following the maximum two consecutive terms allowed by the constitution after his 2000-2008 stint.But Putin, aged 60, stayed on as a powerful prime minister and Medvedev, aged 47, never fully emerged from the shadow of his fellow Saint Petersburg native, an impression strongly reinforced when Putin returned to the Kremlin in May 2012.Medvedev, who in turn was then appointed prime minister in May, failed to bring about lasting change through a much-trumpeted modernisation programme in his one term as president.But in his interview with AFP, he revealed he had not lost his political ambition. "This returning to the presidency depends on a whole range of factors." "Never say never, especially as I swam in that river once and this is a river that you can swim in twice," he said.Russia will only go to the polls to vote for a president again in March 2018 and in the next half decade society is expected to see major change as the middle class grows and internet use explodes. Putin has also not ruled out standing again.This year's tightly choreographed job swap was criticised for being played out far from the public, and frustration over the return of Putin to the Kremlin fuelled the opposition protests that rocked Russia in the last year.Medvedev acknowledged the protests that began last December had shown a transformation in Russian society that the authorities could no longer ignore."Our society changed, it had become more active and the authorities needed to take account of this and react," said Medvedev, saying the government had done this by introducing electoral reform.Some of Medvedev's supporters who saw him as a possible champion of a refreshed, innovative and more pro-Western Russia were hugely disappointed by his apparent surrender of the Kremlin back to Putin.But Medvedev played up the tight links between the two men, saying he would find it impossible to work under anyone else."I would hardly have become prime minister under another president, I cannot imagine it at all," he said."If there is someone you can work with comfortably as prime minister after being president it is just one person, Vladimir Putin."However Medvedev has distanced himself from Putin on some issues, notably the case of feminist punk rockers Pussy Riot, two of whom have been sent to prison camps for performing a song against the Russian strongman in a church.Reaffirming his belief that they should be released, he said: "I think they have already tasted what prison is... So further punishment in the form of prison is not necessary. This is my personal position."On the case of Russia's best known prisoner, the former tycoon Mikhail Khodorkovsky, Medvedev said court decisions had to be respected but noted that the convict had never made a bid for clemency from the Kremlin.Medvedev admitted that his modernisation drive had so far fallen short but expressed hope there was still time to put his ideas into place."It's true that for the moment modernisation has not turned into a national idea and there has been no kind of radical progress reached."

 

Euro zone to seek Greek aid deal without write-off

Euro zone finance ministers and the International Monetary Fund made their third attempt in as many weeks to agree on releasing emergency aid for Greece today, with policymakers saying a write-down of Greek debt is off the table for now.Greek Finance Minister Yannis Stournaras said he was confident the ministers would reach a deal after Greece fulfilled its part of the deal by enacting tough austerity measures and economic reforms."I'm certain we will find a mutually beneficial solution today," he said on arrival for what was set to be another marathon meeting.Greece, where the euro zone's debt crisis erupted in late 2009, is the currency area's most heavily indebted country, despite a big "haircut" this year on privately-held bonds. Its economy has shrunk by nearly 25% in five years.EU Economic and Monetary Affairs Olli Rehn said it was vital to disburse the next 31 billion euro tranche of aid "to end the uncertainty that is still hanging over Greece". He urged all sides to "go the last centimetre because we are so close to an agreement".Negotiations have been stalled over how Greece's debt, forecast to peak at 190-200% of GDP in the coming two years, can be cut to a more sustainable 120% by 2020.Without agreement on how to reduce the debt, the IMF has held up payments to Athens because there is no guarantee of when the need for emergency financing will end.The key question is: Can Greek debt become sustainable without the euro zone writing off some of the loans to Athens?IMF Managing Director Christine Lagarde said on arrival that the solution must be "credible for Greece".A source familiar with IMF thinking said the global lender was demanding immediate measures to cut Greece's debt by 20 percentage points of GDP, with a commitment to do more to reduce the debt stock in a few years if Greece fulfills its programme.Under the source's scenario, Greece's debt could be reduced to around 125% of GDP by 2020 using a variety of methods including a debt buyback, reducing the interest rate on loans and returning euro zone central bank 'profits' to Greece, but further steps would still be needed to hit the 120% goal.The ministers took an extended break in mid-afternoon while experts worked on how to formulate a link between short-term measures and a credible assurance of eventual debt relief.Germany and its northern European allies have so far rejected any idea of forgiving official loans to Athens.German Finance Minister Wolfgang Schaeuble told reporters on arrival that a debt cut now was legally impossible, not just for Germany but for other euro zone countries, if it was linked to a new guarantee of loans."You cannot guarantee something if you're cutting debt at the same time," he said. That might not preclude debt relief at a later stage if Greece has completed its adjustment programme and no longer needs new loans.The source familiar with IMF thinking said a loan write-off once Greece has established a track record of compliance would be the simplest way to make its debt viable, but other methods such as foregoing interest payments, or lending at below market rates and extending maturities could all help.The German banking association (BDB) said a fresh "haircut" or forced reduction in the value of Greek sovereign debt, must only happen as a last resort.Two European Central Bank policymakers, vice-president Vitor Constancio and executive board member Joerg Asmussen, said debt forgiveness was not on the agenda for now.Asmussen told Germany's Bild newspaper the package of measures would include a substantial reduction of interest rates on loans to Greece and a debt buy-back by Greece, funded by loans from a euro zone rescue fund.So far, the options under consideration include reducing interest on already extended bilateral loans to Greece from the current 150 basis points above financing costs.How much lower is not yet decided - France and Italy would like to reduce the rate to 30 basis points (bps), while Germany and some other countries insist on a 90 bps margin.Another option, which could cut Greek debt by almost 17% of GDP, is to defer interest payments on loans to Greece from the EFSF, a temporary bailout fund, by 10 years.The European Central Bank could forego profits on its Greek bond portfolio, bought at a deep discount, cutting the debt pile by a further 4.6% by 2020, a document prepared for the ministers' talks last week showed.Not all euro zone central banks are willing to forego their profits, however, the German Bundesbank among them.Greece could also buy back its privately-held bonds on the market at a deep discount, with gains from the operation depending on the scope and price. Officials have spoken of a 10 billion euro buy-back at around 30 cents on the euro, that would retire around 30 billion euros of debt, although since the idea was raised the potential gain has fallen as prices have risen.But the preparatory document from last week said that the 120% target could not be reached in 2020, only two years later, unless ministers accept losses on their loans to Athens, provide additional financing or force private creditors into selling Greek debt at a discount.The latest analysis for the ministers showed the debt could come down to 125% of GDP in 2020, one euro zone official with insight into the talks said.

NEWS, 26.05.2012.

I made Russia a freer country: Medvedev

 

President Dmitry Medvedev said on Thursday that Russia had become a freer nation during his four-year term, citing the mass protests of recent months as evidence of change."Spring has come to us, both literally and figuratively. I congratulate you," Medvedev said in a live television interview, his last before he hands the presidency back to Vladimir Putin."Freedom," Medvedev sighed and smiled, "is such a unique feeling that everyone interprets differently."Freedom is a sense of self. And in this sense we've done a lot," he told a group of liberal journalists,who are usually sidelined for their sceptical stance towards the government.Medvedev's political mentor Putin, who became his prime minister after being barred by the constitution from serving more than two successive presidential terms, announced plans in September to return to the Kremlin in a job swap with his close ally.That announcement coupled with fraud-tainted parliamentary polls in December led to the largest protests since the Soviet era, when tens of thousands rallied in Moscow protesting Putin's comeback.Protests lose stingBoth Medvedev and Putin have in the past sought to stress that the protests were the hallmark of a democratic society, and introduced cosmetic political reforms that many analysts called a concession to protesters."Let's ask people who took to various squares whether they are free or not," Medvedev said."It is not important who they support: 'the white', 'the red' or 'the blue'. I am absolutely confident that the overwhelming majority of them will say: 'Yes, I am free because I stand here, I have my own position, I do not like a lot, or on the contrary, I like practically everything, don't you dare touch it. I am free'.""The current accelerated movement towards democracy will not lead to chaos," Medvedev added. "Society has matured."The nascent protest movement has lost much of its sting since Putin's crushing 4 March presidential victory, although it still hopes to muster another major demonstration in Moscow the day before Putin's 7 May inauguration.Medvedev defended his decision to cede the country's top job which has earned him mockery from the liberal opposition and many ordinary Russians calling him a mere seat-warmer incapable of promoting true reform.Hunger strike"We've achieved the political results we were hoping for," said Medvedev, who expects to be appointed prime minister when Putin moves back to the Kremlin."The decisions that were announced in September have been confirmed by political practice and it, as we know, is a criterion of truth.""We've thought it all up not to warm ourselves up but to receive a concrete political result. And we've received it, we've received a mandate to rule," he said.But the outgoing president also spoke disparagingly of the recent 40-day hunger strike by opposition politician Oleg Shein in the southern city of Astrakhan in protest at alleged violations in mayoral elections that he contested."I do not blame anyone. But 'Hunger Games' - I will remind you, is a rather mediocre Hollywood blockbuster, I don't know whether you've watched it or not, I have - whoever does it very often pursues a very obvious political goal."He defended his presidential decisions including the sacking of governors and the reform of the bloated police force, reiterating that Russia's most prominent prisoner Mikhail Khodorkovsky would not be allowed to walk free unless he asked for pardon."Without a request there cannot be a review. This is my firm position."Once Russia's richest man, Khodorkovsky is set to stay in jail until 2016 after being convicted in two fraud trials in what his supporters say is a case of personal vendetta on the part of Putin.

 

Iran: Enriched uranium traces a 'technical issue'

 

A top Iranian nuclear negotiator said that traces of enriched uranium discovered at an underground bunker came from a "routine technical issue," the country's official IRNA news agency reported Saturday.Ali Asghar Soltanieh, Tehran's envoy to the International Atomic Energy Agency, was responding to a report by the U.N. nuclear watchdog that said it had found radioactive traces at an Iranian nuclear site. The uranium found had been enriched to a level that is slightly closer to the threshold needed for nuclear weapons than Iran's previous highest-known enrichment grade.The IAEA said in the confidential report obtained Friday by The Associated Press that it was asking Tehran for a full explanation about the traces. But the report was careful to avoid any suggestion that Iran was intentionally increasing the level of its uranium enrichment.Tehran said the find was a technical glitch, according to the report. Analysts and diplomats said Iran's version sounded plausible.The West suspects Iran is pursuing a weapons program. Tehran denies the charge, saying its nuclear program is aimed at peaceful purposes like power generation and cancer treatment.Soltanieh said the report on Iran's nuclear activities was "historic evidence" that proved the peaceful nature of Iranian nuclear activities, while the uranium discovery was blown out of proportion for political reasons."This issue shows that some intend to damage the existing constructive cooperation between Tehran and the International Atomic Energy Agency," he was quoted as saying.The higher the enrichment, the easier it becomes to re-enrich uranium to the 90 percent needed for weapons grade. As a result, the finding of traces at 27 percent at the Fordo enrichment plant in central Iran sparked international interest.Iran denies any plans to develop nuclear weapons, but has for years declined offers of reactor fuel from abroad, including more recent inducements of 20-percent material if it stops Aproducing at that level. The Islamic Republic says it wants to continue producing 20 percent uranium to fuel its research reactor and for medical purposes.But its refusal to accept foreign offers has increased fears Tehran may want to turn its enrichment activities toward producing such arms. The concerns have been fed by IAEA suspicions that Iran has experimented on components of an atomic arms program — suspicions Tehran also denies.The report cited a May 9 letter from Iranian officials suggesting any enrichment at 27 percent was inadvertent. The letter said the particles were produced "above the target value" and could have been for "technical reasons beyond the operator's control."But the IAEA report did detail some progress in talks between the U.N. nuclear agency and Iran that the agency hopes will relaunch a long-stalled probe into the suspicions that Tehran has worked on nuclear-weapons related experiments.Amano will handover the report on Iran's nuclear activities to the board of directors of the agency later in June.IRNA also reported that Iran's nuclear chief, Fereidoun Abbasi, said Saturday that Tehran will not open the Parchin site until the agency convinces the country it is necessary."If a visit to Parchin is to happen, they should convince us in advance. So far, no reason and evidence has been handed to us," Abbas was quoted as saying.After a short visit to Tehran last week, Amano said Iran and the agency will sign an agreement on inspection to the site, soon.

NEWS,07.05.2012.

Putin sworn in as Russia's president

 

Vladimir Putin appealed for unity in Russia after being sworn in as president today, pledging to strengthen democracy in his new six-year term.In a glittering ceremony, was inaugurated before nearly 2000 guests in the Kremlin's St Andrew Hall, before being blessed by the head of the Russian Orthodox Church."I will do all I can to justify the faith of millions of our citizens. I consider it to be the meaning of my whole life and my obligation to serve my fatherland and our people," Putin said in a brief speech."We will achieve our goals if we are a single, united people - if we hold our fatherland dear, strengthen Russian democracy, constitutional rights and freedoms."Putin, who was president of the former Soviet republic from 2000-2008 is returning to Russia's highest office after four years as prime minister, said he and the Russian people had already trodden a "difficult path" together."We believed in ourselves and in our powers, strengthened the country and restored the dignity of our great nation. The world has seen Russia reborn, and this is the result of the efforts of our people - shared, intensive work in which everyone has made a personal contribution."He praised Dmitry Medvedev, the ally he steered into the Kremlin when he faced a bar on a third straight term in 2008 and who is set to become prime minister in a job swap that has angered many Russians who are tired of the same leaders."Today we have everything we need to move forward and create a dynamic and developing state: A stable economic and social basis, an active and responsible civil society," Putin said. "I see in this a great service on the part of Dmitry Anatolyevich Medvedev.".A few kilometres across Moscow, several thousand people staged a rally supporting Putin, seen by his backers as the only leader capable of defending Russia's interests on the world stage and the guardian of the economy at home.While Putin's critics have tired of a political system that concentrates power in one man, many of his supporters welcome his domination of the country of more than 140 million."Democracy is the power of the majority. Russia is everything, the rest is nothing!" Alexander Dugin, a Kremlin-aligned nationalist, told the pro-Putin crowd.The rival rallies underlined the rifts opened by Putin's return to the Kremlin and protests that were sparked by allegations of electoral fraud but fuelled by many Russians' frustration that one man continues to dominate the country.Although the protests had lost momentum before Sunday's rally, they have given birth to a civil society, two decades after the collapse of the Soviet Union, that is gradually chipping away at Putin's authority.Putin, who will be 60 in October, grew up in Soviet days and worked as a spy in communist East Germany, is under pressure to show he can adapt to the new political landscape. Few think he has changed much - if at all.Putin has eased up on the choreographed macho antics that burnished his image at his peak in Russia, such as riding horseback barechested and shooting a tiger with a tranquiliser gun.Harder to shake off will be his habit of seeking total control and learning to cope with political opponents and a middle class demanding more political freedom.He has to quell rivalries between liberals and conservatives battling for positions in the new cabinet under Medvedev, who is swapping jobs with Putin. The outcome of the struggle could help determine how far reforms go to improve the investment climate.The $1.9 trillion economy is in better shape than in most European countries but is vulnerable to any change in the price of oil, Russia's main export commodity. The budget is under pressure from Putin's lavish election spending promises.Putin has said he wants to attract more foreign investment by improving the business climate, reduce corruption and red tape, and end Russia's heavy dependence on energy exports. He has not spelled out how he will do this.Putin is likely, as in the past, to use tough anti-Western rhetoric on foreign policy to drum up support if times get tough in Russia. But he has never yielded his strong influence over foreign policy as premier, so a major policy shift is unlikely.

Socialist Hollande ousts Sarkozy in French vote

 

 

Francois Hollande was elected France's first Socialist president in nearly two decades on Sunday, dealing a humiliating defeat to incumbent Nicolas Sarkozy and shaking up European politics.The result will have major implications for Europe as it struggles to emerge from a financial crisis and for France, the eurozone's second-largest economy and a nuclear-armed permanent member of the UN Security Council.Hollande won the vote with about 52 percent, according to several estimates from polling firms based on ballot samples, becoming France's first Socialist president since Francois Mitterrand left office in 1995.Joyful crowds gathered in Hollande's adopted hometown of Tulle and in Paris to celebrate his victory."We are rid of a poison that was blighting our society. A normal president! It gives us a lot to dream about," said Didier Stephan, a 70-year-old artist who was among throngs of supporters at Paris's Place de la Bastille.Even before polls closed and broadcasters released estimates, supporters were chanting "President Hollande!" and "We Won!" at the iconic square.Sarkozy urged leaders of his right-wing UMP party to remain united after his defeat, but warned he would not lead it into June's parliamentary elections, according to political sources present at a meeting at his headquarters.Hollande led in opinion polls throughout the campaign and won the April 22 first round with 28.6 percent to Sarkozy's 27.2 percent -- making the right-winger the first-ever incumbent to lose in the first round.Grey skies and rain showers greeted voters across much of France, but turnout was high, hitting 71.96 percent at 5:00 pm (1500 GMT) according to interior ministry figures. More than 46 million people were eligible to vote.The election was marked by fears over European Union-imposed austerity and economic globalisation, and Hollande has said his first foreign meeting will be with German Chancellor Angela Merkel -- the key driver of EU budget policy.The 57-year-old Socialist has vowed to renegotiate the hard-fought fiscal austerity pact signed by EU leaders in March and to make it focus more on growth, but is facing resistance from Merkel.The French vote coincides with an election in Greece, where voters were also expected to punish the incumbent parties for landing the country in its bleak economic state.Anger over sputtering economies has brought down leaders from Ireland to Portugal since the debt crisis washed over the European continent.