NEWS,24.07.2012

Germany's credit rating downgraded

Germany's Aaa credit rating outlook has been lowered to negative by Moody's.The rating agency cited "rising uncertainty" about Europe's debt crisis.Risks that Greece may leave the euro and the "increasing likelihood" of help for Spain and Italy also caused the downgrade."Given the greater ability to absorb the costs associated with this support, this burden will likely fall most heavily on more highly rated member states if the euro area is to be preserved in its current form," Moody's said. Germany's vulnerable banking system, which Moody's deems exposed to the most stressed euro countries, could leave them open to further deepening of the crisis.However, it will retain its Aaa rating because of the country's "advanced and diversified economy" with high productivity and strong demand for German products.Finland held on to its top ranking, getting a stable outlook from Moody's.

 

Deutsche Bank's Internal Libor Investigation Finds Deutsche Bank Mostly Innocent

 

Great news, you guys. We can go ahead and scratch at least one bank off the list of egregious interest-rate manipulators. That's because this bank has heroically determined that it is totally innocent. Almost totally, anyway.Deutsche Bank, the biggest German bank, has carefully investigated its own role in the habitual, fraudulent, global rigging of Libor, the most important interest rate in the world. And you might want to sit down for this, but Deutsche Bank has determined, to what we can only imagine is its own profound relief, that Deutsche Bank was only barely involved in the scandal. Hardly any involvement, really. If you blur your eyes a bit, it even kind of looks like Deutsche Bank wasn't involved at all. Certainly not in its top executive ranks. That's the way Deutsche Bank would like you to see it, anyway.Hmm, one small problem, though: Handelsblatt is reporting that Deutsche Bank is bracing for "a huge fine" in the Libor scandal, setting aside between $300 million and $1 billion -- the middle point of which would be higher than the $450 million Barclays paid. Does that sound like a bank that really expects to get out of this without any mud getting splashed on the C-suite?Anyway, we can only imagine that if Deutsche Bank is indeed planning on paying such a huge fine, then it is only doing so out of the goodness of its heart, a sense of civic duty really. Because it turns out, according to Deutsche Bank's investigation, that every bit of Deutsche Bank's involvement in the constant, gleeful rigging of Libor for years came down to just two very bad Deutsche Apples, who were fired last year. Both of those, let's call them, slimeballs apparently were part of the global Libor-rigging cartel that involved nearly every large bank in the world. But they're gone now, and we can only imagine that their desks have been taken out back and chopped into dust, that their pictures have been photoshopped out of all the company's birthday-party photos, and that their names are no longer spoken around Deutsche Bank's offices in any tones other than scorn or maybe shame.A Deutsche Bank internal probe has found that two of its former traders may have been involved in colluding to manipulate global benchmark interest rates but there was no indication of failure at the top of the organization, three people close to the investigation said.No indication of failure at the top of the organization! This will be a tremendous relief to spanking-new Deutsche Bank chief Anshu Jain, who is already on thin ice with the Germans because he came up from the bank's investment-banking arm. Germans don't much like investment bankers. To make matters worse, it was Jain's investment-banking arm that happened to be in charge of these bad-apple traders that were fiendishly rigging Libor. A major scandal that originated in Mr. Jain's area of the bank could damage his chances to continue on as sole CEO of the bank after co-head Jürgen Fitschen's contract expires in three years.Thank goodness for Jain that such a risk is apparently all gone now, according to Deutsche Bank's unflinching review of its own leadership. In fact, Reuters seems to imply that Deutsche Bank will likely avoid the sort of unpleasantness that beset Barclays, where the chairman, CEO and chief operating officer all walked the plank as a result of that bank's admitted Libor manipulation. And we can only imagine that the ongoing investigations by "regulators and governmental entities" in the U.S. and Europe, including German markets regulator BaFin, are now a mere formality. All that's needed now is to bring those two pesky scapegoats to justice, and Deutsche Bank can get back to doing the Lord's work.

Italy pushes for Sicilian recovery plan

Italian Prime Minister Mario Monti imposed a compulsory plan to restore financial stability to the cash-strapped Sicily region and overhaul its bloated public administration, a government statement said today.The statement, issued after a meeting between Monti and regional governor Raffaele Lombardo, said the leaders had agreed "a plan for financial recovery and reorganisation of the region's public administration, with a binding timeframe and objectives".The statement stopped short of saying that Sicily would be placed under special administration but made it clear that the programme would be monitored from Rome and that it would insist on cuts to the region's notoriously swollen payroll."The programme is to be finalised in the coming weeks and will be formally signed by the regional and national governments," the statement said.Sicily, which accounts for about 5.5% of Italy's gross domestic product, has been at the centre of growing concerns over the financial stability of Italy's regional and city governments after Monti said last week there were serious concerns about the possibility that it could default.The autonomous island region has some 5.3 billion euros in debt, a long history of waste and mismanagement and an outsized public sector payroll that critics say has been used by successive governments to buy votes.Officials have since played down fears of an immediate crisis with Interior Minister Annamario Cancellieri saying on Monday that there was no risk either of default or of a special government administrator being appointed.Worries about Sicily come as Italy itself moves to the forefront of concerns in the euro zone crisis, with the cost of servicing huge debts jumping on contagion fears for the bloc's third biggest economy linked to the worsening plight of Spain.Following the meeting, Lombardo repeated his own insistence that Sicily had sound and sustainable finances and dismissed talk of default as "rubbish" but confirmed he would resign by the end of the month as previously agreed.He also said the government had released 240 million euros to help cover funding gaps in the health system, one of the regional administration's key responsibilities.While the plight of Italy's regional and municipal authorities has not reached the levels seen in Spain, where several regions have been reported to be close to asking for state aid, there have been growing signs of strain from successive cuts to government transfers.On Tuesday, mayors from around Italy held a demonstration outside the Senate to protest against the cuts which they say will force them to curtail vital local services.The Corte dei Conti, Italy's top public finance watchdog, has made a damning series of criticisms of the regional administration in Sicily, which has overseen a steady deterioration in the island's finances over the past decade.With an unemployment rate of 19.5%, almost twice the national average, Sicily is among the regions hardest hit by the recession but its public sector payroll has been constantly increased, particularly in the health sector.

NEWS,23.07.2012

Hugo Chavez: Mitt Romney, Henrique Capriles Share An Agenda

 

Venezuela's Hugo Chavez has signaled a preference in the U.S. presidential campaign by comparing Mitt Romney to his own challenger.Chavez, who is up for re-election a month before U.S. President Barack Obama, has in recent weeks expressed a clear preference for the man currently in the White House.In a campaign speech Saturday night, Chavez equated the agenda of his challenger, Henrique Capriles, with that of Romney, saying both men represent the callously selfish capitalist elite.Chavez claims Capriles, a moderate former governor, is trying to trick Venezuelans into believing he genuinely cares about the poor, the core of Venezuelan president's constituency."I believe the person to best explain the loser's agenda isn't Barack Obama but rather Romney, because it's the extreme right-wing agenda that borders on the fascism of the United States," Chavez told tens of thousands of supporters in the western city of Maracaibo."In the end, it's the same project," Chavez said, referring to Obama as "a good guy."He alleged that the 220,000 families he says his government has provided with homes risk losing them if Capriles wins, while banks would make obtaining credit impossible for lower-income homebuyers. Chavez also says Capriles would eliminate the social programs that have been a hallmark of his 13 years in office a charge Capriles denies.Chavez's comments follow Romney's criticism of an Obama statement July 11 regarding the relative danger to U.S. interests of Chavez's deepening of ties with Iran.Obama said his "overall sense is that what Mr. Chavez has done over the past several years has not had a serious national security impact on us."Romney responded by saying it was "simply naive" to think Chavez does not pose a threat to the United States.Chavez denies his crusade to create a socialist Venezuela poses any threat to the United States, the chief purchaser of Venezuelan oil.He said in a July 13 television interview that "today's Venezuela doesn't present any kind of threat to anyone."In the same interview, Chavez said Obama "deep down is a good guy, if you remove him from the context of being president of an empire."Michael Shifter, president of the Inter-American Dialogue think tank in Washington, said he thinks U.S. voters generally perceive Chavez as a "nuisance" rather than a threat to U.S. national security."They believe Romney's more hardline stance will only boost up the verbal sparring with Chavez, and end up bolstering him, as has often been the case in the past."Romney could make points, however, with conservative Cuban-Americans who despise Chavez's close friend Fidel Castro as well Venezuelan exiles concentrated in Florida, a tightly contested state in the U.S. presidential election.

Trillions hidden in tax havens – report

 

The world's wealthiest individuals have stashed $21 trillion worth of assets in offshore tax havens, equivalent to the combined GDPs of the United States and Japan, a tax transparency report said on Sunday.The report commissioned by campaign group Tax Justice Network drew data from a wide range of sources including the Bank of International Settlements and the International Monetary Fund.Report author James Henry, former chief economist at consultancy McKinsey, said that the headline figure was conservative, adding that up to $32 trillion may have found its way into havens such as the Cayman Islands and Switzerland.According to Henry, these assets are "protected by a highly paid, industrious bevy of professional enablers in the private banking, legal, accounting and investment industries taking advantage of the increasingly borderless, frictionless global economy". The report found that the top 10 private banks managed more than $6 trillion in 2010, up from $2.3 trillion five years earlier.Tax expert and British government adviser John Whiting said he was doubtful of the figure. "There clearly are some significant amounts hidden away, but if it really is that size what is being done with it all?" he asked.The Tax Justice Network campaigns for tax transparency and against tax havens.

Spanish region denies seeking aid

         

Spain's eastern region of Murcia denied on Sunday that it has decided to tap a recently created emergency loan fund set up by the central government to help cash strapped regions.Earlier on Sunday regional daily newspaper La Opinion de Murcia quoted the president of the regional government of Murcia, Ramon Luis Valcarcel, as saying his government would seek "some €200m or €300m" from the fund.The regional government of Murcia would formally make the request in September, he added according to the newspaper.But in a statement the regional government of Murcia said it "roundly denies" that it has decided to request money from the fund worth up to €18bn that was set up last week by Madrid."Regarding the liquidity fund made available by the state, the regional government has said on numerous occasions that it is studying it, but there is no decision with respect to this," the statement added. Valcarcel was referring to the need to quickly set up "hispanobonds" - bonds backed jointly by all regions in order to meet debt and deficit payments - during his interview with the newspaper and was not talking about the liquidity fund, the statement said.The heavily indebted region of Valencia said Friday it would apply for aid from the fund because it cannot find the funds to meet its financial obligations, making it the first Spanish region to decide to tap the fund.The Valencia regional government did not say how much money it would seek from the fund but daily newspaper El Pais reported Sunday that the amount would be over €2bn.Spain's 17 regional governments, which fund education and health, are crucial to the country's efforts to slash its public deficits and rein in mushrooming sovereign debt.They are blamed for two-thirds of Spain's deficit slippage last year, when the country missed its target of keeping the deficit to 6.0 percent of economic output and instead let it slide to 8.9%.

Greece in "Great Depression", says PM

Greece is in a "Great Depression" similar to the American one in the 1930s, the country's Prime Minister Antonis Samaras told former US President Bill Clinton on Sunday.Samaras was speaking two days before a team of Greece's international lenders arrive in Athens to push for further cuts needed for the debt-laden country to qualify for further rescue payments and avoid a chaotic default.Athens wants to soften the terms of a €130bn bailout agreed last March with the European Union and the International Monetary Fund, to soften their impact on an economy going through its worst post-war recession.By the end of this year Greek GDP is expected to have shrunk by about a fifth in five consecutive years of recession since 2008, hammered by tax hikes, spending cuts and wage reductions required by two EU/IMF bailouts. Unemployment climbed to a record 22.6% in the first quarter. "You had the Great Depression in the United States," Samaras told Clinton, who was visiting Greece as part of a delegation of Greek-American businessmen. "This is exactly what we're going through in Greece - it's our version of the Great Depression."Athens must reduce its budget deficit below 3% of GDP by the end of 2014, from 9.3% of GDP in 2011 - requiring almost another €12bn in cuts and higher taxes on top of the €17bn successive governments have cut from the budget shortfall.Greece wants its lenders to give it two more years to achieve the budget goal to avoid an even deeper economic slump but its lenders have opposed the idea because it would imply even more financial aid. Highlighting growing frustration with Athens, German magazine "Der Spiegel" reported on Sunday, citing high-ranking representatives in Brussels, that the IMF may not take part in any additional financing for Greece.The German and Greek finance ministries declined to comment on the report, which suggested additional support required for Athens could range from €10bn-€50bn. Officials have already indicated there would be a shortfall on the current bailout. How much is likely to depend on the extent by much Greece continues to miss its fiscal targets and the extent of support needed to keep its major banks afloat.German economy minister Philipp Roesler told ARD public television he did not expect Greece could fulfill its requirements and that that would mean no more money to Athens."I am more than sceptical," Roesler, who is the head of the junior party in Germany's ruling coalition and often outspoken on euro zone issues, said in an interview."If Greece does not fulfill its requirements, there cannot be any more payments to Greece," added Roesler, whose views often do not reflect those of Chancellor Angela Merkel or Finance Minister Wolfgang Schaeuble.The inspection team of the international "troika" of the EU Commission, the IMF and the ECB will focus on the €11.7bn of spending cuts Athens needs to take in 2013 and 2014.Clinton criticised Greece's lenders for focusing excessively on austerity, saying Athens will be more likely to repay its debt if its manages economic recovery first."(It) is self-defeating... if every day people are saying this may or may not work to give us back 100 cents on the dollar, so give us more austerity today," he told Samaras."People need something to look forward to when they get up in the morning - young Greeks need something to believe in so they can stake their future out here," Clinton said.

NEWS,22.07.2012

Spaniards protest as crisis outlook darkens

Thousands of jobless Spaniards marched through Madrid Saturday in the latest angry demonstrations against economic crisis cuts, as fears rose for the country's financial stability.Young people thrown out of work by the recession converged on the capital, many of them having hiked hundreds of miles from around Spain, and walked through the city's central avenues, waving banners and whistling."Hands up, this is a robbery!" they yelled, their regular refrain over recent days of protests."Everyone get up and fight!"It was the latest in a string of protests that have erupted since Prime Minister Mariano Rajoy announced 65 billion euros ($80 billion) in fresh austerity measures on July 11, including cuts to pay and unemployment benefits."I am very disappointed and angry," said Alba Sanchez, 25, who had come by car from the northeastern region of Catalonia to join the demonstration."People cannot allow all these cuts by this government that hates us."The crowd marched peacefully to the sound of drums and trumpets and stopped at the Puerta del Sol square, the symbolic hub of numerous social protests, where demonstrators sat down and held a popular assembly.On Thursday hundreds of thousands of demonstrators massed there after a mostly peaceful protest march that ended with police firing rubber bullets to disperse small groups of protestors.Protestors say the efforts to cut Spain's deficit target the poor unfairly and will depress the recession-hit economy further."They pee on us and tell us it's raining," read one yellow sign waved by the jobless protestors on Saturday."I can't tighten my belt and drop my trousers at the same time," read another.Rajoy's measures raise sales tax (VAT) and cut benefits for the newly unemployed after six months from 70 percent of basic salary to 50 percent. Previously, the reduction had been to 60 percent."That's the final blow. They're cutting benefits to those who aren't working and raising VAT, which affects people who work," said protestor Rafel Ledo, who had walked 500 kilometres (310 miles) from the northern Asturias region.Saturday's protests came as Spain's economic and financial outlook darkened. The government cut its economic growth forecast for 2013 from 0.2 percent growth to a contraction of 0.5 percent.Stricken by the bursting of a construction bubble in 2008, Spain is struggling in its second recession in four years. Unemployment is running at more than 24 percent.Also on Friday Valencia, one of Spain's indebted regional authorities, reached out for emergency aid from a fund of 18 billion euros set up by the central government for struggling regions.In response, the Madrid stock exchange plunged by 5.8 percent.A eurozone rescue deal for Spanish banks finalised by finance ministers on Friday provided no relief.The return on Spanish 10-year bonds jumped above the 7.0 percent danger level and another key measure, the difference between the yields on Spanish and safe haven German bonds, moved dangerously high, topping 600 points.The indicators revived warnings that the banking bailout may not be enough to stabilise Spain's finances, a key concern for the future of the eurozone.

 

Ministers: Bank to pump €1.4bn into Greece

The European Investment Bank will pump around €1.4bn ($1.7bn) by 2015 to fund infrastructure projects in crisis-hit Greece, the ministers of finance and development said on Saturday."I believe the accords will be signed in the coming days. We aim to restart, to re-activate the EIB in the private sector as soon as possible," said Finance Minister Yannis Stournaras after talks with EIB chairman Werner Hoyer.Greece's private sector has been starved of funds as the country grinds through a five-year recession that has cut off bank loans and even state contract payments.EIB loans this year had been limited to just 10 million euros, Stournaras said, as Greece plunged into political uncertainty in May, requiring two elections before a coalition government could be formed to continue EU and IMF-mandated reforms."The agreement is a vote of confidence in Greece. Besides infrastructure projects and support for small and medium companies, the cooperation will be expanded to facilitate foreign investment and privatisation," said Development Minister Costis Hatzidakis, according to the state-run Athens News Agency.There was speculation in April that the EIB would seek to insert drachma clauses into its contracts with Greek firms to ward against a possible Greek euro exit.But Stournaras insisted on Saturday that repayment will be in euros.

European Central Bank's Head: Euro 'Absolutely Not' In Danger

 

Worries about the 17-nation eurozone's future health have been fueled lately by Greece's persistent troubles and by the financial woes of Spain, the bloc's fourth-biggest economy. European ministers this week signed a rescue package worth up to (EURO)100 billion ($122 billion) for its ailing banks, but concern flared about Spain's prolonged recession and the debts of its regions, and the country's borrowing costs rose.Asked in an interview with French daily Le Monde whether the euro is in danger, ECB President Mario Draghi replied: "No, absolutely not."When outside analysts draw up scenarios for an "explosion" of the eurozone, "that underestimates the political capital that our leaders have invested in this union, as well as the support of European citizens," Draghi said in the interview, which was posted on the ECB's website."The euro is irrevocable," he added.The ECB this month cut its benchmark interest rate to a record-low 0.75 percent but gave little sign of further action soon to ease the crisis. It already has made two rounds of three-year emergency loans to banks, but has shown little appetite to reactivate its government bond-buying program."Our mandate is not to resolve the financial problems of countries, but to ensure price stability and to contribute to the stability of the financial system in full independence," Draghi said in the interview with Le Monde, conducted Wednesday  emphasizing the ECB's primary task of fighting inflation.Asked whether the ECB should do more to ease the economy, Draghi replied: "We are very open. We do not have any taboos."He said the ECB decided to cut interest rates in July because it forecast that inflation would be at its target level – close to or below 2 percent – at the start of 2013."It now seems likely that it will fall sooner than expected, at the end of 2012," he said. "Our mandate is to maintain price stability in order to prevent both higher inflation and a generalized, broadly based fall in prices. If we see such risks of deflation, we will act."As for the eurozone economy, Draghi said that the situation "has gradually worsened, but not to the point of plunging the whole of the monetary union into recession.""We still expect a very gradual improvement in the situation by the end of this year or the beginning of next year," he said.

NEWS,21.07.2012

Spain's economy wobbles amid bailout

Concerns about Spain's crippling financial problems flared again Friday as even news that the country had been given the final go-ahead for a bank bailout loan of up to $122.9 billion failed to take the sting out of a further round of bad economic news.Earlier Friday, finance ministers from the 17 countries that use the euro unanimously approved the terms for a bailout loan for Spain's banks, which have been struggling under the weight of toxic loans and assets from the collapse of the country's property market. Investors have been shying away from Spain for months, worried that the country could not keep control of its deficit during a recession while supporting its stricken financial sector.Spain is the 17-country eurozone's fourth-biggest economy, and many market watchers fear that if it asked for a bailout, the rest of the region could not afford to foot the bill. The country and its banks were also locked in a vicious debt spiral, where the shaky banking system has been propped up by the indebted government so that the banks could buy more government debt. The loan facility agreed to on Friday was designed to break that spiral.The bank agreement came as Spain cut its growth forecast and the heavily indebted Valencia region asked for financial help. The news sent the country's borrowing costs soaring and its stock prices plummeting. In afternoon trading, Spain's main IBEX index was down almost 6 percent, while the interest rate on the country's 10-year bond - an indicator of investor confidence in a country's ability to manage its debt - was at 7.2 percent. This is a rate that many market watchers consider too high a price for a country to pay in the long term.Treasury Minister Cristobal Montoro on Friday forecast Spain's recession will drag on into 2013.Unemployment, now at 24.4 percent, will remain about the same next year, Montoro said.Meanwhile, the economy will shrink 1.5 percent this year, a slight improvement from the 1.7 percent drop previously predicted, he added.The government this week passed painful austerity measures - tax increases and cuts to benefits, salaries and pensions - to reduce state debt and strengthen confidence in its finances.Spaniards staged huge anti-austerity protests in 80 cities and towns across the country Thursday.

After PFGBest, 'Crisis' In Commodities Trading Could Impact Everyday Consumers

Experts warn of a crisis in the commodities trade that could impact everyday consumers. First, there was a banking crisis. Now, after the collapse of Peregrine Financial Group, commodities markets may be on the brink of their own emergency, which could reach consumers at the gas pump or the grocery store.The high-profile failure of two commodities brokerage firms in less than a year led to a crisis of confidence among traders of commodity futures agreements to buy and sell basic goods like corn, wheat and oil. If this market stops functioning properly, experts warn, consumer prices could fluctuate wildly.“The futures industry had long been considered a very strong place to put your money,” said John Lothian, a registered futures adviser who runs an industry news and analysis service. The collapse of Peregrine, which does business as PFGBest, has “absolutely caused a crisis,” he said. “It’s going to take a while for the industry to restore its own confidence.”The crisis took root last October with the well-publicized collapse of commodities brokerage MF Global, which lost $1.6 billion in customer funds. That was followed, earlier this month, with the failure of Peregrine, which imploded just before the firm’s founder, Russell Wasendorf, admitted to taking more than $100 million in customer cash over two decades.The failures have caused some traders to lose faith in both of the industry’s regulatory bodies -- the Commodity Futures Trading Commission and the National Futures Association -- and the brokerage firms themselves. “I don’t know where to put my money to trade,” George Papagiannis, a lawyer and futures trader who lost money with Peregrine and MF Global, told The Huffington Post shortly after the PFG collapse. “I love to trade, but I don’t trust any broker now. So I’m not going to until I’m sure there’s good oversight."This sentiment could be bad news for regular consumers of basic commodities like oil and corn. Brokerages like Peregrine provide a platform for trading futures contracts, agreements to buy or sell a commodity like oil or corn at a set price in the future. Often farmers will trade futures to protect crop prices from unforeseeable fluctuations for example, a glut of commodities that causes prices to fall.“A collapse of a firm means that those commercial market participants who have to intelligently hedge their purchases have less and less faith in [the firms] with whom they’re investing,” said Gene Guilford, president of the Independent Connecticut Petroleum Association, a nonprofit association of gas and fuel oil dealers. “What ends up happening with a lack of faith is retailers end up hedging less of their purchases and leaving them open to the vicissitudes of the marketplace.”If farmers or oil dealers pull out of the markets, then there’s nothing to buffer commodity prices against unexpected fluctuations, meaning the everyday price of oil or corn could dip or spike wildly for average consumers, according to Guilford. Futures-trading volume in the first half of 2012 was down nearly 10 percent from the same period last year, according to data from the Futures Industry Association, the industry’s main lobbying group. In June trading volume was down more than 15 percent from June 2011. “We’re not on the cusp of a problem, we’re in a problem,” said Michael Greenberger, former director of trading and markets at the CFTC and current professor at the University of Maryland School of Law. “Nobody wants to trade.”Since the Peregrine collapse, blame also also fallen on regulators for failing to spot that fraud, despite years of audits and the collapse of MF Global only months before. On Wednesday, CFTC chair Gary Gensler told the Senate Agriculture Committee that "the system failed to protect the customers of Peregrine," only days after the CFTC rushed approval of new rules designed to protect brokerage customers. Those rules include a requirement that brokers file daily reports on the state of segregated customer accounts.But the reforms might not address the root of the problem. According to Greenberger, federal regulators simply don’t have the resources to keep up with the brokerage firms, leaving the door wide open to fraud. “The system is weak because it’s not adequately supervised by the CFTC,” he said, adding that the CFTC is being “starved” for cash. In June, congressional Republicans voted to slash the CFTC budget by about 12 percent, or $25 million. Experts warn that without proper regulatory oversight, there’s little chance that confidence will return to the commodities markets. “It would be one thing if it were just one firm, MF Global," said Lynn Turner, former chief accountant at the Securities and Exchange Commission, now managing director at consulting firm LitiNomics. “Now we've had a couple [of brokerage failures], and I can't help but feel there are others out there. But for the grace of God, this could happen again.”

NEWS,20.07.2012

12 killed, 59 wounded in Colorado theater shooting

A gunman in a gas mask barged into a crowded Denver-area theater during a midnight showing of the new Batman movie Friday, hurled a gas canister and then opened fire, killing 12 people and injuring at least 50 others in one of the deadliest mass shootings in recent U.S. history.When the smoke began to spread, some moviegoers thought it was a stunt that was part of the "The Dark Knight Rises," one of the most highly anticipated films of the summer. They saw a silhouette of a person in the haze near the screen, pointing a gun at the crowd and then shooting."There were bullet (casings) just falling on my head. They were burning my forehead," Jennifer Seeger said, adding that the gunman, dressed like a SWAT team member, fired steadily, stopping only to reload."Every few seconds it was just: Boom, boom, boom," she said. "He would reload and shoot and anyone who would try to leave would just get killed."The suspect was taken into custody near a car behind the theater and was identified by federal law enforcement officials as 24-year-old James Holmes.Holmes was studying neuroscience in a Ph.D. program at the University of Colorado-Denver, university spokeswoman Jacque Montgomery said. Holmes enrolled a year ago and was in the process of withdrawing at the time of the shootings, Montgomery said.Authorities gave no motive for the attack. The FBI said there was no indication of ties to any terrorist groups.Police said 71 people were shot. Another 59 adults and children were wounded. Aurora police Chief Dan Oates said the suspect wore a gas mask, a ballistic helmet and vest as well as leg, groin and throat protectors. He said he had an AR-15 military-style, semi-automatic rifle, a shotgun and two pistols.FBI agents and police used a hook and ladder fire truck to reach Holmes' apartment in Aurora, Oates said. They put a camera at the end of a 12-foot pole inside the apartment and discovered the unit was booby-trapped. Authorities evacuated five buildings as they tried to figure how to disarm the flammable and explosive material."It's something I've never seen before," Oates said.At least 24 people were being treated at Denver-area hospitals, some of them for chemical exposure apparently related to canisters thrown by the gunman. Some of those hurt were children, including a 4-month-old baby, who was treated a hospital and released.Police released a statement from Holmes' family: "Our hearts go out to those who were involved in this tragedy and to the families and friends of those involved."The movie opened across the world Friday with midnight showings in the U.S. The shooting prompted officials to cancel the red-carpet premiere in Paris, with workers pulling down the display at a theater on the Champs-Elysees. Around the U.S., police and some movie theaters stepped up security for daytime showings of the movie, though many fans waiting in line said they were not worried about their safety.President Barack Obama said he was saddened by the "horrific and tragic shooting," pledging that his administration was "committed to bringing whoever was responsible to justice, ensuring the safety of our people, and caring for those who have been wounded."It was the worst mass shooting in the U.S. since the Nov. 5, 2009, attack at Fort Hood, Texas. An Army psychiatrist was charged with killing 13 soldiers and civilians and wounding more than two dozen others.In Colorado, it was the deadliest since the Columbine High School massacre on April 20, 1999, when two students opened fire in the Denver suburb of Littleton, killing 12 classmates and a teacher and wounding 26 others before killing themselves. Columbine High is about 12 miles from the theater.Friday's attack began shortly after midnight at the multiplex theater.The film has several scenes of public mayhem  a hallmark of superhero movies. In one scene, the main villain Bane leads an attack on the stock exchange and, in another, leads a shooting and bombing rampage on a packed football stadium.The gunman released a gas that smelled like pepper spray from a green canister, Seeger said. "I thought it was showmanship. I didn't think it was real," she said.Seeger said she was in the second row, about four feet from the gunman, when he pointed a gun at her face. At first, "I was just a deer in headlights. I didn't know what to do," she said. Then she ducked to the ground as the gunman shot people seated behind her.She said she began crawling toward an exit when she saw a girl of about 14 "lying lifeless on the stairs." She saw a man with a bullet wound in his back and tried to check his pulse, but "I had to go. I was going to get shot."Witness Shayla Roeder said she saw a teenage girl on the ground bleeding outside the theater. "She just had this horrible look in her eyes. .... We made eye contact and I could tell she was not all right," Roeder said.Police, ambulances and emergency crews swarmed on the scene after frantic calls started flooding the 911 switchboard. Officers came running in and telling people to leave the theater, Salina Jordan told the Denver Post. She said some police were carrying and dragging bodies.Hayden Miller told KUSA-TV that he heard several shots. "Like little explosions going on and shortly after that we heard people screaming," he told the station. Hayden said at first he thought it was part of a louder movie next door. But then he saw "people hunched over leaving theater."

Bank bailout fails to ease fears for Spain

 

Concerns about Spain's crippling financial problems flared again Friday as even news that the country had been given the final go-ahead for a bank bailout loan of up to €100 billion ($122.9 billion) failed to take the sting out of a further round of bad economic news.Earlier Friday, finance ministers from the 17 countries that use the euro unanimously approved the terms for a bailout loan for Spain's banks, which have been struggling under the weight of toxic loans and assets from the collapse of the country's property market. Investors have been fighting shy of Spain for months, worried that the country could not keep control of its deficit during a recession while supporting its stricken financial sector.Spain is the 17-country eurozone's fourth-biggest economy and many market-watchers fear that if it asked for a bailout, the rest of the region could not afford to foot the bill. The country and its banks were also locked in a vicious debt spiral, where the shaky banking system has been propped up by the indebted government so that the banks could buy more government debt. The loan facility agreed to on Friday was designed to break that spiral.The bank agreement came as Spain cut its growth forecast and one of the country's heavily indebted regions asked for help. The news sent the country's borrowing costs soaring and its stock prices plummeting. In afternoon trading, Spain's main IBEX index was down almost 6 per cent while the interest rate on the country's 10-year bond an indicator of investor confidence in a country's ability to manage its debt was at 7.2 percent. This is a rate that many market-watchers consider is too high a price for a country to pay in the long term.Treasury Minister Cristobal Montoro on Friday forecast Spain's recession will drag on into 2013, although the economy will not be quite as weak as it now. According to the latest figures, the country's gross domestic product is expected to contract 0.5 percent in 2013,compared with the previous forecast for it to grow by 0.2 percent.Unemployment, which is now at 24.4 percent, will remain about the same next year, Montoro said.Meanwhile, the economy will shrink 1.5 percent this year, a slight improvement from the 1.7 percent drop previously predicted, he added.Also Friday, the region of Valencia that it would become the first to tap a fund designed to help out Spain's 17 semi-autonomous regions. Many Spanish regions are so heavily in debt due to overspending and the burst real estate bubble that they cannot raise money at affordable rates. As a result, they are struggling to repay creditors and settle contract bills.The fund for the regions was created only last Friday and will have €18 billion ($22 billion) in capital. A third of that is a loan from the state-owned company that runs Spain's many lotteries.The government this week passed painful austerity measures tax hikes and cuts to benefits, salaries and pensions  to reduce state debt and strengthen confidence in its finances.Spaniards staged massive anti-austerity protests in 80 cities and towns across the country Thursday night. Police say 15 people were arrested and 39 people injured overnight in central Madrid after tens of thousands of people took part in a demonstration.Across Europe, markets tumbled on concerns about Spain. In France, the CAC 40 index dropped 2.14 per cent while the German DAX index was off 1.9 percent. The euro fell to a two-year low of $1.2165.

Here is a round-up of what else is happening around Europe:

BRUSSELS

Finance ministers from the 17 countries that use the euro unanimously approved the terms for a bailout loan for Spanish banks of up to €100 billion ($122.9 billion).

As part of the deal the "eurogroup" of ministers called Friday for strict monitoring of the banks that receive the aid. It also requires the Spanish government to present this month plans to reduce its budget deficit to under 3 percent of the country's €1.1 trillion ($1.34 trillion) gross domestic product by 2014."The eurogroup is convinced that the reforms attached to this financial agreement will contribute to ensuring a return of all parts of the Spanish banking sector to soundness and stability," the finance ministers said in a statement.Christine Lagarde, the head of the International Monetary Fund, welcomed the agreement."The implementation of these measures will contribute to significantly strengthen Spain's financial system, an essential step in restoring growth and prosperity in the country," she said in a statement.The agreement, which will be signed in the next few days, calls for an initial disbursement of €30 billion ($36.9 billion) this month. The full amount of money needed to shore up Spain's banks will not be known until September, after individual banks have been assessed."The aim of this program is very clear: to provide Spain with healthy, effectively regulated and rigorously supervised banks, capable of nurturing sustainable economic growth," Olli Rehn, the European monetary affairs commissioner said in a statement.

FRANCE

France's corporations and wealthy people were in the line of fire Friday, when the country's lower house of parliament passed a revised 2012 budget on Friday to raise €7.2 billion ($8.8 billion) in new revenue.The bill, drawn up by President Francois Hollande's Socialists, reverses many of the measures passed under the former conservative president, Nicolas Sarkozy, including: tax breaks on overtime, a lower wealth tax and a reduction in the social charges that employers pay into the state benefit system.The measures were necessary if Hollande's administration is going to stick to a strict schedule for reducing the deficit while growth continues to slip. The amendments assume the country will grow just 0.3 percent this year. The Socialists have said they are committed to reducing the deficit to 4.5 percent of France's gross domestic product this year and 3 percent next.France's €2 trillion ($2.4 trillion) economy is the second largest after Germany's among the 17 countries that use the euro.

ITALY

Italy's Premier Mario Monti admitted Friday that the eurozone debt crisis had spread to Italy and that the country must try to avoid taking a bailout.He emphasized that Italy does not need further budget measures to raise revenue and shore up public finances.Monti was asked to form a government late last year after weeks of market turmoil over Italy's stagnant growth and high public debt  which at €1.9 trillion ($2.6 trillion) is nearly 120 percent of GDP  forced the previous Prime Minister, Silvio Berlusconi out of office.Italy's borrowing costs have risen steadily in recent weeks due to fears that the government will not be able to handle this high debt load as the country's economy stagnates.Many of the country's debts are due soon, with Italy having to roll over more than €300 billion ($410 billion) of its debts next year alone. On Friday, the 10-year bond yield was up 0.25 percentage points at 6.15 percent, while the FTSE MIB stock index dropped 4.38 percent.

NEWS,19.07.2012

Border strike threatens to disrupt Olympics

 

The British government has warned unions that they risk public anger if strikes by train drivers and passport officials, which threaten to cause major disruptions to the London Olympics, go ahead.The Aslef rail union announced on Thursday that 450 of its members in central England would walk out between August 6-8 in a dispute over pensions, affecting passengers travelling from cities such as Sheffield, Nottingham and Derby to the capital.The decision coincided with a move by border officials to strike on July 26, the day before the start of the Games, potentially delaying thousands of visitors arriving for the showpiece event."They are holding a strike on what is one of the key days for people coming into this country for the Olympic Games," Home Secretary Theresa May said."They risk damaging people's enjoyment of coming through into the UK," she told Sky News. "We will of course put contingency arrangements in place to ensure we can deal with people coming into the country as smoothly as possible."The threat of transport chaos added to pressure on the government, which has already had to call in thousands of extra soldiers to guard the Games after a failed private sector recruitment drive left an embarrassing hole in security.The wet weather, too, has dampened spirits ahead of the sporting showcase, which has earned the nickname the "Soggy Olympics" in the British media.Perhaps it was no coincidence that Police lyrics "sending out an SOS", from the song "Message in a Bottle", blared out before the daily news conference at the Olympic Park in east London.Culture Secretary Jeremy Hunt rejected accusations that the buildup to the Games had been a shambles, arguing that for such a major operation preparations had been remarkably smooth."Actually I think it has been a very smooth process," he told reporters, after a barrage of questions on issues ranging from security shortfalls to sanitation at the main Olympic site. "I think it has been an encouraging first week."I think it is very important that people understand that of course you are going to have a few hitches on a project of this scale, but actually things have gone pretty smoothly, and the athletes are getting a fantastic welcome in the village, and I think morale is very high."On the issue of the strikes, he said "It would be completely out of tune with the mood of the British public. This is a moment when Britain wants to show its best face to the world, and that is what the vast majority of the public wants as well."I would strongly counsel any unions thinking of disrupting this very important period, I think they would lose huge amounts of public support if they really tried to do this."The security glitch came after G4S said it could not provide a promised 10,400 security guards to staff Games venues, forcing the defence ministry to call up an extra 3,500 troops to take the armed forces contribution to 17,000.A further 2,000 troops may be required if G4S fails to find a minimum requirement of 7,000 staff, and on Thursday the government said 1,200 soldiers had been put on standby as a precaution.Hunt reiterated government assurances that the Games would be safe in a city where suicide bombers killed 52 people in attacks on the transport system in July 2005.Wednesday's suicide bomb attack on a bus carrying Israeli tourists at Burgas airport in Bulgaria could raise further concerns."Obviously we are monitoring the whole time what's happening with respect to the changing security situation, and we have extremely competent intelligence services who are giving us advice and we are responding to that on an ongoing basis," Hunt said when asked about the Burgas attack."The world can be absolutely certain that we will deliver a safe and secure Olympics. It has always been our number one priority."

China bolsters Africa ties with $20bn loans

 

Chinese President Hu Jintao on Thursday offered $20bn in loans to African countries over the next three years, boosting a relationship that has been criticised by the West and given Beijing growing access to the resource-rich continent.The loans offered were double the amount China pledged for the previous three-year period in 2009 and is the latest in a string of aid and credit provided to Africa's many poverty-stricken nations.The pledge is likely to boost China's good relations with Africa, a supplier of oil and raw materials like copper and uranium to the world's most populous country and second-largest economy.But the loans could add to discomfort in the West, which criticises China for overlooking human rights abuses in its business dealings with Africa, especially in Beijing's desire to feed its booming resource-hungry economy.Hu brushed off such concerns in his speech at the Great Hall of the People, attended by leaders including South African President Jacob Zuma and Equatorial Guinea's Teodoro Obiang Nguema, a man widely condemned by rights groups as one of the world's most corrupt leaders."China wholeheartedly and sincerely supports African countries to choose their own development path, and will wholeheartedly and sincerely support them to raise their development ability," Hu said.China will "continue to steadfastly stand together with the African people, and will forever be a good friend, a good partner and a good brother", he added at the summit held every three years since 2000.Hu also pledged to "continue to expand aid to Africa, so that the benefits of development can be realised by the African people". He did not provide an amount.Hu said the new loans would support infrastructure, agriculture, manufacturing and development of small and medium-sized businesses in Africa. Critics say China supports African governments with dubious human rights records as a means to get access to resources.The EU has rejected what they call China's "cheque book" approach to doing business with Africa, saying it would continue to demand good governance and the transparent use of funds from its trading partners. Such criticism draws rebukes from China that the West still views Africa as though it were a colony. Many African countries say they appreciate China's no-strings approach to aid."Africa's past economic experience with Europe dictates a need to be cautious when entering into partnerships with other countries," Zuma told the forum."We are particularly pleased that in our relationship with China we are equals and that agreements entered into are for mutual gain," Zuma added."We certainly are convinced that China's intention is different to that of Europe, which to date continues to intend to influence African countries for their sole benefit."China's friendship with Africa dates back to the 1950s, when Beijing backed liberation movements in the continent fighting to throw off Western colonial rule.Chinese state-owned firms in Africa also face criticism for using imported labour to build government-financed projects like roads and hospitals, while pumping out raw resources and processing them in China, leaving little for local economies. "Certainly quite a number of us are thinking we need to move into more value addition," South African's Trade and Industry Minister Rob Davies told Reuters."We need to export mineral products in a more processed form ... We need to bite this bullet very seriously." Trade has jumped in the past decade, driven by Chinese hunger for resources to power its economic boom and African demand for cheap Chinese products.China's trade with Africa reached $166.3bn in 2011, according to Chinese statistics. In the past decade, African exports to China rose to $93.2bn from $5.6bn.Industrial and Commercial Bank of China, for example, the world's most valuable lender, has invested more than $7bn in various projects across the continent.

NEWS,18.07.2012

Bulgaria Bus Blast: 7 Dead, 25 Wounded As Explosion Hits Bus Carrying Young Israeli Tourists

 

Israel's Foreign Minister says the deadly bus explosion in Bulgaria that has killed at least six people was caused by a bomb placed on the vehicle.Avigdor Lieberman says he was briefed by his Bulgarian counterpart Wednesday evening. He said seven people died, but Bulgarian authorities have placed the death toll at six.At least 32 people were wounded in the blast, which Israeli Prime Minister Benjamin Netanyahu called "an Iranian terror attack."A bus carrying Israeli youth exploded Wednesday in a Bulgarian resort, killing at least six people and wounding 32, officials said. Israeli Prime Minister Benjamin Netanyahu called it "an Iranian terror attack" and promised a tough response.The explosion took place in the Black Sea city of Burgas, some 400 kilometers (250 miles) east of the capital, Sofia. TV images showed smoke billowing from the scene – a parking lot at the local airport where the Israeli tourists had apparently just landed. Several buses and cars were on fire near the shell of the exploded vehicle.It was not yet certain what caused the blast in the eastern European nation – whether it was the result of a suicide bomber or a device remotely detonated – and no group immediately claimed responsibility.But Israelis often have been targeted in attacks outside their country, and Wednesday's bombing coincided with the 18th anniversary of the bombing of a Jewish community center in Argentina that killed 85 people.Israel suspects Iran of being behind several of those assaults. The two nations have long been in dispute over the nature of Iran's nuclear program. Israel has warned it will use military force to curb Iran's program if it must because it believes Tehran wants atomic weapons – a charge Iranian officials deny.The Israeli premier noted that Wednesday's attack followed similar attacks or attempted attacks in India, Georgia, Thailand and Kenya and Cyprus in recent months. He said that once again, "all signs point to Iran," though he did not offer any evidence to back up the claim."This is an Iranian terror attack that is spreading across the world," Netanyahu said. "Israel will react strongly to Iran's terror."The White House, which has preferred to pursue sanctions and diplomatic pressure against Iran in the nuclear dispute, also strongly condemned the attack. Press Secretary Jay Carney said President Barack Obama's "thoughts and prayers are with the families of those killed and injured."Tehran did not immediately issue any comment.Bulgaria, a country of 7.3 million bordering Greece and Turkey, is a popular tourist destination for Israelis. In recent years, Burgas has become popular as an inexpensive haven for groups of Israeli teenagers taking trips after finishing high school and before their military service.Israeli Foreign Ministry spokesman Jonathan Rosenzweig said a flight from Tel Aviv had landed at 4:45 p.m. and that the blast took place about 40 minutes later. The tourists were apparently boarding the buses to go to their hotels.Witness Gal Malka told Israel's Channel 2 TV that she saw someone board the bus just before it exploded. Malka, who was lightly wounded, said the bus was full of Israeli teenagers. "We were at the entrance of the bus and in a few seconds we heard a huge boom," she said. Bulgarian Interior Minister Tsvetan Tsvetanov told Bulgarian national TV from Burgas that a person died in the hospital, bringing the death toll to four. Prior to that announcement, a doctor at the Burgas city hospital told Bulgarian radio that there were 27 people hurt – and at least three had severe injuries. He was not identified.The Burgas airport was closed and traffic redirected. In Sofia, meanwhile, Mayor Yordanka Fandakova ordered a stronger police presence at all public places linked to the Jewish community. There are some 5,000 Jews in Bulgaria and most live in the capital.Iran, which insists its nuclear program is peaceful, has in the past accused Israel of being behind deadly attacks on Iranian nuclear scientists.Israel has not admitted a role in those strikes, but it and others have accused Iran of alleged reprisal missions, including a February bombing in New Delhi that wounded an Israeli diplomat's wife and the discovery of a cache of explosives in Bangkok that Thai officials claim was linked to a plot to target Israeli diplomats. Iran has denied involvement.In Azerbaijan's capital, Baku, security officials in March announced the arrest of 22 suspects allegedly hired by Iran for terrorist attacks against the U.S. and Israeli embassies and other Western-linked sites.Wednesday's attack also coincided with the 18th anniversary of the bombing of a Jewish community center in Buenos Aires that killed 85 people. An Argentinian magistrate has concluded Iran was behind that attack.Israeli officials also have long feared that the Iranian-backed Hezbollah guerrilla group would try to attack Israelis abroad. Hezbollah has accused Israel of assassinating a top leader in Damascus in 2008 and vowed to avenge the killing. Israel has never admitted involvement in the mysterious explosion.Deputy Foreign Minister Danny Ayalon on Israel's Channel 2 TV said there was no advance intelligence on an attack in Bulgaria.But counterterrorism expert Boaz Ganor said Iran and Hezbollah were the most likely culprits. He told  that all the indications pointed toward them. He also cited the arrest of a Hezbollah operative in Cyprus in recent days who was suspected of preparing a similar attack."This is probably a parallel operation and likely not the last in a series," he said. "All this looks like Hezbollah, Iran or a combination of the two."

 

Cuba's new stiff taxes on imported goods

Cuba has announced the imposition of stiff new import taxes that could substantially affect private entrepreneurs trying to get new businesses off the ground and many others who rely on informal shipments of merchandise from overseas.Starting in September, Cubans who come in and out of the country more than once a year will have to pay the equivalent of $4.50 a pound or more for imports, a fortune in a country where salaries average the equivalent of about $20 a month. Non-Cuban residents of the island, as well as Cuban Americans visiting relatives, would have to pay the new rates even if they only make one trip to the island.About a quarter of a million Cubans have started new businesses under free-market reforms instituted by President Raul Castroat the end of 2010. Many have opened cafes, repair shops, clothing stalls and outdoor stands that rely on products brought in from abroad.Cubans with permission to travel often fund their trips by acting as mules, coming back with bags stuffed with clothes, electronic goods, diapers and other things that are hard to find on the island. Until now, they would pay only about 25 cents per pound in import duties, with set fees for big-ticket items like televisions and microwave ovens. Food imports were free until earlier this year, when the government began charging duties.The new fees were posted quietly on the website of the government's Official Gazette and are dated July 2.Some details of the new law were confusing, given that the decree was published in dense legalese and appeared to contradict itself, and that no government officials were available to make sense of it. At times the decree refers to taxes being imposed based on weight, and at times on the value of merchandise.Either way, it was clear to private business owners that they would be paying much more, and they were not happy about it."It's a disaster," said Luis Carlos Espinosa, a 42-year-old who has set up a small stand in central Havana selling jeans, colorful blouses and children's clothing, and who had heard rumors of the new taxes but had not yet seen the published law. "It hurts us in every way. Where are we going to get the merchandise? There is no wholesale market here."Castro has ushered in dramatic changes like the legalization of a real estate and used car market, the granting of licenses for 181 types of private sector jobs, micro-loans for small business owners, the loosening of rules limiting independent restaurants, and a program to turn fallow government land over to small time farmers.But the momentum has undoubtedly waned this year, with no major reforms announced since December. Two promised high-profile changes, the creation of mid-size cooperative businesses and the elimination of travel restrictions that keep most Cubans from leaving the island, have yet to materialize, despite repeated assurances they are in the works.The reforms are part of a five-year plan to shed a million state workers and turn more than 40 percent of the economy over to the private sector, compared to about 15 percent today.

EU says Romania's gov't undermines rule of law

 

The European Union sharply criticized Romania's government on Wednesday, saying it has undermined the rule of law and independence of the judiciary as it tried to remove the president.President Traian Basescu was impeached by Parliament last month on grounds he overstepped his authority by meddling in government business and the judicial system. Critics accuse Prime Minister Victor Ponta of orchestrating the move as part of a power grab, and the political turmoil has dented Romania's credibility, with the United States and the EU expressing doubts about the left-leaning government's respect for the independence of the judiciary.A referendum will be held on July 29 to determine whether Basescu should be removed from office.The EU said in a report Wednesday that recent steps by the government raise concerns about its respect of fundamental democratic principles and it urged Bucharest to take urgent action to demonstrate its commitment.EU officials have been particularly concerned about the speed of the impeachment process and that the government tried to pass emergency decrees to change the referendum law to make it easier to remove Basescu.The EU allowed Romania and Bulgaria to join the bloc in 2007 despite delays in reforming their judicial systems and combating corruption and organized crime. Since then, it has been issuing regular annual reports on their progress.Jose Manuel Barroso, the president of the European Commission, said "exceptional events" in Romania had been a source of major concern."Politicians must not try to intimidate judges ahead of decisions or attack judges after decisions they don't like," Barroso told reporters Wednesday. He said an additional report would be prepared on Romania before the end of 2012."In this report we will look whether our concerns have been addressed," Barroso said.Romania's interim President Crin Antonescu said in a televised address later Wednesday that the government "categorically agreed" with the principles of "an independent justice system, respect for the constitution, laws and constitutional court."He said that he had some reservations about the report, but did not specify. "Romania is not isolated" he said. It will become "more and more European, and more connected to European standards."The EU has no provision to expel members, yet continued negative reports could contribute to a cutting of EU funds. The EU could also sanction Romania by refusing to give it passport-free travel within the EU anytime soon.