Showing posts with label mexico. Show all posts
Showing posts with label mexico. Show all posts

Tuesday, August 13, 2013

NEWS,13.08.2013



Recovery signs lift Cameron's poll hopes


Signs of a fledgling economic recovery in Britain have boosted voter trust in Prime Minister David Cameron's financial stewardship, strengthening his prospects ahead of an election in 2015, a poll showed on Tuesday.
The Guardian/ICM survey said that 40% of voters trusted Cameron and his Conservatives on the economy, up sharply from 28% in June, and comfortably ahead of the opposition Labour party, whose economic credentials won approval from just 24% of those asked.
The health of the economy and political parties' perceived ability to nurse it back to sustained growth after three rocky years is likely to be the single most important factor in deciding who wins the 2015 election.
The economy has shown unexpected signs of improvement in recent months with the Bank of England forecasting it will grow by 0.6% during the current quarter, the same as between April and June, and that growth will reach an annual rate of 2.6% in two years' time.
Labour remains a few points ahead of the Conservatives in the opinion polls but has seen its lead shrink after better economic data, even though many economists believe it is too soon to talk of a sustained recovery and are concerned about a possible housing price bubble.
Tuesday's poll put Labour's overall support at 35%, a mere three percentage points higher than the Conservatives.
Cameron, who governs in coalition with the centre-left Liberal Democrats, has put the economy at the heart of his re-election strategy, hoping a strong recovery will materialise and create a feel-good factor that will allow his party to govern alone next time.
According to Peter Kellner, of pollster YouGov, an improving economy poses a problem for Labour leader Ed Miliband.
"Now that Britain's economy has started to recover, he is likely to face a prime minister who can copy one of the slogans that Barack Obama used last year to secure re-election," he wrote.
"The president likened America's economy to a car that his predecessors had driven into a ditch. 'I don't want to give them the keys back,' he said. 'They can't drive'."
Labour, which governed Britain from 1997 to 2010, was in power when the global financial crisis hit and says it was managing the economy well but was knocked off course by events.
The Conservatives say Labour left Britain with its biggest budget deficit since World War Two and cannot be trusted to manage it again anytime soon.
Alastair Campbell, who was former Prime Minister Tony Blair's chief communications adviser, said Labour had allowed the Conservatives to unfairly cast them as the creators of the economic turmoil that followed the financial crisis.
"Britain had 10 good years of growth and prosperity under Labour which is one of the many reasons we won three elections and stopped David Cameron winning a majority," he wrote on his blog.
ICM Research interviewed 1 001 adults by phone on August 9 and 11.

Blasts halt Iraq oil exports to Turkey


Militants on Tuesday bombed a major pipeline carrying oil from northern Iraq to Turkey, stopping exports, a senior official from the North Oil Company official said.
The blast occurred near the town of Albu Jahash in Nineveh province, the official said, adding that production is still continuing, but the oil is being stored instead of exported.
Repairing the pipeline is expected to take between one and three days, the official said.
The 970-kilometre (600-mile) pipeline runs from Iraq's northern oil hub of Kirkuk to the port of Ceyhan on Turkey's Mediterranean coast.
There have been dozens of attacks on the pipeline so far this year, disrupting northern exports.
Oil ministry spokesperson Assem Jihad said earlier this month that Iraq intends to build a new pipeline from Kirkuk to the Turkish border, because the existing one has been repeatedly attacked and to increase Iraq's export capacity.
Iraq is dependent on oil exports for the lion's share of its government income, and is seeking to dramatically ramp up its sales in the coming years to fund the reconstruction of its battered infrastructure.

NSA secrets leaked to 'fearless' journos


US intelligence leaker Edward Snowden said in an interview released on Tuesday he chose to divulge details of a vast US surveillance effort to journalists who reported "fearlessly" on controversial subjects.
Snowden, in the interview released by The New York Times, said he chose documentary filmmaker Laura Poitras and Guardian reporter Glenn Greenwald because they were not cowed by the US government.
"After 9/11, many of the most important news outlets in America abdicated their role as a check to power  the journalistic responsibility to challenge the excesses of government - for fear of being seen as unpatriotic and punished in the market during a period of heightened nationalism," Snowden was quoted as saying in an encrypted conversation with journalist Peter Maass for the Times Sunday magazine.
"Laura and Glenn are among the few who reported fearlessly on controversial topics throughout this period, even in the face of withering personal criticism, and resulted in Laura specifically becoming targeted by the very programmes involved in the recent disclosures."
He said Poitras "demonstrated the courage, personal experience and skill needed to handle what is probably the most dangerous assignment any journalist can be given reporting on the secret misdeeds of the most powerful government in the world making her an obvious choice".
Snowden, who was granted asylum in Russia after spending over five weeks in a Moscow airport transit zone, is said by his lawyers to now be at an undisclosed secret location.
The United States wants to put Snowden on trial for leaking details of vast American surveillance programmes, but Moscow has steadfastly refused to hand him over.
A former contractor, Snowden released details of secret National Security Agency programmes aimed at thwarting terrorism which sweep up vast amounts of phone and internet data.
Snowden said that when he met the two journalists in Hong Kong for a filmed interview, "I think they were annoyed that I was younger than they expected, and I was annoyed they had arrived too early, which complicated the initial verification".
He said Poitras "was more suspicious of me than I was of her, and I'm famously paranoid".
Snowden added that he was surprised that Greenwald did not agree to his requests to encrypt all communications.
"This is 2013, and a journalist who regularly reported on the concentration and excess of state power," he said.
"I was surprised to realise that there were people in news organisations who didn't recognise any unencrypted message sent over the internet is being delivered to every intelligence service in the world."
"In the wake of this year's disclosures, it should be clear that unencrypted journalist-source communication is unforgivably reckless."

Voters mad about NSA spying face battle


Americans are becoming increasingly concerned about government invasion of privacy while investigating terrorism, and some ordinary citizens are finding ways to push back. They are signing online petitions and threatening lawsuits. Some are pressing their providers to be upfront when data is shared with the government, which federal law allows as long as the person isn't being investigated under an active court order.

The question is whether these anti-surveillance voters will be successful in creating a broader populist movement. Many lawmakers have defended the NSA surveillance programme a programme Congress itself reviewed and approved in secret.

And unlike the anti-war effort that rallied Democrats during President George W Bush's administration, and the tea party movement that galvanised conservatives in President Barack Obama's first term, government surveillance opponents tend to straddle party lines. The cause appeals to libertarian Republicans who don't like big government and progressive liberals who do but favour civil liberties. Together, these voters would have little in common otherwise.

Another complication is the potential of another terrorist attack. One spectacular act and public opinion could flip, much as it did after the
11 September 2001, terrorist attacks, back to favouring government surveillance. Politicians know this, with many of them opting to blast the Obama administration for not being more transparent but most opposing an end to broad surveillance powers.

"If in fact something happens, you're basically putting yourself in a position to look like you didn't do something when you should have. And that's got to be in the back of their head," said Ed Goeas, president of the Tarrance Group in Alexandria, Virginia, a Republican survey research and strategy company.

That leaves voter-activists with little to work with, even with national elections next year that expose one-third of the Senate and every member of the House of Representatives to the voters.

Constituents, lawmakers

"I don't believe it's going to be a driving issue" in the upcoming elections, Goeas added. "It's got to be the total picture" on national security that appeals to voters.

At issue is whether the government overstepped its bounds when it began collecting and searching the phone and Internet records of Americans to gather information on suspected terrorists overseas. A Washington Post-ABC News poll released late last month found that Americans are divided over whether they support the surveillance programmes revealed earlier this year, but most Americans 57% still say it's more important for the government to investigate terrorism than to put privacy first.

Like their constituents, lawmakers too are divided. Last month, a House proposal that essentially would have made the NSA phone collection programme illegal failed in a 217-205 vote that didn't fall along party lines. Republican House Speaker John Boehner and Democratic leader Nancy Pelosi were among the 217 who voted to spare the programme.

In the Senate, a small group of lawmakers namely Democratic Senators Ron Wyden and Mark Udall and Republican Senator Rand Paul is taking a stronger line in favour of civil liberties. But progress has been slow, with few co-sponsors joining their legislative proposals to limit NSA spying powers. Meanwhile, such influential senators as Democrat Dianne Feinstein have defended the programme and said Edward Snowden, who leaked details of the NSA programmes, is guilty of treason.

Doug Hattaway, a Washington-based Democratic strategist, said the reluctance by most lawmakers to take sides isn't surprising, considering that most Americans say they want both security and privacy.

"I don't see Democrats benefiting from joining forces with libertarians," he said. "If voters are looking for balance, I wouldn't hop on the bandwagon with Rand Paul."

Not taking it lying down

Another challenge for surveillance foes is that industry isn't exactly fighting back. Technology and phone companies often say they are prohibited from divulging details about government surveillance requests, but that's only partially true. Federal law prohibits alerting customers when they are surveillance subjects as long as a court order remains in effect. But not all gag orders last forever.

But that hasn't stopped some Americans from challenging the surveillance system.

Charlotte Scot, a 66-year-old artist from Old
Lyme, Connecticut, is a liberal who doesn't take things lying down. She moved to Canada in protest when Bush was re-elected in 2004.

So when Scot heard that major telecommunications providers have been turning over data about Americans' phone calls to the government since 2006, Scot demanded that her own phone company tell her what, if anything, it had shared about her.

She soon received a non-response from an unnamed customer service representative informing her how to opt out of its marketing programme, which only made Scot angrier.

"Dear Anonymous," Scot fired back in an e-mail, "I have always opted out of all advertising e-mails. ... However, my question was not about advertising. It was about what information AT&T turns over to the federal government and NSA. I appreciate an answer to this question."

'People are like sheep'

AT&T eventually responded with a link to its privacy policy and a promise that, while it doesn't comment on matters of national security, "we do comply with the law".

When AT&T wouldn't tell Scot whether her information had ever been shared with the government, chances are that's because it didn't want to not because it couldn't.

AT&T spokesperson Michael Balmoris declined to comment on Scot's case in particular or matters of national security. "We value our customers' privacy and work hard to protect it by ensuring compliance with the law in all respects," he said.

Meanwhile, Scot says she can't understand why other customers are not just as angry. She's now looking to switch providers, and has downloaded a mobile application called Seecyrpt that offers encrypted phone calls for $3 a month. But she knows it's unlikely that a majority of Americans will follow her lead.

"I'm just one of these people who gets riled about things," she said.
"People are like sheep."

Kerry defends NSA surveillance programs


US Secretary of State John Kerry defended the National Security Agency surveillance programs on Monday and downplayed their impact on US efforts to deepen relations with two key allies in Latin America.

Brazil and Colombia, two of the United States' closest friends in the region, have been rankled by reports that citizens of Colombia, Mexico,
Brazil and other countries were among the targets of a massive NSA operation to secretly gather information about phone calls and Internet communications worldwide.

The disclosures were made by NSA leaker Edward Snowden.

Kerry sought to play down the rift during a press conference in
Bogota before heading to Brazil on his first trip to South America as secretary of state.

"Frankly, we work on a huge number of issues and this was in fact a very small part of the overall conversation and one in which I'm confident I was able to explain precisely that this has received the support of all three branches of our government," Kerry said.

"It has been completely conducted under our Constitution and the law. ... The president has taken great steps in the last few days ... to reassure people of the
US intentions here."

‘Hotpoint issues’

He referenced the terrorist attacks of
September 11, 2001. "It's obvious to everybody that this is a dangerous world we're living in ... we are necessarily engaged in a very complex effort to prevent terrorists from taking innocent lives."

Colombian Foreign Minister Maria Angela Holguin said
Colombia officials had travelled to Washington to learn more about the surveillance program. "We have received the necessary assurances to continue to work on this," she said through a translator.

In her opening remarks,
Holguin said she appreciated Kerry's efforts to restart the Mideast peace talks.

Kerry said he doesn't think the recent flap over Israeli settlement announcements will derail the second round of
Mideast peace talks this week in the region.

Israel approved building nearly 1 200 more settlement homes Sunday  the third settlement announcement in a week. It fuelled Palestinian fears of a new Israeli construction spurt under the cover of US-sponsored negotiations.

"The announcements with respect to settlements were to some degree expected because we have known that there was going to be a continuation of some building in certain places," Kerry said. "And I think the Palestinians understand that. I think one of the announcements was outside of that expectation and that's being discussed right now."

He restated the
US position that it views the settlements as illegitimate. He said the recent controversy underscored the importance of getting to the negotiating table quickly and resolving the questions with respect to settlements.

"Once you have security and borders solved, you have resolved the question of settlements," he said. "With the negotiation of major issues, these kind of hotpoint issues ... are eliminated as the kind of flashpoints that they may be viewed today."

He said he expected to talk with Israeli Prime Minister Benjamin Netanyahu about the issue later today or tomorrow. "I'm sure we will work out a path forward."

‘Success story’

Kerry arrived late on Sunday in Bogota, the Colombian capital, at a time when the country is holding peace talks to end a half century-old conflict with the Western Hemisphere's most potent rebel army.

The rebel force has diminished in strength thanks in considerable measure to US military and intelligence support. Kerry's discussions in Colombia also focused on trade, energy and counternarcotics and he met with
Colombia President Juan Manuel Santos.

"Colombia is a success story," Kerry said. "The
Santos administration has taken a very courageous and very necessary and very imaginative effort to seek a political solution to one of the world's longest conflicts."

Kerry began the day by having breakfast with two negotiators from the Colombian government, which has been conducting peace talks in Havana, Cuba, with the Revolutionary Armed Forces of Colombia since last year.

Formed in the 1960s, the Farc is the oldest active guerrilla band in the
Western Hemisphere. Observers say the Farc currently has about 8 000 armed fighters.

After breakfast at his hotel, Kerry visited a gymnasium where members of the
Colombia police and army, many who have lost limbs in the conflict, were playing rugby in wheelchairs reinforced with hard plastic instead of spokes. The chairs were designed to take a beating and during the game, and some players collided so violently that their chairs overturned on the court.

Kerry rolled up one of his pants legs, a national show of support for those who have lost their limbs in the fighting.

Before leaving for Brazil, Kerry visited the headquarters of the Colombian National Police Counter-Narcotics Directorate for a briefing on the US-Colombia partnership on fighting drugs, progress that has been made during the past decade, and an update on Colombia's efforts to share its expertise in security work with other countries in the region.

Colombia has helped to train more than 13 000 international police personnel from 25 Latin American countries and more than 20 other countries since 2009.

According to the State Department,
Colombia has seen a 53% reduction in the cultivation of coca since 2007. Last year, Colombian authorities reported a record seizure of 279 metric tons of cocaine and cocaine products in the country and abroad.

The Colombian government has increasingly assumed operational and financial responsibility for many US-backed drug-fighting programs, has worked to dramatically reduce kidnappings and political assassinations and disrupt illegal narcotics trafficking with the help of more than $8.5bn from the
US since 2000.

But
US assistance to Colombia has been gradually decreasing, falling from $287 million in fiscal 2008 to $161 million in fiscal 2012.

US sets up surveillance review body


The Obama administration on Monday launched a formal review of its electronic intelligence gathering that has come under widespread criticism since leaks by a former spy agency contractor.

The Review Group on Intelligence and Communications Technologies will examine the technical and policy issues that arise from rapid advances in global telecommunications, the White House said in a statement.

The group will assess whether US data collection "optimally protects our national security and advances our foreign policy while appropriately accounting for other policy considerations, such as the risk of unauthorised disclosure and our need to maintain the public trust," the statement said.

The high-level group of outside experts has 60 days to deliver its interim findings. A final report and recommendations are due on 15 December.

A separate statement by Director of National Intelligence James Clapper confirmed the review. Neither the White House nor Clapper released details on the size or composition of the panel.

Public trust

In a news conference at the White House on Friday, President Barack Obama vowed to improve oversight of surveillance and restore public trust in the government's programs.

The formal review is one of four measures unveiled by Obama, who said he had ordered a review of the surveillance programs before ex-National Security Agency contractor Edward Snowden leaked secret documents to The Guardian and The Washington Post.

Obama's other measures include plans to work with Congress to pursue reforms of Section 215 of the anti-terrorism Patriot Act that governs the collection of so-called "metadata" such as phone records, and reform of the secretive Foreign Intelligence Surveillance Court, which considers requests from law enforcement authorities on intelligence-gathering targets.

Obama also vowed to provide more details about the NSA programs to try to restore any public trust damaged by the Snowden disclosures.

Civil liberty groups demanded more details on Obama's plans, but WikiLeaks founder Julian Assange has called the announcement "a victory of sorts for Edward Snowden and his many supporters".

The Obama administration has vigorously pursued Snowden to bring him back to the
United States to face espionage charges for leaking details of US surveillance programs to the media. Snowden is now in Russia, where he has been granted a year's asylum.

Tuesday, July 16, 2013

NEWS,16.07.2013



Snowden applies for Russia asylum


Fugitive US intelligence leaker Edward Snowden applied on Tuesday for temporary asylum in Russia, a pro-Kremlin lawyer said, after President Vladimir Putin accused Washington of "trapping" him in the country.

Snowden, wanted by the United States for revealing sensational details of its vast spying operations, is now spending a fourth week in the transit lounge at Moscow's Sheremetyevo airport without ever crossing the Russian border.

"The application has been filed with the Russian authorities" through the Federal Migration Service (FMS), said prominent lawyer Anatoly Kucherena, who has been in contact with Snowden.

"I have just left him," he told AFP after meeting the fugitive in the transit zone.

In his application, Snowden had written that he was concerned about his safety should he return to the
United States, the lawyer said.

"He wrote that he fears for his life, safety, he fears that torture or death penalty could be applied against him," Kucherena said separately in televised remarks.

Receipt confirmed

"And under these circumstances, understanding his position and situation, the Federal Migration Service should of course grant his request."

The head of the Federal Migration Service, Konstantin Romodanovsky, confirmed it had received the application. Putin's spokesperson Dmitry Peskov referred all questions to the FMS.

Kremlin-friendly lawyer Kucherena participated in Snowden's meeting with rights activists and pro-Kremlin lawmakers at Sheremetyevo last week and said Snowden had contacted him for consultations after the encounter.

Kucherena said he was helping Snowden negotiate the complexities of Russian legislation and the difference between the status of refugee, political asylum and temporary asylum.

"He is actively consulting with me," Kucherena said. "After the meeting we've been in frequent touch."

Russian authorities generally consider an application for temporary asylum for up to three months, with preliminary consideration taking up to five days.

'Trapped' by
US pressure

After the application is accepted, an applicant receives a temporary document allowing him to live and travel locally.

Temporary asylum lasts for one year and would in theory give Snowden enough time to find a way to leave
Russia, possibly for Latin America. It then can be extended every year for another 12 months.

Snowden flew into
Russia from Hong Kong on 23 June and has since been marooned in the transit zone of Sheremetyevo. He was checked in for an Aeroflot flight to Cuba on 24 June but never boarded the plane.

On Monday, Putin said Snowden would leave
Russia "as soon as he can" and accused Washington of "trapping" the American in Moscow, saying no country wanted to take in Snowden due to US pressure.

Breaking silence for the first time since he arrived, Snowden, who is essentially stateless after
Washington revoked his passport, held the closed-door meeting at the airport on Friday.

At the meeting, he said he would file for asylum in
Russia before he could work out a way to travel legally to Latin America, asking the activists to petition Putin on his behalf.

Kremlin green light


Venezuela, Bolivia and Nicaragua have indicated that they would be open to offering the 30-year-old a safe haven.

Putin said earlier this month Snowden could claim asylum in
Russia only if he stopped his leaks and the activists who had met Snowden on Friday said he promised not to harm the United States.

Even though the Kremlin has repeatedly said it had nothing to do with Snowden, political observers have noted that his meeting with activists at the state-controlled airport would have been impossible without a green light from the Kremlin.

The head of Amnesty International in
Russia, Sergei Nikitin, who took part in the airport meeting, said Snowden would likely receive asylum.

"The way everything was organised so quickly, the whole logistics make it obvious for us that there's an interest of the authorities," he told AFP. "So the decision will probably be positive."

Nikitin had said he believed plain-clothed representatives of Russian special services had taken part in Friday's meeting.

Washington has reacted sharply to the possibility that Moscow might offer Snowden a safe haven and accused it of providing him with a "propaganda platform".

 

Kid-free couples fuel high-end boom


While their parents may have scrimped and saved to raise small armies of children on a single paycheck, growing numbers of high-earning Mexican couples are putting the department store before the baby carriage.
Couples with dual incomes but no kids, or "Dinks," are on the rise in Mexico, nearly doubling since 2005. They are buoying a growing high-end goods market, splashing out on everything from expensive lingerie to home decor.
Though just over a million in number, the couples are a gold mine for leading brands, and their spending habits are shoring up consumer demand as Mexico's economy cools.
Sandra Rodarte, 27, an events producer who shops for Apple products and loves fine whiskies, drops at least 10 000 pesos ($780) a month on non-essentials like annual trips to the United States.
She and her live-in boyfriend have no plans to raise a family, she explains while lunching at the exclusive marble-clad shopping mall, Antara, in downtown Mexico City.
"It's more fun, freer ... as a person and as a couple," said Rodarte, who is conscious that being a Dink means going against the grain in a culture that values marriage and motherhood. "Of course there are stigmas. Here in Mexico, women are supposed to leave their homes in white to get married as virgins."
Little data exists on how much Mexican Dinks spend, but a 2008 study by consulting firm De la Riva Group found that each couple shells out about 165 000 pesos ($12 900) per annum, largely on movies, restaurants and bars - or some 220 billion pesos ($17.17bn) in total.
That infusion is helping to boost Mexico's luxury goods market, which is projected to expand 12% this year, on par with growth over the last four years, according to Bain & Company, a consulting firm.
By contrast, total retail sales grew 3.7% last year.
For luxury leather goods maker Coach, Dinks are a growing market, company president Ian Bickley said in an email.
The firm, which set up shop in Mexico a decade ago, now boasts 26 locations, its biggest presence in Latin America, and plans to open a new store in the city of Queretaro this year.
And with good reason.
Spending in Mexico on designer apparel, luxury accessories and fine wines hit $3.88bn in 2012, up from $2.16bn in 2004, according to Euromonitor, a sales tracking firm.
"We see a definite uptick in interest from brands that just a couple of years ago we never imagined ... would be calling us and saying, 'We're interested in Latin America and what can you tell us about Mexico?'" said Franco Calderon, president of Latin American Retail Connection, which helps consumer goods stores set up shop in the region.
His firm is working on plans with luxury lingerie brand Agent Provocateur to debut in Mexico through top-end department store chain Palacio de Hierro.
Falling birth rates, rising spending
Dinks, a concept born in the 1980s, are still a small subset of Mexicans, making up a projected 3.4% of households at the end of 2012. That compares with 4.5% in regional peer Brazil, 14% in the United States and 17.6% in the United Kingdom.
But analysts see the number continuing to grow, thanks to powerful social changes.
Mexican women, who once were far likelier to be looking after children than becoming lawyers, accountants or doctors, are now almost as well educated as men.
In 1960, only 0.5% of women had a university degree. By 2010 the number had leapt to almost 16 percent - just a fraction behind their male peers.
Meanwhile, birth rates in Mexico have plunged to an estimated 2.2 babies per woman this year from 5.7 babies in 1976, according to the national statistics agency.
Unlike in Europe, where the birth rate is a low 1.6, Mexican Dinks typically postpone child bearing rather than avoid it altogether. Seven out of 10 Mexican Dinks in the De la Riva Group survey said they want to have children eventually.
One of them is Tatiana Romero, a 27-year-old licensing compliance expert at software firm The Foundry. She and her boyfriend spend about 10 000 to 11 000 pesos ($780 to $860) a month on non-essentials, including 2 000 pesos ($160) for a nice meal.
Romero, who bought a Mexico City home with her partner this month, said she hopes to have kids by age 33, but for now, she is happy to enjoy "the acquisitive power, the ability to treat ourselves" that comes with two incomes and no children.
A fan of clothing brands from H&M and Zara to Tommy Hilfiger and Hugo Boss, Romero says having a family "is something I grew up with. You dream about getting married and having kids."
The combination of delayed parenthood and dual income has encouraged more expensive tastes.
"You're talking about relatively young couples that have strong purchasing power because they work and have enough discretionary income that they can undoubtedly dedicate to decorating their homes," said Carlos Miranda, vice president of Grupo Axo, which this year brought home decor brand Crate & Barrel to Mexico from the United States.
Axo, which also operates cosmetics company Sephora and clothing label Emporio Armani, has already opened two Crate & Barrel stores in Mexico City, with plans for a third in the city of Puebla.
Hey big spender
To be sure, some see potential headwinds over Dinks' creditworthiness and financial optimism.
"They're spending more than they can afford," said Bain & Co Partner Claudia D'Arpizio, who describes the group as "Henrys," "High Earners, Not Rich Yet."
The De la Riva study suggested that saving is not a big priority for Dinks. As a group, however, they earn more on average than all other types of households, according to a 2010 survey by the Mexican statistics office.
What is clear is that spending by the no-kids set is resilient.
Sales at department stores Palacio de Hierro and Liverpool rose about 10% in the first quarter from the year earlier, almost double revenue growth at supermarket chains Wal-Mart de Mexico and Soriana over the same period.
"Clearly the soft patch has had a bigger impact on Mexico's upcoming middle class and not necessarily on the wealthier segments of the economy, which continue to consume," said Will Landers, an equity portfolio manager at BlackRock.

Greeks strike against public sector cuts


Trains ground to a halt and hospitals worked with emergency staff as Greek workers went on strike on Tuesday in protest at government plans to fire thousands of public sector employees.
Athens must reform and shrink its civil service to receive more bailout funds from foreign lenders but the latest plan of job cuts has sparked uproar among Greeks struggling with an unemployment rate of nearly 27%.
More than a week of marches by municipal workers are expected to culminate in a rally before parliament in the capital, with garbage collectors, bus drivers, bank employees and journalists among the groups joining the walkout.
"We are continuing our fight to put an end to policies that annihilate workers and drive the economy to an even greater recession," said the private sector union GSEE, which called the strike with public sector union ADEDY.
"We will stand up to those who, with wrong and dead-end choices, have driven the Greek people to poverty and despair."
Flights to and from Athens will be disrupted as civil aviation unions stage a four-hour work stoppage in solidarity.
City transport was also affected with bus and trolley bus drives holding work stoppages in the morning and in the evening. Trains stopped running and tax offices and municipal services remain shut.
Representing about 2.5 million workers, the two unions have brought workers to the streets repeatedly since Greece slid into a debt crisis in late 2009.
The latest strike comes before a parliamentary vote on Wednesday on reforms Athens agreed with its European Union and International Monetary Fund lenders as a condition for €6.8bn ($8.9bn) in aid.
Among the measures included in the bill are job cuts for teachers, municipal police and local government posts.
Demolition of rights
On Thursday, German Finance Minister Wolfgang Schaeuble will visit Athens, which is also expected to draw protests from Greeks who blame European paymaster Germany for austerity policies that have shrunk pay levels and boosted unemployment.
Greece's lenders, which have bailed it out twice with €240bn in aid, have grown impatient with the slow progress it has made in streamlining a 600,000-strong public sector widely seen as corrupt and inefficient.
But with unemployment at an all-time high and at twice the euro zone average, many Greeks are furious at plans to put 12 500 workers into a "mobility pool" by September, giving them eight months to find work in another department or get fired.
Some 25 000 workers will be placed in the scheme by the end of the year.
The plan has turned into the latest headache for Prime Minister Antonis Samaras's fragile coalition government, which nearly collapsed last month after he abruptly shut the state broadcaster ERT and fired its 2 600 staff.
ADEDY accused Samaras of using the "coup-like" closure of ERT to pave the way for mass firings in the public sector.
"The policy of mass layoffs, the dismantling of public institutions responsible and the demolition of any notion of labor rights inaugurate a new undemocratic governance of the country," the union said.

Dutch look again at tax treaties


The Dutch government is reviewing double taxation treaties with developing countries to determine if they are unfair and should be renegotiated, State Secretary of Finance Minister Frans Weekers said.
The decision to examine the treaties, some of which date back to the 1950s, came after several studies found that emerging economies are losing revenue due to low tax rates set in the deals.
It also comes amid a growing international effort to halt tax dodging by multinationals.
The Netherlands has more than 90 double taxation agreements. Several thousand international corporations, including 80 of the world's largest, use the Netherlands to re-route profits from dividends, royalties and interest, often paying no withholding tax in the country of origin.
From the Netherlands, capital can be transferred to tax havens, often reducing tax rates to below 10%. The use of holding companies known as "brass-plaque" companies has led to annual capital flows of €8 trillion ($10.44 trillion), or more than 10 times annual Dutch GDP.
"These investments via the Netherlands are a problem because they involve unintended use of Dutch tax treaties and investment treaties," said tax researcher Francis Weyzig of Utrecht Univercity.
The government commissioned the outside study into its dual taxation agreements (DTA) with Bangladesh, Ghana, Uganda, Zambia and the Philippines, a spokesman for the Ministry for Development said.
It was launched shortly after Mongolia cancelled its treaty with the Netherlands, accusing the Dutch of facilitating fiscal avoidance.
"We are looking at whether these treaties are possibly damaging for these countries," Weekers told Reuters. "We are looking (to see) if they can be misused and if there is a level playing field."
Weekers said the study would determine if rich countries have won better terms than developing ones.
A June study by the Centre for Research on Multinational Corporations found that use of the Dutch tax system by multinational corporations causes €771m ($1.01bn) in annual lost tax revenue in 28 developing countries.
There are at least 12 000 "brass-plaque" firms known as special purpose institutions in the Netherlands. In 2010, €278bn in dividends, royalties and interest were channelled through them.
The companies create roughly 13 000 jobs and generate €3-3.4bn in annual income for the Dutch economy through taxes, wages and services, less than half a percent of annual GDP, a government-backed study by Amsterdam University's Centre for Economic Research (SEO), found.


Wednesday, April 3, 2013

NEWS,03.04.2013



Economist warns of radical climate change


The author of an influential 2006 study on climate change warned on Tuesday that the world could be headed toward warming even more catastrophic than expected but he voiced hope for political action. Nicholas Stern, the British former chief economist for the World Bank, said that both emissions of greenhouse gas and the effects of climate change were taking place faster than he forecast seven years ago.Without changes to emission trends, the planet has roughly a 50% chance that temperatures will soar to five degrees Celsius (nine degrees Fahrenheit) above pre-industrial averages in a century, he said."We haven't been above five degrees Centigrade on this planet for about 30 million years. So you can see that this is radical change way outside human experience," Stern said in an address at the International Monetary Fund."When we were at three degrees Centigrade three million years ago, the sea levels were about 20 some meters above now. On sea level rise of just two meters, probably a couple of hundred million people would have to move," he said.Stern said that other effects would come more quickly including the expansion of deserts and the melting of Himalayan snows that supply rivers on which up to two billion people depend.Even if nations fulfill pledges made in 2010 at a UN-led conference in Cancun, Mexico, the world would be on track to warming of four degrees (7.2 Fahrenheit), he said.Stern's 2006 study, considered a landmark in raising public attention on climate change, predicted that warming would shave at least five percent of gross domestic product per year.Despite the slow progress in international negotiations, Stern saw signs for hope as a number of countries move to put a price on greenhouse gases."My own view is that 2013 is the best possible year to try to work and redouble our efforts to create the political will that hitherto has been much too weak," Stern said.Stern said that French President Francois Hollande was keen for nations to meet their goal of sealing an accord in 2015 in Paris.Stern also voiced hope that German Chancellor Angela Merkel, long a prominent voice on climate change, would become more active after this year's elections.US President Barack Obama has vowed action on climate change after an earlier bid was thwarted by lawmakers of the rival Republican Party, many of whom reject the science behind climate change.Emissions have risen sharply in recent years from emerging economies, particularly China.

Minister vows to revive Cypriot economy


The new finance minister of cash-strapped Cyprus vowed on Wednesday to do "whatever it takes" to sort out the EU country's teetering finances and put the economy back on track for growth. Haris Georgiades was speaking hours after President Nicos Anastasiades swore him in, warning of "difficult days ahead" for an island struggling to recover from a near financial meltdown and the need for a crippling eurozone bailout.Anastasiades said this would entail "firstly, collectivity and, secondly, consistency and fiscal discipline and all those measures that will contribute to kick-starting the economy as soon as possible."The new minister, a 40-year-old British-educated economist, vowed to implement the terms of the bailout "fully... we shall meet all time frames and meet all targets"."We... shall do whatever it takes to fix our public finances and put our economy back on track for growth.""Even though today's circumstances might be bleak, the medium- and long-term prospects remain excellent. We have received a blow but I'm absolutely confident we shall overcome," said Georgiades.Under the terms of the bailout, Cyprus will drastically reduce the size of its bloated banking sector, raise taxes, downsize the public sector workforce and privatise some state-owned firms.Cyprus is already in recession, with unemployment at around 15% and expected to grow sharply this year and next.Forecasts before the deal was agreed saw GDP contracting by 3.5% this year.On Tuesday, outgoing finance minister Michalis Sarris said "2013 will be a very difficult year, and the beginning of 2014 will also be difficult. Beyond this I believe the prospects are positive".Georgiades, who became labour minister when Anastasiades was elected in February, was appointed after Sarris stepped down on Tuesday.Sarris had been chairperson last year of failed Laiki Bank, whose collapse was a major contributor to the crisis. He said he was resigning to cooperate with a panel of judges appointed to investigate the causes of the crisis.His departure came as the government wrapped up talks with the IMF, European Commission and European Central Bank that will open the way for Cyprus to receive a €10bn ($12.8bn) bailout.The deal will see Cyprus receiving the loan with an interest rate of between 2.5 and 2.7%, repayable over 12 years after a grace period of 10.On Wednesday, International Monetary Fund managing director Christine Lagarde said the IMF's contribution would be approximately €1bn."This is a challenging programme that will require great efforts from the Cypriot population," Lagarde said in a statement, but it "provides a durable and fully financed solution to the underlying problems facing Cyprus and provides a sustainable path toward a recovery".Under the final deal, Cyprus won a two-year extension, from 2016 to 2018, to get its public finances in order.Cyprus should get the first payment from the bailout next month after the rescue accord is formally ratified, the European Commission said.Also sworn in on Wednesday was Zeta Emilianidou, who becomes the first woman in the cabinet and replaces Georgiades at the labour ministry.Anastasiades told her: "The ministry you are undertaking certainly requires great sensitivity. It is a ministry that deals with the government's social policy for vulnerable groups" and with industrial relations.Banks have been operating under stringent capital controls since they reopened last Thursday, after a near two-week lockdown prompted by fears of a run on deposits.The central bank has been progressively easing these restrictions, and has now raised the limit on business transactions from €5 000 to €25 000 and allowing people to write cheques of up to €9 000.Thus far, there has been no labour unrest in Cyprus, but bank workers union ETYK called a two-hour stoppage for Thursday over fears that pension funds at Laiki and Bank of Cyprus are not being protected under the bailout.Last week, Anastasiades said every effort would be made to preserve provident (pension) funds at Laiki and Bank of Cyprus.

March US job gains worse-than-expected


The US private sector added 158

  • jobs in March, sharply below February's growth as the jobs market slowly recovers, payrolls firm ADP said on Wednesday.The worse-than-expected March reading followed February's upwardly revised figure of 237

  • new jobs, from an initial estimate of 198

  • Analysts on average had forecast 197

  • new jobs were added last month. The March number was well below the first quarter's average monthly gain of 191

  • jobs and marked the smallest increase since October.The massive US services sector continued to generate the greatest job growth, adding 151

  • posts in March from February.Goods-producing employment rose by 7

  • jobs, the slowest growth in six months.Manufacturing gained 6

  • jobs.Construction added no jobs, after three months of average gains of 29

  • "Construction employment gains paused as the rebuilding surge in the wake of Superstorm Sandy ended," said Mark Zandi, chief economist of Moody's Analytics, referring to the devastating storm that battered the Northeast at the end of October."The job market continues to improve, but in fits and starts," he said.The ADP report came ahead of the government's closely watched jobs and unemployment data Friday.The labour department was expected to report that the United States gained 192

  • jobs in March, slowing significantly from growth of 236

  • in February, and the jobless rate was unchanged at 7.7%.

IMF set to provide €1bn to Cyprus


The International Monetary Fund has agreed to provide approximately €1bn to the €10bn rescue plan for cash-strapped Cyprus, managing director Christine Lagarde said on Wednesday.This would be through a three-year 891 million Special Drawing Rights (about €1bn) loan, Lagarde said in a statement, adding that she expects the deal to go to the IMF executive board for approval in early May.The IMF, European Commission and European Central Bank agreed with Cyprus on Tuesday the terms of a programme that will see the country drastically downsize its bloated banking sector and put state finances in order."The Cypriot authorities have put forward an ambitious, multi-year reform programme to address the economic challenges they face," Lagarde said, describing it as "resolute.""The overarching goals are to stabilise the financial system, achieve fiscal sustainability and support the recovery of economic activity to preserve the welfare of the population."As part of the deal, Cyprus agreed last week to shut down bankrupt Laiki (Popular) Bank, transferring its deposits under €100 000 to the country's largest lender, Bank of Cyprus, which will be recapitalised.Deposits over €100 000 at Bank of Cyprus will be subject to a still-undetermined haircut which could reach 60% of their value. At the same time, the government imposed capital controls to prevent a run on banks.Lagarde said efforts will now "focus on completing the financial sector recapitalisation process, gradually restoring normal financial flows and facilitating the restructuring of banks' impaired loans".Cyprus has also committed itself to raise taxes, rein in spending and carry out structural reforms in the public sector to put its public finances in order.Lagarde said "this is a challenging programme that will require great efforts from the Cypriot population," but that it "provides a durable and fully financed solution to the underlying problems facing Cyprus and provides a sustainable path toward a recovery."She added that the measures adopted "seek to distribute the burden of the adjustment fairly among the various segments of the population and to protect the most vulnerable groups. The IMF, together with its European partners, will continue to support the efforts of the Cypriot people".

Dodging taxes 'second nature' in India


In a country long defined by its poverty, it's easy now to find India's rich.They're at New Delhi's Emporio mall, where herds of chauffeur-driven Jaguars and Audis disgorge shoppers heading to the Louis Vuitton and Christian Louboutin stores. They're shopping for Lamborghinis in Mumbai. They're putting elevators in their homes and showing off collections of jewel-encrusted watches in Indian luxury magazines. They're buying real estate in comfortable but unpretentious neighborhoods neighborhoods thought of as simply upper-middle-class just a couple years ago where apartments now regularly sell for millions of dollars.They're just about everywhere. Unless it's income tax time. Then, suddenly, they barely exist.The reality is simple: "There are very few people who are paying taxes," said Sonu Iyer, a tax expert at Ernst & Young in New Delhi. And tax dodging is everywhere. "It's rampant - rampant."If the generalities of that have long been known here, Finance Minister Palaniappan Chidambaram stunned the country in late February when he proposed a new tax on India's top earners. The surprise wasn't the temporary 10% surcharge on those earning more than 10,000,000 rupees, or about $185 000, per year, but the number of Indians who fall into that category.That number? Just 42 800 people."Let me repeat," Chidambaram told Parliament in his budget speech, making sure no one thought he had misspoken, "only 42 800" people say they earn that much.In a country of 1.2 billion people, a country where years of staggering economic growth annually create tens of thousands of new millionaires and a recent slowdown has done little damage to a thriving luxury goods market, far less than one ten-thousandth of the population admits they are in the top tax bracket.With so few Indians willing to come clean, the perennially cash-starved government has to scrabble every year for revenue.Among the rich, dodging taxes has become second nature, said Jamal Mecklai, CEO of Mecklai Financial, a Mumbai-based financial consulting firm. About 158,000 Indians are thought to be dollar millionaires, according to a 2012 Credit Suisse estimate, though some analysts believe the number is far higher."It's just taken as the reality" that most wealthy Indians are cheating, he said, adding that he pays everything he owes. India's top tax rate is currently 30%.It's not just the rich evading their taxes. Less than 3% of Indians file income tax returns at all, and officials say only about 1.5 million taxpayers say they earn more than 1,000,000 rupees per year about $18 000.Most of those not paying have legitimate reasons. Well over half the population earns so little they don't have to pay income taxes. Despite its ever-growing population of nouveau riche, more than 400 million Indians still live below the poverty line.Millions more people are exempt because regulations exclude agricultural income from taxes, no matter how much is earned. Since India has hundreds of millions of small farmers, and a powerful bloc of wealthy farmers, that's a tax break few politicians dare challenge. Various other tax breaks legally keep many more people off the tax rolls.The bulk of those paying income taxes, experts say, are salaried employees whose companies are responsible for making their tax payments. While those taxpayers can fudge their numbers to an extent, using inflated receipts to magnify tax breaks on expenses like housing, it's extremely difficult for them to completely escape tax authorities.But most everyone else from the barons of family-owned businesses to doctors, lawyers and small traders operate in largely cash economies that enable them, if they want, to hide most of their income.The size of India's underground economy and the amount of lost taxes is widely debated, but even the lowball figures are immense in a country with a nearly $2 trillion GDP. In recent studies, experts estimated that anywhere from 17% to 42% of the economy operates beneath the official radar.Billions of dollars are widely thought to be hidden in Switzerland, Singapore and other tax havens.Then there is the strange case of Mauritius. More than 40% of foreign direct investment in India comes through this tiny island in the Indian Ocean. In part, that statistic reflects an India-Mauritius tax treaty that legally eases the flow of investment funds into India. But, experts say, it also allows Indians to launder vast amounts of untaxed wealth by sending their illegal cash to Mauritius, then "round-tripping" it back to India in the form of legal investments.If it would take concerted effort to shut down complex, international money-laundering operations, catching at least some of India's high-end tax dodgers should be ridiculously simple. This is, after all, a country where flaunted wealth often seems as common as traffic jams.How about targeting the buyers of the 25 000 luxury cars sold last year in India? Or the buyers and sellers of big-budget apartments? What about the people racking up thousands of dollars a month in credit card bills? Maybe tax investigators could go to those high-end malls, looking to see who is buying all the expensive shoes.While the government says it recently has begun targeting some big spenders, mailing notices to tens of thousands of people they say may have underpaid their taxes, few believe officials have truly become aggressive."It's not really that difficult to chase down the tax dodgers," said Mecklai, the consulting firm CEO. "It's just a matter of putting the machinery in place."So why isn't the government doing that?The answers range from sheer incompetence to corrupt tax bureaucrats to a political class accustomed to making vast wealth on the side, and unlikely to do anything that might jeopardize its ill-gotten gains.Certainly the Indian public sees official corruption as a major part of the equation."Of course I don't pay all my taxes," said a New Delhi businessman who spoke on condition he not be named because he was admitting to breaking the law. "Why should I pay my taxes while the politicians are getting richer and richer every day?"Such talk is, experts say, the most commonly heard rationale for tax evasion, one entrenched by decades of political corruption and waves of official scandals.But it doesn't explain everything. Iyer, the Ernst & Young tax expert, notes that the culture of tax-avoidance runs deep in India. She points particularly to the way buyers and sellers of real estate openly discuss how much of the price will be paid in "white" declared money, and how much will be paid under the table in "black.""No one thinks of it as something to be ashamed about," she said. "In a country of holier-than-thou's, no one thinks that it's a blatant lie" to cheat on your taxes.Embarrassment, she said, may be what India needs most of all."The moment this society establishes a stigma to it, I think you'd see a change."

Cyprus to swear in new FM


Cyprus's new finance minister was due to be sworn in Wednesday following his predecessor's resignation hours after a probe was launched into how the island was pushed to the verge of bankruptcy. Haris Georgiades, a 40-year-old economist who had been serving as labour minister, will formally take up his new post a day after Michalis Sarris said he was stepping down to cooperate with judges investigating the failure of Laiki Bank, where he was chairman for much of last year.The bank's collapse was a major contributor to the island's near financial meltdown and need for a crippling eurozone bailout.President Nicos Anastasiades said on Tuesday he had accepted Sarris's resignation with "sadness" and lauded his "high political ethos" for stepping down.Sarris said he believed stepping down was "the right thing" to do to facilitate the investigators' work.His departure came as the government wrapped up talks with international lenders that will open the way for Cyprus to receive a €10bn bailout, said government spokesperson Christos Stylianides."Today we have completed the forming of the memorandum, which is a precondition for the loan agreement," with the period to implement the deal extended by two years to 2018 to "ease pressure on the economy", he said.It "should have taken place a lot sooner, under more favourable political and financial circumstances," he said, but added: "Even with this delay, the situation is now normalising, stabilising and the conditions to restart the economy are created."Cyprus is already in recession, and as he resigned Sarris said that "2013 will be a very difficult year, and the beginning of 2014 will also be difficult. Beyond this I believe the prospects are positive."

Ex-Goldman trader guilty in $118m scandal


A former trader with US banking giant Goldman Sachs has pleaded guilty to wire fraud.Matthew Marshall Taylor entered the plea Wednesday in federal court in Manhattan.Taylor admitted he took a trading position 10 times larger than he would have been allowed. He wanted to score profits that would enhance his reputation and boost his bonuses.The judge who accepted the plea said he was miffed that the government is holding Taylor responsible for only up to $2.5m in losses.Taylor was arrested on Wednesday on criminal charges of fraud linked to a scheme to hide an $8bn futures bet, officials said. Matthew Marshall Taylor "was in FBI custody as of early this morning," a source familiar with the government's case told AFP on condition of anonymity.The federal prosecutor's office in Manhattan said Taylor was due to appear before a judge on the charges "in connection with a scheme to accumulate and conceal an unauthorized $8bn position in a trading account that he managed at Goldman Sachs".In November, the Commodities Futures Trading Commission filed a civil suit accusing Taylor of defrauding his employer "by intentionally concealing... the true huge size, as well as the risk and potential profits or losses associated"."On or about December 13 2007, Taylor's scheme culminated in his concealment of an approximately $8.3bn long (S&P 500) e-mini futures position," the watchdog said, alleging that Taylor ended up defrauding Goldman Sachs of $118.4m.In December last year, the CFTC ordered Goldman Sachs to pay $1.5m in a fine for the actions of its trader, saying "it failed to diligently supervise its employees for several months in late 2007".The central bank eased restrictions imposed last week to prevent a bank run, raising the limit on business transactions from €5 000 to €25 000 and allowing people to write cheques of up to €9 000.With public anger mounting, Anastasiades said no one would be immune from the new judicial inquiry into the banking collapse, and called on the commission headed by former Supreme Court judge George Pikkis to investigate him and his relatives with "extra vigour".This is seen as a move to counter so far unsubstantiated allegations that family members used privileged information to get money out of the country before deposits were locked down.Other leading politicians and business figures have also been accused of taking advantage of their positions to protect their assets from a hit on bank deposits imposed by EU-led creditors last week.Under the bailout deal with the European Union, European Central Bank and International Monetary Fund, those with savings larger than €100 000 in the Bank of Cyprus face losing up to 60% of their deposits over that amount.Those in second lender Laiki will have to wait years to see any of their money over €100 000 as the bank is shuttered.Central bank official Yiangos Demetriou told state radio on Tuesday that Bank of Cyprus savers would now be able to access 10% of their deposits over €100 000.But he added the "troika" of bailout creditors had asked for more information before agreeing to release the full 40% of deposits over that threshold that savers can be sure of retaining.Banks have been operating under stringent capital controls since they reopened on Thursday, after a near two-week lockdown prompted by fears of a run on deposits.Central Bank of Cyprus governor Panicos Demetriades said the remaining controls would be eased in stages."I can't really tell you if it will be seven or 14 days before capital controls end," he told the Financial Times. "We have to lift them gradually."

Strike halts train, sea travel in Greece


Tens of thousands of travellers were stranded across Greece on Wednesday as seamen and train conductors called a 24-hour strike to protest austerity measures.Ferries were moored at ports across the country, and train services were disrupted as employees protested cutbacks, including the abolition of collective labour contracts that safeguard wage levels and other benefits.Dock workers were demanding back pay from ship owners and an end to undocumented and uninsured employees. The workers also want the government to cancel a plan to regulate the minimum number of dock workers required in each crew, saying it would lead to layoffs.Air traffic was also expected to be disrupted on Thursday as air-traffic controllers were to hold a 24-hour walkout.Greek unions have held dozens of strikes over the past three years to protest public sector pay cuts and tax hikes. The heavily indebted government passed the measures to secure bailout loans.

Italy seizes €1bn in Mafia-linked assets


Italian police on Wednesday said they had seized assets worth €1.3bn from a Sicilian renewable energy developer in the biggest ever seizure of Mafia-linked assets.The assets, including 43 wind and solar energy companies, 98 properties and 66 bank accounts, belonged to Vito Nicastri, a 57-year-old businessman dubbed the "Lord of the Wind" for his prominent role in the business."This is a sector in which money can easily be laundered," Arturo de Felice, head of Italy's anti-Mafia agency, told news channel SkyTG24."Operating in a grey area helped him build up his business over the years," De Felice said.The anti-Mafia agency said in a statement that it was the biggest seizure of mafia-linked assets.The assets had been frozen in 2010 and Nicastri is on probation under orders not to leave his town of Alcamo in western Sicily during the investigation.Nicastri had "numerous and high-level contacts with mafia figures," the anti-mafia agency said, adding that this had been confirmed by messages found during the arrest of two local Mafia bosses.The businessman was also linked to Matteo Messina Denaro, a fugitive who is considered the godfather of the Sicilian mafia, the statement said.The seizure "impacts in a significant way on the economic power of Matteo Messina Denaro, who is considered the lord of that land," it added.Italy's renewable energy sector has been heavily infiltrated by the mafia because of once-generous state subsidies and lax controls, as well as the availability of land in areas of southern Italy with a strong Mafia presence.