Showing posts with label minister. Show all posts
Showing posts with label minister. Show all posts

Saturday, May 4, 2013

NEWS,04.05.2013



Israel Confirms Airstrike Against Syria

 

With a second airstrike against Syria in four months, Israel enforced its own red line of not allowing game-changing weapons to reach Lebanon's Hezbollah, a heavily armed foe of the Jewish state and an ally of President Bashar Assad's regime, Israeli officials said Saturday.
But the strike, which one official said targeted a shipment of advanced surface-to-surface missiles, also raised new concerns that the region's most powerful military could be dragged into Syria's civil war and spark a wider conflagration.
Fighting has repeatedly spilled across Syria's borders into Turkey, Lebanon, Iraq, Jordan and the Israeli-annexed Golan Heights during more than two years of conflict, while more than 1 million Syrians have sought refuge in neighboring countries.
The airstrike, which was carried out early Friday and was confirmed by U.S. officials, comes as Washington considers how to respond to indications that the Syrian regime may have used chemical weapons in its civil war. President Barack Obama has described the use of such weapons as a "red line," and the administration is weighing its options – including possible military action.
Israel has said it wants to stay out of the brutal Syria war, but could inadvertently be drawn in as it tries to bolster its deterrence and prevent sophisticated weapons from flowing from Syria to Hezbollah or other extremist groups.
Israel and Hezbollah fought a monthlong war in mid-2006 that ended in a stalemate.
Israel believes Hezbollah has restocked its arsenal with tens of thousands of rockets and missiles, and Prime Minister Benjamin Netanyahu has repeatedly stated the Jewish state would be prepared to take military action to prevent the Islamic militant group from obtaining new weapons that could upset the balance of power.
It is especially concerned that Hezbollah will take advantage of the chaos in neighboring Syria and try to smuggle advanced weapons into Lebanon. These include anti-aircraft missiles, which could hamper Israel's ability to operate in Lebanese skies, and advanced Yakhont missiles that are used to attack naval ships from the coast.
While Israeli officials on Saturday portrayed the latest airstrike as the continuation of Israel's deterrence policy, more Israeli attacks could quickly lead to an escalation, leaving open the possibility of retaliation by Hezbollah or even the Assad regime and Syria ally Iran.
In January, Israeli aircraft struck a shipment of what was believed to be Russian-made SA-17 anti-aircraft missiles bound for Hezbollah, according to U.S. officials. Israeli officials have strongly hinted they carried out the airstrike, though there hasn't been formal confirmation.
Neither Hezbollah nor Syria responded to that strike.
In a warning to Israel earlier this week, Hezbollah chief Hassan Nasrallah said his militia "is ready and has its hand on the trigger" in the event of an Israeli attack on any targets in Lebanon.
Details about Friday's strike remained sketchy.
The U.S. officials said the airstrike apparently hit a warehouse, but gave no other details.
Israeli officials did not say where in Syria the Israeli aircraft struck or whether they fired from Lebanese, Syrian or Israeli airspace.
Israel possesses bombs that can travel a long distance before striking their target. The use of such weapons could allow Israel to carry out the attack without entering Syrian skies, which would risk coming under fire from the regime's advanced, Russian-made anti-aircraft defenses.
The Israeli and U.S. officials spoke anonymously because they had not been given permission to speak publicly about the matter.
Obama said Saturday it was up to Israel to confirm or deny any strikes, but that the U.S. coordinates very closely with Israel.
"The Israelis, justifiably, have to guard against the transfer of advanced weaponry to terrorist organizations like Hezbollah," Obama told the Spanish-language TV station Telemundo.
The Syrian government said it had no information on an Israeli attack, while Hezbollah and the Israeli military spokesman's office declined comment.
Amos Gilad, an Israeli defense official, would not confirm or deny the airstrike, but played down cross-border tensions.
Hezbollah has not obtained any of Syria's large chemical weapons arsenal and is not interested in such weapons, Gilad said. Instead, the militia is "enthusiastic about other weapons systems and rockets that reach here (Israel)," he said Saturday in a speech in southern Israel.
Assad "is not provoking Israel and the incidents along the border (between Syria and the Israeli-controlled Golan) are coincidental," Gilad said.
After Hezbollah's military infrastructure was badly hit during the 2006 war, the group was rearmed by Iran and Syria – with Tehran sending the weapons and Damascus providing the overland supply route to Lebanon.
"This is a very sophisticated network of Iranian arms, Syrian collection, storage, distribution and transportation to Hezbollah," said Salman Shaikh, director of The Brookings Doha Center and in 2007 involved in U.N. weapons monitoring in Lebanon.
Shaikh said Israel had detailed knowledge of weapons shipments to Hezbollah at the time and most likely has good intelligence now. "The Israelis are watching like hawks to see what happens to these weapons," he said.
With Israel apparently enforcing its red lines, much now depends on the response from Hezbollah and Syria, analysts said.
Israeli officials have long feared that Assad may try to draw Israel into the civil war in hopes of diverting attention and perhaps rallying Arab support behind him.
But retaliation for Israeli airstrikes would come at a high price, said Moshe Maoz, an Israeli expert on Syria.
"Bashar has his own problems and he knows that conflict with Israel would cause the collapse of his regime," Maoz said. "He could have done that long ago, but he knows he will fall if Israel gets involved."
Hezbollah, which is fighting alongside Assad's troops, appears to have linked its fate to the survival of the Syrian regime. Nasrallah, the Hezbollah chief, said this week that Syria's allies "will not allow Syria to fall into the hands of America or Israel."
On the other hand, Hezbollah could endanger its position as Lebanon's main political and military force if it confronts Israel, and it's not clear if the militia is willing to take that risk.
Hezbollah isn't Israel's only concern. Israeli officials believe it is only a matter of time before Assad's government collapse, and they fear that some of the Islamic extremist groups battling him will turn their attention toward Israel once Assad is gone.
Reflecting Israel's anxiety, the Israeli military called up several thousand reservists earlier this week for what it called a "surprise" military exercise on its border with Lebanon.
Obama has said the use of chemical weapons would have "enormous consequences," but has also said he needs more definitive proof before making a decision about how to respond.
Obama said Friday that he didn't foresee a scenario in which the U.S. would send troops to Syria. Instead, Defense Secretary Chuck Hagel has said Washington is reviewing its opposition to arming the opposition.
The U.S. so far has balked at sending weapons to the rebels, fearing the arms could end up in the hands of al-Qaida-linked groups or other extremists in the opposition ranks.
Secretary of State John Kerry, meanwhile, is heading to Moscow next week to try to persuade Russian President Vladimir Putin to support, or at least not veto, a fresh effort to impose U.N. penalties on Syria if Assad doesn't begin political transition talks with the opposition.
Russia, alongside China, has blocked U.S.-led efforts three times at the United Nations to pressure Assad into stepping down.
In Syria, about 4,000 Sunni Muslims fled the coastal town of Banias on Saturday, a day after reports circulated that dozens of people, including children, had been killed by pro-government gunmen in the area, activists said.
Also Saturday, Assad made his second public appearance in a week in the capital Damascus. Syrian state TV said Assad, who rarely appears in public, visited a Damascus campus, and footage showed him being thronged by a large crowd. The report said Assad inaugurated a statue dedicated to "martyrs" from Syrian universities who died in the country's uprising and civil war.

 

NRA official: Our freedom is under attack


President Barack Obama and national media are demonising law-abiding gun owners in the wake of recent violent acts, National Rifle Association leaders and political allies said on Friday at its first convention since the Connecticut school massacre.
"Our freedom is under attack like never before," Chris Cox, executive director of the NRA Institute for Legislative Action, said during a leadership forum.
"When a deranged criminal murders innocent children, they blame us."
The NRA is the nation's leading advocate for gun ownership. It works assiduously to defend the Second Amendment to the US Constitution setting out the right to bear arms.
Organisers expect about 70 000 attendees at the 142nd NRA Annual Meetings & Exhibits in Houston, which began on Friday and continues through Sunday.
Since last year's meeting, a national debate about gun laws sprang up after the December shooting at Newtown, Connecticut's Sandy Hook Elementary School, where 20 children and six adults were killed.
Major victory
The NRA scored a major victory in Congress last month when it beat back a proposal supported by Obama to expand background checks for gun buyers.
At the leadership forum, US Senator Ted Cruz, a Texas Republican, thanked those who fought against the background checks proposal and other efforts to tighten gun control.
"That's your victory," Cruz said. "It's the victory of the American people."
But Cruz cautioned that the fight is not over. Supporters of the proposal, which is a key part of Obama's gun-control effort sparked by the Newtown shooting, have vowed to revive it.
Texas Governor Rick Perry, who burst onto stage after a video showing him shooting a gun, described what he sees as a pattern: When a hate-filled person commits a horrific act, people who hate guns and hate gun owners call for more gun laws, he said. Creating more laws that criminals will ignore is not the solution, said Perry, a Republican.
"They do nothing but make it harder for law-abiding Americans to own guns," Perry said.
No one likes gun violence - especially NRA members, said the governor, who has been working to convince gun manufacturers in states considering tighter gun control to move to Texas.
NRA members are working to make people safer by proposing solutions such as enforcing existing laws, fixing the mental health system and protecting schools, said NRA executive vice president Wayne LaPierre.
They are teachers, firefighters, volunteers, moms and taxpayers, he said.
"The media and political elites can lie about us and demonise us all they want, but that won't stop us," LaPierre said.
"We are Americans, we are proud of it and we are going to defend our freedom."
In the exhibit hall, more than 550 vendors showed off everything from rifles and targets to offers of hunting safaris.
Seminars offered on Friday included a personal safety workshop called "Refuse to be a Victim" and a chef-taught class on cooking wild game.

Italian minister moved after slur


A junior member of Italy's new grand coalition government was given a new portfolio on Saturday, just two days after her appointment, after gay rights associations criticised statements she had made as homophobic.

In a statement, Prime Minister Enrico Letta said Michela Biancofiore would no longer serve as undersecretary for Equal Opportunities, Sport and Youth Policies, but would be given the Public Administration and Simplification portfolios.

Biancofiore, a member of Silvio Berlusconi's conservative People of Freedom party, had told a web interviewer in January: "There are not just heterosexuals, but also different sexualities, which today, unfortunately, are very common."

Franco Grillini, head of gay rights group Gaynet, complained that Biancofiore was "known for her statements against the rights of homosexual couples," and questioned the "logic" of asking her to "work for civil rights, including those of homosexuals".

Paola Concia, an openly gay former parliamentarian from the centre-left Democratic Party, quipped that putting Biancofiore in charge of Equal Opportunities was akin to "placing Cruella de Vil as the guardian of a Dalmatian puppy mill".

Biancofiore responded to her critics in several newspaper interviews published on Saturday. "I am not a homophobe. As a true liberal, I hate all kinds of discrimination," she told La Repubblica.

Speaking to Corriere della Sera, she insisted that using the word "unfortunately" to describe homosexuality was just "a turn of phrase".

She accused gay rights groups of being prejudiced against her, and urged them to look at wider societal problems.
"They just defend their own partisan interests," Biancofiore said.

Mahmoud Ahmadinejad's Successor As President Of Iran Could Be Less Hostile Toward U.S.

 

For eight years, Iran's President Mahmoud Ahmadinejad has played the role of global provocateur-in-chief: questioning the Holocaust, saying Israel should be erased from the map and painting U.N resolutions as worthless. His provocative style grated inside Iran as well angering the country's supreme leader to the point of warning the presidency could be abolished.
Now, a race is beginning to choose his successor and it looks like an anti-Ahmadinejad referendum is shaping up. Candidate registration starts Tuesday for the June 14 vote.
Leading candidates assert that they will be responsible stewards, unlike the firebrand Ahmadinejad, who cannot run again because he is limited to two terms. One criticized Ahmadinejad for "controversial but useless" statements. Others even say the country should have a less hostile relationship with the United States.
Comments from the presumed front-runners lean toward less bombast and more diplomacy. They are apparently backed by a leadership that wants to rehabilitate Iran's renegade image and possibly stabilize relations with the West.
The result however may be more a new tone rather than sweeping policy change. Under Iran's theocratic system, Ayatollah Ali Khamenei wields supreme power, making final decisions on nuclear and military questions. However, the president acts as the public face of the country, traveling the world. A new president might embark on an international image makeover and open the door to less antagonistic relations with Iran's Arab neighbors and the West.
The vote comes at a critical time in Iran, a regional powerhouse with about 75 million people and some of the largest oil reserves in the world. Nuclear talks between Iran and world powers are at an impasse while the Islamic Republic barrels ahead with a uranium enrichment program that many are convinced is intended for atomic weapons. Iran also serves as the key ally of Syria's President Bashar Assad, a mainstay so far helping keep him in power as rebels fight to oust him.
It is also in the middle of an apparent shadow war with Israel. Tehran has blamed Israel for deadly attacks on its nuclear scientists. Israel in turn has alleged Iranian attack plots on its diplomats or citizens around the world, including one where two Iranians were convicted of planning to attack Israeli, American and other targets in Kenya on Thursday. Israeli Prime Minister Benjamin Netanyahu has warned repeatedly that Iran must be stopped from acquiring nuclear weapons, through use of force if need be.
While polls in Iran are unreliable, the tenor of the candidates' speeches reflects a sense among the public that Ahmadinejad's belligerent stance toward the rest of the world has not helped.
"Ahmadinejad has followed a policy of confrontation. He made a lot of enemies for Iran. What were the results?" asked Tehran taxi driver Namdar Rezaei, 40. "The next government should pursue a policy of easing tensions with the outside world."
All the main candidates – including a top adviser and a former nuclear negotiator – are closely linked to the ruling clerics, since opposition groups have mostly been crushed. They reflect the mood of Khamenei, himself a former president, who wants nothing more than to end the internal political rifts opened by Ahmadinejad.
On Wednesday, Khamenei told prominent clerics to avoid "divisive" comments during the election. It is the clerics who will select a small group of hopefuls, probably no more than six, for the ballot.
The ultimate goal is to find ways to ease painful Western sanctions that have evicted Iran from international banking networks, brought public complaints over rising prices and cut vital oil exports by more than half. But what still stands in the way is a complicated dance: Maintaining uranium enrichment while addressing Western fears that Iran could move toward atomic weapons – a charge it denies.
For more than two years, Ahmadinejad has openly defied Khamenei in an attempt to expand the authorities of the presidency. The disputes reached a meltdown point in late 2011, when Khamenei's loyalists mounted an impeachment campaign. Khamenei stepped in to call it off, but warned that Iran could one day eliminate the presidency for a system where the parliament picks a prime minister instead.
"This is a chance for Iran to bring a new tone after eight years of Ahmadinejad," said Ehsan Ahrari, a Virginia-based strategic affairs analyst. "There seems to be a real interest in the ruling system to quiet things down."
Of course, Ahmadinejad is not likely sit on the sidelines after he leaves office. He still carries significant populist support across Iran, particularly in rural areas that benefited from aid from his government. Whichever candidate he backs could get an Election Day bump.
He is now trying to push his top adviser and in-law, Esfandiar Rahim Mashaei, onto the ballot, but will likely be rejected by the Guardian Council, the group that vets all candidates. Ahmadinejad has been traveling around Iran for weeks, sometimes along with Mashaei.
After the internal political upheavals he triggered, the clerics are expected to stick with safe and loyal candidates, and the candidates know it and are playing to that dynamic.
Tehran's mayor, Mohammad Bagher Qalibaf, chided Ahmadinejad for "controversial but useless" statements that undermined Iran's international standing.
"Where did the case of the Holocaust take us? We were never against Judaism. It's a religion. ... No one could accuse us of being anti-Semitic," he told Iran's Tasnim news agency last month. "But suddenly, without consideration for the results and implications, the issue of the Holocaust was raised. How did this benefit Iran or the Palestinians?"
Another prominent candidate, Ali Akbar Velayati, took a clear shot at Ahmadinejad by saying Iran needs a "principlist" as the next president – meaning a conservative who will not question the authority of Khamenei or the ruling clerics.
Velayati, a senior adviser to Khamenei, has joined in an unusual three-way alliance with Qalibaf and parliament member Gholam Ali Haddad Adel. Each has promised to give key posts to the two others should he win the presidency.
"If we do not succeed, we have to try for another eight years in order to take back the country's management," Velayati said in a February speech in the seminary city of Qom.
Velayati has deferred to Khamenei on any possible overtures to the U.S. But Qalibaf and others suggest they would urge the leadership to remain open for direct talks.
"Confrontation with the U.S. is not a value by itself," Qalibaf said. "At the same time, an alliance with or bowing to the U.S. won't meet our interests, too. These are two extremist views. We should follow a realistic approach. Dialogue (with the U.S.) is not a taboo."
Mohsen Rezaei, a former chief of Iran's powerful Revolutionary Guard chief who is seeking another chance at the presidency after losing four years ago, says only that he favors a "win-win dialogue."
"That means we won't lose and they (West) won't think Iran is a threat to the world," he said.
And candidate Hasan Rowhani, Iran's former nuclear negotiator and Khamenei's top national security representative, also disparaged Ahmadinejad's grandstanding style, saying Iran needs a "government of prudence."
Another candidate, former Interior Minister Mostafa Pourmohammadi, said even restoring diplomatic ties with Washington is not out of the question as long as Iranian "interests are ensured."
"I believe there is no need for Iran to be at war with the U.S. forever," he said. "Iran has the capacity to protect and ensure its national interests while having ties with the U.S."
Ahmadinejad foe Akbar Hashemi Rafsanjani, a former president, appears unlikely to make one last presidential run, despite speculation to the contrary. The official IRNA news agency quoted Rowhani on Wednesday saying the 78-year-old Rafsanjani "will definitely not" be a candidate.
However, Rafsanjani still wields considerable clout, and his endorsement will carry weight. Earlier this week, Rafsanjani urged his nation to lower tensions with Iran's archenemy Israel, which is considering military action over Tehran's nuclear program.
"We are not at war with Israel," Rafsanjani was quoted as saying by several Iranian newspapers, including the pro-reform Shargh daily. He said Iran would not initiate war against Israel, but "if Arab nations wage a war, then we would help."
Ahmadindejad's role in this election stands in sharp contrast to the last, where he was front and center and backed by the clerics. Accusations that his re-election was clumsily rigged by a clerical establishment panicked by the possibility of reformers coming to power led to massive demonstrations and reprisals spanning weeks, the most serious unrest in Iran since the 1979 Islamic Revolution itself.
The election was so contentious that the two main opposition leaders of 2009, Mir Hossein Mousavi and cleric Mahdi Karroubi, remain under house arrest. The remnants of the opposition appear increasingly unlikely to persuade their one major hope, former President Mohammad Khatami, not to seek a comeback run. That leaves them with the choice of boycotting the vote or picking from an establishment-friendly lineup.
While this election is unlikely to spark the same fireworks, a desire for change remains.
"Why shouldn't we be in good terms with the outside world? Why tensions at home and abroad?" asked 35-year-old real estate agent Shahram Rashidi in Tehran. "That's why we really need a totally different president this time."


Sunday, April 7, 2013

NEWS,07.04.2013



French minister confirms 0.1% growth

French Finance Minister Pierre Moscovici said Sunday that France's economy was expected to grow just 0.1% this year, revising downward an official target as the country struggles to get back on its feet.

The French government had initially forecast 0.8% growth in 2013 for the eurozone's second largest economy, which continues to battle rising unemployment, stagnant growth and a stubborn budget deficit.

Speaking on Europe 1 radio, Moscovici also predicted growth for 2014 at around 1.2%.

For 2015, "I think French growth will get back to a cruising speed that will enable it to create jobs," he said, pointing to an expected growth of 2%.

His 2013 prediction confirms those already made by the European Commission and Organisation for Economic Cooperation and Development, which both forecast that the French economy would manage to grow by just 0.1% this year.

Moscovici already said last week that he "feared" growth in France would be around that figure, and Sunday's announcement confirmed this.

Last month, French President Francois Hollande insisted that the country's promised turnaround was still on course, despite near record unemployment, a drop in household purchasing power and thousands of layoffs.

Offshore accounts data reveal crimes


A trove of data obtained by a US-based journalists' group that details thousands of offshore accounts reveals several instances of swindles and other financial crimes, The Washington Post newspaper reported Sunday.

Among the 4 000 US individuals listed in the records, at least 30 were American citizens accused in lawsuits or criminal cases of fraud, money laundering or other serious financial misconduct, the report said.

They include billionaire hedge fund manager Raj Rajaratnam, who was convicted in 2011 in one of the biggest insider trading scandals in US history, and Paul Bilzerian, who was convicted of securities fraud, the paper noted.

The report was the latest by prominent newspapers around the world which were given copies of the data for scrutiny by the Washington-based International Consortium of Investigative Journalists.

The head of the ICIJ, Gerard Ryle, obtained the data, involving 2.5 million records of more than 120 000 companies and trusts set up by two offshore companies operating in the British Virgin Islands and in Asia and the South Pacific, on a hard drive after investigating a fraud and offshore haven case in Australia.

Several newspapers, including France's Le Monde and Britain's Guardian, have been publishing revelations based on the data.

The Washington Post's report said the records contained information on at least 23 companies linked to an alleged $230m tax fraud in Russia that was investigated by a Moscow-based lawyer named Sergei Magnitsky.

After Magnitsky informed Russian authorities of his findings, he was accused of fraud himself and thrown in prison, where he died in 2009 under suspicious circumstances.

One of the companies mentioned in the records was used to set up Swiss bank accounts, into which the husband of a Russian tax official deposited millions in cash, the paper said.

Today, there are between 50 and 60 offshore financial centers around the world holding billions of dollars at a time of historic US deficits and budget cuts, The Washington Post said.

Groups that monitor tax issues estimate that between $8 trillion and $32 trillion in private global wealth is parked offshore, according to the paper.

According to fraud experts, offshore bank accounts and companies are vital to those wishing to conceal complex financial crimes.

For example, Allen Stanford, who ran a $7bn Ponzi scheme, used a bank he controlled in Antigua, The Post noted.

And Bernard Madoff, who ran the largest Ponzi scheme in US history, used a series of offshore "feeder funds" to fuel the growth of his scam.

The Washington Post quoted a top official in the US Justice Department's fraud section, Paul Pelletier, as saying US owners of offshore accounts were sometimes trying to hide money from US tax authorities, law enforcement or regulators.

"As a prosecutor, it was very difficult pursuing these people," he said.

Italy to pay €40bn owed to business

The Italian government on Saturday gave its go-ahead for a bill to repay €40bn in debts owed to the private sector over the next 12 months in a bid to stimulate growth.

"The cabinet meeting today approved an urgent decree to pay back the debts of the public sector to the private sector," Prime Minister Mario Monti told a press conference after the talks.

US preparing for possible N Korea actions


The top US military officer said on Sunday the Pentagon had bolstered its missile defences and taken other steps because he "can't take the chance" that North Korea won't soon engage in some military action.
Heightened tensions with North Korea led the United States to postpone congressional testimony by the chief US commander in South Korea and delay an intercontinental ballistic missile test from a West Coast base.
North Korea, after weeks of war threats and other efforts to punish South Korea and the US for joint military drills, has told other nations that it will be unable to guarantee diplomats' safety in the North's capital beginning Wednesday.
US General Martin Dempsey, the Joint Chiefs of Staff chair who just wrapped up a visit to Afghanistan, was asked in an Associated Press interview whether he foresees North Korea taking military action soon.
"No, but I can't take the chance that it won't," he said, explaining why the Pentagon has strengthened missile defences and made other decisions to combat the potential threat.
Dempsey said the US has been preparing for further provocations or action, "considering the risk that they may choose to do something" on one of two nationally important anniversaries in April - the birth of North Korean founder Kim Il Sung and the creation of the North Korean army.
US General James Thurman, the commander of the 28 000 American troops in South Korea, will stay in Seoul as "a prudent measure" rather than travel to Washington to appear this coming week before congressional committees, Army Colonel Amy Hannah said in an e-mail on Sunday to the AP.
Thurman has asked the Senate Armed Services Committee, the House Armed Services Committee, and the House Appropriations subcommittee on defence to excuse his absence until he can testify at a later date.
Dempsey said he had consulted with Thurman about the rising tensions on the Korean peninsula.
Missile test
The Pentagon has postponed an intercontinental ballistic missile test that was set for the coming week at Vandenberg Air Force Base in California, a senior defence official told the AP on Saturday.
The official said US Defence Secretary Chuck Hagel decided to put off the long-planned Minuteman 3 test because of concerns the launch could be misinterpreted and exacerbate the Korean crisis. Hagel made the decision on Friday, the official said.
North Korea's military said this past week that it was authorised to attack the US using "smaller, lighter and diversified" nuclear weapons.
North Korea also conducted a nuclear test in February and in December launched a long-range rocket that could potentially hit the continental US.
The US has moved two of the Navy's missile-defence ships closer to the Korean peninsula, and a land-based system is being deployed to the Pacific territory of Guam later this month. The Pentagon last month announced longer-term plans to strengthen its US-based missile defences.
Citing North Korea's suggestion that diplomats leave the country, South Korean President Park Geun-hye's national security director said the North may be planning a missile launch or another provocation around Wednesday, according to presidential spokesperson Kim Haing.
In Washington, an adviser to President Barack Obama said "we wouldn't be surprised if they did a test. They've done that in the past."
US Senator John McCain said the North's young leader, Kim Jong Un, is playing a game of brinksmanship.
"In the past we have seen this repetitious confrontation, negotiation, incentives to North Korea to better behave, hopes that they will abandon their nuclear quest - which they never will, otherwise, they'd be totally irrelevant," McCain told CBS's Face the Nation.
"And so we've seen the cycle over and over and over again, for last 20 or 30 years. They confront. There's crisis. Then we offer them incentives - food, money. While meanwhile the most repressive and oppressive regime on earth continues to function," he added.
McCain said China "does hold the key to this problem. China can cut off their economy if they want to."

Israel Holocaust memorial day begins


Israel's annual memorial day for the 6 million Jews killed in the Holocaust has begun with a ceremony marking 70 years since the Warsaw ghetto uprising.
The uprising has come to symbolize Jewish resistance against the Nazis in World War II.
Sunday's main ceremony was taking place at Yad Vashem, Israel's official Holocaust memorial. Israel's president and its prime minister were set to speak before hundreds of Holocaust survivors and their families, Israeli leaders, diplomats and others.
The Israeli flag flew at half-staff, and a military honour guard stood at one side of the podium as poems and psalms were read and the Jewish prayer for the dead was recited.
The annual Holocaust memorial day is one of the most solemn on Israel's calendar.

Acting president fears death plot


Venezuela's acting president Nicolas Maduro has accused former US officials Roger Noriega and Otto Reich of plotting to kill him to prevent his victory in next week's presidential elections.
Speaking at a televised campaign event on Saturday, Maduro said the plot also involved "right-wing forces" from El Salvador, which had already dispatched paid assassins to Venezuela to implement the plan.
"Their goal is to kill me," said Maduro, who had been designated by the late Venezuelan leader Hugo Chavez as his heir apparent. "They want to kill me because they know they cannot win free and fair elections."
A presidential election to replace Chavez, who died of cancer last month, will be held on 14 April.
Maduro said part of the plot also involved sabotaging the nation's electrical grid.
Parts of oil-rich Venezuela suffer from regular power outages, a problem opposition leader Henrique Capriles had seized upon to criticise the socialist government that Chavez led for 14 years until his death on 5 March.
On Thursday, Maduro also accused the opposition of plotting to sabotage the national power grid to cause a blackout ahead of the election.
A conservative Mexican-American, Roger Noriega served as US Permanent Representative to the Organization of American States (OAS) from 2001 to 2003.
Otto Reich, a Cuban-American, was the US president's special envoy for the Western Hemisphere, assistant secretary of state and US ambassador to Venezuela.
While vocal critics of Venezuelan policies, both have repeatedly denied any involvement in Venezuelan affairs.

UK wants to change welfare system


Prime Minister David Cameron said on Sunday that Britain's welfare system had "lost its way" and become a "lifestyle choice", amid a raging debate on government cutbacks to state handouts.
Cameron's Conservative-Liberal coalition government, trying to rein in the national budget deficit, is bringing in a series of changes to the system this month - in the face of bitter opposition from the Labour Party.
The debate has been fuelled by the case of Mick Philpott, a nationally notorious welfare-dependent father of 18, who was jailed last week for the manslaughter of six children in setting fire to his own house.
Conservative finance minister George Osborne was blasted by Labour in unusually fierce terms when, asked whether Philpott was a product of the welfare system, he suggested there needed to be a debate about whether taxpayers should be subsidising lifestyles like his.
Opposition Labour finance spokesperson Ed Balls said for Osborne "to link this wider debate to this shocking crime is nasty and divisive and demeans his office".
Writing in The Sun newspaper, Cameron launched a staunch defence of the welfare shake-up, which includes capping the amount a household can claim at national average earnings.
Backfiring
He suggested it was "crazy" that welfare claimants could have a bigger income than workers.
The Conservative leader suggested that a system originally designed to protect the frail and be a "stopgap" was now backfiring.
"It was invented to help people escape poverty, but has trapped too many people in it. It was meant to be a stopgap in hard times, but has become a lifestyle choice for some. It was designed to bring us together, but is causing resentment," he said.
"No-one wants to work hard every day and see their hard-earned taxes being used to fund things they themselves cannot afford or keep generations dependent on welfare.
"So this month we are making some big changes. They are changes that have a simple principle at their heart: we are restoring the fairness that should lie at the very heart of our tax and welfare systems.
"We are saying to each and every hard-working person in our country: we are on your side."
The debate has set not only politicians at each other's throats but also newspapers and commentators of opposing political stripes.
Meanwhile a YouGov opinion poll for The Sun found that six out of 10 voters thought welfare handouts were too generous.
About 67% said the system needed an overhaul while 79% back the government's move to limit a family's welfare payments to 26 000 pounds a year - the average working family income.


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.