Showing posts with label perez. Show all posts
Showing posts with label perez. Show all posts

Tuesday, August 21, 2012

NEWS,21.08.2012


Israel's Posturing: Behind Netanyahu and Barak's Threats to Attack Iran

Successive Israeli governments have consistently inhibited in the past any public discussion about Iran's nuclear program and what Israel might do to prevent Iran from acquiring nuclear weapons. In recent weeks however, Prime Minister Netanyahu and Defense Minister Barak have been openly discussing the issue while intimating their readiness to take whatever actions necessary to eliminate the Iranian threat. The question is why Netanyahu and Barak have chosen to "advertise" their deep concerns now and why they have such an urgency to act at this particular juncture, both of which have prompted newspaper reporters and bandits to speculate about what the real intentions are behind this public exposure and what is to be expected. Meanwhile, former and current officials, including President Peres, have expressed pointed objections to taking any unilateral military strikes against Iran, insisting that if such action became necessary, it must certainly be led by the U.S. to shield Israel from being singled out and blamed for the potentially disastrous regional consequences.Having concluded that sanctions and diplomacy have failed as Iran is either technologically nearing the point of no return or achieving a zone of immunity that will make their most advanced nuclear plants at Fordo (near Qom) impregnable to air attack, the Netanyahu government has decided on a new strategy designed to achieve multiple purposes. While Israel's determination to prevent Iran from acquiring nuclear weapons has not changed, the new strategy is meant to strongly convey that Israel is not bluffing. Israel's groundwork for the new strategy is as follows: Israel will alert its closest ally, the U.S., alarm its European friends, credibly threaten Iran and gather more information, warn other enemies such as Hezbollah and Hamas, test the private sentiments and public reactions of the Sunni Arab states, and will finally prepare the Israeli public while laying in wait for the right moment to strike, should everything else fail.The Netanyahu government has already expressed its displeasure with the strategy the Obama administration has adopted to prevent Iran from obtaining nuclear weapons. Whereas many Israelis believe that President Obama's credibility is on the line and he will act militarily should it become necessary, others, including Netanyahu and Barak, are not so sure. They are concerned that Obama may eventually have to choose between preventing or containing Iran and will settle on the latter by providing Israel and other Arab allies in the region with some kind of security umbrella.Netanyahu and Barak are troubled by the fact that Obama has relied excessively on a diplomatic solution knowing full well that the Iranians are masters of playing for time. Moreover, he chose to impose gradual sanctions to which the Iranian government was able to adjust instead of inflicting real, crippling sanctions, especially after the failure of the first few sets of negotiations, which could have forced Tehran to change course. This approach, from the Israeli perspective, played into Iran's hand while engaging the P5+1 (the U.S., the United Kingdom, France, Russia and China plus Germany) in futile negotiations that have never stood a chance of success.By asking the P5+1 to declare that the talks with Iran have failed, Netanyahu is alerting the U.S. that time is of the essence and challenging Obama to take more decisive actions against Iran. Netanyahu's rationale is that since Obama seeks to prevent an Israeli attack in an election year, he will be under immense pressure from his presidential rival, Mitt Romney, not only to adopt a final set of truly crippling sanctions but tobe clear about his willingness to use force against Iran before it reaches the point of no return or enters the zone of immunity.Netanyahu's message of alarm is directed against the EU, Turkey and China, which will be the most affected by the potential disruption of oil supplies should the Strait of Hormuz become imperiled. Netanyahu and Barak are convinced that the EU in particular is engaged in wishful thinking, believing that continuing diplomatic efforts coupled with stiffer sanctions will force the Mullahs to come to their senses. The EU clearly view Netanyahu as overzealous about Israel's national security, are extremely worried about an Israeli attack and are convinced that the repercussions will be catastrophic. Thus, for them, no attack should be contemplated as long as Iran is willing to continue to talk.Using the repeated Iranian existential threat against Israel, and while observing the Western powers' ineptitude in the past in dealing with the genocide in Bosnia, Sudan and now the wholesale slaughter in Syria, Netanyahu has little faith in what the EU can, or will, do to bring Iran to a halt. The EU, from Netanyahu's perspective, could have done a great deal more to cripple Iran economically but it still has yet to do so. At the same time, the EU refuses to declare Hezbollah, Iran's prime surrogate but Israel's staunchest enemy, as a terrorist organization while it continues to allow Hezbollah to freely raise tens of millions of dollars in Europe, when much of it is used for buying armaments to target Israel.The direct threat against Iran is based on Netanyahu and Barak's calculation that although public discussion about the potential attack on Iran provides Tehran more time to prepare for the worst, it will provide Israel with certain advantages. Fear of an imminent Israeli attack will force the Iranian authorities to take additional security measures to protect their nuclear facilities, which will reveal Iran's preparedness and capabilities, and expose its weaknesses and how much of its boastings of a damaging counter-attack against Israel are in fact accurate. Importantly, Israel will also be in a position to better assess the Iranian public's reaction and whether the rumors of an imminent attack will precipitate panic, which may reveal how the Iranian authorities react and pacify the public. More than anything, Israel wants Iran to take its threats seriously, which explains why Netanyahu and Barak openly stated that when it comes to Israel's national security, Israel must, in the final analysis, rely only on itself. Netanyahu's and Barak's exposé is also intended to warn all those who might think of coming to Iran's aid by engaging Israel on another front (in particular with groups such as Hezbollah and Hamas) that they should think twice before they dare to provoke Israel. By openly discussing their intentions, Netanyahu and Barak want these groups or states to assume that Israel would not have discussed such a sensitive national security matter had it not taken into full consideration their potential involvements. The message to Hezbollah is clear: there will not be a repeat of the 2006 war, Israel will break its back and that this time around no one will come to its aid considering Syria is in shambles and Iran is under intense economic pressure and too busy to deal with the potentially catastrophic effects of an Israeli attack.The other target of Israel's open discourse on attacking Iran is to test the Sunni Arabs, especially the Gulf States led by Saudi Arabia. There have been ongoing tacit discussions between Israel and the Gulf States about the potential Israeli strike and how that might affect both their public reactions and their private interests and concerns. There is no doubt that all Sunni Arab states would prefer to prevent Iran from attaining nuclear weapons peacefully. But after failing to do so by diplomatic means, they would support an attack on Iran's nuclear facilities, whether the attack is carried out by Israel, the U.S. or through a joint effort. Saudi Arabia in particular sees the conflict between Shiites verses Sunnis in terms of regional domination with a focus on the Gulf, and views Iran with nuclear weapons as a nightmarish scenario that must be prevented at all costs. Finally, Netanyahu's and Barak's message was intended for the Israeli public not only to prepare them for a potential Iranian counter-attack but to begin psychological and logistical preparations ( including the distributions of gas masks, stocking underground shelters with food and water) to avoid public panic and rally the nation around the government's prospective actions. Although the Netanyahu government is not dismissive of the voices of the Israelis who consider a unilateral attack as ill-conceived and extremely risky, Netanyahu and Barak want to demonstrate unshakable resolve in the face of an existential threat and that the public can ultimately trust their judgment. Moreover, such an exercise, even if a strike is avoided either because of the United States or because of Netanyahu's/Barak's readiness to act, will be good for Israel and good for the entire region as long as Iran never acquires nuclear weapons.Israel has time and again stated in the past that it will not allow Iran to acquire nuclear weapons or the technology to quickly assemble such arsenals. The Israelis insist that whatever repercussions arise from attacking Iran's nuclear facilities will be far less ominous than allowing Iran to obtain nuclear capabilities, which will have far more reaching geopolitical and security implications that will adversely affect every state in the region.In the final analysis, an Israeli strike on Iran's nuclear facilities may not come as soon as many predict. The strike can and may well happen but it is very unlikely that such an incredibly ominous undertaking will occur without a minimum of U.S. acquiescence, if not outright support and direct involvement. Regardless of how much Netanyahu and Barak may be sure of themselves and Israel's military capabilities, they cannot afford to make any mistakes or miscalculations because Israel's future is on the line.Yet, exactly because of that, no one should think for a moment that Israel is bluffing. Netanyahu and Barak have concluded that diplomacy has run its course and only extraordinary, crippling and immediate sanctions may still have a slim chance of success. Once Israel determines that Iran has either achieved the point of no return or is about to reach the zone of immunity and the U.S. is not prepared to take military action, Israel will attack Iran singlehandedly and no consequences of such an attack, from the Israeli perspective, will fare against such an existential threat.


China's scramble for patents


China's ambitious drive to produce millions of new patents in the next few years as part of a switch from a "made in China" to "designed in China" economic model will curtail innovation standards, a European study warned today.China is seeking to transform itself from being the world's factory floor into a global pioneer by setting ambitious state-mandated patent targets -- a goal that has already resulted in it surpassing the United States last year in patent filings.The European Union Chamber of Commerce said in a report that China filed more than 1.6 million patent applications in 2011, but only 32% met the highest threshold for patent quality - new inventions.The study noted that while China's innovation potential is "impressive", its actual innovation is "overhyped"."This explosion (of patent applications) has come with a price in terms of the quality and mix of patents. This is not in the right direction," European Chamber Secretary General Dirk Moens said.In some cases, financial incentives and performance evaluations for state-owned firms, officials and academics drive the filing of low-quality patents as they seek to meet quotas - 2 million annually by 2015 under one national plan.In addition to inventions, China also gives patents for designs and "utility models", incremental developments that can advance an existing product but rarely result in technological breakthroughs.The United States does not use utility model patents, though some developed countries, such as Germany, do.Sixty-five percent of patent applications filed by medium and large-sized Chinese state-owned enterprises in recent years have been for the lower end design or utility model patents, making them among the country's least effective innovators, the study said."One cannot drive or 'force' creativity, but only nurture it, whereas creativity leading to breakthroughs of the type that typically produce the highest quality patents at best comes in spurts," it said, noting that at least 20 countries have greater innovation potential than the world's second largest economy.But Elliot Papageorgiou, an intellectual property expert at Rouse Legal in Shanghai, said utility model patents are good for China."In developing economies, you're not going to get a new wheel, you're going to get an improved or cheaper wheel," Papageorgiou.Indigenous rules rile foreigners Experts say weak intellectual property rights (IPR) have scared off some foreign firms from transferring technology or filing patents in China. Last year, U.S. Treasury Secretary Timothy Geithner lamented Beijing's lax controls that made possible the "systematic stealing" of American innovations.China has said it would drop some of its "indigenous innovation" rules that have riled foreign companies who say access to government equipment and technology orders hinge on their transferring patents and other intellectual property to Chinese firms or partners.But the EU Chamber study said indigenous intellectual property ownership was still a requirement for firms to access some Chinese government financing and subsidies, with the language writ large into many of the country's more than 10 national and 150 sub-national patents target plans."The essence of the IIP (indigenous innovation policy) system, in terms of setting forth controversial IPR requirements with financial incentives, appears very much still in force," the study said.

Sunday, June 10, 2012

NEWS, 10.06.2012.

Euro zone agrees to lend Spain up to $162b

 


Euro zone finance ministers have agreed to lend Spain up to 100 billion euros ($162 billion) to save its stricken banks and try to avert a broader financial catastrophe.Fellow finance ministers in the 17-nation euro zone accepted a plea from Spain in a statement released after a conference call lasting around two and a half hours.The Eurogroup and Madrid said the amount of the bailout would be sufficiently large to banish any doubts."The loan amount must cover estimated capital requirements with an additional safety margin, estimated as summing up to 100 billion euros in total," Eurogroup said in a statement.Spain said it wanted aid for its banks but would not specify the precise amount until two independent consultancies Oliver Wyman and Roland Berger - deliver their assessment of the banking sector's capital needs some time before June 21."The Spanish government declares its intention to request European financing for the recapitalisation of the Spanish banks that need it," Economy Minister Luis de Guindos told a news conference in Madrid.He said the amounts needed would be manageable, and that the funds requested would amply cover any needs.A bailout for Spain's banks, beset by bad debts since a property bubble burst, would make it the fourth country to seek assistance since Europe's debt crisis began.With the rescue of Greece, Ireland, Portugal and now Spain, the EU and IMF have now committed around 500 billion euros ($811b) to finance European bailouts.Washington, which is worried the euro zone crisis could drag the US economy down in an election year, welcomed the announcement."These are important for the health of Spain's economy and as concrete steps on the path to financial union, which is vital to the resilience of the euro area," Treasury Secretary Timothy Geithner said.Heated debate Officials said there had been a heated debate over the International Monetary Fund's role in Spain's bank rescue, which Madrid wanted kept to a minimum. It will not provide any of the money.In the end it was agreed that the IMF would help monitor reforms in Spain's banking sector, while EU institutions would ensure Spain stuck to its broader economic commitments.IMF Managing Director Christine Lagarde said the euro zone's plan was consistent with the IMF's estimate of the capital needs of Spain's banks and should provide "assurance that the financing needs of Spain's banking system will be fully met".Sources involved in the talks said there had also been pressure applied on Madrid to make a precise request right away, but Spain had resisted.Euro zone policymakers are eager to shore up Spain's position before June 17 elections in Greece which could push Athens closer to a euro zone exit and unleash a wave of contagion. Spain's auditors could report back after that date.Nonetheless, analysts said financial markets may be calmed by the announcement when they reopen on Monday."The figure of up to 100 billion ($162 billion) is more encouraging and pretty realistic; it's an attempt to cap the problem," said Edmund Shing, European head of equity strategy at Barclays."The issue, however, is there is still a lack of detail about where the money's coming from, which is crucial. The market will treat it with some caution until they see how it will be funded."The Eurogroup said the funds could come from either from the euro zone's temporary rescue fund, the EFSF, or the permanent mechanism, the ESM, which is due to start next month. Finland said that if money came from the EFSF, it would want collateral.EU sources said there was a preference to channel money to Spain through the ESM, rather than the EFSF. Under the ESM, an approval rate of 90% or less is needed to trigger aid, and the fund also has more flexibility in how it operates."That's why it's so important that the ESM ... be ratified quickly," German Finance Minister Wolfgang Schaeuble said.The Spanish government has already spent 15 billion euros ($24b) bailing out small regional savings banks that lent recklessly to property developers. Spain's biggest failed bank, Bankia, will cost 23.5 billion euros ($38b) to rescue and its shareholders have been wiped out."Whatever the formula being used, we need to say two things: first the innocent should not suffer for the guilty, second public money should come back to public coffers," said Socialist opposition chief Alfredo Perez Rubalcaba after speaking with Prime Minister Mariano Rajoy on Saturday morning.Light conditions The race to resolve the banks' troubles comes after Fitch Ratings cut Madrid's sovereign credit rating by three notches to BBB, highlighting the Spanish banking sector's exposure to bad property loans and to contagion from Greece's debt crisis. It said the cost to the Spanish state of recapitalising banks stricken by the bursting of a real estate bubble, recession and mass unemployment could be between 60-100 billion euros ($97-162b). Italy could yet get dragged in too. Its industry minister, Corrado Passera, said the economic situation in Italy had improved since the end of 2011, but remained critical. "Europe was more disappointing than we had expected, it was less capable of tackling a relatively minor problem such as Greece," Passera told a conference on Saturday.While Spain would join Greece, Ireland and Portugal in receiving a European financial rescue, officials said the aid would be focused only on its banking sector, without taking the Spanish state out of credit markets.That would be crucial to avoid overstraining the euro zone's rescue funds, which would struggle to cover Spanish government borrowing needs for the next three years plus possible additional assistance for Portugal and Ireland.Conditions in the plan did not appear to add to the austerity measures and structural economic reforms which Rajoy's government has already put in place."Since the funds being asked for are to attend to financial sector needs, the conditionality, as agreed in the Eurogroup meeting, will be specifically for the financial sector," de Guindos said.EU and German officials have cited national pride in the euro zone's fourth largest economy as a barrier to requesting a full assistance programme.The European Commission and Germany both agreed in principle last week that Spain should be given an extra year to bring its budget deficit down below the EU limit of 3% of gross domestic product because of a deep recession.The Eurogroup also said money could be funnelled to Spain's FROB bank fund although the government would "retain the full responsibility of the financial assistance".Irish Finance Minister Michael Noonan said the funds would be provided through the EFSF or ESM at the same interest rates which apply to funds provided to other bailout countries.

Wednesday, February 22, 2012

NEWS,22.02.2012


Venezuela's Chavez needs another operation




Venezuelan President Hugo Chavez speaks with workers at a tractor factory in Barinas 

Venezuela's President Hugo Chavez will undergo another operation in the coming days after doctors in Cuba found a lesion in his pelvis where surgeons removed a large cancerous tumor last year, he said.The 57-year-old socialist leader confirmed he travelled to Havana for the tests on Saturday. Rumors of the unannounced trip had prompted a flood of speculation among the opposition and supporters alike that he was at death's door. Chavez’s health is the wildcard ahead of an October 7 presidential election, when he will seek a new six-year term. He has never given many details about his condition so the news he needs more surgery was bound to feed doubts about his recovery.” There is no metastasis, just this small lesion in the same place where they removed the tumor," the president said during a televised tour of a factory in his home state of Barinas on Tuesday.” Because of the growing rumors, I'm obliged to give this information now ... it's a small lesion, about two centimetres across, very clearly visible. This will need to be taken out, it needs more surgery, supposedly less complicated than before.” He said the next operation would take place in the coming days, but that it had not yet been decided where.” No one should be alarmed ... I'm in good physical condition to face this new battle," he said. "It has to be verified whether there is any link with the tumor that was there before.” In a phone call to state TV later, the president added: "No one can say if it (the lesion) is malignant, but there is a high probability because it is in the same place.” He had insisted he was completely recovered, although medical experts had said it was too soon to make such a call. Donning a bright red hard hat to stroll around the proposed site of the giant Veneminsk factory, the president joked with workers and looked to be in reasonable health.A US cancer doctor told  that with such little detail it was impossible to know his real condition, but that the latest turn of events did not look good.” They have always played their cards close to their chest, so you never really know," said the doctor, who has followed the case from afar but asked not to be named.” But a two centimeter lesion in the same space where he had cancer before means there is a high probability of malignancy. This is serious, very significant.” Venezuela’s information minister had earlier denounced a report that Chavez had been rushed back to Havana for emergency treatment as part of a "dirty war by scum," launched by the opposition ahead of the election.A prominent opposition-leaning Venezuelan journalist, Nelson Bocaranda, wrote on Monday that Chavez, who had two operations in Havana last June, had returned unexpectedly to Cuba over the weekend and that some of his relatives had flown there too. Chavez allies were scathing about Bocaranda after the president appeared on television. Deputy Foreign Minister Temir Porras joked on Twitter: "They'll have to take me for an emergency operation in Cuba. I'm dying of laughter!” Local political analyst Luis Vicente Leon said any new "sympathy" bounce in support linked to the president's illness would be lower and short-lasting the second time round."Clearly the tensions within Chavismo will grow because of the uncertainty generated by this announcement," he said.The public's reactions to Chavez's news were mixed."Maybe it's time for a change in the country. Everything points to that," said Elizabeth Gonzalez, a 42-year-old housewife in Caracas. Car park attendant William Perez said the president had looked alright, if a bit swollen-faced.” He didn't appear bad or tired. He's a fighter, and like his motto he'll live and he'll conquer!" he said. Barclays Capital noted that polls show more than three-quarters of Venezuelans believed Chavez had fully recovered."However, if that perception changes it could significantly affect Chavez's re-election chances, not only physically limiting his ability to campaign but also creating doubts about the viability of a new term in office," it said. The opposition is newly united behind one candidate - youthful state governor Henrique Capriles - and see the vote as their best chance to end Chavez's 13 years in power. Recent opinion polls have given Chavez an edge over Capriles, thanks partly to a huge program of new state spending on social projects. But about a third of Venezuelans remain undecided, and competition for their votes will be intense.One medical source close to the team treating Chavez in Venezuela said he had been suffering a tumor lysis, or cell breakdown, which carried symptoms including a high fever.Before Chavez's reappearance on Tuesday, Venezuelan analyst Diego Moya-Ocampos had suggested his absence could well be a strategy by Chavez's campaign team to put the focus back on him and not Capriles, who since winning the opposition primary had been at the center of media and political attention.He said the fact that the latest rumors had spread so fast just underlined the anxiety among loyalists each time Chavez vanished from view for more than a couple of days. Chavez apologised to his supporters on Tuesday, saying he knew the speculation about his health was upsetting for them.” Always these rumors ... There are people who want me dead, who hate me so much," he said. "I am very sorry, because I know that while some people are happy, the majority are suffering.” Venezuela’s widely traded debt was largely flat to slightly higher. Its 2027 Global bond was up 0.56 points in price to bid 80.563, yielding 12.041%, unchanged after Chavez spoke.