NEWS,08.10.2012

Venezuela's Chavez revels in convincing election win

Venezuelan President Hugo Chavez pledged to deepen his socialist revolution after a comfortable election victory that could extend his divisive leadership of the OPEC nation to two decades.The new six-year term clears the way for Chavez to consolidate state control over Venezuela's economy, possibly with more nationalisations, and continue his support for left-wing allies in Latin America and around the world.The victory also cements his status as a dominant figure in modern Latin American history and an icon of the political left. But the slimmer margin of victory - 10 percentage points, down from 25 points in 2006 - reflected growing frustration among Venezuelans at day-to-day problems such as crime and blackouts, which Chavez will be under pressure to tackle.Tens of thousands of ecstatic supporters celebrated in the streets around the presidential palace in downtown Caracas overnight, pumping fists in the air after the former soldier was re-elected with 1.5 million more votes than younger rival Henrique Capriles."This has been the perfect battle, a democratic battle," the 58-year-old Chavez thundered from the palace balcony around midnight, holding up a replica of the sword of independence hero Simon Bolivar."Venezuela will continue along the path of democratic and Bolivarian socialism of the 21st century."It was an extraordinary victory for a leader who just a few months ago feared for his life as he struggled to recover from cancer. Turnout was a record 80 percent of registered voters, boosting Chavez's democratic credentials despite critics' depiction of him as an autocrat who tramples on private enterprise and silences political foes.Supporters dripping with sweat strained to catch a glimpse of Chavez from the street below the palace while dancing and drinking rum. "Chavez, the people are with you!" they chanted."He will keep protecting the poor, the defenseless and the elderly," said teacher Gladys Montijo, 54, weeping with joy.In a nod to the opposition's strong showing, Chavez struck a conciliatory note and promised to be more focused in his new term beginning on January 10."Today we start a new cycle of government, in which we must respond with greater efficacy and efficiency to the needs of our people," he said. "I promise you I'll be a better president."Despite Chavez's anti-capitalist rhetoric, Venezuelan bonds are among the most-traded emerging market debt on Wall Street because they offer high yields. But Chavez's victory pushed prices lower on Monday as investors unwound bets that Capriles would pull off an upset.All eyes on Chavez A retired lieutenant colonel who first won fame with a failed 1992 coup, Chavez has become Latin America's main anti-US agitator, criticizing Washington while getting close to its adversaries, including Syria and Iran.A decade-long oil boom has given him tens of billions of dollars for social spending that ranges from free health clinics to new apartment complexes, helping him build a strong following among the poor that no other politician in Venezuela can match.It has also allowed him to dispense aid to ideological allies from Bolivia to Cuba, where Chavez's victory was met with relief. Cuban leader Raul Castro was among the first foreign leaders to congratulate Chavez, calling the vote a resounding endorsement of the Venezuelan leader's "Bolivarian Revolution."Chavez sends discounted oil to more than a dozen Central and South American countries. Communist-led Cuba, for example, receives more than 100,000 barrels a day of Venezuelan crude.Venezuela is often repaid for the oil in services Cuba sends doctors to Venezuelan slums, others sometimes pay in food and livestock - which puts strain on the finances of state oil company PDVSA.With the election out of the way, all eyes are on what Chavez will do next. After his landslide win in 2006, he ordered takeovers in the telecommunications, electricity and oil sectors. Some worry he could now extend nationalisations to other corners of the economy, including the banking, food and health industries.Any recurrence of the pelvic cancer that has already forced him to undergo three operations in Havana since June 2011 could derail his plans.The constitution states that if an incumbent steps down in the first four years of a six-year term, a new vote would be called - meaning that under such a scenario Capriles or another opposition candidate would have another crack at power.Chavez, who has looked rejuvenated in recent weeks after a sluggish start to the election campaign, was expected to hold a news conference later on Monday.Opposition leaders were crushed by the loss. It followed nearly a month of euphoria among Capriles supporters as the 40-year-old polished his stump speeches, held increasingly fervent rallies and appeared to be gaining ground in the polls.The youthful state governor put on a brave face in his concession speech, hailing his "house-by-house" campaign as the start of a long road to changing the direction of the country.On Monday, Capriles bared his soul in a flurry of emotional Twitter messages, and urged his followers not to give up."I know a lot of people are sad, but we need to bounce back and keep believing that we can and will build a better country," he said.State elections loom Capriles and other leaders of the Democratic Unity coalition must now prepare for state governor elections in December, when they will hope at least to increase the opposition's influence. They were hugely disappointed at winning a majority vote in only three of Venezuela's 24 states on Sunday.The US State Department congratulated the Venezuelan people for the high turnout and generally peaceful voting."We believe that the views of the more than 6 million people who voted for the opposition should be taken into account going forward," said State Department spokesman William Ostick.Though Capriles was indisputably the strongest candidate to face Chavez since the leftist leader was first elected in 1998, few in the opposition thought the fight was fair.Chavez made ample use of state television and spent 47 hours in "chain" broadcasts that forced other local television stations to carry speeches peppered with political commentary.He also handed out houses and pensions financed with state funds, often in ceremonies that glorified his administration, while warning that the opposition would cancel such programs.The spending spree has weakened Venezuela's finances and may force a currency devaluation in early 2013, which would likely spur inflation that has been a top complaint among voters.Relations with Washington are also likely to remain on edge, though Venezuelan oil has continued to flow to the United States over the years despite diplomatic tensions.

Single euro zone budget gains momentum

Debate about the idea of creating a separate budget for euro zone countries is intensifying in the run-up to an EU summit later this month, with less opposition to the proposal than many officials first expected, diplomats say.At a private dinner held last week among the EU ambassadors of several northern European countries, including Britain, Denmark, the Netherlands and Finland, those present were surprised to find a fair degree of consensus on the proposal."I wouldn't say that there was strong support for it, but there was certainly a feeling that this is an idea that should be explored in more detail," said one diplomat briefed on the discussion that took place at the gathering.The single budget proposal was first sketched out by Herman Van Rompuy, the president of the European Council, in a paper circulated in September as part of an effort to stimulate debate about how Europe's monetary union should be improved.In the paper, Van Rompuy said a "fully fledged fiscal union" among the 17 countries that share the euro could involve the creation of a single treasury office and "a central budget whose role and functions would need to be defined".Those suggestions have since been refined into guidelines that will form the basis of discussion among EU leaders at the summit on October 18-19. The idea will also be explored among euro zone finance ministers at a meeting in Luxembourg on Monday.There is still no clear definition of what a single, central budget would entail, but Germany strongly supports the idea and France is on board too, which in terms of euro zone decision-making means it has substantial momentum.Britain's support, underlined by Prime Minister David Cameron on Sunday, is also significant, even if it stems more from a desire to distance Britain from the problems of the euro zone than from any solidarity with the single currency club."There will come a time when you need to have two European budgets, one for the single currency, because they are going to have to support each other more, and perhaps a wider budget for everybody else," Cameron told the BBC on Sunday, the first day of his Conservative Party's annual conference."I don't think we will achieve that this time, but it is an indicator of the way that Europe is going," he said.Single euro zone budget While conceptually it may make sense for the countries that share one currency to also create a single budget, it immediately raises thorny questions about sovereignty, budget discipline and long-term ambitions.Germany's precise ideas about how a single budget would be financed, managed and employed are likely to be vastly different from Portugal's, Estonia's, Italy's or France's once leaders and finance ministers get into the nitty-gritty of the concept.Yet there are already some broad proposals doing the rounds, including the idea backed by France that the budget could be financed by revenue from a financial transactions tax (FTT).Germany and France are already driving an initiative to establish an FTT among nine euro zone, the minimum number permitted to do it alone. There is already support from eight countries and a ninth could come on board as soon as next week, giving added impetus to the plan.But other euro zone countries that might like a single budget, such as Finland, are lukewarm on the idea of an FTT, underscoring just how complex negotiations could become.There are also differences of opinion about why a single budget is desirable. Germany sees it as a means of building solidarity and tightening budget rules without moving to the more extreme suggestion of mutualising all euro zone debt.France sees a single budget more as a means of ironing out divergences in social and employment policy, arguing that it could be used to help underwrite unemployment benefits in a country suffering from much higher joblessness than the rest.While many countries are voicing quiet support for the idea, it is also clear that most have a conflicting take on what it would involve if it were ever to become a reality.Some have hinted that it could involve each country setting aside a fraction 0.3 or 0.5% of their GDP - for a communal budget, others dismiss that suggestion out of hand."The modalities are completely unknown," said one EU official when asked how a single budget might work.What's more, even if momentum is growing and it is likely to be a core part of discussions at the October 18-19 summit, it could be years before it becomes reality even if everyone supports it.Such a fundamental change to how the euro zone is administered would more than likely require a change to the EU treaty, a long, complex and divisive process.The treaty has already been tinkered with since the debt crisis began and there is a reluctance to open it up again.Even if German Chancellor Angela Merkel were to support treaty change, it is unlikely she would want to do it until after Germany holds elections in September next year.But there are also European Parliament elections in June 2014 and most analysts of euro zone politics do not expect it to be possible to drive through substantial treaty change until after that, meaning it may only happen in late 2014 or 2015.

Euro zone launches bailout fund

Euro zone finance ministers launched their permanent 500 billion euro bailout fund today but said Spain, the country widely expected to be first to draw on it, was taking steps to overhaul its economy and did not need a bailout for now.Arriving at a meeting in Luxembourg also set to discuss Greece and differences over how to recapitalise Europe's wobbly banks, German Finance Minister Wolfgang Schaeuble said Madrid had made clear it wanted no assistance."Spain needs no aid programme. Spain is doing everything necessary, in fiscal policy, in structural reforms," he told reporters as he arrived for a gathering that will also discuss plans to establish a single supervisor for euro zone banks."Spain has a problem with its banks as a consequence of the real estate bubble of the past years," he said. "That's why Spain is getting (EU) help with banking recapitalisation."Luxembourg Finance Minister Luc Frieden took the same line but added that if Spain were to make a request for aid beyond the 100 billion euros already earmarked to recapitalise its banks, it would be examined.As well as Spain's broad financial needs, Monday's meeting was expected to discuss the budget goals presented by Madrid last month, which the European Commission has yet to endorse.The Commission will publish its twice-yearly economic forecasts on November 7 and some officials have indicated that it may conclude Spain cannot meet its budget targets, which are based on the economy contracting by just 0.5% next year.The IMF forecast of a 1.2% recession may be revised further downwards on Tuesday.Evidence that Spain can't meet the targets it has set is likely to undermine market confidence and drive up Madrid's borrowing costs, which are currently hovering around a manageable 5.75%. Yields on 10-year bonds above 6% for a sustained period could force a request for help."I think we should deal with such a request when it comes, but so far the Spanish government is undertaking reforms which go in the right direction," Luxembourg's Frieden said.Many in the financial markets are convinced Spain will not be able to meet its sovereign funding needs at an affordable cost without euro zone and European Central Bank support, especially with several regions requiring a bailout from Madrid.No moves on Greece As well as Spain, ministers will discuss the situation in Greece, where intense negotiations continue between the government and the 'troika' of inspectors from the Commission, the ECB and the IMF over budget cuts for 2013-2014.Jean-Claude Juncker, the chairman of the Eurogroup, said no developments were likely at least until the troika finishes a report on Athens' debt situation and whether it is survivable. That report is now expected in early November."I don't think that we will have any major decisions on Greece," Juncker said. Asked whether a decision on Greece could be expected soon, he replied: "Hope never dies."Monday's meeting will also discuss plans for the ECB to be given responsibility for supervising all eurozone banks and the idea of creating a single budget for eurozone countries, issues that will be discussed further by eurozone and EU leaders at a summit in Brussels on October 18-19.One of the trickiest issues - when the ESM rescue mechanism should be allowed to directly recapitalise banks and how it would work in practice - looked set to be left aside, however.At a summit on June 29, EU leaders agreed that the ESM should be permitted to pump capital into banks directly once a single supervisory mechanism under the ECB is in place, possibly as early as January next year.But the Netherlands, Finland and Germany disagree on how to interpret the June 29th agreement, saying that direct bank recapitalisation should only apply to future problems not "legacy" bad banking debts such as those in Ireland and Spain.Under such circumstances, direct recapitalisation would not help Madrid or Dublin since it would fail to break the link between indebted governments and their indebted banks.EU leaders will now have to re-evaluate their June 29th agreement when they meet on October 18-19. Most diplomats expect the original interpretation to stand, meaning the costs of a direct recapitalisation of Spain's banks would not accrue to the government's books, but details remain to be fought over.With the euro zone countries involved in a lengthy process of trying to define how best to overhaul the monetary union that binds them, meetings of finance ministers increasingly involve broad discussions rather than specific decision-taking.However, the one firm action taken on Monday was the unveiling of the European Stability Mechanism (ESM), a 500 billion euro rescue mechanism for the 17 euro zone countries.The ESM, which replaces the temporary EFSF, will be used to lend to distressed euro zone sovereigns in return for strict fiscal and structural reforms that aim to put economies that have lost investor trust back on track."The start of the ESM marks a historic milestone in shaping the future of the European monetary union," the fund's chief executive, Klaus Regling, told reporters"The euro area now is equipped with a permanent and effective firewall, which of course is a crucial component in our strategy to ensure financial stability in the euro zone."The fund's lending capacity will be based on 80 billion euros of paid-in capital and 620 billion of callable capital, against which the ESM will borrow money on the market to lend it on to governments cut off from sustainable market funding.From Monday it has a capacity of 200 billion euros. It will reach its full capacity gradually by 2014.

NEWS,07.10.2012

Chavez's socialist rule at risk as Venezuelans vote

Venezuelans have voted with President Hugo Chavez's 14-year socialist revolution on the line as the leftist leader faced youthful rival Henrique Capriles in his toughest electoral challenge yet. Henrique Capriles, a centrist state governor, edged toward the still popular Chavez in final polls thanks to a vigorous campaign that united the opposition and made him its best chance of ending Chavez's 14-year rule.Chavez has used record oil revenue to support ideological allies around the world, while preaching a fiercely anti-US line, so the election will be watched eagerly from the United States to Belarus and Iran.Across the poor neighbourhoods where the flamboyant former soldier draws his most fervent following, loyalists prepared to blow bugles and trumpets in a predawn wake-up call for voters.Opposition sympathizers banged pots and pans in a protest against Chavez on Saturday night, creating a racket in the upscale neighbourhoods of eastern Caracas. In the city centre, which is more pro-government, the noise was drowned out by supporters playing his campaign music and shouting his name."I ask political actors from the left, right and centre to prepare emotionally to accept tomorrow's results. It's not going to be the end of the world for anyone," Chavez said at a last- minute news conference at the presidential palace.The 58-year-old president staged a remarkable comeback from cancer this year. But he could not match the energy of past campaigns - or the pace set by his 40-year-old basketball-loving opponent.Most well-known pollsters put Chavez in front. But two have Capriles just ahead, and his numbers have crept up in others.There is a risk of violence if the result is contested.There will be no formal international observers, although Venezuela invited a delegation of the UNASUR group of South American nations to "accompany" the vote.Local groups will be monitoring and both sides say they trust the electronic, fingerprint vote system. The opposition says it will have witnesses at all of the 13,810 polling centres from tiny Amazon villages to tough Caracas slums.Capriles geared up on Saturday for the vote by hiking a mountain trail at the edge of Caracas that is popular with athletic Venezuelans. He donned running clothes and mirrored sunglasses, and posed for pictures with supporters.Chavez spent about half an hour in the evening speaking to reporters alongside members of the UNASUR delegation, headed by an Argentine politician. Asked by one reporter if he wanted to stay in office beyond 2018, he glibly replied, "Twenty years is nothing," in reference to a popular Argentine tango song.Capriles shot back via Twitter. "Right now some people continue with the same nonsense and the same stories as always, the difference is this time they're on their way out!"In a politically polarised country where firearms are common and the murder rate is one of the highest in the world, tensions have risen alongside weeks of tough campaign rhetoric, and both camps are vowing to "defend" their votes.Capriles would face big challenges Chavez accuses the opposition of plotting violence and planning to "reject the people's triumph" when he wins, but says that effort will be defeated. Some opposition activists fear he could refuse to step down if the result goes against him.Victory for Capriles would remove the most vocal critic of the United States in Latin America, and could lead to new deals for oil companies in an OPEC nation that pumps about 3 million barrels a day and boasts the world's biggest crude reserves.Capriles wants to copy Brazil's model of respect for private enterprise with strong social welfare programs if he is elected - but he would face enormous challenges from day one.For a start, he would not take office until January 2013, meaning Chavez loyalists might throw obstacles in the way of the transition.He also would have to develop a plan to tackle entrenched high inflation, price distortions and an over-valued currency, while surely butting heads with the National Assembly, judiciary and state oil company PDVSA - all dominated by Chavez loyalists.Another big task would be to figure out the real level of state finances. Last month, a Reuters investigation found that half of public investment went into a secretive off-budget fund controlled by Chavez and had no oversight by Congress.The president has denounced his foes as traitors and told voters they plan to cancel his signature social "missions," which range from subsidized food stores to programs that build houses and pay cash stipends to poor women with children.Tens of thousands of new homes have been handed over this year, often to tearful Chavez supporters at televised events.If Chavez wins, he can consolidate his control over Venezuela's economy and continue his support for leftist governments across Latin America, as well as allies farther afield such as Iranian President Mahmoud Ahmadinejad, Syria's Bashar al-Assad, and Alexander Lukashenko of Belarus.

Spain faces fresh street protests

Thousands of Spaniards have marched in cities across the country to decry tough austerity measures, part of a growing protest movement that shows no signs of abating and could culminate in a general strike in November.Hundreds of thousands of Spaniards took to the streets yesterday, creating a headache for the centre-right government as it faces regional elections and tries to assure investors the country is stable.Spanish labour unions said they would call a general strike if the government did not hold a referendum on unpopular spending cuts. Prime Minister Mariano Rajoy unveiled 13 billion euros in additional savings in a tough budget last month."It's up to the government whether there's a general strike or not. If they were going to hold a referendum things would be completely different," said Ignacio Fernandez Toxo, leader of Spain's biggest union, Comisiones Obreras. Spain is now at the eye of the euro zone storm, with expectations mounting that the government will soon seek European aid to keep its borrowing costs under control."It's shameful - we're losing everything," said Carmen Lopez, a department store worker at Sunday's protest in the capital. "Pensions, salaries, public healthcare and education. They're taking everything."Some 60,000 people attended the union-organised march in the centre of Madrid. "How can there be peace without bread?" and "Their plunder, my crisis", placards read."I'm a teacher and they've really cut back in education - there are fewer resources, fewer teachers and more students," said Agustin Moreno, who teaches in the Madrid neighbourhood of Vallecas."We will do everything we can. We will keep protesting," he added.Protesters were decked out in the colours of various unions, and many wore T-shirts saying "I used to have social and labour rights"."They're taking away help for people who are unemployed, just at the time when people most need the help," said primary school teacher Francisca Valverde.Protests were taking place in dozens of cities on Sunday, but there were no reports of any violence.Under pressure Rajoy's People's Party (PP) faces regional elections in Galicia, the Basque Country and Catalonia - increasingly vocal about its desire to break away from Spain - in the coming weeks.In the wake of violence during a protest in Madrid on September 25, Rajoy urged a business audience in New York last week to focus on the "silent majority" of Spaniards who do not protest.But a survey in El Pais newspaper on Sunday showed 77% of Spaniards support the protesters, while more than 90% think protests will become more frequent.The government is increasingly unpopular at home and must convince uneasy investors that it can keep a lid on social unrest and carry out its austerity policies.The right to protest has become a topic of fierce debate in Spain since the September 25 demonstration ended in 35 arrests and left 64 people injured.Last week politicians from the ruling People's Party (PP) said laws surrounding protests should be tightened up, with Madrid's local government chief Ignacio Gonzalez saying the capital was in "a constant state of collapse" because of demonstrations.But a Spanish court on Thursday threw out a police case against the organisers of the protest, saying people had a right to express their opinion. The court will also investigate police brutality at Madrid's Atocha station during the demonstration.

Wall Street: US companies 'blaming' weakness in Europe

Wall Street may be bracing for a pullback as US season begins next week - if the clouds of profit warnings from bellwethers ranging from FedEx to Hewlett-Packard lead to a downpour of lower profits - or even losses.Thanks to aggressive stimulus plans from central banks around the world, the Standard & Poor's 500 index. SPX gained 5.8% over the third quarter.That sharp rally occurred even as companies were struggling. Earnings for that period are forecast to fall 2.4 percent from the year-ago quarter. If that happens, this would be the first earnings decline in three years..Market strategists and investors say US stock valuations are broadly out of sync with earnings estimates.They forecast a pullback in stocks in the coming weeks as more companies report results and reduce expectations for the fourth quarter and beyond.Fourth-quarter estimates for S&P 500 companies show a 9.5% gain in profit from a year ago, according to Reuters data. Analysts say that outlook is too high, given what investors are already hearing from the corporate world."It's a divergence right now where the valuations as far as equity prices (are concerned) have soared, and are really putting in place a stronger economy and stronger fundamentals," said Alan Lancz, president of Alan B. Lancz & Associates, an investment advisory firm in Toledo, Ohio."But earnings will be the telltale sign," Lancz added. "And if the guidance isn't particularly strong, the market might be setting itself up for a little disappointment. I don't see a major correction, but I do see a pullback."The earnings season will kick off on Tuesday with results from after the bell.Analysts expect Alcoa's third-quarter results to show it broke even, down from a profit of 15 cents per share a year earlier.JPMorgan Chase & Co and Wells Fargo, the first big financial names to report, are also on tap next week.Blame Europe Nearly half of S&P 500 companies guiding lower for third- quarter earnings blamed weakness in Europe, according to a Thomson Reuters survey.Another 11% blamed the weak global economy, 8% cited strength in the US dollar, and 6% cited the slowdown in China, the survey showed.Weakness in the US economy has not helped. The final read on US second-quarter gross domestic product last month showed growth of just 1.3%, weaker than an expected 1.7%.On Thursday, software maker Informatica issued a profit warning and said business conditions were worsening in Europe. The software company is considered a bellwether because its products are used alongside those made by larger software companies."Parts of Europe aren't just in recession, they're in depression," said Jeff Kleintop, chief market strategist at LPL Financial in Boston. "I think (analysts) underestimated the extent of the global slowdown, and maybe are still underestimating it."Tech feels chill from China While estimates have come down sharply in all 10 S&P 500 sectors since the start of the year, technology is one area where the lower expectations are most notable. Slower growth in China is a big factor in that trend.Earnings growth in the tech sector is expected to be just 2.3% for the quarter, compared with a July 1 forecast of 13.1%.Apple is a big driver of those gains.Technology's profit growth has been crucial for the S&P 500. Minus technology, S&P 500 earnings are expected to be down 3.4%.The tech sector is where the slowdown in China's economy is having the biggest impact, Kleintop said."They consume a lot of US technology products," he said.Recent data shows that the pace of growth in China, the world's second-largest economy, may slow for a seventh quarter, straining earnings in the tech and materials sectorsApplied Materials lowered its third-quarter estimates in August, citing China and Europe. On Wednesday, the chip gear maker said it planned to cut its global work force by 6% to 9%.FedEx, the world's second-largest package delivery company, cut its fiscal 2013 forecast on September 18, saying a weakening global economy gives its customers a reason to switch to less expensive and slower shipping options. FedEx said its earnings could drop as much as 6% for its fiscal 2013 year, which will end in May.On Wednesday, shares of Hewlett-Packard fell a whopping 13% to a nine-year low after it forecast a far steeper-than-expected drop in 2013 profit.The slide in HP's stock price sharply cut the Dow industrials' gains for the day.The S&P 500 sectors showing the biggest projected earnings decline are materials, forecast down 24%, and energy, expected down 18.8%, data show, with those declines tied largely to the global slowdown.In contrast, consumer discretionary stocks are expected to have the strongest profit growth for the quarter data showing a gain of 7.7%.

NEWS, 29.05.2012.

Greek Socialist leader slams IMF chief’s tax comments

 Greece's socialist leader Evangelos Venizelos accused the IMF chief Christine Lagarde on Sunday of trying to humiliate the country. His comments come after Lagarde had urged Greece to "help themselves" by "paying their taxes". 

Greece's Socialist party leader accused IMF chief Christine Lagarde of trying to "humiliate" the crisis-hit country by saying Greeks dodge taxes as he campaigned Sunday for crucial June elections."Nobody can humiliate the Greek people during the crisis, and I say this today addressing specifically Ms. Lagarde... who with her stance insulted the Greek people," Evangelos Venizelos told an election rally.Lagarde told Britain's Guardian newspaper in an interview published Friday that Greeks must "help themselves collectively" by all paying their taxes, saying she was more concerned about sub-Saharan Africans in poverty than Greeks hit by the economic crisis.Her comments came as Venizelos's Pasok and other Greek parties squared off for a June 17 election that could determine whether it continues to receive IMF funds and stays in the eurozone.Lagarde's remarks drew thousands of comments on her Facebook page, many from annoyed Greeks.On Saturday the IMF chief responded: "I am very sympathetic to the Greek people and the challenges they are facing. That's why the IMF is supporting Greece in its endeavour to overcome the current crisis.""An important part of this effort is that everyone should carry their fair share of the burden, especially the most privileged and especially in terms of paying their taxes."Venizelos told a news conference on Sunday, the morning after his campaign rally: "Ms. Lagarde had to revise her comments. I am glad she did it because that means she takes into account a proud nation."Greece made a deal in 2010 to receive hundreds of billions of euros (dollars) from the IMF and the EFSF, a European Union bailout fund, to rescue it from financial collapse.The country will head to the polls for a second time in six weeks on June 17 since political parties failed to form a coalition after an inconclusive election on May 6.In that election, voters fed up with salary and pension cuts demanded by the bailout terms handed second place to radical left-wing party Syriza, which has threatened to renege on the bailout accords.Former prime minister Lucas Papademos warned on May 11 that Greece may run out of money by the end of June if international bailout funds are cut off following the election, To Vima newspaper reported Sunday.That could lead Greece to default on its debt and leave the eurozone."From late June onwards, the ability of the government to fund its obligations fully depends on the approval of the subsequent instalments of loans from the EFSF and the IMF," To Vima quoted Papademos as saying in a leaked memo."The available funds in the Greek government will be reduced gradually from about 3.8 billion euros on May 11 to about 700 million euros on June 18 and from June 20 will enter negative territory at the level of around one billion euros."Ahead of the June 17 election, Syriza has led at times in the opinion polls, but a series of polls published Sunday indicated conservative party New Democracy had taken the lead.Campaigning on Saturday, New Democracy leader Antonis Samaras said a victory for Syriza would cause "catastrophe" and drag Greece out of the euro.The new surveys by five separate polling groups forecast a New Democracy victory ranging between 23.3 percent and 25.8 percent, a result that would still require the party to join up with allies to form a viable government.Syriza polled in second place ahead of Pasok, which like New Democracy defends the bailout agreement while proposing to amend it.Venizelos said he wants to extend the loan repayments."The country needs a government that will unite the people and revise the loan agreement, but assure we stay in the euro," he said Sunday.One survey by pollster Marc, carried out on 1,075 households on May 22-24, showed that 82.4 percent of Greeks wished to stay in the eurozone.

IMF chief tells Greeks to ‘pay their taxes’

 IMF chief Christine Lagarde told Greeks on Friday to pay their dues and help drag their country out the crippling economic crisis. Lagarde said Greeks could "help themselves" by "all paying their taxes". 

The head of the International Monetary Fund on Friday urged Greeks to pay their taxes, saying she is more concerned about sub-Saharan Africans in poverty than Greeks hit by the economic crisis.Christine Lagarde told the Guardian newspaper in an interview published online Friday, "As far as Athens is concerned, I also think about all those people who are trying to escape tax all the time. All these people in Greece who are trying to escape tax."The IMF managing director said Greeks should "help themselves collectively" by "all paying their tax", adding that she thought "equally" about those deprived of public services by the crisis and those involved in tax avoidance.Caught in a fifth straight year of recession, Greece is struggling to apply a tough austerity overhaul in return for EU-IMF loans, but has already made drastic cuts to public services.On children affected by the cuts, Lagarde said their parents needed to take responsibility."Parents have to pay their tax," she was quoted as saying."I think more of the little kids from a school in a little village in Niger who get teaching two hours a day, sharing one chair for three of them, and who are very keen to get an education," she added."I have them in my mind all the time. Because I think they need even more help than the people in Athens."Asked whether it was "payback time" for Greece and other debt-ridden eurozone economies, she responded, "That's right", the newspaper said.Greece in 2010 committed itself to a reform programme in return for hundreds of billions of euros (dollars) in bailout funds from the EU and the International Monetary Fund to prevent a default.Many of the reforms are currently in limbo, however, as Greece awaits a new general election on June 17 after an inconclusive vote on May 6.The IMF, along with European leaders, has said it will not bend on tough conditions attached to its loans to Greece, with fears rising that the debt crisis could culminate in a Greek exit from the eurozone.

NEWS, 12.05.2012.

Greek president to urge unity government

Greece's president was set on Saturday to call last-ditch talks in a bid to forge an emergency unity government and avoid fresh elections, after the main parties failed to form a working coalition.Highly-indebted Greece is deeply torn over the tough austerity measures imposed as conditions for its IMF-EU bailouts, and the crisis has raised the threat it could default and leave the 17-member eurozone.Legislative elections last Sunday saw voters punish the mainstream parties and left a fractured political landscape that has raised the spectre of new elections within weeks, amid intense EU pressure over Greek finances.Socialist Pasok leader Evangelos Venizelos said Friday he had failed in the latest bid to form a government, after radical leftist party Syriza refused to join a pro-austerity coalition with the socialists and conservatives.The latest twist in the tortuous political drama came as EU paymaster Germany threatened to cut off the country's loan lifeline and hinted that the crisis-ridden eurozone could get along without Greece.Venizelos was the third party leader who tried and failed to cobble together a government after the inconclusive elections."I am going to inform the president of the republic (Saturday) and I hope that during the meeting with Carolos Papoulias, each party will assume its responsibilities," Venizelos told reporters in Athens.The head of state is then expected to urge party leaders to form a government of national salvation. If the parties cannot agree a compromise by next Thursday, new elections will have to be called.Venizelos had been hoping to win the support of Syriza, a party deeply opposed to the terms of the $311bn EU-IMF bailout and which surged to second place in Sunday's vote.Earlier, another possible ally, the small Democratic Left party, said it would not join a government made up of only Pasok and the conservative New Democracy party that did not include Syriza.Earlier this week both Syriza and the New Democracy party failed in their own attempts to assemble a coalition government.German leaders warned Friday that Athens could expect no more money without reforms and also suggested that the eurozone would cope if the cash-strapped country left the 17-member currency union.

Syria refuses to submit torture report

Syria's authorities have refused to submit a report on torture in the country to a United Nations committee scheduled to discuss the situation there next week, its secretary said on Friday.The Committee Against Torture monitors the implementation of the UN's anti-torture convention by state parties and is currently meeting in Geneva."There is no assurance that a delegation [from Syria] will come but we have been informed that no report would be submitted," committee secretary Joao Nataf told AFP in an email.He added that the meeting would take place on Wednesday as scheduled.The Committee Against Torture is holding its 48th session from 7 May to 1 June when it will focus on a number of countries including Canada, Cuba and Syria.All states party to the convention are required to submit regular reports to the panel of 10 independent experts which then makes recommendations.In November last year chairperson Claudio Grossman wrote to the Syrian authorities highlighting the committee's concern over reports of the spread of torture in the country where a bloody crackdown on protesters was unleashed in March 2011.Grossman asked Damascus to provide a special report stating the measures being taken to ensure its obligations under the Convention Against Torture were being fulfilled.Since the crackdown observers estimate more than 12 000 people have died, including more than 900 since an 12 April truce went into effect.On Tuesday UN-Arab League envoy and broker of the peace plan Kofi Annan told the UN Security Council of his fears that torture, mass arrests and other human rights violations were intensifying in Syria.

NEWS,07.05.2012.

Putin sworn in as Russia's president

 

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

Socialist Hollande ousts Sarkozy in French vote

 

 

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

NEWS,06.05.2012.

France holds breath ahead of tight vote

 

France held its breath on Saturday on the eve of a presidential election that Socialist Francois Hollande was predicted to win despite incumbent Nicolas Sarkozy closing the gap after wooing the far-right.Political speeches and new opinion polls have been banned since a particularly ferocious campaign ended on Friday night, but the last poll published ahead of the deadline forecast a 52-48 per cent win for Hollande.The Ifop-Fiducial poll said Sarkozy has clawed back six percentage points of voter intentions since the end of last week as he went all-out to enchant those who voted for far-right candidate Marine Le Pen in the first round.With the Socialist’s lead the narrowest since campaigning began, Sarkozy has vowed a surprise, while Hollande has stressed that nothing can be assumed about a first Socialist presidential victory in over a quarter century.“Everything is possible on Sunday,” admitted the left-leaning Liberation’s headline, while the pro-Sarkozy Le Figaro’s front page stressed that French citizens had a “historic choice”.“Electing a president is not a beauty contest,” warned a Le Figaro editorial, apparently targeting Hollande’s image as a soft and convivial consensus builder without ministerial experience.Liberation skewered Sarkozy for dragging his UMP party ever further to the right as he courted National Front voters, vowing to defend French values, limit immigration and strengthen France’s borders. “Whatever the outcome, the political landscape will remain profoundly, durably and dangerously transformed,” it said. French overseas territories were voting on Saturday, before the mass of some 46 million voters goes to the polls on Sunday.Hollande was spending Saturday with his partner Valerie Trierwiler in his political heartland Tulle in central France, while Sarkozy was with his wife, former supermodel Carla Bruni, and their baby daughter Giulia.Hollande won the April 22 first round with 28.63 per cent of the votes to Sarkozy’s 27.18 percent, and both candidates have been fighting for the votes of those whose candidates failed to make the run-off.Le Pen, who won almost 18 percent in the first round, has said she will cast a blank ballot, and observers expect many of her supporters to do the same.Ifop has forecast however that 55 per cent of her voters would back Sarkozy and 19 per cent Hollande.

 

Cameron hails London mayor win

British Prime Minister David Cameron on Saturday hailed fellow Conservative Boris Johnson's re-election as London mayor but it was the sole bright spot for his party as it took a mid-term beating.In local elections on Friday the opposition Labour party took control of 32 councils and won more than 800 seats at the expense of the Conservatives and their coalition partners the Liberal Democrats."I think it was a very strong campaign by Boris. It was based on his record, on the excellent things he has done out there and I am delighted to congratulate him," said Cameron, standing alongside Johnson at City Hall."It was a campaign the whole Conservative party got behind. I enjoyed campaigning for Boris but now what matters is working together for the good of London, as PM, as mayor, and that is exactly what we are going to do."Eccentric Johnson, famed for his dishevelled blond locks and gift for buffoonery, won 51.5 percent of the vote in a closer-than-expected run-off with rival and predecessor, Labour's Ken Livingstone."It was a very hard-fought long campaign," said Johnson, who will now lead London into the Olympic Games in July."I am grateful to the Conservative Party. They did turn out in large numbers to help me but I think we were able to reach people across the city with a message that resonated with them in tough times."British newspapers said Cameron now faces pressure from the right wing of the Conservative party to ditch policies including support for gay marriage, and bring in more radical tax and spending ideas."Now stand up for Tory values," said the right-leaning Daily Mail newspaper, while the left-leaning Guardian said the "drubbing" also boosted Johnson's own credentials for a possible Conservative leadership challenge.The Conservatives lost 12 councils and more than 400 seats in the local elections while the centrist Lib Dems, led by Deputy Prime Minister Nick Clegg, lost one council and lost more than 300 seats.Capping a bad month for the government after Britain slid back into recession, Cameron's push to create the posts of elected mayors in England's biggest cities was widely rejected in referendums.

NEWS,23.04.2012.

French vote - kingmaker Le Pen?

Paris - Socialist challenger Francois Hollande beat Nicolas Sarkozy in the first round of France's presidential election on Sunday, with a resurgent far-right emerging as possible kingmakers in the run off.As expected, Hollande and the wounded right-wing incumbent will now face off in the May 6 second-round, but the big surprise of the night was the record score for anti-immigrant, anti-EU flag-bearer Marine Le Pen.Hollande won between 28 and 29% of the vote in the first round, to Sarkozy's 25.5 to 27%, and Le Pen won a best-ever 18 to 20%, according to estimates compiled from ballot samples by several polling agencies."Firstly, I am tonight (Sunday) in the lead among the candidates," Hollande declared before supporters in his rural political stronghold of Tulle. "I am today (Sunday) the best placed candidate to become the next French president."The second major lesson to draw from this election - and this is undeniable - is that the first round was a punishment and a rejection of the incumbent," he said to cheers.Sarkozy sought to put positive spin on the result and brandished his right-wing credentials in a clear nod to Le Pen supporters, despite being the first incumbent to lose a first round-vote in modern French history."We can enter the second round with confidence and I now call on all French people who put patriotism above partisanship or any special interests to unite and join me," Sarkozy told supporters at a rally in Paris.Explaining his poor showing as the result of a first round "vote of crisis" amid global economic chaos, he insisted: "These anxieties, this suffering, I know them, I understand them."They are about respecting our borders, the determined fight against job relocation, controlling immigration, putting value on work, on security," he said, hitting on a number of key right-wing themes.Sarkozy also called for three televised debates before the second round, but Hollande refused, saying the single planned encounter would be enough.A jubilant Le Pen addressed her supporters after her National Front party's best ever showing, saying: "The battle of France has just begun... we have exploded the monopoly of the two parties" - the Socialists and Sarkozy's UMP."I will give my opinion on May 1," Le Pen said when asked how her supporters should vote in the second round.The first opinion poll after the first round said that Hollande would beat Sarkozy by 54% to 46% the second round and that the attitude of Le Pen's supporters could be decisive.Polling institute Ifop said that 48% of her backers would switch to Sarkozy and 31% to Hollande, while an OpinionWay poll said 18% of her supporters would back the Socialist and 39% Sarkozy.The head of Sarkozy's UMP party, Jean-Francois Cope, said he looked forward to the second round."From tomorrow (Monday) morning, we will no longer be in a case of nine candidates against Nicolas Sarkozy, but we will be one-on-one, Nicolas Sarkozy against Francois Hollande ... then I think the match will be different."

Turnout was high at at least 80%, down on the 84% turnout of 2007 but up significantly on the 72% of 2002 and belying fears that a low-key campaign would be capped by mass abstention.Hollande says Sarkozy has trapped France in a downward spiral of austerity and job losses, while Sarkozy says his rival is inexperienced and weak-willed and would spark financial panic through reckless spending pledges.The eurozone debt crisis and France's sluggish growth and high unemployment have hung over the campaign, with Sarkozy struggling to defend his record and Hollande unable to credibly promise spending increases.Opinion polls and campaigning were banned from midnight on Friday, and will now resume on Monday in the build-up to the May 6 run-off.