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Pedro Gonçalves

U.S. Officials to Continue to Engage Iran - NYTimes.com - 0 views

  • The Obama administration is determined to press on with efforts to engage the Iranian government, senior officials said Saturday, despite misgivings about irregularities in the re-election of President Mahmoud Ahmadinejad.
  • Trying to put a positive face on the outcome, one senior administration official held out the hope that the intensity of the political debate during the campaign, and the huge turnout, might make Mr. Ahmadinejad more receptive to the United States, if only to defuse a potential backlash from the disputed election.“Ahmadinejad could feel that because of public pressure, he wants to reduce Iran’s isolation,” said the official, who spoke on condition of anonymity because the delicacy of the matter. “That might also cause engagement to proceed more swiftly.”
  • Mr. Pickering, who has had informal contacts with Iranians, said the White House would have little choice but to accept the results. But he said the outcome would hinder efforts to court Tehran and would embolden those who argue that such efforts are futile.
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  • But outside analysts said the suspicions surrounding Mr. Ahmadinejad’s re-election would create new problems. “This is the worst result,” said Thomas R. Pickering, a former under secretary of state. “The U.S. will have to worry about being perceived as pandering to a president whose legitimacy is in question. It clearly makes the notion of providing incentives quite unappetizing.”
  • In Israel, which has hinted that it might launch a military strike on Iran to disable its nuclear capability, officials said Mr. Ahmadinejad’s victory underscored the threat from Tehran and the need for a tough response rather than patient diplomacy.Vice Prime Minister Silvan Shalom said in Tel Aviv that the victory “sends a clear message to the world” that Iran’s policies have broad internal support and will be continued. The results, he added, also “blow up in the faces of those” who thought Iran was ready for “a genuine dialogue with the free world on stopping its nuclear program.”
  • Many analysts and Middle East officials asserted that the outcome reinforced the reality that ultimate power resides not in the democratically elected president, but rather in Iran’s supreme religious leader, Ayatollah Ali Khamenei.“We should be clear about what we’re dealing with,” said Karim Sadjadpour, an Iran expert at the Carnegie Endowment for International Peace. “Just as we deal with Assad’s Syria and Mubarak’s Egypt, we now have to deal with Khamenei’s Iran,”
  • “It is easy to insult and confront and have Iran as a foe when Ahmadinejad is president,” said an Egyptian diplomat, speaking on condition of anonymity in keeping with diplomatic protocol. “A lot of people would have been inconvenienced if someone else had become president.”
  • Mr. Obama, officials said, has long said he was willing to negotiate with whoever would respond, including Ayatollah Khamenei. “The administration will deal with the situation we have, not what we wish it to be,” another senior official said.
  • For the United States, the larger problem is that while the election has frozen the dialogue, Iran’s nuclear program has speeded ahead. This month, the International Atomic Energy Agency reported that by May’s end, Iran had built and installed 7,200 centrifuges to enrich uranium and was quickly adding to its stock of nuclear fuel.
  • Now, the administration faces a vexing choice. It can continue to demand that Iran give up all of its enrichment capability — still the official position of the United States, but considered an all but impossible goal. Or it can tacitly accept that Iran is not going to stop enriching.
Argos Media

Iranian: Israel Is a Racist State - washingtonpost.com - 0 views

  • Iranian President Mahmoud Ahmadinejad argued before a U.N. anti-racism conference Monday that Israel is a "paragon of racism" founded on "the pretext of Jewish sufferings" during World War II.
  • The comments, a hard-edged version of Ahmadinejad's often-repeated anti-Zionist views, prompted several dozen European diplomats to walk out of the opening session of the week-long Geneva meeting, which the Obama administration and eight other Western nations already were boycotting. In addition, a handful of pro-Israel demonstrators shouting "shame, shame" and "racist, racist" threw red clown noses at the podium and prevented Ahmadinejad from entering a room where he was to hold a news conference.
  • The uproar seemed to douse any hopes that the gathering would prove more successful than the first U.N. anti-racism conference, in Durban, South Africa, in 2001. That meeting also became a forum for vitriolic condemnation of Israel.
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  • Ahmadinejad, who just a week ago had suggested that Iran was ready for a new relationship with the United States, blamed America and its allies for a long list of ills, including the world economic crisis. He suggested that the Western model of economic liberalism was exhausted and that Western leaders, in their efforts to contain the crisis, "are simply thinking about maintaining power and wealth."
  • Turning to Israel, he started by asking why the five permanent members of the U.N. Security Council have so much power over other nations. Although such powerful countries condemn racism in words, he said, by their deeds they "ridicule and violate all laws and humanitarian values."
  • "Following World War II," he continued, according to an official English-language text of his remarks, "they resorted to military aggression to make an entire nation homeless, on the pretext of Jewish sufferings and the ambiguous and dubious question" of the Holocaust. "They sent migrants from Europe, the United States and other parts of the world, in order to establish a totally racist government in occupied Palestine," he said, "and in fact, in compensation for the dire consequences of racism in Europe, they helped bring to power the most cruel and repressive racists, in Palestine."
  • Ahmadinejad said Zionist supporters enjoy undue influence over Western governments, imposing "their domination to the extent that nothing can be done against their will," and he suggested that the only solution is to defeat them. "So long as Zionist domination continues, many countries, governments and nations will never be able to enjoy freedom, independence and security," he said. "As long as they are at the helm of power, justice will never prevail in the world and human dignity will continue to be offended and trampled upon. It is time the ideal of Zionism, which is the paragon of racism, be broken."
  • British and French diplomats, whose governments had threatened a walkout if they heard anti-Semitic or anti-Israel remarks, left the room. Peter Gooderham, the British ambassador to the United Nations in Geneva, called Ahmadinejad's remarks "outrageous" and "anti-Semitic," according to news reports.
  • Israel, preparing to mark Holocaust Remembrance Day starting at sundown Monday, derided the U.N. gathering for giving Ahmadinejad a forum. Prime Minister Binyamin Netanyahu called him "a racist and a Holocaust denier who doesn't conceal his intention to wipe Israel off the face of the Earth."
Argos Media

Torture tape delays U.S.-UAE nuclear deal, say U.S. officials - CNN.com - 0 views

  • A videotape of a heinous torture session is delaying the ratification of a civil nuclear deal between the United Arab Emirates and the United States, senior U.S. officials familiar with the case said.
  • In the tape, an Afghan grain dealer is seen being tortured by a member of the royal family of Abu Dhabi, one of the UAE's seven emirates.
  • The senior U.S. officials said the administration has held off on the ratification process because it believes sensitivities over the story can hurt its passage. The tape emerged in a federal civil lawsuit filed in Houston, Texas, by Bassam Nabulsi, a U.S. citizen, against Sheikh Issa bin Zayed al Nahyan. Former business partners, the men had a falling out, in part over the tape. In a statement to CNN, the sheikh's U.S. attorney said Nabulsi is using the videotape to influence the court over a business dispute.
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  • Under the "1-2-3 deal," similar to one the United States signed last year with India, Washington would share nuclear technology, expertise and fuel. In exchange, the UAE commits to abide by the Nuclear Non-proliferation Treaty and the International Atomic Energy Agency safeguards. The small oil-rich Gulf nation promises not to enrich uranium or to reprocess spent nuclear fuel to extract plutonium, which can be used to make nuclear bombs.
  • "It's being temporarily held up because of that tape," one senior official said.
  • The State Department had little to say publicly on the torture tape incident, but its 2008 human rights report about the United Arab Emirates refers to "reports that a royal family member tortured a foreign national who had allegedly overcharged him in a grain deal."
  • U.S. Rep. James McGovern -- the Massachusetts Democrat who co-chairs the congressional Human Rights Commission
  • McGovern asked Clinton to "place a temporary hold on further U.S. expenditures of funds, training, sales or transfers of equipment or technology, including nuclear until a full review of this matter and its policy implications can be completed." He also asked that the United States deny any visa for travel to the United States by Sheikh Issa or his immediate family, including his 18 brothers, several of whom are ruling members of the UAE government.
  • UAE Crown Prince Mohammed bin Zayed Al Nahyan, a half-brother of Sheikh Issa, is expected to visit Washington sometime next month.
  • The civil nuclear agreement was signed in January between the United Arab Emirates and the Bush administration, but after the new administration took office, the deal had to be recertified
  • The deal is part of a major UAE investment in nuclear, and it has already signed deals to build several nuclear power plants. The United States already has similar nuclear cooperation agreements with Egypt and Morocco, and U.S. officials said Washington is working on similar pacts with Saudi Arabia, Bahrain and Jordan.
  • When the Bush administration signed the deal in January, it stressed the UAE's role in global nonproliferation initiatives, including a donation of $10 million to establish an International Atomic Energy Agency international fuel bank.
  • Congressional critics fear the deal could spark an arms race and proliferation in the region, and the UAE's ties to Iran also have caused concern.
  • Iran is among the UAE's largest trading partners. In the past, the port city of Dubai, one of the UAE's seven emirates, has been used as a transit point for sensitive technology bound for Iran.
  • Dubai was also one of the major hubs for the nuclear trafficking network run by Pakistani nuclear scientist Abdul Qadeer Khan, who admitted to spreading nuclear technology to Iran, North Korea and Libya up until the year 2000.
  • Such ties contributed to stiff opposition in Congress to the failed deal for Dubai Ports World to manage U.S. ports.
  • Officials said they expect the deal to be sent up to the Hill for ratification within the next few weeks, given that there has been little blowback from the publication of the tape, except for McGovern's letter to Clinton. "It will be sent very soon," one official said.
  • UAE Ambassador to the U.S. Yousef Al Otaiba told CNN his government always expected the deal to be sent to the Senate in early May, regardless of the controversy surrounding the tape. "As far as we are concerned, the deal is on track and this has not affected the timing," he said.
Argos Media

Obama Administration Has First Face-to-Face Contact With Iran - NYTimes.com - 0 views

  • It was brief, it was unscheduled and it was not substantive, but a meeting Tuesday between Richard C. Holbrooke, a presidential envoy, and an Iranian diplomat marked the first face-to-face encounter between the Obama administration and the government of Iran.
  • Secretary of State Hillary Rodham Clinton confirmed that Mr. Holbrooke, the administration’s special representative for Afghanistan and Pakistan, greeted Iran’s deputy foreign minister, Mohammad Mehdi Akhondzadeh, on the sidelines of a major conference here devoted to Afghanistan.
  • “It was cordial, unplanned and they agreed to stay in touch,” Mrs. Clinton said to reporters at the end of the conference. “I myself did not have any direct contact with the Iranian delegation.”
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  • Mrs. Clinton also said the United States handed the Iranian delegation a letter requesting its intercession in the cases of two American citizens who are being held in Iran and another who is missing.
  • Some officials, including Mrs. Clinton, are skeptical that Iran’s leaders will ever embrace the American overtures. But reaching out, analysts say, keeps Iran on the defensive by demonstrating to the Europeans, the Russians and others that the United States is sincerely trying. And talking about Afghanistan is easier than confronting more divisive issues, especially Iran’s nuclear ambitions.
  • Mrs. Clinton also reacted warmly to remarks delivered by Mr. Akhondzadeh about what Iran would do to aid reconstruction in Afghanistan and to cooperate in regional efforts to crack down on the booming Afghan drug trade, which is spilling across the Iranian border.
  • “The fact that they came today, that they intervened today, is a promising sign that there will be future cooperation,” she said. “The Iranian representative set forth some very clear ideas that we will all be pursuing together.”
  • Iran cooperated with the United States on Afghanistan in the days after the 2001 terrorist attacks, and administration officials still view it as one of the most promising avenues for a reconciliation. Mrs. Clinton had pushed for Iran to be included on the invitation list for the United Nations-sponsored conference.
  • Iran, which was a no-show at the last Afghanistan conference, in Paris, did not send an official of Mrs. Clinton’s level, unlike most participants. But by sending Mr. Akhondzadeh, a former ambassador to the International Atomic Energy Agency, it was clearly not trying to avoid contact.
  • At the conference, Iran offered support and criticism of the Obama administration’s new policy on Afghanistan. It praised the focus on regional cooperation, but it argued that sending more foreign troops to Afghanistan would be ineffective.
Pedro Gonçalves

Israel threatens to overthrow Abbas over Palestinian statehood bid | World news | guard... - 0 views

  • Israel should topple the Palestinian president, Mahmoud Abbas, if he presses ahead with a request for recognition of the state of Palestine by the United Nations general assembly in two weeks' time, the hardline foreign minister, Avigdor Lieberman, has urged.In a draft paper distributed to the media, Lieberman argued that overthrowing the Palestinian leadership was Israel's only viable option, faced with the certainty of an overwhelming vote in support of the Palestinian bid."A reality in which the United Nations recognises a Palestinian state according to a unilateral process will destroy all Israeli deterrence and completely harm its credibility," the paper said.
  • Lieberman's extreme stance comes as the Israeli cabinet is considering a range of punitive measures it could take in response to the vote, expected on 29 November. These include the full or partial annulment of the 1993 Oslo Accords, financial penalties and an acceleration of settlement expansion.The minister of strategic affairs, Moshe Yaalon, warned the Palestinians would pay a "heavy price" if they submitted a resolution seeking "non-member state" status at the UN general assembly. It would be a "flagrant breach" of the Oslo Accords, which provided for a limited measure of self rule for the Palestinians, he told army radio.Another government minister, Gilad Erdan, called for the immediate annexation of all Jewish settlements in the West Bank.
  • The Israeli foreign ministry sent a diplomatic cable on Sunday to all Israeli representatives across the globe warning that the Palestinian resolution was a "clear violation of the fundamental principle of negotiations".It continued: "The adoption of the resolution will give Israel the right to re-evaluate previous agreements with the [Palestine Liberation Organisation] and consider cancelling them partially or completely, and would make progress in the peace process more difficult in the future."
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  • According to a government source, the Israeli cabinet has discussed a number of possible measures, but has taken no concrete decisions. Among a "toolbox" of actions under consideration are:• full or partial annulment of the Oslo Accords, under which the Palestinian Authority (PA) was established• withholding tax revenues Israel collects on behalf of the PA• cancellation of permits for thousands of Palestinian labourers to work in Israel• withdrawal of travel privileges for senior PA officials• acceleration of building programmes in West Bank settlements• unilateral annexation of the main Jewish settlement blocks.
  • Lieberman's draft paper proposed Israeli recognition of a Palestinian state on provisional borders encompassing around 40% of the West Bank in exchange for the Palestinian leadership dropping its approach to the United Nations.
  • The UnS is also expected to impose punitive measures in response to a vote in favour of Palestinian statehood at the general assembly. The US Congress froze $200m (£126m) of aid to the Palestinians in response to their bid for full membership of the UN last September. Despite the decision later being overturned, the money has still not been released.
Pedro Gonçalves

David Cameron offers olive branch on EU referendum as Ukip soars | Politics | The Guardian - 0 views

  • The poll findings, showing Ukip on a record high in an ICM poll of 18%
  • The poll shows that support for the three main parties has drained away to Ukip, with each of them down four points on last month – Labour dropping to 34%, the Tories 28%, and the Liberal Democrats 11% – as Nigel Farage's party gained nine points.
  • For all three established parties to be falling back in the polls at the same time is unprecedented in the 29-year history of the Guardian/ICM series. The Tories are plumbing depths they have not experienced in over a decade.
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  • The president first described Britain's EU membership as an "expression of its influence" around the world, but then offered measured praise for the prime minister's plan to renegotiate Britain's EU membership terms after the next election. He said: "You probably want to see if you can fix what is broken in a very important relationship before you break it off – that makes some sense to me."
  • Earlier Cameron – in danger of looking as weak as John Major at the height of the Maastricht crisis – took comfort from the broad endorsement of his European strategy by Barack Obama at a joint White House Press conference.
  • But Obama said he would wait to see if the negotiations succeeded before making a final judgment, and repeatedly stressed the need for the UK to be engaged.
  • The Guardian/ICM poll is remarkable because barring a single month in 2002, the Conservatives have not dropped below 28% since Tony Blair's long honeymoon in 1997-98. The Lib Dems have not fallen below today's 11% in the series since September of 1997, the immediate aftermath of Blair's first victory. Labour's 34% score is its lowest since the immediate aftermath of Gordon Brown's ejection from power, in July 2010.
  • The poll also shows that there is a clear "Farage factor" in the personal leadership ratings. Last month voters were split down the middle on his performance with 28% saying Nigel Farage, the Ukip leader, was doing a good job, and 29% a bad job, giving a net negative score of –1. Today, the balance of opinion is running 40%:23% in his favour, a net positive of +17.
Pedro Gonçalves

NSA collecting phone records of millions of Verizon customers daily | World news | The ... - 0 views

  • The National Security Agency is currently collecting the telephone records of millions of US customers of Verizon, one of America's largest telecoms providers, under a top secret court order issued in April.The order, a copy of which has been obtained by the Guardian, requires Verizon on an "ongoing, daily basis" to give the NSA information on all telephone calls in its systems, both within the US and between the US and other countries.The document shows for the first time that under the Obama administration the communication records of millions of US citizens are being collected indiscriminately and in bulk – regardless of whether they are suspected of any wrongdoing.The secret Foreign Intelligence Surveillance Court (Fisa) granted the order to the FBI on April 25, giving the government unlimited authority to obtain the data for a specified three-month period ending on July 19.Under the terms of the blanket order, the numbers of both parties on a call are handed over, as is location data, call duration, unique identifiers, and the time and duration of all calls. The contents of the conversation itself are not covered.
  • The unlimited nature of the records being handed over to the NSA is extremely unusual. Fisa court orders typically direct the production of records pertaining to a specific named target who is suspected of being an agent of a terrorist group or foreign state, or a finite set of individually named targets.
  • The order, signed by Judge Roger Vinson, compels Verizon to produce to the NSA electronic copies of "all call detail records or 'telephony metadata' created by Verizon for communications between the United States and abroad" or "wholly within the United States, including local telephone calls".
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  • The court order expressly bars Verizon from disclosing to the public either the existence of the FBI's request for its customers' records, or the court order itself.
  • The information is classed as "metadata", or transactional information, rather than communications, and so does not require individual warrants to access. The document also specifies that such "metadata" is not limited to the aforementioned items. A 2005 court ruling judged that cell site location data – the nearest cell tower a phone was connected to – was also transactional data, and so could potentially fall under the scope of the order.
  • The court order appears to explain the numerous cryptic public warnings by two US senators, Ron Wyden and Mark Udall, about the scope of the Obama administration's surveillance activities.For roughly two years, the two Democrats have been stridently advising the public that the US government is relying on "secret legal interpretations" to claim surveillance powers so broad that the American public would be "stunned" to learn of the kind of domestic spying being conducted.
  • In a letter to attorney general Eric Holder last year, they argued that "there is now a significant gap between what most Americans think the law allows and what the government secretly claims the law allows.""We believe," they wrote, "that most Americans would be stunned to learn the details of how these secret court opinions have interpreted" the "business records" provision of the Patriot Act.
  • The NSA, as part of a program secretly authorized by President Bush on 4 October 2001, implemented a bulk collection program of domestic telephone, internet and email records. A furore erupted in 2006 when USA Today reported that the NSA had "been secretly collecting the phone call records of tens of millions of Americans, using data provided by AT&T, Verizon and BellSouth" and was "using the data to analyze calling patterns in an effort to detect terrorist activity." Until now, there has been no indication that the Obama administration implemented a similar program.These recent events reflect how profoundly the NSA's mission has transformed from an agency exclusively devoted to foreign intelligence gathering, into one that focuses increasingly on domestic communications.
Pedro Gonçalves

Analysis: Israel's Iran strategy: Bombs? Bluff? Both? | Reuters - 0 views

  • Ever a big-picture thinker, the U.S.-educated premier gave a speech this week commending Israel's founding premier David Ben-Gurion for making fateful decisions at a "heavy price," despite protests heard at home and abroad.Commentators, on the alert these days for any clue about a possible strike on Iran, spotted a subtext - that Netanyahu, too, was ready to take lonely action in Israel's interest.He could hope for a repeat of the 1981 attack on Iraq's atomic reactor and a similar sortie against Syria in 2007, when the anger of Washington's initial reactions quickly faded.
  • "So there's a huge public relations issue here: Can you make a credible case over the head of the administration, and get the American public to buy into the pain that is going to follow -- Americans being killed in terrorism, oil shock, whatever it is."For now, Kurtzer estimated, Obama administration warnings against unilateral Israeli strikes on Iran would account for "5 percent" of Israeli deliberations, with the Netanyahu government's military calculations taking the lion's share.
  • Its priorities include fending off Iran's promised missile reprisals and containing potential knock-on border wars with the Lebanese and Palestinian guerrillas who are allied to Tehran.
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  • Former Mossad spymaster Meir Dagan has predicted that Syria, Iran's key Arab ally and now beset by a bloody domestic uprising, might also choose to join in the foreign conflict.
  • Public reluctance has been galvanized by the unusually vocal questioning by Dagan and some other retired security chiefs of Netanyahu and Barak's secret strategizing.
  • These critics have urged U.S.-led sanctions on Tehran be given more time. Israel and its Western partners are also widely believed to have been sabotaging Iran's uranium enrichment and ballistic arms projects, though Barak said any such covert campaign cannot be relied upon to finish the job.
  • A December 1 poll by the Saban Center for Middle East Policy at the U.S. think-tank Brookings found that 43 percent of Israeli Jews backed attacking Iran, while 41 percent would be opposed.
    • Pedro Gonçalves
       
      Israeli public evenly divided on an attack on Iran
  • By a ratio of two to one, respondents said they would agree to stripping Israel of its own atomic arsenal as part of a regional disarmament deal. Ninety percent predicted Iran, which says its nuclear project is peaceful, would obtain in time become a nuclear military power.
    • Pedro Gonçalves
       
      The Israeli public shows a willingness to get rid of Israel's nuclear arsenal in "Middle East free of nuclear weapons" framework - a nukes for peace?
  • Slowing its progress toward that point, however, may be enough of an objective for Israel, which Barak assessed last month stood to lose "maybe not even 500 dead" to Iranian retaliation.
  • Should it end up worse, "there are international mechanisms that would curtail the war between Iran and Israel," former Israeli military intelligence chief Amos Yadlin said last month.But Yadlin, who was among the eight F-16 pilots who carried out the 1981 raid on Iraq's Osirak reactor, sounded circumspect about Israeli military capabilities against Iranian targets that are numerous, distant, fortified and on the alert for attacks - in contrast to Saddam Hussein's sole installation near Baghdad.
  • Israel, he said, should "open lines of dialogue with those who have superior operational abilities than we do" -- effectively, shelving unilateralism in favor of cooperation with the United States and its NATO allies
  • Dan Schueftan, head of the National Security Studies Centre at Haifa University, said Israel's recent hawkish talk could be meant for foreign ears: "Because they (Netanyahu and Barak) fear that if it is believed that there is no possibility of Israel attacking Iran, the United States won't consider taking action."Even Dagan publicly dangled the possibility that he has been playing into a propaganda ruse, telling Israeli television: "If Dagan is arguing against a conflict, then the Iranian conclusion is ... 'Listen, these Jews are crazy. They could attack Iran!'"
  • But posture can also be self-realizing. Before launching his surprise attack on Israel at Yom Kippur in 1973, Egypt's Anwar Sadat repeatedly issued mobilization orders to his forces while also saying he was willing to consider peace negotiations, lulling Israelis into believing Cairo was not a serious threat.
Pedro Gonçalves

Whatever euro's fate, Europe's reputation savaged | Reuters - 0 views

  • Whether the euro lives or dies, the chaotic way Europe has tackled the crisis could undermine the region's geopolitical clout for years to come and leave it at a distinct disadvantage in a rapidly changing world.
  • "The Europeans are completely consumed with a battle to save the euro zone," says Ian Bremmer, president of political risk consultancy Eurasia Group. "It's a deep and ongoing crisis bigger than any they've experienced in decades... it's an environment where European leaders could hardly be expected to prioritise anything else."That could leave the continent being increasingly sidelined as emerging powers - not just the BRIC powers of Brazil, Russia, India and China but other states such as Turkey, Indonesia and South Africa - grow in importance.At the very least, it could undermine the ability of the continent's leaders to persuade the rest of the world to take them seriously on a range of issues, from trade to the importance of democracy and human rights."Europe probably isn't going to stop preaching to the rest of the world," says Nikolas Gvosdev, professor of national security studies at the US Naval War College. "But it's much less likely that others are going to be inclined to listen."
  • At the Copenhagen climate summit in 2009, European states suffered the indignity of being outside the room when the final deal was struck between the United States and emerging powers. In the aftermath of the euro zone crisis, it's a position European leaders may simply have to get used to.
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  • for the rest of the world, it's not just the continent itself that is rapidly losing its shine. The whole European political model - generous welfare systems, democratic decision-making, closer regional integration and the idea of a currency union as a stabilising factor - no longer seems nearly as appealing to other, still growing regions.
  • "If the euro dies, it will mark the end of the European experiment in forging closer financial and political integration. But it will also have wider international implications."
  • Chellaney argues the demise of the euro might help secure the primacy of the dollar - and therefore perhaps of the United States itself - for years to come.But others believe a European collapse would be a sign of things to come for the US as well.
  • "The health of the euro or the EU, for that matter, will have a marginal impact on gold and power that is tending any way towards Asia, especially China,"
  • Washington takes the potential threat of Europe's unravelling very seriously. In the short-term, the Obama administration is clearly concerned over the electoral fallout should the crisis in Europe cross the Atlantic before November's presidential election.But in the longer term, whether the euro survives or not US planners are beginning to face up to the fact that the continent will likely be poorer and rather more self-centred than Washington had hoped.
  • While Britain and France took the political lead in Libya last year, US Defence Secretary Robert Gates complained European NATO forces were in fact almost entirely dependent on US munitions, logistics and other backup.
  • But the change in European thinking and the additional defence spending Washington called for now looks all but impossible in this time of austerity.
  • "It's doubtful any future US Defence Secretary is even going to bother to make that kind of pitch," says Gvosdev at the US Naval War College. "We'd hoped Europe could take the lead in some parts of North Africa as well as the Balkans and Eastern Europe. That now looks very unlikely."
  • Washington's military "pivot " towards Asia, he said, had been based in part on the assumption that Europe would remain stable and wealthy and the US now had little or nothing to worry about on its North Atlantic flank. A weakened Europe could make US planners much less confident of that, particularly if China extends its influence.
  • Beijing has upped its investments in Europe in recent years, including major port projects in Greece and Italy.
  • Some waning of Europe's international influence was always likely, experts say, with an ageing population chewing up ever more resources and emerging economies inevitably growing faster. But the current crisis could supercharge its decline. Whether the continent's leaders realise that, however, is another matter.
  • "Europe's main source of influence (should) be the success of its political and economic model in providing high living standards and democratic freedoms," says Jack Goldstone, professor of international affairs at George Mason University near Washington DC "If the current crisis undermines both of those as well, Europe will look like a rather weak, badly run system of ageing and economically stagnant states. Irrelevance awaits."
Argos Media

U.S., Russian Scientists Say Missile Shield Wouldn't Protect Europe From Iran - washing... - 0 views

  • A planned U.S. missile shield to protect Europe from a possible Iranian attack would be ineffective against the kinds of missiles Iran is likely to deploy, according to a joint analysis by top U.S. and Russian scientists.
  • The U.S.-Russian team also judged that it would be more than five years before Iran is capable of building both a nuclear warhead and a missile capable of carrying it over long distances. And if Iran attempted such an attack, the experts say, it would ensure its own destruction.
  • "The missile threat from Iran to Europe is thus not imminent," the 12-member technical panel concludes in a report produced by the EastWest Institute, an independent think tank based in Moscow, New York and Belgium.
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  • The year-long study brought together six senior technical experts from both the United States and Russia to assess the military threat to Europe from Iran's nuclear and missile programs. The report's conclusions were reviewed by former defense secretary William J. Perry, among others, before being presented to national security adviser James L. Jones and Russian Foreign Minister Sergei Lavrov.
  • The report acknowledges dramatic technological gains by Iran, and it predicts that the country could probably build a simple nuclear device in one to three years, if it kicked out U.N. inspectors and retooled its uranium-processing plants to make weapons-grade enriched uranium. Another five years would be needed to build a warhead that would fit on one of Iran's missiles, the panel says. U.S. intelligence agencies have made similar predictions; Israel maintains that Iran could build a bomb in as little as eight months.
  • The U.S.-Russian experts say Iran faces limits in developing ballistic missiles that could someday carry nuclear warheads. Its current arsenal is derived from relatively unsophisticated North Korean missiles, which in turn are modified versions of a Russian submarine-launched missile that dates from the 1950s. "We believe that these components were likely transferred to North Korea illegally in the late 1980s and early 1990s, when Russia was experiencing major political and economic chaos," one of the U.S. team members said in a separate commentary.
  • the country lacks "the infrastructure of research institutions, industrial plants, or the scientists and engineers that are needed to make substantial improvements."
  • They conclude that it would take Iran at least another six to eight years to produce a missile with enough range to reach Southern Europe and that only illicit foreign assistance or a concerted and highly visible, decade-long effort might produce the breakthroughs needed for a nuclear-tipped missile to threaten the United States.
  • Moreover, if Iran were to build a nuclear-capable missile that could strike Europe, the defense shield proposed by the United States "could not engage that missile," the report says. The missile interceptors could also be easily fooled by decoys and other simple countermeasures, the report concludes.
Pedro Gonçalves

U.S. Reaches Out to Iran to Celebrate 4th of July - NYTimes.com - 0 views

  • Last Friday, the State Department sent a cable to its embassies and consulates around the world notifying them that “they may invite representatives from the government of Iran” to their Independence Day celebrations — annual receptions that typically feature hot dogs, red-white-and-blue bunting and some perfunctory remarks about the founding fathers.
  • Last Friday, the State Department sent a cable to its embassies and consulates around the world notifying them that “they may invite representatives from the government of Iran” to their Independence Day celebrations
  • Mrs. Clinton has said Iran’s rising influence in the region is “quite disturbing.” In May, she told State Department employees that the Bush administration’s policy toward Latin America had created an opening for Iran and China, which are using commercial and other assistance to bolster anti-American leaders like Hugo Chávez of Venezuela and Daniel Ortega of Nicaragua.“They are building strong economic and political connections with a lot of these leaders,” she said. “I don’t think that’s in our interest.”
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  • “The specter of Iran raises red flags in a way that China doesn’t, because China tends to respect the American sphere of influence,” said Julia E. Sweig, a Latin American expert at the Council on Foreign Relations.
  • Iran’s motives are murkier, according to administration officials. It has cultivated wide-ranging economic ties with Venezuela and, to a lesser extent, Nicaragua. But it has also been linked to the bombing of a Jewish community center in Buenos Aires in 1994, which killed 85 people.
  • Iran is not known to have a big presence in El Salvador, officials said, and it was not represented at Mr. Funes’s inauguration. But the change in power after 17 years of a pro-American right-wing government could offer an opening.
Pedro Gonçalves

Obama: U.S. did not give Israel green light to attack Iran - Haaretz - Israel News - 0 views

  • U.S. President Barack Obama earlier Tuesday rebuffed suggestions that Washington had given Israel a green light to attack Iran's nuclear facilities, in an interview with CNN. Asked by CNN whether Washington had given Israel approval to strike Iran's nuclear facilities, Obama answered: "Absolutely not."
  • "We have said directly to the Israelis that it is important to try and resolve this in an international setting in a way that does not create major conflict in the Middle East," Obama said in reference to Iran's contentious nuclear program. Advertisement In the interview broadcast from Russia where he is on an official visit, Obama added, however: "We can't dictate to other countries what their security interests are. "What is also true is, it is the policy of the United States to try to resolve the issue of Iran's nuclear capabilities," Obama said. This would be achieved "through diplomatic channels," he added.
  • Sources close to Prime Minister Benjamin Netanyahu told The Washington Times that the premier is hesitant to request formal U.S. approval to launch military operations against Iran for fear that Washington would turn him down, according to a report which appeared in Tuesday editions.
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  • The sources said the Israeli leader feels there is no point in seeking American acquiescence at this stage givenObama's stated intention to pursue a policy of diplomatic engagement with the Tehran regime, The Washington Times reported. "There was a decision not to press [for U.S. approval of a strike] because it was probably inadequate for the engagement policy and what we know about Obama's approach to Iran," a senior Israeli official told The Washington Times.
  • Discussion over authorization for such a strike arose after Vice President Joe Biden told ABC news earlier this week that the U.S. would not stand in the way of an Israeli attack on Iran. "Israel can determine for itself - it's a sovereign nation - what's in their interest and what they decide to do relative to Iran and anyone else," Biden said.
  • The chairman of the U.S. Joint Chiefs of Staff said on Tuesday that a preemptive military strike against Iran should be avoided "if possible," but emphasized that all options are still on the table. "I worry about a nuclear arms race in the Middle East region; I don't think any one of us can afford it," said Admiral Michael Mullen, during a conference at the Center for Strategic and International Studies. "I don't see a lot of space between where Iran is headed and the potential of where that development might lead. All options are certainly on a table, including certainly military options."
  • My concern is that the clock continues ticking," Mullen said. "I believe that Iran is very much focused on getting that capability. This a very narrow space we have towards that objective." Nevertheless, Mullen added, a preemptive strike is "really not a place we should go if possible."
  • "If the threat from Iran's nuclear and ballistic missile program is eliminated, the driving force for missile defense in Europe will be eliminated," Obama said in remarks prepared for delivery to graduates from Moscow's New Economic School.
  • "America wants a strong, peaceful and prosperous Russia," Obama said. "On the fundamental issues that will shape this century, Americans and Russians share common interests that form a basis for cooperation," the U.S. President went on to say.
Pedro Gonçalves

A Missile System Strains U.S.-Russia Relations | Newsweek International | Newsweek.com - 0 views

  • The deal to reduce nuclear warheads and work together to limit nuclear proliferation signed in Moscow this week by Presidents Barack Obama and Dmitry Medvedev carried all the pomp of a milestone. But the official communiqués ignored an elephant lingering at the summit: Russia has a deal, signed in 2007, with Tehran to supply a state-of-the-art S300 antimissile defense system that could make a possible strike (by the U.S. or Israel) on Iran's nuclear facilities much harder. Even more than a lucrative deal for Moscow, though, this is Russia's diplomatic ace in the hole: the $1 billion system is really a bargaining chip between the powers.
  • Though the Iranians insist that the deal is on track, Russia has held back on delivering key elements of the S300 system. One key reason for the delay is a full-court diplomatic press by Jerusalem and Washington. In the week before Obama's visit to Moscow, Israeli Prime Minister Benjamin Netanyahu called Prime Minister Vladimir Putin to ask that the deal be stopped. Israeli Defense Minister Ehud Barak also buttonholed Gen. Nikolai Makarov, chief of the General Staff of the Russian Armed Forces, at the Paris Air Show late last month with the same request.
  • Russia has already been rewarded for its cooperation. In April, Russia's deputy defense minister, Vladimir Popovkin, confirmed that Russia had signed a deal to buy $50 million worth of Israeli-made pilotless drones to replace the Russian-made version that performed disastrously during last summer's war with Georgia. Until recently, Israel had supplied pilotless drones, night-vision and antiaircraft equipment, rockets, and various electronic systems to Tbilisi, and the Georgian military received advanced tactical training from retired Israeli generals (including one who commanded Israeli ground forces during the 2006 offensive against Hizbullah). Now, says independent Moscow-based military analyst Pavel Felgenhauer, there is "a clear understanding" between Moscow and Jerusalem that the Israeli government will discourage private Israeli contractors from helping Georgia modernize its military.
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  • Iran's Revolutionary Guards stand to be the biggest losers if the S300 system doesn't come through, since there will be little they can do but watch the bombs fall if Western powers attack. Though Russia delivered a smaller Tor-M1 missile defense system to the Iranians last year, it's a localized weapon. The S300 system, according to Jane's Defence Weekly, is "one of the world's most effective all-altitude regional air defense systems, comparable in performance to the U.S. MIM-104 Patriot system." The latest version of the S300PMU2 Favorit has a range of up to 195 kilometers and can intercept aircraft and ballistic missiles at altitudes from 10 meters to 27 kilometers. Though it's hardly clear the S300 will pose a problem for the Israeli or U.S. air forces. The Israelis have trained in avoidance tactics on an S300 system bought by Greece and deployed on the island of Crete; the U.S. Air Force has its own S300 system, which is now deployed for training purposes in the United States. According to one senior Air Combat Command source in Washington, the U.S. Air Force has the S300 "covered."
  • Regardless of the system's effectiveness, delivery of the S300 will be a key bellwether of Russian relations with the West. Moscow has much less influence over Tehran than it likes to pretend when bargaining with the U.S., and the S300 is one of its few remaining chips.
  • For years, Russia used construction of the Bushehr reactor by the Russian nuclear company Atomenergoprom as a key element of leverage, shutting down work on the plant for long periods. But now that Atomenergoprom has completed construction and is training the Iranian staff to run it, that leverage has gone. Though Russian staff will remain on-site at Bushehr, the Iranians can now run it on their own.
  • Russians may have less pull with Teheran than it claims, but it still sees Iran-U.S. enmity as a strategic goal, both because it increases their own diplomatic leverage and because it keeps oil prices high. Furthermore, Russia has been trying to make itself a rallying point for anti-U.S. regimes from Venezuela to Syria and Iran in an effort to restore its status as a world strategic player—a retread of the Cold War model of forging alliances with any Third World dictator who would take Russian money. So while Russia doesn't want Iran to get nukes and historically fears Iranian influence in Central Asia, Moscow has little interest in helping a rapprochement between Iran and the West. Meanwhile, the Kremlin is, cannily or cynically, depending on one's point of view, keeping the S300s on the table, neither committing to scrapping the deal nor delivering the equipment—and reserving the right to continue to tack between Jerusalem and Tehran as self-interest dictates.
Pedro Gonçalves

SPIEGEL Interview with Henry Kissinger: 'Obama Is Like a Chess Player' - SPIEGEL ONLINE... - 0 views

  • SPIEGEL: Do you think it was helpful for Obama to deliver a speech to the Islamic world in Cairo? Or has he created a lot of illusions about what politics can deliver? Kissinger: Obama is like a chess player who is playing simultaneous chess and has opened his game with an unusual opening. Now he's got to play his hand as he plays his various counterparts. We haven't gotten beyond the opening game move yet. I have no quarrel with the opening move.
  • Kissinger: It is also too early to say that. If what he wants to do is convey to the Islamic world that America has an open attitude to dialogue and is not determined on physical confrontation as its only strategy, then it can play a very useful role. If it were to be continued on the belief that every crisis can be managed by a philosophical speech, then he will run into Wilsonian problems.
  • SPIEGEL: Obama did not only hold a speech. At the same time, he placed pressure on Israel to stop building settlements in the West Bank and to recognize an independent Palestinian state. Kissinger: The outcome can only be a two-state solution, and there seems to be substantial agreement on the borders of such a state.
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  • Kissinger: The important thing after military victory is to deal with the defeated nation in a generous way. SPIEGEL: And with this you mean not to subdue the defeated nation? Kissinger: You can either weaken a defeated nation to a point where its convictions no longer matter and you can impose anything you wish on it, or you have to bring it back into the international system. From the point of view from Versailles, the treaty was too lenient with respect to holding Germany down, and it was too tough to bring Germany into the new system. So it failed on both grounds.
  • SPIEGEL: What would a wise winner do? Kissinger: A wise victor will attempt to bring the defeated nation into the international system. A wise negotiator will try to find a basis on which the agreement will want to be maintained. When one reaches a point where neither of these possibilities exist, then one has to go either to increase pressure or to isolation of the adversary or maybe do both.
  • SPIEGEL: Were the Western countries wise in respect to their dealings with the former Soviet Union after their implosion? Kissinger: There was too much triumphalism on the western side. There was too much description of the Soviets as defeated in a Cold War and maybe a certain amount of arrogance. SPIEGEL: Not only towards Russia? Kissinger: In other situations as well.
  • Iran is a relatively weak and small country that has inherent limits to its capabilities. The relationship of China with the rest of the world is a lot more important in historic terms than the Iranian issues by themselves.
Argos Media

Restructuring deal is last chance saloon for General Motors | Business | guardian.co.uk - 0 views

  • The ailing carmaker General Motors has proposed handing a controlling stake of more than 50% to the US government as it struggles to reach a deal with its lenders to avert imminent bankruptcy.The nationalisation, in effect, of the biggest US motor manufacturer would be part of a huge debt-for-equity swap as GM tries to shed $44bn (£30bn) of $62bn in crippling liabilities owed to the government, trade unions and bondholders.
  • But the plan was condemned last night as "neither reasonable nor adequate", by bondholders who would get only 10% of the company, forcing them to write off billions of dollars. Existing shareholders would be left with only 1%.
  • With its future on a knife-edge, GM delivered a blunt warning that unless its creditors accepted the plan, it would declare bankruptcy and leave the courts to carve up the company. Fritz Henderson, the chief executive, told a press conference at the company's headquarters: "If this cannot be accomplished out of court, we'll go into court and restructure GM under bankruptcy if it's necessary."
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  • As it struggles to stay afloat, GM has deepened cuts that will include 23,000 job losses by 2011, the closure of 16 of its 47 factories in the US and a 42% drop in the number of dealers selling its vehicles.
  • GM announced it was shutting its 83-year-old Pontiac marque as it slims its portfolio of brands to focus on just four names in the US: Chevrolet, Cadillac, Buick and GMC. The gas-guzzling Hummer and Sweden's Saab will either be sold or closed by next year but GM made it clear that Britain's Vauxhall brand was not under threat.
  • Under the company's plan, the US treasury and the United Auto Workers' union would get 89% of the company between them. In return, the government would write off half of the emergency lending extended to GM by US taxpayers.The union's shares would replace the billions of dollars due to be pumped into a trust fund to cover employees' healthcare.
  • GM has offered a 10% stake to bondholders, who are owed $27bn – a tough proposition to swallow. For each $1,000 of loan notes, bondholders would get 225 shares, worth little more than $550 at today's market price.
  • The Obama administration insisted that private-sector creditors should get no more than this slim return, demanding that unions and taxpayers receive the lion's share of the company. But in order to proceed, the proposal must be accepted by an overwhelming majority of 90% of bondholders by a deadline of 1 June.
  • An ad hoc committee representing bondholders last night vigorously objected to the carve-up: "We believe the offer to be a blatant disregard of fairness for the bondholders who have funded this company and amounts to using taxpayer money to show political favouritism of one creditor over another."
  • Rebecca Lindland, an analyst at IHS Global Insight, said many bondholders were likely to believe they could get a better deal under a bankruptcy arrangement: "The Obama administration may be more pro-union than a bankruptcy judge but it's really a roll of the dice."
  • GM's smaller rival, Chrysler, has a deadline of Thursday to strike a rescue deal with Italy's Fiat without which the US government has said it will withdraw financial support. Daimler assisted the process last night by in effect writing off its 19.9% stake in Chrysler and $1.9bn in loans.
  • For GM, the challenge is to shrink to a scale where it can break even with sales of 10m cars in the US annually, rather than the previous rate of 15m to 17m.
Argos Media

Hardliners sweep to victory in Turk Cypriot vote | International | Reuters - 0 views

  • Turkish Cypriot hardliners swept to victory in parliamentary elections in northern Cyprus on Sunday in a result that could hamper peace talks with Greek Cypriots essential to Turkey's EU membership ambitions.
  • With 100 percent of the vote in, the right wing National Unity Party (UBP) clinched 44.06 percent of the vote, giving it by provisional accounts an outright majority in the 50 seat parliament. It was a stinging defeat for the ruling Republican Turkish Party (CTP), a key ally of Turkish Cypriot leader Mehmet Ali Talat.
  • The CTP, which bore the brunt of public discontent over a faltering economy and continued international isolation of the breakaway territory, took 29.25 percent of the vote.
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  • The UBP advocates an outright two-state settlement on Cyprus, at odds with the federal model now being discussed by Talat and Greek Cypriot leader, President Demetris Christofias.
  • The Greek Cypriots represent Cyprus in the European Union and say they will block Turkey's admission to the EU as long as the island remains divided. Turkey is currently in entry negotiations, but there is strong resistance to Ankara's entry among several member-states.
  • alat will retain his leadership of the territory, but his room for maneuver is likely to be limited by a parliament now dominated by the UBP. The basis of the current talks is reuniting the island as a bizonal federation. The UBP says it wants a rethink of the process.
  • "We will continue to support negotiations," said UBP leader Dervis Eroglu. "No one should say we are against them. We will put forward our views and discuss them within the framework of Turkey's foreign policy on Cyprus." In an earlier interview with Turkey's Zaman newspaper, Eroglu was quoted as saying: "Everything will be easier if it is universally accepted that we (Turkish Cypriots) are a nation and that we have a state."
  • Greek Cypriots refuse to discuss Turkish Cypriot sovereignty, and say a deal should see the evolution of the internationally recognized Republic of Cyprus into a federation, rather than a loose association of two states. Greek Cypriots issued a chilly response to the election result. "We will have bigger problems, that is my prediction," Christofias said, referring to the election.
  • Talat, whose own tenure as president expires in April 2010, said the winner of Sunday's poll should not disrupt peace negotiations. "A government in (Northern Cyprus) that seeks to scupper the talks will also be harming Turkey's EU accession process," he told Havadis, a Turkish Cypriot daily.
  • Analysts said Turkey, which supported a U.N. peace blueprint for Cyprus rejected by Greek Cypriots in 2004, would not want a disruption of settlement talks. "Turkey is going to continue on its EU path and wants (Northern Cyprus) to do the same," said Ahmet Sozen, a lecturer in international relations at the Eastern Mediterranean University. "Turkey has sent a message to all political players in northern Cyprus that a no-solution policy is not a policy any more."
  • The United Nations envoy for Cyprus, Alexander Downer, said last week the negotiations had been making "steady progress."
Argos Media

China considers setting targets for carbon emissions | World news | guardian.co.uk - 0 views

  • The Chinese government is for the first time considering setting targets for carbon emissions, a significant development that could help negotiations on a Kyoto successor treaty at Copenhagen later this year
  • Su Wei, a leading figure in China's climate change negotiating team, said that officials were considering introducing a national target that would limit emissions relative to economic growth in the country's next five-year plan from 2011.
  • "It is an option. We can very easily translate our [existing] energy reduction targets to carbon dioxide limitation" said Su. "China hasn't reached the stage where we can reduce overall emissions, but we can reduce energy intensity and carbon intensity."
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  • A second government adviser, Hu Angang, has said China should start cutting overall emissions from 2020.
  • While that is a minority view and final decisions are some way off, the proposals are striking because they are at odds with China's official negotiating stance.
  • Beijing has hitherto rejected carbon emission caps or cuts, arguing that its priority is to improve its people's living standards – and that the west caused the global warming problem and should fix it. But developed nations argue that they cannot commit to deep cuts and to substantial funding for developing nations to fight climate change unless those countries embrace emissions targets.
  • Environmental groups and foreign diplomats said a carbon intensity target would be a significant step forward. Any move by China, the world's fastest expanding major economy, biggest emitter of greenhouse gases and most influential developing nation, would have an enormous impact on the outcome of the Copenhagen summit in December."It would be a significant step for China to set a target that directly links carbon emissions to economic growth for the first time," said Yang Ailun of Greenpeace."This is a green shoot of pragmatism that should be nurtured," said one European diplomat.
  • Hu, an influential economist and advocate of "green revolution", is pressing the government to take a leadership role in Copenhagen by making a public commitment to reduce emissions, and last week submitted the proposal to set a new carbon dioxide goal.He is one of 37 members of an elite body that advised the premier, Wen Jiabao, to include ambitious targets of a 20% improvement in energy efficiency and 10% reduction of pollution in the 2006-2010 plan. With government figures suggesting the country is on course to approach or exceed those goals, Hu suggests they be extended for the next plan with the addition of the carbon dioxide target.
  • If his proposal is accepted, Hu believes China will be able to make an international pledge this year to reduce carbon dioxide emissions from 2020.
  • the debate on China's role in greenhouse gas reductions is widening. Last month, the Chinese Academy of Science reported that the country's carbon dioxide emissions relative to GDP should be reduced by 50% by 2020, and that total CO2 emissions should peak between 2030 and 2040 if the country introduced more stringent energy-saving policies and received more financial support and technology from overseas.
  • Citing new figures from the state bureau of energy, Hu said China overtook the US last year as the world's biggest energy producer with 2.6bn tonnes of standard coal equivalent, seven years ahead of expectations. "If we can't succeed in reducing energy consumption, then no one can. I tell the government that a 1% failure in China is a 100% failure for the world," said Hu. "We must satisfy our national interest and match it with the interest of humanity."
Argos Media

European Leader Assails American Stimulus Plan - NYTimes.com - 0 views

  • The European Union’s crisis of leadership during the economic downturn was thrown into sharp relief on Wednesday, as the current president of the 27-nation bloc labeled President Obama’s emergency stimulus package “a way to hell” that will “undermine the stability of the global financial market.”
  • What made the situation even more trying for those who hope that the European Union might find a common voice in this crisis was that Mr. Topolanek’s own governing coalition collapsed on Tuesday. The Czech opposition party, which favors bigger increases in domestic spending during the slump, won a no-confidence vote on his leadership.
  • Despite widespread fears that European nations could prolong the current recession unless they act in concert with one another and the United States, the slump has highlighted differences over deficit spending, interest rates and possible bailouts for new union members in the East. There are few signs that the alliance is developing the political leadership to match its economic weight.Britain, like the United States, has undertaken an aggressive fiscal stimulus and slashed interest rates. But Germany and France have opposed calls for further large stimulus packages and even greater deficit spending, while the European Central Bank has kept interest rates higher than they are in the United States and Britain. Germany and even some Central European countries opposed calls by Hungary for the creation of a single rescue fund for heavily indebted countries in Eastern Europe.
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  • Mr. Topolanek’s comments during a speech to the European Parliament underscored unresolved differences.
  • Mr. Topolanek’s remarks were considered impolitic, with the German leader of the Socialist group in the European Parliament, Martin Schulz, telling him, “You have not understood what the task of the E.U. presidency is,” and describing his comments as “not the level on which the E.U. ought to be operating with the United States.”
  • A Czech spokesman said that Mr. Topolanek meant to say that the European Union would be on the way to hell if it increased its own spending too much, rather than predicting that the United States was doomed.
  • Mr. Topolanek is not alone in his concern that Mr. Obama’s stimulus package, which will push the United States budget deficit this year to 10 percent or more of gross domestic product, will put a huge strain on global financial markets. German officials have also criticized the evolving American program, and many other European nations have declined to create fiscal stimulus programs anywhere near as large as that of the United States, arguing that too much extra money will lead quickly to inflation.
Pedro Gonçalves

David Cameron suffers Commons defeat on EU budget | Politics | The Guardian - 0 views

  • David Cameron will face a battle to secure parliamentary backing for any EU budget deal that falls short of a real-terms cut after he suffered his first major Commons defeat on EU spending.
  • The rebel amendment demanded that the next seven-year EU budget, which will run from 2014-2020, should be "reduced in real terms".
  • The vote is not binding on the government. But No 10 sources made clear that the prime minister would lay down a "red line" at the EU summit, which opens on 22 November, to reject a planned 5% increase in the budget to ensure that it rises only in line with inflation.
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  • senior Tory Eurosceptics, who declined to support the rebels because they did not want to vote in the same lobby as Balls, said they would have no qualms about rebelling if Cameron refused to change his position at the summit.The prime minister's negotiating position would allow the EU budget to rise in line with inflation, which would lead to a 2% increase. The EU budget will have to be approved by MPs."When a budget deal is put to the Commons I will vote against it if there is any increase in EU spending," one former Tory cabinet minister said.
  • Margaret Hodge, the Blairite former minister who chairs the Commons public accounts committee, was heard to describe the Labour vote as "hateful" as she prepared for a meeting of her committee. "I hate this vote. I do not want to do it. It's hateful," Hodge said. "I just think it's outrageous. I'm almost wanting to abstain."
  • One former Labour cabinet minister said: "The danger is that we are stroking a dangerous underbelly of Euroscepticism." Another former cabinet minister said: "I suppose I can just about stomach having to vote for this if this is about scoring a tactical hit on the government. But if this marks a strategic shift in our position on Europe, then I would be very worried."Labour said its position was consistent. Its MPs voted in favour of a real-terms cut in the budget in July.
  • The vote shows that the prime minister, who suffered a larger rebellion on a backbench motion on an EU referendum last year, is struggling to impose his authority on a sizeable chunk of his party.The warning from some Eurosceptics that they are keeping their powder dry until the substantial Commons vote to approve the eventual EU budget deal shows that he will have a tough hand to play at the summit.
  • The prime minister will tell Angela Merkel at a meeting next week that he faces intense parliamentary pressure to freeze the EU budget. But No 10 expects the German chancellor to say that she faces a more important challenge – saving the euro.
  • Nigel Farage, the leader of the UK Independence party, said: "I am delighted that the house voted with the country rather than with the government whips. It is outrageous that the prime minister was prepared to go to Brussels in November and argue for what he would call a freeze and the rest of us would call an increase in the amount of money removed from British taxpayers to be spent by the distant EU bureaucrats."
Pedro Gonçalves

Iran threatens U.S. Navy as sanctions hit economy | Reuters - 0 views

  • Army chief Ataollah Salehi said the United States had moved an aircraft carrier out of the Gulf because of Iran's naval exercises, and Iran would take action if the ship returned."Iran will not repeat its warning ... the enemy's carrier has been moved to the Sea of Oman because of our drill. I recommend and emphasise to the American carrier not to return to the Persian Gulf....we are not in the habit of warning more than once," he said.
  • After years of measures that had little impact, the new sanctions are the first that could have a serious effect on Iran's oil trade, which is 60 percent of its economy.Sanctions signed into law by U.S. President Barack Obama on New Year's Eve would cut financial institutions that work with Iran's central bank off from the U.S. financial system, blocking the main path for Iran to receive payments for its crude.
  • The EU is expected to impose new sanctions by the end of this month, possibly including a ban on oil imports and a freeze of central bank assets.
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  • Even Iran's top trading partner China - which has refused to back new global sanctions against Iran - is demanding discounts to buy Iranian oil as Tehran's options narrow. Beijing has cut its imports of Iranian crude by more than half for January.
  • Experts still say they do not expect Tehran to charge headlong into an act of war - the U.S. Navy is overwhelmingly more powerful than Iran's sea forces - but Iran is running out of diplomatic room to avert a confrontation.
  • "I think we should be very worried because the diplomacy that should accompany this rise in tension seems to be lacking on both sides," said Richard Dalton, former British ambassador to Iran and now an associate fellow at Chatham House think tank.
  • "I don't believe either side wants a war to start. I think the Iranians will be aware that if they block the Strait or attack a U.S. ship, they will be the losers. Nor do I think that the U.S. wants to use its military might other than as a means of pressure. However, in a state of heightened emotion on both sides, we are in a dangerous situation."
  • The new U.S. sanctions law, if implemented fully, would make it impossible for many refineries to pay Iran for crude. It takes effect gradually and lets Obama grant waivers to prevent an oil price shock, so its precise impact is hard to gauge.
  • The European Union is expected to consider new measures by the end of this month. The sanctions would halt purchase of Iranian oil by EU members such as crisis-hit Greece, which has relied on easy financing terms offered by Tehran to buy crude.
  • Although China, India and other countries are unlikely to sign up to any oil embargo, tighter Western sanctions mean such customers will be able to insist on deeper discounts for Iranian oil, reducing Tehran's income.
  • Beijing has already been driving a hard bargain. China, which bought 11 percent of its oil from Iran during the first 11 months of last year, has cut its January purchase by about 285,000 barrels per day, more than half of the close to 550,000 bpd that it bought through a 2011 contract.The impact of falling government income from oil sales can be felt on the streets in Iran in soaring prices for state subsidised goods and a collapse of the rial currency.
  • "The rate is changing every second ... We are not taking in any rials to change to dollars or any other foreign currency," said Hamid Bakshi at an exchange office in central Tehran.
  • The economic impact is being felt ahead of a nationwide parliamentary election on March 2, the first vote since a disputed 2009 presidential election that brought tens of thousands of Iranian demonstrators into the streets.
  • In a sign of political tension among Iran's elite, a court jailed the daughter of powerful former President Akbar Hashemi Rafsanjani on Tuesday for "anti-state propaganda."Rafsanjani sided with reformists during the 2009 protests. Daughter Faezeh Hashemi Rafsanjani went on trial last month on charges of "campaigning against the Islamic establishment."
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