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« Reply #2010 on: Aug 06, 2012, 06:56 AM »

06 August 2012 - 09H13 

'Was it worth it?' ask young Maoist fighters in Nepal

AFP - As youths they were idealistic Maoist soldiers fighting to bring revolution to Nepal but now that their leaders are in power, many say the party has abandoned its faithful.

Among a class of 12 students on an engineering course designed to help them rejoin civilian life after the war ended in 2006, there is deep resentment and a sense of betrayal that the sacrifices they made have been forgotten.

"Party cadres and supporters have begun to question what the party has achieved. What have we got?" said Ratna Kumar Century, a stocky 28-year-old, as he fumbled with a computer mouse.

"The establishment faction has betrayed the people," he said. "They said we will create a new Nepal which will be inclusive and reformative. But they seem content with the status quo."

The former rebels at the Jiri Technical Institute in northeast Nepal are among thousands of Maoists offered a new start after living in UN-monitored camps for five years when peace was declared.

They are being taught to design the roads, buildings and canals that will form the future of a state they waged a guerrilla war against for a decade, but it is not a future they look forward to with much hope.

Instead they see their leaders talking politics in mansions in Kathmandu, and they complain that they are an ignored and inconvenient part of the past.

Pushpa Kamal Dahal, the Maoist chief known as Prachanda ("the fierce one"), once inspired devotion among his fighters as they brought the government to a standstill in a civil war that claimed 16,000 lives.

He became prime minister for eight months after the Maoists won elections in 2008 and his party oversaw the abolition of the monarchy, but is now held in little esteem.

"People placed their hopes on Prachanda. But he drifted from his path," said Century, who was attracted to Maoism's aim to destroy elite hierarchies such as Nepal's Hindu caste system.

"If the sacrifices and struggles were just for elevating leaders to power, was it worth it?" he said.

Century was among 19,000 Maoists confined to cantonments because of disagreements between Nepal's political parties over the future of the former fighters after the war finished.

A deal was reached last year that 6,500 fighters would be integrated into the national army while the rest would be given money or vocational training courses like the one in Jiri.

Their 15-month course, funded by German aid agency GIZ, is divided between on-the-job experience and classroom sessions designed to help them find jobs, but many find it hard to look past their brutal wartime experiences.

Mahesh Bogati was born into a family of poor subsistence farmers in Nepal's remote Karnali region and spent five years fighting government troops as part of the Maoist "people's war".

The 28-year-old traded his textbooks for guns when he was just 17.

"I spent several years as a fighter in the war. During those years, all I learned is how to lay an ambush and make bombs and improvised devices. Because of the war I also missed my studies," Bogati told AFP.

"My comrades and I are facing the challenge of civilian life. But our leaders are more concerned about remaining in power. They have forgotten us.

"They are enjoying their luxurious life in Kathmandu while we are worried about our future."

The growing distrust among grassroots activists was fuelled in January when it emerged that Prachanda had moved into a lavish mansion in the capital, a property he has since said he intends to give up.

Two months later party officials were accused of corruption after it was revealed they had offered Prachanda's son $250,000 to climb Mount Everest.

The Maoists are currently running the country as a "caretaker" government with no parliament and no real mandate after the legislature was dissolved when it failed to agree on a new peacetime constitution.

Worsening the political turmoil, last month a hardline faction of the party broke away, a move that some students suggest could inspire former rebels to take up arms again if another insurgency is launched.

The party leaders insist Nepal is in a "transitional" phase towards achieving social justice and rejects claims that the insurgency achieved little.

"There is no reason to regret the time spent fighting the people's war," party spokesman Shakti Basnet told AFP.

With Nepal's post-war development bogged down and most of the country still desperately impoverished, the difficult task of fostering a more positive attitude among the Jiri students falls to the principal, Ram Hari Khanal.

"There were doubts over this programme. We were not sure whether it would be successful or not. But I am optimistic about their future," he told AFP.
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« Reply #2011 on: Aug 06, 2012, 06:59 AM »

 SPIEGEL ONLINE
08/06/2012 01:34 PM

Support for a Dictatorship: German Police Trained Belarusian Officials

By Christian Neef

Despite European Union sanctions against the repressive regime of Belarusian President Alexander Lukashenko, German federal police were training his "experts" as late as last year. The training took place in Belarus just weeks after a crackdown on opposition protesters.

Accusations that German federal police had questionable ties to the despotic regime of Belarusian dictator Alexander Lukashenko were summarily dismissed by the head of the force last week. Now, new information has revealed that the rumors were actually true.

The suggestion was "complete nonsense," said Matthias Seeger, the chief of the federal police, who has since been relieved of his duties for reasons that are unclear. According to Seeger, the federal police merely had contacts with the Belarusian border patrol, and only until two years ago.

But in a response to an inquiry into police operations abroad by the far-left Left Party, which has been seen by SPIEGEL, the German government has revealed that Seeger's statements were false. As late as last year, the German federal police had not completely ended its training activities for the Lukashenko regime. It was still providing, at the very least, "instruction to Belarusian experts in the area of risk analysis," according to the German government.

The timing of the training, which was conducted from Feb. 21 to Feb. 25, 2011, is particularly noteworthy. It took place just days after the beginning of show trials in Minsk against opposition members who had protested against questionable presidential election results that further consolidated Lukashenko's power in December 2010.

During the protests, members of the country's OMON special police unit had beaten participants and arrested around 700 people, including almost all of the opposition presidential candidates. As a result, the European Union imposed drastic sanctions on Belarus in January 2011. Nevertheless, the German police had no trouble traveling to Minsk three weeks later.

Since his election in 1994 as the country's first president, Lukashenko has been a source of ongoing international concern, cracking down on free speech and other human rights. In March of this year, the EU widened its sanctions against Belarus, citing increased concerns about its "repressive policies."
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« Reply #2012 on: Aug 06, 2012, 07:00 AM »

 SPIEGEL ONLINE
08/06/2012 12:59 PM

'Attack on Democracy': Monti Comments Enrage German Politicians

With his appeal in a SPIEGEL interview for national leaders to be given greater independence from parliaments in euro bailout decisions, Italian Prime Minister Mario Monti has sparked intense anger in Germany. Members of both Chancellor Angela Merkel's government and the opposition have labelled Monti's demands "undemocratic."

Italian Prime Minister Mario Monti is concerned that the euro zone is inflicting serious damage on Europe. In an interview with SPIEGEL published on Monday, he said: "The tensions that have accompanied the euro zone in recent years are already leading to a psychological dissolution of Europe." The 68-year-old warned that if the euro were allowed to become a factor in Europe drifting apart, "then all the foundations of the European Project will be destroyed."

But one statement in his interview in particular has sparked a contentious debate. Monti said that European leaders needed to defend their freedom to act against parliaments. "If governments allow themselves to be entirely bound to the decisions of their parliament, without protecting their own freedom to act, a break up of Europe would be a more probable outcome than deeper integration."

Since taking office in Italy in November, Monti has led a cabinet of technocrats that has the support of a broad majority in parliament. Nevertheless, when it comes to economic reforms, austerity measures and the euro bailout, Monti often struggles to patch together a majority ahead of key votes. But his comments also appear to be directed at Germany, where Chancellor Angela Merkel requires parliamentary approval for most of her major bailout policies.

In Berlin, a number of politicians have spoken out against Monti's comments. "The acceptance of the euro and its rescue is strengthened through national parliaments and not weakened," Joachim Poss, deputy floor leader for the center-left Social Democratic Party, told the Rheinische Post newspaper. The politician said it appeared that the image of parliament in Italy had suffered during the "unspeakable Berlusconi years."

Meanwhile, Frank Schäffler, a prominent euro-skeptic with the business-friendly Free Democratic Party, the junior partner in Merkel's coalition government, said any possible collapse of the European Union would be a product of too little democracy and rule of law rather than too much. His party colleague, FDP floor leader Rainer Brüderle, said when implementing the necessary reforms, people needed to "take care that Europe retains sufficient democratic legitimization."

'We Need Strengthening, Not Weakening of European Democracy'

Criticism of Monti erupted over the weekend after SPIEGEL pre-released quotes from the interview. Michael Grosse-Brömer a senior official with Merkel's Christian Democratic Union said that while a government's ability to act is of decisive importance, "that doesn't in any way justify an attempt to limit the parliamentary controls that are necessary in a democracy."

German Foreign Minister Guido Westerwelle, also of the FDP, joined the debate as well, saying that when it comes to European issues, "it is beyond discussion. We need a strengthening, not a weakening of democratic legitimation in Europe."

The most outspoken criticism came from politicians with the Christian Social Union (CSU), the Bavarian sister party to Merkel's conservatives, with a leading official calling Monti's words an "attack against democracy." "The greed for German taxpayer money is blossoming in undemocratic ways with Mr. Monti," party General Secretary Alexander Dobrindt said. "Mr. Monti apparently needs a clear announcement that we Germans will not be prepared to eliminate democracy in order to finance Italian debts."

In his interview with SPIEGEL, Monti warned of the possible break up of Europe and called for euro-zone governments to have greater independence from parliament in decision-making. Of course governments needed to orient themselves based on parliament's decisions, he said. "But every government also has the duty to educate parliament," Monti said.

During the past week, Monti moved numerous times to distance himself from Germany's current position in the euro bailout. Most recently, he called for a banking license to be issued to the long-term euro rescue fund, the European Stability Mechanism (ESM) -- a move Berlin has staunchly opposed. In his SPIEGEL interview, the Italian leader greeted efforts by the ECB to address "severe malfunctioning" in the government bond market. He said the problems "have to be solved quickly now so that there's no further uncertainty about the euro zone's ability to overcome the crisis."

Criticism of Merkel

In recent days, negative sentiment against Germany and Chancellor Merkel has been growing in Italy. Last week, the Italian daily Il Giornale published a story with the headline "Quarto Reich," or "Fourth Reich" on its front page. It featured an image of Merkel raising her right arm with the caption "Heil Angela." The paper is part of Silvio Berlusconi's publishing empire and the headline was aimed at expressing dissatisfaction over Merkel's objections to a banking license for the ESM. Nevertheless, it reflects the increasingly shrill tenor of the political debate in Europe over the euro crisis and it mirrors similar coverage of the chancellor in the Greek media.

Even at home in Germany, some are criticizing Merkel's positions, including Baden-Württemberg Governor Winfried Kretschmann of the Green Party. "She has a tough task and I don't want to come across as a know-it-all," he told the tabloid Bild newspaper. "But Ms. Merkel needs to emphasize the global context of individual decisions more clearly. I was never a huge fan of former Chancellor Helmut Kohl, but he did have a clear political vision for Europe … I miss that clarity today."

Meanwhile, the chancellor of neighboring Austria, Werner Faymann, has said he believes Merkel will shift her policies. In an interview with the Vienna daily Kurier, Faymann said he believed that Merkel would abandon her opposition to providing the ESM with a banking license, which would essentially give it unlimited borrowing capacity with the European Central Bank, if it became clear that was the only way to save the euro. "I anticipate that when it is necessary for the protection of the euro, that the German chancellor will go along with the next step." When a reporter at the newspaper reminded Faymann that Merkel opposed the banking license, the Austrian chancellor replied: "We've already had the experience that the German chancellor has changed her mind during the course of a political debate -- always to protect the euro."
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« Reply #2013 on: Aug 06, 2012, 07:01 AM »

 SPIEGEL ONLINE
08/06/2012 01:01 PM

'Greece Should Leave': Patience with Athens Nearing an End in Germany

Even as Greece's leading creditors expressed satisfaction with a new agreement aimed at labor market reforms, patience in Germany is running out. The tone among politicians allied with Chancellor Merkel is growing sharper.

The good news is that Greece is not going to go bankrupt -- at least not this month. Despite Athens facing a €3.2 billion ($3.96 billion) bond repayment in August and rapidly running out of cash, the European Central Bank (ECB) last week rubber-stamped a request from the Bank of Greece, allowing it to boost the amount of money it can loan to the Greek government. The move should keep the country's head above water at least until September.

After that, though, all bets are off. The country's international creditors, represented by the troika of the European Commission, the ECB and the International Monetary Fund, left Athens on Sunday, but not before getting the government of Prime Minister Antonis Samaras to agree to push forward far-reaching reforms and further savings measures -- all of which promise to be difficult to push through in the face of increasing weariness on the part of Greek voters.

Furthermore, there are new indications that the euro zone's biggest paymaster, Germany, is rapidly losing its appetite for footing the bill and that Chancellor Angela Merkel will have difficulties keeping her coalition together in the face of difficult currency challenges to come.

"According to my forecasts, Greece should leave the euro zone by the end of the year," said Bavarian Finance Minister Markus Söder, a member of the Christian Social Union (CSU), the Bavarian sister party to Merkel's Christian Democratic Union (CDU) and a crucial part of her governing coalition.

That, though, wasn't all. "Each new aid measure, every easing of the demands, would be the wrong path," Söder said in comments to the Sunday tabloid Bild am Sonntag. He added that "Athens must become an example demonstrating that this euro zone also has teeth." Just in case his message hadn't quite gotten through, he added: "At some point, everyone has to move away from mommy. For Greece, that time has come."

A Pattern of German Skepticism

Reaction to the comments has been prompt. Social Democratic Party deputy floor leader Joachim Poss noted that "Markus Söder has always been an unprincipled rowdy." His counterpart with the CDU, Michael Meister, told the Berlin daily Tagesspiegel that a Grexit debate is damaging and unhelpful. Even German Foreign Minister Guido Westerwelle threw his hat in the ring, saying in a statement that "attempts to raise one's domestic political profile cannot be the benchmark of our actions in Germany or in any country in Europe."

Nevertheless, Söder's comments fit it well with an increasing pattern of German skepticism regarding Greece. Indeed, Horst Seehofer, the head of the CSU, also said recently that aid to Athens had reached "the limit of what is acceptable." It is a stance that have some concerned that the CSU, facing a tough state election next year, might turn to anti-euro populism in an attempt to get votes -- an eventuality that could be extremely damaging for Merkel's coalition.

But its not just the CSU that has been increasingly hostile to Greece recently. Indeed, Söder received instantaneous support from the Bavarian economics minister, Martin Zeil, who is a member of the Free Democratic Party (FDP), Merkel's junior coalition partner in Berlin. "Those who are not able to fulfil the regulations that apply to all should leave the euro zone," he said.

His comments echo controversial statements made by Philipp Rösler, who heads the FDP and is Merkel's deputy chancellor. "If Greece no longer meets its requirements, there can be no further payments," Rösler said on German public broadcaster ARD. "For me, a Greek exit has long since lost its horrors."

For now, at least, Greece's detractors in Germany are going to have to wait. The Samaras' government reached an agreement with the troika on Sunday on further austerity measures aimed at eliminating some €11.5 billion in spending by 2014. "Talks went well, we made good progress," IMF mission chief Poul Thomsen said on Sunday.

'Nobody but the Greeks Can Be Blamed'

The troika's verdict is crucial because it will determine whether Greece can continue to draw on the €130 billion bailout package that is currently keeping the country afloat. Samaras had asked the troika for two additional years to meet austerity and reform obligations due to a worse than expected economic situation and political turmoil resulting from two general elections this year in the space of just a few months.

International appetite for such a delay -- particularly in Germany -- is limited, however. Now Athens has promised to move forward on significant structural changes aimed primarily at liberalizing the labor market in addition to further public sector cuts. Domestic opposition, though, promises to be significant and unions in particular have signalled their resistance to reform efforts. Samaras may be in for a difficult political battle.

Söder, for his part, doesn't seem to care. "Any further assistance for Greece is like pouring water into the desert," he said on Sunday. "Nobody but the Greeks can be blamed for the problems in Greece."
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« Reply #2014 on: Aug 06, 2012, 07:02 AM »

 SPIEGEL ONLINE
08/06/2012 12:13 PM

Buying Bonds against the Crisis: How the ECB Plans to Use Its Bazooka

The European Central Bank has come up with a new plan to buy the bonds of debt-ridden countries in a bid to fight the euro crisis. Under the new approach, the ECB would only intervene if governments commit to reforms. But experts criticize the plan as dangerous and undemocratic. By SPIEGEL Staff

Until recently, Mario Draghi was regarded as a man who understood the markets. The head of the European Central Bank (ECB) worked at investment bank Goldman Sachs for years, and he had studied under such renowned economists as Paul Samuelson and Franco Modigliani. At receptions in Frankfurt, the German banking capital, the elegant Italian was as adept at discussing the latest accounting guidelines as he was at talking about golf handicaps. He was known in the financial world as "Super Mario."

That reputation has been tarnished since last week. Shortly after Draghi began a highly anticipated press conference last Thursday, following a meeting of the ECB Governing Council, stock prices plunged and there was talk of "frustration," "irritation" and "cold showers" in the world's financial centers. A broker on New York's Wall Street railed that the ECB chief had treated investors like a bunch of "idiots."

In fact, Draghi had done the worst thing a central banker can do to traders: He had disappointed their expectations. Stock and bond prices had been going up for a week after Draghi had suggested, at a conference in London, that the ECB would soon be buying up Southern European sovereign bonds on a large scale once again.

But when Draghi appeared before journalists in Frankfurt last Thursday, there was no talk of quick purchases, but rather of "conditions" for the debtor countries. The central bank chief mentioned various "options" that could be extensively reviewed by commissions and possibly implemented at some point -- "could" being the operative word, rather than "must." Instead of "Big Bertha," as Draghi otherwise likes to call his rescue programs, this time he was offering the markets something with a somewhat smaller caliber.

Hasty Compromise

Now the latest idea to rescue the monetary union threatens to turn into yet another flop. What Draghi presented last week was not a carefully prepared strategy, but a hastily negotiated compromise that satisfied no one. The plan doesn't go far enough for Southern European countries, while Jens Weidmann, president of the German central bank, the Bundesbank, voted against it, fearing for the ECB's independence.

The plan does have its advantages, but because Draghi did such a poor job of selling it, the drawbacks are now its salient feature. The approach is poorly compatible with the central bank statutes, increases liability risks in the euro zone and places the monetary watchdog in a dangerous dual role. The ECB would become something of a secondary government in Europe while at the same time becoming more dependent on politicians.

In the future, there can be no question of the ECB being a fiercely independent institution modeled after the Bundesbank, as it was originally intended to be. If Draghi prevails, the central bank will become a kind of adjunct to the European finance ministers, which could ultimately lead to higher inflation. "The ECB has a clear mandate to guarantee price stability," warns Jürgen Stark, a former member of the ECB Executive Board. "Every additional responsibility compromises this core function."

Draghi, however, is convinced that his proposal was unavoidable, due to the escalation of the euro crisis in recent weeks. At a major crisis summit in late June, euro-zone leaders had agreed to concrete steps to form a banking union. Soon afterwards, the euro-zone finance ministers approved a €100 billion package to rescue the ailing Spanish financial sector. But the effects of those measures soon fizzled out.

Yields on Spanish and Italian government bonds went up, reaching a worrying 7.6 percent for long-term Spanish bonds. Yields on short-term bonds also rose sharply.

There have been other alarming developments, as well. Some €163 billion in capital left Spain within the first five months of the year. Foreign companies and investors have pulled out their money, invested less in Spanish securities and issued fewer loans to industry. The major Swiss bank Credit Suisse estimates that Italy and Spain will lose about €700 billion a year at the current rate of capital flight.

Stemming Capital Flight

Draghi decided that this couldn't continue. In a bid to stem the capital flight from Southern Europe, Draghi, at his memorable appearance in London, not only announced new measures to combat the crisis, but also promised that they would be sufficient, no matter what happened. The world's markets immediately interpreted the announcement as a signal that the ECB would soon return to buying up large quantities of Southern European government bonds.

The only problem was that the step was precipitous and poorly prepared. The ECB president had left large parts of the central bank leadership in the dark about his foray. In addition, he initially had no idea what the new bond-buying program would actually look like. Draghi had only vaguely discussed his ideas with a few of his fellow Executive Board members. The governors of the national central banks, such as Bundesbank President Weidmann, only learned of the plan through news agencies. And no one was notified in advance in the European capitals, either. Klaus Regling, the head of the temporary euro-zone bailout fund, the European Financial Stability Facility (EFSF), also had no advance warning, despite playing a key role in Draghi's plans. Draghi had had "nothing precise in mind," says an official at the central bank's Frankfurt headquarters. "It was a rash remark."

The central bank's website revealed just how taken by surprise the ECB was. Usually, it immediately complements important pieces of news with explanations and comments, and posts transcripts and statements, so that markets and the public can form their own opinion. But following Draghi's London appearance, journalists and analysts searched in vain for material on the ECB website. It was only after a considerable delay that the ECB posted a transcript of Draghi's speech on its site -- and nothing else.

Not surprisingly, Draghi's first task after returning home from London was to placate his critics. He called many of the 17 ECB governors to explain himself. On Monday of last week, he even met in person with Bundesbank head Weidmann, who also lives in Frankfurt, to discuss his plan.

The discussions were sobering, and Draghi was forced to recognize that simply reviving the dormant purchasing program for government bonds was not an option. There would have been too much resistance to such an undertaking, both at the Bundesbank and other European monetary authorities.

Keeping Up the Pressure

By the end of January, the central bank had spent over €200 billion on buying government bonds, including large numbers of Spanish and Italian bonds, to bring down interest rates. But the program turned out to be only moderately successful. Interest rates went up again after a short reprieve. At the same time, the billions from Frankfurt reduced the pressure on governments to carry out reforms.

This had to be avoided if the program were to be repeated, Draghi's colleagues demanded. ECB Executive Board members Jörg Asmussen of Germany and Benoît Coeuré of France began to develop a version of the program that could placate critics' doubts. The effort also involved Thomas Wieser, permanent chairman of the Euro Group Working Group, as well as senior German officials Thomas Steffen of the German Finance Ministry and Nikolaus Meyer-Landrut of the Chancellery. Finance Minister Wolfgang Schäuble, who met last week with his American counterpart Timothy Geithner on the German resort island of Sylt, was also kept constantly in the loop.

The group came up with a classic compromise: The ECB will intervene in the bond markets so as to fulfill Draghi's London promise, but it will also require the countries benefiting from the action to continue with reforms.

The plan will work as follows. In the future, crisis-hit countries will not automatically receive unconditional support from Frankfurt. Before the ECB can buy, say, Spanish or Italian bonds, the governments in Madrid and Rome will have to submit a request to the European bailout fund. The fund will then become active in the so-called primary market. This means that it will buy bonds directly from the countries in question, which the ECB is currently prohibited from doing.

The European Central Bank will support the program by buying the affected countries' bonds from investors and banks on the secondary market, thereby supporting prices and keeping interest rates low.

For the affected countries, the plan requires that they submit to a restructuring program like the ones already in place in Greece, Portugal and Ireland. This enables the ECB to tie its aid to conditions. The ideas amount to expanding the financial clout of the bailout funds by piggybacking them on the ECB's unlimited firepower.

Considerable Reservations

When Draghi presented the plan to the ECB's Governing Council last week, its members added another feature. Under the old purchasing program, the ECB acquired long-term bonds. Now the central bank will concentrate on buying shorter-term bonds, because this can be justified by citing the goals of monetary policy.

In theory, Draghi could implement his new rescue tool immediately. But whether it can truly operate successfully is far from certain. There are considerable reservations, both in Germany and in Southern Europe.

So far, the government in Rome has strongly resisted filing an official request for assistance in Brussels, and it regards demands that it do so as an impertinence. The Spaniards, for their part, could only bring themselves to request aid for their troubled banks.

In Germany, too, Draghi's plan is by no means popular. On the contrary, there are great concerns that it will lead to the Frankfurt central bank abandoning even more of the principles that are considered sacrosanct in Germany.

Expanding Its Powers

The Maastricht Treaty defines the ECB as a Europeanized version of Germany's Bundesbank, politically independent and committed to maintaining stable prices as its primary goal. The Frankfurt-based institution has certainly achieved its goals since the introduction of the euro, with the average inflation rate in Germany being lower than in the days of the deutsche mark.

But during the crisis of recent years, the ECB has moved further and further away from its German role model. It has expanded its powers to their limits, if not beyond.

This is evidenced, in particular, by the question of whether the ECB should be allowed to buy the bonds of ailing countries to bring down yields. Legal experts disagree on the issue, but it is indisputable that the more bonds the central bank acquires, the stronger its actions run counter to the principle that it should not be allowed to finance government budgets.

Experts are understandably critical. "The ECB is in the process of distancing itself more and more from the stability culture of the Bundesbank," says Georg Fahrenschon, president of the Association of German Savings Banks. Claudia Buch, a member of the German Council of Economic Experts, which advises the German government, warns: "If the ECB were to buy even more government bonds, it would assume a redistribution function. The ECB lacks both the mandate and the democratic authority to do so."

The liberal interpretation of the rules by monetary watchdogs is also problematic because it harms the ECB's credibility -- and credibility is a central bank's most important asset.

A Giant Gamble
With the Draghi plan, the Frankfurt monetary watchdogs are making a giant bet. For their plan to work, it is imperative that the Mediterranean countries recover economically in the coming years. If the desired turnaround does not materialize, the purchasing program will quickly reach dizzying proportions. The combined debt of Spain and Italy alone amounts to almost €3 trillion.

In the last four years, the ECB's total assets have almost doubled, to €3 trillion today, partly because it has made almost unlimited liquidity available to banks.

So far, the weak economic situation in the euro zone has ensured that the money boom has not led to higher prices. But this could change very quickly as soon as the economy recovers. Whether the ECB will then remember its promise to take the additional billions out of the market is debatable. The more euros are in circulation, the more difficult it becomes to get them back and keep prices under control.

Many experts are also asking themselves whether the ECB even wants this anymore. Experience has shown that the fight against inflation can be waged more effectively if it is a central bank's only objective.

Secondary Government

But over the course of the euro crisis, the ECB has assumed so many additional functions that it now seems more like a secondary government. Last fall, Draghi was personally involved in driving Italy's scandal-ridden Prime Minister Silvio Berlusconi out of office. As members of the so-called troika, ECB officials are dictating how the Greeks, the Portuguese and the Irish should implement reforms such as weakening employment protection legislation and liberalizing the taxi industry.

Soon the central bank will also assume an important role in the planned joint supervision of the financial sector in the euro zone. Then it will have a say in determining which banks should be restructured or liquidated.

What makes the issue especially problematic is the fact that the ECB's Governing Council, the central bank's key decision-making body, which includes both the six members of the Executive Board and the 17 presidents of the national central banks, lacks the democratic legitimacy to perform its new tasks. The members are not voted into office, nor are they accountable to anyone.

It's no surprise that, in light of the ECB's expanding powers, the voices of those demanding a reform of the Governing Council are getting louder. "It cannot be the case that Germany is liable for about 30 percent of the ECB's risks but has only one vote," says Michael Fuchs, deputy chairman of the conservatives' parliamentary group. "Germany must be given voting power that corresponds to its share of ECB capital."

The demand doesn't stand a chance, because putting it into effect would require a unanimous vote by all members of the currency zone to amend the treaties. Nevertheless, it also highlights a constant in the history of the efforts to save the euro: Measures that are intended to hold together the monetary union often end up driving it even further apart.

Lack of Decisiveness

This could also hold true for the new Draghi plan, as was evident last Thursday, when the Council argued over an important aspect of the plan. The debate revolved around the question of whether the ECB should recover the money it uses to buy bonds elsewhere, in order to prevent inflation. This was the approach it used in its first bond purchase program.

A large share of the central bankers from Southern Europe said that the money should be left in the market in the future. Citing academic studies, they argued that the central bank could only recover up to about €300 billion of its cash injection. In other words, if the ECB announced that it intended to collect back all the additional money it had injected into the market, it would establish this amount as an upper limit, which would harm the credibility of the bond purchase program.

The opponents, most of them from northern countries of the euro zone, cited the risk of inflation. If the ECB were to print unlimited amounts of new money to buy bonds, they argued, this would inevitably lead to rising prices.

For the normally restrained central bankers, it was a heated debate, but there was no clear outcome. The arguments went back and forth, but the central bankers could not agree on a joint position that day.

It seems safe to predict that the ECB will hardly be a paragon of decisiveness in the coming weeks and months. According to one member of the ECB Governing Council who did not want to be identified, that will cause "plenty of frustration in the coming weeks."

REPORTED BY SVEN BÖLL, MARTIN HESSE, CHRISTOPH PAULY, CHRISTIAN REIERMANN, MICHAEL SAUGA AND ANNE SEITH

Translated from the German by Christopher Sultan
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« Reply #2015 on: Aug 07, 2012, 06:34 AM »

In the USA...

 SPIEGEL ONLINE
08/06/2012 04:31 PM

Labeled a 'Wimp': Doubts Growing About Romney's Election Chances

By Gregor Peter Schmitz

Critics have called Republican presidential candidate Mitt Romney a weakling, and polls show him far behind President Barack Obama. With new suspicions emerging that he has been less than honest about his taxes, even fellow Republicans are having their doubts about him.

Lee Sheppard, a columnist with the industry paper Tax Notes, has spent decades wading through books on taxation. But even Sheppard took a few days to figure out what Rafalca was doing in the 203-page tax return of Ann and Mitt Romney.

Rafalca is a fine, dark brown, 15-year-old Oldenburg dressage horse with an estimated value of $500,000 (€404,000). Horse enthusiast Ann Romney, the wife of the Republican presidential candidate, has been a co-owner of the mare since 2006. Last week Rafalca, ridden by German-born equestrian Jan Ebeling, even competed for the United States in dressage at the London Olympics. No ordinary Olympian, the valuable horse traveled to London in a chartered jet -- in the style to which she is accustomed.

Rafalca is a pretty expensive source of entertainment, but not necessarily for the Romneys, as Sheppard discovered while poking around in their tax return. As it turns out, the political couple posted a loss of $77,731 for the mare's upkeep and transport on their 2010 tax return, just as if the horse were a business. Although the Romneys have not claimed the loss as a deduction yet, they were acting with foresight. Whenever they earn a little money with Rafalca in the future, be it through prizes or breeding fees, they will be able to carry forward the 2010 expenses as a deduction on future tax returns.

"Do we want a president who takes advantage of tax loopholes for his wife's horse hobby?" asks Sheppard, who just published a long article on the subject.

Do Americans even want Willard Mitt Romney, 65, in the White House? It's an increasingly relevant question. The Washington Post selected Romney for its "Worst Week in Washington" column after Romney's much-touted foreign trip turned into a flop. First he insinuated that the British would not be good Olympic hosts. Then, in Israel, he said that the Palestinians were economically backward because of their "culture." Finally, his spokesman verbally abused journalists in Warsaw. "Romney is perhaps the only politician who could start a trip that was supposed to be a charm offensive by being utterly devoid of charm and mildly offensive," the Daily Telegraph wrote bitingly.

Newsweek Calls Romney a Wimp

According to the Washington-based Pew Research Center, the Republican presidential candidate is now polling 10 percentage points behind President Barack Obama, as conservatives in the United States become increasingly exasperated with Romney. After all, he is campaigning against a president whose economic policies meet with disapproval among the majority of Americans. One of the reasons Romney is trailing Obama is that he persistently refuses to talk about his past and his plans for the future. He has been deliberately vague about his own proposals for America's future economic and foreign policy.

This approach prompted Newsweek to characterize Romney as a "wimp." This man avoids all risk, unlike previous Republican candidates like Ronald Reagan and George W. Bush, who both went on to win the White House. "It looks like they're banking on simply the angst about President Obama," influential conservative journalist Craig Shirley told Politico. What you've got to do is come up with a pitch, a formula, a message that is going to tell the American people, 'We've tried the last four years. I have a better plan and here's what it is.'"

Romney's biggest weakness is that he is seen as the candidate of the 0.1 percent, the richest of the rich in America. With an estimated net worth of $250 million, he is also one of the richest presidential candidates of all time.

His inability to shed this reputation is his own fault. The former businessman likes to pose while jet skiing in front of his $10-million lakeside vacation house, and he raves about how nice it is to "fire" people. Some 89 percent of Americans believe that Romney's main motivation is to help the rich, whose taxes he promises to cut considerably.

It isn't as if US citizens didn't have a weakness for rich politicians. They've voted the Kennedys and the Bushs into office, and in New York they elected multi-billionaire Michael Bloomberg as mayor. But Americans also expect full transparency from candidates for the White House, on matters ranging from marital fidelity to their health and the state of their finances.

Speculation About Unreleased Tax Returns

And that, precisely, is Romney's problem. The steadfast refusal to release his tax returns to the extent that former candidates have done has led to speculation. Mark McKinnon, a former campaign strategist for George W. Bush, said there was obviously something problematic in Romney's tax returns. And Harry Reid, the Democratic majority leader in the Senate, even insinuated that Romney hadn't paid any taxes at all for 10 years.

Romney's 2010 tax return, the only one he has released so far, offers an indication of how serious the problems could be. His investment advisors found so many loopholes that the Romneys paid taxes of only 13.9 percent on income of $21.6 million, a lower rate that the average secretary pays in the United States.

The Romneys' extensive investments abroad cover 55 pages of the joint return. Vanity Fair has learned that his former company, the investment firm Bain Capital, maintains 138 investment funds in the Cayman Islands, and that Romney has interests in 12 of them, with an estimated value of $30 million.

Romney, who doesn't tire of praising the United States as the "greatest country in the world," is proving to be less than patriotic in his investment strategies.

Until 2010, the Republican had $3 million deposited in a Swiss bank account. An investment firm in Bermuda helped him save additional taxes. Romney invested at least $1 million in Elliott Associates, a hedge fund of the worst sort. Elliott buys the bonds of dirt-poor African countries, often for very small amounts, and then tries to sue their governments for the money.

All of this can be found in the tax return Romney felt comfortable enough to release. But what secrets could be hidden in the others? More offshore accounts? Even lower tax rates? Politically sensitive investments for a candidate running on an anti-abortion platform? Bain, for example, once invested in a company that media reports claimed had helped abortion clinics dispose of fetuses.

Aggressive Investment Firm

Experts are not even ruling out the possibility of illegal transactions. In 1995, the Republican transferred assets that would now be worth $100 million to his five sons. Without reviewing the documents, it can't be determined whether he may have underreported the value of the transfers to avoid pesky taxes. It's a widespread practice, and US authorities only tend to investigate violations sporadically. "If detected, undervaluing large gifts to one's children could provoke large penalties from the I.R.S.," Columbia University law Professor Michael Graetz writes in the New York Times.

Romney remains defiant. "I'm simply not enthusiastic about giving (the Obama people) hundreds or thousands of more pages to pick through, distort, and lie about," he says. But even Romney's father George, the former CEO of a car company and former governor of Michigan, released 12 years of tax returns during his unsuccessful 1968 presidential candidacy. Ironically, in doing so he established the practice of tax transparency.

The longer the debate drags on, the more voters remember how Romney accumulated so many millions as the founder of Bain Capital, a particularly aggressive investment firm. Bain advisors repeatedly bought up healthy companies and saddled them with high levels of debt. Then the advisors collected lavish fees while the overleveraged companies went bankrupt. Rick Perry, one of Romney's rivals in the Republican primary, characterized the Bain people as "vultures."

Romney has argued that his years with the investment firm make him more qualified than President Obama to create the jobs that are so urgently needed in the United States. But now no one really believes him anymore.

The worries of his wealthy rival must seem like a gift from God to Obama. The president already published his 2011 tax return online in April, and it showed that he paid a tax rate of more than 20 percent last year. The Democrat is now a millionaire, thanks to the royalties for his memoirs. But he rarely forgets to remind voters of the modest circumstances in which he was raised.

In a recent speech, just as Romney was being photographed on jet skis,

Obama reminisced about spending vacations travelling in Greyhound buses and staying at budget motels in his youth.

Obama's advisors are using ads to paint Romney as a tax trickster. One ad features Romney doing a terribly off-key rendition of "America the Beautiful," while images of the picturesque beaches of the Cayman Islands flicker across the screen.

" The Obamans firmly believe that they've hit a nerve," writes New York Magazine, " and like a bunch of sadistic dentists, they plan on drilling away at that sucker until the patient/victim screams."

Translated from the German by Christopher Sultan

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Originally published Monday, August 6, 2012 at 3:51 AM  

NASA releases low-res video of Mars rover descent

NASA's Curiosity rover has transmitted a low-resolution video showing the last 2 1/2 minutes of its white-knuckle dive through the Martian atmosphere, giving earthlings a sneak peek of a spacecraft landing on another world.

By ALICIA CHANG and SETH BORENSTEIN
AP Science Writer  

NASA's Curiosity rover has transmitted a low-resolution video showing the last 2 1/2 minutes of its white-knuckle dive through the Martian atmosphere, giving earthlings a sneak peek of a spacecraft landing on another world.

As thumbnails of the video flashed on a big screen on Monday, scientists and engineers at the NASA Jet Propulsion let out "oohs" and "aahs." The recording began with the protective heat shield falling away and ended with dust being kicked up as the rover was lowered by cables inside an ancient crater.

It was a sneak preview, since it'll take some time before full-resolution frames are beamed back depending on other priorities.

The full video "will just be exquisite," said Michael Malin, the chief scientist of the instrument.

NASA celebrated the precision landing of a rover on Mars and marveled over the mission's flurry of photographs - grainy, black-and-white images of Martian gravel, a mountain at sunset and, most exciting of all, the spacecraft's white-knuckle plunge through the red planet's atmosphere.

Curiosity, a roving laboratory the size of a compact car, landed right on target late Sunday after an eight-month, 352-million-mile journey. It parked its six wheels about four miles from its ultimate science destination - Mount Sharp, rising from the floor of Gale Crater near the equator.

Extraordinary efforts were needed for the landing because the rover weighs one ton, and the thin Martian atmosphere offers little friction to slow down a spacecraft. Curiosity had to go from 13,000 mph to zero in seven minutes, unfurling a parachute, then firing rockets to brake. In a Hollywood-style finish, cables delicately lowered it to the ground at 2 mph.

At the end of what NASA called "seven minutes of terror," the vehicle settled into place almost perfectly flat in the crater it was aiming for.

"We have ended one phase of the mission much to our enjoyment," mission manager Mike Watkins said. "But another part has just begun."

The nuclear-powered Curiosity will dig into the Martian surface to analyze what's there and hunt for some of the molecular building blocks of life, including carbon.

It won't start moving for a couple of weeks, because all the systems on the $2.5 billion rover have to be checked out. Color photos and panoramas will start coming in the next few days.

But first NASA had to use tiny cameras designed to spot hazards in front of Curiosity's wheels. So early images of gravel and shadows abounded. The pictures were fuzzy, but scientists were delighted.

The photos show "a new Mars we have never seen before," Watkins said. "So every one of those pictures is the most beautiful picture I have ever seen."

In one of the photos from the close-to-the-ground hazard cameras, if you squinted and looked the right way, you could see "a silhouette of Mount Sharp in the setting sun," said an excited John Grotzinger, chief mission scientist from the California Institute of Technology.

A high-resolution camera on the orbiting 7-year-old Mars Reconnaissance Orbiter, flying 211 miles directly above the plummeting Curiosity, snapped a photo of the rover dangling from its parachute about a minute from touchdown. The parachute's design can be made out in the photo.

"It's just mind-boggling to me," said Miguel San Martin, chief engineer for the landing team.

Curiosity is the heaviest piece of machinery NASA has landed on Mars, and the success gave the space agency confidence that it can unload equipment that astronauts may need in a future manned trip to the red planet.

The landing technique was hatched in 1999 in the wake of devastating back-to-back Mars spacecraft losses. Back then, engineers had no clue how to land super-heavy spacecraft. They brainstormed different possibilities, consulting Apollo-era engineers and pilots of heavy-lift helicopters.

"I think its engineering at its finest. What engineers do is they make the impossible possible," said former NASA chief technologist Bobby Braun. "This thing is elegant. People say it looks crazy. Each system was designed for a very specific function."

Because of budget constraints, NASA canceled its joint U.S.-European missions to Mars, scheduled for 2016 and 2018.

"When's the next lander on Mars? The answer to that is nobody knows," Bolden said in a recent interview with The Associated Press.

But if Curiosity finds something interesting, he said, it could spur the public and Congress to provide more money for more Martian exploration. No matter what, he said, Curiosity's mission will help NASA as it tries to send astronauts to Mars by the mid-2030s.

---

to view the video:

http://mars.jpl.nasa.gov/msl/multimedia/videos/

Video: http://www.youtube.com/watch?vUcGMDXy-Y1I&featureyoutu.be

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Originally published Monday, August 6, 2012 at 5:16 PM
    
India outraged over Sikh killings

Protests and prayer vigils were planned as grieving Sikhs across India called for strong U.S. gun-control laws after a gunman killed six Sikhs on Sunday in their temple.

By Mark Magnier
Los Angeles Times

NEW DELHI —

India reacted with grief and outrage Monday at the news that at least six Sikhs were killed when a gunman attacked them the day before in their Wisconsin temple as they prayed and prepared food.

Indian Prime Minister Manmohan Singh, himself a Sikh, said in a statement that he was shocked and saddened by the news and extended his condolences to the families of the victims.

"India stands in solidarity with all the peace-loving Americans who have condemned this violence," he said, adding that he hoped "such violent acts are not repeated in the future."

The motive of Wade Michael Page, a U.S. Army veteran who opened fire on worshippers at a Sikh temple, in Oak Creek, Wis., and was shot and killed by police, was not clear.

At the Golden Temple in Amritsar near the Pakistan border, one of the Sikh religion's most sacred shrines, officials said they were planning a three-day prayer vigil in honor of the victims.

"We are still in shock after the incident," Avtar Singh, the president of the trust that runs the temple, told local media.

Sikh men all take the name Singh, meaning lion. Protesters Monday in the Indian state of Jammu and Kashmir blocked a highway and waved banners calling for stronger U.S. gun laws. And Sikh parties pledged to mount a peaceful demonstration in front of the U.S. Embassy in New Delhi, as American Ambassador Nancy Powell visited New Delhi's largest Sikh gurdwara in a show of solidarity over what she described as a "ghastly act of violence."

Giani Gurbachan Singh, the head priest of Akal Takht, the highest Sikh temporal seat, called on Sikhs in the United States to adopt security measures at the U.S. temples, including installing closed-circuit cameras.

"This is a security lapse on the part of the U.S. government," he said, according to the Press Trust of India news agency. He called for prayers for the victims to be said at Sikh temples across India and ordered a Sikh delegation sent to the United States to investigate the attack.

The Indian government rushed its consul general from Chicago, N.J. Gangte, to Wisconsin. India's foreign minister, S.M. Krishna, said the government was awaiting the results of the U.S. investigation, and he criticized the gun culture in the United States.

Secretary of State Hillary Rodham Clinton, traveling in Africa, spoke by phone Monday with her counterpart, Krishna, said State Department spokesman Patrick Ventrell. He did not immediately have details of the conversation.

Ambassador Powell paid her respects at a Sikh temple in New Delhi and assured the worshippers there that her government stood with them. Powell expressed condolences and support for thorough investigation into "this horrific crime," Ventrell said in Washington.

In the northern city of Jammu, dozens of Sikhs gathered to protest the shooting, shouting slogans and carrying placards that read, "Ban open sale of weapons in U.S.A." and "Shame Shame Shame."

"It is very shocking. A country like the U.S.A., which says it is a superpower, could not protect its own people," said T.S. Ahluwalia, a marketing executive, as he walked into a Sikh temple in New Delhi.

India itself has a growing problem with gun violence, and ranks second worldwide in absolute numbers of civilian guns at 40 million, according to gunpolicy.org, a website hosted by the School of Public Health at the University of Sydney in Australia.

However, guns and ammunition are strictly regulated in India, and their numbers and use pale beside America's estimated 270 million firearms. India has fewer than four guns for every 100 people, compared with about 89 guns per 100 Americans, the world leaders.

"The gun culture in America is a bit disturbing," said Rohan Sabharwal, 23, a Sikh dressed in an orange turban who was shopping in a Delhi market. "It's a sad, regrettable thing to have this happen."

Sikhs for Justice, which describes itself as a U.S.-based human-rights advocacy group, said in a statement that it was donating $10,000 to the badly wounded Wisconsin police officer who risked his life in the attack and likely saved many other Sikhs. The officer was taken to a Milwaukee hospital and is expected to survive.

Since Sept. 11, 2001, Sikhs, who wear long beards and turbans to cover their uncut hair, and other South Asians have been the victims of mistaken identity, starting just four days after the World Trade Center attack when a Sikh gas-station owner in Mesa, Ariz., was taken for an Arab Muslim and killed.

Since then, according to the Sikh Coalition, a New York-based activist group, there have been some 700 cases of random violence, killings, vandalism, bullying, beatings and intimidation against the Sikh community in the United States.

Arvinder Kaur, an English professor at Post-Graduate Government College for Girls in Chandigarh, said her American Sikh relatives don't wear turbans so they are better able to blend in.

"But I'm concerned for them," she said, although she's not going to cancel a planned trip to the United States. "We can't be scared. We can't let these people get away with this kind of discrimination."

The Sikh's headgear also has created misunderstandings with U.S. airport security. In late 2010, a senior Indian diplomat was told he had to remove his turban, a request that Sikhs consider offensive. After a 30-minute standoff, the diplomat's identity was verified, and he was allowed to proceed without a body search, but the incident made headlines in India.

Founded in 1469 by Guru Nanak, who preached monotheism and equality, in reaction to the Hindu caste system, the religion grew more militant after fights with India's Muslim Mogul rulers. The 10th and final founding leader, Guru Gobind Singh, commanded Sikhs to carry a kirpan, or curved ceremonial dagger.

Sikhs at one point controlled a powerful kingdom in what is today western India and parts of Pakistan. The British captured it in a bloody war in 1849. Around that time, the British army formed a Sikh regiment that still exists in the Indian military. Although Sikhs comprise about 2 percent of India's population, they make up a far higher percentage of the military.

Sikhs complained of discrimination after the nation achieved independence in 1947, and extremist factions grew in power. In 1984, Sikh extremists demanding the formation of a new nation of Khalistan holed up in the Golden Temple before being forced out by Indian forces with tanks; about 1,200 people died, mostly Sikhs.

Several months later, two Sikh security guards for Prime Minister Indira Gandhi shot and killed her in retaliation, prompting bloody anti-Sikh riots across Delhi and other cities. The Sikh uprising was crushed in much-criticized police actions across Punjab in the 1990s.

In addition to Prime Minister Singh, Sikhs hold some of India's most important positions: Army Chief Gen. Bikram Singh; and Montek Singh Ahluwalia, head of the financially powerful planning commission, are all Sikh.

They are a majority in the agriculturally crucial province of Punjab, known as the breadbasket of India, which now is ruled by the Sikh-dominated Akali Dal party. Their temples, or gurdwaras, often run free kitchens giving food to all comers. They are sometimes found on street corners during hot, summer months handing out cool drinks of ice, milk and rosewater to passing drivers.

Includes material from The Associated Press

**************

Sikh temple president died trying to ward off gunman

By Agence France-Presse
Monday, August 6, 2012 16:59 EDT

OAK CREEK, Wisconsin — When a gunman burst into the Sikh temple he’d devoted his life to building in this small Wisconsin town, Sadwant Singh Kaleka grabbed the only weapon at hand, a blunt ceremonial knife.

The confrontation didn’t last long. The gunman — identified by police as 40-year-old army psy-ops veteran Wade Michael Page — mercilessly cut down the 65-year-old temple president with shots from a 9mm handgun.

But Kaleka slowed the attacker just long enough for the women preparing the afternoon’s meal to hide in a pantry and for the children attending Sunday school downstairs to escape the gunman’s deadly gaze.

“He was a hero through and through,” Kaleka’s son Amardeep said Monday.

“There couldn’t have been a better place for him to lay to rest.”

Amardeep Kaleka was driving to temple on Sunday morning when his phone rang with the horrible news.

Another man had grabbed his bleeding father and dragged him into a nearby bathroom where they locked the door and prayed for help.

“He was telling me your father’s at my feet — we need to get an ambulance here,” Kaleka told reporters.

The gunman had already shot at least one person in the parking lot. He killed five more — including Sadwant Singh Kaleka — before heading back outside to ambush the police.

Lieutenant Brian Murphy, 51, was the first to arrive just three or four minutes after the first call came in for help.

He got out of his car and rushed over to check on a person he saw laying on the ground in a pool of blood.

But the gunman was lying in wait and shot Murphy eight or nine times “at very close range,” Oak Creek police chief John Edwards told reporters.

Other officers were close behind and shot Page after he refused to lay down his weapon — a handgun that was legally obtained — and opened fire upon them, striking two of the police cruisers.

It took a few moments for the officers to realize Murphy was hurt.

When they rushed to his aid, he tried waving them off “and told them to go into the temple to assist those in there,” Edwards said.

Murphy and two other shooting victims remained in critical condition Monday as officials worked to discover a motive.

The FBI has taken the lead because the shooting is considered a “possible domestic terrorism” incident. Page had ties to white supremacist groups.

Kaleka and his family came to the United States from India in 1982. He built a successful business, and devoted every extra dollar he earned into building the Oak Creek temple.

Parishioners described him as the kind of man who, if you called him at two in the morning to say a light had gone out at the temple, would be there at 2:15 am to change the bulb.

He was remembered as a easy going man who never lost his cool or held a grudge. A man who was always ready to help anyone and everyone. A handyman who loved life and could talk your ear off.

“As I saw the picture of the man who took away my father’s life — you look at his face and it’s full of hollow emptiness — a dark void,” Amandeep Kaleka said after police released the photo at a press conference.

“I feel a lot of sadness towards that individual… I’m not going to replace it with anger.”

He hopes that this shooting will be an opportunity for Americans to come together and have an honest conversation about race, religion and how to build more tolerance in a nation of immigrants.

Kaleka’s nephew echoed the sentiment.

“When these things happen we learn how hateful and ignorant people can be. What we want to promote is education and community,” said 29-year-old Kanwardeep Singh Kaleka.

“This is part of our faith — love and understanding no matter who you are.”

Kanwardeep Kaleka was so angry when he first heard of the shooting that he slammed his fist into the wall.

But he knew that anger just makes things worse and did not want to be a victim to the emotion which drove the shooter to such a horrific act.

So even though he doesn’t normally wear a turban, he tied a dark blue one around his head and stood shoulder to shoulder with dozens of other Sikhs as they sought answers at the police station.

“I only hope our community grows stronger. I hope we’re able to show our love and still keep our doors open to everyone,” Kanwardeep Kaleka said.

**************

Missouri mosque destroyed in suspicious fire

By David Edwards
Monday, August 6, 2012 12:23 EDT

For the second time in about a month, a mosque in Joplin, Missouri caught fire on Monday, but this time it was burned to the ground.

KODE first reported that firefighters responded to a fire at the Islamic Center of Joplin, but the flames quickly spread and engulfed the building. There were no reports of injuries.

The fire marshal has been called to investigate, the Jasper County Sheriff’s Office said.

The FBI recently announced a $15,000 reward for information leading to the arrested of a man is who suspected of arson after a July 4 fire was set on the roof of the same building. Surveillance video captured footage of a man throwing a burning object onto the roof.

“We just take this as a test from God,” Imam Lahmuddin, the mosque’s imam, told The Joplin Globe on Monday. “This is the month of Ramadan. We are fasting we are not supposed to get angry, we are not supposed to say anything bad.”

“But that’s not only for this month, but for every day of our lives. In Ramadan we are more careful in guarding our tongues, not to say anything inappropriate. We come here during the month of Ramadan more often. Last night we left at about 11:20 p.m. when we finished final prayers and we were supposed to get in here about 5 a.m. for the morning prayer. But God has a plan.”

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Coloradoans likely to vote in November on Citizens United ruling

By Eric W. Dolan
Monday, August 6, 2012 16:43 EDT

Public Citizen, Common Cause and U.S. PIRG announced Monday that more than 100,000 signatures had been collected for a Colorado ballot measure calling for the controversial Citizens United ruling to be overturned.

“Our elected officials are supposed to serve the voters, not the highest bidder,” Aquene Freechild, the senior organizer of Public Citizen’s Democracy Is For People Campaign, said in a statement. “Since the U.S. Supreme Court’s Citizens United decision, which allows corporations to spend unlimited amounts of money to influence elections, Super PACs and other independent groups have spent huge amounts, in some cases outspending individual campaigns by a ratio of 2-to-1.”

The 100,000 signatures in support of the ballot measure is well over the 86,105 valid signatures needed to qualify for the Colorado ballot this November. Supporters of the effort included Colorado Common Cause, Colorado Fair Share, CoPIRG (Colorado Public Interest Research Group), Free Speech for People, Colorado Progressive Coalition, CleanSlateNow.org, Colorado 350.org, People for the American Way, Public Citizen, Communications Workers of America, and the Colorado Center on Law and Policy.

The ballot measure, Initiative 82 (PDF), would urge Colorado’s congressional delegation to support an amendment to the U.S. constitution that allows Congress to limit outside campaign spending. The ballot measure says the amendment is necessary to “ensure that all citizens, regardless of wealth, can express their views to one another and their government on a level playing field.”

The Supreme Court’s 2010 decision in Citizens United held that limits on independent political contributions by corporations and unions violated the First Amendment, because political donations were a form of political speech. The ruling paved the way for Super PACs, which can receive unlimited sums of money to influence elections. A constitutional amendment is the only way to override the ruling.

“Citizens United-enabled outside group spending, much of it secret, is devoted overwhelmingly to negative attack ads,” Freechild added. “The funds come from a very small cluster of people; a recent report found that just 47 people, each giving at least $1 million to Super PACs, accounted for more than 57 percent of the money raised by Super PACs during this current election cycle.”

Last week, Massachusetts became the seventh state to pass a symbolic resolution condemning the Citizens United ruling. Massachusetts joined California, Hawaii, New Mexico, Vermont, Rhode Island and Maryland in calling for a constitutional amendment. More than 280 cities, most recently Chicago, have approved similar resolutions.

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HHS includes trans people in health care rule that bans sex discrimination

By Kay Steiger
Monday, August 6, 2012 15:22 EDT

The Department of Health and Human Services (HHS) clarified recently that the much-touted rule that says health insurance companies can not discriminate based on sex also extends to trans people.

“This anti-discrimination law, enacted as part of the Affordable Care Act, creates an important new tool to combat anti-LGBT and especially anti-transgender discrimination in health care,” said National Center for Transgender Equality (CTE) Executive Director Mara Keisling in a press release.

This clarification determines that section 1557 of the Patient Protection and Affordable Care Act, which “extends federal nondiscrimination protections to the health care system for the first time,” according to an analysis by left-of-center policy and advocacy organization the Center for American Progress.

Any trans person who experiences gender discrimination at a hospital, clinic, doctor’s office or other medical center that accepts federal dollars through Medicare or Medicaid can file a complaint with HHS and “expect to have those complaints taken seriously,” according to the CTE press release.

The Equal Employment Opportunity Commission (EEOC) ruled this spring that gender identity was covered under Title VII of the Civil Rights Act, which prohibits sex discrimination, offering unprecedented protections for trans people under existing employment discrimination law.

When the EEOC issued its ruling in April, Masen Davis, head of the Transgender Law Center, told LGBT newspaper Metro Weekly, “Given the incredibly high rate of employment discrimination facing transgender people, this is incredibly significant for us. … This creates a whole new fabric of legal support for our community.”

And the new HHS ruling is another thread in that fabric of support, but should a less trans-friendly administration come into power, such a ruling on sex discrimination could be easily reversed.

CTE’s Keisling said, “A law explicitly banning health care discrimination based on gender identity is the next step. Our community needs medical providers to know what their obligations are and passing a law is the strongest and clearest way to do that.”

You can see the letters sent to HHS requesting a clarification here, and HHS’ response here.
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Another Tibetan sets himself alight in China

By Agence France-Presse
Monday, August 6, 2012 17:37 EDT

BEIJING — A Tibetan man in southwest China set himself on fire Monday, the latest in a series of shocking protests against Chinese rule, an overseas human rights group said.

The man set himself alight along the main street of Ngaba which sits on the Tibet plateau in a Tibetan-inhabited area of China’s Sichuan province, the London-based Free Tibet said in a statement.

Local government officials in the town, known as Aba in Chinese, were not immediately available for comment.

Security personnel quickly extinguished the flames and took the man away in a security vehicle, the statement said.

He was believed to be still alive, although his upper body was badly burned, it added.

More than 40 people have set themselves on fire in recent months in Tibetan-inhabited areas of China in protest at repressive government policies, the group said, with most incidents linked to monks or former monks of Aba’s Kirti monastery.

Tibetans have long chafed under China’s rule over the vast Himalayan region, charging that Beijing has curbed religious freedoms and their culture is being eroded by an influx of Han Chinese, the country’s main ethnic group.

Beijing, however, says Tibetans enjoy religious freedom and have benefited from improved living standards brought on by China’s economic expansion.

“As the world’s media focuses on the discipline of Chinese athletes, Chinese state repression is driving Tibetans to set fire to themselves under a media blackout,” said Free Tibet director Stephanie Brigden.

“China is competing in the Olympic Games despite having broken every commitment on human rights made during its bid for the 2008 Games.”

The latest incident comes after a young Tibetan man who set himself alight in June died from his injuries on Wednesday last week, the Tibetan Centre for Human Rights and Democracy (TCHRD).

Prior to that two men set themselves on fire in front of the Jokhang temple, a renowned Buddhist temple in the centre of Lhasa, on May 27 in the first such incident to hit the city.

Lhasa was the scene of violent anti-Chinese government protests in 2008, which later spread to other areas inhabited by Tibetans, and authorities have kept the city under tight security since then.
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Russia prosecutors seek three years’ jail for Pussy Riot

By Agence France-Presse
Tuesday, August 7, 2012 6:12 EDT
 
Members of the all-girl punk band "Pussy Riot" Nadezhda Tolokonnikova (centre), Maria Alyokhina (right) and Yekaterina Samutsevich (left) are seen in court in July. Alyokhina collapsed in court Wednesday during the band's high-profile trial for performing an anti-Putin song in a Moscow church. The group has complained about a lack of food and sleep during the trial. (AFP Photo/Natalia Kolesnikova)
 

Russian prosecutors on Tuesday asked for a three year jail sentence for the three female members of Pussy Riot, saying their crime of singing an anti-Vladimir Putin song in a church was so “severe” they deserved isolation.

“This crime is severe and the prosecution considers that their correction is only possible in conditions of isolation from society and the punishment needed must be a real deprivation of freedom,” the state prosecutor told the court.
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« Reply #2018 on: Aug 07, 2012, 06:58 AM »

Nigeria school offers hope for young women fleeing abusive marriages

By Agence France-Presse
Tuesday, August 7, 2012 6:33 EDT

The clattering sewing machines at this northern Nigeria school offer hope of a better life for a group of young women who fled abusive marriages that for some prove inescapable.

In Nigeria’s deeply impoverished north, which has some of the worst gender disparities in the world, millions of girls who never learned to read or write are pushed into marriage in their early teens, a recent study said.

The Tattalli Free School in the city of Kaduna was set up as a refuge for those who, overcoming fear and the pressures of patriarchal society, left their husbands when the relationships became unbearable.

“I was married and pregnant and my husband was at home doing nothing,” said 17-year-old Bilkisou, the mother of a young girl.

“At times he would beat me or shout at me. When I went to report him to my father, he sent me back,” she added.

She left with her baby strapped to her back and came to Tattalli, where she can learn skills ranging from dressmaking to beadmaking in hopes of earning enough money to care for herself.

The school’s founder, Saratu Aliyu, said she wanted to give vulnerable young women a chance to learn a marketable skill and save them from having to sell themselves for survival.

“You find them going into prostitution, you find them getting into wrong hands,” said Aliyu, who funds the school with her own money.

“So many things could happen to them because they cannot help themselves, and anybody who is in need of money, anything that comes your way, you try your hands at it.”

The roughly 150 students at Tattalli should, in principle, have had access to public primary and secondary education, which is free in Nigeria.

But in reality an education brings extra costs that many families cannot satisfy. Some teachers are even said to demand money to pass students.

“A married woman is one less mouth to feed,” Rukayyat Adamu, the Tattalli school’s director.

The problem is especially acute in predominantly Muslim northern Nigeria, where sharia (Islamic law) exerts a powerful influence.

In the north, more than two-thirds of girls aged 15-19 are unable to read a sentence, compared to less than 10 percent in the southern part of the country, according to a British Council report published in May.

Half of all women in the region are married by the age of 16, the report further said, while the Global Campaign for Education estimates that 50 percent of northern girls are not even enrolled in school.

Worldwide, Nigeria ranks 118 out of 134 countries on the Gender Equality Index, the British Council study said.

Kaduna is also one of several northern cities hit hard by the radical Islamist group Boko Haram, responsible for scores of attacks across the region in recent months.

A suicide blast at a church last month sparked sectarian mob violence and Kaduna state, where Kaduna city is the capital, was placed under a tight curfew.

Analysts say the prevailing security crisis has further damaged the region’s already feeble economy.

“Men who become frustrated by inability to take care of their families turn their wives to punching bags when they complain,” said Aliyu.

At the school she founded five years ago, gathered in a small shaded courtyard, a group of teenagers, including Mansoura Sani, were learning how to make dresses.

She said that not long after her 10th birthday her family promised her to a much older man, who already had two wives.

“His older children fought and his wives often made fun of me,” she recalled.

She ran to the home of a cousin in Kaduna and later made her way to Tattalli, and said she hopes the education she is receiving may help her marry again.

“This will make a difference because men appreciate educated women. They accord them more respect,” she said.

“I could also be independent.”
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« Reply #2019 on: Aug 07, 2012, 07:02 AM »

 SPIEGEL ONLINE
08/06/2012 04:00 PM

Italy's Lost Generation: Crisis Forces Young Italians to Move Abroad

By Fiona Ehlers in Rome

The situation in Italy is getting increasingly desperate as the euro crisis continues. But it is the country's youth who are the biggest losers. Many young people, unable to get proper jobs and still living with their parents, are forced to move abroad in hopes of a better life.

On a hot summer's stay in Rome, on the hills overlooking the city, Europe's top politicians are meeting once again. They stand in a Medici villa, under a wall fresco of Polyphemus, a one-eyed giant from Greek mythology, and declare how they intend to save Europe: with "growth" and "discipline," and by doing their "homework." There is little sign of any real vision.

The future they describe sounds gloomy; it's full of promises and reassurances. But one number is painfully concrete, and for a second it reverberates throughout the reception hall: "36 percent" -- Italy's current youth unemployment, a record high. Italian Prime Minister Mario Monti utters the number, adding that he finds it "unacceptable."

After the meeting draws to a close, the four leaders -- Monti, German Chancellor Angela Merkel, French President François Hollande and Spanish Prime Minister Mariano Rajoy -- assemble for a family photo in the labyrinth garden of boxwood hedges. The average age of the four Europeans posing in front of Roman statues is 60.25 years. Young Europeans don't trust such photos or such politicians. After all, it's their future that's at stake.

A Symbol for Europe

That same evening, a large crowd gathers down in the city at the old slaughterhouse in the Testaccio district, where there's a neighborhood center with organic food markets and businesses for ethically correct lifestyles. "L'altra economia," they call it -- the parallel economy.

Two filmmakers, Gustav Hofer and Luca Ragazzi, set up their projection screen. They are here to show their film "Italy: Love It or Leave It," which hasn't been shown much in Italy yet. It deals with a highly personal issue, one which is also political: whether, as a young Italian, one should leave the country or not. It's about Italy's future.

The film has been a surprise success internationally. For months, it's been screened at film festivals around the world, is always sold out, and always the audience's favorite. During the follow-up discussions, Hofer, 36, and Ragazzi, 41, become complaint boxes for expat Italians who are suffering bouts of nostalgia.

The film was shot two years ago, when then-Prime Minister Silvio Berlusconi was still governing the country. They didn't plan it this way, but now, in the midst of the current financial and economic crisis, it appears they asked the right questions in the right place. "Italy has become a symbol," says Hofer: "Here the future of a generation determines what's in store for all of Europe."

Helicopters are circling in the evening sky as Merkel, Hollande and Rajoy fly back to their countries. In the film, the journey through Italy begins. A monk, a poet, a gay politician, striking workers and protesting women search for reasons to remain. We see Berlusconi during an election campaign, cleavage-obsessed television shows and plenty of gloom. One wonders whether it is still OK to like Italy.

'I Have No Choice'

Then a young woman from the audience stands in the light of the credits. It's no longer a question of leaving or staying, she says. She has given Italy so many chances, she says, but "Italy didn't want me." Her voice seems to crack as she recounts that she's going to move to London in early August. "For ever," she says. "I have no choice."

The next day, this woman, Alessandra Bertolini, is riding her sky-blue bicycle through the streets of Rome. She says that she will miss the sound of water splashing in the Roman fountains, the smell of food in the narrow streets and the rattling of the motorini scooters. She already suffers from pangs of nostalgia -- a very Italian quality.

Bertolini is 36 years old and still lives with her parents. She fits the cliché of the Italian boomerang kid -- no matter how hard she tries, she always returns to the family abode.

She studied architecture, graduated with top grades, was a young entrepreneur, and managed construction projects. Most recently, she was employed by an engineering firm. She hasn't been paid for the past six months and her employer is on the verge of going bankrupt. She applied to over 200 Italian companies, but didn't receive a single reply.

But suddenly, last week, things happened very quickly. She got three job offers, from Dubai and London, with twice her current salary. "They liked what so many people like about us Italians," says Bertolini, without sounding at all boastful. "We're flexible and resilient, and we've proven that we master 'l'arte di arrangiarsi'" -- the art of somehow getting by. She gets on her bike again and says that she sees it as a personal tragedy that she has to go at a time "when my country needs me most."

Paid Peanuts

The latest figures are indeed unsettling. Young people in Italy are not seen as a resource, but as a burden. The unemployment rate among young people under the age of 25 hovered for a long time around 20 percent. Now, it's shot up to 36 percent. This is the figure that Prime Minister Monti finds so alarming. In the south, in a number of cities in Sicily and Calabria, it's over 50 percent -- as high as in Spain and Greece.

This has to do with Italy's extremely unfair labor market, which protects 50- to 60-year-olds with permanent, nearly irrevocable contracts. By contrast, young people are paid peanuts, strung along with fixed-term contracts, and are the first to be fired in times of crisis. Indeed, it's no wonder that two out of three Italians under the age of 35 are mammoni, mama's boys who still live with their parents. With starting monthly salaries under €1,000 ($1,250) and shockingly high rents, they simply have no choice.

Young people remain benchwarmers -- perpetual interns who are seen as not capable of doing much of anything. "There's no hunger for the future," writes the liberal newspaper La Stampa. The generation of their parents should take a step back -- that would be "the only real gift" to the nation's youth, writes the newspaper. Or, in the words of national soccer squad coach Cesare Prandelli: "Italy is an old country with old ideas. Perhaps we're simply not yet ready to win."

Italians love their country, but they're also eternally dissatisfied with it; there's a lot of grumbling and not much get-up-and-go. The future is everywhere, they say -- just not back home. Indeed, a phenomenon can be observed in Italy that is normally more typical of developing countries: the exodus of the elite, la fuga di cervelli or brain drain. Up to 60,000 young Italians leave the country every year, and it's estimated that half of Italy's 100 leading academics and scientists are working abroad.

Moving to a Different Universe

Sandra Savaglio was one of the first to go. She fled "to other universes" -- first to the US, then to a Max Planck research institute in Bavaria. These days, she only comes to Italy for the scenery, during vacations, or to attend international conferences, such as now in July.

Savaglio, a graceful, blonde southern Italian, is standing in front of a deserted abbey in Tuscany in the pitch-black night. She briefly turns her head away from looking at the stars and says that she owes her career to the obstacles that were placed in her path. In Italy she would never have come this far, she contends.

Savaglio is a super brain, an astrophysicist who ranks among the best in the world. She left because she ran into the difficulties that tens of thousands of young Italians so often experience here. The only difference is that she had the courage to tell an American journalist about it. She once proudly gazed from the cover of Time magazine with the headline: "How Europe Lost Its Science Stars." That was in 2004, when she was 36. Italians react sensitively to criticism from abroad. Today, Savaglio is famous in Italy -- for publicly criticizing her own country.

When she worked at the Monte Porzio Observatory near Rome, she was the girl from Calabria, who was promising but unimportant. She left because a superior said: "You want to publish your results? Fine, but only under my name."

To make matters worse, Savaglio had been granted a permanent position, but this was challenged in court by a father who felt that his daughter deserved the job. Four years later, the court ruled in favor of Savaglio, but she had long since taken a position at Johns Hopkins University in Baltimore. Three years ago, she and her colleagues made a discovery that was a worldwide sensation. At the Max Planck Institute for Extraterrestrial Physics in Germany, she provided proof that galaxies in the early universe were significantly more highly developed than previously assumed.

Savaglio has long since put Italy behind her, but she's concerned about the young generation. "Energy is there," she says, "but it's not amassed. Italy lacks the flow, the exchange of ideas and people. Everyone leaves, no one moves there."

Fleeing Italy with a Laptop
Italy is losing an entire generation, the young elite. In the 1950s and 1960s, unskilled workers with cardboard suitcases traveled from southern Italy over the Alps. Today, graduates with diplomas and laptops are fleeing the country. This elite has grown up with a national debt that has now reached €2 trillion, along with a culture of corruption and nepotism.

Members of the "Generazione Mille Euro" are well educated, but they can't secure a loan from a bank and they can't finance their own apartment. These young people aren't making waves yet; they seek to emigrate rather than put up resistance. But if the 50- to 60-year-olds don't soon make room for them, a generational conflict could arise, with enraged young people in precarious employment situations taking to the streets to protest complacent older Italians who have become entrenched in their jobs.

Working in a call center as a typical job has become one symbol of this generation, while no-frills airlines as a means of escape have become the other. In the country's Goethe Institutes, German language courses have long been dubbed "get-me-out-of-here courses" and are fully booked. In Oxford there's a think tank in which young Italian academics ponder the intricacies of Roman politics. Why doesn't anyone bring them back with job offers and tax incentives?

Glorious Past

Italians have two explanations for their dilemma: gerontocrazia, rule by the elderly, and raccomandazioni, recommendations. Both ensure that jobs are passed on to friends and family. Universities -- an educational institution that was invented here and helped establish Italy's worldwide fame -- have become intellectual wastelands, not least because of the antiquated concorsi, the selection process for senior positions at schools and universities, in which applicants are crammed into gymnasiums and forced to write essays like elementary school students.

The country is also suffering from a cultural decline, says Savaglio, the physicist. There is an almost adolescent form of anarchy, in which motorists don't stop at red lights because no one does, as well as a paralyzing fatalism; it's always been like that and there's not much you can do about it. "We wallow in our glorious past," she says, "but what good are the old Romans if the buses aren't running?" What is missing, she argues, is respect and a sense of civic responsibility -- fellow citizens who feel not only responsible for themselves, but also for the common good, the "res publica".

Instead, Italians are fleeing abroad. For the last three to four years, the exile community has been rapidly growing in Berlin. Thousands of young Italians move to the German capital every year. There's a cultural scene, with artists and filmmakers who help newcomers settle into la deutsche vita. During the Euro 2012 European soccer championship, they gathered at the Kulturbrauerei, a former brewery that has been converted into a center for art and culture. The get-together was organized by Andrea D'Addio, 30, a Rome native who is a blogger and the founder of a soccer team in the expats' favorite Berlin neighborhood, Prenzlauer Berg.

Viewed from Berlin, says D'Addio, Italy seems truly dreary and inflexible. He says there's a sense of relief when you step off the plane at Schönefeld Airport: a feeling that you're finally free and can live without the pressure to be a success, and without your parents, in a place where respect and loyalty count. Yes, says D'Addio, he's burned his bridges with Italy. After three years in Berlin, he says that the distance to Rome has become insurmountable. No, he says, he's not plagued by a guilty conscience for not being there to help overcome the crisis in his home country.

Bright Ideas

Barbara Labate is 35 years old, a dark-haired Sicilian who is one of the few with the courage to return. She is standing in front of a white brick building in the town of Catania. Mount Etna towers against a cloudless sky behind her.

Labate came back from New York after the Lehman Brothers investment bank went bankrupt in September 2008. Labate had studied at Columbia University, just like her aunt, a famous archaeologist who said that she never wanted to return to broken-down Europe.

The niece, however, wanted to give it a try. She came with religious icons that her mother placed in her suitcase before every trip -- Saint Barbara and Madonnas -- to protect her daughter.

Labate made mobile downloads out of the devotional objects. She knew she had made it when she was interviewed by CNN in front of St. Peter's Basilica four years ago on Christmas Eve. It turns out that the Vatican thought Labate's pictures were "tasteless." She couldn't have wished for better advertising. From then on, she stuck with her idea of bringing Italian traditions into the modern age.

Today, Labate has a new business idea, offices in Milan and Catania, 10 employees and a quarter of a million customers. Her big breakthrough was a method for combating the crisis, and the idea came to her while she was eating in an obscenely expensive delicatessen in New York's SoHo neighborhood. US companies offered her a great deal of money for her business idea, but the young entrepreneur decided that Italy needed her more urgently.

Her invention is called "Risparmiosuper," the super discount market. It's a portal that compares grocery prices and compiles shopping lists for customers, allowing them to save a lot of money. Italy's leading business newspaper has just voted it the best innovation of the year, and she's already exploring the next highly promising market -- Greece.

Labate says that Italians lack seriousness and speed, and that they have an allergic reaction to everything new. She groans over the endless bureaucratic formalities, the record tax rate of up to 55 percent and 60-year-old CEOs who don't know what Facebook is. She longs for Silicon Valley, where she sometimes flies because she "accomplishes more in one month there than in Italy in half a year." Why did she nevertheless return? "Because Italy's crisis is an opportunity," she says, and because it's more satisfying to see lemons growing on your own soil, no matter how barren it may be. "Anyone who remains abroad only clears the stage for those from whom he once fled."

'Finish Your Studies and Go!'

Even Pier Luigi Celli, the director general of Rome's LUISS University -- one of the best in the country -- has joined the fray. In late 2009, he wrote an open letter to his son. La Repubblica newspaper published it, and this prompted a nationwide debate. The head of an elite school, of all people, advised his son to head abroad. "Your ambition, diligence and sense of justice," wrote the father, no longer count in this quarrelsome, mediocre country. "Take a look around, Italy doesn't deserve you. Finish your studies and go!"

Today, two and a half years later, Celli sits at his desk in Rome and sounds disappointed. He says that his son has remained in Italy. Mattia, he admits, is just as stubborn as his sister, who became a nun and now lives in a convent. Celli junior is now 26 years old, has completed his engineering studies, and wants to work in the aerospace industry. But he's still stuck on the ground as one of Italy's perpetual interns with no job security.

When the father looks around him at today's Italy, though, he feels something akin to hope, he says. This includes the enthusiasm of his students as they talk about their startup plans, and a government made up of technocrats who are showing a surprising eagerness to introduce reforms, including a higher retirement age, a liberalized labor market and a loosening of the laws that protect employees from being fired. That's more than what Monti's predecessors accomplished in all their years in office. It's also a different tone than the one adopted by Berlusconi who, when asked by a student how she was supposed to establish a family without a job, gave the following advice: "You can just marry one of my sons!"

Even if the situation on the labor market is disastrous, says Celli, he wouldn't phrase the letter to his son in the same way if he were to write it today. He says it will take years before the reforms are implemented, but "the danger that Italy will soon become a developing country" has been averted.

For the time being, Mattia is dreaming of a future in Rome, Barbara is saving money for her customers in Catania, Alessandra is working as a designer in London, and Sandra is conducting research in Bavaria. And filmmakers Gustav and Luca continue to collect stories of a lost generation.

They've postponed their plans to move to Berlin, though. They are chroniclers of a country in transition, they say, and they have to remain there. That sounds like a new beginning -- and good material for their next film.
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« Reply #2020 on: Aug 07, 2012, 07:03 AM »

 SPIEGEL ONLINE
08/06/2012 08:14 PM

Interview with Italian Prime Minister Mario Monti: 'A Front Line Between North and South'

In a SPIEGEL interview, Italian Prime Minister Mario Monti says Europe is showing traces of a "psychological dissolution" in the debt crisis and that leaders are doing too little to stop it. He also warns that governments cannot allow themselves to become "fully bound" to parliament in determining policies to save the euro.

SPIEGEL: Mr. Prime Minister, the euro is once again under pressure and voices speaking of a possible breakup of the common currency zone are growing louder. Have you completely given up on the idea of having a summer vacation?

Monti: I only have six days and I hope they don't disappear. Still, I am rather serene when I look at the summer. There is, of course, still a risk when it comes to Greece ...

SPIEGEL: ... because it appears that bankruptcy is unavoidable ...

Monti: ... but following a long period of preparation, we achieved good results on the whole at the most recent European Union summit at the end of June -- resolutions that should give the markets a better idea of how solid the euro zone really is.

SPIEGEL: But they haven't helped to reduce pressure on Italy and Spain. Last week, European Central Bank head Mario Draghi announced that the ECB is prepared, possibly together with European bailout funds, to buy sovereign bonds from indebted member states, but only at an undefined point in the future. Are you disappointed with the bank's hesitation?

Monti: I can only welcome the ECB's statement that the market for sovereign bonds in the euro zone is undergoing a period of "severe malfunctioning." It is also true that some countries face "exceptionally high" costs in financing their debt. That is exactly what I have been saying for some time. It is self-evident that banks are pulling back behind their national borders, making it even more difficult for those countries that are suffering from market mistrust. These problems must be solved quickly so that there can be no further uncertainty regarding the euro zone's ability to withstand the crisis.

SPIEGEL: Do you not think that the solution presented by the ECB reduces the pressure on the affected countries to clean up their state finances?

Monti: No. If you read the requirements of the European bailout funds, or even just last Thursday's ECB statement, you would have to admit that such concerns are unfounded. That is exactly the kind of distrust that has prevented us from embarking on a clear path toward a solution. We have to quickly surmount that and begin trusting one another once again.

SPIEGEL: Is there a reason to do so?

Monti: I think there is. Italy's current government has ensured a rapid reduction of the budget deficit, has passed structural reforms and has improved growth potential. Despite great sacrifice, Italians have accepted this course.

SPIEGEL: There is significant skepticism in Germany regarding ECB sovereign bond purchases. Can you not understand that those who back the bank are concerned about taking on unlimited guaranties?

Monti: The decisions facing Germany right now are not easy and I understand the difficulties German politicians are facing. To remain functional within a common currency, all countries would have had to implement reforms and arrange their budgets in a way that doesn't place a burden on others. That is why the progress that has already been achieved is so important to guarantee budgetary discipline -- like with the fiscal pact, for example.

SPIEGEL: That hasn't yet been of much help to the euro.

Monti: We have all made mistakes, even with the formation of the euro, even in an early phase when France and Germany in 2002 and 2003 violated the rules imposed by the Stability and Growth Pact and became poor examples for others. We now have to create a more responsible currency union.

SPIEGEL: That is exactly why you were asked to take on a leadership role in Italy. At last now, Rome is once again an important player in Europe.

Monti: For several years, we apparently didn't play a central role. I think it is completely normal that the third-largest economy in the euro zone has now become more active when it comes to reaching consensus on decisions facing the union.

SPIEGEL: Your meeting with French President François Hollande and Spanish Prime Minister Mariano Rajoy last week sparked concern that a southern alliance was being created to better counter demands coming from the north.

Monti: Between the two meetings, I was also in Finland. Of the three countries, I spent the most time there. In this case, it is not about north and south, it is about the currency used by 330 million Europeans. The more cohesively we act, the quicker we will find our way back onto a safe path, with fewer costs for all of us. Just now, I spoke on the telephone with Chancellor Angela Merkel, who invited me to Berlin at the end of August.

SPIEGEL: In general, however, it would seem that relations between the Italians and the Germans are somewhat clouded. Many are complaining about German rigidity and arrogance. How do you explain this atmosphere?

Monti: That has indeed been very unsettling for me in recent months and I told Chancellor Merkel of increasing resentment here in parliament -- against the EU, against the euro, against the Germans and sometimes against the chancellor herself. That, though, is a problem that goes beyond just Germany and Italy. The tensions that have accompanied the euro zone in recent years are showing signs of a psychological dissolution of Europe. We have to work hard to put a stop to it. If we were to compare Europe to a cathedral, then the euro would be its most perfect spire to date.

SPIEGEL: One which we, unfortunately, are afraid might come crashing down.

Monti: If the euro becomes a factor promoting Europe's drifting apart, then the foundation of the European project is destroyed. That is why it is the utmost duty of national leaders to explain to their people Europe's true situation and not to give in to old prejudices.

SPIEGEL: Do you believe that this problem is still solvable?

Monti: Yes and in this regard there is also a front line between North and South, there are mutual prejudices. That is very disquieting and we need to fight it. I am certain that most Germans have instinctive liking for Italy, just as Italians admire Germans for their many qualities. But I also have the impression that the majority of Germans somehow believe that Italy has already received financial aid from Germany or the European Union, which simply is not the case. Not a single euro.

SPIEGEL: How would you explain to a small business owner in Germany, who is already liable for diverse bailout packages with his or her tax money, that that person would, indirectly through the European Central Bank, have to provide guarantees for a restructuring of a bankrupt bank in Siena?

Monti: I would try to explain to that person that the reality sometimes looks totally different from the perception that one has of something. The reality is namely also that Italy, in relation to its economic size has more or less provided the same percentage of aid for Greece, Ireland, Portugal and more recently the Spanish banking sector as Germany. But also just take a look at the net benefit of this aid.

SPIEGEL: You mean that aid for the indebted states also benefits Germany?

Monti: Much of what Germany and France have done in the rescue of Greece has also helped German and French banks, who for a long time were major creditors for Greece and Greek banks. That practically doesn't apply to Italy at all, though. Seen in this way, Italy has not only not been the recipient of any aid, but we have actually given more than France or Germany if you consider the net return. This year our national debt will amount to 123.4 percent of our gross domestic product. Without the aid payments, it would be 120.3. I would explain that to a German businessman.

SPIEGEL: And you believe the German businessman would buy that?

Monti: I would also explain to him that Germany also profits from the fact that sovereign bonds in the Federal Republic of Germany are so cheap and that they can at times even be issued with negative interest rates. It is because of the risk of a euro collapse that the difference between Italy's interest rates and those of Germany is so great. In this way, the high interest rates that Italy is now having to pay are subsidizing the low ones that Germany pays. Without this risk, Germany would pay somewhat higher rates. In addition, no one can deny that Germany, simply because it is big, so productive and so efficient, is the greatest beneficiary of the common market.

SPIEGEL: Are you certain that a breakup of the euro zone is still preventable?

Monti: Yes, it is still possible, but it isn't just going to fall out of the sky.

SPIEGEL: But it also doesn't appear that the problems are going to be solved by continuing to flood them with more money. That creates breathing room for a few days, but then the pressure on the financial markets increases again. Is it possible to break this vicious cycle?

Monti: Yes.

SPIEGEL: Without constantly throwing fresh money at it?

Monti: Correct, that can't be. It would help if the communication following euro-zone decisions were improved.

SPIEGEL: But the issues here are the mountains of debt and not press conferences.

Monti: But there are these mistakes with not completely identical information being distributed that leads to new turbulence on the markets. However, much more serious is the fact that there are a few countries -- and they lie to the north of Germany -- who every time we have reached a consensus at the European Council (the EU body representing the leaders of the 27 member states) then say things two days later that call into question this consensus.

SPIEGEL: You are now referring to the Finns as well as others?

Monti: I can understand that they must show consideration for their parliament. But at the end of the day, every country in the European Union has a parliament as well as a constitutional court. And of course each government must orient itself according to decisions made by parliament. But every government also has a duty to educate parliament. If I had stuck to the guidelines of my parliament in an entirely mechanical way, then I wouldn't even have been able to agree to the decisions that were made at the most recent (EU) summit in Brussels.

SPIEGEL: Why not?

Monti: I was given the task of pushing through euro bonds at the summit. If governments let themselves be fully bound by the decisions of their parliaments without protecting their own freedom to act, a breakup of Europe would be a more probable outcome than deeper integration.

SPIEGEL: Silvio Berlusconi boasts of fighting communism in Italy. How do you want to be remembered by Italians and Europeans?

Monti: If everything goes according to plan, I will remain in office until April 2013, and I hope that I can rescue Italy from financial ruin by then -- and this with moral support from a few European friends, led by Germany. But I will also say very clearly: moral support, not financial. And, finally, I hope that Italy will simply become a little bit more boring to outside observers. If Germany and other countries are interested in ensuring a future for the current policies in Italy, then ...

SPIEGEL: ... they should make more concessions to Italy?

Monti: Again, not with financial aid. But they should allow a bit more leeway to those states in the euro zone that follow European guidelines the most closely.

SPIEGEL: Your relationship with Angela Merkel, who many saw as the loser of the last summit, is now back on solid footing?

Monti: We maintain a very friendly, cordial relationship. We have known each other for many years and I have been very pleased with the recognition I have received from both the chancellor and from Finance Minister Wolfgang Schäuble for the progress made in Italian politics.

SPIEGEL: A few weeks ago, when your predecessor Silvio Berlusconi said that he too had a cordial relationship with the chancellor, she quickly had a denial issued.

Monti: Then we can sit back and wait to see if another denial is forthcoming.

SPIEGEL: Mr. Prime Minister, we thank you very much for this interview.

Interview conducted by Fiona Ehlers and Hans Hoyng
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« Reply #2021 on: Aug 07, 2012, 07:04 AM »

 SPIEGEL ONLINE
08/07/2012 11:45 AM

'Constant and Systemic Dialogue': Monti Clarifies Statements on National Parliaments

Responding to criticism in Berlin and Brussels, Italian Prime Minister Mario Monti on Monday night watered down statements he had made to SPIEGEL claiming that leaders in the euro zone should have less consideration for parliaments.

Mario Monti has denied accusations that he is seeking to sideline national parliaments in Europe in efforts to save the euro. He said he in no way wishes to weaken the checks and balances that parliaments exert on the executive. Instead, the Italian prime minister said on Monday night, he wanted to strengthen parliaments on the national and European level. "The autonomy of the parliament in relation to the executive is not up for debate," he said.

In a SPIEGEL interview published on Monday, Monti warned that European leaders could not allow themselves to be bound entirely to parliamentary resolutions in their efforts to save the euro. "If governments let themselves be fully bound by the decisions of their parliaments without protecting their own freedom to act, a break up of Europe would be a more probable outcome than deeper integration," he warned in the SPIEGEL interview.

On Monday night, Monti said that his comments had been aimed at promoting a "constant and systemic dialogue" between governments and parliaments on the process of European integration. When it comes to government negotiations at the European level, he said in clarification, "a certain amount of flexibility is necessary in order to reach agreements." Still, he said this had to happen within the parameters that had been agreed to by parliament. "Every government has a duty to explain itself and interact in a dynamic, transparent and effective way with parliament," he said.

Criticism from Merkel

In Germany, in particular, Monti's statements in SPIEGEL generated a heated debate. Chancellor Angela Merkel and Bundestag President Norbert Lammert, both of whom are conservatives with the Christian Democratic Union, defended the right of German parliament to co-determination in important decisions on euro bailouts, describing it as indispensable. Following a recent decision by Germany's highest court, the Federal Constitutional Court, all euro bailout decisions must be approved by parliament in Berlin. The ratification of the permanent euro bailout fund, the European Stability Mechanism (ESM), is also facing review at the Constitutional Court, with a decision expected after Sept. 12.

"The chancellor's view is that we have always got along fine in Germany with the correct degree of support by parliament and the correct degree of parliamentary participation," said deputy government spokesman Georg Streiter. In addition, he said, the Constitutional Court has now ruled several times that "the parliament must be granted more participation rather than less."

Lammert stressed on Monday that the inclusion of parliament was not only necessary for constitutional reasons, but that it was also an essential precondition for acceptance of decisions by the German people. He said it was "more acceptable for markets' expectations to be disappointed by democracy than for the country's legal order to take a back seat to markets."

German Foreign Minister Guido Westerwelle of the business-friendly Free Democratic Party (FDP), the junior coalition partner in Merkel's government, also commented on the interview on Monday. "We need a strengthening, not a weakening of democratic legitimation in Europe," he said.

'No Doubts'

Members of the European Commission in Brussels also seemed miffed by the statements, with a spokesman emphasizing the current legal situation. "The member states have decided that certain rules must apply to decision-making and the application of finance decisions," a Commission spokesman in Brussels said. In some countries, these must be approved by the parliaments. "We fully respect the competencies of national parliaments in all of these processes."

But it isn't only Monti's interview that drew criticism on Monday. In Germany, the debate also centered on the populist tones coming out of leading members of the country's Christian Social Union, the Bavarian sister party to Chancellor Merkel's conservatives. In one statement, the party's general secretary, Alexander Dobrindt, accused European Central Bank chief Mario Draghi of abusing his position at the ECB to represent Italian interests.

On Monday, however, the German government expressed its support for the ECB, saying Draghi has only been doing his job. "The government has no doubts that everything the ECB does is within its mandate," government spokesman Streiter said. Meanwhile, Westerwelle also urged calm in the debate. "The tone of the debate is very dangerous," he said. "We need to be careful not to talk Europe to death."
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« Reply #2022 on: Aug 07, 2012, 07:07 AM »


07 August 2012 - 13H48 

Greece raises 812.5 mn as borrowing rate dips

AFP - Greece raised 812.5 million euros ($1.01 billion) in a six-month treasury bill sale on Tuesday at slightly lower rates, and is to use the funds to cover maturing debt obligations.

"Total bids reached 1.29 billion euros," the government debt agency said in a statement, more than double the sum sought, with the rate paid to investors falling to 4.68 percent from 4.70 percent at the last equivalent sale on July 10.

Auditors from the cash-stripped country's European Union, IMF and European Central Bank (ECB) creditors left Athens on Sunday, following a visit to inspect Greece's progress in implementing reforms that are part of its bailout packages.

They are expected to return in September, with Poul Thomsen of the International Monetary Fund telling reporters that "we made good progress" before his departure.

Greatly affected by a political deadlock, the result of back-to-back elections in May and June, Greece is off track in its program and faces great international pressure to meet its promises.

The conservative-led coalition government has yet to finalise 11.6 billion euros of spending cuts for the next two years, a condition to receive the next installment of its EU-IMF bailout package.

Finance minister Yannis Stournaras has said that the coming weeks are crucial for the country's future.

The country also needs to redeem a 3.2-billion-euro bond held by the ECB when the bond expires on August 20.

A Greek finance ministry source recently told AFP that additional treasury bill auctions were being considered for August, to compensate for the cash shortfall.

On Saturday German newspaper Die Welt reported that the ECB has moved to stave off Greek bankrupcty for the time being by guaranteeing additional emergency loans from the country's central bank.

The ECB's governing council decided at a meeting Thursday on the move which will give Greece access to another four billion euros of funds and ensure its financial survival until September, the newspaper reported.
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« Reply #2023 on: Aug 07, 2012, 07:08 AM »

07 August 2012 - 13H58 

Italy economy sinks deep into recession

AFP - Italy's economy shrank by 0.7 percent in the second quarter, increasing the pressure on Mario Monti's government to balance austerity with growth measures as the country wallows deep in recession.

The poor figures will spark greater concern over whether Premier Monti can bring Italy back from the debt crisis brink. While some observers slammed the disappointing figures, others said they were unlikely to spook investors.

"Unicredit had forecast a 0.5 percent contraction for the second quarter -- we expected a clearer slowing of the recession," Unicredit's Chiara Corsa said.

The eurozone's third largest economy picked up ever so slightly after an 0.8 percent contraction of Gross Domestic Product (GDP) in the first quarter but Tuesday's figures show the country is still struggling.

Compared with second quarter 2011, the economy contracted 2.5 percent, the national institute of statistics (ISTAT) said.

"We're in a serious contraction phase. Italy has tackled the crisis with austerity but has lagged on growth measures and so today's results were widely predictable," Giuliano Noci from Milan's business school said.

The continued slump is gloomy news for Italians, who have seen a series of austerity packages, tax hikes and reforms imposed on them by Monti and his technocrat government as they struggle to battle off the debt crisis.

The marginal improvement compared with the first quarter will do little to reassure economic watchers and financial markets who fear the country's vast debt leaves it open to contagion risks from other countries hit by the crisis.

While the government has forecast that the economy will shrink 1.2 percent this year, the Bank of Italy has predicted 2.0 percent and business association Confindustria fears a deeper 2.4 percent.

"The GDP figures have shown that the government's growth forecasts for the year are off (track). Investors are now looking for proof that Monti has the strength to go beyond austerity, to growth," Noci said.

Corsa also slammed the government's forecast as "far too optimistic."

"There's a great sense of uncertainty over just how much Italy's economy will contract this year. We've certainly revised our forecast down," she said.

Debt-laden Italy has been punished repeatedly by the markets, forced to pay borrowing costs which still hover around the 6.0 percent warning benchmark as investors keep the pressure on Monti's team.

Former eurocrat Monti has warned the rest of the eurozone that Italy must be allowed breathing space on the markets to have any chance of pulling away from the debt crisis brink and resisting contagion from its weaker neighbour Spain.
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« Reply #2024 on: Aug 07, 2012, 07:10 AM »

07 August 2012 - 12H56 

Baby rhinos get second chance in S. African orphanage

AFP - The baby black rhino slurps milk greedily from a cola bottle, hops around and chases its caregiver in South Africa's newest and largest orphanage for calves whose parents were poached for their horns.

The fat-buttocked, four-month-old male rhino is the first resident at the orphanage at the Entabeni Safari Conservancy, which hopes to nurse it back to health and give other hundreds of other rhino babies a second chance at life.

The youngster doesn't yet have a name -- but it does have a personality.

"He'll want to feel your hair and your face with his lip and he wants to get into everything he's not allowed to. He's just like what you'd imagine a little four month old to be," said Alana Russell, an American conservation student and one of the 100-kilo (220-pound) calf's five caregivers.

Located under a mountain range in the rolling green savannah near the city of Mokopane, about 250 kilometres (150 miles) north of Pretoria, the orphanage is a non-profit offshoot of a swish tourist resort whose visitors pay to see South Africa's famed megafauna.

Almost 300 rhinos have been poached across South Africa since the start of the year, after 448 were killed last year. The country is home to about three quarters of Africa's 20,000 or so white rhinos and 4,800 critically endangered black rhinos.

Numbers are dwindling at an alarming rate thanks to increased poaching as black market demand for rhino horn soars. Made of the same material as finger nails, the horns are smuggled to Asia, where they're used in traditional medicine, even though scientific research shows they have no medicinal properties.

A third of the slain rhinos are either pregnant cows or mothers with a calf, said Karen Trendler, an esteemed conservationist at the orphanage.

"Sadly, in many instances there are calves that are orphaned as a result of the poaching and we were concerned that there was a need to address those to provide field response specialist care," said Trendler, known fondly as "Mama Rhino" for having raised around 200 baby rhinos over two decades.

"Now there's a specialised rhino orphanage that can take the calves and provide that care that they need," she said.

Once it's completed in mid-September, the orphanage will care for between 25-30 young rhinos that would otherwise have likely died.

It will include four high-care rooms and one intensive care chamber where sick calves receive 24-hour attention and can be treated in an incubator.

"As they become older, we will release them into areas bigger and bigger and bigger, until they are about two-and-a-half to three years old, and then obviously they are released back into nature," the conservation manager Arrie van Deventer told AFP on a recent visit to the facility.

If contact with humans is limited, rhinos can successfully re-adapt to the wild.

Behind him, workmen were putting a layer of 10-centimetre (four-inch) cement onto the care shelter's concrete roof, so falling rain won't scare the traumatised little animals -- a sign of the care put into the project design.

The first orphan -- the young black rhino -- is being housed elsewhere in the reserve until the orphanage is finished.

This one is not a poaching victim -- its mother rejected her calf, which was found with a protruding rectum and still needs intensive care.

After its treatment, human contact will be limited, Van Deventer said.

"In the orphanage, the only human contact will be the handlers. When he goes out it will never see that human again."

Two adult white rhinos -- Mike and Nanna -- will act as surrogates to "teach the rhino to be a rhino".

Visitors to the resort will not be allowed to see the animals in rehabilitation, and academic researchers would undergo strict screening before being allowed to study the animals. The project's unofficial motto is "No tourism, no commercialism".

Once they reach around three years in age, the calves will be released in the reserve or donated to breeding programmes elsewhere in the country.

The project managers hope one day they will have hundreds of orphanage graduates to boost the animals' numbers.

"If they can go back into the wild, if they can breed, if they can successfully rear their own calves, then it's conservation," Trendler said.
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