European Car Industry: GM Pulling Most Of Chevrolet Out Of Europe, But Leaving Corvette - by Maggie McGrath

In an effort to strengthen its European operations, automaker General Motors has decided to withdraw one of its signature brands from the region, the company announced Thursday morning.

Citing Europe’s “difficult economic situation,” GM said that it is largely pulling Chevrolet from Western and Eastern Europe, a change that will take effect beginning in 2016. While Chevrolet, which GM called the fourth-largest global automotive brand, will no longer have a “mainstream presence” in Europe, GM said it will still offer select “iconic” Chevrolet vehicles — like the Corvette — throughout Europe. The Chevrolet brand will also still have a “broad presence” in Russia and the Commonwealth of Independent States, the automaker said.

GM said that the move will help its Opel and Vauxhall brands and reduce the complexity and competition associated with having both Opel and Chevrolet in Europe, because the brands aren’t as clearly defined as they are in Russia and the CIS.

According to GM’s most recent earnings report, European operations brought in a negative $214 million in the third quarter of 2013. The Opel/Vauxhall segment accounted for 64% of GM’s European sales, with 249,000 Opel/Vauxhall vehicles sold in the three months ending September 30. Meanwhile, just 138,000 Chevrolet vehicles were sold in Europe during that same period, a figure that accounts for 35.6% of GM’s third quarter European sales.

Read more:: GM Pulling Most Of Chevrolet Out Of Europe, But Leaving Corvette - Forbes

NSA Spying On Europe: No EU action only talk and more talk as US Patriot Act Author Sensenbrenner defends NSA - by Monika Ermert

US Congressman Jim Sensenbrenner at a hearing today of the European Parliament Civil Liberties, Justice and Home Committee (LIBE) on mass surveillance by the National Security Agency (NSA) and other intelligence services asked the EU politicians “to work pragmatically with the United States to continue balanced efforts to protection our nations” and “rebuild trust while defending civil liberties and national security on both sides of the Atlantic.”

Sensenbrenner’s prepared statement is here. The full archived meeting will be up later.
An author of both the US Patriot Act and new draft legislation to abolish bulk collection of data, the Freedom Act (together with Senator Patrick Leahy), Sensenbrenner was the first US politician to participate in the series of hearings expected to result in recommendations for how the EU can address the mass surveillance revelations.

Sensenbrenner has said that to push the Freedom Act to the Senate and House floors, he and his partners would have to fight in both chambers against the leaders of both parties and the intelligence community. The draft legislation passed recently in the Intelligence Committee would only make legal all the NSA had done legal, he warned.

The Congressman, on the other hand, was evasive with regard to reiterated questions about the double standard with regard to protection of US and EU citizens’ fundamental rights and the lack of redress.

With regard to a long pending negotiation on a transatlantic framework agreement on data protection, he pointed to an upcoming meeting of US Attorney General Eric Holder and European Commission Vice President Viviane Reding next weekend.

The chair of the inquiry meeting, Dutch Liberal Sophie In’t Veld, said in closing that despite the different legal systems there should be ways for the protection of civil liberties. “This will be a precondition for the trans-Atlantic trade negotiations,” she said.

In a related action, the Swiss Privacy Foundation (Digitale Gesellschaft) is pushing for legal charges to be pressed against foreign intelligence services violating Swiss law following the revelations of former National Security Agency (NSA) employee and whistleblower Edward Snowden. At the same time, a US judge ruled today that a case against the NSA by the Electronic Frontier Foundation can proceed. And the European Union raised the issue in Washington this week, while Brazil has opened an investigation of US spying in that country.


In a 7 July letter [pdf, in German] to the Office of the Swiss Federal Prosecutor General, the foundation reported potential violations of Swiss Federal law by illegal intelligence services.

According to recent press reports on surveillance programmes like Prism (from the US services) and Tempora (from British services), there are good reasons to suspect violations of articles 271, 272, 273 of Swiss Penal Code about political, economic and military espionage by a foreign country, the letter to the Federal Prosecutor General reads.

The foundation, of which the Digital Allmend, Swiss Pirates and Swiss Chaos Computer Club are members, also want to see an investigation on the grounds of illegal information-gathering and intrusion of computer systems (Articles 143 and 143bis of the Penal Code, respectively).

So far, Swiss authorities and politicians had not reacted, the activists, said in press statements with regard to the motive for their move. The Swiss activists’ action is not the only legal challenge. The German Prosecutor General has been confirmed to be looking into the issue of potential espionage with regard to the alleged tapping of internet communication from US companies peering at the Frankfurt internet exchange DeCIX.


Note EU-Digest: So far all the European public have heard is" talk and more tal" - no concrete action whatsoever has been taken.

Read more: US Patriot Act Author Sensenbrenner Warns EU Parliament On NSA | Intellectual Property Watch

EU - Refugees - Syria: With The Help Of Smugglers, Syrian Refugees Sneak Into Europe - by Deborah Amos and Rima Marrouch

The 27-year-old Syrian, who once smuggled arms for Syrian rebels, is now waiting in Istanbul for a human smuggler to get him to Europe. He says his name is Mohammed. He does not offer a second name. He will go by air, he says, the safest route. He has paid a smuggler more than $8,000, and he's sure he will get to Austria.

In the past week, he connected seven friends with smugglers.

"I know that most of them made it," he says, with a tight smile. He is traveling light. Everything he owns is in a backpack.

"I am leaving Syria under a lot of pressure," he explains.

He seems exhausted by the waiting. Twenty days ago, he got into a fight with an al-Qaida-linked group while helping a friend in the Syrian town of Sarqib. Mohammed says he killed two of their men.

Read more: With The Help Of Smugglers, Syrian Refugees Sneak Into Europe : Parallels : NPR

Aircraft Industry: A New Jet From Canada Takes on Boeing and Airbus, Very (Very) Slowly - by Justin Bachman

Canadian CSeries Bombardier challenging Airbus and Boeing

Bombardier’s (BBD/B:CN) long slog to field a rival to the popular narow-body airplanes from Boeing (BA) and Airbus (EAD:FP) has claimed a casualty: its sales chief. Chet Fuller, the former GE Aviation (GE) executive and U.S. Navy pilot tasked with finding buyers for the new CSeries jet, will leave the company “to pursue other career opportunities,” Bombardier said on Tuesday.

The CSeries has collected 182 firm orders, and the company has said it will have booked 300 by September, the tentative date for the airplane’s entry into commercial service. The latest purchase came today, when Iraqi Airways committed to buying five CSeries jets with options for 11 more.

The CSeries is an audacious gambit by Bombardier to muscle into the market for medium-size jets such as Boeing’s 737 and Airbus’s 320 families. Those planes have become the workhorses of global airline fleets, with 140 to 190 seats and ranges of around 3,000 miles. The CSeries will have seating for 149 people in its larger version. “Look, Airbus and Boeing have had this space to themselves for two decades,” Fuller told Bloomberg News in February 2011. “You know what? The world deserves choice.”

Read more: A New Jet From Canada Takes on Boeing and Airbus, Very (Very) Slowly - Businessweek

Soccer Championship - Brazil: Official FIFA World Cup™ site with latest info

It is hard enough losing in the Final of a FIFA World Cup™, but it seems to be a particularly cruel twist of fate to kick off your next final tournament bid against the team that denied you the coveted Trophy says Dutch Coach van Gaal. What's more, whoever qualifies from Group B – a section with a heavy South Africa 2010 flavour – could find themselves facing host nation Brazil in the Round of 16. Here is how the four head coaches involved see the task ahead:

You can’t really do anything about it, but it's fair to say that it's not a good draw for us. We will play Spain, the reigning world champions; Australia, who we have never beaten; and Chile. But I’ve already played against Spain before, in my first spell as Netherlands coach. We played them in Seville and won, so why shouldn’t we beat them again? (Smiles) But well, Holland are ninth in the FIFA Ranking and Spain are first, so who do you think are favourites? Of course, it’ll be a replay of the 2010 Final. Chile will be difficult, they’ve got players like Alexis Sanchez, Arturo Vidal… they’re a very tough team to beat. I saw them play against Colombia when they went 3-0 up and they showed that they are a good team.  If we qualify we could end up meeting Brazil, the tournament favourites, [in the Round of 16] which makes the task even more difficult. So, it's not the best of draws from a Dutch perspective: I would have preferred Group H. We do not have a lot of time to prepare either after arriving in Brazil, so it's also a bad draw in that respect. 

Read more: Official FIFA World Cup™ Tickets - Apply for tickets - FIFA.com:

Russia rages at US fraud charges against diplomats

Russia and the United States were on Friday embroiled in a new diplomatic dispute after Moscow reacted furiously to charges launched in the United States against 49 current and former Russian diplomats and their wives over a $1.5 million fraud.

Deputy Foreign Minister Sergei Ryabkov said in a statement to Russian news agencies that Moscow had many claims against the behaviour of US diplomats in Moscow but had preferred not to bring them into the public sphere.

“We categorically reject the charges against the staff of Russian diplomatic institutions in the United States,” he was quoted as saying by the Itar-Tass news agency, saying it was “illegal” for diplomats to have been watched by the authorities in this way.

“If the American authorities have claims against our citizens... they should have been made first through diplomatic channels. This is no more than cheap PR and an attempt to fulfil an order by Russophobes in the US,” he added.

Mr Ryabkov hinted that Russia had many allegations it could lay against American diplomatic staff if it so desired but said Moscow had preferred to stay quiet.

“We have many claims against how American embassy staff work and act. But we do not want to go down the path of a rhetorical war of mutual accusations,” he said.

Read more: Russia rages at US fraud charges against diplomats - DAWN.COM

The Netherlands - Poverty: Serious rise in poverty in the Netherlands - by Alexandra Gowling

New statistics from state statistics agency CBS reveal that poverty in the Netherlands has increased sharply over the last two years, from 7,4 per cent in 2010 to 9,4 per cent in 2012.

Despite the economic crisis beginning in 2008, the full impact on household incomes has only begun to be felt over the last few years. Now, 664.000 households in the Netherlands are at risk of poverty, with a total of 1,329 million people in 2012 existing on a low income.

Estimates suggest that the poverty rate will have risen again in 2013, but less than in 2012, and decline slightly in 2014.

Adults in poverty are often employed, although of the 348.000 working poor in 2012, 165.000 were self-employed. There were also 255.000 poor social assistance benefit recipients and 79.000 people aged over 65 (i.e. retired) in poverty.

There are also more children in poverty now: over 100.000 more than in 2007. That means one in three poor people is aged under 18. In addition, people living in poverty are less likely to be immigrants to the Netherlands, with 60 per cent of people in poverty identifying as native Dutch.

Further, almost a quarter of all households in the Netherlands living below the low-income threshold in 2011 were in the Randstad, with the largest share in Amsterdam. The poverty rate has risen more in The Hague and Rotterdam than Amsterdam since 2009, however, and Rotterdam has the most poor postcode districts in the top 20.

Read more: Serious rise in poverty in the Netherlands | Dutch News

US Politics and Religion: Pope Remarks:"You Can't Serve Two Masters"- Provokes Free-Market Right-Wing Freakout-by RM

Following the Catholic Pope Francis’s much-publicized Joy of the Gospel document, which critiqued uncontrolled capitalism and insinuated that thoroughly discredited trickle-down economics is naïve and just plain wrong,  right-wingers outdid themselves in hitting back at the Pope .

But lets face it  : what is so wrong with what the Pope wrote: "Just as the commandment “Thou shalt not kill” sets a clear limit in order to safeguard the value of human life, today we also have to say “thou shalt not” to an economy of exclusion and inequality. Such an economy kills. How can it be that it is not a news item when an elderly homeless person dies of exposure, but it is news when the stock market loses two points? This is a case of exclusion. Can we continue to stand by when food is thrown away while people are starving? This is a case of inequality. Today everything comes under the laws of competition and the survival of the fittest, where the powerful feed upon the powerless. As a consequence, masses of people find themselves excluded and marginalized: without work, without possibilities, without any means of escape. Human beings are themselves considered consumer goods to be used and then discarded. We have created a “throw away” culture which is now spreading. It is no longer simply about exploitation and oppression, but something new. Exclusion ultimately has to do with what it means to be a part of the society in which we live; those excluded are no longer society’s underside or its fringes or its disenfranchised – they are no longer even a part of it. The excluded are not the “exploited” but the outcast, the “leftovers”.

Fox Business host Stuart Varney was just stewing about the pontiff’s remarks. “Capitalism, in my opinion, is a liberator,” he lectured Pope Francis from his television pulpit. “The free choice of millions of people is the essence of freedom. In my opinion, society benefits most when people are free to pursue their own self-interest. I know that sounds like a contradiction, but it is not.” It isn’t. It just isn’t." 

"Oh, yeah, and another thing. The pope has no business mixing politics with religion. Especially when his political views diverge with those of Fox."

Said Varney, “I go to church to save my soul. It’s got nothing to do with my vote. Pope Francis has linked the two. He has offered direct criticism of a specific political system. He has characterized negatively that system. I think he wants to influence my politics.”

Varney said Pope John Paul II was much more to his liking because as he said  Pope John Paul II was very much against communism, and far more into private property. Farney said Pope John Paul II never made rich people feel bad for having too much, while millions of others went without.

But whatever way you turn it, Pope Francis does not seem to mince words, which is going to make life very difficult for Catholic politicians (and many Christians), who want to trumpet their faith while at the same time bowing to the Golden Calf of Wall Street.

Gone, it seems, are the days when a Conservative politician could say “I’m pro-life” and that would be the end of the discussion as far as the Catholic/Christian hierarchy in the world were concerned.

There’s a new "shepherd" in town and he seems to be very concerned about the present deteriorating structure of the world economic system and the behavior of The Powers That Be within it.

Jesus once told a story about The Powers That Be of his day, “A man was going down from Jerusalem to Jericho, and fell into the hands of robbers, who stripped him, beat him, and went away, leaving him half dead. Now by chance a Pharisee (equivalent of a today's Priest) was going down that road; and when he saw him, he passed by on the other side. . . .and did not help him.

Francis, based on what he wrote in his Joys of the Gospel seems to be a much different kind of priest than the one in the biblical story, and he wants the TPTB's of today to sit up and listen.

Pope Francis's statements certainly are a wake-up call for all those "Bible pounding Christians" and politicians, who believe they are holier than holy and  "talk the talk, but don't walk the walk".

As the bible says in Matthew 6-verse 24 "No one can serve two masters. Either you will hate the one and love the other, or you will be devoted to the one and despise the other. You cannot serve both God and money".


EU-Digest

Europe & Growth Pact: A Child Of The Economy, An Orphan Of Politics

As we move towards the future, the situation is bleak. The decisions made at successive European summits do not seem likely to address the structural defects of the Eurozone. The disappointment with the Europe of today is that it deals with a constitutional problem as if it were merely an economic one. The fiction of the sustainability of Europe, a child of the economy, but an orphan of politics, continues to undermine European integration.

It is certainly true that the proposed banking union shows real progress. But only part of the union’s supervision has been defined, and it comes into force in 2014. Its other elements – the resolution of banking crises and deposit insurance – remain under national jurisdiction, and their European future is even more uncertain. There must be real solidarity, something which Europe lacks most of all.

We have the Growth Pact and the Treaty on Stability, Coordination, and Governance. To which future are they leading us?

As it was signed, the Growth Pact – investment projects financed primarily by existing structural funds and the European Investment Bank’s increased capital (10 billion Euros) – is not likely to transform activity in the Eurozone. We are talking about 120 billion Euros; even this is mobilising funds which have not yet been used, to enable the EIB to lend 60 billion Euros by leveraging its capital increase.

Whether or not a start has been made is a mystery. This is why the European recovery seems more symbolic than real, a remake of the addition (fiercely negotiated in 1997) of the words “and growth” to the Stability Pact. Because, at the moment, EU regulations and conditions for assistance to countries considered fragile have plunged these countries into depression and have delayed Eurozone recovery. Have we really helped Greece, given that its GDP is currently more than 20% lower than it was on the 1st January 2008?

It is difficult not to view the Growth Pact as the soothing balm applied to smooth the roughness of the “fiscal compact.” Therefore, we have a treaty which establishes the fiscal solitude of each of the Eurozone member states through a promise of greater solidarity if they show themselves to be capable of solving their own problems. It forces, or rather, it requires states to self-impose sanctions or risk facing penalties, to have fiscal rules that are found in no other democracy in the world. In fact, it aggravates the European democratic deficit, making member states even more federal, and, at the same time, even more the orphans of a federation.

Since the end of World War II, economists have been debating the question of whether to emphasise rules or discretion in economic policy. In the forties, Milton Friedman had already advocated adopting monetary rules and suggested enshrining balanced fiscal rules in the constitution. But it was the “revolution” of rational expectations and the neo-classical school which established in a “definitive” way the superiority of rules over choice. Much attention was given to this conclusion, which inspired monetary policy management in many countries. But no country gave up its fiscal sovereignty, or indeed its monetary sovereignty, since in all countries (except in Europe) central banks are accountable to national parliaments. The neo-classical school’s demonstration would only apply to a world without imbalance, where economic policy resembled Don Quixote’s fight.

But how was Europe, probably without knowing it, able to endorse such a doctrine?

The reason is that adopting this doctrine binds governments’ hands so strongly it prevents them from acting, even in circumstances like today where inaction is irresponsible. Social suffering worsens, unemployment soars, recession threatens the Eurozone and depression takes hold in many countries. Can we then do nothing to fight against these ills and against budget deficit reduction as the sole macroeconomic policy?

Read more: Europe & Growth Pact: A Child Of The Economy, An Orphan Of Politics

Weather - the Netherlands: Hurricane Strength "Sinterklaas" Storm upgraded to Code Red for Northern Netherlands

At noon today the Dutch meteorology agency KNMI has issued a Code Red weather warning for people living in the north of the Netherlands. The official meteorologists of the Netherlands issued their strong prediction for Friesland, Groningen, IJsselmeer, Noord Holland and the Wadden Sea area, saying that they expect the storm to start taking hold around noon today.

Some schools in the northern Netherlands closed early so children could get home safely to celebrate Sinterklaas -- the traditional Dutch version of Christmas -- with their families.

The Netherlands also closed water barriers to protect the low-lying country from high tides, including the Oosterscheldekering barrier in the southwestern delta region, which was closed for the first time since 2007.
Water authorities in the northern Dutch province of Friesland were patrolling dikes to make sure any breeches or damages from the high tides were quickly repaired. The dikes were built to withstand water levels 5 metres above normal.

Thursday's tide was predicted to be around 3.3 metres higher than normal, the authority said.

Transportation troubles, also spread throughout northwestern Europe. All flights to and from Copenhagen's international airport were halted late Thursday due to the storm, officials said. It was not immediately clear how many passengers were affected or how long the airport -- Scandinavia's largest -- would stay closed.

Almost all flights to and from Hamburg airport in northern Germany were also cancelled, and federal authorities in Germany issued a warning for residents of Hamburg to expect a "very severe tidal flood" at about 6:30 a.m. Friday local time. Residents were urged to evacuate low-lying areas of the port and along the Elbe River.

EU-Digest

Weather: Fierce Storm Lashes Europe; at Least 3 Dead

Britain braced for severe flooding and the worst tidal surge in 60 years after a powerful storm with hurricane-force gusts hit the country Thursday and began moving across Europe.

The storm prompted evacuations, snarled transport and left tens of thousands of homes without electricity. At least three people died in accidents linked to the weather.

About 10,000 homes along the eastern English coast were evacuated after Britain's Environment Agency warned the country could face its worst tidal surge in 60 years. The Thames Barrier — a series of huge metal plates that can be raised across the entire river — was being closed late Thursday to protect London from the surge.

Tidal floods — caused as the storm drives huge amounts of seawater toward the land — were expected in Britain, Germany and Scandinavia, together with freezing high winds from Greenland.

The Environment Agency put out more than 50 flood warnings for different parts of the U.K., with the risk of flooding stretching into Friday morning.

Read more: Fierce Storm Lashes Europe; at Least 3 Dead - ABC News

South Africa's Nelson Mandela dies in Johannesburg

RIP Nelson Mandela

In a statement on South African national TV, Jacob Zuma said Mr Mandela had "departed" and was at peace.

"Our nation has lost its greatest son," Mr Zuma said.

He said Mr Mandela would receive a full state funeral, and flags would be flown at half-mast.
BBC correspondents say Mr Mandela's body will be moved to a mortuary in Pretoria, and the funeral is likely to take place next Saturday.

A crowd has gathered outside the house where Mr Mandela died. Some are flying South African flags and wearing the shirts of the governing African National Congress, which Mr Mandela once led.

The Nobel Peace Prize laureate was one of the world's most revered statesmen after preaching reconciliation despite being imprisoned for 27 years.

He had rarely been seen in public since officially retiring in 2004. He made his last public appearance in 2010, at the football World Cup in South Africa.

Mr Obama, the first black president of the United States, said he was one of the millions who drew inspiration from Mr Mandela's life.

FW de Klerk, who as South Africa's last white president ordered Mr Mandela's release, called him a "unifier" and said he had "a remarkable lack of bitterness".

He told the BBC: "I think his greatest legacy... is that we are basically at peace with each other notwithstanding our great diversity, that we will be taking hands once again now around his death and around our common sadness and mourning."

UK Prime Minister David Cameron also paid tribute, saying "a great light has gone out in the world".

Note EU-Digest: A great leader dies and  joins George Washington, Napoleon, Ataturk, Mao Gandhi and Churchill in the ranks of leaders who changed the course of history

Read more: BBC News - South Africa's Nelson Mandela dies in Johannesburg

Banking Fraud: EU Sets"Big"Fines in Settling Libor Case - "but why no jail sentences given?"-by C.Bray and J.Ewing

Demonstrating a new resolve to punish bank misconduct, the European Union fined a group of global financial institutions a combined 1.7 billion euros ($2.3 billion) on Wednesday to settle charges that they colluded to fix benchmark interest rates.

The settlement was the largest combined penalty ever levied by the European competition authorities and is the first time that American banks have been fined in a set of interest rate scandals that have also drawn scrutiny from regulators in Britain and United States. Those regulators still have their own investigations underway.

“By European standards, it’s a large fine,” said Nicolas Véron, a senior fellow at Bruegel, a research organization in Brussels. “It signals that the time when only the U.S. can impose big fines is probably over.”

At a news conference in Brussels, Joaquín Almunia, the European commissioner responsible for competition policy, said an investigation had uncovered a collusive scheme by traders at some of the world’s largest banks. Citigroup, JPMorgan Chase, Deutsche Bank, Royal Bank of Scotland and Société Générale were found to have improperly influenced the London interbank offered rate, or Libor, as it relates to the Japanese yen and the euro interbank offered rate, or Euribor.

“There is a big need for better supervision of financial markets in Europe,” said Falko Fecht, a professor at the Frankfurt School of Finance and Management. “We don’t have a single supervisor for financial markets. This is a flaw in the design of the banking union so far.”

The announcement on Wednesday means that for the first time two American institutions, Citigroup and JPMorgan Chase, will pay penalties in the rate-fixing investigations. But they will pay only about $200 million, combined — hardly a significant financial hit to banks with tens of billions of dollars in revenue a year.
And the activity under question by the European Union against the American banks only covered short time periods, the longest lasted about three months — not the sort of long-term manipulation that investigators could point to as evidence of an entrenched pattern of corruption. By way of comparison, some of the European banks were engaged in activity that went on for about three years.

Note EU-Digest: this action by the EU is a step in the right direction, but certainly not  satisfactory. When a person steals a package of gum in a grocery store they can be thrown into jail. The financial industry on the other hand has been able to steal and defraud  the Government and the Public for billions of euro's and basically got away with it. It is high time these crooks are not only asked to pay fines, but also that some of the principals responsible get thrown into jail.

Read more: Europe Sets Big Fines in Settling Libor Case - NYTimes.com

Germany - weather: Hurricane-strength storm threatens north Germany

Named Xaver by meteorologists, blue skies will turn black as the low pressure system arrives on Thursday from Greenland. It may well be the worst storm the north has seen since the 1960's.

Thursday morning will, meteorologist Thomas Ruppert from state weather service DWD said, see wind up to force 12 on the coast – the same level as a hurricane - and further inland around force 10 or 11.
Hamburg will be in the middle of the action, where high winds, biting cold and blizzards will reach intensity later in the afternoon.

This will be accompanied by freezing snow showers and coastal inlet water levels around 2.5 metres higher than normal. This bad weather will travel eastwards and inland, but lose power as it goes.Coastal areas are at risk of flooding.

“Storm tides would be a concern for sandy coasts,” said head of coast protection Dietmar Wienholdt. “The dykes are winter-ready” he said, adding that “they will stand a storm tide like 1962 or 1976.”

The south of the country will also experience gale-force blasts, especially in the mountains, although this will not be as bad as in the north, which will have to wait until Friday for the wild weather to calm down.

Read more: Hurricane-strength storm threatens north Germany - The Local

Italy: Without Berlusconi Italian Conservative Party is lost says expert

The Italian Senate has voted to expel former Prime Minister Silvio Berlusconi from parliament over his conviction for tax fraud. The 77-year-old politician could now face arrest over other criminal cases, as he has lost his immunity from prosecution. Ahead of the vote, Mr.Berlusconi warned, though, that he would remain in politics.

Mr.Berlusconi was convicted of tax fraud in October 2012. He will have to serve a one-year sentence, probably under house arrest - because of his age. Anna Momigliano, an American-educated Italian journalist, currently based in Milan with main interest in international politics and new media, talked to Voice of Russia about the consequences of the event.

According to Ms Momigliano, “it is extremely unlikely that Berlusconi will actually go to jail.”
“Even if you were a common person, in Italy you don’t go to jail that easily if you are over 70 years of age, and he has a very good lawyer. So, the personal consequences for Berlusconi will be very-very slight. He might face one year of house arrest, but even that is unlikely. The consequences mainly are political.

He has led the Italian Conservative Party for more than 20 years and the Conservative Party without him is lost – they are split, they are withdrawn from the Government and they really don’t know where to put their heads,” - Ms Momigliano explained.

Talking about the plausible impact of Berlusconi’s party withdrawal from the Parliament, Ms Momigliano said: “In the immediate future the coalition Government will survive, because some Parliament members of Berlusconi’s party have split from the party and kept supporting the Government. This means that the left-wing Prime Minister Enrico Letta still has the number to govern. That said, this Government isn’t going to last very long, most likely we will have elections soon. And this is, of course, bad for Italy, because the economy, as you know, is very bad here and we keep having elections every one or two years and, of course, this is not good for business.”

Ms Momigliano said that it is hard to say whether Berlusconi still enjoys the support, because “over the years analysts have constantly underestimated Berlusconi’s popularity among the larger public. My general impression is that now people are very tired, they are worried about the economy, so his support isn’t as strong as it used to be. But I would not underestimate that.”

Read more: Without Berlusconi Italian Conservative Party is lost – expert - Analysis - Panorama | Armenian news

Saudi Arabia: Putin Meets Saudi Intel Chief on Syria, Iran - by Ari Yasha

Russian President Vladimir Putin met with Saudi intelligence chief Prince Bandar Bin Sultan in Moscow on Tuesday. In talks the two reportedly focused on the Syrian crisis and Iran nuclear deal, while strengthening ties between Russia and Saudi Arabia.

The meeting comes as long-time US ally Egypt recently sealed a $4 billion arms deal with Russia largely funded by Saudi Arabia, which itself has experienced cooling relations with the US and reached out to Russia. In a November phone call Putin and Saudi King Abdullah vowed to advance bilateral cooperation.

During the course of talks the two discussed the "positive dynamics of the Iran nuclear program settlement," as well as the impact of Geneva II talks on Syria, as reported to Bloomberg by Putin's spokesman Dmitry Peskov.

According to Fyodor Lukyanov, head of the Council on Foreign and Defense Policy in Moscow, the Saudis are looking to diversify their foreign relations and are turning to Russia as the "most active player" on the Syria issue.

"Saudi Arabia is furious with the US for threatening to attack Syria and then not carrying that out, as well as for its rapprochement with Iran," comments Lukyanov, adding, "Saudi Arabia can help Russia with a resolution in Syria because if anyone can influence the Syrian opposition, it’s the Saudis, not the Americans.”

The two topics of Syria and Iran that dominated the talks are not unrelated, as the Saudis, who support the opposition forces, have been at odds with Iran over its support for Syrian President Bashar Assad.

Read more: Putin Meets Saudi Intel Chief on Syria, Iran - Global Agenda - News - Israel National News

Europe’s reaction to NSA spying ‘totally inadequate, no action, nothing more than words’

EU reaction to NSA spying inadequate

So far European governments reactions to the people’s anger about NSA spying on European Citizens has been totally inadequate, says Paul Murphy, Irish Member of the European Parliament from the Socialist Party in an interview with Russian TV station RT. He says this mainly is the result of the fact that most governments have put a lid on it, as the interests of big businesses prevails.

"What it illustrates", said Murphy,  "is the deep-rooted hypocrisy of the leaders of all countries of Europe and really around the world. Whereby they are happy to criticize other people spying on themselves, but they are all engaged in this, all of the major powers in the world are engaged in massive spying against each other. But also most importantly, states are involved in spying against their own people and other peoples around the world. I think what should come out from ordinary people across Europe is a clear message that we are opposed to the building of a security state, which is what’s happening, we are opposed to this massive surveillance of people and of elective representatives, and we demand people’s right to privacy".

"I think the response of the EU has been entirely inadequate", says Murphy, "and it’s being words and nothing more than words, while they continue, for example, with the negotiations on the EU-US free-trade agreement. I think it’s because they know the whole thing is full of hypocrisy and they know they are guilty probably as much as their technical capacities allows relative to the US. And I think it’s only through developing a movement and big pressure from below that the most important issue here – people’s, individuals’ rights of privacy, individual rights not to be spied upon, that that can prevail and can become a factor in the situation"

Basically the EU Commission and the EU parliament are sitting on their hands when it comes to properly handling the NSA spying affair on EU Citizens. It is  another example of why the confidence in the political establishment of the Europe Union has reached an all-time low.

EU-Digest

Ukraine: ‘Despite rumors of a coup, another Orange revolution in Ukraine is unlikely' — RT Op-Edge

Pro-western in Ukraine will find it hard to provoke a new revolution, particularly as a potential EU trade agreement would not affect the constitution, John Laughland, director of studies at the Institute of Democracy and Cooperation, told RT.

"I’m not convinced that the government will fall, though I’m in a long way away from the events in Ukraine. I think, unfortunately, that as long as Europe continues with its geopolitical project, which is to constitute itself as the center of gravity in Europe and to draw non-European countries into its orbit, to extend its sphere of influence as far as possible into Eastern Europe, and deep, of course, into historic Russia. As long as Europe continues this geopolitical program, these problems and tensions will continue. And of course they will particularly continue in Ukraine. Ukraine is the biggest prize, but it is also the most difficult prize. Other smaller countries like Georgia are fairly easy to take over. So as long as Europe continues with its march to the East, I think these tensions will continue. On the other hand, it’s not clear for how long Europe will be able to continue to exercise this fascination as it undoubtedly does in certain parts of Ukraine because everybody knows that European model itself is in deep crisis. Everybody knows that in southern Europe the euro has inflicted terrible economic damage, youth unemployment is over 50 percent in Spain, etc. Europe will cease to have attraction increasingly, at least for people who look at things factually rather than with emotions, as many people are doing. "

Read more: ‘Despite rumors of a coup, another Orange revolution in Ukraine is unlikely' — RT Op-Edge

Britain: Cameron irritates Brussels by pushing EU-China trade deal

British Prime Minister David Cameron arrived in China saying he would advocate a multi-billion-dollar free trade deal between Beijing and the European Union, stoking tensions with the EU executive which condemned the move as premature.

On a three-day visit with around 100 business people, the largest-ever British mission of its kind, Cameron said Britain was the most open Western country to Chinese investment and was well-placed to take advantage of China's market liberalisation.

"China's transformation is one of the defining facts of our lifetime [...] I see China's rise as an opportunity, not just for the people of this country but for Britain and the world," Cameron told reporters after meeting Premier Li Keqiang at the Great Hall of the People in Beijing.

He cast Britain as far more progressive on trade than other unnamed EU member states in remarks that stirred a growing spat with Brussels over the issue.

"Some in Europe and elsewhere see the world changing and want to shut China off behind a bamboo curtain of trade barriers," said Cameron. "Britain wants to tear those trade barriers down."

His line irritated the European Commission, which is privately understood to oppose such a move on the grounds that it risks flooding the 28-nation bloc with cheap Chinese imports.

"We believe that it is premature at this stage to discuss a free trade agreement with China," Alexandre Polack, a spokesman for the EU executive, told reporters.

Read more:Cameron irritates Brussels by pushing EU-China trade deal | EurActiv

European Space Agency Collaborates On Chinese Moon Mission - by Brett Smith

Europe cooperating Chinese Moon Miision

While China and Western nations may be entangled in a daily political struggle, scientists from the European Space Agency (ESA) are extending their resources to assist their Chinese counterparts on the upcoming Chang’e 3 Moon mission.

The Chinese mission is slated to launch from Earth in early December and land a scientific rover on the Moon. The entire ESA side of the operation will be run from the Estrack Control Centre in ESA’s European Space Operations Centre in Darmstadt, Germany.

“We are proud that the expertise of our ground station and flight dynamics teams and the sophisticated technologies of our worldwide Estrack network can assist China to deliver a scientifically important lander and rover to the Moon,” said Thomas Reiter, a director of human spaceflight and operations for the ESA.“Whether for human or robotic missions, international cooperation like this is necessary for the future exploration of planets, moons and asteroids, benefitting everyone.”

Immediately after launch on Dec. 1, ESA’s station in Kourou, French Guiana, will begin to receive signals from the rocket and send commands on behalf of the Chinese control center. The Chang’e craft will then be tracked by the ESA through its entry into lunar orbit around Dec. 6 and until just before its descent to the Moon’s surface at around mid-day on Dec. 14. The landing and rover operations on the Moon will be controlled through two tracking stations based in China.

During the landing procedure, ESA facilities will record the craft’s radio signals, which will assist the Chinese in reconstructing the flight for future reference.

“After the lander and rover are on the surface, we will use our 35-meter diameter deep-space antennas at Cebreros, Spain, and New Norcia, Australia, to provide ‘delta-DOR’ location measurement,” said Erik Soerensen, a mission tracker at the ESA. “Using this delta-DOR technique, you can compute locations with extreme accuracy, which will help our Chinese colleagues to determine the precise location of the lander.”

Read more: ESA Collaborates On Chinese Moon Mission - Space News - redOrbit

EU: Why the World Needs Europe - byTony Fernandes

Unity not Eurosceptism

For some time already, wherever you are in the world, one cannot escape the question asked by many political, media and financial observers: "What is going to happen to Europe?" Source of sarcasm for some, of anxiety for many others, the continent's economic and political situation appears critical.

On the one hand, observers lament an economy which is deeply handicapped by a public debt which exceeds the continent's GDP and by unemployment rates which have become untenably high. On the other, the concern felt by observers is also triggered by a political analysis of the European situation. Frequent differences of opinion and hesitation on the part of European leaders in past years have damaged the image of the continent as much as economic problems have.

Yet, when you manage a foreign company, the image that Europe portrays is different in many respects. The continent is the most important foreign investor in many regions of the world, including South-East Asia. Of course, the European market is no longer considered dynamic but it still remains huge; the first common market in the world with 600 million people. Its citizens have considerable purchasing power, especially compared to other regions or countries which have higher growth rates.

When GDP in France and Germany averaged respectively 0% and 0.7% in 2012 compared to 6.2% and 5.6% in Indonesia and Malaysia, purchasing power per capita in these countries was respectively US$35,000 and US$40,000, compared to US$4,000 and US$15,000.

Europe remains synonymous with high-level research and strong value-added goods. A reputation based upon the transfer of skills and technologies by European industrial groups to their client countries. Of course, this can be a source of frustration for the country where such technologies are developed but the day this transfer of skills and technologies no longer occurs, or worse, occurs in the opposite direction, Europeans will have really lost the game!

When one has such comparative advantages, one shouldn't complain let alone be afraid of the future! The real problem in Europe is that its Member States seem to have lost any all ambition to act on the international stage, either individually and as a whole. You only have to observe the proliferation of negative and resigned speeches and the rise of xenophobic parties with protectionist economic programs to be convinced. Leaders and voters must be persuaded of the strength of their political project.

 By deciding to unite towards a common future when an entire part of the world was only starting to awaken, they have been a role model for the world for the past sixty years. In 1957, when Europeans created the first common market, the European Economic Community, they became a source of inspiration for the Asian world. Ten years later, the ASEAN was created, which has since succeeded in both promoting economic prosperity and strengthening political stability within the region.

When Europeans rose above their differences and succeeded in setting up the unprecedented industrial project which today produces Airbus aircraft, their partners were both envious and admiring. But this is not enough. Defense and aeronautics cannot be the sole sectors to carry the integration process forward when so much progress remains to be made in the fields of new communications technologies, renewable energy, health, and many others. We need to increase the number of pan-European industrial partnerships, invest more in research, and streamline administrative and fiscal systems. European leaders are aware of the challenges that Europe faces, they need to start tackling them.

Europe holds its destiny in its own hands. No one will come to its rescue and no one would understand if the continent did not fight for its model, liberal, democratic and based on a common vision. The crisis it is experiencing must form the starting point for a new strategy to push this model forward because, beyond its own project, Europe represents the success of a model for all countries in transition.

But by displaying weakness when faced by the main economic, diplomatic and environmental challenges of this century, Europe is likely to slowly marginalize itself, slipping from the center of the global economy toward its periphery. At a time when the crisis is now hitting the world economy as a whole, there is an urgent need for stability and leadership. Europe must contribute to this, for its own sake and the world's.

Read more: Why the World Needs Europe | Tony Fernandes

The Netherlands: Is the Netherlands' Zwarte Piet (Black Pete) Racist ? - John McWhorter

Sinterklaas and Black Pete

They’ve been on my living room shelf for a year now — wrapped chocolate candy figurines from the Netherlands of Zwarte Piet, or Black Pete. A friend who lived there for a while gave them to me in irony. Black Pete is a wooly-headed little “Negro” caricature, and in the Netherlands he is as cherished a part of the holiday scenery as elves are here in the U.S.

In fact, Zwarte Piets are depicted as elves, helping out Santa.

There is a growing movement over there to ban Black Pete. Predictably, there are those who think a mountain is made out of a molehill by people who just need to get a sense of humor. Judging the matter from over here in the U.S. is tricky, though. There are practices on race that most would consider repulsive in this country which, when done elsewhere, I am inclined to give a pass.

For example, Finnish friends have told me of attending parties in the ’90s where everybody dressed up as “black,” right down to blackface and wigs. Many will be reminded of stories of college fraternities here condemned for having “ghetto” parties, blacking up and lampooning life among black people in the inner city.

With America’s history as well as its messy present when it comes to race, clowning around in blackface at a party is obviously callous and ignorant.

Black Pete, then, is not the Dutch’s version of a Finnish teen bouncing to Jay-Z in an Afro wig. Black Pete in 2013 is a lame, thoughtless thing, carrying an implication that all of that slavery and servitude and imperialism was some kind of cartoon. Black Hollanders often feel the same way, in a country where blacks from former colonies are overrepresented in housing projects.

Who are we to judge, some might ask. I would say that a country with our colonialist history is no less responsible for judging such matters than other ones. We’ll never eradicate racism entirely. But surely we can do something about white men made up as “Negroes” dancing down the street at Christmastime — which would never happen even in our non-post-racial country.

Read more: John McWhorter: Is the Netherlands' Zwarte Piet (Black Pete) Racist? | TIME.com

Amazon Tests Drones for Same-Day Parcel Delivery, Bezos Says

Amazon's Chief Executive Zients and Julie Bataille, spokeswoman for the federal agency charged with developing and operating HealthCare.gov, said the website now works "smoothly for the vast majority of users." 

The administration said the site can now handle 50,000 concurrent users and 800,000 consumer visits a day -- two capacity goals for the portal that date back to its launch two months ago. And Bataille said the site was now allowing "in the zone of 80%" of users to successfully complete a health care enrollment.

In short, after a concerted effort to improve HealthCare.gov, the administration said Sunday that the online Obamacare enrollment portal now essentially meets all of the previously stated goals for the website.

Read more: Amazon Tests Drones for Same-Day Parcel Delivery, Bezos Says - Bloomberg

US Healthcare Program: Obamacare website now working smoothly

There is a "night and day" difference between HealthCare.gov on October 1 and the same site on December 1, Jeff Zients, the top administration official responsible for improving the problem-plagued Obamacare enrollment site, said Sunday on a conference call with reporters.

Zients and Julie Bataille, spokeswoman for the federal agency charged with developing and operating HealthCare.gov, said the website now works "smoothly for the vast majority of users." The administration said the site can now handle 50,000 concurrent users and 800,000 consumer visits a day -- two capacity goals for the portal that date back to its launch two months ago. And Bataille said the site was now allowing "in the zone of 80%" of users to successfully complete a health care enrollment.

In short, after a concerted effort to improve HealthCare.gov, the administration said Sunday that the online Obamacare enrollment portal now essentially meets all of the previously stated goals for the website.

Read more: Administration: Obamacare website working smoothly - CNN.com

Germany - USA: Aldi grocery store: best in America, related toTrader Joe’s - by Rebecca Schuman

Chances are that you have never set foot inside the best grocery store in America: Aldi. And even if you are lucky enough to be in one of the 32 states where Aldi is, perhaps you were put-off by the cardboard boxes in lieu of shelves, or the row upon row of suspicious-looking off-brands. What is this place? Why do I have to put down a deposit to check out a cart? What is the weird giant shelf by the exit? And what do you mean, I have to pay for a bag?

Calm your hormones, meine Schatzis: Aldi, which is short for Albrecht Discount, is the American incarnation of a German grocery chain that is so ubiquitous in the Vaterland that almost 90 percent of Germans shop there. (Not all German imports are luxury cars, beer, and super-cool glasses.)

Aldi is part of a charming subset of Teutonic trade: the brother-run company that cleaves in twain. Shoe aficionados already know the story of the Dassler brothers, Adolf and Rudolf, whose bitter feud resulted in the creation of Adidas and Puma. (Germans pronounce Adidas differently—some might say correctly—AH-dee-das, from Adi Dassler.) But outside Germany, few know about grocery-store kingpins Karl and Theo Albrecht (who was kidnapped in 1971!)—even though Karl, with a reported net worth of more than 17 billion euros, is the richest man in Germany (Theo’s descendants are a close second).

The Brüder founded their discount-store empire together. A disagreement in 1960 over selling cigarettes hastened a partition, and an epic game of grocery-store Risk: Theo would rename his business Aldi Nord, and would control territories north of the Rhine, plus a healthy chunk of Europe. Karl would head up Aldi Süd, and get southern Germany, more of Europe, plus the U.K. and Ireland. But both companies operate stores in the United States—Aldi Süd operates as Aldi, and Aldi Nord as the now ubiquitous Trader Joe’s.

This is why I am hoping for Aldi’s rousing success in Amiland: so that more of our stores, and our culture in general, will incorporate such Teutonic efficiency. First the cost-savings of bagging our own groceries—then the ubiquitous bicycle lanes; immaculate, punctual public transportation; and, finally, required paid vacation and parental leave. It would be ausgezeichnet indeed, meine Lieben.

 Read more: Aldi grocery store: best in America, related to Trader Joe’s.

Wind Power Could Supply 18% of World’s Power by 2050 says IEA - by Sonal Patel

Up to 18% of the world’s electricity could be generated with wind energy by 2050, but the massive jump from 2.6% today would require the nearly 300 GW of current wind capacity worldwide to increase eight- to tenfold and cost nearly $150 billion a year, the International Energy Agency (IEA) said in an updated assessment of the world’s wind power.

The Paris-based autonomous energy agency now sees a much larger penetration of wind power than the 12% by 2050 share forecast in its previous 2009 edition of the “Technology Roadmap: Wind Energy.” Forecasts put China as the world’s future wind power leader, overtaking European members of the Organisation for Economic Co-operation and Development by about 2020 or 2025, with the U.S. ranked third.

But IEA Executive Director Maria van der Hoeven cautioned that much more remains to be done before that increased share of wind is achieved, so that a global energy-related carbon dioxide target of 50% below current levels can be reached by 2050. “There is a continuing need for improved technology,” she said. “Increasing levels of low-cost wind still require predictable, supportive regulatory environments, and appropriate market designs. The challenges of integrating higher levels of variable wind power into the grid must be tackled. And for offshore wind—still at the early stages of the deployment journey—much remains to be done to develop appropriate large-scale systems and to reduce costs.”

Since 2008, the report notes, wind power deployment has more than doubled on the back of technological developments that have boosted energy yields and reduced operation and maintenance costs. Today, wind power provides 30% of Denmark’s total generation, 20% of Portugal’s, and 18% of Spain’s. The report finds that wind power has only received 2% of the world’s public energy research and development funding. Yet, costs have fallen: Land-based wind power generation costs range from $60/MWh to $130/MWh at most sites, and it can be competitive “where wind resources and financing conditions are favorable,” the IEA says, but “it still requires support in most countries.”

Trends in the world’s wind sector noted by the agency include the large-scale deployment of offshore wind farms (though the IEA points out this is limited mostly to Europe), an increasing number of turbines being installed in cold climates, and a rise in repowering old wind turbines with more modern and productive equipment. Repowering in particular is slated to grow tremendously over the next five years, increasing power generation at repowered sites from 1.5 TWh to 8.2 TWh by 2020.

Wind market shares have also seen dramatic changes over the last five years, though most wind turbine manufacturers are concentrated in six countries: the U.S., Denmark, Germany, Spain, India, and China. China’s six largest wind companies alone have exceeded the majority 20% market share in recent years.

Read more: IEA: Wind Power Could Supply 18% of World’s Power by 2050 | POWER Magazine

Terrorism - Suriname: Bouterse and Hezbollah possible threat to US national security

Recently  the BBC reported that Dino Bouterse, the son of Suriname President Desi Bouterse, is also being charged with attempting to provide material support to terrorist organization Hezbollah. The United States Drug Enforcement Administration claims that they have evidence showing that Bouterse was paid millions of dollars for a Hezbollah military base in Suriname and for providing them with weapons. The DEA claims that Hezbollah was planning attacks on the U.S. and the Netherlands. The Netherlands is the former colonial ruler of Suriname.

In August, Dino Bouterse was handed over to U.S. officials by Panamanian authorities. A U.S. federal indictment alleges that Bouterse worked with Edmund Quincy Muntslag a.k.a "Blue" to smuggle cocaine into the United States starting in or about December of 2011. In late June, Bouterse was caught smuggling a suitcase filled with 10 kilograms (22 pounds) of cocaine and brandishing a anti-tank weapon aboard a commercial flight from Suriname to the Caribbean. Bouterse is facing a life sentence for the drugs and weapons he was caught with. On top of that he is facing a 15 year sentence for aiding terrorist organization Hezbollah.

The DEA claims that they have recorded meetings between Bouterse and undercover agents posing as Hezbollah fighters. The meetings took place in Panama and Greece. During these meetings Bouterse accepted a $2 million payment, with the promise that he would help Hezbollah fighters establish themselves in Suriname, give them Suriname passports, supply them with surface-to-air missiles and other weapons. He even promised that he would provide them with a list of weapons that they would be able to order via him. This isn't the first time that Bouterse has been arrested for international crimes. In 2005, he was sentenced to serve eight years in a Suriname prison after being found guilty of trafficking drugs, weapons and stolen cars. After serving only three years of his sentence, he was released for good behavior.

"Alleged criminals like [Dino] Bouterse and his facilitators pose a direct threat to the safety and security of the United States," said Michelle Leonhart. Leonhart is the Administrator of the U.S. Drug Enforcement Administration.

In 2010, Bouterse's father, Dési Bouterse was elected president of Suriname. After the election, Bouterse' father named him the director of Suriname's Counter Terrorist Unit. In a nasty twist of fate, the DEA also has hard evidence proving that President Bouterse was in direct contact with the regions top convicted drug trafficker, Roger Khan. The satellite phone records of Khan show President Bouterse's cell phone number listed numerous times. The phone calls took place towards the end of 2005 until mid-June of 2006.

Read more: Bouterse and Hezbollah possible threat to US national security - Minneapolis Community Activism | Examiner.com

The Netherlands: Does the Netherlands risk losing foreign investment to Britain' if letter box companies are closed down?

The Netherlands may lose its advantage when it comes to attracting foreign investment because other countries such as Britain are making their tax regimes more attractive, says the Financieele Dagblad in one of their reports recently.

The paper bases its claim on interviews with lobby groups and tax advisers.

For example, Amcham, the American Chamber of Commerce in the Netherlands, has warned deputy finance minister Frans Weekers that American firms are regularly opting for London rather than the Netherlands, the paper says.

Both new firms and existing companies such as holdings are turning to Britain.

Amcham points out that while three-quarters of the US capital which comes into the Netherlands moves out again via letterbox companies, the money which remains is more than French, German and Belgian investments combined.

Note EU-Digest: In their report Het Financiele Dagblad seems to be lobbying  for Tax Evading companies and their advisers. They fail to report that Dutch laws are completely different from British laws when it concerns tax evasion and Letter-Box companies. Letter-Box companies which are closed down can only go to Britain or any other country in the EU unless they comply with local  tax laws. Let's hope the EU Commission does not fall asleep on this issue and ends the opportunities created for multi-nationals to evade taxes through legal loopholes in the EU.

Read more: DutchNews.nl - 'The Netherlands risks losing foreign investment to Britain'

The Netherlands - while poor segments of Dutch population suffer Government still legally allowing 20,000 letter-box companies to circumvent taxation

The Netherlands harboring  more than 20.000 letter box companies

A White House factsheet in 2009 reported. "Nearly one-third of all foreign profits reported by US corporations in 2003 came from just three small, low-tax countries: Bermuda, the Netherlands, and Ireland."

Like the Queen in Shakespeare's 'Hamlet' who protested that 'The lady doth protest too much, methinks,' the Dutch government hypocritically objected to the Netherlands being dubbed "a tax haven" and the White House agreed and deleted the line. 

The Dutch tax haven, has now more than  20,000 letter-box companies and in recent years even Facebook joined U2, the popular Irish rock group, to circumvent the tax system.. 

The Netherlands also hosts thousands of foreign financial vehicles. Bloomberg reports that a bookkeeper’s home office in Amsterdam also doubles as the headquarters for a Yahoo! Inc. offshore unit. 

It is a scandal that deficit-strapped Holland is raising retirement ages and taxes on the working classes while the Netherlands’ Government of PM Rutte and coalition partner Samson continues to allow their country to be a €10.2trillion conduit on the global tax-avoiding network. 

 

Bloomberg says that attracted by the Netherlands’ lenient conservative policies and and an extensive network of tax treaties, companies such as Yahoo, Google, Merck & Co and Dell have moved profits through the Netherlands

Using techniques with nicknames such as the “Dutch Sandwich,” multinational companies routed €10.2trillion in 2010 through 14,300 Dutch “special financial units,” according to the Dutch Central Bank. Such units often only exist on paper, as is allowed by Dutch  law.

Google, IBM and Italian oil and gas group ENI head the list of companies using letter-box companies to cut their Dutch tax bills to between 0 and 5%, the Volkskrant daily said in an article.

According to theDutch  Financieele Dagblad , French state companies are also among those using the Netherlands to cut their tax bills.

In the meantime the Dutch Governmen has been dancing around the subject.  

Frans Weekers, Dutch deputy finance minister, said the controversy over the letterbox companies had damaged the Netherlands’ investment climate. “Over the past 10 years the trend has been for the number of letterbox companies in the Netherlands to keep growing. I want to turn that trend around,” Weekers told The Financial Times. “I see the Netherlands being portrayed in a bad light. I don’t want to be portrayed in a bad light." 

Recently the Dutch government said tax treaties with Zambia and 22 other poor countries will be revised to allow the incorporation of anti-abuse clauses where necessary, but has not said a word about the major players which have letter box companies registered in the Netherlands and are involved in these tax evading schemes 

The European Commission has now said it will attempt to close a loophole that allows companies to cut their tax bill, a top official said on Monday, but the EU executive will first need to persuade member countries to back the change.

The commission wants rules to prevent companies setting up “letter-box subsidiaries” in countries solely to qualify for a softer tax regime and cut their bill.

Algirdas Semeta, the EU’s taxation commissioner, wants to insert an anti-abuse clause by the end of next year, allowing authorities to target artificial “parent-subsidiary” schemes that flout the spirit of the tax code.

“When our rules are abused to avoid paying any tax at all, then we need to adjust them,” he said. “Today’s proposal will ensure that the spirit, as well as the letter, of our law is respected.”

Semeta declined to name countries or companies that exploited the loophole but said that billions of euros were at stake.

 EU-Digest

Germany: Merkel reaches coalition deal with Social Democrats - by Jessica SALTZ

Berlin Brandenburg Tor

German Chancellor Angela Merkel agreed to form a coalition government with the Social Democrats early on Wednesday morning, two months after her conservative party won elections but fell short of a full majority.

Germany’s two biggest political forces negotiated through the night and reached a breakthrough at about 5am (4am GMT).

Two months after Merkel’s election victory and a month after coalition talks began, the agreement, if ratified, would enable her to form a government by Christmas – if the SPD gets approval from its 474,000 party members.

The outcome of the rank-and-file postal ballot remains far from certain because many SPD members reject the notion of their traditionally blue-collar party again governing in the shadow of Merkel, as it last did 2005-09.

After that uneasy political marriage, the SPD scored two humiliating electoral defeats in a row and won less than 26% against the conservatives' nearly 42% in the September 22 ballot.

In the protracted talks, the SPD scored a major victory on its core demand, a minimum wage of 8.50 euros ($11.50) per hour from early 2015.

The move aims to narrow a wealth gap brought about by decade-old labour reforms but should also cheer critics in the US, the IMF and Europe who want the export-power to stimulate domestic demand and correct its lopsided trade balance.

The SPD also pushed through a demand for a 30% women's quota on the boards of listed companies from 2016, and an easing of a ban on dual nationality, a key demand of Germany's large Turkish immigrant community, sources said.

Both sides also agreed on pension increases to protect retirees in rapidly ageing Germany, where many elderly are growing scared of suffering poverty in old age.

Read more: Merkel reaches coalition deal with Social Democrats - GERMANY - FRANCE 24

Russia still wielding its power over eastern Europe - by Suzanne Lynch

As political leaders gathered for dinner in the chilly Lithuanian capital of Vilnius yesterday evening, the joke circulating among officials was whether Russia would cut off gas supply to this corner of the Baltics, a region almost entirely dependent on Russia for energy. 

Following Ukraine’s withdrawal from negotiations with the European Union, the relationship between Europe and Russia has emerged as the real story of the Eastern Partnership Summit. 

Ukraine’s prime minister Mykola Azarov told its parliament this week that the decision was a question of “economic sovereignty”, complaining the EU had failed to offer adequate compensation for the loss of trade that would arise from the closure of Russian markets if it signed the deal.

 Read more: Russia still wielding its power over eastern Europe - European News | Latest News from Across Europe | The Irish Times - Fri, Nov 29, 2013

European Aircraft Industry: Airbus A380 Gets a New Lease on Life - Justin Bachman

The world’s largest passenger airplane will live to fight another day. Airbus’s A380 superjumbo got a fresh 50-jet order from Emirates Airline, the Dubai flag carrier, on Sunday at the Dubai Air Show. The order was the first of the year for the twin-deck airplane, which has struggled with weak demand from airlines, which must struggle to fit such a large plane into their networks. Emirates is the largest buyer of the A380, with 39 in service and 101 now on order.

A U.K. leasing company that aims to purchase 20 of the jets says that’s not nearly enough. Doric Lease, the largest lessor of the A380, says the jet needs to fly with about 630 seats to improve the plane’s efficiency. It is pushing Airbus to standardize the seat layout on the jet, which makes it simpler to transfer the plane from one fleet to another, so that when carriers such as Singapore and Emirates start to shed “older” A380s in a few years, Doric can place the jets with a new operator quickly.

Read more: How the Airbus A380 Got a New Lease on Life - Businessweek

US Military Spending: US spends more on defense annually than the next 10 countries combined but Poll shows 37% believe that is not enough

The United States spends more on defense annually than the next 10 countries combined, but more voters than ever don’t think that’s enough.

Thirty-seven percent (37%) of Likely U.S. Voters believe the United States does not spend enough on the military and national security, according to a new Rasmussen Reports national telephone survey.

That’s the highest level measured since tracking began in February 2011. Just 29% now say the United States spends too much money in this area, while nearly as many (27%) say it spends about the right amount. (To see survey question wording, click here.)

Read more: 37% Believe U.S. Doesn’t Spend Enough on Military, National Security - Rasmussen Reports™

Poll: Large majority of people polled believe US/NSA will never stop spying on friendly nations

In a recent poll taken by EU-Digest related to the US spying disclosures, including spying on friendly nation and heads of state,  the majority of the people polled said they were sure the US/NSA would continue these practices..

The poll also showed a majority of those polled believe the EU is not taking a strong stand again the US growing spying activities..

The latest EU-Digest poll to run throughout the month of December is about the potential hazards of oil exploration in the Arctic.

Should oil exploration be allowed in the Arctic ?

EU-Digest