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  • 7
    May
    2013
    11:37am, EDT

    Muslim Brotherhood gains more influence in limited Egypt cabinet reshuffle

    Oliver Weiken / EPA

    Egyptian President Mohamed Morsi gesturing during an interview Saturday.

    By Charlene Gubash, Producer, NBC News

    CAIRO - Islamist members of the Muslim Brotherhood were given greater influence in Egypt’s government on Tuesday when President Mohamed Morsi reshuffled his cabinet in response to demands for change.

    Opposition parties and many citizens have complained of mismanagement and have urged changes, including the removal of Prime Minister Hesham Kandil.

    The limited reshuffle is unlikely to satisfy his opponents or help build political consensus in the country, which is still struggling to establish a stable system in the wake of the 2011 Arab Spring revolution that removed Hosni Mubarak from power.

    Two of the ousted ministers were involved in crucial talks with the IMF over a $4.8 billion loan to Egypt, Reuters reported.

    Nine new ministers were named, including Amr Darrag, a senior official in the Muslim Brotherhood movement’s Freedom and Justice Party, who was appointed planning minister, according to Reuters.

    Another Brotherhood member, Yehya Hamed, was named investment minister, and Ahmed el-Gezawi, an FJP member, took over agriculture, lifting the movement's share to around a third of the cabinet's 35 portfolios.

    Fayyad Abdel Moneim, a specialist in Islamic economics, was appointed as finance minister, replacing Al-Mursi Al-Sayed Hegaz, Reuters said.

    Amr Moussa, Egypt's former foreign minister, former head of the Arab League and currently one of the leaders of the opposition National Salvation Front, said in a statement: “The cabinet reshuffle has not added or changed much. We will need another reshuffle soon."

    “We need [a] national-unity-based government with high expertise so people can trust it. The challenges are huge," he added. "Therefore the current government will not be able to handle the situation. The current reshuffle reflects another complete Brotherhood-ization. Wouldn't it have been more useful to take a bigger step towards national cooperation and unity?”

    Morsi announced on April 20 that he would carry out the reshuffle to replace a government widely criticized for failing to get the economy moving nine months into his presidency.

    "The reshuffle is unlikely to signal any real shift in policy, particularly from an economic perspective," Said Hirsh, a London-based economist, told Reuters. "If anything, it deals a blow to demands for political consensus which the government seems to have ignored." 

    Reuters and NBC News' Alastair Jamieson contributed to this report.

    Related:

    • Egyptians fear wave of vigilantism
    • Some Egyptians warm to jailed former president Mubarak ahead of retrial
    • Cairo women reveal horror of sex assault

    20 comments

    I'm still hoping that the Egyptian people can rid themselves of the Muslim Brotherhood.

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    Explore related topics: egypt, muslim-brotherhood, cabinet, government, reshuffle, islamist, cairo, featured, charlene-gubash, mohammed-morsi
  • 27
    Apr
    2013
    2:21pm, EDT

    Italian politician Enrico Letta names new coalition government

    Domenico Stinellis / AP

    Italian Premier-designate Enrico Letta speaks during a press conference at the Quirinale Presidential Palace in Rome, Saturday, April 27, 2013.

    By James McKenzie and Gavin Jones, Reuters

    Italian center-left politician Enrico Letta said on Saturday he had won support of other parties to form a coalition government that will include one of former prime minister Silvio Berlusconi's closest allies as deputy prime minister.

    Letta met President Giorgio Napolitano after talks with Berlusconi and leaders of his center-right People of Freedom (PDL) party to confirm that he had reached an accord which would clear the way for a government to be formed.

    "I hope that this government can get to work quickly in the spirit of fervent cooperation and without any prejudice or conflict," Napolitano told reporters.

    PDL secretary Angelino Alfano will be deputy prime minister and interior minister, giving the center-right a powerful voice at the heart of the new government.

    Bank of Italy director general Fabrizio Saccomanni will take the key economy ministry portfolio and former European Commissioner Emma Bonino will be foreign minister.

    The government, which Letta said would contain a record number of women ministers, will be sworn in at 5:30 a.m. EDT on Sunday and Letta is expected to go before parliament to seek a vote of confidence on Monday.

    Letta, 46, the deputy leader of the center-left Democratic Party (PD), spent more than two hours on Saturday in talks with Berlusconi, who will not be a member of the government but is likely to play an important backstage role.

    Letta is on the right of the PD and the nephew of one of Berlusconi's closest aides.

    Agreement had been held up by wrangling over ministerial posts and policy differences, notably over Berlusconi's demand to scrap the unpopular IMU housing tax, a move that would blow an 8 billion euro hole in this year's budget plans.

    Italy, the euro zone's third largest economy, has been without an effective government for months, with the long post-election deadlock holding up any concerted effort to end a recession set to become the longest since World War Two.

    Letta received some encouragement late on Friday when the ratings agency Moody's kept its rating on Italian government debt unchanged at Baa2 because low interest rates were making it possible to buy time to implement much-needed reforms.

    Bond yields have fallen to their lowest in more than two years as investors hope for enough stability to help Italy revive its economy and gradually tackle its large public debt.

    However, Moody's also said medium-term growth prospects were weak and forecast the economy would shrink by 1.8 percent this year, compounding more than two decades of stagnation

    Letta has said his priorities will be boosting the economy and tackling unemployment, restoring confidence in Italy's discredited political institutions and trying to turn Europe away from austerity to focus more on growth and investment.


    Follow @NBCNewsWorld

    On paper, the priorities laid out by Letta fit in well with proposals from Berlusconi's camp, which has attacked the austerity policies of outgoing prime minister Mario Monti.

    Berlusconi, in the middle of legal battles over a tax fraud conviction and charges of paying for sex with a minor, had pressed for the cabinet to include close political allies and had opposed the inclusion of technocrats.

    In the event, however, several of the big ministries were led by non-political figures.

    As well as Saccomanni at the economy ministry, Anna Maria Cancellieri, the former police official who served as interior minister under Monti took the justice portfolio, while the labor ministry went to Enrico Giovannini, head of statistics agency ISTAT.

    Monti's centrist movement Civic Choice obtained a token presence in the government, with Mario Mauro taking the defense ministry.

    Letta has had to fight strong resistance in parts of the Democratic Party to an accord with Berlusconi, its sworn enemy for almost 20 years.

    The center-left, which threw away a 10-point lead before the elections poll and now trails Berlusconi by more than five points, according to a poll by the SWG institute on Friday.

    The other main force in parliament, Beppe Grillo's anti-establishment 5-Star Movement, has ruled out taking part in a government made up of the two main parties. He called the right-left coalition "an orgy worthy of the best of bunga bunga", a reference to Berlusconi's parties at his private villas.

    Related:

    • Finally! Italy set for new premier after two months without leader
    • Italy's Berlusconi says he would be PM candidate if new vote held
    • Fallen Italian nobles turn castles into B&Bs


    Copyright 2013 Thomson Reuters. Click for restrictions.

    3 comments

    Is this new government also sponosred by the ECB and NWO?

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    Explore related topics: italy, government, coalition, silvio-berlusconi, enrico-letta
  • 14
    Mar
    2013
    10:28am, EDT

    Benjamin Netanyahu's Israeli coalition may not be to his liking

    Ronen Zvulun / Reuters, file

    Yair Lapid, right, stands behind Israeli President Shimon Peres, who is seated next to Benjamin Netanyahu, at a reception in Jerusalem on Feb. 5. Lapid, a relative newcomer, has been able to gain numerous concessions from the veteran Netanyahu as the latter struggled to form a coalition government.

    By Martin Fletcher, Correspondent, NBC News

    News analysis

    TEL AVIV -- It is no surprise that Benjamin Netanyahu will be Israel's prime minister for the third time. The makeup of his Cabinet, however, may be jarring, especially to him.

    Two days before the deadline imposed by election rules, he overcame the final obstacles and reached a compromise with Yair Lapid, the political novice who heads the second-largest party in the Israeli Knesset.

    The agreement, which is expected to be signed Thursday, gives his coalition 68 seats out of 120 in the new parliament, which should be sworn in next week.

    Lapid may be a novice, but analysts here say he achieved major victories over the prime minister. He demanded that there be a maximum of 20 Cabinet ministers instead of the bloated 30.

    Struggling to find seats for his party members, Netanyahu fought tooth and nail against Lapid and lost. There are now likely to be 22, including Netanyahu.

    Netanyahu was determined to keep the education portfolio for his own party. Lapid insisted on having it and appears to have won.

    It didn't all go Lapid's way, but the message to the voters is clear: Lapid is the man to watch. Indeed, the former television host has already let it be known that he wants to be Israel's next prime minister.

    If Lapid, and for other reasons Naftali Bennett and Avigdor Lieberman, were the winners in the Jan. 22 elections, the losers, to a large extent, were the ultra-orthodox religious parties. The Haredim, as they are known here, who form 10 percent of Israel's population and are by far the fastest-growing group, have no seat at the Cabinet table.

    That means the government has the opportunity to cut the funds devoted to ultra-orthodox institutions such as their study yeshivas and schools, which in the 2012 education budget totaled close to $1 billion.

    Large state subsidies go to their traditionally large families and fund the men who study the Torah full time. These are some of the issues that upset Lapid and his voters, and that now, as Israel's minister of finance, he would have an opportunity to change. That's why control of the education ministry was so important to him: Most yeshiva funding goes through that ministry.

    Bad blood
    This is not what Netanyahu wanted. He wanted his usual rightist/ultra-orthodox coalition. Instead, through failed brinksmanship he ended up with exactly the opposite: a coalition of his rightist party, Likud-Beitenu, with the left and center, as well as with his natural partner, another new young politician, Naftali Bennett, who leads a rightist party that coordinated every move with Yair Lapid.

    Blame the wife. That's what the analysts here say. Bennett, who was once Netanyau's chief of staff, had a major falling out with Sara Netanyahu, ending in bad blood between him and the prime minister.

    The natural coalition after the January elections was between the two rightist parties, Netanyahu's 31 seats and Bennett's 12 seats, which would have guaranteed them power if allied with the ultra-orthodox parties. Experts say Netanyahu should have drafted Bennett to the cause immediately.

    Instead Netanyahu miscalculated and, reportedly because of personal animus, tried to form the basis of a government without him.

    That drove Bennett into the arms of Lapid, where he stayed. The two new young leaders displayed a virtue rare in politics: loyalty to an ideological opponent, based on the power of their word.

    Result: Netanyahu has what he most wants, the position of prime minister. But he has the Cabinet that he least wants. A rocky term awaits him.

    NBC News' Martin Fletcher is the author of "The List,""Breaking News" and "Walking Israel."

    Related:

    'A Palestinian Rosa Parks is needed': Israel's segregated buses spark outrage

    A $1 billion bet on peace: Qatar funds huge Palestinian settlement in West Bank

    Full Israel coverage from NBC News


    58 comments

    Perhaps this will lead to REAL and PRODUCTIVE NEGOTIATIONS with the P.L.O and Hamas...In the West Bank and Gaza...We have had nothing but BIBI'S Posturing for years ..Pretending to listen..Now he might dig the Orthodox gunk outta his ears and Listen to whats happening in his Own Nation...Perhaps...P …

    Show more
    Explore related topics: israel, politics, analysis, government, coalition, featured, netanyahu, knesset, martin-fletcher, lapid
  • 6
    Feb
    2013
    6:34pm, EST

    Tunisia to form new government, PM says

     

    Anis Mili / Reuters

    Tunisian protesters clash with riot police during a demonstration after the death of Tunisian opposition leader Chokri Belaid, outside the Interior ministry in Tunis on Feb. 6, 2013. Tunisia's secular opposition Popular Front said it was pulling out of the constituent assembly charged with writing a constitution after an opposition politician was killed on Wednesday.

    By Tarek Amara, Reuters

    Published at 6:30 p.m. ET: TUNIS -- Tunisia's ruling Islamists dissolved the government on Wednesday and promised rapid elections in a bid to calm the biggest street protests since the revolution two years ago, sparked by the killing of an opposition leader.

    The prime minister's announcement that an interim cabinet of technocrats would replace his Islamist-led coalition came at the end of a day which had begun with the gunning down of Chokri Belaid, a left-wing lawyer with a modest political following but who spoke for many who fear religious radicals are stifling freedoms won in the first of the Arab Spring uprisings.

    During the day, protesters battled police in the streets of the capital and other cities, including Sidi Bouzid, the birthplace of the Jasmine Revolution that toppled Zine al-Abidine Ben Ali in January 2011.

    In Tunis, the crowd set fire to the headquarters of Ennahda, the moderate Islamist party which won the most seats in an legislative election 16 months ago.

    Prime Minister Hamdi Jebali of Ennahda spoke on television in the evening to declare that weeks of talks among the various political parties on reshaping the government had failed and that he would replace his entire cabinet with non-partisan technocrats until elections could be held as soon as possible.

    It followed weeks of deadlock in the three-party coalition. The small, secular Congress for the Republic, whose leader Moncef Marzouki has served as Tunisia's president, threatened to withdraw unless Ennahda replaced some of its ministers.

    Wednesday's events, in which the Interior Ministry said one police officer was killed, appeared to have moved Jebali, who will stay on as premier, to take action.

    "After the failure of negotiations between parties on a cabinet reshuffle, I have decided to form a small technocrat government," he said.


    Follow @NBCNewsWorld

    "The murder of Belaid is a political assassination and the assassination of the Tunisian revolution," he said earlier.

    It was not clear whom he might appoint but the move seemed to be widely welcomed and streets were mostly calm after dark.

    A leader in the secular Republican Party gave Jebali's move a cautious welcome.

    "The prime minister's decision is a response to the opposition's aspirations," Mouldi Fahem told Reuters. "We welcome it in principle. We are waiting for details."

    Beji Caid Essebsi, leader of the secular party Nida Touns, who was premier after the uprising, told Reuters: "The decision to form a small cabinet is a belated move but an important one."

    Divisions
    The widespread protests following Belaid's assassination showed the depth of division between Islamists and secular movements fearful that freedoms of expression, cultural liberty and women's rights were under threat just two years after the popular uprising ended decades of Western-backed dictatorship.

    "This is a black day in the history of modern Tunisia. Today we say to the Islamists, 'get out', enough is enough," said Souad, a 40-year-old schoolteacher outside the ministry.

    "Tunisia will sink in the blood if you stay in power."

    Calls for a general strike on Thursday could bring more trouble though Belaid's family said his funeral, another possible flashpoint, might not be held until Friday.

    Ennahda, like its fellow Islamists in Egypt's Muslim Brotherhood, benefited from a solid organization that survived repression by the old regime, to win 42 of seats in the assembly elected in October 2011 to draft a new constitution.

    And as in Egypt, the Islamists have faced criticism from secular leaders that they are trying to entrench religious ideas in the new state. A constitution is still due to be agreed before a parliamentary election which had been expected by June.

    Belaid, 48, was shot at close range as he left for work by a gunmen who fled on the back of a motorcycle. Within hours, crowds were battling police, hurling rocks amid volleys of teargas in scenes reminiscent of clashes in Egypt last month.

    World powers, increasingly alarmed at the extent of radical Islamist influence and the bitterness of the political stalemate, urged Tunisians to reject violence and see through the move to democracy they began two years ago, when their revolution ended decades of dictatorship and inspired fellow Arabs in Egypt and across North Africa and the Middle East.

    As in Egypt, the rise to power of political Islam through the ballot box has prompted a backlash among less organized, more secular political movements in Tunisia. Belaid, who made a name for himself by criticizing Ben Ali, led a party with little electoral support but his vocal opinions had a wide audience.

    The day before his death he was publicly lambasting a "climate of systematic violence." He had blamed tolerance shown by Ennahda and its two, smaller secularist allies in the coalition government toward hardline Salafists for allowing the spread of groups hostile to modern culture and liberal ideas.

    On Wednesday, thousands demonstrated in cities including Mahdia, Sousse, Monastir and Sidi Bouzid, the cradle of the revolution, where police fired teargas and warning shots at protesters who set cars and a police station on fire.

    While Belaid's nine-party Popular Front bloc has only three seats in the constituent assembly, the opposition jointly agreed to pull its 90 or so members out of the body, which is acting as parliament and writing the new post-revolution charter. Ennahda and its fellow ruling parties have some 120 seats.

    Since the uprising, Tunisia's new leaders have faced many protests over economic hardship and political ideas; many have complained that hardline Salafists may hijack the revolution.

    Last year, Salafist groups prevented several concerts and plays from taking place in Tunisian cities, saying they violated Islamic principles. Salafists also ransacked the U.S. Embassy in September, during international protests over an Internet video.

    The embassy issued a statement condemning Belaid's killing and urging justice for his killers: "There is no justification for this heinous and cowardly act," it said. "Political violence has no place in the democratic transition in Tunisia."

    Economic troubles
    Declining trade with the crisis-hit eurozone has left the 11 million Tunisians struggling to achieve the better living standards many had hoped for following Ben Ali's departure.

    Its compact size, relatively skilled workforce and close ties with former colonial power France and other European neighbors across the Mediterranean has raised hopes that Tunisia can set an example of economic progress for the region.

    Lacking the huge oil and gas resources of North African neighbors Libya and Algeria, Tunisia counts tourism as a major currency earner and further unrest could scare off visitors vital to an industry only just recovering from the revolution.

    Jobless graduate Mohamed Bouazizi set himself on fire in December 2010 in the city, 180 miles southwest of Tunis, after police confiscated his unlicensed fruit cart, triggering the uprising that forced Ben Ali to flee to Saudi Arabia less than a month later, on Jan. 14, 2011.

    President Moncef Marzouki, who last month warned the tension between secularists and Islamists might lead to "civil war", cancelled a visit to Egypt scheduled for Thursday and cut short a trip to France, where he addressed the European Parliament.

    "There are political forces inside Tunisia that don't want this transition to succeed," Marzouki said in Strasbourg. "When one has a revolution, the counter revolution immediately sets in because those who lose power - it's not only Ben Ali and his family - are the hundreds of thousands of people with many interests who see themselves threatened by this revolution."

    Belaid, who died in hospital, said this week dozens of people close to the government had attacked a Popular Front group meeting in Kef, northern Tunisia, on Sunday. He had been a constant critic of the government, accusing it of being a puppet of the rulers of wealthy Gulf emirate Qatar.

    Denies involvement
    Human Rights Watch called his murder "the gravest incident yet in a climate of mounting violence."

    Ennahda leader Rached Ghannouchi denied any involvement by his party in the killing.

    "Is it possible that the ruling party could carry out this assassination when it would disrupt investment and tourism?" Ghannouchi told Reuters.

    He blamed those seeking to derail Tunisia's democratic transition: "Tunisia today is in the biggest political stalemate since the revolution. We should be quiet and not fall into a spiral of violence. We need unity more than ever," he said.

    He accused opponents of stirring up sentiment against his party following Belaid's death. "The result is burning and attacking the headquarters of our party in many areas," he said.

    Witnesses said crowds had also attacked Ennahda offices in Sousse, Monastir, Mahdia and Sfax.

    French President Francois Hollande said he was concerned by the rise of violence in Paris's former dominion, where the government says al Qaeda-linked militants linked to those in neighboring countries have been accumulating weapons with the aim of creating an Islamic state across North Africa.

    "This murder deprives Tunisia of one of its most courageous and free voices," Hollande's office said in a statement.

    Related:

    'Great anger' rises in Tunisia after slaying of opposition leader

    Copyright 2013 Thomson Reuters. Click for restrictions.

    2 comments

    Tunisia to form new government, PM says Where the @!$%# is Tunisia and who is PM >> ??

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  • 8
    Nov
    2012
    8:25am, EST

    Storm of protest as debt-stricken London borough plans to sell $32M artwork

    Bethany Clarke / Getty Images file

    'Draped Seated Woman' by Henry Moore was sold to one of London's borough councils at a knock-down price in 1962 on the understanding it would be displayed in the area, which was notorious for its social deprivation and which had also been heavily bombed during the Second World War. It is currently displayed at a sculpture park in Yorkshire.

    By Alastair Jamieson, NBC News

    LONDON — A debt-stricken district of London is to sell a sculpture gifted to the local area by celebrated artist Henry Moore, prompting fierce criticism and raising questions over the future of other publicly owned artworks amid austerity cuts.

    The mayor of Tower Hamlets — one of the poorest areas of Britain — decided late Wednesday to sell the 8-foot Henry Moore bronze statue "Draped Seated Woman" as the borough council tries to cut a deficit of $144 million.

    It is thought the sale of the sculpture could raise up to $32 million for the council. Independent mayor Lutfur Rahman over-ruled the concerns of a committee of politicians to order the artwork be auctioned to the highest bidder.


    Ian Leith, founder and deputy chairman of the Public Monuments and Sculpture Association, told the U.K.’s Guardian that the high-profile decision means other towns and cities might now be tempted to see artworks simply as financial assets.

    "We fear that this is the beginning of local authorities wanting to realize the assets they have in their public sculptures," he told the newspaper. "But the danger is that we won't find out about these sales: There is no national audit of public art in England and no at-risk list.”

    In the United States, at least four cities have declared bankruptcy as they struggle to make budget cuts.

    Read more coverage of this story at ITV News

    Among those criticizing the London decision was Danny Boyle, the "Slumdog Millionaire" film director and choreographer of the London 2012 Olympic opening ceremony, who is also a resident in the east London borough.

    Boyle told the Daily Telegraph: "The Moore sculpture defies all prejudice in people's minds about one of London's poorest boroughs. That alone makes it priceless to every resident."

    Moore, who died in 1986, sold his sculpture to the council in 1962 at a knock-down price on the understanding it would be displayed in the local area, which was notorious for its social deprivation and which had also been heavily bombed during the Second World War. It sat in a public housing project in Stepney Green until 1997 when the project was demolished and it was loaned to a sculpture park in Yorkshire.

    'Not insurable'
    Heather Bonfield, the council’s interim head of culture, told a meeting on Wednesday night that displaying the sculpture in public parks in the area was no longer feasible because of the risk of vandalism and metal theft, making it "not insurable", according to a report in The Wharf local newspaper.

    Tower Hamlets councilor Shahed Ali told ITV News the cash raised would be used for "services for local people, services that will make as big difference to our local residents."

    "We have youth population that is the largest in Europe and the money will help address those needs," he said.

    Slideshow: When the Olympics is your neighbor

    /

    A diverse community in East London will welcome the world to Britain for the 2012 Olympic Games. Meet residents and hear how they feel about having a huge, world stage in their backyard.

    Launch slideshow

    Tower Hamlets was one of the six boroughs adjacent to the Olympic Park, which transformed a derelict former industrial wasteland in east London into the epicenter of the 2012 Summer Games.

    Sharon Ament, director of the Museum of London Docklands which is in the borough, proposed a plan to host the statue – but her offer was rejected.

    "We are hugely disappointed," she told ITV News. "Just because we’re going through really tough times financially, it doesn’t mean to say that the cultural, artistic and spiritual needs of the population shouldn’t be met."

    Local member of parliament, Rushanara Ali, told the East London Advertiser: "The sculpture belongs to the people of the East End and should remain in public ownership and be available for everyone to enjoy as Henry Moore intended it.

    "This is a betrayal of the East End’s working class heritage. The sale will only make a small contribution to the council’s budget."

    In Sunday’s Observer newspaper, commentator and local resident Rowan Moore wrote: "'Draped Seated Woman' fulfills an ideal that nothing was too good for ordinary people, an ideal that modern local politicians are in danger of losing. To sell the sculpture as if it were a piece of real estate would … betray Moore’s generosity. It would raise the question why anyone should ever want to offer anything to a local authority again."

    Tower Hamlets to sell a GIFT from Henry Moore to it citizens.Disgraceful!

    — Joan Bakewell (@JDBakewell) November 8, 2012

    Local journalist and blogger Ted Jeory told NBC News the decision to sell the statue in order to keep funding for current local projects was a "vote-buying program" by Mayor Rahman, who is up for re-election in 18 months. "This is not about government cuts, it’s about his love of power," he said.

    ITV News is the U.K. partner of NBC News.

    More world stories from NBC News:

    • Hail to the chief: Americans eyed in search for Britain's top rabbi
    • Tour de France champion Bradley Wiggins hospitalized after being hit by car
    • World leaders welcome Obama's 2nd term - but challenges loom
    • Analysis: Payback time? Israelis wonder what Obama win will mean
    • Analysis: Top 10 foreign policy issues facing Obama
    • Embassy ballots give Chinese a glimpse of democracy

    Follow World News from NBCNews.com on Twitter and Facebook

     

    72 comments

    Sell it... it is ugly

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  • 6
    Jul
    2012
    4:10am, EDT

    Japan to go broke by October? Standoff threatens to 'collapse' budget

    By Reuters

    TOKYO - Japan's government could run out of money by the end of October, halting all state spending including salaries, pensions and unemployment benefits, because of a standoff in parliament that has blocked a bill to finance the deficit.

    The deficit financing bill, which would allow the government to sell bonds needed to fund almost half of the budget, has languished in parliament as the ruling Democratic Party tussles with opposition parties that can use their control of the upper house to reject legislation.


    "Without this bill, the budget will collapse," Finance Minister Jun Azumi said on Friday, pleading for cooperation from the two largest opposition parties.

    "It doesn't matter which party is in power. I really hope that we can get a multi-partisan agreement on the deficit bill."

    If the bill is not passed, government spending would grind to a halt, the world's third-largest economy would be put in jeopardy and its standing among credit ratings agencies could suffer.

    Japanese panel calls Fukushima meltdowns a 'manmade disaster'

    Japan is not the only developed nation that is staring at an imminent fiscal crisis. Greece's debt-strapped government could run out of money within weeks unless it secures a 31.8 billion euro ($39.42 billion) tranche of bailout funds from the European Union.

    The U.S. economy is facing $4 trillion worth of expiring tax cuts and automatic government spending reductions at the end of the year, and a standoff in Congress makes the chance of a compromise over the so-called "fiscal cliff" look dim.

    Slideshow: Then-and-now: Tsunami cleanup

    AP

    View side-by-side the progress that Japan has made since the tsunami and earthquake in March 2011.

    Launch slideshow

    The impasse in Japan however comes just after Prime Minister Yoshihiko Noda won over the opposition to pass an increase in sales tax in the lower house of parliament. However, a section of his party quit over the vote, and is poised to form a new party.


    Follow @msnbc_world

    Noda's Democrats still control a majority in the lower house of parliament, but are outnumbered by the opposition in the upper house. Many analysts say mid-term elections could be called.

    "There's so much uncertainty over the political outlook that it's hard to say how big the risk is of the government running out of cash," said Naoki Iizuka, senior economist at Mizuho Securities in Tokyo.

    "The key would be the timing of any snap election and who would be leading the Democratic Party at the time."

    Opposition parties have threatened to delay Japan's deficit financing bill in the past but have eventually yielded and voted in favor. This time, however, the opposition may be more emboldened because of the row over the sales tax hike.

    World's largest debt burden
    Japan's budget for the current fiscal year that started in April totals 90.3 trillion yen ($1.13 trillion).

    The deficit financing bill allows Japan to sell 38.3 trillion yen in government bonds to fund the budget. The remainder is funded by tax revenue, non-tax revenue and income from bonds earmarked for public works projects.

    Japan returns to nuclear power after shutdown prompted by Fukushima disaster

    Government expenditure is forecast to reach 43.9 trillion yen by the end of September, Azumi said.

    Assuming that the deficit financing bill does not pass, the government would have only 46.1 trillion yen on hand, Azumi said. This means the government is sure to run out of money by the end of October, he said.

    The first in line to take a hit if Japan starts running out of money would be regional governments, which rely on tax grants from the national government for much of their spending.

    The Finance Ministry could start cutting tax grants to local governments in September if there is no sign that the deficit financing bill will pass, Azumi said.

    The government would try to prioritize pension and unemployment payments, but once the money runs out, there is not much the government can do, finance ministry bureaucrats have said.

    Prime Minister Noda could reach an agreement with opposition parties to provide some temporary funding. However, Noda does not have the right to override parliament on the voting of the deficit funding bill.

    Japan already has the world's largest debt burden at nearly twice the size of its $5 trillion economy, and a breakdown in fiscal spending could increase skepticism that politicians are losing their grip on public finances.

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    Copyright 2013 Thomson Reuters. Click for restrictions.

    196 comments

    ....And yet the yen is still worth more than the US Dollar which should give us a clue as to how screwed we really are..

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    Explore related topics: japan, economy, budget, money, government, featured, broke, yoshihiko-noda, jun-azumi
  • 20
    Jun
    2012
    8:54am, EDT

    New Greece government agreed, says socialist party leader

    AP Photo/Kostas Tsironis

    Greece's newly sworn-in Prime Minister Antonis Samaras gestures to supporters after taking over from caretaker Prime Minister Panayiotis Pikramenos at Maximos Mansion in Athens.

    By msnbc.com staff and news services

    ATHENS - A conservative-led Greek government has been agreed and will form a team to "renegotiate" the international bailout deal that would save the country from bankruptcy, the leader of one of the coalition parties said Wednesday.

    Socialist PASOK leader Evangelos Venizelos said his party would enter a three-way alliance with the larger conservative New Democracy and that cabinet posts would be decided by Wednesday evening.


    He said the key issue would be to form a team to renegotiate the $164.79 billion bailout deal from the European Union and International Monetary Fund.

    Greece avoids 'Drachmageddon' but Europe debt crisis remains

    "Greece has a government and this is the message that the outgoing finance minister [George] Zanias will take to the Eurogroup," Venizelos told reporters.

    Reuters said Antonis Samaras would meet President Karolos Papoulias later on Wednesday to announce the coalition deal, after which he expected to be sworn in as prime minister.

    Greece appeared to have avoided crashing out of the euro currency zone early Monday after political parties in favor of an international bailout deal won a slim election majority – but the region's debt crisis showed no sign of abating. NBC's Stephanie Gosk reports.

    The opposition radical leftist bloc SYRIZA came second in the election and strongly opposes the bailout. A graph illustrating the results was published on the BBC website.

    A Greek exit from the euro joint currency zone is still viewed as a possibility, despite a narrow majority for parties who are broadly in favor of a bailout, despite the inevitable tough austerity measures.

    The Daily Telegraph reported that although public sector wages and pensions have been cut by 25-30 per cent since the country’s economic crisis took hold, thousands of redundancies have not taken place as promised, a privatization program has barely got off the ground and tax evasion remains endemic.

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    57 comments

    Renegotiate?????? They do not have any power to renegotiate anything. They are beggars seeking bread. They are not in a position of power. When are the Greeks going to learn this????

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    Explore related topics: economy, imf, crisis, euro, government, greece, athens, coalition, featured
  • 24
    May
    2012
    2:27pm, EDT

    Scuffle in Ukraine parliament over official use of Russian language

    Reuters

    Deputies scuffle during a session in the chamber of the Ukrainian parliament in Kiev on Thursday. Opposition deputies brought proceedings to a halt inside the Ukrainian parliament on Thursday, when they staged an action against the bill about the basics of the language policy.

    Maks Levin / AP

    Lawmakers from pro-presidential and oppositional factions fight in the parliament session hall in Kiev, Ukraine on Thursday. A violent scuffle has erupted in Ukraine's parliament over a bill that would allow the use of the Russian language in courts, hospitals and other institutions in the Russian-speaking regions of the country.

    Reuters

    Deputies scuffle during a session in the chamber of the Ukrainian parliament in Kiev.

    Maks Levin / AP

    An opposition lawmaker Mykola Petruk receives first aid after fighting between pro-presidential and opposition factions in the parliament session hall in Kiev.

    A fight broke out on the floor of the Ukrainian parliament as lawmakers debated the use of Russian as the official language in certain parts of the Ukraine. NBC's Willie Geist reports.

    •Sign up for the msnbc.com Photos Newsletter

    Follow @msnbc_pictures

    4 comments

    no article?

    Show more
    Explore related topics: politics, ukraine, government, world-news, parliament
  • 10
    Dec
    2011
    3:57am, EST

    Taliban: We are in peace talks with Pakistan

    By NBC News, mnsbc.com and news services

    The deputy leader of the Pakistani Taliban said Saturday that peace negotiations were underway with Pakistan's government, NBC News reported.

    Maulvi Faqir Mohammad said the government had released 145 of their prisoners and halted military operation in the Bajaur tribal region.


    The Pakistani Taliban, or the Tehrik-e-Taliban, has been waging a four-year war against the government in Islamabad and the peace talks could further fray the U.S.-Pakistan relationship, Reuters said.

    There was no immediate comment from the administration on whether talks were taking place. The United States, the source of billions of dollars of aid vital for Pakistan's military and feeble economy, is unlikely to look kindly on the peace talks with a group it has labeled as terrorists.

    Speaking from somewhere in Afghanistan by phone, Mohammad said talks with the government started after the All Parties Conference in Islamabad a few months back, in which the political leadership supported peace negotiations with Pakistani Taliban for the restoration of peace.

    "The Taliban were reluctant earlier to seriously take offers for peace talks came from the government as the government had lost its credibility by arresting some senior Taliban commanders in Swat such as Haji Muslim Khan ... (and) Mahmud Khan. They were invited for holding peace talks and were then taken into custody," the Taliban leader told NBC News.

    No military solution
    He said the government had recently showed some courage in changing its polices toward the Taliban and tribal regions.

    "Our talks are going in the right direction," Mohammad told Reuters. 

    He said the government had realized that there was no military solution to the conflict in Pakistan.

    "We have no wish to fight against our own armed forces and destroy our own country," he said. "There has been development in our peace talks, but the government would have to show more flexibility in its stance, and restore the trust of Taliban by releasing their prisoners and stop military operations against them."

    Mohammad said the militants had pledged a cease-fire. He added that Pakistan and Afghanistan should unite against what he called foreign occupations by non-Muslims.

    The Pakistani Taliban, known as the TTP, is allied with the Afghan Taliban movement fighting U.S.-led NATO forces in Afghanistan.

    It is entrenched in the unruly areas along the porous frontier. It pledged to overthrow the Pakistani government after the military started operations against the TTP.

    Time to consolidate
    Past peace pacts with the TTP have failed to bring stability, and merely gave the umbrella group time and space to consolidate, launch fresh attacks and impose their austere version of Islam on segments of the population.

    Mohammad heads the TTP faction based in Bajaur, at the northeast end of the Pashtun belt along the border. He is known to be close to al-Qaida. His men focused on attacking into Afghanistan until U.S. drones, hunting for al-Qaida deputy Ayman al-Zawahiri, began strikes in his area in early 2006.

    Mohammad was believed to have been behind several attacks on Pakistani security forces. The army launched an offensive in Bajaur in August 2008 and largely cleared the region after months of at times heavy fighting.

    The statement Saturday was the first time that a named commander has said the group is negotiating with the Pakistani government.The government has previously denied any such talks.

    NBC News, Reuters and The Associated Press contributed to this report.

    209 comments

    Further proof that Pakistan has been playing a double game with American Dollars. Time to cut off all aid and let India stomp them flat.

    Show more
    Explore related topics: pakistan, taliban, government, peace-talks, featured, south-and-central-asia

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