Researchers follow whole Danish population aged over 30 and find incidence of brain cancer in mobile users is no higher There is no link between the long-term use of a mobile phone and brain cancer, research suggests. In what has been described as the largest study on the subject, researchers found that cancer rates in the central nervous system were almost the same in both long-term mobile phone users and people who do not use the handsets, the study published on bmj.com found. There are more than 5bn mobile phone subscribers worldwide and people have expressed fears that the electromagnetic fields emitted by holding a handset to the ear may cause adverse health affects. Researchers from the Institute of Cancer Epidemiology in Copenhagen studied the whole Danish population aged over 30 and born in Denmark after 1925 by gathering information from the Danish phone network operators and the Danish Cancer Register. They analysed data of 10,729 central nervous system tumours between 1990 and 2007 and found that people who had used mobiles for 13 years or more had similar cancer rates to non-users. The researchers said they observed no overall increased risk for tumours of the central nervous system or for all cancers combined in mobile phone users. The authors said: “The extended follow-up allowed us to investigate effects in people who had used mobile phones for 10 years or more, and this long-term use was not associated with higher risks of cancer. “However, as a small to moderate increase in risk for subgroups of heavy users or after even longer induction periods than 10-15 years cannot be ruled out, further studies with large study populations, where the potential for misclassification of exposure and selection bias is minimised, are warranted.” Mobile phones Cancer Cancer guardian.co.uk
Continue reading …Researchers follow whole Danish population aged over 30 and find incidence of brain cancer in mobile users is no higher There is no link between the long-term use of a mobile phone and brain cancer, research suggests. In what has been described as the largest study on the subject, researchers found that cancer rates in the central nervous system were almost the same in both long-term mobile phone users and people who do not use the handsets, the study published on bmj.com found. There are more than 5bn mobile phone subscribers worldwide and people have expressed fears that the electromagnetic fields emitted by holding a handset to the ear may cause adverse health affects. Researchers from the Institute of Cancer Epidemiology in Copenhagen studied the whole Danish population aged over 30 and born in Denmark after 1925 by gathering information from the Danish phone network operators and the Danish Cancer Register. They analysed data of 10,729 central nervous system tumours between 1990 and 2007 and found that people who had used mobiles for 13 years or more had similar cancer rates to non-users. The researchers said they observed no overall increased risk for tumours of the central nervous system or for all cancers combined in mobile phone users. The authors said: “The extended follow-up allowed us to investigate effects in people who had used mobile phones for 10 years or more, and this long-term use was not associated with higher risks of cancer. “However, as a small to moderate increase in risk for subgroups of heavy users or after even longer induction periods than 10-15 years cannot be ruled out, further studies with large study populations, where the potential for misclassification of exposure and selection bias is minimised, are warranted.” Mobile phones Cancer Cancer guardian.co.uk
Continue reading …Researchers follow whole Danish population aged over 30 and find incidence of brain cancer in mobile users is no higher There is no link between the long-term use of a mobile phone and brain cancer, research suggests. In what has been described as the largest study on the subject, researchers found that cancer rates in the central nervous system were almost the same in both long-term mobile phone users and people who do not use the handsets, the study published on bmj.com found. There are more than 5bn mobile phone subscribers worldwide and people have expressed fears that the electromagnetic fields emitted by holding a handset to the ear may cause adverse health affects. Researchers from the Institute of Cancer Epidemiology in Copenhagen studied the whole Danish population aged over 30 and born in Denmark after 1925 by gathering information from the Danish phone network operators and the Danish Cancer Register. They analysed data of 10,729 central nervous system tumours between 1990 and 2007 and found that people who had used mobiles for 13 years or more had similar cancer rates to non-users. The researchers said they observed no overall increased risk for tumours of the central nervous system or for all cancers combined in mobile phone users. The authors said: “The extended follow-up allowed us to investigate effects in people who had used mobile phones for 10 years or more, and this long-term use was not associated with higher risks of cancer. “However, as a small to moderate increase in risk for subgroups of heavy users or after even longer induction periods than 10-15 years cannot be ruled out, further studies with large study populations, where the potential for misclassification of exposure and selection bias is minimised, are warranted.” Mobile phones Cancer Cancer guardian.co.uk
Continue reading …Researchers follow whole Danish population aged over 30 and find incidence of brain cancer in mobile users is no higher There is no link between the long-term use of a mobile phone and brain cancer, research suggests. In what has been described as the largest study on the subject, researchers found that cancer rates in the central nervous system were almost the same in both long-term mobile phone users and people who do not use the handsets, the study published on bmj.com found. There are more than 5bn mobile phone subscribers worldwide and people have expressed fears that the electromagnetic fields emitted by holding a handset to the ear may cause adverse health affects. Researchers from the Institute of Cancer Epidemiology in Copenhagen studied the whole Danish population aged over 30 and born in Denmark after 1925 by gathering information from the Danish phone network operators and the Danish Cancer Register. They analysed data of 10,729 central nervous system tumours between 1990 and 2007 and found that people who had used mobiles for 13 years or more had similar cancer rates to non-users. The researchers said they observed no overall increased risk for tumours of the central nervous system or for all cancers combined in mobile phone users. The authors said: “The extended follow-up allowed us to investigate effects in people who had used mobile phones for 10 years or more, and this long-term use was not associated with higher risks of cancer. “However, as a small to moderate increase in risk for subgroups of heavy users or after even longer induction periods than 10-15 years cannot be ruled out, further studies with large study populations, where the potential for misclassification of exposure and selection bias is minimised, are warranted.” Mobile phones Cancer Cancer guardian.co.uk
Continue reading …
After two-day standoff residents walk out of Dale Farm in Essex peacefully, saying they do so with ‘dignity’ and heads held high The beginning of the eviction at Dale Farm was marked by violence, but the end – when it came – was calm and ordered. After seeing the final barrier designed to stop bailiffs entering the site torn down earlier in the day, Travellers and protesters staged a mass “dignified walk out”, leaving the site outside Basildon in Essex together as the sun began to go down on Thursday, chanting “save Dale Farm” as they went. It was an emotional moment for the remaining protesters, many who have lived on the site for months, and residents who expressed their thanks for the support that they had been given. Kathleen McCarthy – who has taken on the role of voice of the community — said: “We and the activists, we are all proud people and we are leaving here with our heads held high. It’s an emotional day. I’m sad but so be it, God will protect each and every one of us.” Good had come from the Dale Farm story, she said. “We showed we are not what they made us out to be, we are not thugs, we are good people.” There had been violent clashes at Dale Farm on Wednesday, when riot police were pelted with missiles and two protesters tasered. But on Thursdayon the site there was a mood of despondency and resignation. The decision to walk out together was taken in a public meeting, held among the ruins of Marianne McCarthy’s pitchIt had earlier been unclear whether the planned departure would happen, when tempers were raised by Basildon council representatives entering the site with riot police to survey what remained. But at 5pm, the walk began. It was the right time to go, said Marie McCarthy. “It’s been worth everything,” she said. “It’s the best thing Travellers have ever done. This time we made a stand and I tell you what, we put up a good fight. We’re going out with dignity at the end of it.” Asked where the Travellers would go now, she said: “We go on the road to nowhere, that’s where we go.” Like much of the story of Dale Farm, the final walk-out was not without theatre. Photographers jostled for the best shot as the walk progressed, with police officers and hard-hatted bailiffs standing sentry while residents and protesters filed out of the gates. Legal observers will remain to make sure bailiffs comply with the law as they start to deconstruct the site. Marina Pepper, who lead much of the protesters’ campaign and had been seen berating bailiffs and police, said it was the right way to go, but that she was disappointed. “It is this idea that you always have to bend to the will of the strongest bully, and what we have seen here is state bullying,” she said. “We have to go because nobody wants to go out of here in a body bag. The end is seen as inevitable now, but if that changes we’ll be back for a massive party.” Soon after they had quit the site, Basildon council issued a statement, in which leader Tony Ball said it was “encouraging” that the Travellers and supporters were leaving Dale Farm in a “peaceful and dignified manner”. He said: “Sadly, this could have been achieved many years ago and without the scenes of violence which we have witnessed over the last 48 hours and the accompanying expense to the taxpayer.” Speaking at a press conference earlier, Ball reiterated that the council had made Travellers aware of sites in other areas of the country, and had made the offer of bricks and morter accommodation for the elderly and young which had not been accepted. It was clear that the end was close from early on Thursday when police removed five protesters who had locked themselves to the gate and a metal barrier and had remained in place for more than 25 hours. Soon after, before the sun had warmed a freezing site, the bailiffs’ heavy machinery got to work, quickly destroying the 40ft barricade that had become symbolic of the struggle at Dale Farm. Before long a Russian military truck, which protesters had been attached to, was also removed – after its owner called the RAC to come and give it a jump start. During the final two-day stand off 39 people were arrested, with one person charged with a public order offence for refusing to take off a face covering, said Superintendent Trevor Roe from Essex police. “As far as I’m aware, the residents have offered no violence whatsoever,” he said. Ten forces had been part of the operation, but police were now keen to scale back the operation and let bailiffs take over. “We now want to return to normal policing as soon as we can,” said Roe. It was the end of a long road for Dale Farm, where the residents had been locked in a battle with Basildon council over housing on a former scrapyard which they own but do not have planning permission for. On Monday, an appeal court judge refused the Travellers’ final attempt to halt the eviction after 10 years of legal wrangling. Caravans in the early evening began pulling off Dale Farm – and on to the legal site alongside. One man said that £18m was a lot of money to move someone a couple of hundred yards. But the council has vowed to prevent Travellers from settling illegally nearby, and after the next few days few know where they will go. Mary Quillgan, mother of five children, said reports that other councils were preparing to prevent Dale Farm Travellers settling in their areas sickened her. She said: “People say we are Travellers and we should travel but the world is changing, our kids need to go to school. They keep pushing us on the road, but where does the road end?” Dale Farm Roma, Gypsies and Travellers Local government Planning policy Protest Human rights Alexandra Topping guardian.co.uk
Continue reading …
Merkel and Sarkozy at loggerheads over French proposal for bailout fund to become $2tn ‘bank’ overseen by ECB Europe was thrown into fresh chaos on Thursday after a failure to resolve deep differences between France and Germany forced the postponement of a new plan to save the single currency. A joint statement from the French president, Nicolas Sarkozy, and the German chancellor, Angela Merkel, admitted that a deal at the weekend was now unachievable and that talks in Brussels on Sunday would be followed by a second summit next Wednesday. Financial markets have rallied strongly in recent weeks amid hopes of a breakthrough agreement this weekend that would recapitalise Europe’s weak banks, write off part of Greece’s debts and – crucially – increase the firepower of the eurozone’s bailout fund to protect Italy and Spain from speculative attack. It emerged , however, that Berlin and Paris still differ over the size of the European financial stability facility (EFSF) with Germany resisting French calls for it to resemble a bank capable of issuing €2tn (£1.75tn) of loans. Merkel is also opposed to Sarkozy’s plan to put the European Central Bank (ECB) at the heart of the plan. “The president and the chancellor will meet Saturday night in Brussels ahead of the European council summit in the euro area on Sunday,” the statement said. “France and Germany have agreed that all elements of this ambitious and comprehensive response will be discussed in depth at the summit on Sunday in order to be finally adopted by the heads of state and government at a second meeting no later than Wednesday.” One of the sticking points holding up a deal is that Merkel needs the backing of German MPs before agreeing to an enhanced bailout fund. Officials said delays in the talks prevented the chancellor from achieving it before the weekend, but at Sarkozy’s insistence Sunday’s summit would go ahead as planned. Bond markets were the first to react to fears that a deal would fail to materialise, sending the interest rate on Italian debt back above 6%. Spanish yields rose above 5.5%. Both countries already depend on the ECB for short-term money, though both held successful bond auctions in the morning, before news of the delay. Contradictory reports of the progress made ahead of the weekend talks were reflected in briefings by Brussels officials. One well-placed EU diplomat insisted a sense of urgency could enable Sunday’s eurozone summit to deliver a political agreement. The source said divergences between France and Germany were “exaggerated.” Another official said the gap between France and Germany was significant, though resolvable. “Sunday’s summit is unlikely to produce any real decisions; the real stuff will have to be done on Wednesday or even Friday,” he said. Sarkozy and Merkel said the full details of a “global and ambitious” response to the crisis would be definitively adopted at a second summit “no later than Wednesday”. The pair are to meet in Brussels on Saturday evening. This weekend’s series of meetings and a second summit are also due to endorse the payout of a further €8bn to Greece early next month to save it from bankruptcy. But Athens’ debts are said by international inspectors to be unsustainable even with the second €109bn bailout agreed only last July. EU leaders are acutely aware that markets when they open on Monday are expecting a three-pronged deal on Greek debt “haircuts”, bank recapitalisation – already agreed at €90bn overall – and boosting the firepower of the EFSF. This was acknowledged in a statement last night from Sarkozy’s Élysée Palace. It said Greece had to make “ambitious” pledges to restore its economy on the basis of a new programme – indicating that the €109bn second bailout agreed only in July was inadequate. Merkel and Sarkozy demanded that talks begin with private creditors “to find an agreement that will reinforce the sustainability of Greek debt” – longhand for accepting far larger losses. In July the losses to be borne voluntarily by bondholders such as banks were agreed at 21% but these are now likely to be at least 30%. High-ranking eurozone officials admit that a huge amount of work remains to be done before Sunday’s summit to agree on how and by how much to raise the EFSF’s lending capacity from its current €440bn. Merkel, beset by splits within her coalition government and pressure for parliamentary approval of any EFSF deal, will only be able to agree in principle on Sunday and get the detailed, technical issues resolved by finance ministers before being signed off at another time. She called off Friday’s planned speech to the Bundestag on the topic. Wolfgang Schäuble, her embattled finance minister, boosted hopes on Thursday by saying France and Germany had reached an “outline” deal to increase EFSF firepower. “Germany and France are in complete agreement on this question but we know this is not the same as a European solution,” he said. His upbeat comments came less than 24 hours after Sarkozy in effect gate-crashed an opulent farewell in Frankfurt for outgoing European Central Bank president, Jean-Claude Trichet, to hold emergency talks with Merkel on the issue. Earlier, senior EU financial officials said late doubts had emerged about a German plan to turn the EFSF into an insurer in effect able to offer credit default swaps on, say, the first 20% of losses. This could boost its firepower to just over €1tn – or short of the €2tn demanded by the markets, US and UK. But the plan is said to resemble too closely the arrangement that helped bring down Lehman Brothers in 2008, triggering the worst of the financial crisis and recession. So far Germany and the ECB have rejected French ideas of making the EFSF a bank. Sunday’s summit will clearly fail to set the new, higher “haircuts” for private creditors exposed to Greek debt after the International Monetary Fund reportedly fell out with the European commission (EC) and ECB over the scale of that debt. The creditors, marshalled by Deutsche Bank’s outgoing chief, Josef Ackermann, now accept the haircuts could be even higher. A leaked draft report from the “troika” of IMF, ECB and EC said details of Greece’s debt sustainability would be given to the eurogroup of finance ministers who meet on Friday(fri). The report said the country’s debt dynamics were “extremely worrying” after a deeper than expected economic contraction – 5.5% this year and likely to be 2.75% in 2012. One source of relief for worried EU and eurozone leaders is that the draft communiqué for the eurozone summit says both Spain and Italy will give fresh commitments on fiscal consolidation and structural reforms. Senior EU diplomats confirmed that Madrid and Rome would put forward fresh proposals on Sunday. What would the deal look like? The new financial bailout plan is expected to cover debt reduction for Greece, new capital for ailing banks that might take losses from Greek bonds, and enhanced financial firepower for the bailout fund to stabilise markets. The European financial stability facility has recently been expanded to €440bn (£384bn). But it may need at least €1.5
Continue reading …After two-day standoff residents walk out of Dale Farm in Essex peacefully, saying they do so with ‘dignity’ and heads held high The beginning of the eviction at Dale Farm was marked by violence, but the end – when it came – was calm and ordered. After seeing the final barrier designed to stop bailiffs entering the site torn down earlier in the day, Travellers and protesters staged a mass “dignified walk out”, leaving the site outside Basildon in Essex together as the sun began to go down on Thursday, chanting “save Dale Farm” as they went. It was an emotional moment for the remaining protesters, many who have lived on the site for months, and residents who expressed their thanks for the support that they had been given. Kathleen McCarthy – who has taken on the role of voice of the community — said: “We and the activists, we are all proud people and we are leaving here with our heads held high. It’s an emotional day. I’m sad but so be it, God will protect each and every one of us.” Good had come from the Dale Farm story, she said. “We showed we are not what they made us out to be, we are not thugs, we are good people.” There had been violent clashes at Dale Farm on Wednesday, when riot police were pelted with missiles and two protesters tasered. But on Thursdayon the site there was a mood of despondency and resignation. The decision to walk out together was taken in a public meeting, held among the ruins of Marianne McCarthy’s pitchIt had earlier been unclear whether the planned departure would happen, when tempers were raised by Basildon council representatives entering the site with riot police to survey what remained. But at 5pm, the walk began. It was the right time to go, said Marie McCarthy. “It’s been worth everything,” she said. “It’s the best thing Travellers have ever done. This time we made a stand and I tell you what, we put up a good fight. We’re going out with dignity at the end of it.” Asked where the Travellers would go now, she said: “We go on the road to nowhere, that’s where we go.” Like much of the story of Dale Farm, the final walk-out was not without theatre. Photographers jostled for the best shot as the walk progressed, with police officers and hard-hatted bailiffs standing sentry while residents and protesters filed out of the gates. Legal observers will remain to make sure bailiffs comply with the law as they start to deconstruct the site. Marina Pepper, who lead much of the protesters’ campaign and had been seen berating bailiffs and police, said it was the right way to go, but that she was disappointed. “It is this idea that you always have to bend to the will of the strongest bully, and what we have seen here is state bullying,” she said. “We have to go because nobody wants to go out of here in a body bag. The end is seen as inevitable now, but if that changes we’ll be back for a massive party.” Soon after they had quit the site, Basildon council issued a statement, in which leader Tony Ball said it was “encouraging” that the Travellers and supporters were leaving Dale Farm in a “peaceful and dignified manner”. He said: “Sadly, this could have been achieved many years ago and without the scenes of violence which we have witnessed over the last 48 hours and the accompanying expense to the taxpayer.” Speaking at a press conference earlier, Ball reiterated that the council had made Travellers aware of sites in other areas of the country, and had made the offer of bricks and morter accommodation for the elderly and young which had not been accepted. It was clear that the end was close from early on Thursday when police removed five protesters who had locked themselves to the gate and a metal barrier and had remained in place for more than 25 hours. Soon after, before the sun had warmed a freezing site, the bailiffs’ heavy machinery got to work, quickly destroying the 40ft barricade that had become symbolic of the struggle at Dale Farm. Before long a Russian military truck, which protesters had been attached to, was also removed – after its owner called the RAC to come and give it a jump start. During the final two-day stand off 39 people were arrested, with one person charged with a public order offence for refusing to take off a face covering, said Superintendent Trevor Roe from Essex police. “As far as I’m aware, the residents have offered no violence whatsoever,” he said. Ten forces had been part of the operation, but police were now keen to scale back the operation and let bailiffs take over. “We now want to return to normal policing as soon as we can,” said Roe. It was the end of a long road for Dale Farm, where the residents had been locked in a battle with Basildon council over housing on a former scrapyard which they own but do not have planning permission for. On Monday, an appeal court judge refused the Travellers’ final attempt to halt the eviction after 10 years of legal wrangling. Caravans in the early evening began pulling off Dale Farm – and on to the legal site alongside. One man said that £18m was a lot of money to move someone a couple of hundred yards. But the council has vowed to prevent Travellers from settling illegally nearby, and after the next few days few know where they will go. Mary Quillgan, mother of five children, said reports that other councils were preparing to prevent Dale Farm Travellers settling in their areas sickened her. She said: “People say we are Travellers and we should travel but the world is changing, our kids need to go to school. They keep pushing us on the road, but where does the road end?” Dale Farm Roma, Gypsies and Travellers Local government Planning policy Protest Human rights Alexandra Topping guardian.co.uk
Continue reading …After two-day standoff residents walk out of Dale Farm in Essex peacefully, saying they do so with ‘dignity’ and heads held high The beginning of the eviction at Dale Farm was marked by violence, but the end – when it came – was calm and ordered. After seeing the final barrier designed to stop bailiffs entering the site torn down earlier in the day, Travellers and protesters staged a mass “dignified walk out”, leaving the site outside Basildon in Essex together as the sun began to go down on Thursday, chanting “save Dale Farm” as they went. It was an emotional moment for the remaining protesters, many who have lived on the site for months, and residents who expressed their thanks for the support that they had been given. Kathleen McCarthy – who has taken on the role of voice of the community — said: “We and the activists, we are all proud people and we are leaving here with our heads held high. It’s an emotional day. I’m sad but so be it, God will protect each and every one of us.” Good had come from the Dale Farm story, she said. “We showed we are not what they made us out to be, we are not thugs, we are good people.” There had been violent clashes at Dale Farm on Wednesday, when riot police were pelted with missiles and two protesters tasered. But on Thursdayon the site there was a mood of despondency and resignation. The decision to walk out together was taken in a public meeting, held among the ruins of Marianne McCarthy’s pitchIt had earlier been unclear whether the planned departure would happen, when tempers were raised by Basildon council representatives entering the site with riot police to survey what remained. But at 5pm, the walk began. It was the right time to go, said Marie McCarthy. “It’s been worth everything,” she said. “It’s the best thing Travellers have ever done. This time we made a stand and I tell you what, we put up a good fight. We’re going out with dignity at the end of it.” Asked where the Travellers would go now, she said: “We go on the road to nowhere, that’s where we go.” Like much of the story of Dale Farm, the final walk-out was not without theatre. Photographers jostled for the best shot as the walk progressed, with police officers and hard-hatted bailiffs standing sentry while residents and protesters filed out of the gates. Legal observers will remain to make sure bailiffs comply with the law as they start to deconstruct the site. Marina Pepper, who lead much of the protesters’ campaign and had been seen berating bailiffs and police, said it was the right way to go, but that she was disappointed. “It is this idea that you always have to bend to the will of the strongest bully, and what we have seen here is state bullying,” she said. “We have to go because nobody wants to go out of here in a body bag. The end is seen as inevitable now, but if that changes we’ll be back for a massive party.” Soon after they had quit the site, Basildon council issued a statement, in which leader Tony Ball said it was “encouraging” that the Travellers and supporters were leaving Dale Farm in a “peaceful and dignified manner”. He said: “Sadly, this could have been achieved many years ago and without the scenes of violence which we have witnessed over the last 48 hours and the accompanying expense to the taxpayer.” Speaking at a press conference earlier, Ball reiterated that the council had made Travellers aware of sites in other areas of the country, and had made the offer of bricks and morter accommodation for the elderly and young which had not been accepted. It was clear that the end was close from early on Thursday when police removed five protesters who had locked themselves to the gate and a metal barrier and had remained in place for more than 25 hours. Soon after, before the sun had warmed a freezing site, the bailiffs’ heavy machinery got to work, quickly destroying the 40ft barricade that had become symbolic of the struggle at Dale Farm. Before long a Russian military truck, which protesters had been attached to, was also removed – after its owner called the RAC to come and give it a jump start. During the final two-day stand off 39 people were arrested, with one person charged with a public order offence for refusing to take off a face covering, said Superintendent Trevor Roe from Essex police. “As far as I’m aware, the residents have offered no violence whatsoever,” he said. Ten forces had been part of the operation, but police were now keen to scale back the operation and let bailiffs take over. “We now want to return to normal policing as soon as we can,” said Roe. It was the end of a long road for Dale Farm, where the residents had been locked in a battle with Basildon council over housing on a former scrapyard which they own but do not have planning permission for. On Monday, an appeal court judge refused the Travellers’ final attempt to halt the eviction after 10 years of legal wrangling. Caravans in the early evening began pulling off Dale Farm – and on to the legal site alongside. One man said that £18m was a lot of money to move someone a couple of hundred yards. But the council has vowed to prevent Travellers from settling illegally nearby, and after the next few days few know where they will go. Mary Quillgan, mother of five children, said reports that other councils were preparing to prevent Dale Farm Travellers settling in their areas sickened her. She said: “People say we are Travellers and we should travel but the world is changing, our kids need to go to school. They keep pushing us on the road, but where does the road end?” Dale Farm Roma, Gypsies and Travellers Local government Planning policy Protest Human rights Alexandra Topping guardian.co.uk
Continue reading …Merkel and Sarkozy at loggerheads over French proposal for bailout fund to become $2tn ‘bank’ overseen by ECB Europe was thrown into fresh chaos on Thursday after a failure to resolve deep differences between France and Germany forced the postponement of a new plan to save the single currency. A joint statement from the French president, Nicolas Sarkozy, and the German chancellor, Angela Merkel, admitted that a deal at the weekend was now unachievable and that talks in Brussels on Sunday would be followed by a second summit next Wednesday. Financial markets have rallied strongly in recent weeks amid hopes of a breakthrough agreement this weekend that would recapitalise Europe’s weak banks, write off part of Greece’s debts and – crucially – increase the firepower of the eurozone’s bailout fund to protect Italy and Spain from speculative attack. It emerged , however, that Berlin and Paris still differ over the size of the European financial stability facility (EFSF) with Germany resisting French calls for it to resemble a bank capable of issuing €2tn (£1.75tn) of loans. Merkel is also opposed to Sarkozy’s plan to put the European Central Bank (ECB) at the heart of the plan. “The president and the chancellor will meet Saturday night in Brussels ahead of the European council summit in the euro area on Sunday,” the statement said. “France and Germany have agreed that all elements of this ambitious and comprehensive response will be discussed in depth at the summit on Sunday in order to be finally adopted by the heads of state and government at a second meeting no later than Wednesday.” One of the sticking points holding up a deal is that Merkel needs the backing of German MPs before agreeing to an enhanced bailout fund. Officials said delays in the talks prevented the chancellor from achieving it before the weekend, but at Sarkozy’s insistence Sunday’s summit would go ahead as planned. Bond markets were the first to react to fears that a deal would fail to materialise, sending the interest rate on Italian debt back above 6%. Spanish yields rose above 5.5%. Both countries already depend on the ECB for short-term money, though both held successful bond auctions in the morning, before news of the delay. Contradictory reports of the progress made ahead of the weekend talks were reflected in briefings by Brussels officials. One well-placed EU diplomat insisted a sense of urgency could enable Sunday’s eurozone summit to deliver a political agreement. The source said divergences between France and Germany were “exaggerated.” Another official said the gap between France and Germany was significant, though resolvable. “Sunday’s summit is unlikely to produce any real decisions; the real stuff will have to be done on Wednesday or even Friday,” he said. Sarkozy and Merkel said the full details of a “global and ambitious” response to the crisis would be definitively adopted at a second summit “no later than Wednesday”. The pair are to meet in Brussels on Saturday evening. This weekend’s series of meetings and a second summit are also due to endorse the payout of a further €8bn to Greece early next month to save it from bankruptcy. But Athens’ debts are said by international inspectors to be unsustainable even with the second €109bn bailout agreed only last July. EU leaders are acutely aware that markets when they open on Monday are expecting a three-pronged deal on Greek debt “haircuts”, bank recapitalisation – already agreed at €90bn overall – and boosting the firepower of the EFSF. This was acknowledged in a statement last night from Sarkozy’s Élysée Palace. It said Greece had to make “ambitious” pledges to restore its economy on the basis of a new programme – indicating that the €109bn second bailout agreed only in July was inadequate. Merkel and Sarkozy demanded that talks begin with private creditors “to find an agreement that will reinforce the sustainability of Greek debt” – longhand for accepting far larger losses. In July the losses to be borne voluntarily by bondholders such as banks were agreed at 21% but these are now likely to be at least 30%. High-ranking eurozone officials admit that a huge amount of work remains to be done before Sunday’s summit to agree on how and by how much to raise the EFSF’s lending capacity from its current €440bn. Merkel, beset by splits within her coalition government and pressure for parliamentary approval of any EFSF deal, will only be able to agree in principle on Sunday and get the detailed, technical issues resolved by finance ministers before being signed off at another time. She called off Friday’s planned speech to the Bundestag on the topic. Wolfgang Schäuble, her embattled finance minister, boosted hopes on Thursday by saying France and Germany had reached an “outline” deal to increase EFSF firepower. “Germany and France are in complete agreement on this question but we know this is not the same as a European solution,” he said. His upbeat comments came less than 24 hours after Sarkozy in effect gate-crashed an opulent farewell in Frankfurt for outgoing European Central Bank president, Jean-Claude Trichet, to hold emergency talks with Merkel on the issue. Earlier, senior EU financial officials said late doubts had emerged about a German plan to turn the EFSF into an insurer in effect able to offer credit default swaps on, say, the first 20% of losses. This could boost its firepower to just over €1tn – or short of the €2tn demanded by the markets, US and UK. But the plan is said to resemble too closely the arrangement that helped bring down Lehman Brothers in 2008, triggering the worst of the financial crisis and recession. So far Germany and the ECB have rejected French ideas of making the EFSF a bank. Sunday’s summit will clearly fail to set the new, higher “haircuts” for private creditors exposed to Greek debt after the International Monetary Fund reportedly fell out with the European commission (EC) and ECB over the scale of that debt. The creditors, marshalled by Deutsche Bank’s outgoing chief, Josef Ackermann, now accept the haircuts could be even higher. A leaked draft report from the “troika” of IMF, ECB and EC said details of Greece’s debt sustainability would be given to the eurogroup of finance ministers who meet on Friday(fri). The report said the country’s debt dynamics were “extremely worrying” after a deeper than expected economic contraction – 5.5% this year and likely to be 2.75% in 2012. One source of relief for worried EU and eurozone leaders is that the draft communiqué for the eurozone summit says both Spain and Italy will give fresh commitments on fiscal consolidation and structural reforms. Senior EU diplomats confirmed that Madrid and Rome would put forward fresh proposals on Sunday. What would the deal look like? The new financial bailout plan is expected to cover debt reduction for Greece, new capital for ailing banks that might take losses from Greek bonds, and enhanced financial firepower for the bailout fund to stabilise markets. The European financial stability facility has recently been expanded to €440bn (£384bn). But it may need at least €1.5
Continue reading …Merkel and Sarkozy at loggerheads over French proposal for bailout fund to become $2tn ‘bank’ overseen by ECB Europe was thrown into fresh chaos on Thursday after a failure to resolve deep differences between France and Germany forced the postponement of a new plan to save the single currency. A joint statement from the French president, Nicolas Sarkozy, and the German chancellor, Angela Merkel, admitted that a deal at the weekend was now unachievable and that talks in Brussels on Sunday would be followed by a second summit next Wednesday. Financial markets have rallied strongly in recent weeks amid hopes of a breakthrough agreement this weekend that would recapitalise Europe’s weak banks, write off part of Greece’s debts and – crucially – increase the firepower of the eurozone’s bailout fund to protect Italy and Spain from speculative attack. It emerged , however, that Berlin and Paris still differ over the size of the European financial stability facility (EFSF) with Germany resisting French calls for it to resemble a bank capable of issuing €2tn (£1.75tn) of loans. Merkel is also opposed to Sarkozy’s plan to put the European Central Bank (ECB) at the heart of the plan. “The president and the chancellor will meet Saturday night in Brussels ahead of the European council summit in the euro area on Sunday,” the statement said. “France and Germany have agreed that all elements of this ambitious and comprehensive response will be discussed in depth at the summit on Sunday in order to be finally adopted by the heads of state and government at a second meeting no later than Wednesday.” One of the sticking points holding up a deal is that Merkel needs the backing of German MPs before agreeing to an enhanced bailout fund. Officials said delays in the talks prevented the chancellor from achieving it before the weekend, but at Sarkozy’s insistence Sunday’s summit would go ahead as planned. Bond markets were the first to react to fears that a deal would fail to materialise, sending the interest rate on Italian debt back above 6%. Spanish yields rose above 5.5%. Both countries already depend on the ECB for short-term money, though both held successful bond auctions in the morning, before news of the delay. Contradictory reports of the progress made ahead of the weekend talks were reflected in briefings by Brussels officials. One well-placed EU diplomat insisted a sense of urgency could enable Sunday’s eurozone summit to deliver a political agreement. The source said divergences between France and Germany were “exaggerated.” Another official said the gap between France and Germany was significant, though resolvable. “Sunday’s summit is unlikely to produce any real decisions; the real stuff will have to be done on Wednesday or even Friday,” he said. Sarkozy and Merkel said the full details of a “global and ambitious” response to the crisis would be definitively adopted at a second summit “no later than Wednesday”. The pair are to meet in Brussels on Saturday evening. This weekend’s series of meetings and a second summit are also due to endorse the payout of a further €8bn to Greece early next month to save it from bankruptcy. But Athens’ debts are said by international inspectors to be unsustainable even with the second €109bn bailout agreed only last July. EU leaders are acutely aware that markets when they open on Monday are expecting a three-pronged deal on Greek debt “haircuts”, bank recapitalisation – already agreed at €90bn overall – and boosting the firepower of the EFSF. This was acknowledged in a statement last night from Sarkozy’s Élysée Palace. It said Greece had to make “ambitious” pledges to restore its economy on the basis of a new programme – indicating that the €109bn second bailout agreed only in July was inadequate. Merkel and Sarkozy demanded that talks begin with private creditors “to find an agreement that will reinforce the sustainability of Greek debt” – longhand for accepting far larger losses. In July the losses to be borne voluntarily by bondholders such as banks were agreed at 21% but these are now likely to be at least 30%. High-ranking eurozone officials admit that a huge amount of work remains to be done before Sunday’s summit to agree on how and by how much to raise the EFSF’s lending capacity from its current €440bn. Merkel, beset by splits within her coalition government and pressure for parliamentary approval of any EFSF deal, will only be able to agree in principle on Sunday and get the detailed, technical issues resolved by finance ministers before being signed off at another time. She called off Friday’s planned speech to the Bundestag on the topic. Wolfgang Schäuble, her embattled finance minister, boosted hopes on Thursday by saying France and Germany had reached an “outline” deal to increase EFSF firepower. “Germany and France are in complete agreement on this question but we know this is not the same as a European solution,” he said. His upbeat comments came less than 24 hours after Sarkozy in effect gate-crashed an opulent farewell in Frankfurt for outgoing European Central Bank president, Jean-Claude Trichet, to hold emergency talks with Merkel on the issue. Earlier, senior EU financial officials said late doubts had emerged about a German plan to turn the EFSF into an insurer in effect able to offer credit default swaps on, say, the first 20% of losses. This could boost its firepower to just over €1tn – or short of the €2tn demanded by the markets, US and UK. But the plan is said to resemble too closely the arrangement that helped bring down Lehman Brothers in 2008, triggering the worst of the financial crisis and recession. So far Germany and the ECB have rejected French ideas of making the EFSF a bank. Sunday’s summit will clearly fail to set the new, higher “haircuts” for private creditors exposed to Greek debt after the International Monetary Fund reportedly fell out with the European commission (EC) and ECB over the scale of that debt. The creditors, marshalled by Deutsche Bank’s outgoing chief, Josef Ackermann, now accept the haircuts could be even higher. A leaked draft report from the “troika” of IMF, ECB and EC said details of Greece’s debt sustainability would be given to the eurogroup of finance ministers who meet on Friday(fri). The report said the country’s debt dynamics were “extremely worrying” after a deeper than expected economic contraction – 5.5% this year and likely to be 2.75% in 2012. One source of relief for worried EU and eurozone leaders is that the draft communiqué for the eurozone summit says both Spain and Italy will give fresh commitments on fiscal consolidation and structural reforms. Senior EU diplomats confirmed that Madrid and Rome would put forward fresh proposals on Sunday. What would the deal look like? The new financial bailout plan is expected to cover debt reduction for Greece, new capital for ailing banks that might take losses from Greek bonds, and enhanced financial firepower for the bailout fund to stabilise markets. The European financial stability facility has recently been expanded to €440bn (£384bn). But it may need at least €1.5
Continue reading …