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Eurozone finance ministers refuse immediate bailout for Athens

Finance ministers put off until next month any decision to give the green light for a further €8bn bailout for Greece Eurozone finance ministers have put off until next month any decision to give the green light for a further €8bn bailout for Greece despite recognising that the Athens government had made some considerable progress in slashing the country’s debts. Jean-Claude Juncker, Eurogroup chairman, repeatedly made plain early on Tuesday that none of the eurozone countries was urging a Greek default and categorically denied that there was any question of Greece leaving the euro area. In a move certain to disappoint markets, the 17 finance ministers sent signals they had no intention of agreeing to reboot the zone’s rescue fund of €440bn closer to the €2tn or more demanded by leading investors and analysts. EU officials reiterated that there was “no Plan B”. But Juncker and Olli Rehn, the EU economic and monetary affairs commissioner, indicated that ministers had for the first time discussed measures to improve the bailout fund’s efficiency and effectiveness in order to raise its firepower – code for raising the guarantees it needs for buying up more government bonds in the secondary market. Juncker said: “We consider that we should by no means increase the fund’s financial volume.” He dropped a broad hint that private bondholders would be forced to pay more than the 21% “haircut” agreed at the 21 July meeting that increased the fund’s volume and approved the second €109bn bailout for Greece – ascribing that to “technical” reasons. Juncker and Rehn recognised Greece had made strides towards overcoming its debts and budget deficit but said that the Athens government had to be stricter about structural reforms and more ambitious in implementing privatisations. It emerged that the ministers will be asked to approve the fresh €8bn aid as late as at a new meeting on 13 November once inspectors from the troika of European commission, European Central Bank and IMF have given their latest – and delayed – progress report on compliance. Juncker insisted that Greece could meet all its financial obligations – and suggested the new tranche of aid would be paid out in November. After the Greek cabinet sent the euro and stock markets plunging on Monday by admitting on Sunday the country would not meet its target budget deficit this year or next, Evangelos Venizelos, had sought to win favours by insisting that the new budget was “very ambitious”. Entering Monday night’s talks, he declared that the intention was to present “for the first time after many years” a primary surplus of €3.2bn next year compared with a deficit of €29bn only two years ago. He said the fiscal consolidation had been “very strong and very fast.” On Sunday Greece said its deficit would be 8.5% of GDP this year compared with a target of 7.6% and 6.8% in 2012 compared with a target of 6.5% but Venizelos insisted it had taken “all the necessary and difficult measures to fulfil its obligations”. He said: “Greece is a country with structural difficulties but Greece is not the scapegoat of the eurozone.” Even so, anxieties about a Greek default sent the euro to a 10-year low against the yen and a nine-month low against the US dollar. The French president, Nicolas Sarkozy, meanwhile said he would meet the German chancellor, Angela Merkel, in Berlin on Sunday for talks on “ways and means to accelerate the economic integration of the eurozone economy”. Ostensibly, the eurozone’s two most powerful political figures are preparing the way for the crucial summit of the 17 member countries that will take place on 18 October or a day after a summit of all 27 EU countries, including the UK. But the talks are bound to raise market hopes that the pair will come up with an outline plan for substantially increasing the scope of the European financial stability facility (EFSF) that can be put to the eurozone summit without necessarily boosting its funds. Slovakia assured ministers that its parliament would endorse the enhanced EFSF by 14 October. Christian Noyer, Bank of France governor, indicated he was open to a scheme that would allow the EFSF to be leveraged – most likely by increasing the guarantees it can rely on to buy up more bonds and make bigger precautionary loans to countries suspected of being in trouble. European debt crisis Financial crisis Luxembourg Euro Europe Greece Global recession Banking David Gow guardian.co.uk

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A long-frozen roll of film may soon expose one of Mount Everest’s most enduring mysteries. England has long been caught in the romance of two British adventurers who scaled the mountain with a team in 1924 and were last seen a few hundred yards from its peak. Did George Mallory…

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Knox Leaves Prison

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Amanda Knox left prison today, a free woman for the first time in four years, after an Italian appeals court threw out the young American’s murder conviction in the sexual assault and stabbing death of her British roommate. About 90 minutes after the verdict was handed down, a black Mercedes…

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Newly released emails reveal that White House officials and private investors were shocked by federal investment in a now-defunct solar equipment firm, the New York Times reports. Revealed today in a Congressional investigation, the emails express grave concern over a Department of Energy loan program that sunk $528 million into…

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Amanda Knox freed after four years in case that has no winners

American set to return home after verdict handed down amid extraordinarily tense courtroom scenes Rushed from the courtroom by police officers as she was racked with sobbing after she was cleared by the court, Amanda Knox was taken back to Capanne jail near Perugia and officially released with a speed that took her lawyers by surprise. Waiting for her in jail was Rocco Girlanda, an Italian MP who has campaigned for her release and who said Knox and her family would spend the night in Rome before taking a scheduled flight back to Seattle on Tuesday. “She was beside herself with joy and there was a huge cheer when she returned to the prison, an ovation from every cell,” he told journalists outside the jail minutes after Knox had sped off into the night in a black Mercedes laid on by Girlanda, on her way to meet her parents at an undisclosed location before driving to Rome. “Everyone was shouting ‘Libera, libera.’ It was like being in a football stadium and was something I will never forget. Amanda saluted the other prisoners with a timid wave – she didn’t really know how to react.” Knox took minutes to pack up her belongings before thanking the prison chaplain, Father Saulo Scarabattoli, with whom she had spent most of Monday between her final speech and her return to court to hear the sentence. “She spent the day in the chapel singing then pacing up and down to pass the time as the expected time for the verdict slipped,” said Girlanda. “She was nervously asking ‘Why do they need so much time?’” he added. “After the verdict I asked her ‘So what really did happen that night?’ and she said exactly the same thing she has always said – ‘I was at home with Raffaele’. Now the first thing she wants to do is stretch out on green grass,” he said. Earlier in the day Knox’s voice had choked with emotion – at times, to the point she was unable to continue until she had caught her breath – as she pleaded with the judges who cleared her and her Italian former boyfriend, Raffaele Sollecito, of the murder of Meredith Kercher. “I want to go home to my life,” she told the court. “I don’t want to be deprived of my life, my future, for something I have not done.” At the end of an intensely emotional plea, delivered entirely without notes and in near-perfect Italian, she said very quietly: “Do justice.” On Tuesday night, her request was answered. After a brief statement amid extraordinarily tense courtroom scenes, Knox and Sollecito were cleared of murder. The pair were free to go. Speaking above the roar of a crowd outside the court in Perugia, Deanna Knox, Amanda’s sister, said: “We’re thankful that Amanda’s nightmare is over. She has suffered for four years for a crime that she did not commit.” Deanna also thanked her sister’s legal team. “Not only did they defend her brilliantly, but they also loved her,” she said. “We are thankful for all the support we have received – people who took the time to research the case and could see that Amanda and Raffaele were innocent. And last, we are thankful to the court for having the courage to look for the truth and to overturn this conviction.” Knox’s lawyer, Carlo dalla Vedova, expressed his condolences to the Kercher family. Asked what Knox would do now, he said: “We’re looking forward to taking her back home as soon as possible.” Dalla Vedova told the BBC: “Justice has superseded and has rectified a mistake. It was a terrible tragedy at the beginning because of the death of Meredith. “Meredith was a friend of Amanda, so we should never forget this. We have to respect the sorrow of the family. But there’s no winner here. Justice has recognised that Amanda was not involved in the murder.” Luciano Ghirga, who also represented Knox, called the trial “the case of my life”, while Francesco Sollecito, the father of Raffaele Sollecito, said he had “allowed himself some tears” after his son’s acquittal. Speaking outside the court, he said Raffaele had “nothing to do with the death of Meredith Kercher”. He added: “I would have liked to talk to her relatives as well, as they have lost a daughter in a very cruel way. But tonight, they have given me back my son.” As the verdict announced in the courtroom in Perugia was broadcast around the world, there were cries of “She’s free!” and “we did it!” in a packed hotel room in downtown Seattle where a group of Knox’s friends and supporters had gathered for hours to await the news. People cheered and hugged as if they had just won the Super Bowl. Tom Wright, a screenwriter and friend of the Knox family, said: “To Amanda herself, we say, way to go kid. We will welcome you with open arms and open hearts.” John Lange, who taught Knox’s high school drama class at Seattle preparatory school, wiped away tears with a tissue. “It’s all good, I’m hugely relieved,” Lange said, describing Knox, who attended the school for four years before graduating in 2005, as sweet. “When I knew her she was kind, hard-working and a team player. There was not a mean bone in her body,” he said. In contrast, Kercher’s family appeared dazed as the judgment was read out. They consoled each as Sollecito’s relatives punched the air inches away from them in the hot courtroom, which was packed with plain clothes policemen. Chief prosecutor Giuliano Mignini, removed and folded his court room robes and left without commenting. Outside the court room in a packed piazza lit by television lights, there were shouts of “shame, shame” among the crowd. “She was there at the scene of crime, how can they just reduce her sentence from 26 years to zero?,” asked student Filomena Orlando, 23, who was in the crowd. Before the verdicts, at a hastily arranged press conference in Perugia, Kercher’s family said the “brutal death” of the British student had been overlooked. “I think Meredith has been hugely forgotten,” said Kercher’s sister, Stephanie, sitting alongside her mother Arline and brother Lyle. “Everyone needs to remember the brutality of what happened and everything she went through, the fear and the terror, and not knowing why.” “It is very hard to find forgiveness at this time,” said Lyle Kercher. “Four years is a very long time but on the other hand it is still raw. You would find it hard to forgive if that was your sibling.” Stephanie Kercher also suggested then that the family would accept the court’s decision if it were to overturn them. “If they decide on the information available to them and not on media hype, justice will be hopefully be done,” she said. “Whichever way that will be, we will have to deal with.” Asked if she would reach out to the Knox family, Arline Kercher said: “I don’t know. We need to find out what happened.” Meredith’s death had left a “huge absence” for the Kerchers, said her brother. “It is as if she went on an extended break and we haven’t seen her come back as yet,” he said. Knox had spent the morning in court making her final plea to the court. Standing in a packed but hushed courtroom, her hands raised with her fingertips touching, almost as if in prayer, the 24-year-old said: “I am not what they say [I am]. And I did not do the things they said I did. I didn’t kill. I didn’t rape. I didn’t rob.” Dressed in a green shirt, and black hooded jacket, the University of Washington student – who had been jailed for 26 years for the murder – said she had good relations with all her three flatmates, even if she was a bit untidy and inattentive. “I lived my life above all with Meredith. She was my friend. She was always kind to me,” she said. Kercher’s death had made her frightened and disbelieving, she said; the person “who had the bedroom next to me was killed. And if I had been there that evening, I would be dead. Like her. The only difference is that I was not there. I was with Raffaele.” Earlier, her former boyfriend had made an appeal for his own freedom. “I’ve never done anyone any harm. Never. In my whole life,” Sollecito told the court. He said he had thought the accusation would somehow evaporate. “Instead of which, it’s not been like that. I’ve had to put up with, go on in, a nightmare,” he said. He had spent more than 1,400 days in prison during which, like Knox, he had been confined “for almost 20 hours [a day] in a space measuring two-and-a-half metres by three”. He ended by asking to give the judges a bracelet, inscribed with the words “Free Amanda and Raffaele”, which he said he had not taken off since the day it was given to him, and which had yellowed with age in the meantime. It was, he said, “a concentrate of various emotions: desire for justice, and the effort, the path we have followed in this dark tunnel towards a light that seemed ever further away”. Amanda Knox Meredith Kercher Italy Europe United States John Hooper Tom Kington guardian.co.uk

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Two Democrats in Congress are trying to hit Bank of America right in the wallet, the Huffington Post reports. With BofA instituting a $5 monthly debit card fee to many consumers , Senate Majority Whip Dick Durbin and Rep. Brad Miller are mounting legislation that would help consumers easily swap electronic…

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A tragic story out of Florida: An 18-year-veteran of the Orlando Police Department shot and killed his 21-year-old son after an argument Saturday night. Police say Tim Davis, Sr., 47, was fighting with Tim Davis, Jr., over custody arrangements regarding Davis Jr.’s child. Davis Sr. admitted to police he…

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Hermain Cain has just run “head first into the brick wall of conservative anti-anti-racism,” writes Adam Serwer at Mother Jones . To recap: Rick Perry spent yesterday dodging bullets over his family’s ill-named hunting camp, “Niggerhead”; Herman Cain rebuked Perry on TV for “a lack of insensitivity”; now GOP commentators are…

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Halloween is coming early for the Occupy Wall Street protesters. In what can only be described as a brilliant move that will help them be taken seriously, organizers are urging protesters to dress up like corporate zombies and eat Monopoly money, so that Wall Street denizens can “see us reflecting…

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So maybe President Obama can see around corners after all? Newsweek editors abruptly pulled a quote today they had attributed to Nancy Pelosi , about how Obama’s team “can’t see around corners; they anticipate nothing.” Turns out those words were written by a reporter in her notes for an earlier Pelosi…

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