German and French government sources say countries’ leaders have agreed compromise on losses private creditors are to take Germany and France struck a deal early on Thursday morning intended to rescue Greece and the euro from financial ruin. After six hours of talks in Berlin prior to a crucial summit in Brussels, Chancellor Angela Merkel and President Nicolas Sarkozy agreed a compromise on the losses that Greece’s private creditors are to take, in a complex new bailout for Athens, German and French government sources said. Jean-Claude Trichet, the president of the European Central Bank, who has been Merkel’s most vocal opponent in the wrangling over how to respond to the euro crisis, rushed to Berlin late on Wednesday night to take part in the negotiations. No details of the pact were revealed. But senior officials at the European commission in Brussels disclosed that a compromise was in the air to save Greece and halt contagion by levying a tax on banks in the eurozone – opposed by Berlin and proposed by Paris – as well as a long-term Greek debt rollover stretching for decades, and other measures aimed at reducing Greece’s crippling debt level. It appeared that the multi-pronged formula would inexorably lead to Greece being deemed to be in sovereign default, at least temporarily. The last-minute deal, following a telephone dispute between the two leaders on Tuesday, is to be put to the heads of the European commission, council and central bank this morning before an emergency summit of the 17 leaders of single-currency countries. The Brussels summit – the 10th time in 18 months that European leaders will have tried to save the euro and Greece from collapse – is being staged amid grave pessimism that politicians will be able to bury their differences and combine to rescue the single currency. It remained to be seen if the Franco-German compromise would win the support of other leaders and would go far enough to satisfy the financial markets. Amid a febrile mood and an ominous sense that the euro was facing a make-or-break moment, an unusual hush descended on the key European capitals on Wednesday. It was as if leaders and officials had been struck dumb by the weight of the responsibility bearing down on them. The silence was broken only by José Manuel Barroso, the president of the European commission, who chastised the current crop of EU leaders, declaring that “history will judge this generation of leaders harshly” if they refuse to act decisively in the euro’s darkest hour. The emergency summit brings together the 17 government leaders of the eurozone, plus the heads of the European Central Bank, the commission, and Christine Lagarde, until recently French finance minister and the new head of the International Monetary Fund. The main challenge is to forge a pact that will reduce Greece’s crippling level of debt. The fundamental issue is who pays for that. On Wednesday night, the Germans insisted that Greece’s private creditors pick up a large part of the tab, the main dispute with Sarkozy and Trichet. The markets are more than jittery, and Washington is nervous. President Barack Obama intervened on Tuesday by phoning Merkel. “Might this meeting finally bring an end to the farce surrounding the euro area’s response to Greece?” said Daiwa Capital Markets. “No chance.” Amid growing calls from Washington, the IMF, and the markets for a radical step towards eurozone fiscal union as the only hope of saving Greece from default and inoculating the euro, the Germans exasperated many by pooh-poohing such notions. “I know there’s a great longing for a big decision, proposals for eurobonds, a big restructuring [of Greek debt], for a transfer union, and much besides,” said Merkel on Tuesday. “I will not give in to this. The government will not give in to this.” Greece was granted a €110bn (£97bn) bailout in May last year, since when its debt has soared to €340bn, nudging 160% of gross domestic product and rising. It needs a second bailout of a similar size to keep afloat until 2014. New suggestions this week from France are to impose a levy on eurozone banks, raising €10bn a year. This is problematic. It would take time to establish, would penalise banks not exposed in Greece, would exempt non-eurozone banks lending to Greece, and would run into political opposition in national legislatures. The advantage is it would impose private creditor involvement without seeing Greece declared to be in default. Other options are lower interest rates on loans to Greece, debt rollovers or swapping bonds for longer maturities, using the €440bn eurozone bailout fund. The talk in Brussels last night was of a combination of rollover, bank levies, and haircuts that could cut Greece’s debt by about a quarter. The reported Berlin pact was believed to be a mixture of the various options. “What cocktail will they make out of all this?” said a senior commission official. “The real priority is that they produce a cocktail that everyone can drink.” The major challenge was to finesse the complex package in a way that does not trigger declaration of Greek default by the international ratings agencies. That looked unlikely. The ECB is warning it will refuse to accept defaulted bonds as collateral from Greek banks in return for liquidity to keep them afloat. The eurozone taxpayer, in the form of the European financial stability facility, would then need to step in to save the Greek banks or risk a wider European banking crash. T he crisis has been compounded in the past fortnight by Italy, whose borrowing costs are also now close to unsustainable. “Either we act as Europe, or we are not actors at all,” warned Barroso. “The situation is very serious. It requires a response. Otherwise the negative consequences will be felt in all corners of Europe and beyond. Leaders need to come to the table saying what they can do and what they want to do and what they will do. Not what they can’t do and won’t do.” Euro European monetary union European commission Currencies European Union Angela Merkel Europe Nicolas Sarkozy Greece Ian Traynor guardian.co.uk
Continue reading …Click here to view this media The kabuki theater from House Republican freshman on raising the debt limit continues — GOP congressmen show up at White House, want plan : While President Obama and Congressional GOP leaders continue to negotiate a debt ceiling deal behind the scenes, several House Republican freshmen are growing impatient. Nearly 20 of them ventured to the gates of the White House Tuesday with a letter in hand to the president demanding the he immediately deliver Congress a written proposal to raise the debt ceiling. “Given the significance of our debt-driven crisis and the historic importance of the negotiations, we believe it is imperative that the work towards any agreement be as transparent as possible so that American people have a chance for careful evaluation of the process free from political posturing,” the members wrote in the letter. Rep. Tom Reed, who led the freshman lawmakers to the White House, told reporters the group doesn’t care if opposing a debt ceiling increase harms their reelection chances. “We don’t care about reelection,” he said. “We felt it was incumbent to come to the White House because this is a critical issue.” Members of the group added they will not agree to any debt ceiling proposal unless there are detailed spending cuts and timelines involved. Apparently they don’t think their leader John Boehner is capable of negotiating for them if they’re pulling stunts like this.
Continue reading …Click here to view this media The kabuki theater from House Republican freshman on raising the debt limit continues — GOP congressmen show up at White House, want plan : While President Obama and Congressional GOP leaders continue to negotiate a debt ceiling deal behind the scenes, several House Republican freshmen are growing impatient. Nearly 20 of them ventured to the gates of the White House Tuesday with a letter in hand to the president demanding the he immediately deliver Congress a written proposal to raise the debt ceiling. “Given the significance of our debt-driven crisis and the historic importance of the negotiations, we believe it is imperative that the work towards any agreement be as transparent as possible so that American people have a chance for careful evaluation of the process free from political posturing,” the members wrote in the letter. Rep. Tom Reed, who led the freshman lawmakers to the White House, told reporters the group doesn’t care if opposing a debt ceiling increase harms their reelection chances. “We don’t care about reelection,” he said. “We felt it was incumbent to come to the White House because this is a critical issue.” Members of the group added they will not agree to any debt ceiling proposal unless there are detailed spending cuts and timelines involved. Apparently they don’t think their leader John Boehner is capable of negotiating for them if they’re pulling stunts like this.
Continue reading …The bizarre theater surrounding the tabloid phone-hacking scandal that’s rocked Britain’s media world has the Internet exploding with comedic, satirical jabs about the players involved. The latest online gem: Ask Murdoch. The site’s tagline: “Ask Murdoch: Where Rupert forgets stuff.” The site is affiliated with the blog Political Scrapbook. The website, a spoof on search
Continue reading …Planned execution of Andrew DeYoung raises questions over prisoner’s rights and puts new lethal injection drug under scrutiny US officials are trying to stop the videotaping of an execution, thought to be the first such recording in two decades. Andrew DeYoung is to die on Wednesday evening for the murder of his parents and teenage sister in suburban Atlanta in 1993, barring court intervention over his claim that the state’s new lethal injection drug could cause him needless pain and suffering. Meanwhile, the state attorney general’s office has appealed against a ruling by a Fulton county judge that DeYoung’s execution should be recorded. Brian Kammer, a lawyer for a death row inmate, Gregory Walker, said his interest was in “preserving the best evidence possible” for his challenge to the state’s method of lethal injection. Kammer said the only other time an execution was videotaped was in California in 1992, when lawyers were challenging the use of gas as a method of execution. In seeking a stay, DeYoung’s attorneys argued that using pentobarbital would cause DeYoung to suffer based partly on accounts of Roy Blankenship’s execution on 23 June. Witnesses said Blankenship jerked his head several times during the procedure, looked at the injection sites in his arms and muttered after the pentobarbital was injected into his veins. It was the first time the drug had been used in Georgia. Amid a national shortage of sodium thiopental, states have been turning to pentobarbital. The drug has been used to put at least 18 inmates to death in eight states this year. Critics of the death penalty claim Blankenship’s unusual movements were proof that Georgia should not have used pentobarbital to sedate him before injecting pancuronium bromide to paralyse him and then potassium chloride to stop his heart. However, state prosecutors argue Blankenship’s movements occurred before the sedative took hold. The state attorney general’s office has said adequate safeguards were in place to prevent needless suffering, including a consciousness check before the second and third drugs are administered. The consciousness check was used for the first time in Blankenship’s execution. In addition, prosecutors argued the courts have ruled that a certain amount of pain is acceptable during an execution. Earlier on Wednesday, a federal judge rejected DeYoung’s request for a stay of execution because his case had “absolutely no likelihood of success on the merits”. The prisoner had failed to show the state’s use of pentobarbital as part of a lethal three-drug combination violated the constitutional ban on cruel and unusual punishment, US District Judge Steve Jones said. DeYoung appealed to the Georgia supreme court and the 11th US circuit court of appeals. Capital punishment United States guardian.co.uk
Continue reading …MSNBC's Martin Bashir argued on Wednesday's Morning Joe that the News of the World hacking scandal demonstrates why government should be allowed to regulate private ownership of media. “All of this reveals the fact that people like Michele Bachmann, Mitch McConnell, John Boehner, talk about government getting out of the way, well this is what happened in this country. In 1968, Rupert Murdoch bought one newspaper, and government got out of the way. Then he bought a second, then he bought a third. ” Bashir warned against allowing the close ties between media and government that exist between Rupert Murdoch and British politicians. “Eventually people began to wake up to the fact that his power base in the country was bigger than anybody else's,” said Bashir. Although Murdoch is highly influential, it is not as though he is without competition. Murdoch's other papers still have to compete with other major British national papers including The Guardian, The Financial Times, and The Daily Telegraph. It is also odd for an MSNBC anchor to complain about media conglomeration. Bashir's network is itself part of the larger NBC-Universal company, which also operates CNBC and Telemundo. The company is currently owned by Comcast, which owns several operations in both television programming and interactive media. NBC is also part owned by General Electric, which also has interest in other media ventures. Bashir can also hardly get away with criticism close ties between the press and politicians. Joe Scarborough, on whose show Bashir was saying all of this, is a former politico who has now ventured into media, as are former political staffers and current MSNBC hosts Lawrence O'Donnell and Chris Matthews. It would thus also be interesting if Bashir would opine on his network's yanking of Mark Halperin after a phone call from the White House press office. A transcript of Bashir's remarks, which aired at 7:21 on Wednesday's Morning Joe, follows below. MSNBC MORNING JOE 07/20/2011 7:21 am EDT JOE SCARBOROUGH: Defiance on Cameron's part. And Ed Miliband leaned in with, I thought, some very damaging questions, a damaging line of questions. But then Cameron came back with a good bit of evidence that this is how business was done with Brown and Blair that the entire culture has been this way for some time. Explain British politics and the British press, and how intertwined it's been. MARTIN BASHIR: Well, what you've just seen is an antagonistic interaction on both sides, but what it all reveals is the fact that Rupert Murdoch has actually corralled and controlled so many of these politicians that, so when Ed Milibanda throws certain criticisms at the Prime Minister, the Prime Minister is able to say “well Mr. Miliband of your 32 lunches with the media, 11 of them were with Mr. Murdoch and his company.” All of this reveals the fact that people like Michele Bachmann, Mitch McConnell, John Boehner, talk about government getting out of the way, well this is what happened in this country. In 1968, Rupert Murdoch bought one newspaper, and government got out of the way. Then he bought a second, then he bought a third. Within 25 years he owned four national newspapers. Then he established a satellite television company, and eventually people began to wake up to the fact that his power base in the country was bigger than anybody elses.
Continue reading …Schools can still offer range of courses but only results in most rigorous qualifications will count under government plans Thousands of vocational qualifications which do not offer pupils a chance to go on to further study after 16 are due to be stripped out of school league tables, the government has announced. Qualifications such as an NVQ level 2 in hairdressing, which is worth the equivalent of six GCSEs, and an OCR level 2 national certificate in travel and tourism – worth four GCSEs – are likely to be ditched. But ministers are expected to allow graded music exams to count as the equivalent of a GCSE from 2014. Music exams are currently given the same value as part of a GCSE. Schools will still have the freedom to offer a range of courses but only results in the most rigorous qualifications will boost their position in league tables. Ministers are proposing that qualifications should count only if they have been taught for at least two years and have good levels of take-up among students. Pupils must also be offered “good progression” into post-16 courses rather than a limited number of occupational areas. The qualifications must also have a substantial proportion of external assessment. More than 4,800 qualifications currently count towards school results whether or not they include external assessment. Only two non-GCSEs will be allowed to count towards the existing five A* to C GCSE benchmark of success, the government says. The number of “equivalent” qualifications taken in schools up to 16 has boomed in recent years from 15,000 in 2004 to 575,000 in 2010. The proposed changes follow a review of vocational education carried out by Professor Alison Wolf, a public policy expert. She argues that pupils need to acquire “broad skills” to enable them to thrive over a lifetime of change. Wolf said: “In recent years schools have been under enormous pressure to pile up league-table points. When any qualification under the sun can contribute these, the pernicious effects are obvious. We need a single list of good qualifications, which all have the same key structural characteristics, but cover a wide range of content. They need to be stretching, standardised, and to fit easily into a typical pupil’s programme and into a school’s overall timetable.” The government confirmed on Wednesday that the makeup of the English baccalaureate will stay the same for the next set of league tables, which will be published in January based on this year’s results. Pupils’ results will count towards the EBacc if they achieve a C or better at GCSE in English, maths, geography or history, the sciences and a modern or ancient language. Brian Gates, chair of the Religious Education Council of England and Wales, accused the government of undermining religious education by not including it. He said: “The rigorous study of ethics, faiths and beliefs allows those selecting GCSE RE to develop strong written and verbal skills, as well as to gain a factual knowledge of the world we live in. It is a travesty that as we face challenges of cohesion and a weakening of our collective identity, the very subject that can make sense of it all has been deemed less academically viable than geography and history.” Vocational education Education policy School tables Further education Schools Jeevan Vasagar guardian.co.uk
Continue reading …Fast-food firm plans to break its record and build the world’s largest McDonald’s at the Games site in Stratford, east London It might not quite have been what Pierre de Coubertin had in mind when he coined the “faster, higher, stronger” motto of the modern Olympics. But the world’s largest fast-food chain is using the Games in London next year as a pretext to break its own records; it has announced plans to open the world’s biggest, and busiest, McDonald’s restaurant on the Stratford site. Metres from where famous athletes will strain every sinew to win their medals, up to 1,500 people will be able to dine in the biggest McDonald’s yet built. The two-storey, 3,000 sq-metre, diner will be one of four McDonald’s restaurants built in and near the Olympics park in east London. There will be two public eateries, one in the athlete’s village, one in the media centre. The firm insists there is no discrepancy between the Games’ ideals and its plans to serve 1.75m of its meals during the 29 days of the Olympics and Paralympics. The food chain’s UK chief executive, Jill McDonald, said: “To be involved in the greatest sporting event on earth is hugely exciting … We want everyone who visits our Olympics park restaurants to have the best possible customer experience, and are confident that the look and feel of these cutting-edge designs will provide that environment.” McDonald’s is a long-standing sponsor of the Olympics and the World Cup, with its exclusive deals ensuring it is the only branded restaurant on site. But its presence is bound to attract protests from those who feel the Games should not be so closely associated with potentially unhealthy food brands. The London organising committee will say that it relies on its own domestic sponsors, who have raised £700m, and the International Olympic Committee’s 11 backers, to find two-thirds of its £2bn Games budget. The organisers promise a wide range of food available at the Olympics park, including from local suppliers. But it will all have to be unbranded, with only official sponsors afforded the right to have their names on the food they sell. McDonald’s is expected to use the Games to try to highlight its “corporate social responsibility”. It has been involved in the recruitment of 70,000 Games volunteers and has pledged re-use of the furniture, refrigeration plants and other equipment in its other UK restaurants after the Olympics. McDonald’s Food & drink industry Olympic Games 2012 Owen Gibson guardian.co.uk
Continue reading …Communications regulator says BT must charge other ISPs less for using its networks Up to 3m homes and businesses in rural parts of the UK could receive better value broadband services by the end of the year, following an Ofcom decision to force BT Wholesale to reduce the amount it charges other internet service providers (ISPs) to use its networks. The communications regulator has ruled that BT must reduce its charge to ISPs each year, by a rate of at least 12 percentage points below inflation. For example, if the RPI inflation rate is 5%, BT will have to cut its charges by 7%. The ruling is to take effect by mid-August 2011 and remain in force until 31 March 2014, and paves the way for cheaper broadband prices for millions of consumers and businesses in less densely populated areas across the UK. The rural areas set to benefit from the change include parts of Scotland, Wales and Northern Ireland as well as Norfolk, Yorkshire, Cumbria, Northumberland, the south-west of England and other areas. These are predominantly areas lacking in competition among ISPs. Ofcom said the price change will boost competition and may lead to either cheaper or better quality services – if ISPs do not pass on the savings, they may decide instead to invest in faster broadband services. The regulator hopes its pricing intervention will help narrow the gap between the prices consumers in rural regions pay for broadband services and those in urban areas. Ernest Doku, technology expert at uSwitch.com, said: “This move could wipe out the postcode lottery that has seen rural householders treated as second class broadband citizens. It has the potential to ultimately cut the costs of the bills of those living in rural areas. “By increasing competition, Ofcom is making sure that consumers will end up the real winners as they will now have a greater choice of providers. This means the ISPs can look to offer the best deals possible to win new customers over and, now that they can access BT’s infrastructure at a lower cost, it could only be a matter of time until they pass these savings on.The ball is firmly in the court of other providers.” But Michael Phillips of BroadbandChoices.co.uk was sceptical about whether the 12 percentage point reduction would have a lasting impact. He said: “Ofcom’s recent broadband map of the UK highlighted how huge swathes of the UK countryside are enduring poor connection speeds. If the UK is to be taken seriously as a tech economy, the government needs to dedicate time and resource to bringing the whole of the UK into the online age.” Ofcom has also published a map (PDF) showing where in the UK the charge controls will apply. The regulator said its December 2010 action to lift wholesale regulation in other areas of the country had resulted in 78% of UK households in mainly urban or densely populated areas now seeing effective competition among ISPs. Consumer affairs Household bills Telecommunications industry Broadband Internet Ofcom Television industry Mark King guardian.co.uk
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