The US president and UK prime minister call on the Libyan leader to step down at a press conference in London Barack Obama and David Cameron have joined forces to declare that Nato allies will ratchet up the pressure on Muammar Gaddafi as they issued clear demands for the Libyan leader to stand down. In a joint press conference in the gardens of Lancaster House, the prime minister said he had agreed with the US president that Nato would turn “up the heat” on Libya. Cameron all but confirmed that Britain would join forces with the French in sending Apache attack helicopters to Libya . An announcement could be made as soon as Thursday. But Obama indicated that the US would be leaving the main military operation to France and Britain. The two leaders covered a broad range of subjects in a 50-minute press conference in the sunshine outside Lancaster House. They discussed Obama’s speech on the Middle East , the pace of deficit reduction and the case of Gary McKinnon. The president declared that it would be a “mistake” for the Palestinian Authority to make a unilateral declaration about becoming an independent state at the UN general assembly in September. The press conference was dominated by Libya as Britain prepares to announce the deployment of Apache helicopters. The prime minister said: “The president and I agree that we should be turning up the heat in Libya. I believe the pressure is on that regime. You see it in the fact that rebels have successfully liberated much of Misrata. You see it in the success in other parts of the country. You see it in the strength of the coalition. You see it in the growth of the national transitional council. “So I believe we should be turning up that pressure. On Britain’s part we will be looking at all the options for turning up that pressure, obviously within the terms of UN resolution 1973, because we believe we need to keep enforcing that resolution: protecting civilians, pressurising that regime so that the Libyan people have a chance to decide their own future. Within that, those are the options we will look at.” Obama endorsed Cameron’s view that pressure should be intensified as he pointed out that “enormous progress” had been made in Libya after military action, based on a UN resolution, saved lives. “I absolutely agree that, given the progress that has been made over the last several weeks, that Gaddafi and his regime need to understand that there will not be a letup in the pressure we are applying. The United Kingdom, the United States and our other partners are putting a wide range of resources, consistent with the UN mandate, in order to achieve that pressure. I think that we will ultimately be successful. The goal is to make sure that the Libyan people can make a determination about how they want to proceed and that they will be finally free of 40 years of tyranny and they can start creating institutions for self-determination.” The US president also said Gaddafi must stand down. “We will continue those operations until Gaddafi’s attacks on civilians cease. Time is working against Gaddafi and he must step down from power and leave Libya to the Libyan people.” But Obama made clear that the Libyan operation was different to Iraq. “The one thing we have learned is that even as we promote the values and ideals that we care about, even as we make sure that our security interests are met, that we are using military power in a strategic and careful way. We are making sure that as we promote democracy and human rights we understand the limits of what the military alone can achieve. We are mindful that ultimately the fate of these regions is going to be achieved by the people there themselves.” Obama added: “This is not the UK and the US alone. We have a broad range of partners under an international mandate designed to save lives and ensure that we did not have the sort of massacre that would lead us then to look back and say why did we stand by and do nothing?” The president highlighted concerns about the Palestinian unity agreement when he raised questions about the possibility of a unilateral declaration of independence at the UN. He also made clear that Hamas cannot join negotiations until it abides by the conditions of the Quartet. This demands the recognition of the state of Israel. Obama said: “The Israelis are properly concerned about the agreement between Fatah and Hamas. Hamas has not renounced violence, Hamas is an organisation that has thus far rejected the recognition of Israel as a legitimate state. It is very difficult for Israelis to sit across the table and negotiate with a party that is denying your right to exist and has not renounced the right to send missiles and rockets into your territory. “As for the UN … the UN can achieve a lot of important work. What the UN is not going to be able to do is deliver a Palestinian state. The only way we are going to see a Palestinian state is if Israelis and Palestinians agree on a just peace. So I strongly believe that for the Palestinians to take the UN route, rather than the path of sitting down and talking with the Israelis, is a mistake. It does not serve the interests of the Palestinian people. It does not serve their goal of achieving a Palestinian state.” Obama sparked a debate in Britain about the pace of deficit reduction when he was asked whether the coalition government’s plan to eliminate the structural deficit over the course of this parliament was too fast. The president offered some comfort for Labour when he repeated his mantra from the 2009 G20 summit in London hosted by Gordon Brown: that the circumstances of each country is different. “Obviously the nature and role of the public sector in the United Kingdom is different than it has been in the United States. The pressures that each country are under from world capital markets are different, the nature of the debt and deficits are different and, as a consequence, the sequencing or pace may end up being different.” But he offered helpful words for Cameron when he said governments had to “live within their means”. On Gary McKinnon, the alleged computer hacker fighting extradition to the US for years, Obama said: “We have proceeded through all the processes required under our extradition agreements. It is now in the hands of the British legal system. We have confidence in the British legal system coming to a just conclusion. We will await resolution and will be respectful of their processes.” Cameron said the matter was being considered by Theresa May, the home secretary. Barack Obama David Cameron Libya Nato Middle East Africa Nicholas Watt guardian.co.uk
Continue reading …Click here to view this media After the devastating tornado we saw hit Joplin Missouri this week with who knows how many more coming before the week is over, who does Fox’s Neil Cavuto think is the person to bring in to discuss President Obama’s response to the disaster? I kid you not, none other than Mr. Heck-of-a-Job Brownie, Michael Brown. And of course Brown was critical of President Obama spending the last couple of days over in Ireland and England instead of coming home for a photo-op like we saw Bush give after Hurricane Katrina. I hate to break it to them, but I think the last thing any of those people are worried about is whether the President swooped right in there to shake some hands and have his picture taken. What they care about is whether there’s a prompt response and how quickly the disaster relief is getting to them. I would imagine they’d also be a lot more concerned about the remarks from Eric Cantor who decided to do some more hostage taking with their disaster relief , but of course that subject didn’t come up during the course of their conversation. They seem pretty desperate to paint President Obama as acting just like Bush did after Katrina. When someone tells me he has to be shown a DVD in Air Force One to even realize what the news coverage was on the disasters days later because they were afraid of disturbing him on his vacation like they did Bush , then tell me all things are equal.
Continue reading …Ali Abdullah Saleh defies western efforts to negotiate an exit as clashes continue in capital for third day Yemen’s President Ali Abdullah Saleh has issued messages of defiance, saying he will not step down or allow the country to become a “failed state”, as clashes continued in the heart of the capital for a third day. Saleh’s sharp response on Wednesday – read by his spokesman – suggested he was prepared to escalate the fight against opposition tribes that have been locked in urban combat with government forces in Sana’a since Monday, leaving at least 41 dead and dozens badly injured. The conflict also sharply increased chances that Yemen’s three-month uprising could turn into a militia-led revolt after street protests and Arab mediation failed to crack Saleh’s 32-year authoritarian rule. “I will not leave power and I will not leave Yemen,” the spokesman, Ahmed al-Soufi, quoted Saleh as saying at a meeting with tribal allies. Saleh also took a direct swipe at US-backed efforts to negotiate an exit. “I don’t take orders from outside.” “Yemen will not be a failed state. It will not turn to al-Qaida refuge,” Saleh said, in another stab at western fears that chaos in Yemen would open the door for an al-Qaida offshoot to expand its operations. The Yemen-based cell al-Qaida in the Arabian Peninsula is linked to the attempted Christmas Day 2009 bombing of an airliner over Detroit and explosives found in parcels intercepted last year in Dubai and Britain. Despite his tough talk, Saleh’s statement also promised he would try to keep the latest violence from “dragging the country into a civil war”. The clashes began on Monday after Saleh’s troops tried to storm the compound of the head of Yemen’s largest tribe, the Hashid. Hundreds of tribal fighters then responded with fierce attacks on government forces. The battles have ravaged the capital’s central Hassaba district, which contains government offices and the headquarters of Saleh’s ruling party. The tribal fighters have occupied several government buildings while Saleh’s forces have used the interior ministry as their frontline base. Video on the al-Jazeera network showed destroyed walls and ceilings in one of the houses in the compound while the injured, many in traditional Yemeni dress and others in military-style uniforms, were rushed to a field clinic. An Associated Press reporter saw dozens of families packing up and fleeing the Hassaba district for safety outside the capital. Meanwhile, eyewitnesses said that all access to Sana’a was being blocked by pro-government Republican Guards, who are under the command of Saleh’s son, leaving hundreds of Yemenis trying to enter the capital stranded and forced to spend the night in their cars. The fighting also appears to be widening into nearby neighbourhoods. Volleys of mortars hit an army unit that had defected to the opposition side in the district of al-Nahda, killing three and injuring 10 others, according to a military official. Medical officials said 24 tribesmen were killed over the past two days, while government officials said 14 soldiers were killed and 20 were missing. Yemen Middle East Arab and Middle East unrest al-Qaida guardian.co.uk
Continue reading …French finance minister will seek the presidency of the International Monetary Fund to replace Dominique Strauss-Kahn French finance minister Christine Lagarde announced Wednesday that she will seek the top job at the International Monetary Fund , a candidacy that has widespread support across Europe. Lagarde had remained silent about whether she wanted the job, and said she came to the decision after “mature reflection” and consultating with French president Nicolas Sarkozy. “If I’m elected I’ll bring all my expertise as a lawyer, a minister, a manager and a woman” to the job, she said. The IMF’s last managing director, Frenchman Dominique Strauss-Kahn, quit last week after he was accused of attempting to rape a New York hotel maid. Many European countries, including Germany and Britain, have offered their backing to a candidacy by Lagarde to run the IMF, which provides billions in loans to shore up the world economy. She indicated she would not focus exclusively on Europe. “No zone has been spared by the financial crisis,” she said. “I want to get the biggest possible consensus for my candidacy.” The IMF has traditionally been run by a European, while the World Bank has been run by an American. But representatives of major developing nations on the IMF’s board issued a joint statement on Tuesday urging the lending agency to abandon that practice. Lagarde emerged as the European front-runner in part on her reputation for her deftness at international negotiations to stabilise the world economy during the financial crisis. She also was seen as instrumental in getting the IMF and European Union to agree on rescue plans for Greece, Ireland and Portugal when their debt crises threatened the entire shared euro currency. The 55-year-old spent much of her career in the United States, where she headed the law firm Baker & McKenzie in Chicago. With excellent English, a direct manner and relatively pristine image, she is seen as a good candidate to quickly step into Strauss-Kahn’s shoes and manage Europe’s continuing debt difficulties. But potential legal troubles at home have clouded her potential candidacy, and some French critics say she would be a bad choice. Questions have surfaced about Lagarde’s role in getting arbitration in 2008 for French businessman Bernard Tapie, who won €285m (£247m) as compensation for the mishandling of the sale of sportswear maker Adidas. Lagarde was finance minister at the time of the decision. A decision is expected 10 June on whether to open an investigation, according to French media reports. Lagarde said she has “total confidence” about the issue and that investigators should be allowed to do their work. The decision on the next IMF leader is expected by the end of June. It will be made by the agency’s 24-member executive board, whose officials represent the 187 IMF member countries. The executive directors representing Brazil, China, India, Russia and South Africa said in a joint statement that they wanted to see the election of the next IMF chief be “truly transparent” and merit-based. “We feel it is outrageous to have the post reserved for a European,” said Nogueira Batista, IMF executive director from Brazil and one of the signers of the joint statement. But emerging economies have yet to rally around a single candidate, even as Europe has rallied around Lagarde. IMF Christine Lagarde Economics Global economy Dominique Strauss-Kahn guardian.co.uk
Continue reading …Thirty years ago, political cartoonist Steve Bell drew his first If… strip; ever since, he’s been a much-loved Guardian regular. He looks back on his career In pictures: Steve Bell at the Cartoon Museum ; Politicians including John Prescott, Edwina Currie and Nick Clegg on being drawn by Bell Hitting 60 gives you plenty of food for thought. Having a retrospective exhibition at the same time gives further cause for astonishment. How did I ever manage to draw that small, without glasses or artificial aids? How did I manage without scanning and email? Well, everything went by train. How did I manage with four young children snapping at my heels? I used to work at night, when they were all tucked up. My oldest son, born the year I started working for the Guardian , is now 30 with ankle-biters of his own. He’s grown – but have I? There is no defined career path to becoming a cartoonist . I came to it almost in reverse. I have loved cartoons, drawing and having a laugh, but the notion of doing it for a living didn’t take root until very late. I had studied art, but I found the idea of being an artist risible. ( Monsieur L’Artiste was one of the first characters I ever drew at university.) So I started out as a teacher, but the stress was unbelievable. I knew things had gone too far when being off to have my wisdom teeth taken out felt like a relief. What I craved was a job where I could shut myself in a room and talk to myself, sometimes very loudly and in a variety of accents. With my girlfriend Heather’s encouragement, I handed in my notice and followed my friend from university, Kipper Williams , into the daunting world of freelance cartooning. I had no portfolio and no contacts, other than those Kipper gave me, and no plan, other than the fantasies engendered by my infinite sense of entitlement. It was the second best decision in my life. The best was to marry Heather, which I did that same year, in 1977. While I was teaching, I had been drawing strip cartoons and illustrations, unpaid, for Birmingham Broadside, the city’s answer to Time Out . I had introduced a character called Maxwell the Mutant: having been exposed to deadly radiation, in the grand old comic book tradition, Maxwell would mutate into someone unexpected every time he drank a pint of mild. Since 1977 was a Jubilee year, he naturally mutated into the Queen. His deadly adversary was Neville Worthyboss, a thinly veiled and rather inadequate caricature of the then Tory leader of Birmingham city council, Neville Bosworth. Despite my ambition and self-belief, I knew I needed to work on my caricatures. I never realised they would become a life’s work. Through dogged persistence (I still cherish my rejection letter from the Beano), I found work writing and drawing children’s comics. My first professional effort in print, for IPC’s Whoopee comic , was Dick Doobie the Back to Front Man ; he sank without trace after a few months in 1978. But I was learning – and I had been paid. At a leftwing publication called the Leveller, I introduced a strip about a really obnoxious supreme being, Lord God Almighty . But I wanted to draw comics about politics. I tried Time Out repeatedly, which in those days had a leftwing slant, but there was nothing going. Then I went to the magazine’s offices for about the fifth time in 1979, immediately after the election of Margaret Thatcher , and saw the news editor, Duncan Campbell. He said they were looking for a comic strip to tackle the new Tory government. Would I like to submit a rough idea? I rushed home, grunted, strained and produced a pencilled rough of an allegorical strip where the animals were the people and the farm management were the government. They wanted one every fortnight; naturally, it became known as Maggie’s Farm. This was a huge break, but my Maggie needed work. I’m not someone who has an easy, natural talent for quick caricature, as Gerald Scarfe and Martin Rowson do. I take my time. It isn’t simply a question of getting the likeness: you have to discover the character behind the face. My early Thatchers are no more than press photos rendered into line drawings, but then the woman herself was not yet a fully formed personality. The Iron Lady with Churchill’s Trousers was an image that she consciously worked on, along with the darkening of her hair and the lowering and slowing of her voice. For a long time, though, I couldn’t identify what it was about her that really got to me. What her government was doing was very, very nasty, but there was something else as well. I came to realise, while drawing her over the first year of her government, that she was deranged, but in a very controlled way, and this was expressed in her eyeballs. Her utter self-belief, her total conviction of her own rightness, went way beyond arrogance. She was mad. Perhaps I subconsciously empathised with her for this. Even so, I hated her more than any other living being. Within a couple of years, she had managed to triple unemployment, slash services and lay waste to vast tracts of British industry. When I saw Thatcher for the first time, in October 1980, at the Conservative conference in Brighton, I was horrified and intrigued. The crowd was terrifying; the whole occasion felt like a gathering of the undead. This was where she unveiled the deathless phrases: “You turn. If you want to. The Lady’s. Not. For turning.” The delivery was leaden. It was like a bad stand-up comedian addressing a particularly slow audience. Tory audiences are well turned-out, shiny and simple-minded, and in all the years I have been studying them, nothing whatever has changed. The Guardian had informed me, in 1978, that they wouldn’t be using my work in the foreseeable future. But in 1981, we had a newborn son and a mortgage in the offing. So in desperation I sent off more stuff. It paid off. In November 1981, the first If… strip appeared. Within six months, the ludicrous Falklands war had broken out, and since all imagery emanating from the Task Force sailing south was so rigidly controlled by the Ministry of Defence, the kind of surreal graphic speculation that only a cartoon strip can provide came into its own. Nine years later, I was still hard at it when Thatcher fell from grace. It was great fun to draw a visual commentary on the fall as it happened. Her neck had thickened, her shoulders broadened, her quiff solidified. The eyeballs were wilder than ever : one hooded, one roaming free. Thanks to the wonders of fax, I was now able to draw a cartoon for publication the following day without having to go into the office (I had moved to Brighton). I produced my first big comment-page job on the day of Geoffrey Howe’s devastating resignation speech, then another on the day Thatcher quit. It was a horrendous amount of work, but it was addictive. With the arrival of John Major , and the outbreak of the Gulf war, I was sucked into doing two, three, then four large cartoons for the comment page a week, as well as the daily strip. I was so delighted at not to have to draw Thatcher any more that caricaturing Major came quickly and easily, as light relief. The logic was simple. He was one more useless Tory, only he was super-useless. He became Superuselessman, wearing not sleek red briefs over a bright blue body stocking, but Y-fronts over a grey suit. Major’s slow death went on for far too long: by 1997, I was overjoyed to be drawing the blazing underpants sinking into the Thames, never to be seen again – except when they reappeared on Edwina Currie’s head in 2002. Tony Blair took longer to capture. It wasn’t until stalking him at the Labour conference in Blackpool in 1994 that I noticed he had a little mad eye of his very own: politically and visually, he was channelling Thatcher. What Blair did was the appearance of conviction; what Gordon Brown did was the appearance of substance. Ten years of Blair gave way to the quick-quick-slow death of Brown. It was like drawing a crumbling cliff face, or the north end of a southbound cow. At David Cameron ‘s first conference as Tory leader, in Bournemouth in 2006, there was a sudden outbreak of pale blue skies, puffy clouds and trees waving in the breeze. The massed simpletons were still there, seething in the blue shadows, but they looked increasingly baffled. Then Cameron himself came on stage and burbled sweet nothings about the NHS. They didn’t believe a word of it and Cameron didn’t either, but he was channelling Blair. He had all the hand movements , the stiff, deliberate podium body language, and he could do sincerity almost as well as the master. But he’s smoother and doesn’t appear to possess any hair follicles. It turns out he is made of translucent pink rubber. Saddest of all is Nick Clegg , a rather poor clone of Cameron, who in turn is a tribute act to Blair, who is himself channelling Thatcher. And who was she channelling? Her father, Alderman Roberts , the grocer of Grantham town? Winston Churchill? Adolf Hitler? Beelzebub? Who can say? Am I getting cynical in my old age? I don’t think so. I have a strong feeling that I was born cynical and that, somewhere within me, a dewy-eyed idealist has always been struggling to get out. I have been lurking under the podium, drawing politicians so closely for so long, that I have almost come to like them. I don’t think they are any more venal and corrupt than we are. They talk bollocks because we talk bollocks – and because it’s their job. Yet sometimes they say something that pushes a button and lights up the room. It is a rare skill and it doesn’t happen often. Mostly, it is a slow slog through cliche and soundbite, followed by a slaughtering at the polls. What is worse is that many of them actually enjoy being done over satirically, since it shows that at least one person is paying them attention. These men and women are professional idealists and I take my hat off to them. Then I kick them up the arse. Because it’s not what they say or what they are, or even what they say they are, that gets my goat: it’s the things they actually do to us in our name. Bell Epoque: 30 Years of Steve Bell is at the Cartoon Museum , 35 Little Russell Street, London WC1, until 24 July Comics and graphic novels Newspapers Newspapers & magazines The Guardian Steve Bell guardian.co.uk
Continue reading …• Data boosts expectations rates will be left unchanged this year • ONS confirms GDP only grew 0.5% in the first quarter • But OECD says rates must rise if inflation is not to take hold Household spending has slumped to its lowest rate in nearly two years, underlining the sluggishness of Britain’s economy. The weakness in consumer spending even before the public spending cuts have fully kicked in will boost expectations that the Bank of England will not rush to raise interest rates in coming months, despite high inflation. However, the OECD, one of the west’s leading economic thinktanks, today called on the Bank of England to start raising interest rates this year to prevent inflation – currently at 4.5% – taking hold in the UK. In its twice-yearly report , the Paris-based OECD said Threadneedle Street would have to steadily increase borrowing costs over the next 18 months despite weak economic growth. Revised figures from the Office for National Statistics confirmed that the UK economy grew by 0.5% in the first three months of the year, following a drop of the same magnitude in the fourth quarter of 2010. The two quarters taken together suggest the economy was stagnating rather than continuing its recovery from recession. Some economists had hoped for a slight upward revision to 0.6%. Household spending shrank by 0.6% between January and March, the biggest quarterly drop since the second quarter of 2009 when the economy was mired in recession. Hetal Mehta, UK economist at Daiwa Capital Markets, said: “Most shocking is perhaps the scale of the fall in consumer spending. Following the contraction in the fourth quarter, these figures underline the significant weakness in the consumer sector. And given the recent comments from the Bank of England that unexpected weakness in consumer demand would mean a slower pick up in interest rates than markets have priced in, we believe these figures reinforce our view that the majority of the monetary policy committee will continue to vote for no change in interest rates this year.” However, providing yet more evidence of rising price pressures, the GDP deflator climbed by 1.8%, its biggest increase since 1996 – exacerbating the dilemma for the Bank. Investment spending fell by 4.4%, leaving government spending as the only pillar that was growing, by 1%. But this is unlikely to continue given the chancellor’s vast programme of spending cuts. ING economist James Knightley said: “This reflected the fact that government departments were making sure they spent their budgets ahead of the end of the fiscal year. Now we are in the new fiscal year with lower budgets we will start to see this component dragging growth lower.” The only bright spot in Wednesday’s GDP numbers was a 3.7% jump in exports, as British firms benefited from a weaker pound – while imports were down 2.3%, reflecting the weakness of the economy. “The positive contribution from net trade has been a long time coming, but the fall in investment is a blow to hopes that this would be the other pillar of growth. Instead, surprisingly, government spending continued to support the economy – perhaps the last hurrah before the spending cuts kick in,” said Mehta. Consumer spending Economics Economic growth (GDP) Interest rates Julia Kollewe guardian.co.uk
Continue reading …The OECD also said the sluggishness of the UK economy will feed through into higher unemployment The west’s leading economic thinktank warned the Bank of England on Wednesday that it would have to start raising interest rates this year to prevent inflation taking hold in the UK. In a downbeat assessment of the prospects for the economy, the Paris-based OECD said Threadneedle Street would have to steadily increase borrowing costs over the next 18 months despite the weakness of growth. The OECD reiterated its support for the government’s deficit-cutting strategy, but said George Osborne should remove exemptions on VAT in order to boost public spending on Britain’s infrastructure. And it said a full-break up of Britain’s banks should remain an option even though the Independent Commission on Banking set up by the coalition has so far backed only more limited reform of the financial system. Releasing its half-yearly Economic Outlook , the OECD predicted that the UK would continue to lag behind most other leading industrial nations as it recovered from the deep downturn of 2008-09. Growth is projected to be 1.4% in 2011, rising to 1.8% in 2012 – weaker than ministers are expecting. The sluggishness of the economy will feed through into higher unemployment, which the OECD expects to rise from 7.9% of the workforce in 2010 to 8.1% this year and 8.3% in 2012 “Growth is projected to remain slow during 2011″, the OECD said. “Public consumption and investment are set to fall significantly while household consumption is expected to remain subdued, reflecting falling real incomes and stagnant asset prices.” The report added, however, that the Bank of England’s monetary policy committee would have to act before too long to curb inflation. With the government’s preferred measure of annual cost of living increases currently standing at 4.5%, the OECD said the public’s belief that inflation would remain high illustrated “concerns about the Bank of England’s willingness to tolerate significant and persistent deviations” from the government’s 2% target. “A modest increase in interest rates should be taken during 2011 to stave off increases in inflationary expectations, which are already elevated. As the recovery gathers momentum in 2012, the pace of normalisation of interest rates should be stepped up.” The OECD said the government’s mix of tax increases and spending cuts were needed to rein in the budget deficit, slow the build of the UK’s national debt and maintain the confidence of financial markets. “Nevertheless, consolidation measures should be implemented in a way that minimises the impact on short-term growth. Ending exemptions and increasing lower rates in the VAT system would increase efficiency and raise revenues that could be used to lessen cuts in infrastructure investment.” The thinktank also questioned whether the ICB’s proposal to ringfence the retail operations of banks within wider financial groups went far enough. “A full break-up of banks and further increases in capital requirements should also remain options”. For the 34-nation OECD as a whole, the economic outlook report predicted growth of 2.3% in 2011, rising to 2.8% in 2012. While noting that the recovery was becoming “self-sustained and more broad based”, the OECD pointed to significant downside risks including rising commodity prices, a sharp slowdown in China and the soveriegn debt crisis in the eurozone. “All this suggests that the global crisis may not yet be over”, said the OECD’s chief economist Pier Carlo Padoan. He added that policymakers needed to address four big challenges – high unemployment, sustaining growth, repairing public finances and managing global imbalances. “The global economy is exiting recession but is not returning to business as usual”, Padoan said. “The post-crisis economy will have to deal with old and new challenges, while pursuing new, green and inclusive sources of growth.” Interest rates Economics Bank of England Economic growth (GDP) Financial crisis Banking Larry Elliott guardian.co.uk
Continue reading …US president Barack Obama and David Cameron to discuss troops withdrawal from Iraq and Afghanistan Afghanistan and Libya are expected to be high on the agenda as Barack Obama meets David Cameron for talks at Downing Street. After meeting the Royal family and playing table tennis with the prime minister on Monday , the US president is turning his attention to the two countries’ joint interest in security. In a speech at the Palace of Westminster to address both houses of parliament , Obama will point to the withdrawal of American and British troops from Iraq, the expected drawdown from Afghanistan beginning this summer, the killing of Osama bin Laden and the weakening of al-Qaida as signs that the worst might be over for the Atlantic alliance. But among the most pressing issues he will discuss with Cameron is the bombing campaign against the Libyan ruler, Muammar Gaddafi, amid fears that the operation has reached a stalemate. The US took the initial lead in the campaign to protect civilians from the brutal crackdown led by Gaddafi’s forces, under the condition that Nato eventually would take over the operation, with the US providing support. Some British MPs say Britain and France have shouldered an unfair burden in the campaign and are calling on the US to deploy additional planes in an attempt to increase air strikes. The White House says it has no plans to change that arrangement and is confident that Gaddafi is close to falling. After Obama meets Cameron the pair will hold a joint press conference before dropping in on a barbecue hosted by their wives for families of military personnel involved in joint UK-US missions overseas. Obama’s Westminster speech on US foreign policy will be the first time a US president has addressed both houses of parliament there. Much of the speech will pay tribute to the transatlantic alliance and discuss its role in the 21st century. But Ben Rhodes, the US president’s deputy national security adviser for communications, said Obama would express optimism that the worst of the bloodletting was over. “I think he’ll speak to the fact that we’ve obviously come through a very difficult decade, but in some respects we’re turning a corner in so far as we’ve successfully ended our combat mission in Iraq, removed 100,000 troops. The British forces of course have left Iraq. “Our efforts to dismantle, disrupt and defeat al-Qaida have weakened that organisation, of course including the killing of Osama bin Laden recently. We are preparing to begin a transition – or have already begun a transition in Afghanistan to Afghan lead that we’ll continue to undertake … until 2014.” There will be discussion about how to bolster new democracies in northern Africa. Obama and Cameron are to back multi-billion-dollar plans to pour greater international financial and political support into Egypt and Tunisia in a bid to stabilise political reform. The US president has already called on Congress to forgive $1bn in debt owed by Egypt, and to provide loan guarantees for up to $1bn in new borrowing for the nation. While the US president gives his speech, his wife, Michelle, will travel to Oxford University where she will host an open day for pupils from the Elizabeth Garrett Anderson school in north London. She has a close relationship with the school, having first visited in 2009 , when she urged students to “control your own destiny”. Barack Obama David Cameron Michelle Obama Libya Afghanistan Iraq Military US military Haroon Siddique guardian.co.uk
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