‘Power to the workers’ banners erected as Greece debates bailout conditions In a dramatic start to a week dominated by one of the most crucial parliamentary votes in modern Greek history, communist militants stormed the Acropolis on Monday morning unfurling huge “power to the workers” banners from the monument’s ramparts. As tourists ascended the hill to the fifth-century BC site, they were greeted by gigantic protest banners proclaiming: “The peoples have the power and never surrender. Organize – Counter attack.” “We call upon working people, youth, women to join our popular uprising,” the All Workers Militant Front (PAME), an adjunct of the powerful Greek communist party, the KKE, declared in a statement. “We will strengthen our struggle with people from all over the world against capitalist brutality in order for the brutal measures that bankrupt the people not to be applied.” Although described as a symbolic move, the stunt reinforced the level of popular hostility to economic policies now seen as crucial if Greece is to avoid a possibly disastrous default . Upping the ante, unions have declared a 48-hour general strike starting on Tuesday – the first two-day walkout since the collapse of military rule and the return of democracy in 1974 – to coincide with parliament’s debate on the measures. Mass rallies have been scheduled in 65 towns during the two days that Greek politicians will discuss the belt-tightening policies. “It will be two days that have never seen before,” said Stathis Anestis of the General Confederation of Greek Workers, the country’s largest labour force. The debate on the austerity programme, which includes €28bn (£25bn) of fresh spending cuts and higher taxes, begins on Monday with a vote expected on Wednesday. Talks will also take place in Rome on Monday evening between EU officials and European bankers over the vexed question of the role of private creditors in a second rescue package for Greece. European debt crisis European banks Financial crisis Global recession Banking Greece Europe Helena Smith guardian.co.uk
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EU officials and bankers to discuss ways of resolving Greece’s financial crisis including proposal for debt write off European Union officials and bankers from across the region are meeting in Italy to discuss ways of resolving the Greek debt crisis, as the Athens parliament prepares to debate its austerity package before a critical vote later this week. The talks will take place in Rome on Monday evening and will examine whether private creditors could agree to roll over some Greek debt. Top of the agenda will be a proposal from the French banking industry, under which borrowers would effectively write off a third of their debts. The meeting is organised by the Institute of International Finance and comes at the start of a crunch week for Greece, and the wider eurozone. If the Athens parliament opposes the austerity bill, then Greece would probably be denied the €12bn (£10.6bn) slice of financial aid due next month, which could force it to default and trigger calamity across the financial markets. Defeat may also scupper the second bailout package ,which was agreed in principle last week. The vote on the package of spending cuts, tax rises and asset sales is due on Wednesday. It is likely to be close, given prime minister George Papandreou’s shrivelling majority in parliament. A second vote, on an enabling bill to speed up the pace of reform, is expected on Thursday. The measures remain deeply unpopular in Greece, with demonstrators storming the Acropolis on Monday morning. They hung a banner declaring: “People have the power, they never surrender.” Events in Greece continue to dominate the financial markets, where traders are dogged by fears that the debt crisis could flare up across the region again. The spread between the interest rates on ultra-safe German bonds and their Italian equivalent reached a record high on Monday morning, and the spread with Greek bonds also widened. Stock markets were edgy, while the euro fell against the dollar and hit a new low against the Swiss franc. “There are ongoing worries that failure to resolve the situation in Greece has the potential to see fallout on a global scale,” said Cameron Peacock, market analyst at IG Markets. “It’ll be no surprise if we find that the appetite for risk simply isn’t there among traders.” The French bank plan France’s banking sector is one of the biggest creditors to Greece, holding about €9bn of debts according to recent data . This makes it particularly vulnerable to the crisis that has been developing over recent weeks. Under the French banks’ proposal, private creditors whose Greek debts mature would agree to invest half the sum back with Greece, by buying new, long-dated bonds with maturities up to 30 years. An additional 20% of the maturing debt would be reinvested in high-quality bonds through a special fund, structured to guarantee repayment. The plan could appeal to European leaders who are taking a hard line against private creditors, as their maturing debts would not immediately be paid off in full. It could also find favour with banks who are unwilling to simply swap all their bonds for new securities. However, the credit rating agencies could still choose to view the plan as a technical default, triggering a “credit event”. Gary Jenkins, head of fixed income research at Evolution Securities, compared the French proposal to the Brady Plan : used during the Latin America debt crisis of the 1980s. It saw banks agree to swap their loans for bonds that would reduce the debt burdens of countries including Argentina, Brazil, and Mexico. “If widely accepted, this should satisfy Germany’s previous call for substantial private sector involvement,” said Jenkins. European debt crisis European banks Greece Financial crisis Global recession Ratings agencies Banking Europe Europe Graeme Wearden guardian.co.uk
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Defence secretary says reforms recommended by Lord Levene will create more ‘meritocratic armed forces as well as new career opportunities’ Britain’s armed forces will be radically overhauled in plans that will cut the number of senior officers and could also lead to ministerial posts being axed. Liam Fox, the defence secretary, said the aim was to “strike a new balance” inside the department, with better budgetary control and an end to the “micro management” that he claimed had undermined the culture in the department. Downing Street and the Ministry of Defence (MoD) have approved the reforms recommended by Lord Levene, and the proposals will be published on Monday. In a speech, Fox will say Levene’s blueprint sets out “a vision of transformation on a scale not seen in defence for a generation”. The long-awaited overhaul of one of Whitehall’s most complex and dysfunctional ministries will lead to each of the three services thinning ranks at the highest level. As the Guardian revealed last month, the army, navy and air force will each be run by a single chief. Fox told BBC Radio 4′s Today programme that his announcement would outline changes from some of the practices that had “bedevilled” defence in recent decades. “We need to prepare military structures for future roles and challenges, I want to create new career structures and opportunities as well as having better streamlined management because we’ve allowed costs to escalate and projects to run over in the most appalling way in the past and we need to bring that under control.” Fox said he believed there was a “very strong case” for reducing the “star count” – top military staff – to create space for those coming up the ranks. “What we will set out this afternoon I hope will set the direction to create more meritocratic armed forces as well as new career opportunities,” he said. At the moment, the services have two commanders, one in charge of strategy, the second in charge of day-to-day operations. The reforms would see operational control pushed down the chain of command. The three service chiefs will be removed from the defence board, a powerful committee the defence secretary chairs. The overall head of the military, the chief of the defence staff, currently General Sir David Richards, will represent them. The post of deputy chief of the defence staff will be retained initially, but is expected to become redundant when the current holder of the job, General Sir Nicholas Houghton, moves on. A committee chaired by an independent non-executive director, chosen by the defence secretary, will be in charge of appointments to the services’ top ranks. Levene argued that the services were top-heavy – a finding that chimed with Fox’s belief that the number of elite officers should be trimmed to reflect cuts further down the ranks. The department is seeking to make 17,000 service personnel redundant over the next three years. Levene also said the boundaries between the department’s ministerial posts were blurred, and that it may be time to scrap one of the junior positions. Some minor boards set up to oversee individual projects will be scrapped too. “These reforms should lead to major savings,” said a Whitehall source. By scrapping subcommittees set up to oversee procurement projects, the MoD hopes to speed up the process and make individuals responsible for costs. Fox said one of the problems the MoD has had is getting control of the budget from the centre. The overhaul will address this as well as allowing for a better alignment of decision making and accountability and as well as giving a bit more freedom to the armed forces themselves. He said it was a “balanced package”, which he believed military chiefs would feel able to support. Fox will say in his speech: “Lord Levene is clear in his critique. [The MoD is] a department with overly bureaucratic management structures, dominated by committees that led to indecisiveness and a lack of responsibility.” The MoD is expected to axe up to 8,000 civil servants in the next year. The Treasury has given the department the money to start the cuts, but some in Whitehall fear it will be difficult to implement Levene’s plans with so many staff leaving. There has been a gradual erosion of the powers of the individual service chiefs over the years and Levene’s proposals will see another shift of power away from them. However, they are being mollified by plans which would give them more overall control of their budgets and internal appointments. The Levene reforms are regarded as an important first step in the complete overhaul of the way the armed forces are managed. Next month they will be followed by details of how the MoD intends to meet the £1bn overspend in the budget for last year, as well as an assessment of what is really affordable between 2015 and 2020. The government has set out plans for the size and structure of the armed forces by 2020, but has recognised that the changes can only be achieved if defence spending increases significantly after 2015. The chancellor, George Osborne, has yet to commit any new money, but the MoD is negotiating with Treasury officials and the Cabinet Office because it needs to take some long-term procurement decisions now. A three-month study into what might be affordable is due to conclude at the end of this month. Liam Fox Defence policy Military Nick Hopkins Hélène Mulholland guardian.co.uk
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No detail was too small for official scrutiny on the new 186mph train line – even the attendants’ choreographed smiles Four would be too few. Ten would be too many. Five or nine would presumably produce an unaesthetic, wonky effect. So the smiling attendants on the test run of the Beijing to Shanghai high-speed rail link revealed precisely six to eight of their teeth to display their pleasure as the train pulled out of the capital. It had, admitted chief conductor Gao Dan, taken considerable practice; in some cases, with chopsticks jammed between their jaws. Extending 820 miles (1,318km), and spanning seven cities and provinces, China’s landmark line was built in 39 months at a cost of 221bn yuan (£21.4bn). But as those gleaming white teeth attest, no detail of this massive project was too minor to be subject to official scrutiny. The new link not only slashes train times between the country’s political heart and its financial powerhouse, it also proclaims its power and accelerated development. It is no coincidence that the line opens to the public on Friday 1 July – the 90th anniversary of the Chinese Communist party. “This is the pride of China,” said He Huawu, chief engineer at the ministry of railways, minutes before the train pulled out of Beijing South station at 9.01am. It glided into Shanghai’s Hongqiao station at 1.45pm, having briefly touched 190mph; usually it will restrict itself to 186mph. Officials said that 1,500 test trains had clocked up around 2m miles shuttling back and forth since exercises began in mid-May, but this was the first public glimpse of the flagship project. China is building the world’s largest high-speed network, with around 10,500 miles completed or under construction. It has said it plans to spend $30bn (£19bn) this year alone. But the scale of its ambition has been brought into question by concerns about waste, corruption and safety – particularly since the railway minister, Liu Zhijun, was dismissed this spring for “disciplinary violations”. In March, China’s state audit office said nearly $30m of funds for the line were embezzled or otherwise misappropriated during one three-month period of construction last year. The cases are under investigation. But Hu Yadong, vice minister of railways, told a news conference last week: “We will not slow down the pace, and there will be no cut in investments.” The government has cut the top speed of the trains from 217mph to 186mph; a decision variously ascribed to safety concerns, environmental worries or simply a need to cut ticket prices by reducing fuel consumption. Even so, the Beijing-Shanghai link halves the journey time by rail from around 10 hours – at its fastest – to just four hours and 48 minutes. It appears an easy sell for business people, delivering a smooth journey with mobile phone signals (and, soon, onboard Wi-Fi) and none of the hassle of airport security. Airlines are reportedly slashing ticket prices already. Officials say they plan to run 90 trains a day, at 186mph and 155mph. Tickets for the fastest trains cost from 555 yuan (£54) for standard seating. Upgrade to business class, for 1,750 yuan, and you gain fully reclinable seats with individual entertainment systems. In first class, which is pitched between the two, you get Jackie Chan’s The Spy Next Door on shared overhead screens. Meanwhile, through the picture windows, labourers can be seen toiling in the fields. In one spot, three farmers in straw hats were dragging a plough through the rocky soil. Given the uneven nature of development in China, some see the country’s massive investment in high-speed rail as a folly driven largely by the desire for prestige. While this link along the wealthy east coast is expected to make money, others are struggling. Some suggest expanded flights and freight rail capacity would be more sensible ways to connect remote areas. “[The network] will be a liability, not an asset, for China,” Zhao Jian, a professor at Beijing Jiaotong University, told Reuters last week. He cited the example of a Henan-Shaanxi line, designed for 37 million passengers a year, which reported fewer than 2 million in its first six months of operation. Others fear that poorer travellers – such as tens of millions of migrant workers – will struggle as expensive high-speed services replace much slower, but much cheaper, trains. But supporters believe high-speed rail will help drive development in the poorer central and western regions, spreading wealth from the wealthy east and south. No one is more enthusiastic than Xu Yifa, who spent the first six years of his working life shovelling coal – 8,000 tonnes in all, he estimates – into a steam train. “We couldn’t even have dreamed of this. It’s hard to imagine China’s railways could develop this fast,” said Xu, now the deputy secretary of the Zhengzhou railway hub, as the train glided through Hebei province. “It feels so smooth and comfortable. You can’t compare it. [Back then in 1965] it was very shaky.” After almost half a century working on, driving and then overseeing trains, he was thrilled by the changes in China’s railway system – and keen to share its benefits. Beijing’s ambassador to the UK suggested last week that Chinese firms could help build a high-speed line between London, the Midlands and the north, saying the country had “the knowledge, expertise and experience”. “Of course! There’s no argument,” Xu declared when asked whether Britain should buy Chinese. “China should be the first choice.” China Rail transport Tania Branigan guardian.co.uk
Continue reading …You’d probably never think of sound as strategic, but engineers and developers in a number of industries have discovered that people respond positively to … well, fake sounds. But whether it’s a satisfying clunk of closing a car door, or the reassuring whirr of the dollar bill deposit in a…
Continue reading …Normally when someone invents a revolutionary product that goes on to earn $3 billion annually, it’s for financial gain, fame, and success—not necessarily to feed a poor, hungry nation. That’s where Momofuku Ando, the creator of instant ramen, was different: Walking through his war-torn hometown of Osaka in 1945,…
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A UN-backed tribunal in Cambodia is holding the trial of the four most senior surviving members of the Khmer Rouge regime The United Nations-backed trial of the four most senior surviving members of Cambodia’s murderous Khmer Rouge regime began on Monday, three decades after its “year zero” revolution marked one of the darkest chapters of the 20th century. The defendants, all now elderly and infirm, were among the inner circle of the late Pol Pot, the French-educated architect of the Khmer Rouge’s ultra-Maoist Killing Fields revolution. An estimated 1.7 million Cambodians – a quarter of the population – were killed through torture, execution, starvation and exhaustion from 1975-1979. The quartet, “Brother Number Two” Nuon Chea, former President Khieu Samphan, ex-Foreign Minister Ieng Sary and Ieng Thirith, a former Social Affairs Minister, are accused of war crimes and crimes against humanity, among other charges. All are expected to enter not guilty pleas. “Brother Number One” Pol Pot, died in 1998. Except for Khieu Samphan, none have shown willingness to cooperate with the court and there are concerns that Cambodians will be denied the chance to hear first-hand accounts of the motivation and ideology that fuelled an unrelenting killing spree by one of the world’s most enigmatic regimes. The closest any of the former cadres have come to disclosure is seen in an award-winning documentary film yet to be released in Cambodia entitled “Enemies of the People”, in which Nuon Chea, during six years of recorded interviews with a journalist, admitted those seen as threats to the party line were “corrected” at the behest of the regime. The filmmakers have said they would not hand over tapes if asked by the court, but judges say material from the film can be used by prosecutors once in the public domain. The case is a crucial test of whether the multi-million dollar Extraordinary Chambers in the Courts of Cambodia (ECCC), a hybrid international-led tribunal created in 2005, can deliver justice. Ou Virak, President of the Cambodian Center for Human Rights, said the start of the second case was a “cathartic moment” that he hoped would help bring some closure. The crimes “remain ingrained in Cambodia’s collective psyche. I hope that this trial … provides all victims with some sense of justice, however delayed that justice may be”, Ou Virak said in a statement. But justice might continue to elude Cambodia. Cases have moved at a snail’s pace in the ECCC its processes are extremely bureaucratic. The defendants are old and in poor health and some might die before a verdict is delivered by the ECCC, which estimates its spending will reach $150 million by year-end. The court has so far handed down just one sentence, a 35-year jail term, commuted to 19 years, for Kaing Guek Eav, alias Duch, over his role in the deaths of more than 14,000 people at the notorious S-21 torture centre in Phnom Penh. Duch has appealed against the ruling. His sentence was seen by many Cambodians as too lenient and a so far unexplained decision earlier this month by co-investigating judges not to pursue a third case, believed to involve two senior Khmer Rouge military commanders, has prompted resignations by court staff and outrage from rights groups complaining of political interference by Cambodia’s government and inaction by the United Nations. Prime Minister Hun Sen, himself a former Khmer Rogue cadre, has made no secret of his disdain for the court and last year told UN chief Ban Ki-moon that further indictments were “not allowed”. This week’s opening proceedings are expected to be dominated by moves from Ieng Sary’s lawyers to have charges against him dropped on the grounds that he was sentenced to death by a court created by Vietnamese invaders in 1979 and pardoned by Cambodia’s then King Norodom Sihanouk 17 years later. The pardon for Ieng Sary, a reclusive guerilla leader, came as part of a peace deal between warring factions in Cambodia, but prosecutors are expected to argue the pardon was for the death sentence, not the charges he currently faces. Cambodia Pol Pot United Nations guardian.co.uk
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Defence secretary to reveal Lord Levene’s blueprint for tightening highest levels of services and cutting ministerial posts Britain’s armed forces will be radically overhauled in plans that will cut the number of senior officers and could also lead to ministerial posts being axed. Downing Street and the Ministry of Defence (MoD) have approved the reforms recommended by Lord Levene, and the proposals will be published on Monday. In a speech, the defence secretary, Liam Fox, will say Levene’s blueprint sets out “a vision of transformation on a scale not seen in defence for a generation”. The long-awaited overhaul of one of Whitehall’s most complex and dysfunctional ministries will lead to each of the three services thinning ranks at the highest level. As the Guardian revealed last month, the army, navy and air force will each be run by a single chief. At the moment, the services have two commanders, one in charge of strategy, the second in charge of day-to-day operations. The reforms would see operational control pushed down the chain of command. The three service chiefs will be removed from the defence board, a powerful committee the defence secretary chairs. The overall head of the military, the chief of the defence staff, currently General Sir David Richards, will represent them. Fox said on Sky News: “We’ve always wanted to see a tighter defence board. In opposition I made very clear the MoD had to have much better management, much tighter management.” The post of deputy chief of the defence staff will be retained initially, but is expected to become redundant when the current holder of the job, General Sir Nicholas Houghton, moves on. A committee chaired by an independent non-executive director, chosen by the defence secretary, will be in charge of appointments to the services’ top ranks. Levene argued that the services were top-heavy – a finding that chimed with Fox’s belief that the number of elite officers should be trimmed to reflect cuts further down the ranks. The department is seeking to make 17,000 service personnel redundant over the next three years. Levene also said the boundaries between the department’s ministerial posts were blurred, and that it may be time to scrap one of the junior positions. Some minor boards set up to oversee individual projects will be scrapped too. “These reforms should lead to major savings,” said a Whitehall source. By scrapping subcommittees set up to oversee procurement projects, the MoD hopes to speed up the process and make individuals responsible for costs. Fox will say in his speech: “Lord Levene is clear in his critique. [The MoD is] a department with overly bureaucratic management structures, dominated by committees that led to indecisiveness and a lack of responsibility.” The MoD is expected to axe up to 8,000 civil servants in the next year. The Treasury has given the department the money to start the cuts, but some in Whitehall fear it will be difficult to implement Levene’s plans with so many staff leaving. There has been a gradual erosion of the powers of the individual service chiefs over the years and Levene’s proposals will see another shift of power away from them. However, they are being mollified by plans which would give them more overall control of their budgets and internal appointments. The Levene reforms are regarded as an important first step in the complete overhaul of the way the armed forces are managed. Next month they will be followed by details of how the MoD intends to meet the £1bn overspend in the budget for last year, as well as an assessment of what is really affordable between 2015 and 2020. The government has set out plans for the size and structure of the armed forces by 2020, but has recognised that the changes can only be achieved if defence spending increases significantly after 2015. The chancellor, George Osborne, has yet to commit any new money, but the MoD is negotiating with Treasury officials and the Cabinet Office because it needs to take some long-term procurement decisions now. A three-month study into what might be affordable is due to conclude at the end of this month. Military Defence policy Liam Fox Liberal-Conservative coalition Conservatives Nick Hopkins guardian.co.uk
Continue reading …Suspected members of an Islamic sect bombed three beer gardens in northeastern Nigeria, killing 25 people and wounding 12 others today, authorities say. Police blame the attack on a group known locally as Boko Haram, which earlier this month carried out an attack on the nation’s police headquarters. Authorities say…
Continue reading …It’s not much of a shock that Eminem would release a shocking music video—after all, we’ve all seen the one where Dominic Monaghan and Megan Fox beat each other up . In his latest video, for “Space Bound,” a distraught Em is dealing with the revelation that his girlfriend, played…
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