Europe

Nervous Brussels urges Italy to stick to austerity

"The European Commission has urged any future government in Italy to keep on implementing deficit-cutting measures, despite the fact that over half the electorate voted for anti-austerity parties. 'Last Friday the Italians were speaking quite clearly about debt-reduction commitments as well as a series of other commitments. These Italian commitments remain in force and the commission expects compliance,' commission spokesperson Olivier Bailly said. His comments come after elections in Italy put former comedian Beppe Grillo, who ran on an anti-austerity ticket and has called for a referendum on euro membership, in kingmaker position." Continue reading →

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Italy’s anti-austerity ‘rebellion’ promises to spread

"Any doubts that Italians were fed up with tax hikes and economic reform vanished in an election that awarded more than half of the votes to anti-austerity parties. As Italian voters supported the anti-austerity parties, they also punished the centrist, pro-austerity alliance led by Mario Monti, the technocrat prime minister who replaced Mr. Berlusconi at the height of the Italian financial crisis in late 2011. Mr. Monti rolled out a series of tax hikes, including a hated property tax that Mr. Berlusconi vowed to kill, and attempted economic reforms that met with partial success. For that, his alliance got 10 per cent or less of the votes." Continue reading →

Continue ReadingItaly’s anti-austerity ‘rebellion’ promises to spread

Italian Business Taxpayers Feel ‘Persecuted’

"A nationwide poll of 2,500 businesses by Confedercontribuenti, an association of Italian taxpayers, has found that they are being harassed in their dealings with the country’s complex tax system, which is viewed as extremely complex and persecutory. On average, each company receives about 29 annual alerts regarding its obligations tothe system’s various tax authorities and collectors. Above all, it is calculated that it takes each business an average of about 250 hours per year to resolve the issues raised by the total of 13 different institutions responsible for the Italian tax and social security system." Continue reading →

Continue ReadingItalian Business Taxpayers Feel ‘Persecuted’

ECB bailout plan in jeopardy as Italy’s voters reject conditions

"'The result touches us all,' said Spain’s foreign minister, Jose Manuel Garcia-Margallo. 'It is a jump into the void that bodes well for nobody, neither for Italy, nor for the rest of Europe.' Almost 57pc of the Italian vote went to parties that have vowed to tear up the EU austerity script. Together they control a majority of senate seats. The Five Star movement of comedian Beppe Grillo, which won 25pc of the vote, has called for a euro referendum and has a return to the lira as one of its manifesto pledges, while ex-premier Silvio Berlusconi has threatened to pull Italy out of the currency bloc unless the EU switches to a reflation strategy." Continue reading →

Continue ReadingECB bailout plan in jeopardy as Italy’s voters reject conditions

Bank of England’s Tucker Says He’s Open to QE as BOE Stresses Flexibility

"Bank of England Deputy Governor Paul Tucker said he’s open to adding to asset purchases as policy makers stressed the central bank has the flexibility to expand stimulus if needed. Tucker was testifying alongside policy makers David Miles, Charlie Bean and Ian McCafferty at a Parliament hearing in London today on the BOE’s latest quarterly forecasts. The BOE has said it will 'look through' a period of above-target inflation to keep nurturing growth, which Bean said 'made sense' in the current environment. Tucker also raised the prospect of negative interest rates at the hearing." Continue reading →

Continue ReadingBank of England’s Tucker Says He’s Open to QE as BOE Stresses Flexibility

ECB Should Join ‘Currency War’ to Weaken Euro, France’s Montebourg Says

"The European Central Bank should weaken the euro, confronting the new 'currency war' head on to help address economic stagnation in the region, French Industry Minister Arnaud Montebourg said today. Calling for a more activist and 'political' management of the currency shared by 17 European nations, Montebourg said at a press conference in Paris that he wants 'the European Central Bank to do its job.' 'The euro is too strong and doesn’t correspond to economic fundamentals,' he said. The ECB 'should prepare to confront a new currency war in which the weakening of currencies becomes a political tool.'" Continue reading →

Continue ReadingECB Should Join ‘Currency War’ to Weaken Euro, France’s Montebourg Says

Airlines made windfall profits after EU freeze on carbon taxes

"Airlines made up to half a billion euros in windfall profits last year by passing on a carbon surcharge to travellers despite an EU decision to freeze its controversial carbon tax, environmentalists said on Tuesday. Green group Transport and Environment said airlines chalked up extra revenues estimated at 486 million euros ($650 million) even though EU climate commissioner Connie Hedegaard in November decided to 'stop the clock' on an EU carbon tax angering the global aviation industry." Continue reading →

Continue ReadingAirlines made windfall profits after EU freeze on carbon taxes

Belarus jails border guard over ‘teddy bear invasion’

"Belarus has convicted and jailed for two years a border guard for failing to report that a foreign plane full of teddy bears had crossed into national airspace from Lithuania last July, the Belarus Supreme Court said Tuesday. The decision by a military tribunal is the first jailing in connection with the stunt by a group of Swedish activists who flew illegally into Belarussian territory to release hundreds of teddy bears carrying protest signs in support of freedom of speech. A border guard who was on duty on July 2, 2012 received his conviction on January 4 in a closed trial for not reporting the teddy-bear fly-by." Continue reading →

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Georgia rushes to complete executions before lethal drug supply runs out

"Georgia’s difficulties procuring execution drugs is a reflection of the gradual stranglehold that is being put on the US death penalty by authorities and companies around the world refusing to act as accomplices in the death sentence. The European Commission, following unilateral action by the UK, has imposed restrictions on the export of medicines to all US corrections departments. One of the leading manufacturers of pentobarbital, the Danish firm Lundbeck, has introduced tough restrictions on the distribution of the drug to prevent it falling into the hands of US executioners." Continue reading →

Continue ReadingGeorgia rushes to complete executions before lethal drug supply runs out

Locksmiths and firemen refuse to aid evictions in Spain

"Locksmiths and firemen in Spain are rebelling against a wave of evictions in the economic crisis by refusing to help bailiffs open ruined homeowners’ doors to throw them out. A wave of evictions of mortgage-holders ruined by the recession has prompted several suicides and sparked a protest movement that last week brought a motion to parliament for a law to end the procedure. With the locksmiths refusing to take part, some authorities have been asking the fire service to step in and break open the doors of those resisting eviction. [..] When the firefighters arrived they refused to open the door and some of them joined in the protest." Continue reading →

Continue ReadingLocksmiths and firemen refuse to aid evictions in Spain