Bulgarian Police: TV Reporter Probing Fraud Allegations Is Raped and Killed

The body of a popular Bulgarian TV journalist investigating alleged corruption involving politicians and EU funds was found over the weekend, police said.

Prosecutors said the body of 30-year-old Viktoria Marinova was found Saturday in a park in the northern city of Ruse. Her mobile phone, car keys, glasses and some of her clothes were missing.

Police say she was raped before she was killed.

“Her death was caused by blows to the head and suffocation,” Ruse prosecutor Georgy Georgiev said, adding that investigators were able to obtain a lot of DNA evidence.

Interior Minister Mladen Marinov said there have been no signs linking Marinova’s death to her work as a TV investigative journalist.

Another reporter from Marinova’s television station also said no one at the station had been threatened.

But the owner of a website involved in the investigation of the alleged corruption, and whose own journalists were interviewed by Marinova, said his group had gotten credible information that there would be trouble.

“Viktoria’s death, the brutal manner in which she was killed, is an execution. It was meant to serve as an example, something like a warning,” Asen Yordanov told the French News Agency Sunday.

Marinova worked for the Ruse-based television station TVN and hosted a talk show Detector.

The Reporters Without Borders global index of press freedom rated Bulgaria 111 out of 180 countries in 2018 — the lowest of any EU member.

Russian Minority Party Wins Latvian Vote; Populists Surge

An opposition party favored by Latvia’s large ethnic Russian minority has won the Baltic nation’s parliamentary election, but it’s expected to face difficulties forming a ruling coalition after a vote that saw new populist parties surge and government parties falter.

Voters in Latvia, a member of the European Union and NATO, chose Saturday from more than 1,400 candidates and 16 parties to fill the country’s 100-seat parliament.

 

With all the votes counted, results Sunday from Latvia’s electoral committee showed the left-wing Harmony party winning with 19.8 percent support.

 

The country’s Russian minority is a major political force as it accounts about 25 percent of Latvia’s nearly 2 million people, a legacy of nearly 50 years of Soviet occupation that ended in 1991.

 

Harmony is led by Nils Usakovs, the mayor of Riga, the capital, since 2009. But it has been shunned by other Latvian parties and kept out of the Cabinet over suspicions that it’s too cozy with Moscow, despite the party’s pro-EU stance.

 

Sunday’s result would give the party 23 seats at the Saeima legislature, one less it has now.

 

Voters, however, dealt a severe blow to Latvia’s current three-party ruling coalition led by Prime Minister Maris Kucinskis.

 

His centrist Union of Greens and Farmers came in sixth place with only 9.9 percent support, while the government’s junior partners — the conservative National Alliance and the liberal New Unity — were fifth and seventh with 11 percent and 6.7 percent of the vote.

 

Two new smaller parties running on a strong anti-establishment, anti-corruption agenda moved into the forefront of Latvia’s complex political landscape.

 

The populist KPV party — abbreviation for “Who Owns the State?” — led by the colorful actor-turned-lawmaker Artuss Kaimins and the anti-corruption New Conservative Party took second and third place, with 14.3 percent and 13.6 percent of the votes respectively.

 

The liberal For Development/For! party also made a good run and got 12 percent support.

 

A total of seven parties exceeded the five percent threshold for getting seats in parliament.

 

Voter turnout was 54.6 percent according to preliminary data, the lowest since Latvia regained independence in 1991, the Baltic News Service reported.

 

The result means difficult weeks ahead trying to form a broad government coalition that has at least 51 seats in parliament. Only KPV has so far indicated it is open for talks with Harmony, the possible kingmaker.

 

But Harmony’s pro-Russian stance is still an issue.

 

Relations between Russia and Latvia have been frayed by Russia’s 2014 annexation of the Crimea Peninsula from Ukraine and its support for separatists in eastern Ukraine.

 

Russian President Vladimir Putin has taken a strong interest in defending the rights of ethnic Russians in the Baltics, and the Baltic nations of Estonia, Latvia and Lithuania have been wary of increased Russian military presence in the region.

 

Earlier this year Harmony cut its cooperation deal with Putin’s United Russia party — a pact that was a major source of irritation to other Latvian parties.

 

 

UK PM May Seeks Support As Others Draw Brexit Battle Lines

Prime Minister Theresa May appealed to wavering British voters on Sunday ahead of a defining few months in which she hopes to secure a Brexit deal and face down opponents who say her EU exit plan is too hard, too soft, or just plain wrong.

May, tasked with delivering Britain’s exit from the European Union after a 2016 referendum which continues to divide the country, must find a way through deadlocked talks in Brussels and then convince a skeptical parliament to back the outcome.

On Sunday she launched an unusual plea for the backing of center-ground voters who had previously backed the Labour Party but felt alienated by a shift to the left under current Labour leader Jeremy Corbyn.

“I want voters who may previously have thought of themselves as Labour supporters to look at my government afresh. They will find a decent, moderate and patriotic program that is worthy of their support,” May wrote in an article for the Observer newspaper.

Hot off the heels of a speech at her annual conference which polls showed was well received, May sought to reinforce her message that the end of over eight years of austerity was in sight, and that she was capable of delivering reform beyond Brexit.

Labour called her message on austerity a con and said she was making “desperate pleas in an attempt to revive her failing administration.”

It looks increasingly likely May will have to rely on the support of so-called ‘moderate’ Labour lawmakers to win parliamentary approval for whatever Brexit deal she is able to strike with the EU.

On Sunday, Scottish National Party leader Nicola Sturgeon said her 35 lawmakers would likely vote against the deal, and could instead support a second public vote on the terms of Britain’s EU exit.

Labour’s left-wing leadership have promised to vote against May’s deal unless it meets their tests – which it currently is unlikely to do.

The 10 votes of the Northern Irish Democratic Unionist Party which May relies on to prop up her minority government are also in doubt, depending on what kind of compromise May has to strike in Brussels to resolve issues over the Irish border.

Critics within May’s own party, among them former foreign minister Boris Johnson, want her to ditch the current Brexit plan. However the Sunday Telegraph reported that a sizable euroskeptic faction could be willing to drop some of their objections to secure a deal.

If May fails to win a vote in parliament, Britain faces an unmanaged exit from the bloc, which businesses and economists fear could badly damage the economy.

The outgoing chief executive of insurance market Lloyd’s of London, Inga Beale, said her firm is accelerating Brexit contingency plans to transfer contracts to a Brussels subsidiary as she feel Britain is getting closer to leaving the EU without a deal.

But Irish foreign minister Simon Coveney said the possible negative consequences for Britain, Ireland and other EU countries meant he thought the chances of securing a deal with the EU were “good.”

Fed-Up Latvians Reject Ruling Coalition

Dissatisfied Latvians rejected the right-of-center ruling coalition in Saturday’s parliamentary election, but suspicion of the left-leaning pro-Russia party makes it likely the next government will be another formation of ethnic Latvian parties to the right.

The result means a confirmation of the European Union and NATO member’s role as a bulwark against Russia in the increasingly hostile relationship between the West and President Vladimir Putin.

Latvians, fed up with corruption and weak democracy in the Baltic country of 2 million, punished the ruling three-party coalition, which lost almost half of its votes, mostly to two newcomers.

Anti-corruption

The populist KPV LV and anti-corruption New Conservatives won 14.1 and 13.6 percent respectively to become the second- and third-biggest parties.

“Our voters want a change from the old post-Soviet politics, which has been very powerful up to now,” said Janis Bordans, leader of the New Conservatives. “They want to have a stable Latvia, but a one which doesn’t stagnate.”

The New Conservatives, whose leadership features several former officers from the country’s anti-corruption agency, want to beef up law enforcement and get rid of a number of current officials who they say are corrupt.

Bordans said he would like to be the new prime minister.

“If we count out Harmony then it’s logical that we take responsibility. We have to be ready to do it and it is very realistic,” he said.

Ethnic divide

The pro-Russia party Harmony, which is supported by ethnic Russians who make up a quarter of the population, took 19.9 percent of the vote but will find it almost impossible to be part of any government.

The ethnic divide is strong in Latvian politics, and other parties have always shut Harmony out of government. It has tried to rebrand itself as a Western-style social democratic party but severed official ties to Putin’s United Russia party only last year.

“I don’t think this is a norm-breaking election. It carries on the tradition we have seen in Latvia that a quarter of the seats go to the Russian-speaking party,” said Daunis Auers, professor of comparative politics at the University of Latvia, adding that other parties would have no problem shutting out Harmony.

“Now they have no reason to form a government with Harmony. They can form a coalition among themselves,” he told Reuters.

Concerns about Russia

Before the election, some Latvians were concerned that a strong result for Harmony and the populist KPV could lead to their forming a government and bringing Latvia’s foreign policy closer to Putin’s Russia.

The result will lead to a more fragmented parliament of seven parties, of which six won between 10 and 20 percent support each. The forming of a government coalition could take months.

Harmony will get 24 seats and remain the biggest bloc. It is followed by the New Conservative Party with 16 seats, KPV LV with 15 seats, the National Alliance with 13 seats, Development/For with 13 seats, the Greens and Farmers Union with 11 seats and New Unity with eight seats.

Czech PM’s Party Wins Municipal Elections

The Czech prime minister’s ANO emerged the strongest party in nationwide municipal elections Saturday, winning in all regional capitals except two, including Prague, in the first popular test for the minority government formed in July.

The municipal votes are held four times a year, and this one may carry more weight as local budgets have helped to keep the overall Czech fiscal balance in surplus in the past two years.

With 60 percent of the votes counted, the ANO of Andrej Babis came in third with 15.9 percent in Prague, where it won four years ago.

The capital’s budget is worth 70 billion crowns ($3.13 billion) or 1.4 percent of the Czech gross domestic product in 2018, surpassing the country’s 58 billion-crown defense spending.

ANO’s coalition partner in the minority government, the Czech Social Democratic Party (CSSD), looked on course to have no member on the Prague city assembly for the first time ever as the oldest Czech party fared poorly across the country.

Babis, who called his party’s overall numbers a success, said after the vote that the CSSD result would not affect the two parties’ cooperation in government.

Czechs were also picking one-third of the upper chamber of parliament, the Senate. Most of the 27 seats contested will be decided in the second round, which takes place Oct. 12-13.

The CSSD will have just five candidates in the second round, not enough to retain the 12 seats it was defending in the vote, making the party likely to lose the post of the Senate speaker.

Turkish Sources: Police Think Journalist Was Killed at Consulate

Turkish authorities believe that prominent Saudi journalist Jamal Khashoggi, who disappeared four days ago after entering Saudi Arabia’s consulate in Istanbul, was killed inside the consulate, two Turkish sources said 

Saturday.

“The initial assessment of the Turkish police is that Mr. Khashoggi has been killed at the consulate of Saudi Arabia in Istanbul. We believe that the murder was premeditated and the body was subsequently moved out of the consulate,” one Turkish official told Reuters.

The sources did not say how they believed the killing was carried out.

Saudi Arabia’s consul-general told Reuters on Saturday his country was helping search for Khashoggi, and dismissed talk of his possible abduction.

Khashoggi, who has lived in self-imposed exile in Washington for the past year, fearing retribution for his critical views on Saudi policies, entered the consulate on Tuesday to secure documentation for his forthcoming marriage, according to his fiancee, who waited outside. He has not been heard from  since.

Since then, Turkish and Saudi officials have offered conflicting accounts of his disappearance, with Ankara saying there was no evidence that he had left the diplomatic mission and Riyadh saying he exited the premises the same day.

Earlier on Saturday, Turkish officials said prosecutors had begun investigating Khashoggi’s disappearance, and a spokesman for President Recep Tayyip Erdogan’s AK Party said authorities would uncover his whereabouts.

Pope OKs Study of Vatican Archives Into McCarrick Scandal

Pope Francis said Saturday that silence on sexual abuse cases in the Catholic Church could “no longer be tolerated,” and he ordered a “thorough study” of all documents in Vatican offices that concern former U.S. Cardinal Theodore McCarrick, who resigned in July.

Francis declared in a statement that the church had to “tackle the great scourge of abuse within and beyond” the institution. He said the church had a duty “to prevent such crimes from being committed in the future to the harm of the most innocent and most vulnerable in society.”

The pope, who has refused so far to comment on accusations he was aware of misdeeds and abuse committed by former American Cardinal Theodore McCarrick long before he accepted his resignation in July, now has called for an investigation of the paper trail on his case.

Francis ordered McCarrick, 88, the first cardinal in living memory to resign, to a life of prayer and penance.

The scandal reached new heights in August when Italian Archbishop Carlo Maria Vigano, a former Vatican ambassador to the U.S., wrote a letter in which he called on the pope to resign because he had known of McCarrick’s sexual misconduct with seminarians for years without doing anything about it.

Vigano also accused other Vatican and American church leaders of being aware and covering up for the powerful cardinal.

The Vatican statement said Francis was “aware of and concerned by the confusion that these accusations are causing in the conscience of the faithful.”

Earlier this week and at this time of crisis for the church, because of the sexual abuse scandals, Francis opened a synod of bishops focused on youth, which will run until Oct. 28. More than 250 bishops from all over the world are attending the meeting, as well as 40 young people.

In a speech at the first working session, the pontiff said, “Brothers and sisters, may the synod awaken our hearts! The present moment, and this applies also to the church, appears to be laden with struggles, problems, burdens.”

During a morning Mass in St. Peter’s Square for the opening of the synod, the pope urged the bishops to dream of a future free of the mistakes and sins of the past.

American church leaders have been calling for an investigation into how McCarrick managed to rise in the church’s hierarchy despite his misconduct. Saturday’s statement appeared to be an initial response to the calls.

The statement said Francis “has decided that information gathered during the preliminary investigation be combined with a further thorough study of the entire documentation present in the Archives of the Dicasteries and Offices of the Holy See … to ascertain all the relevant facts, to place them in their historical context and to evaluate them objectively.”

‘Miracle’ Woman Says El Salvador’s Oscar Romero a Saint

A Salvadoran woman whose unexpected recovery from a life-threatening condition was deemed a miracle, paving the way for the upcoming canonization of the late Roman Catholic Archbishop Oscar Romero, said Friday she’s convinced he is a saint.

Speaking days before a planned pilgrimage to the Vatican along with her husband and thousands of others, Cecilia Maribel Flores also expressed hopes of meeting Pope Francis, who earlier this year approved the miracle and decided to elevate the martyred cleric to sainthood.

“We know that Romero is a saint, a man of God, who as a pastor defended his flock, defended the poor, the most needy, the victims,” Flores said during a visit to the hospital chapel where 38 years ago Romero was shot to death while celebrating Mass.

“What God has given me, I must share,” she added.

​Beloved archbishop

Romero, already known to many as “Saint Romero of the Americas,” was beloved among the working class and poor for defending them against repression by the army. He was equally loathed by conservative sectors who saw him as aligned with leftist causes as the country descended into a 1980-1992 civil war.

Crucial to Romero’s canonization, scheduled for Oct. 14, was Francis’ approval of a miracle attributed to his intercession in Flores’ case.

“If you believe in God or if you believe in anything, ask Him for your wife to be saved with a miracle” — that’s what a doctor told Alejandro Rivas in September 2015 after Flores, his wife, underwent an emergency cesarean section for their third child and was diagnosed with an infection that left her in a coma.

Suffering from internal hemorrhaging and with her kidneys on the verge of collapse, she was not expected to survive.

“They had told me that she was dying and I had to figure out what to do,” Rivas said Friday, “what was going to happen with her and with my children.”

​Prayers to Romero

Arriving back home he remembered his late grandmother had tried to instill in him her devotion to Romero, although it had never quite resonated for him. He asked his grandmother for help.

Later he picked up her Bible and inside found a card with Romero’s image. Kneeling, Rivas prayed to Romero for intervention.

He slept, woke up in the morning and returned to the hospital, where a nurse had stunning news: Flores had begun to improve around 2 or 2:30 a.m., the same time he had made his prayer.

“It left me frozen. I didn’t understand what was going on,” Rivas said. “Now I do understand, that it is an incredible miracle.”

Flores made a full recovery.

Beatified in 2015

Romero was previously beatified, a necessary step before canonization, in May 2015 in an emotional ceremony in the Salvadoran capital, San Salvador.

The day before his assassination, Romero sent a blunt message to the country’s military in his Sunday homily: “In the name of God and this suffering people, I implore you, I order you, in the name of God, to cease the repression.”

The gunman who killed him was contracted by right-wing death squads. A U.N. truth commission determined that one intellectual author of the assassination was Maj. Roberto d’Aubuisson, a founder of the conservative Arena party that governed the country from 1989 to 2009.

D’Aubuisson died in 1992. Neither he nor anyone else who may have ordered the killing was ever punished.

A 1993 amnesty decree prevented prosecution for civil war-era crimes for over two decades until it was declared unconstitutional in 2016.

Final Tweaks in North American Trade Deal Keep Lid on E-commerce

Last-minute changes to a new North American trade deal sank U.S. hopes of making Canada and Mexico allow higher-value shipments to the countries by online retailers, such as Amazon.com, a top Mexican official said on Friday.

The revised pact was set to double the value of goods that could be imported without customs duties or taxes from the United States through shipping companies to Mexico.

But Canada’s adoption of a more restrictive threshold during its efforts last month to salvage a trilateral deal prompted Mexican negotiators to follow Canada’s lead, Economy Minister Ildefonso Guajardo said on Friday.

The final version of the trade agreement will insulate retailers in both countries from facing greater competition from e-commerce companies like Amazon.com Inc and eBay Inc.

“It was the solution liked much more by Mexican businesses,” Guajardo told local television.

The change was came so last-minute that it was not written into the agreement published last weekend.

The new deal, called the United States-Mexico-Canada Agreement (USMCA), was meant by U.S. President Donald Trump to create more jobs in the United States. Trump had been highly critical of the prior NAFTA agreement since before he ran for president.

U.S. negotiators originally pushed Mexico and Canada to raise import limits to the U.S. level of $800 from current thresholds of $50 and C$20, respectively.

Traditional retailers in Mexico opposed such a big hike, fearing online companies would sell cheap imports from Asia through the United States. Even so, Mexico initially agreed in August to raise the threshold on customs duties and taxes to $100 in its bilateral deal with the United States.

Guajardo said that Canada, after Mexico had finished negotiations, set its sales tax exemption at just C$40, about $30, and put a ceiling of C$150, about $117, on custom duties exemptions.

The Retail Council of Canada said the deal will protect retailers against a “massive change in the competitive landscape.”

Mexico decided to follow suit, Guajardo said, favoring local clothing, footwear and textile industries, as well as the finance ministry that collects duties and taxes.

Mexican negotiators lowered the sales tax exemption back to the $50 level, while raising the customs duties limit to $117, matching Canada, Guajardo said.

“Mexico offered a deal where it really didn’t concede anything,” said Adrian Correa, a senior lawyer at FedEx Corp.

Mike Dabbs, eBay’s government relations director for the Americas, said separate tax and custom duty thresholds could create confusion.

“That does not help the experience for small businesses and consumers,” he said.

Yazidi Community Reacts to Nadia Murad’s Nobel Prize  

The Yazidi community in Iraq and around the world expressed joy and hope after the Norwegian Nobel Committee awarded its 2018 Peace Prize to Nadia Murad, a Yazidi activist and survivor of sexual slavery by the Islamic State (IS) in Iraq.

Murad will be sharing the prize with  Dr. Denis Mukwege, a Congolese gynecologist who treated thousands of women victims of rape and sexual violence.

The Nobel Peace Committee praised Murad’s courage because she did not accept the social codes that require women to remain silent and shamed after abuse.

“She has shown uncommon courage in recounting her own sufferings and speaking up on behalf of other victims,” the Norway-based Nobel Peace Prize Committee said.

Members of the Yazidi community told VOA their voices are now being heard and their plea for justice after the Sinjar massacre is being acknowledged by the world. 

Nagham Hasan, an Iraqi Yazidi activist and a gynecologist who offered treatment and counseling for many Yazidi women in refugee camps in Iraq including Nadia Murad, told VOA that the recognition of Murad is not just the recognition of the plight of Yazidi women, but also everyone else in Iraq who suffered at hands of extremists.

“When Nadia escaped her captivity and arrived to the camp in Sinjar she was traumatized and afraid, but now she blossomed into this strong woman and became the voice of all men and women victims of sexual violence,” Hasan said.

Hasan’s work was recognized in 2016 when she was awarded the U.S. State Department’s International Women of Courage Award for “promoting gender equality, combating gender-based violence, and providing psychological support for survivors of violence.”

Women struggle

Mirza Dinay, a Yazidi physician who helped hundreds of Yazidi girls seek asylum in Germany, told VOA that he is thrilled that Murad got this prize, which is a symbol of women’s struggle against sexual violence worldwide. 

“This is a win for Iraqis, Kurds and the Yazidi community and I hope this will encourage the Iraqi government to provide more support to the girls and women survivors of sexual violence,” Dinay said. 

Dawood Saleh, a Yazidi man from Sinjar who has resettled in the U.S., told VOA that Murad’s persistence in making the world listen to Yazidis’ plight has paid off.

“As a Yazidi survivor from IS genocide I feel happy that Nadia received this award. It means to me that Yazidis have value in the world,” Saleh said.

Murad’s reaction

According to United Nations, at least 10,000 Yazidis were either killed or abducted during the IS attack on Sinjar in 2014. The attack sparked international outcry and condemnation.  

Murad was one of those kidnapped by IS in Sinjar mountain in northwestern Iraq. She was sold several times as a sex slave to different IS members before she managed to escape after 3 months in captivity.

In reaction to Friday’s announcement, Murad told Nobel Committee that she did not think that she had the strength to do the work she has been doing. 

She said she derived her strength from thinking about what happened to her community and from the loss of many of her family members including her mother. 

“This prize will make the voices of women who suffered from sexual violence in conflict heard, especially the women in minorities like my community the Yazidis. It tells us that our voices will be heard,” Murad told the Norwegian Nobel Committee.

Murad has been a strong advocate for justice for all Yazidis who were kidnapped and abused by IS and continues to raise her voice against sexual violence.

“Whatever has happened to Yazidis, from August 3rd (2014) till now, they should get their justice. An international tribunal should be formed as soon as possible and Yazidis and other minorities who cannot protect themselves should be protected,” Murad told VOA in 2016 during an exclusive interview. 

Yazidi rights groups estimate about 3,000 women and children remain missing, while thousands live under dire conditions in refugee camps in Iraq.

Erdogan Toughens Stance as Cyprus Faces Permanent Partition

Turkish President Recep Tayyip Erdogan is stepping up his rhetoric over Cyprus in a move seen by analysts as taking on a more assertive approach that could result in a permanent partition of the divided Mediterranean island.

Addressing parliament Tuesday, Erdogan issued a stark warning. “No step can be taken in Cyprus or in the Aegean Sea at the expense of Turkey. Those who do disregard Turkey would put their own existence entirely at risk,” Erdogan said to his cheering deputies in the ruling AK Party.

Cyprus is divided between Greek and Turkish Cypriots since a Turkish military invasion in 1974 in response to an Athens-inspired coup. Ankara only recognizes the Turkish Cypriot government.

Tensions over the island are being stirred by the discovery of large offshore natural gas reserves. The find has sparked an exploration rush by international companies. Ankara maintains that both administrations on the island should control the energy exploration. The Greek Cypriots reject such calls, saying it is the only internationally recognized government on the island.

Erdogan has dispatched warships to back Turkish Cypriot claims. Analysts suggest the deployment is likely to be only saber-rattling.

“There is the new deal with France where it will position its warships in Cyprus in Larnaca [Greek Cypriot port],” former senior Turkish diplomat Aydin Selcen said. “According to some other reports, there will be U.S. warships escorting the Exxon [an American energy company] exploration, so Turkey will not be able singlehandedly to stop new exploration.”

EU membership

Ankara’s robust stance over Cyprus is seen by some observers as a sign of a broader shift in policy. “Erdogan has realized the classic Turkish policy to show muscle to show strength,” said international relations professor Huseyin Bagci of Ankara’s Middle East Technical University. “I don’t expect any solution in Cyprus in political terms.”

The allure of Turkey joining the European Union has been a powerful impetus for Ankara backing reunification efforts of the island. With the Greek Cypriot side already an EU member and holding a veto over Turkey’s membership bid, Brussels says the island has to be reunified if Ankara’s bid is to succeed.

Ankara’s EU dream is now widely seen as over, with the economy in crisis and growing human rights concerns.

“With Turkey and the EU, there is no talk about EU membership; there are no talks about even a new customs union,” Selcen said. “Erdogan insists now that Turkey should have this businesslike transactional relationship with the EU. ”

The collapse in Turkey’s EU bid is seen as giving Erdogan a freer hand over Cyprus. “With Turkey not becoming a full member in the foreseeable future, why should Erdogan make any concessions on Cyprus to the Greek side?” asked international relations professor Bagci.

“In Turkish domestic politics, Tayyip Erdogan was very heavily criticized for making concessions to the Greek side,” Bagci added. “So he is now not going to make any more concessions.”

Previous reunification efforts

When coming to power as prime minister in 2003, Erdogan invested heavily in seeking a solution to reuniting the divided island. Under intense pressure by Erdogan, the then-Turkish Cypriot president, Rauf Denktas, reluctantly agreed to a U.N.-backed plan to reunite Cyprus. In 2004 simultaneous referendums, the U.N. plan was overwhelmingly backed by Turkish Cypriots but rejected by Greek Cypriots.

Subsequent U.N. efforts to reunite Cyprus have ended in deadlock, the most recent being last year. U.N. Security-General Antonio Guterres is to decide this month what to do to reunite the island.

Analysts say reunification efforts are likely to be further complicated by Erdogan’s announcement last month to increase the Turkish military presence on the island. Turkey’s military presence, estimated at around 30,000 strong, is a significant obstacle to reunification efforts. Nicosia is calling for a total Turkish withdrawal from the island.

“Not to reduce the military presence but to increase it, is showing muscles. Turkey is going back to the policy of the 1990s,” Bagci said. “That is a policy of showing military strength, and not to be open for any solution on the island.

“The Greeks have to realize there is only one solution, the recognition of the north [of the island] as an independent Turkish Cypriot state,” Bagci added.

Some observers suggest Erdogan’s shift on Cyprus is motivated by his courting of nationalist voters ahead of next year’s key local elections.

“The new muscular approach toward Cyprus could be to do with domestic politics rather than foreign policy,” said Selcen. “Because we are going toward the local elections, there is this delicate balance between AKP and nationalists, who call for a strong stance against Greek Cypriots.”

Turkish local elections are due to be held in March 2019; few observers expect any softening of Erdogan’s stance on Cyprus ahead of the crucial polls, declared a priority by the Turkish president. Analysts point out that even after the elections, there remains little incentive for Ankara to back reunification efforts given its EU bid is all but dead, at least for the foreseeable future.

US Job Growth Cools; Unemployment Rate Falls to 3.7 Percent

U.S. job growth slowed sharply in September likely as Hurricane Florence depressed restaurant and retail payrolls, but the unemployment rate fell to near a 49-year low of 3.7 percent, pointing to a further tightening in labor market conditions.

The Labor Department’s closely watched monthly employment report on Friday also showed a steady rise in wages, suggesting moderate inflation pressures, which could ease concerns about the economy overheating and keep the Federal Reserve on a path of gradual interest rate increases.

Nonfarm payrolls increased by 134,000 jobs last month, the fewest in a year, as the retail and leisure and hospitality sectors shed employment. Data for July and August were revised to show 87,000 more jobs added than previously reported.

The economy needs to create roughly 120,000 jobs per month to keep up with growth in the working-age population.

“The weaker gain in payrolls in September may partly reflect some hit from Hurricane Florence,” said Michael Pearce, senior U.S. economist at Capital Economics in New York. “There is little in this report to stop the Fed continuing to raise interest rates gradually.”

Economists polled by Reuters had forecast payrolls increasing by 185,000 jobs in September and the unemployment rate falling one-tenth of a percentage point to 3.8 percent.

Fed Chairman Jerome Powell said on Tuesday that the economy’s outlook was “remarkably positive” and he believed it was on the cusp of a “historically rare” era of ultra-low unemployment and tame inflation.

The U.S. central bank raised rates last week for the third time this year and removed the reference in its post-meeting statement to monetary policy remaining “accommodative.”

The Labor Department said it was possible that Hurricane Florence, which lashed South and North Carolina in mid-September, could have affected employment in some industries. It said it was impossible to quantify the net effect on employment.

Payrolls are calculated from a survey of employers, which treats any worker who was not paid for any part of the pay period that includes the 12th of the month as unemployed. The average workweek was unchanged at 34.5 hours in September. The smaller survey of households from which the jobless rate is derived regards persons as employed regardless of whether they missed work during the reference week and were unpaid as result. It showed 299,000 people reported staying at home in September because of bad weather. About 1.5 million employees worked part-time because of the weather last month.

U.S. stock index futures briefly turned positive after the data before reversing course. The dollar was trading lower against a basket of currencies while U.S. Treasury yields were higher.

Diminishing slack

The drop of two-tenths of a percentage point in the unemployment rate from 3.9 percent in August pushed it to levels last seen in December 1969 and matched the Fed’s forecast of 3.7 percent by the end of this year.

Average hourly earnings increased 0.3 percent in September after a similar rise in August.

With September’s increase below the 0.5 percent gain notched during the same period last year, the annual rise in wages fell to 2.8 percent from 2.9 percent in August, which was the biggest advance in more than nine years.

Wage growth remains sufficient to keep inflation around the Fed’s 2 percent target. As more slack is squeezed out of the labor market, economists expect annual wage growth to hit 3 percent.

Last month, employment in the leisure and hospitality sector fell by 17,000 jobs, the first drop since September 2017. Retail payrolls dropped by 20,000 jobs in September. Manufacturing payrolls increased by 18,000 in September after rising by 5,000 in August.

Construction companies hired 23,000 more workers last month after increasing payrolls by 26,000 jobs in August. Professional and business services employment increased by 54,000 jobs last month and government payrolls rose 13,000.

While surveys have shown manufacturers growing more concerned about an escalating trade war between the United States and China, it does not appear to have affected hiring. In fact, the Fed’s latest survey of national business conditions reflected concerns about labor shortages that are extending into non-skilled occupations as much as about tariffs.

Washington last month slapped tariffs on $200 billion worth of Chinese goods, with Beijing retaliating with duties on $60 billion worth of U.S. products. The United States and China had already imposed tariffs on $50 billion worth of each other’s goods. The trilateral trade agreement between the United States, Canada and Mexico was salvaged in an 11th-hour deal on Sunday.

Despite the Trump administration’s protectionist trade policy, the trade deficit continues to deteriorate. The trade gap increased 6.4 percent to a six-month high of $53.2 billion in August, the Commerce Department reported on Friday. The politically sensitive goods trade deficit with China surged 4.7 percent to a record high of $38.6 billion.

 

Congolese Doctor, Yazidi Human Right Activist Share Nobel Peace Prize

The 2018 Nobel Peace Prize has been awarded to Denis Mukwege, a gynecologist treating victims of sexual violence in the Democratic Republic of Congo, and Nadia Murad, a Yazidi human rights activist and survivor of sexual slavery by Islamic State in Iraq.

The Norwegian Nobel Committee said in a statement that the award recognizes “their efforts to end the use of sexual violence as a weapon of war and armed conflict.”

“Mukwege is the foremost, most unifying symbol, both nationally and internationally, of the struggle to end sexual violence in war and armed conflicts,” the statement said. “His basic principle is that justice is everyone’s business.”

Murad, herself a victim of war crimes, “refused to accept the social codes that require women to remain silent and ashamed of the abuses to which they have been subjected,” the statement said. “She has shown uncommon courage in recounting her own sufferings and speaking up on behalf of other victims.”

The Norwegian Nobel Committee received nominations for 216 individuals and 115 organizations. Only a few dozen of them are known, the committee keeps the list of nominations secret for 50 years, although some candidates are revealed by their nominators.

Among those put forward this year are the Syrian civilian aid group White Helmets, Russia’s Novaya Gazeta newspaper, Edward Snowden and the U.N. High Commissioner for Refugees.

Last year’s winner was the International Campaign to Abolish Nuclear Weapons.

The Nobel Prize for Physiology or Medicine, Physics and Chemistry were awarded earlier in the week.

The literature prize was not given this year because of a sexual misconduct scandal at the body that decides the award.

The Nobel Memorial Prize for economic sciences will be awarded Oct. 8.

​The prize will be presented in Oslo on Dec. 10, the anniversary of the death of Swedish industrialist Alfred Nobel, who founded the awards in his 1895 will. It comes with an award of $1.1 million.

The Associated Press contributed to this report.

Turkey Summons Saudi Ambassador About Missing Journalist

A Saudi Arabian journalist has not been seen since he entered the Saudi consulate in Istanbul earlier this week.

Jamal Khashoggi, a Saudi national and a contributor to The Washington Post, has lived in self-imposed exile in the United States since last year when Saudi authorities began to crack down on dissident voices. The journalist has been critical of Saudi Crown Prince Muhammad bin Salman.

Khashoggi went to the consulate Tuesday to obtain documents for his wedding.

Reported missing

His fiancee waited from him outside the consulate, but Khashoggi never came out of the building, she said.

She reported him missing, and Turkey summoned the Saudi ambassador.

Media reports say the Saudi ambassador met Wednesday with Turkey’s deputy foreign minister.

After the meeting, Saudi Arabia denied detaining Khashoggi.

Turkey, however, claimed to have information that Khashoggi was being held at the consulate.

“If Saudi authorities surreptitiously detained Khashoggi it would be yet another escalation of Crown Prince Muhammad bin Salman’s reign of repression against peaceful dissidents and critics,” said Sarah Leah Whiteson, Human Rights Watch’s Middle East director. “The burden of proof is on Saudi Arabia to produce evidence for its claim that Khashoggi left the consulate alone, and that Saudi agents have not detained him.”

‘A missing voice’

On Friday, The Washington Post printed a blank column with the headline “A Missing Voice” in solidarity with Khashoggi.

The journalist’s fiancee told the newspaper that Khashoggi “had been concerned about going to the consulate.” She said, “How comfortable can one be if he is not liked by his country?”

Sherif Mansour, the Committee to Protect Journalists’ Middle East and North Africa program coordinator, said “Given the Saudi authorities’ pattern of quietly detaining critical journalists, Khashoggi’s failure to emerge from the Saudi consulate on the day he entered is a cause for alarm.”

CPJ said in a statement it has recently documented a steadily increasing number of bloggers and journalists detained in unknown locations without charges since the start of what Saudi authorities term an anti-corruption campaign in September 2017.

Allies Warn Russia Against Violation of International Laws

Western nations are warning Russia to stop aggressive behavior, including a violation of an arms control treaty, widespread cyberattacks and attempts to kill citizens in other countries. At a NATO meeting in Belgium Thursday, U.S. Secretary of Defense James Mattis said Russia is violating the Intermediate-Range Nuclear Forces Treaty. The Netherlands said it prevented a Russian cyberattack on an organization investigating chemical weapons use. VOA’s Zlatica Hoke reports on coordinated response.

UN: Populist Politics Eroding International Protection for Refugees

The U.N. refugee agency warns populist politics and fear-mongering about immigration are eroding international protection for refugees fleeing conflict and persecution.  The UNHCR protection chief spoke about growing protection concerns at the agency’s annual refugee conference. 

Conflict, persecution and violence have displaced a record 68.5 million people around the world.  Most are internally displaced, while 25 million are refugees.  These are people who have crossed international borders and are entitled to international protection under the 1951 Refugee Convention.

But U.N. Assistant High Commissioner for Protection Volker Turk says this right is slipping away.  He says some governments are taking political and legal measures to narrow the concept of who is a refugee.  He says being able to flee and be recognized as a refugee can be a matter of life and death.  

Unfortunately, he notes the issue of security is too often used to adopt restrictive approaches to deny refugees protection.

“Of course, there is no doubt governments need and must ensure the security of their citizens, but this is entirely complementary with providing refuge to people who flee persecution,” said Turk.

Turk says refugees are the victims, not the perpetrators, of violence and terror.  He says they often have rejected extremism and been targeted, forcing them to flee for their lives.  He says it is unjust to deny security to people who need it most.

“I think both in the global North and the global South, I have to say, it is our observation, that the dehumanization of refugees, of migrants, of IDP’s, of stateless individuals has become a worrying trend,” said Turk. “It results from inappropriate language, misinformation, deterrence, detention, separation of families and children, and ‘warehousing.”

Turk says xenophobia, racism, and bigotry often are driven by fear, anger and anxiety within communities.  He says they must be confronted and addressed.  He warns history shows how the mistreatment of the foreigner paves the way for the mistreatment of the citizen.

Pentagon Chief: Russia’s Violation of Arms Control Pact ‘Untenable’

U.S. Defense Secretary Jim Mattis said Thursday Russia’s violation of a global arms control treaty is “untenable” and warned the U.S. would be forced to match Moscow’s military capabilities if it continues to violate the pact.

The U.S. maintains Russia’s Novator 9M729 cruise missile violates the 1987 Intermediate-Range Nuclear Forces Treaty, a Cold War-era agreement that bans medium-range missiles capable of striking Europe or Alaska. The treaty bans all nuclear and conventional ground-launched and cruise missiles of intermediate range.

Mattis told reporters Thursday after a NATO defense ministers meeting in Brussels the U.S. is reviewing its military and diplomatic options because of Russia’s continued violation of the treaty.

“Russia must return to compliance with the INF Treaty or the U.S. will need to match its capabilities to protect U.S. and NATO interests. Make no mistake, the current situation with Russia in violation of this treaty, is “untenable,” Mattis said.

U.S. Ambassador to NATO Kay Bailey Hutchinson said if Russia does not comply with the treaty, the U.S. will explore ways to “take out” Russia’s cruise missile system. She later said she did not mean the U.S. would strike Russia pre-emptively, but wanted to emphasize the importance of Moscow’s adherence to the treaty.

Russia has consistently denied any such violation and has asserted that the U.S. has positioned missile defense systems in violation of the pact.

The U.S. initially accused Moscow early last year of deploying the cruise missile system.

Mattis’ remarks may exacerbate U.S.-Russia relations, which have deteriorated to their lowest point since the end of the Cold War due to Russia’s 2014 seizure of Crimea, its continuous bombing of Syria and it’s meddling in the 2016 U.S. presidential election.

US to Confront Russia, China on Militarization of Outer Space

At an upcoming U.N. disarmament conference, the United States vows to push back against Russian and Chinese threats against the peaceful use of outer space. The U.N. General Assembly First Committee on Disarmament and International Security opens Monday in New York and is scheduled to run five weeks.

Ambassador Robert Wood, U.S. permanent representative to the Conference on Disarmament in Geneva, laid out some of Washington’s main priorities in advance of the U.N. disarmament and security meeting.

He said the U.S. delegation plans to actively push against issues that go against U.S. and allied security interests. Foremost among these, he said, was the U.S. determination to counter Russian and Chinese outer space and cyber threats.

He said the U.S. dismisses claims that activities by Moscow and Beijing are aimed at preventing the militarization of outer space.  

“What they want to do is to limit the United States’ ability to operate in space by in essence going forward with an initiative that allows them to be able to attack satellites and other peaceful space vehicles through the use of anti-satellite weapons,” Wood said.

In 2014, the Russian and Chinese governments submitted a new version of a draft treaty on the prevention of the Placement of Weapons in Outer Space Treaty (PPWT).  When they introduced the draft treaty, they said, “We consider a legally binding ban on placement of weapons in outer space as one of the most important instruments of strengthening global stability and equal and indivisible security for all.”

Ambassador Wood, during a press conference, said the proposed treaty was “not verifiable” and does not deal with the fundamental issue, which is banning anti-satellite weapons – terrestrial based anti-satellite weapons. The treaty does not cover that subject. He said that was one of the major threats to the peaceful use of outer space.

“When we ask the Russians and Chinese why do you not take on this issue in full, they kind of fudge (obfuscate) and do not really address the issue,” he said.

Wood said a second priority is to uphold the norm against chemical weapons use. Over the past year, he noted, Russia has worked to discredit the Organization for the Prohibition of Chemical Weapons (OPCW).

The main function of the OPCW is to ensure the implementation of the Chemical Weapons Convention.   

“You have seen many public statements by Russian officials dismissing independent analyses, independent investigations, the work of the OPCW with regard to Syria’s chemical weapons use. So, this, first and foremost, is a major challenge trying to counter this very, very strong Russian propaganda effort,” he said.  

Wood said the U.S. and its allies have to push back against Russian claims that Syria never used chemical weapons. He said both Syria and Russia must be held accountable for these crimes.

 

Pope Opens Youth Meeting as Sex Abuse Survivors Stage Sit-in

Pope Francis urged Catholic bishops to dream of a future free of the mistakes of the past as he opened a global church leadership meeting Wednesday amid renewed outrage over the priestly sex abuse and cover-up scandal.

Yet down the block from the Vatican’s synod hall, about two dozen abuse survivors staged a sit-in, demanding their cause be taken up at the meeting and voicing outrage that some of the delegates had covered up for abusive priests.

“Make ‘Zero Tolerance’ Real,” read one protest sign.

Francis welcomed more than 250 priests, bishops and cardinals — as well as 34 young Catholics — to a monthlong meeting on ministering to future generations, urging young and old to listen to one another without prejudice.

He prayed for God’s help to ensure the church “does not allow itself, from one generation to the next, to be extinguished or crushed by the prophets of doom and misfortune, by our own shortcomings, mistakes and sins.”

The Oct. 3-28 synod comes amid new revelations about decades of sexual misconduct by priests and cover-ups in the U.S., Chile, Germany and elsewhere. That has sent confidence in Francis’ leadership to all-time lows among the American faithful.

31 percent support

A new survey by the Pew Research Center found that just 31 percent of U.S. Catholics felt the pope was doing an excellent or good job in addressing the abuse issue, down from 45 percent in January and 55 percent in 2015.

It has been a disastrous year for the pope on the abuse front, after he botched a prominent cover-up scandal in Chile before changing course. More recently, he has been accused of rehabilitating an American ex-cardinal who pressured seminarians to sleep with him.

Those cases, coupled with the release of devastating studies about decades of abuses and cover-ups in Pennsylvania and Germany that predated his papacy, have fueled doubts about his oft-stated pledge of having “zero tolerance” for that, since implicated bishops remain in place.

“Pope Francis talks about ‘zero tolerance,’ and that bishops who cover up should be removed and put on trial,” said Alessandro Battaglia, who was 15 when he was abused by a Milan-area priest who last month was convicted and sentenced to over six years in prison.

The current archbishop of Milan, Mario Delpini, testified at the trial of the Rev. Mauro Galli that he had transferred Galli to another parish rather than report him to police or keep him away from other potential victims, as Battaglia’s family had requested.

Despite publicity about the case, Francis named Delpini archbishop of Milan in July and named him a papal delegate at the synod.

“What is this ‘zero tolerance’?” Battaglia asked at the protest Wednesday. ‘If he wants to give a sign of zero tolerance and coherence and credibility, remove him [Delpini].”

Provolo Institute

Among those participating in the protest were the hearing-impaired victims of the notorious Antonio Provolo Institute in Verona, Italy, where deaf children were sodomized for years by Catholic priests and brothers. The victims have found no justice even though Francis and the Vatican were informed of their plight in 2014. They are now preparing a case to take to Italian prosecutors.

“We think young people should question the way the church has dealt with this in the past,” said Matthias Katsch of the Ending Clergy Abuse global advocacy group.

Francis didn’t refer directly to the abuse scandal in his homily at Mass or later Wednesday in his opening speech to the synod. He did, however, call for an end to the “scourge of clericalism” — the culture that puts clergy on a pedestal and unaccountable to their flocks, which Francis has blamed for the scandal.

“Clericalism is a perversion and is the root of many evils in the church,” he told the delegates. “We must humbly ask forgiveness for this and above all create the conditions so that it is not repeated.”

Francis choked up during his homily when he welcomed two Chinese bishops to the gathering, the first time Chinese bishops have attended a Vatican synod. That was made possible thanks to a landmark agreement with Beijing over bishop nominations that unified the Chinese Catholic leadership for the first time in decades.

Merkel in Israel to Promote Tight Ties, as Differences Loom 

German Chancellor Angela Merkel arrived in Israel on Wednesday for the latest in a series of joint government consultations highlighting the countries’ close bond seven decades after the Holocaust, even as recent developments have tested the tight ties. 

Her two-day visit is expected to focus on bilateral economic issues, with an emphasis on innovation, technology and development projects. But looming in the background will be sharp differences in Israeli and German policies toward Iran and the Palestinians. 

Merkel, who is accompanied by much of her Cabinet, a large business delegation and her new czar for combatting anti-Semitism, will visit Israel’s Yad Vashem Holocaust memorial and receive an honorary doctorate from Haifa University. It’s the seventh such joint government meeting since Israel and Germany established the tradition a decade ago. 

Merkel headed to Jerusalem shortly after landing for dinner with Israeli Prime Minister Benjamin Netanyahu.

Germany is Israel’s largest trading partner in Europe and for the past few decades has been perhaps its strongest ally. Israel was established three years after the end of World War II, and the German government has paid billions in reparations to Holocaust survivors and positioned itself as a leader in combatting anti-Semitism. 

But differences have been exacerbated following the election of U.S. President Donald Trump. 

Netanyahu has been one of Trump’s staunchest international supporters, lauding him for pulling out of the Iranian nuclear deal that Merkel and other world leaders helped negotiate in 2015. Netanyahu says the deal, which curbed Iran’s nuclear program, does not include enough safeguards to prevent the Islamic Republic from developing a nuclear weapons capability. 

Trump also has largely refrained from criticizing Israeli settlement activity in the West Bank — a frequent European complaint — recognized Jerusalem as its capital and moved the U.S. embassy there. He also has cut funding to the Palestinians and fully pinned the blame for stalled Mideast peace talks on them. 

Netanyahu’s rapport with Merkel has been cordial and even cool at times. Merkel has continued to champion the traditional approach to peacemaking, calling for the establishment of a Palestinian state and for Israel to refrain from unilateral steps to undermine its prospect. Germany, for instance, has been among the European countries calling on Israel to refrain from carrying out its plans to demolish a West Bank hamlet it says was illegally built. 

Israel has offered to resettle the 180 Bedouin Palestinian residents of the Khan al-Ahmar encampment a few miles (kilometers) away. But Palestinians and their European backers say the demolition is aimed at displacing Palestinians in favor of settlement expansion and would deal a devastating blow to hopes for Palestinian statehood. 

Israel’s Supreme Court recently rejected a final appeal against the plans and residents are bracing for the move any day. Israeli forces are unlikely to carry it out though during Merkel’s brief stay for fear of sparking a crisis. 

Regardless, Israeli officials say they don’t expect that issue — or Merkel’s long held preference to maintain the Iran deal — to overshadow the visit, which is expected to bring about new economic agreements, the creation of a formal youth exchange and a renewed commitment to combating anti-Semitism, after Israel raised alarm over several recent cases in Germany. 

Shimon Stein, a former Israeli ambassador to Germany, said that despite the Israeli government’s growing alliances with several eastern European countries in the battle against radical Islam, Germany remains its strongest and most significant European backer. 

“These routine consultations have created a symbolism for the relationship that should not be overlooked,” he said. “Germany doesn’t always see eye to eye with Israel … but it is the leading supporter of Israel as a Jewish and democratic state.”

The two countries established diplomatic ties in 1965, after which Germany began paying reparations for the Nazi-led Holocaust in which 6 million Jews were murdered. 

The first joint consultation was in March 2008, when Merkel and her Cabinet arrived to mark the 60th anniversary of Israel’s independence. During that three-day visit, Merkel addressed the Israeli parliament, in German, and expressed shame over the Holocaust. The 20-minute speech earned Merkel a standing ovation.

Putin Hopes Europe Will Resist US Pressure on Germany Pipeline

Russian President Vladimir Putin on Wednesday strongly defended a prospective Russia-Germany natural gas pipeline as economically feasible and voiced hope that European Union nations will be able to resist U.S. pressure to thwart the project.

U.S. officials have warned that Washington could impose sanctions on the undersea Nord Stream 2 pipeline. The U.S. and some EU nations oppose it, warning it would increase Europe’s energy dependence on Russia. The U.S. is also interested in selling more of its liquefied natural gas in Europe.

Speaking Wednesday after talks with Austrian Chancellor Sebastian Kurz in St. Petersburg, Putin noted that Bulgaria caved in to pressure and dumped the Russian South Stream pipeline.

He added that he hopes that “Europe as a whole won’t look like Bulgaria and won’t demonstrate its weakness and inability to protect its interests.”

“Russia always has been and will remain the most reliable supplier,” Putin said, adding that the Russian gas supplied via pipelines is significantly cheaper than U.S. liquefied gas. “Supplies come directly from Yamal in Siberia. There are no transit risks.”

It would be “silly and wasteful” if Europe opts for a more expensive option, hurting its consumers and its global competitiveness, Putin charged.

Ukraine, which has served as the main transit route for Russian gas supplies to Europe, has strongly opposed the Russian pipeline, fearing that it would leave its pipeline empty. The two ex-Soviet neighbors have been locked in a bitter tug-of-war after Russia’s 2014 annexation of Ukraine’s Crimean Peninsula.

Kurz spoke in support of Nord Stream 2 but also emphasized the importance to continue supplies via Ukraine.

“It’s very important that Ukraine’s interests as a key transit country be upheld,” he said.

Putin has previously pledged to consider the continuation of gas supplies via Ukraine if it settles a commercial dispute with Russia over previous gas supplies.

Trade Pact Clause Seen Deterring China Deal with Canada, Mexico

China’s hopes of negotiating a free trade pact with Canada or Mexico were dealt a sharp setback by a provision deep in the new U.S.-Mexico-Canada trade agreement that aims to forbid such deals with “non-market” countries, trade experts said on Tuesday.

The provision specifies that if one of the current North American Free Trade Agreement partners enters a free trade deal with a “non-market” country such as China, the others can quit in six months and form their own bilateral trade pact.

The clause, which has stirred controversy in Canada, fits in with U.S. President Donald Trump’s efforts to isolate China economically and prevent Chinese companies from using Canada or Mexico as a “back door” to ship products tariff-free to the United States.

The United States and China are locked in a spiraling trade war that has seen them level increasingly severe rounds of tariffs on each other’s imports.

Under the clause, the countries in the updated NAFTA, renamed the U.S.-Mexico-Canada Agreement (USMCA), must notify the others three months before entering into such negotiations.

Derek Scissors, a China scholar at the American Enterprise Institute in Washington, said the provision gave the Trump administration an effective veto over any China trade deal by Canada or Mexico.

If repeated in other U.S. negotiations with the European Union and Japan, it could help isolate Beijing in the global trading system.

“For both Canada and Mexico, we have a reason to think an FTA with China is a possibility. It’s not imminent, but this is a very elegant way of dealing with that,” Scissors said.

“There’s no China deal that’s worth losing a ratified USMCA,” Scissors added.

After months of bashing its Western allies on trade, the Trump administration is now trying to recruit them to join the United States in pressuring China to shift its trade, subsidy and intellectual property practices to a more-market driven focus.

Beijing has demanded that the World Trade Organization recognize it as a “market economy” since its WTO accession agreement expired in December 2016, a move that would severely limit Western trade defenses against cheap Chinese goods.

But the United States and European Union are challenging the declaration, arguing that Chinese state subsidies fueling excess industrial capacity, the exclusion of foreign competitors and other practices are signs it is still a non-market economy.

Canadian Sovereignty Questioned

Canadian Prime Minister Justin Trudeau’s Liberal government, seeking to diversify Canada’s export base, held exploratory talks with China on trade in 2016, but a launch of formal negotiations has failed to materialize.

Tracey Ramsey, a legislator for Canada’s left-leaning New Democrats, said in the House of Commons on Tuesday that the clause was “astonishing” and a “severe restriction on Canadian independence.”

“Part of Canada’s concessions in this deal was to include language that holds Canada hostage to the Americans if we decide to trade with another country,” Ramsey said. “Why did the Liberal (Party) give the go-ahead for the U.S. to pull us into their trade wars?”

Canadian Finance Minister Bill Morneau downplayed the provision, arguing it was not significantly different from NAFTA’s clause that allows any member to leave the pact in six months’ time for any reason.

“It is largely the same. It recognizes though that the non-market economy is of significant importance as we move forward. But I don’t think it’s going to make a material difference in our activities,” Morneau told a business audience.

Mexico’s business community sided with the Trump administration in endorsing the pact.

“We are associating ourselves with countries that promote market freedom and that promote free trade in the world, free trade under equal circumstances,” said Juan Pablo Castañon, head of the Consejo Coordinador Empresarial (CCE), which represented Mexico’s private sector during the NAFTA trade talks.

Mexican, Canadian Steel Lobbies Urge Fix to US Tariff Dispute

Mexico and Canada on Tuesday urged their governments to resolve a tariff dispute with the United States before signing a new trilateral trade deal that was unveiled this week.

In late May, the Trump administration announced tariffs of 25 percent on steel imports and 10 percent on aluminum imports, prompting quick retaliation from top trading partners including Canada and Mexico.

Late on Sunday, the United States and Canada reached a deal to overhaul the North American Free Trade Agreement (NAFTA), complementing an accord the Trump administration brokered with Mexico, the third member of NAFTA, in late August.

Mexican steel producers association Canacero welcomed the new trade pact, called the United States-Mexico-Canada Agreement (USMCA), but said it viewed “with concern” the ongoing steel dispute and the “serious situation” it created for the industry.

U.S. President Donald Trump said on Tuesday that U.S. steel and aluminum tariffs would remain in place for Canada and Mexico until they “can do something different like quotas, perhaps.”

In a statement, Canacero said it supported efforts to find a solution to the impasse before the leaders of Mexico, the United States and Canada signed USMCA, which officials say could happen at a G20 summit at the end of November.

If no solution can be found, Mexico should put tariffs on U.S. steel to level the playing field, Canacero said.

Mexico has already slapped tariffs on U.S. pork, bourbon, motor boats and other products. Canada has levied tariffs on a range of U.S. imports, including steel and aluminum.

Joseph Galimberti, president of the Canadian Steel Producers Association, said he expected Canada’s government to continue to support the industry after the USMCA breakthrough.

“There is clearly an opportunity to constructively engage the United States between the achievement of a deal in principle and the ratification or signature of that deal,” he said.

Canada is the top exporter of steel and aluminum to the United States. The United Steelworkers of Canada adopted a less conciliatory tone after the new trade deal was announced, calling it a “sell-out” for Canadian workers.

Mexican officials have said they hope the steel and aluminum dispute can be resolved before USMCA is signed.

Since the tariff row broke out, Mexican steel exports to the United States had fallen 30 percent on average, Canacero said.

Disaster Undoes Hard-won Progress for Indonesian Port City

Palu, the Indonesian city devastated by an earthquake, tsunamis and mudslides, has strived to transform itself into a major trading hub, but the city’s buildings and other infrastructure were no match for the triple whammy that has left more than 1,200 people dead. 

The disasters that struck late Friday left the city’s port in ruins, its lone gantry crane atilt in the water. Its airport terminal was a sea of shattered glass and broken ceiling panels. A seven-story, 4-year-old hotel lay flat on its side. Its biggest bridge disintegrated, its picturesque yellow arches mangled in the mud. 

Ringed by coconut, coffee and cocoa farms, over the past two decades Palu has acquired modern shopping malls, hotels and other amenities to suit its ambitions. Poverty has fallen from nearly a third of its 380,000 residents to under one in 10, local officials say. 

A national blueprint calls for developing Palu as part of the “Sulawesi Economic Corridors” — a plan to attract investment and build up trade and commerce in a region that has remained somewhat isolated since the days of the ancient spice trade.  

Given how seismically active the area is — the Palu-Koro fault runs right through the city — it’s been a race against the odds. Historical records show the area has been hit by tsunamis — triggered by powerfully destructive earthquakes — at least seven times in the past two centuries. 

It’s unclear what standards were required, or enforced, in the construction of Palu’s modern buildings.

It’s an issue for all of Indonesia, an archipelago that sits square on the Pacific Ring of Fire. 

Teddy Boen, an expert on earthquake-resistant engineering who has consulted with foreign governments and international organizations, has been researching the problem for a half-century.

“From 50 years ago until today, there is similar damage. Somebody is not doing their job,” he said in a phone interview. “The codes are complete. The manuals are complete. The political will is not there.” 

The collapse of a mezzanine floor inside the Jakarta Stock Exchange in January that injured dozens of people underscores the extent of the problem, even in Indonesia’s capital.

After a tsunami in 2004 killed 230,000 people in Indonesia and elsewhere across Asia, it became apparent that in many communities, sturdy mosques and other strong buildings dating back to colonial times were the only structures still standing while newer structures often crumbled. 

In Palu, the Arkam Babu Rahman “floating mosque” on the city’s waterfront was pushed off-kilter by Friday’s tsunamis, while its worship halls remained intact. But a bigger, 20-year-old structure topped by a heavy dome was gutted as the debris-laden water swept through. 

Few of the buildings in Palu’s suburbs of Petobo, Biromaru and Bala Roa could withstand the sideways mudslide that engulfed those communities in expanses of oozing quicksand.  

Indonesia’s disaster agency spokesman Sutopo Purwo Nugroho said the soil there had liquefied and that authorities believed hundreds of people may have been buried in the mud. In Bala Roa, the ground violently heaved up and then sank in places, trapping many people under their wrecked homes. 

Traditional homes with thatched or tin roofs cannot withstand tsunamis or storm surges from typhoons but pose much less of a risk of severe damage even if they do collapse in an earthquake. Many homes built recently are hybrids, combining traditional styles with unreinforced masonry and tile roofs too heavy for the structures when they are shaken by quakes. 

The rush to rebuild after a disaster involves cutting corners, rather than fortifying buildings to prevent future calamities.

“Now, they say, build back better, build back better, but they do the same thing again,” Boen said. “The earthquake comes, they made the same mistakes and people get killed again.”

Paris Builds Zero-Carbon Future with Social Conscience

Arrayed between elegant stone buildings and run-down railway tracks in the northwest of Paris lie bustling playgrounds, plant-filled ponds and stretches of lush grass.

The Clichy-Batignolles area, a former industrial wasteland, has morphed into the French capital’s first “eco-neighborhood,” billed as a model of sustainable development for the rest of the city.

Clarisse Genton, project coordinator for the Clichy-Batignolles district, said it aims to be “environmentally responsible” — with solar panels on homes and clean geothermal energy for heating, for example.

But the eco-effort also has a social aim: to address the city’s affordable housing crisis and ensure green benefits reach the poor as well as the rich.

“We wanted to create a district that’s accessible to all and to bridge the gap between poor and rich parts of the city,” said Genton, referring to the neighboring posh district of Monceau and the poorer La Fourche.

Paris is one of more than 70 cities worldwide that have pledged to become “carbon neutral” by 2050, meaning they will produce no more climate-changing emissions than they can offset, such as by planting carbon-absorbing trees.

Each is going about achieving the goal in its own way. But because cities account for about three-quarters of carbon dioxide emissions, according to the U.N., and consume more than two-thirds of the world’s energy, whether they succeed or fail will have a huge impact on whether the world’s climate goals are met.

“Cities are where everything comes together: homes, transport, public spaces — so there’s a real role for them to help create the living places of the future,” said Eliot Whittington, director of the Prince of Wales’ Corporate Leaders Group, a coalition of businesses promoting climate action.

“We’ve got to a state of accepting a certain level of waste and energy [use], but climate change [and] heat waves affect us all and have a real toll on people’s lives,” he told Reuters.

Global warming is currently set to exceed the more ambitious limit of 1.5 degrees Celsius (2.7 degree Fahrenheit) called for in the 2015 Paris Agreement to curb climate change, according to a draft U.N. report due for publication in October.

Following public consultations, Paris adopted its climate action plan in March. It aims to make the city carbon-neutral and entirely powered by renewable energy by 2050.

From swimming pools heated by sewage to ensuring the city is fully “cyclable” by 2020, it includes more than 500 initiatives to reimagine Paris as a zero-carbon capital.

‘Green lung’

The Clichy-Batignolles area of 54 hectares (130 acres), once chosen as Paris’s Olympic village as part of the city’s failed 2012 bid, is built around a 10-hectare park containing a skate park, deck chairs and wooden bridges.

Martin Luther King Park acts as a “green lung” and an “island of coolness” for the neighborhood, said Genton, showing a miniature model of the district to two passersby.

“Rainwater is channeled toward wetlands rather than discharged into sewers, and household waste is collected through an underground pneumatic system — removing the need for garbage trucks,” she added.

Buildings are heated by a new geothermal plant, and about two-thirds of homes are equipped with solar panels on their roof.

But the eco-district is about more than energy efficiency and biodiversity, said Genton, adding that “we urgently need affordable homes in a city that cannot grow and where prices are skyrocketing.”

Half of the neighborhood’s newly built flats qualify as social housing and can be rented for about 300 euros a month, she said.

Local residents have so far warmed to their new neighborhood, and say they feel “more connected” to the rest of the city, she said.

But many still await the arrival of a promised metro line, which should help reduce traffic and public transport congestion in the area, Genton said.

Virgile Geraud, a retired carpenter who has lived in Clichy-Batignolles for 40 years and is considering renting one of the new homes, said that “this new park, these new buildings … it’s really nice, it’s a change of lifestyle.”

“But some people think the new buildings are too tall or too modern,” he added, pointing to a bright yellow crane looming over a half-completed building.

Denis Musanga, who two months ago moved to Clichy-Batignolles from the Paris suburb of Villiers-le-Bel, said he was “shocked by how clean it is, even at night.”

He is less convinced of the “affordable” label, however, saying that he pays 650 euros for one room in a two-bed flat — “much more than what I paid in the suburbs.”

Citizen-led

If zero-carbon initiatives are to succeed, citizens need to buy into them, according to the city of Paris’ climate plan, which received hundreds of proposals from residents to improve their city.

Fortunately, many ways of cutting emissions can also help people be more comfortable or save money, experts said.

Improving home insultation, for instance, can curb emissions, make people more comfortable and make a “significant difference” in their energy bills, Whittington said.

“Loft insulation for example is one of the easiest things to do, but what holds people back from doing it is the hassle. When do you do it? How do you clear the loft?”

European cities have come a long way in improving energy efficiency in buildings and homes, he said, but still have a “huge body of old, inefficient buildings.”

“That’s a missed opportunity to tackle energy waste and improve people’s lives,” he said.

Aiming to tackle this is France’s Passeport Efficacite Energetique (Energy Efficiency Passport) — a project led by think tanks and companies such as French utility EDF. It encourages householders to renovate their homes step by step.

Still in its pilot phase, the project involves auditing the energy efficiency of homes and storing any progress made — such as the use of more efficient lighting — with an online tool.

Musanga, whose building is not yet equipped with solar panels, said he is open to the idea but “wants proof” that going greener can save him money.

“If it helps the planet, then that’s a bonus,” he said, tying on his rollerblades before disappearing into the distance.

Russia Completes Delivery of S-300 System to Syria

Russia has delivered an S-300 surface-to-air missile system to Syria, it said Tuesday, in defiance of Israeli and U.S. concerns that the arms sale would embolden Iran and escalate the Syrian war.

Defense Minister Sergei Shoigu told President Vladimir Putin during a meeting broadcast by Rossiya 24 TV: “The work was finished a day ago,” adding that the system would improve the security of Russian military personal in Syria.

Russia decided to supply the system after Moscow accused Israel of indirectly causing the downing of a Russian military jet near Syria in September.

Israel voiced regret at the death of 15 Russian air crew while saying Syrian incompetence was at fault and that it was compelled to continue taking action against suspected deployments of Iranian-backed forces across its northern border.

“We have not changed our strategic line on Iran,” Israeli Education Minister Naftali Bennett, a member of Prime Minister Benjamin Netanyahu’s security cabinet, said Tuesday.

“We will not allow Iran to open up a third front against us. We will take actions as required,” he told Israel Radio.

In Washington, State Department spokeswoman Heather Nauert could not confirm reports that the S-300 had been delivered.

“I cannot confirm that that is accurate. I hope that they did not,” she told a press briefing. “That would be, I think, sort of a serious escalation in concerns and issues going on in Syria, but I just can’t confirm it.”

Possible Successors to EU’s Juncker

Following are some of the many possible contenders to succeed Jean-Claude Juncker as EU chief executive after elections to the European Parliament in May.

Apart from electoral uncertainty, it is unclear that national leaders will follow Parliament’s call for them to pick a European Commission president from among the lead candidates of parties contesting the ballot.

Conservatives

Manfred Weber — An MEP for 14 years, the 46-year-old German has led the biggest EU parliamentary group since 2014. He has declared he will run and he can be confident of support from German Chancellor Angela Merkel despite his youthful years and lack of the government experience that is usual for commission presidents. Diplomats in Brussels say, however, Merkel could still drop Weber to secure another prominent job for Germany, like the head of the European Central Bank, which also comes vacant next autumn.

Michel Barnier — The EU’s chief Brexit negotiator ruled himself

out of the race on Friday.

Alexander Stubb — The former Finnish prime minister announced he would challenge Weber at an EPP nominating convention in Helsinki on Nov. 8. Stubb, 50, competes in “Iron Man” triathlons and is multilingual, unlike Weber, who does not speak French, or Barnier, who rarely seems comfortable in English.

Other names cited have included Merkel allies Peter Altmaier and Ursula von der Leyen and French IMF managing director Christine Lagarde — not to mention the wild card of Merkel herself, who is now in her fourth term.

Socialists

Marcos Sefcovic — The Moscow-educated Slovak diplomat who has worked in Brussels since 2004 and is Juncker’s vice president for energy, said in June he would run. He is 52. Sources in Brussels say he stands no chance in the top job race but will be Bratislava’s pick for a portfolio in the next commission.

Christian Kern — Austria’s former chancellor, Kern is known for his strongly pro-European stance. He said earlier this month he would seek to win a seat in the European Parliament next May.

​Federica Mogherini — The 45-year-old was catapulted into the high-ranked commission post of EU foreign policy chief in 2014. She could benefit from efforts to promote female candidates and a better left-right balance in Brussels but may struggle to get the necessary support from the new populist coalition in Rome.

Helle Thorning-Schmidt — Danish prime minister until 2015, at 51 she is perennially cited as a center-left hope for senior EU roles but lacks backing from the ruling right in Copenhagen.

Frans Timmermans — Juncker’s Dutch deputy, 57, is a former foreign minister and passionate, multilingual advocate for the EU but his party’s national eclipse counts against him.

Pierre Moscovici — Former French finance minister, 60, now EU economics commissioner, his party’s national disarray is also a disadvantage, as is German wariness over his commitment to Berlin’s vision of a eurozone of tight public finances.

Nadia Calvino — Long a senior commission civil servant, at 50 she has the rare distinction for EU Socialists of being in government, having been named Madrid’s economy minister in June.

Liberals

Guy Verhofstadt — Former Belgian prime minister who leads the liberals in the EU parliament, his age (65) and outspoken advocacy of much more powers for Brussels may limit his appeal. 

Margrethe Vestager — As a woman, age 50 and with a star profile in Brussels from attacking tax avoidance and monopoly powers among U.S. multinationals like Google and Apple as the EU competition commissioner, the Danish former economy minister is widely talked about as a liberal who could win support beyond her party — even if Denmark’s ruling conservatives oppose her.

​Cecilia Malmstrom — Another straight-talking, 50-year-old Scandinavian woman who has had a big role in Brussels’ tussles with Washington, the EU trade commissioner and former Swedish Europe minister could tick similar boxes to Vestager.

Mark Rutte — Dutch prime minister for eight years, the 51-year-old may be tempted by a new job. He is solidly pro-EU but appeals to those who want its budgets and powers kept in check.

Xavier Bettel — In five years as Luxembourg prime minister, during which he married his male partner, the 45-year-old has built good relations with fellow national leaders. They might balk at choosing another Luxemburger after Juncker, but his friendship with the even younger Macron could be an asset.

Tesla Worried by China Even as Deliveries Surge

Tesla announced record quarterly car production numbers on Tuesday but warned it was facing major problems with selling cars in China due to new tariffs that will force it to accelerate investment in its factory in Shanghai.

The California-based electric carmaker, emerging from several months of turmoil around its Chief Executive Elon Musk, confirmed numbers leaked to an industry news site on Monday that showed it produced roughly 80,000 cars in the third quarter.

Deliveries reached a record 83,500, above Wall Street estimates of 80,000 and including almost 56,000 of the Model 3 sedan whose ramp-up is widely seen as crucial to the company’s drive to become profitable.

That overshadowed concerns expressed by the company over a 40 percent tariff being charged by China for the import of its cars, which it said was blocking sales in the world’s biggest electric car market. Shares gained 0.5 percent at the open.

“Yes it sounds like the tariff comments could haircut some of their profit plans but the production ramp is very impressive and it should continue to move higher,” analyst Chaim Siegel of Elazar Advisors said.

“The company’s at an inflection point for units and profit.”

Tesla did say that it had missed its weekly Model 3 production target on Tuesday and outlined a series of barriers it faced due to the worsening of President Donald Trump’s trade war with China.

The electric car maker said it was speeding up construction of its Shanghai factory as it seeks to combat a huge competitive disadvantage against other producers and even other imported cars, which it said are carrying a lower 15 percent tariff.

“Tesla is now operating at a 55 percent to 60 percent cost disadvantage compared to the exact same car locally produced in China,” the company said.

Musk in July landed a deal with Chinese authorities to build a new auto plant in Shanghai, its first factory outside the United States, that would double the size of the electric car maker’s global manufacturing.

The company flagged the tariff issue in August but said only that it was likely to have “some” impact on Chinese volumes and would not heavily affect global vehicle deliveries.

“With production stabilized, delivery and outbound vehicle logistics were our main challenges during Q3,” the company said on Tuesday. “We made many improvements to these processes throughout the quarter, and plan to make further improvements in Q4 so that we can scale successfully.”

Tesla produced over 5,300 Model 3 cars in the last week of September, falling short of its target of 6,000.

Overall in the third quarter the company produced 53,239 of the cars in the third quarter, in line with its target of 50,000 to 55,000 Model 3s, and delivered 55,840 of the vehicles to customers.

Tesla first met a long-held target of 5,000 vehicles per week at the end of June after a series of production bottlenecks and delays. Since then the company has been striving to sustain and increase that level.

Iran’s Rial Unexpectedly Rallies After Weeks of Steep Falls

Iran’s currency unexpectedly rallied Tuesday after weeks of depreciation linked to renewed American sanctions, sending Iranians rushing to exchange shops to cash in.

In the Iranian capital, money exchange shops offered 135,000 rials for one U.S. dollar at one point, drawing crowds of onlookers and those wanting to trade. Only the day before, the rial was selling at 170,000 to the dollar, with prices recently going as high as 190,000 to the dollar.

The currency plunged after President Donald Trump moved to restore tough U.S. sanctions after withdrawing from Tehran’s nuclear accord with world powers in May. U.S. sanctions targeting the country’s vital oil industry are set to take effect in early November, which will likely ramp up pressure on the economy.

Prices edged up to over 140,000 to the dollar later Tuesday, fueling suspicions among some Iranians.

“It does not make any sense at all that from four o’clock in the afternoon until the day after suddenly the price of the dollar plummets by 30 to 40 percent. It is not natural,” said Ruhollah Nikravesh, a dollar seller on the streets of Tehran. “It can be either the trick of the government or dealers who seek to collect the people’s dollar savings. There is no management in this.”

Analysts offered various explanations for the rally, including a new policy allowing the Central Bank to intervene more strongly to support the rial and providing for the import of more foreign currency from abroad.

There is also hope in Iran that Europe will be able to shield the country from further U.S. sanctions, including those targeting the oil industry.

Rising oil prices also have some more hopeful about the Iranian economy. Benchmark Brent crude now trades near $85 a barrel, and some analysts believe it could reach $100 a barrel by the end of the year.

Iranian state TV showed people gathering late Monday in the market to sell their dollars. Many had sought hard currencies like the U.S. dollar and the euro amid the rial’s slide, sending its value even lower. A year ago, the rial traded around 39,000 to $1.

Police also have cracked down on some illegal money changers in the streets and online.

“Managers of more than 15 websites that were announcing prices and caused irregularity in the economic situation were summoned or detained,” Tehran police chief Hossein Rahimi told state TV on Tuesday.

Seeking outside investors

In another effort to shore up the currency, the president’s office said Tuesday that Iran will offer five-year residency permits to foreigners if they invest $250,000 in the country.

A prominent Iranian entrepreneur, Pedaram Soltani, saw the Central Bank’s hand in the sudden rally.

“We should wait to see increase in prices of foreign currencies again, the Central Bank should allow that supply and demand decide the price,” he wrote on Twitter.

Iran’s hardline Kayhan newspaper said court cases targeting corrupt traders also helped strengthen the country’s economy. Meanwhile, Iran’s parliament is considering a law to counter money laundering and terror financing that may encourage foreign investment and ease some international sanctions.

Iran’s financial trouble has been fanned by Trump’s decision to pull America from the nuclear deal in May. Under the accord, which the United Nations says Iran still complies with, Tehran limit its enrichment of uranium in exchange for the lifting of some economic sanctions.

The rial’s rally could also partially be due to speculators realizing “the bubble has burst a little bit,” said Esfandyar Batmanghelidj, the founder of the Iranian economic website Bourse & Bazaar.

Others who sought the safety of the U.S. dollar likely want to cash in before the rial strengthens too much, he said.

“It’s possible that in a week or two weeks, some other bit of news will come out and restart the whole process, but it’s certainly a reprieve for the government right now,” Batmanghelidj said.

The restoration of sanctions on the oil industry next month could spark another exodus from the rial.

“It’s largely sort of a herd mentality, kind of an emotional response,” Batmanghelidj said. “That will continue to be a risk because people are susceptible to bad news.”

 

Giant Coal Plant to Close as Australia Faces Energy Shake-Up

One of Australia’s biggest power companies says it will close a major coal-fired power station as it invests in renewable sources despite pressure from the government in Canberra to keep it open.

“Run down, dangerous and expensive” is how an Australian newspaper described the Liddell power plant, adding that it was “the perfect symbol of the decline of the coal industry.”

The facility was completed in 1973 with an expected lifespan of 25 years, but it continues to generate power in a country that relies on coal to generate more than 60 percent of its electricity.

The Australian government wants the plant to stay open for a few more years because of fears of power cuts and concerns about the potentially fragile state of the nation’s energy sector. Two years ago wild storms damaged transmission cables, causing a black-out across the entire state of South Australia. Ministers are also worried about the political implications of household power bills that have soared in recent years.

But energy giant AGL plans to decommission the facility in the New South Wales Hunter Valley in 2022 as it concentrates its commercial interests on renewable sources of energy, including solar and wind. The company insists its decision is economic, and not ideological.

Brett Redman, interim chief executive of energy company AGL says that despite pleas from the government the Liddell power station will close as scheduled in four years’ time.

“Our strategy to exit heavy carbon-emitting facilities over the long term is unchanged,” he said. “We continue in an operational sense to review our plans but there is no change at this point to the Liddell exit date. I have spoken to and I have met personally Angus Taylor, the new energy minister. I found that to be a very comfortable meeting where he understandably is very worried about power price on behalf of Australia’s consumers.”

Australia remains heavily reliant on fossil fuels not only for domestic power generation, but also for economic reasons. It exports billions of dollars worth of coking coal, currently a key ingredient in the making of steel, and thermal coal, which is used for heat and power generation. Much is sold to China, and into Southeast Asia.

Conservationists argue, however, that the coal industry is waning and that Australia should be vigorously pursuing alternative renewable sources. Despite Canberra’s continued enthusiasm for coal, which in Australia is cheap and plentiful, Australia’s energy mix is changing. There has been an increase in small-scale solar power generation, mostly through domestic rooftop panels and more consumption of natural gas.