Turkish Opposition Warns Legal Reforms Threaten Credible Elections

Turkish opposition parties are warning that the raft of electoral reforms parliament passed this week pose a threat to free and fair elections.

“They hid the package from the nation. Why? Because the law explains line by line how election fraud can be conducted,” Kemal Kilicdaroglu, leader of the main opposition CHP party, said Tuesday after the measures were approved.

The reforms were so contentious that fistfights erupted in the parliamentary chamber among deputies as the articles were approved. The 26 changes include easing restrictions on the presence of security forces in ballot stations, allowing state governors to locate ballot boxes and authorizing security forces to remove ballot boxes.

One of the most contentious reforms is allowing the use of paper ballots that do not have official stamps. Until now, ballots had been issued to match the number of voters, which were then stamped by monitors drawn from all political parties.

Controversial 2017 referendum

The use of unstamped ballot papers has revived the controversial April 2017 referendum on extending President Recep Tayyip Erdogan’s powers.

The extension was narrowly approved, but in the middle of vote counting, the electoral body controlling the election allowed unstamped ballots to be included. The decision to accept the votes as valid and the way in which it was implemented was criticized in a report by the Organization for Security and Cooperation in Europe (OSCE) and Council of Europe referendum monitors.

“These decisions undermined an important safeguard against fraud,” the report noted.

The use of unstamped ballots in future elections has caused alarm among opposition parties.

“We can say there is very little hope there are going to be fair elections in Turkey, so the election themselves are under question,” warned Ertugral Kurkcu, parliamentary deputy and president of the pro-Kurdish HDP party. “Tayyip Erdogan put his hand inside the ballot box. Unless the situation is changed dramatically … every election is going to be tainted with fraud and the result won’t be legitimate.”

Voter fraud is of particular concern in Turkey’s predominantly Kurdish southeast, the region at the center of a conflict between security forces and Kurdish insurgents.

During the 2016 presidential referendum, HDP party election monitors raised allegations of ballot-box stuffing. Several voting areas recorded 100 percent support for extending Erdogan’s powers, even though the area was a stronghold against the president.

Adding to such fears, Turkey remains under emergency rule, which was introduced after the failed 2016 coup.

“The next elections most probably take place under the state of emergency, and the government and the regime will do everything in its power to win all the elections. They will not allow any meaningful elections,” political scientist Cengiz Aktar warned.

Ruling party criticisms

Criticism over the latest electoral reforms and fears of fraud have been angrily dismissed by the ruling AK Party and its ally, the MHP party.

Mustafa Sentop, AK Party parliamentary deputy, described opposition party concerns as “ignorant.”

The ruling AK Party argued the reforms are aimed at ensuring fair elections and reducing the threat of voter intimidation.

The opposition CHP party, however, said monitoring elections and counting ballots are key elements of creating free and fair elections.

“For the security of the elections, we have already started working to ensure we will have 1 million volunteer observers, which will mean more than one overseer for each ballot box,” said Sezgin Tanrikulu, deputy head of the CHP party. “I am still hopeful for a just and honest election. At least we should make sure the results cannot be changed.”

The CHP has been frequently criticized by observers for failing to mobilize and marshal its members to properly scrutinize polls.

Already, government supporters have labeled monitoring efforts as subversive and a threat to fair elections.

“The two [opposition] parties’ aim is to create a perception among the public that elections are being manipulated by the ruling party, and the results are therefore illegitimate,” columnist Mehmet Acet wrote in the pro-government Yeni Safak newspaper earlier this month. He said adding a perception of illegitimacy can instigate a “change in government by nonelectoral means.”

Pro-Kurdish HDP party president Kurkcu said, “So what’s ahead for Turkey’s elections is a very big disagreement on how the vote is carried out. There is going to be a very heated debate in the coming days.”

The success of monitoring, especially under emergency rule, in next year’s presidential, general and local elections will be key to whether all parties will accept the election’s results, experts said.

Trump to Weigh New Tariffs Targeting China 

White House trade adviser Peter Navarro said Thursday that President Donald Trump would soon consider new punitive measures against China for its alleged “theft” of intellectual property.

U.S. officials, according to news accounts, are considering imposing as much as $60 billion in annual tariffs against Chinese information technology, telecommunications and consumer exports to the U.S. in an effort to trim its chronic annual trade deficit with Beijing by $100 billion. Last year, the U.S. says it imported Chinese goods worth $375 billion more than it exported to China.

“In the coming weeks, President Trump is going to have on his desk some recommendations,” Navarro told CNBC. “This will be one of the many steps the president is going to courageously take in order to address unfair trade practices.

“I don’t think there’s a single person … on Wall Street that will oppose cracking down on China’s theft of our intellectual property or their forced transfer,” Navarro said.

The new tariffs and other measures would be in addition to the 25 percent tariff on steel imports to the U.S. and 10 percent levy on aluminum that Trump announced last week, some of which affect China.

​At a political fundraiser Wednesday, Trump attacked several trading partners for the billions of dollars in trade surpluses they have built up against the U.S. He contended that China had become an economic power — the world’s second biggest economy — because of its trade surplus with the United States.

China warned it would likely retaliate against any new tariffs the U.S. imposes.

Foreign minister spokesman Lu Kang said, “History has proven that a trade war is in no one’s interest.”

He said that “if an undesirable situation arises, China has the intention of safeguarding its legitimate rights.”

Trump’s new tariffs on metal imports have led in recent days to volatility on U.S. stock exchanges, with wide day-to-day swings of hundreds of points in stock indexes. 

But Navarro said the U.S. can impose the tariffs in a way that can be good for the American people and good for the global trading system. We can do this in a way that is peaceful and will improve and strengthen the trading system. … Everybody on Wall Street needs to understand: Just relax.”

HSBC Has 59 Percent Gender Pay Gap, Biggest Among British Banks

HSBC will reveal a gender pay gap of 59 percent at its main U.K. banking operation, the biggest yet disclosed by a British bank, according to a copy of the lender’s report on the subject seen by Reuters on Thursday ahead of its publication.

The bank will also disclose a mean gender bonus gap of 86 percent at HSBC Bank Plc, which is the biggest of the lender’s seven entities in Britain and employs 23,507 people.

A spokeswoman for the bank confirmed the contents of the report.

The gender pay gap is the biggest yet reported by a British financial firm, according to government data, with some firms yet to provide figures ahead of an April deadline set by Prime Minister Theresa May last year.

Almost 50 years since the passage of Britain’s equal pay act, the continued gulf in earnings between men and women has attracted significant public attention over the past year or so.

In common with other banks, HSBC said its pay gap was largely accounted for by the bank having fewer women in senior roles.

The gender pay gap measures the difference between the average salary of men and women, calculated on an hourly basis.

HSBC said women held only 23 percent of senior leadership positions in its workforce in Britain, despite accounting for more than half of total staff.

The bank said it was taking a number of steps to reduce the pay gap, including committing to an aspirational target of women holding 30 percent of senior roles by 2020.

Last month, Asia-focused Standard Chartered reported a gap of 30 percent in Britain, while Virgin Money — the only major UK lender run by a woman — said its female staff earned on average 32.5 percent less per hour than its male workforce.

Lloyds Banking Group and Royal Bank of Scotland reported gender pay gaps of 32.8 percent and 37 percent respectively.

Barclays said last month it paid women in its international division, which houses its investment bank, on average 48 percent of what men earned in fixed pay.

The pay gaps have drawn criticism from lawmakers and are likely to spur questions from investors in the upcoming season for shareholder meetings, with stock prices and future earnings potential strongly linked to banks’ efforts to revive their reputations in the wake of the global financial crisis.

Germany Says Trade War Could Damage Global Recovery

Germany said on Thursday that any escalation of U.S. President Donald Trump’s tariffs on metal imports into a full-blown trade war could cause tangible damage to the global recovery, although the tariffs themselves should have only a limited effect.

Trump last week ordered the imposition of duties on incoming steel and aluminum and threatened to levy a tax on European cars if the European Union did not remove “horrific” tariffs and trade barriers on a range of goods.

“The German economic upswing is continuing at the beginning of 2018. The global economic environment is still favorable,” the Economy Ministry said in its monthly report. But it said U.S. trade policies were creating a sense of uncertainty.

The tariffs on steel and aluminum will affect trade flows in some regions, but their overall implications for the global economy are likely to be manageable, it said.

“But a possible escalation into a trade war and rising uncertainty among market participants could cause tangible damage,” it added.

European Council President Donald Tusk on Wednesday urged the United States to revive trade talks rather than escalate a dispute over tariffs on metals and cars.

And Swiss National Bank Chairman Thomas Jordan said on Thursday that U.S. protectionism could be a threat to the export-dependent Swiss economy and trigger safe-haven flows that would drive up the value of the Swiss currency.

‘At a crossroads’

Germany’s new economy minister, Peter Altmaier, said Trump was challenging the multilateral trade system as defined by the rules of the World Trade Organization (WTO).

“We are at a very important crossroads,” Altmaier said, warning of a scenario in which countries could start a spiral of tit-for-tat trade restrictions.

“This is a really huge challenge with implications for all of us,” Altmaier added. He said consumers in all countries would end up footing the bill because tariffs would push up prices for many kinds of products.

The threat of a full-blown trade war will also be on the agenda of the G-20 meeting in Argentina, where finance ministers and central bank governors from the world’s 20 biggest economies meet from March 17 to 20.

Germany’s new finance minister, Olaf Scholz, will meet his U.S. counterpart Steven Mnuchin on Sunday or Monday on the sidelines of the meeting to discuss trade, banking regulation and other issues, senior German officials said on Thursday.

“The minister will have bilateral meetings with all G-7 counterparts,” one of the officials said, on condition of anonymity, adding that multilateral trade would “certainly be a big topic” at the G-20 meeting.

The taxation of profits from digital business and regulation of crypto currencies will also be in focus, the official added.

 

Amazon: Prime Video Lured Millions to Shopping Club

Amazon.com Inc.’s top television shows drew more than 5 million people worldwide to its Prime shopping club by early 2017, according to company documents, revealing for the first time how the retailer’s bet on original video is paying off.

The documents also show that Amazon’s U.S. audience for all video programming on Prime, including films and TV shows it licenses from other companies, was about 26 million customers.

Amazon has never released figures for its total audience.

The internal documents compare metrics that have never been reported for 19 shows exclusive to Amazon: their cost, their viewership and the number of people they helped lure to Prime.

Known as Prime Originals, the shows account for as much as a quarter of what analysts estimate to be total Prime sign-ups from late 2014 to early 2017, the period covered by the documents.

Viewers to shoppers

Core to Amazon’s strategy is the use of video to convert viewers into shoppers. Fans access Amazon’s lineup by joining Prime, a club that includes two-day package delivery and other perks, for an annual fee.

The company declined to comment on the documents seen by Reuters. But Chief Executive Jeff Bezos has been upfront about the company’s use of entertainment to drive merchandise sales.

The world’s biggest online retailer launched Amazon Studios in 2010 to develop original programs that have since grabbed awards and Hollywood buzz.

“When we win a Golden Globe, it helps us sell more shoes,” Bezos said at a 2016 technology conference near Los Angeles. He said film and TV customers renew their subscriptions “at higher rates, and they convert from free trials at higher rates” than members who do not stream videos on Prime.

​$5 billion in video

Video has grown to be one of Amazon’s biggest expenditures at $5 billion per year for original and licensed content, two people familiar with the matter said. The company has never disclosed how many subscribers it won as a result, making it hard for investors to evaluate its programming decisions.

The internal documents show what Amazon considers to be the financial logic of its strategy, and why the company is now making more commercial projects in addition to shows aimed at winning awards, the people said.

For example, the first season of the popular drama The Man in the High Castle, an alternate history depicting Germany as the victor of World War II, had 8 million U.S. viewers as of early 2017, according to the documents. The program cost $72 million in production and marketing and attracted 1.15 million new subscribers worldwide based on Amazon’s accounting, the documents showed.

Amazon calculated that the show drew new Prime members at an average cost of $63 per subscriber.

That is far less than the $99 that subscribers pay in the United States for Prime; the company charges similar fees abroad. Prime members also buy more goods from Amazon than non-members, Bezos has said, further boosting profit.

Amazon’s secret math

Precisely how Amazon determines a customer’s motivation for joining its Prime club is not clear from the documents viewed by Reuters.

But a person familiar with its strategy said the company credits a specific show for luring someone to start or extend a Prime subscription if that program is the first one a customer streams after signing up. That metric, referenced throughout the documents, is known as a “first stream.”

The company then calculates how expensive the viewer was to acquire by dividing the show’s costs by the number of first streams it had. The lower that figure, the better.

The internal documents do not show how long subscribers stayed with Prime, nor do they indicate how much shopping they do on Amazon. The company reviews other metrics for its programs as well. Consequently, the documents do not provide enough information to determine the overall profitability of Amazon’s Hollywood endeavor.

Still, the numbers indicate that broad-interest shows can lure Prime members cheaply by Amazon’s calculations. One big winner was the motoring series The Grand Tour, which stars the former presenters of BBC’s Top Gear. The show had more than 1.5 million first streams from Prime members worldwide, at a cost of $49 per subscriber in its first season.

The documents seen by Reuters reflect Prime subscribers in the United States, United Kingdom, Germany, Austria and Japan, where Amazon’s programs were available before Prime Video rolled out globally in December 2016.

Analysts estimate that 75 million or more customers have Prime subscriptions worldwide, including about half of all households in the United States.

Bigger bets

About 26 million U.S. Prime members watched television and movies on Amazon as of early 2017. Reuters calculated this number from the documents, which showed how many viewers a TV series had as a percentage of total Prime Video customers.

Rival Netflix Inc had twice that many U.S. subscribers in the first quarter of last year. It does not disclose how many were active viewers.

For years, Amazon Studios aimed to win credibility in Hollywood with sophisticated shows beloved by critics. Its marquee series Transparent, about a transgender father and his family, won eight Primetime Emmy Awards and created the buzz Amazon wanted to attract top producers and actors.

Yet Transparent lagged Amazon’s top shows in viewership.

Its first season drew a U.S. audience half as large as that of The Man in the High Castle, and it fell to 1.3 million viewers for its third season, according to the documents.

Similarly, Good Girls Revolt, a critically acclaimed show about gender inequality in a New York newsroom, had total U.S. viewership of 1.6 million but cost $81 million, with only 52,000 first streams worldwide by Prime members.

The program’s cost per new customer was about $1,560, according to the documents. Amazon canceled it after one season.

Amazon is now working on more commercial dramas and spin-offs with appeal outside the United States, where Prime membership has far more room to grow, people familiar with the matter said.

The effort to broaden Amazon’s lineup, long in the works, will be in the hands of Jennifer Salke, NBC Entertainment’s president whom Amazon hired last month as its studio chief.

Amazon’s Bezos has wanted a drama to rival HBO’s global hit Game of Thrones, according to the people.

In November, Amazon announced it will make a prequel to the fantasy hit The Lord of the Rings. The company had offered $250 million for the rights alone; production and marketing could raise costs to $500 million or more for two seasons, one of the people said.

At half a billion dollars, the prequel would cost triple what Amazon paid for The Man in the High Castle seasons one and two, the documents show. That means it would need to draw three times the number of Prime members as The Man in the High Castle for an equal payoff.

Senate Passes Bill That Eases Bank Reform Rules

The U.S. Senate voted 67 to 31 Wednesday to ease bank rules, bringing Congress a step closer to passing the first rewrite of the Dodd-Frank reform law enacted after the 2007-2009 global financial crisis.

The draft legislation now heads to the U.S. House of Representatives where Republicans in the majority say they want to add more provisions to ease financial regulations. Those changes have some of the bill’s backers worried that late alterations could upend the deal struck in the Senate between Republicans and Democrats.

The bill would ease tight restrictions on small banks and community lenders, and includes provisions beneficial to all but the largest U.S. banks.

The measure marks the first significant rewrite of financial rules since the passage of the 2010 Dodd-Frank financial reform law. The White House said in a statement that President Donald Trump would sign the bill into law if approved by the House.

GOP: Dodd-Frank too much

Republican critics say Dodd-Frank went too far and curbs banks ability to lend, while many Democrats say it provides critical protections for consumers and taxpayers.

The bill would raise the threshold at which banks are considered systemically risky and subject to stricter oversight from $50 billion to $250 billion. It also exempts banks with less than $10 billion in assets from rules banning proprietary trading, as well as exempts smaller banks from several other post-crisis rules.

The bill would allow custody banks such as BNY Mellon and State Street Corp to exempt the customer deposits they place with central banks from a stringent capital calculation requirement.

In House, 30 bills

In the House, conservative Republicans say they want to expand the bill to include additional regulatory relief, identifying roughly 30 bills they have passed for inclusion. But that insistence has some of the bill’s supporters concerned it could disrupt the bipartisan support it needs to become law.

“To expect that the House would have a desire to have some fingerprints on this final product is more than reasonable,” said Representative Bill Huizenga, a Michigan Republican, who wants additions to the bill.

Any changes made in the House would again have to pass the Senate, and Republican additions could drive away Senate Democrats whose support is needed for passage.

“There’s no guarantee that a modified bill would be able to pass the Senate,” said Paul Merski, executive vice president with the Independent Community Bankers of America, which supports the Senate bill. “That’s a real danger.”

Slovenian Prime Minister Resigns

Slovenia Prime Minister Miro Cerar resigned late Wednesday over a Supreme Court decision nullifying a referendum in favor of a major railroad project.

“This was the straw that broke the camel’s back,” Cerar said in his resignation note to parliament. “The second track project has been hit by another blow taken by those who want to stop Slovenia’s positive development. I don’t want to be part of such stories.”

He plans to submit his resignation to President Borut Pahor Thursday.

Voters in September approved the $1.2 billion project to extend a key rail line from an Adriatic port to the Italian border.

But the Slovenian Supreme Court ordered a new vote, saying the government unfairly influenced voters to approve the project.

Cerar said the rail line would be of “strategic importance for the development of Slovenia.”

Cerar says his center-left coalition is leaving the country in much better economic shape than it was when it took power in 2014.

Parliamentary elections are set for June, but Cerar’s resignation may move them up. 

Putin Hails Crimea Annexation in Speech Ahead of Vote

Russian President Vladimir Putin on Wednesday thanked residents of Crimea for voting to annex the peninsula from Ukraine in 2014, calling the move “real democracy” in a speech days ahead of Sunday’s presidential election.

“With your decision you restored historical justice,” he told the crowd of supporters in Sevastopol, home to the Black Sea Fleet’s base.

“With your decision, you showed the whole world what is real, rather than sham, democracy. You came to the referendum and made a decision. You voted for your future and future of your children,” Putin said.

In a rallying call, he said there were still things to improve in Crimea, but “we will definitely do everything, because when we are together, we are a huge force that can resolve the most difficult problems.”

Putin is running for a historic fourth term in a poll all but guaranteed to hand him another mandate.

His visit to Crimea also included a stop at the construction site of a massive bridge linking the peninsula to Russia and a look at a new airport terminal.

Police said about 40,000 people attended Putin’s short speech, having to wait first for several hours to listen to patriotic songs.

An AFP correspondent at the scene put the crowd at nearer 20,000.

Putin’s stop at Sevastopol’s main Nakhimov square was seen as his last campaign event before the country votes.

Foreign condemnation

The annexation of Crimea in March 2014 was slammed by the international community and led to sanctions against Moscow but is celebrated by most Russians and resulted in a major boost of Putin’s popularity at the time.

After Putin’s speech, the U.S. State Department reacted with a statement titled starkly: “Crimea is Ukraine.”

“In his campaign rally in Crimea today, President Putin reiterated Russia’s false claims to Ukrainian territory in another open admission that the Russian government disdains the international order and disrespects the territorial integrity of sovereign nations,” spokeswoman Heather Nauert said.

Russian authorities scheduled the election for March 18 to mark exactly four years since Putin signed a treaty with representatives from Crimea to make it a part of Russia.

Ahead of the vote, authorities are presenting the annexation as a major legacy of Putin’s current term, with Moscow’s Mayor Sergei Sobyanin warning recently that failing to endorse Putin on Sunday would amount to opposing the move.

Reports: Toys ‘R’ Us to Shut or Sell All US Stores

Toys ‘R’ US plans to sell or close all of its US stores, potentially hitting 33,000 jobs, U.S. media reported Wednesday.

The debt-plagued retailer, which filed for bankruptcy protection in September, told employees that the retailer planned to file liquidation papers ahead of a Thursday court hearing, The Wall Street Journal and The Washington Post reported.

“We’re putting a for sale sign on everything,” CEO David Brandon said on a conference call with staff, according to the Journal.

Company officials did not immediately reply for a request for comment.

Started in 1948 amid the postwar US economic boom, Toys ‘R’ US has 881 stores in U.S. territories and nearly 65,000 employees globally, according to the company’s most recent press release last month.

The New Jersey-based company was saddled with debt following a leveraged buyout in 2005 by a consortium that included the KKR Group and Bain Capital.

Much like other retailers, Toys ‘R’ Us has also been bruised by competition from Amazon and other online retailers.

A weak holiday shopping season weighed on the company’s efforts to reorganize, analysts said.

Neil Saunders, managing director of GlobalData Retail, blamed the company’s woes on poor leadership.

“As the competitive dynamics of the toy market intensified, management failed to respond and evolve. As such, the brand lost relevance, customers and ultimately sales,” Saunders said in a note Wednesday.

“The main tragedy of liquidation will be the extensive loss of jobs. In our view, those on the shop-floor have been badly let down by management and those doing financial deals.”

The company is exploring strategies for keeping the brand alive, including the sale of 200 U.S. stores that could be packaged with its Canadian business, CNBC and the Journal reported.

Brandon outlined this and other possibilities at the New Jersey meeting, CNBC reported. Brandon also told workers they have 60 more days of employment at the company.

In February, the company’s British business announced plans for an “orderly wind-down” of the company’s store portfolio. Toys ‘R’ Us employs 3,200 people at 100 stores in Britain.

 

Russia: Things Can’t Get Worse with New US Chief Diplomat

Russian President Vladimir Putin’s spokesman says relations with the U.S. can’t get any worse so he’s hoping for improvement under a new secretary of state.

 

Dmitry Peskov told reporters Wednesday that he’s not worried about relations getting worse after Rex Tillerson’s ouster, saying the relationship “can hardly go lower than the floor.”

 

He said he hopes for a “constructive and sober approach in joint relations” under Tillerson’s nominated replacement, CIA Director Mike Pompeo. “This hope will always remain.”

 

Relations between the U.S. and Russia have worsened in recent years over the conflicts in Ukraine and Syria and alleged Russian interference in the U.S. presidential campaign.

 

Trump unexpectedly fired Tillerson on Tuesday.  Pompeo faces Senate confirmation hearings where he is expected to be asked about his approach toward Russia.

 

 

Britain to Expell 23 Russian Diplomats Over Spy Poisoning

Saying the Kremlin mustn’t be allowed to get away with “gangsterism,” the British government has announced a raft of reprisals against Russia after Moscow shrugged off demands to explain how a deadly Soviet-era nerve agent came to be used in the English town of Salisbury to poison former Russian spy Sergei Skripal and his daughter, Yulia.

The retaliation likely to be announced Wednesday by Prime Minister Theresa May to the House of Commons amounts to the unleashing of an economic war against Russian President Vladimir Putin and his coterie of Kremlin officials and oligarchs, with asset freezes and seizures of property they own in London alongside visa bans against named Russian individuals.

The prime minister is pressing international allies to follow Britain’s example and turn the spotlight on the billions of dollars of Kremlin-tied assets around the world.

But officials say even British actions alone will cause some pain to Russians linked to the Kremlin, who, under the plans being drawn up, will have property and assets seized, if they cannot show their holdings come from ‘legitimate’ sources. British officials have powers under criminal finance legislation to start moving on Russian assets.

“The overall impact of what we are planning to do will have serious repercussions for Russia,” a senior British official told VOA.

Kremlin denies involvement

Kremlin officials deny Russia had anything to do with the poisoning of the Skripals, accusing the British of fanning the flames of Russophobia. May had given an ultimatum to the Kremlin to explain the poisoning; but, the deadline passed on Tuesday night with Russian Foreign Minister Sergey Lavrov saying there would be no official response until Britain had provided a sample of the toxin and pursued the investigation through the “proper channels” of the Organization for the Prohibition of Chemical Weapons. Russia and Britain are signatories to the organization.

In increasingly barbed and menacing exchanges between the British and Russians, reminiscent of the height of the Cold War, Kremlin officials have warned it is dangerous to threaten nuclear-armed Russia.

In the escalating confrontation, the Kremlin Wednesday warned that reprisals would be met with a firm Russian response.

“Moscow does not accept the groundless accusations or the language of ultimatums,” said Dmitry Peskov, Vladimir Putin’s spokesman. He added, “We hope that common sense prevails and that countries will think twice whether there is any evidence or not and how justified any accusations against Russia are …Any unlawful British actions,” he adds “will result in a Russian response.”

Pressure to act

Political and public pressure on Theresa May to retaliate for the March 4 poisoning of Skripal, a former Russian military officer who was recruited by MI6 and exchanged in a spy swap in 2010, and his 33-year-old daughter, hasn’t let up. If anything, it has grown in intensity.

Further impetus for reprisals came Tuesday when British police said they had opened an investigation into the “unexplained” death on Monday of Putin critic Nikolai Glushkov, a former adviser to Boris Berezovsky, the deceased Russian oligarch and fierce Putin rival.  Glushkov, who the Kremlin had demanded be extradited to Moscow, was found dead at his London home just eight days after the poisoning of the Skripals.

Media reports in London suggest he may have been strangled.

Public anger toward Russia has also increased amid warnings that hundreds of people in the town of Salisbury are in danger from the nerve agent, Novichok, that was used to poison the Skripals. A former Russian scientist who helped develop the nerve agent in Soviet-era chemical warfare laboratories says people who may have been exposed to even small amounts of the military-grade toxin will face health risks for the rest of their lives.

Describing Novichok as “very nasty stuff,” scientist Vil Mirzayanov, a chemist who ran the technical counter-intelligence department in Russia’s chemical weapons institute, told Britain’s Sky News it was developed as a “weapon of mass murder.”

Speaking from his home in Princeton, New Jersey, Mirzayanov said, ”It’s the same as nerve gas but 10 times, at least 10 times, more powerful.” He said the agent was designed to wreck the human body and do “irreparable” damage, saying the Skripals would be left as “invalids.”

Mirzayanov also said serious long-term health risks remain for hundreds of Salisbury residents who may have been exposed to trace contamination because of their proximity as the attack unfolded, or who brushed past the Skripals in a pub and a restaurant they visited.  Asked about the advice given by British public health officials, including washing clothes and wiping down possessions, he said, “Sure, it’s useful, but not enough, absolutely not.”

Low public risk

British health officials say “the risk to the general public is low.” But their comments aren’t reassuring, say locals, who are seeing increasing numbers of police and army specialists clothed in protective suits deployed in the town of 40,000. Locals complain that the government hasn’t been quick enough to understand the wider dangers.

The Skripals remain hospitalized in critical condition. Meanwhile, a police officer is out of immediate danger and talking, but colleagues say he remains highly anxious. A fourth person has been treated as an outpatient in recent days.

 

 

NATO’s Global Engagement Grows To Face North Korea’s Nuclear Ambitions

As its name implies, the North Atlantic Treaty Organization has its roots in Europe and North America. But as the alliance faces new global threats, it has begun to broaden its horizons. VOA’s Jela de Franceschi takes a closer look at how North Korea’s missile and nuclear build-up has led NATO to boost its engagement in the Asia-Pacific region.

For Poor Venezuelans, a Box of Food May Sway Vote for Maduro

A bag of rice on a hungry family’s kitchen table could be the key to Nicolas Maduro retaining the support of poor Venezuelans in May’s presidential election.

For millions of Venezuelans suffering an unprecedented economic crisis, a monthly handout of a box of heavily-subsidized basic food supplies by Maduro’s unpopular government has offered a tenuous lifeline in their once-prosperous OPEC nation.

The 55-year-old successor to Hugo Chavez introduced the so-called CLAP boxes in 2016 in a signature policy of his rule, continuing the socialist government’s strategy of seeking public support with cash bonuses and other giveaways.

Now, running for re-election on May 20, Maduro says the CLAPs are his “most powerful weapon” to combat an “economic war” being waged by Washington, which brands him a “dictator” and has imposed sanctions.

Mariana, a single mother who lives in the poor hillside neighborhood of Petare in the capital Caracas, says the handouts will decide her vote.

“I and other women I know are going to vote for Maduro because he’s promising to keep giving CLAPs, which at least help fix some problems,” said the 30-year-old cook, who asked not to give her surname for fear of losing the benefit.

“When you earn minimum wage, which doesn’t cover exorbitant prices, the box helps.”

Maduro’s rule since 2013 has coincided with a deep recession caused by a plunge in global oil prices and failed state-led economic policies.

Yet the worse the economy gets, the more dependent some poor Venezuelans become on the state.

Life in the South American country’s poor ‘barrios’ revolves around the CLAP boxes. According to the government, six million families receive the benefit, from a population of around 30 million people.

Venezuelans, many of whom are undernourished, anxiously wait for their monthly delivery, and a thriving black market has sprung up to sell CLAP products.

The government sources almost all the CLAP goods from abroad, especially from Mexico, since Venezuela’s food production has shriveled and currency controls restrict private imports.

Critics, including Maduro’s main challenger for the May 20 vote, Henri Falcon, say the CLAPs are a cynical form of political patronage and are rife with corruption.

Erratic supply and control of distribution by government-affiliated groups have sown resentment among others.

“I can’t count on it. Sometimes it comes, sometimes not,” said Viviana Colmenares, 24, an unemployed mother of six struggling to get by in Petare.

“Instrument of the Revolution”

Stamped with the faces of Maduro and Chavez, the CLAP boxes usually contain rice, pasta, grains, cooking oil, powdered milk, canned tuna and other basic goods. Recipients pay 25,000 bolivars per box, or about $0.12 at the black market rate.

That is a godsend in a country where the minimum monthly wage is less than $2 at that rate – and would be swallowed up by two boxes of eggs or a small tin of powdered milk.

Inflation, at more than 4,000 percent annually according to opposition data, is pulverizing household income.

The administration of the CLAP — the Local Supply and Production Committees — does not hide its political motivation.

“The CLAPs are here to stay. They are an instrument of the revolution,” said Freddy Bernal, CLAP chief administrator.

“It has helped us stop a social explosion and enabled us to win elections and to keep winning them,” he told Reuters, referring to government victories in 2017 local polls.

Sometimes, though, the tactic backfires, as it did when promised free pork failed to arrive over Christmas, prompting street protests.

Maduro’s inability to halt rising hunger has jarred with the experience of many under Chavez, who won the presidency in 1998 and improved Venezuela’s social indicators with oil-fueled welfare policies.

Even though Maduro’s approval rating is only around 26 percent, according to one recent poll, his re-election looks likely as Venezuela’s opposition coalition is boycotting the vote on accusations it is rigged.

His most popular rivals are banned from standing and the election board favors the government.

Former state governor Falcon has broken with the coalition to stand. One survey by pollster Datanalisis in February showed that in a two-way race, he would defeat Maduro by 45.8 percent to 32.2 percent of likely voters.

Falcon’s critics counter that those numbers mean nothing in the face of electoral irregularities that could arbitrarily tip the balance in favor of Maduro.

Several other minor figures have registered for the single-round election, but have little chance of making an impact.

‘Can’t Depend on the Box’

Juan Luis Hernandez, a food specialist at the Central University of Venezuela, estimates the country generates just 44 percent of the basic food supplies it produced in 2008.

Meanwhile, food imports fell 67 percent between the start of 2016 and the end of 2017 as the crisis bit, he said.

Almost two-thirds of Venezuelans surveyed in a university study published in February said they had lost on average 11 kilograms (24 lbs) in body weight last year. Eighty-seven percent were assessed to live in poverty.

The same study found that seven out of 10 Venezuelans had received CLAPs.

“They (the government) don’t care about the food issue, just about getting people something to eat while they get through the elections,” said Susana Raffalli, a consultant with charity Caritas.

Some Venezuelans fear they would be found out should they vote against Maduro and be punished by no longer receiving food bags.

Already handouts are far from guaranteed.

A dozen recipients told Reuters that often they arrived half-full and would only come every few months. Outside of the capital Caracas, delivery was even more sporadic.

“I can’t depend on the box, otherwise I would die from hunger,” said Yuni Perez, a 48-year-old rubbish collector and mother of three.

Perez, who lives in a ramshackle house made from breeze blocks and corrugated steel at the top of Petare, said a CLAP box provided her family with food for a week. Often they would receive one every two months.

When her family is short of food, she hunts for leftovers dumped on the side of Petare’s winding streets. She said she had found several newborn babies discarded in the gutter, which she attributed to mothers unable to face providing food for another child.

Another Petare resident, mother-of-three Yaneidy Guzman said she dropped from 68kg to 48kg last year, despite receiving the CLAP.

“At least for 10 days you don’t have to think about finding food,” the 32-year-old said of the handouts, her cheekbones protruding from her face.

Growing Food at -30, The Chef on an Arctic Self-sufficiency Mission

In one of the planet’s most northerly settlements, in a tiny Arctic town of about 2,000 people, Benjamin Vidmar’s domed greenhouse stands out like an alien structure in the snow-cloaked landscape.

This is where in summer the American chef grows tomatoes, onions, chilies and other vegetables, taking advantage of the season’s 24 hours of daily sunlight.

During winter’s four months of darkness, when temperatures can reach -30 Celsius (-22°F), Vidmar tends to microgreens – the leaves and shoots of young salad plants – and dozens of quails in two rooms beneath his home.

He is the sole supplier of locally-grown food in the Norwegian town of Longyearbyen in the Svalbard archipelago. The North Pole is about 1,050 kilometers (650 miles) to the north; mainland Norway is about as far south.

Growing food in such conditions can be “mission impossible” but it is necessary, Vidmar told the Thomson Reuters Foundation.

He hopes to set an example for other remote towns in the region.

“We are so dependent on imports. Everything is by boat and plane,” said Vidmar, who comes from Cleveland, Ohio, and who has lived here for nearly a decade.

That makes the town vulnerable, he said. In 2010, stores in Longyearbyen stood empty after an Icelandic volcano erupted, bringing air transport to a halt. And the cost of imported food and its quality “is often disappointing.”

His company, Polar Permaculture, aims to produce enough food for the town and process all its organic and biological waste.

It sounds ambitious, but the firm, which received support from a government-funded body that helps startups, broke even last year, just two years in.

It was helped by the fact that he and his teenage son do not draw salaries, and Vidmar still cooks full-time at a school.

‘Crazy’ to Try

Vidmar’s produce now appears on many of Longyearbyen’s menus, including at Huset restaurant where intricate, multi-course Nordic tasting menus are served in stately surroundings.

Alongside reindeer steak and tartare of bearded seal is a delicate dish of quail egg with dill, red onions and anchovies on flatbread.

“We would not use quail eggs unless they were local so we designed a dish as soon as we got the opportunity to try them,” said Filip Gemzell, Huset’s head chef.

Vidmar first stepped foot in Svalbard in 2007 while working as a chef on a cruise ship. One of his first thoughts was, “How can people live here?,” but he was also intrigued.

“The sad part (in America) is you work so hard and you still have to worry about money. Then you come here and you have all this nature. No distraction, no huge shopping centers, no billboards saying, ‘buy, buy, buy.'”

A year later, he moved to the island and started working at restaurants and bars in Longyearbyen, a coal mining town turned tourist-and-research attraction.

He decided to grow his own food after becoming frustrated with the absence of fresh produce and the fact that a lack of treatment sites meant organic waste was dumped into the sea.

People thought he was “crazy” trying to grow food in the Arctic.

Initially he experimented with hydroponics – farming in water instead of soil – but that meant using fertilizer, which comes from the mainland. Eventually the city authorities gave him permission to bring in worms from Florida to do the job.

Now, whenever he or his son deliver a tray of microgreens to restaurants, they collect the previous tray and feed the soil to the worms, which break it down to produce natural fertilizer for bigger plants.

His next aim is to heat the greenhouse during winter using a biodigester – which generates energy from organic material – so he can use it all-year-round.

Sustainability

Vidmar also helps fourth- and ninth-grade students at Longyearbyen school to learn farming and sustainability. That has led older students to query the island’s supply chain, said teacher Lisa Dymbe Djonne.

“They question the transportation of food from the mainland to here and how expensive that is,” she told the Thomson Reuters Foundation by phone.

“They’re going to interview some of the leaders … to figure out how much it costs for the island and if it is possible to grow our own food,” she added. “It’s a question a lot of people up here have.”

Eivind Uleberg, a scientist at the Norwegian Institute for Bioeconomy Research in Tromso in northern Norway, said that fitted a pattern of rising interest in locally produced food and sustainability in agriculture.

In a phone interview, Uleberg said that, although he was unaware of Vidmar’s undertaking, efforts to produce food locally in Norway were positive.

A short growing season and low temperatures are the main barriers to producing food in such latitudes, he said, but higher temperatures caused by climate change could help.

“There is definitely the potential to produce more vegetables and berries,” he said.

But there are also challenges, Uleberg added, including more rain in the autumn during harvest, and changing conditions in winter that could kill grasses crucial for animal feed.

For Vidmar, such obstacles and the unique conditions are the reason he is determined to produce “the freshest food possible.”

“We’re on a mission … to make this town very sustainable. Because if we can do it here, then what’s everybody else’s excuse?”

Can Pop-Ups Pave the Way to Thriving Public Space in World’s Cities?

On a patch of gravel that was once a nondescript bus stop in Kuala Lumpur’s old city, passersby can now find brightly-painted wooden pallets that double as seating and shelves stocked with free books for the taking. At least, for the time being.

The transformation is temporary, a monthlong demonstration to judge the public’s reaction to the idea of turning a slice of the sprawling Malaysian capital no bigger than a small hotel room into a permanent public space.

This try-it-before-you-buy-it approach is known as a pop-up.

Pop-ups have become popular in many cities, often the brainchild of local residents in an effort to improve their neighborhoods or turn derelict spaces into community hubs.

They include cycling activists who paint bike lanes without government approval to push for safer streets, retailers who launch temporary shops in repurposed shipping containers to revitalize flagging high streets or food trucks gathered in empty parking lots.

“We’ve found by working with cities sometimes they are a little bit wary about having to put a lot of investment into public spaces,” said Cecilia Anderson, who leads the public space program at UN-Habitat, the U.N.’s lead agency on urban issues.

“Sometimes it helps to do a small pop-up public space just to showcase on a temporary level what kinds of benefits it has for the city, the citizens, and that neighborhood.”

Public space has been shrinking in the world’s fast-growing cities, where almost 70 percent of the population is expected to live by 2050, compared to just over half today, according to U.N. estimates.

Experts say, however, it should be a paramount goal for city leaders as research shows inadequate, poorly designed or privatized public spaces generate exclusion and marginalization.

“Public space is really the backbone or the skeleton of the city,” Anderson told Reuters.

Highlighting its importance for social inclusion and well-being, public space was included as a target in the U.N. Sustainable Development Goals, with the aim to provide universal access to “safe, inclusive and accessible, green and public spaces” by 2030.

‘Ultimate irony’

In Kuala Lumpur’s bustling historic center, local urban regeneration agency Think City installed a pop-up plaza along Petaling Street and three small green spaces, known as parklets.

They form a cluster of benches, plants, and overhead canvas for shade taking up the size of a parking spot along the busy street, as well as a mock microhousing unit in an existing park.

It also spruced up a laneway next to the agency’s headquarters with a mural and a chalkboard inviting ideas on how else to improve the neglected alley.

For Think City director Neil Khor, the pop-ups are an attempt to reignite flagging interest in public space among residents in the city of 6.5 million people.

“This is the ultimate irony — when I was growing up, we had more public space,” said Khor, whose organization works on community-based urban regeneration.

“Some time in the 1980s, we had this mall culture from the United States. Suddenly the public space is exactly inside the mall.”

What people want

While Kuala Lumpur’s extravagant malls never seem to lack for visitors, the pop-ups garnered mixed reviews, if they were noticed at all.

On two recent visits to the temporary public spaces, some of the parklets were empty, though one equipped with mobile phone chargers proved popular with a quartet of teenagers.

A parklet adorned with a chessboard sat vacant while next door, Bangladeshi migrants conducted a vibrant trade in fruits and vegetables on the sidewalk, their produce truck blocking a freshly painted bike lane.

The plaza bedecked with bookshelves drew several curious onlookers, who were invited to leave comments on what they would like to see in the space, and whether it should be made permanent.

Visitors asked for more seating, a drinking fountain, shade and a playground for children. Most respondents declared their enthusiasm for a permanent plaza.

“It’s wonderful, it looks good, it makes the place beautiful and lively. No complaints,” said paralegal John Ng, who stopped by after work.

“There should be more public spaces instead of tall buildings and cars,” he said, standing in the middle of the plaza.

Retiree Emily Tan, taking a break from a shopping trip in Chinatown, preferred to sit on permanent benches next to the pop-up and take in the view.

“This one they should develop as a park,” she said. “More plants, flowers, and let people sit down.”

Universal design

While officially-sanctioned pop-up public spaces can be found in cities around the world, the trend started in the developed world.

A San Francisco design firm invented the parklet, and New York City became a model for carving out small plazas from unused odds and ends on the city’s streets.

“These temporary approaches in the global north were meant to bring informality to cities that didn’t have them,” said Ethan Kent from New York-based non-profit Project for Public Spaces. “These were solutions meant to bring back that life to the streets.”

But as the concept and the designs that go with them have become universal, critics question whether pop-ups can work just everywhere.

“On the one hand, it looks like a free street library, where you’re encouraged to take a book you like,” said Emily Silverman, a professor at Hebrew University in Jerusalem.

“But the black base, cheerful colors, and especially the position in the middle of a street during an international conference, signal ‘don’t touch,'” said Silverman, referring to the World Urban Forum in Kuala Lumpur last month.

She said in Jerusalem, free street libraries worked well in secular and middle-class professional areas, but they got vandalized in ultra-Orthodox areas, for fear they would help distribute otherwise forbidden books.

“The [pop-up’s] lure of ‘lighter, quicker, cheaper’ can encourage artificial importing, ignoring local context to just get stuff done,” she said.

Khor defended the overall initiative in Kuala Lumpur as a valuable social experiment.

He noted an impromptu badminton game in the alleyway, chess matches between migrants in the parklet, a tea shop that regularly waters the plants in the parklet, and crowds eager to explore a micro-housing prototype.

“I’m not saying these projects are perfect,” he said. “We wanted to show that urban regeneration is a process.”

Turkish Forces Surround Key Syrian Kurdish City

Turkish led forces are claiming to have surrounded the city of Afrin, home to several thousand people in northwestern Syria, and the main target of Turkey’s Operation Olive Branch.  

The military incursion launched in January seeks to oust the YPG Syrian Kurdish militia considered by Ankara as terrorists linked to a decades long insurgency inside Turkey.

Ankara has warned an operation to capture the city is imminent, “Hopefully Afrin’s center will soon be cleared of terrorists and the local community will be saved from the cruelty and oppression of the terrorists,” declared deputy Prime Minister Bekir Bozdag on Monday.

The prospect of a major offensive on Afrin, which is reportedly packed with civilians, many of whom fled fighting from other parts of Syria, is likely to cause international concern.  Ankara insists it is taking all steps to insure the safety of civilians.  Deputy Prime Minister Bozdag has claimed not a single civilian has been killed or even wounded since the launch of the Turkish operation.

Turkish led forces backed by air support have made swift advances and suffered only relatively light casualties since January.  But analysts suggest the YPG is likely to have withdrawn most of their forces to defend Afrin, where much of the Turkish military’s superiority would be nullified.

Urban warfare

“Under normal combat conditions an ordinary army unit would never enter into an urban environment,” points out Ret. Turkish Brigadier Haldun Solmazturk, a veteran of counter insurgency operations against Kurdish rebels, “It would move to isolate and move on.  In an urban environment you lose all the advantages.”

The prospect of Turkish forces widening their control of a large swath of Syrian territory could yet lead to Damascus intervening, “They (YPG) might agree to inviting the Syrian army back into Afrin and keep the Turkish armed forces in a crescent around Afrin, but with the Syrian army in Afrin City,” suggests former senior Turkish diplomat Aydin Selcen, who served widely in the region, “… such a deal, Damascus could either disarm the YPG or facilitate their removal from the region.”

Reportedly Syrian forces have started to build up on the Afrin enclave border.  But the YPG has declared it will not surrender and is prepared to resist attempts to capture the city.

With Ankara’s operation in Afrin in its final stage, attention is now moving toward its second declared second phase.  Turkish President Recep Tayyip Erdogan has warned Turkish forces that after capturing Afrin they will target YPG forces in Manbij.  U.S. forces are deployed in the Syrian City with the Kurdish militia, which is a key ally in Washington’s war against the Islamic State.

Turkish and U.S. officials are currently engaged in diplomatic efforts to avert a clash over Manbij.  Turkish Foreign Minister Mevlut Cavusolgu said Tuesday the two sides will reach an agreement when he attends talks next week in Washington.

“Manbij, my sense the Americans will find a formula that Turkey will go to Manbij and the PYD (political wing of the YPG) won’t be there, within a few months,” predicts international relaxants expert Soli Ozel of Istanbul’s Kadir Has University,  “and I think that will be enough for Ankara because this is an easy thing to declare victory.”

Turkish politics

But Erdogan has declared the wider goal of Turkey’s offensive is to remove the YPG presence form the whole of Turkey’s southern border.  Analysts point out the military operation is also being driven by powerful domestic considerations.  Turkey’s pro government media are claiming since the launch of the Syrian offensive,  support has surged for Erdogan, who faces re-election next year.

“Turkish foreign policy making has become so much dependant on domestic political concerns,” points out, analyst Sinan Ulgen a visiting scholar of the Brussels based Carnegie Europe.  Ankara has also announced that in May it will launch a military operation in cooperation with Baghdad into Iraqi Sinjar region against PKK bases.  The PKK has been fighting a decades long insurgency in Turkey for greater Kurdish rights.

“That Turkey wants to take on the PKK in Sinjar with the cooperation with administration in Baghdad, I have no doubt,” claims international relations expert Ozel, “I have a sense the Iranians would not look favorably at such a thing.  I think the Iranians are rather annoyed by what Turkey is already doing.”

Turkey  and Iran are historical regional rivals and analysts warn the growing military presence of Turkish forces in countries Tehran considers under its hegemony is likely to cause alarm.  “Looking at realities on the ground and the position of different actors, Turkey would be naive to think that Turkey would be able to accomplish all these objectives,” suggest analyst Ulgen, “the limits of the (Turkish) operation will depend on the reaction on other actors who stake holders in the region.”

Trump Stops Short of Blaming Russia Over Former Spy Poisoning

U.S. President Donald Trump acknowledged Tuesday British evidence that the Russians may have been behind the poisoning of a former Russian spy and his daughter in England, but he stopped short of blaming Moscow “until we get the facts straight.”

“It sounds to me like it would be Russia based on all the evidence they have,” Trump told reporters outside the White House.

Trump said he would speak Tuesday with British Prime Minister Theresa May about the attack in southern England on Sergei Skripal and his daughter, Yulia.

“I don’t know if they’ve come to a conclusion, but she’s calling me today,” Trump added.

Britain gave Russia by the end of Tuesday to explain how the nerve agent developed by the Soviet Union was used to poison Skripal, a former Russian double agent who gave secrets to British intelligence officials. If Russia does not comply with the request, May said Britain would take “extensive” retaliatory action.

Russian Foreign Minister Sergey Lavrov insisted Tuesday Moscow was “not to blame” and would only cooperate with a British investigation if it gets samples of the nerve agent that is believed to have been used. But Lavrov said requests for the samples had been rejected, which he said violates the Chemical Weapons Convention. The convention prohibits the production of chemical weapons.

Prime Minister May said it was “highly likely” Russia was behind the attacks. The Skripals remain hospitalized in critical condition in their home city of Salisbury in southern England.

Specialist bio- and chemical weapons teams have been working around the clock at the site of the March 4 attack.

On Monday, May told lawmakers the substance used to poison the Skripals belonged to a group of military-grade nerve agents known as “Novichock.”

“Russia has previously produced this agent and would still be capable of doing so,” May said. “Russia’s record of conducting state-sponsored assassinations, and our assessment that Russia views some defectors as legitimate targets for assassinations, the government has concluded that it is highly likely that Russia was responsible for the act against Sergei and Yulia Skripal,” she said.

 “Either this was a direct act by the Russian state against our country, or the Russian government lost control of its potentially catastrophically damaging nerve agent, and allowed it to get into the hands of others,” May said.

“Should there be no credible response, we will conclude that this action amounts to an unlawful use of force by the Russian state against the United Kingdom.,” May said.

In a strongly worded statement released Monday by the State Department, former Secretary of State Rex Tillerson, who was fired by Trump on Tuesday, supported May’s assertion that Russia was behind the attack.

“There is never a justification for this type of attack — the attempted murder of a private citizen on the soil of a sovereign nation — and we are outraged that Russia appears to have again engaged in such behavior,” Tillerson said. “From Ukraine to Syria — and now the U.K. — Russia continues to be an irresponsible force of instability in the world, acting with open disregard for the sovereignty of other states and the life of their citizens.”

The statement continued: “We agree that those responsible — both those who committed the crime and those who ordered it — must face appropriately serious consequences. We stand in solidarity with our Allies in the United Kingdom and will continue to coordinate closely our responses.”

Expectations are growing for a tough response from May, said analyst Ian Bond, director of foreign affairs at the Center for European Reform.

“I think she’ll be under a lot of pressure to show that the U.K. takes this very seriously. And that’s partly because when she was home secretary, and indeed before that, the British reaction to the murder of (Russian defector) Alexander Litvinenko in London was seen as rather weak.”

Britain’s immediate response will likely be to expel some Russian embassy staff, said Bond.

“Getting rid of some identified intelligence officers in the Russian embassy. More importantly perhaps, we have a certain amount of financial leverage against those in [Russian President] Putin’s circle, who have property or other assets in the U.K.”

Other options being considered include boycotting the football World Cup in Russia this year and banning Kremlin state media, such as broadcaster Russia Today.

Investigators are still trying to track the places visited by Skripal and his daughter on the day of the attack. The policeman who was first on the scene is also critically ill.

Analysts say the confirmation that this was a chemical attack on British soil using a sophisticated nerve agent has increased expectations of a tough response.

Accountants to Face Higher EU Scrutiny on Aggressive Tax Planning

European Union finance ministers agreed new measures on Tuesday to force accountants and banks to report aggressive tax schemes that help companies shift profits to low-tax countries.

Ministers also added the Bahamas, the U.S. Virgin Islands and Saint Kitts and Nevis to a blacklist of tax havens, while Bahrain, the Marshall Islands and Saint Lucia were delisted, confirming earlier Reuters reports.

Under the rules, proposed by the European Commission in June, accountants, banks and lawyers would be required to inform authorities about “potentially aggressive tax planning arrangements” set up for their clients. The 28 EU states will also share information on harmful tax planning in a bid to discourage the most aggressive tax avoidance schemes.

“It is a new progress for tax justice in the European Union,” EU tax commissioner Pierre Moscovici told ministers after they agreed the overhaul.

Once the new rules are finalized and approved by the European Parliament, tax advisers in the EU will risk fines if they do not report potentially harmful cross-border tax schemes.

Penalties should be “effective, proportionate and dissuasive” but EU states will maintain discretion in setting sanctions or fines at national level.

If there is no intermediary, or the tax adviser is located outside the EU, the company or individual using the arrangement will be obliged to disclose it.

EU governments agreed on a compromise text put forward by the Bulgarian presidency of the EU, which slightly softened the Commission’s original proposal. Tax reforms require unanimity among the 28 member states.

Cross-border tax arrangements set up with jurisdictions that have a zero or “almost zero” corporate rate – such as the Channel Islands, Bahamas, Bahrain and the Cayman Islands – must be reported, despite initial opposition from some governments.

But ministers scrapped a requirement to report tax schemes with jurisdictions whose corporate rate is lower than 35 percent of the statutory average within the EU – which could have forced reporting for schemes involving countries with a tax rate

of around 7 percent.

Some states had argued such a requirement “would cause an administrative burden disproportionate to the objectives” of the new rules, a working document prepared by Bulgarian officials showed.

Smaller EU members like Luxembourg and Malta have in the past opposed stricter rules to prevent tax avoidance, fearing they could harm competitiveness. But their finance ministers gave the green light to the Bulgarian compromise. Some members, including Britain, Ireland and Portugal, have already introduced penalties at a national level for intermediaries helping set up aggressive tax schemes.

EU governments also added Anguilla, the British Virgin Islands, Dominica and Antigua and Barbuda to a “grey list,” which now includes 62 jurisdictions that do not respect EU anti-tax avoidance standards but have committed to change their practices.

Bulgarian Finance Minister Vladislav Goranov told a news conference after the meeting that commitments made by grey list countries will be made public, a move welcomed by anti-corruption groups because it will increase transparency.

Ministers agreed to move Bahrain, the Marshall Islands and Saint Lucia from the black to the grey list, after they committed to change their tax practices.

American Samoa, Guam, Namibia, Palau, Samoa, and Trinidad and Tobago were already on the blacklist set up in December.

Blacklisted jurisdictions could face reputational damage and stricter controls on their financial transactions with the EU, although no sanctions have been agreed by EU states yet.

 

Tillerson: Alleged Russia Attack on British Soil ‘Really Egregious Act’

U.S. Secretary of State Rex Tillerson is backing up British Prime Minister Theresa May’s assertion that Russia is behind the attack on a former Russian spy in England, saying it certainly “will trigger a response.”

“This is a really egregious act. It appears that it clearly came from Russia,” Tillerson said Monday en route to Cape Verde. 

Tillerson spoke with British Foreign Secretary Boris Johnson over the phone shortly after taking off from Nigeria. Tillerson wrapped up his five-nation trip to Africa on Monday.

May said it is clear that former Russian double agent Sergei Skripal and his daughter were poisoned with a military-grade nerve agent of a type developed by Russia. She added that  the action amounted to a use of chemical weaponry on British territory.

Russia refuted May’s allegation, saying it is another political campaign based on provocation.  

“There is never a justification for this type of attack — the attempted murder of a private citizen on the soil of a sovereign nation — and we are outraged that Russia appears to have again engaged in such behavior,” said Tillerson in a statement released by the State Department. “From Ukraine to Syria — and now the U.K. — Russia continues to be an irresponsible force of instability in the world, acting with open disregard for the sovereignty of other states and the life of their citizens.”

The statement continued: “We agree that those responsible — both those who committed the crime and those who ordered it — must face appropriately serious consequences. We stand in solidarity with our Allies in the United Kingdom and will continue to coordinate closely our responses.”

Tillerson told a small group of reporters, “It’s almost beyond comprehension that a state, an organized state, would do something like that.”

Trump Blocks Broadcom Takeover of Qualcomm

U.S. President Donald Trump is blocking Singapore-based Broadcom, maker of computer and smartphone chips, from taking over U.S. chipmaker Qualcomm.

Trump cited national security grounds in stopping the takeover, following the recommendation of the Committee on Foreign Investment in the United States (CFIUS). The committee reviews national security implications when foreign entities purchase U.S. corporations.

The president’s order said there is “credible evidence” that the takeover “might take action that threatens to impair the national security of the United States.”

Broadcom made an unsolicited bid last year to take over Qualcomm for $117 billion.

The company has been in the process of moving its legal headquarters from Singapore to the United States to help it win approval for the takeover.

Qualcomm, which is based in San Diego, has emerged as one of the biggest competitors to Chinese companies, such as Huawei Technologies, making it an attractive asset for potential buyers in the semiconductor industry.

Companies in the industry are racing against each other to develop 5G wireless technology to transmit data at faster speeds.

Eurozone to Unlock New Loans to Greece, Working on Debt Relief

Eurozone creditors are expected to disburse new loans to Greece this month and are working on debt relief measures, the head of the bloc’s finance ministers said on Monday, steps that should help underpin its economic recovery.

Greece’s 86-billion-euro bailout program, its third since 2010, is due to end in August and international lenders are debating how to ensure the country makes its exit on a sustainable footing.

Among options under consideration in Brussels are support measures that could run into tens of billions of euros and help ease servicing costs on a public debt pile that, in terms of economic output, is among the biggest in the world.

Greece’s economy expanded by 1.6 percent last year after emerging from a long recession. The European Commission forecast growth of 2.5 percent this year and next, but that rate could slow if reforms stall after strict monitoring by the lenders ceases.

The eurozone bailout fund is expected to pay out a 5.7 billion euro loan later in March, Eurogroup head Mario Centeno told a news conference following the finance ministers’ monthly meeting, after Greece met commitments under the third review of its rescue program.

To successfully exit the program, a fourth review of 88 reform actions must be completed before August. This would allow Greece to access other loans.

“I am confident Greece will implement all remaining deliverables to conclude the program successfully,” Centeno said.

They include new privatizations and reform of the gas and electricity markets, which he said were preconditions to granting Greece new debt relief.

Debt relief

Technical talks are already ongoing on one of the possible measures that would grant Greece additional debt relief after it benefited from extensions of its debt maturities and other short-term aid in past years.

Centeno said that work was under way on linking future eurozone debt relief to the rate of Greek economic growth, with the objective of granting support if growth slowed.

Other more substantial measures will be discussed at the next meeting of finance ministers next month, Centeno said.

Among possible measures are the use of funds that will remain unused after the bailout program ends on August 20.

This could be as mush as 27 billion euros, and could be used to buy out Greek debt falling due in the next five years and replace it with cheaper and longer-term loans from the eurozone bailout fund, the European Stability Mechanism (ESM).

Another option could involve the return of profits made by the European Central Bank on Greek bonds.

Both measures would come with conditions attached, mostly linked to the implementation of reforms already approved but that would take years to fully execute.

The debate on conditionality is still wide open. Greece could ask for a new credit line after its aid programme ends, but this is likely to be seen in the country as a new wave of austerity, triggering a political backlash.

Alternatives could entail enhanced supervision by EU institutions over Greek reforms after the bailout ends.

Without a financial safety net Greece could face market pressure that would increase debt servicing costs.

Greece is also building a cash buffer, which could reach 20 billion euros, to bolster a full return to debt markets and support sustainable growth.

Hungary Seeks Broader Anti-migrant Alliance After Austria, Italy Elections

Hungary aims to coordinate more closely on refugee policy with Austria and Italy after elections there boosted anti-migrant parties, broadening an alliance of EU states focused on internal security.

Foreign Minister Peter Szijjarto said on Monday that the approach to migration of the Vienna government and the center-right in Italy was very similar to the bloc’s central European member states.

“So it is obvious that we will work together in the future,” he told Reuters in an interview.

“This is not against the western part of Europe, this is against migration, and this is in favor of our interests because we put security first.”

A bitter row over migration policy sparked by the biggest influx of refugees into the European Union since World War II has undermined trust within the bloc and weakened its unity, with its eastern states refusing to sign up to a quota system favored by several richer members to the west and north.

In refusing to accept Muslim refugees, Hungary and its neighbours in the Visegrad group — the Czech Republic, Poland and Slovakia — have cited security concerns and the desire to preserve the traditional Christian make-up of their societies.

In Austria, Chancellor Sebastian Kurz formed a coalition with the Freedom Party following an election last year dominated by the issue of migration, making the country the only one in western Europe with a far-right grouping in government.

In Italy this month, the governing center-left Democratic Party lost out to anti-establishment and right-wing parties that campaigned hard against immigration in an election that delivered a hung parliament.

‘More efficient’ cooperation

Szijjarto said the Visegrad countries had no plans to enlarge that alliance, but this should not prevent closer ties with like-minded states.

“What we definitely would like to do is to have a closer and more efficient cooperation with Austria and of course hopefully with the upcoming Italian government,” he said.

Kurz said on Friday that Austria planned to use its presidency of the European Union this year to shift the bloc’s focus away from resettling refugees within the EU and towards preventing further waves of arrivals.

He also pledged closer cooperation with Hungary after meeting Prime Minister Viktor Orban at the end of January.

Orban has been one of the EU’s hardliners on migration and is campaigning on a fierce anti-immigration agenda ahead of Hungary’s own national election on April 8, when he will seek a third term in office.

Asked about a recent video in which Janos Lazar, the top aide to Orban, blamed immigrants for pushing out “white Christians” in a district of Vienna, Szijjarto said he did not think the comments were unfortunate. Facebook first removed the video then reversed its decision.

“It is an open issue in Austria that the number of Muslim kids to be enrolled in Vienna schools is approaching the number of the Austrian kids to be enrolled. That is an open debate …,” Szijjarto said.

The Social Democrats (SPO), who govern Vienna in coalition with the Greens, said Lazar’s comments were part of a “racist and xenophobic election strategy” by Orban’s Fidesz party ahead of elections.

Macedonia Reinforces Tolerance and Respect for History as it Remembers Holocaust

Thousands stood in silent respect in the southern Macedonian city of Bitola Sunday to remember the victims of the Nazi Holocaust of Jews during World War II.

Sunday was the 75th anniversary of the deportation of more than 7,100 Macedonian Jews to Nazi death camps in Poland.

“We will never forget the Holocaust. We will not allow for anti-Semitism, hate speech, intolerance, xenophobia or any other phenomena that represent the violation of human rights,” Talat Xhaferi, speaker of the Macedonian parliament, said.

Xhaferi said Macedonia will never allow history to be altered or denied. He pointed to Jewish property stolen by the Nazis and their cohorts were, by law, returned to their rightful owners.

He said the Holocaust memorial in downtown Skopje has a church on one side and a mosque on the other, a sign that all ethnic communities in Macedonia can live free and openly.

“We promote dialogue, tolerance and understanding for the settlement of global, regional and bilateral issues,” Xhaferi said.

German and Israeli visitors also joined Macedonians in a March for Life Sunday.

Macedonia was part of Yugoslavia when the Nazis and their allies occupied the region in 1941.

Backed by Soviet troops, they were driven out by Yugoslav partisans and Bulgarian forces who had been allied with the Germans before switching sides.

All but a handful of Macedonian Jews were slaughtered by the Nazis.

UK Health Officials: Public Risk ‘Low’ After Poisoning of Former Russian Spy

British health officials said Sunday that traces of a nerve agent used in the suspected attempted murder of a Russian spy in Britain were found in a pub and restaurant he visited, but that the risk to public health remains low.

Health officials said those who visited the Mill pub and Zizzi restaurant in Salisbury, southwest England on March 4 and March 5 should take “simple” precautions, including washing their clothes.

“While there is no immediate health risk to anyone who may have been in either of these locations, it is possible, but unlikely, that any of the substance which has come into contact with clothing or belongings could still be present in minute amounts and therefore contaminate your skin. Over time, repeated skin contact with contaminated items may pose a small risk to health,” a statement released by Public Health England read.

Hospital officials in Salisbury said there is no evidence of a wider attack on the town, aside from three people who have been hospitalized since the attack on former Russian spy Sergei Skripal and his daughter, Yulia, both of whom are hospitalized in critical condition.

Police have not publicly talked about the nerve agent that poisoned Skripal or who might have been responsible. But suspicions are pointing to Russia.

 

British Defense Secretary Gavin Williamson said Britain is being “pushed around” by the Kremlin.

Prime Minister Theresa May has promised an “appropriate” response if it is discovered that Russia is responsible for poisoning Skripal, but has urged caution.

 

Russian officials deny the Kremlin had anything to do with the assassination attempt.

 

Skripal served in Russia’s military intelligence agency, GRU, and was exchanged in a spy swap in 2010 on the runway at Vienna’s airport.

 

After serving four years imprisoned in Russia for spying for Britain’s espionage service, MI6, Skripal was one of four Russian double agents exchanged for 10 Russians expelled from the United States.

Britain’s Ruling Conservatives Under Pressure to Return Russian Donations

British Prime Minister Theresa May is under pressure to return millions of dollars given by Russian oligarchs and their lobbyists to her ruling Conservative party. One of the biggest donors is the wife of a former Russian deputy finance minister, once nicknamed “Putin’s banker.”

When May took office 18 months ago she promised that Britain’s Conservatives would “sup with a long spoon” and distance themselves from Russian donors, but electoral commission records analyzed by Britain’s Sunday Times newspaper show Russian-linked donations have continued.

Contributions have also been given to the Conservatives by British lobbyists and PR firms working for Russian oligarchs and even the Kremlin. New Century Media, a PR agency contracted by the Russian government to manage a marketing campaign in Britain to present a “positive image” of Russia, has donated more than $200,000 to Britain’s ruling party.

Opposition lawmakers called Sunday for the Conservatives to return the donations, arguing they raise doubts about the government’s determination to retaliate for what the country’s intelligence agencies believe was a Kremlin-approved attempt on March 4 to kill on British soil Sergei Skripal, a former Russian military intelligence officer who spied for the British, and his 33-year-old daughter.

British officials suspect the nerve agent used — likely either modified Sarin or VX — was developed near Moscow at the Yasenevo laboratory run by Russia’s intelligence service the FSB. Russian officials have dismissed the claims of FSB or Kremlin involvement in the assassination bid that has left father and daughter critically ill. They say the allegations are wild and hysterical, part of a Western campaign to demonize Russia.

The donations to the Conservatives “call into question how seriously Theresa May will be willing to challenge Russia’s conduct when her party is literally being bankrolled by some close allies of the Kremlin,” said Nia Griffith, the opposition Labour Party’s defense spokesperson.

In a statement, Britain’s Conservatives said, “All donations are properly and transparently declared to the Electoral Commission.”

The most generous Russian donors to the Tories include Lubov Chernukhin, wife of former Putin finance minister, Vladimir Chernukhin, who has given more than $600,000 to the Conservatives since 2010. She bid successfully at a party fundraising auction to play tennis with former Prime Minister David Cameron and Britain’s foreign secretary, Boris Johnson. Her bid was $200,000.

Conservative officials say that Chernukhin, now a British citizen, is not a “Putin crony”, arguing her husband fell out with Russian leader Vladimir Putin after being dismissed from his job running a state-owned bank.

On Monday, Britain’s National Security Council is due to meet to discuss the latest findings of the Skripal investigation and to consider what retaliatory measures to take against Russia.

Party insiders say Johnson and Defense Minister Gavin Williamson are expected to demand tough retaliation. Both privately have expressed frustration with Theresa May’s order to ministers not to rush judgment and to avoid pre-judging the investigation’s conclusions.

They will join Home Secretary Amber Rudd in calling for the introduction of a new law to target Russian officials. They want a British version of America’s so-called “Magnitsky Act,” a law passed by the U.S. Congress in 2012 that targets Russians deemed by Washington to be complicit in human rights abuses, including extra-judicial killings and torture. Specific sanctions would include visa bans and asset freezes.

Retaliation by Britain would almost certainly trigger a response by the Kremlin, say officials. When the U.S. Congress passed the Magnitsky Act, Russia banned American couples from adopting Russian children.

In an interview Saturday with VOA, Bill Browder, the American-born financier who was instrumental in persuading Congress to pass the Magnitsky Act, said he expected a major Russian-funded lobbying effort in Britain to try to persuade the British government not to retaliate. “You can bet that anyone who is making money off Russia is doing their best to keep things calm here in Britain and to stop a reaction,” he said.

Browder, who ran one of the most successful investment funds in Russia before his expulsion in 2005 when his business was expropriated, lobbied hard for U.S. sanctions to be introduced after his lawyer Sergei Magnitsky was arrested and died in Russian custody.

He worries the British will be limp in response to the attempted assassination, pointing out the cautious May has opposed past retaliation against Russia because of the risk of disruption to British business.

Browder says he has no doubt the Russian government was behind the assassination attempt on Skripal, dismissing suggestions it may have been a rogue operation. “No one would have the guts to go rogue. These operations are approved and planned by the Kremlin,” he says.

Britain does have a way of deterring the Kremlin, he argues. “Britain has gigantic leverage. All the Russians, members of Putin’s regime, come to London. They buy expensive property, they open bank accounts here, they send their kids to private schools, and so the easiest thing to do is seize their properties and ban their travel and that of their family members. That will immediately cause them never to do this again.”

 

Most Stores Shut in Poland As Sunday Trade Ban Takes Effect

A new Polish law banning almost all trade on Sundays has taken effect, with large supermarkets and most other retailers closed for the first time since liberal shopping laws were introduced in the 1990s after communism’s collapse.

The change is stirring up a range of emotions in a country where many feel workers are exploited under the liberal regulations of the past years and want workers to have a day of rest. But many Poles experience consumer freedom as one of the most tangible benefits of the free market era and resent the new limit.

 

In Hungary, another ex-communist country, a ban on Sunday trade imposed in 2015 was so unpopular that authorities repealed it the next year. But elsewhere in Europe, including Germany and Austria, people have long been accustomed to the day of commercial rest and appreciate the push it gives them to escape the compulsion to shop for quality time with family and friends.

The law was introduced by a leading trade union, Solidarity, which has argued that employees should have the chance to rest and spend time with their families. It found the support of the conservative and pro-Catholic ruling party, Law and Justice, whose lawmakers passed the legislation. The influential Catholic church, to which more than 90 percent of Poles belong, has also welcomed the change.

Among the Poles who see it as a good step toward returning a frazzled and overworked society to a more a more traditional lifestyle is 76-year-old Barbara Olszewska, who did some last-minute shopping Saturday evening in Warsaw.

She recalled growing up in the Polish countryside with a mother who was a full-time homemaker and a father who never worked on Sundays.

 

“A family should be together on Sundays,” Olszewska said after buying some food at a local Biedronka, a large discount supermarket chain.

 

Olszewska said that before she retired she sold cold cuts in a grocery store, and was grateful that she never had to work Sundays.

The new law at first bans trade two Sundays per month, but steps it up to three Sundays in 2019 and finally all Sundays in 2020, except for seven exceptions before the Easter and Christmas holidays.

Pro-business opposition parties view the change as an attack on commercial freedom and warn that it will lead to a loss of jobs, and in particular hurt students who only have time to work to fund their studies on the weekends.

Poles are among the hardest-working citizens in the European Union and some Poles complain that Sundays are sometimes the only days they have free time to shop. According to the Organization for Economic Co-operation and Development, only the Greeks put in longer working hours than Poles in the 28-member European Union. According to OECD statistics, the average Polish employee worked 1,928 hours in 2016.

 

Another last-minute shopper on Saturday evening, Daniel Wycech, 26, saw more drawbacks than benefits.

“It’s not really a problem to do more shopping a day ahead of time, but if something breaks in my kitchen or bathroom on a Sunday, there will be no way to go to the store and fix it,” said Wycech, an accountant loaded down with bottled water, bananas and other groceries.

 

“I am angry because this law wasn’t prepared properly. It would have been much better to force store employers to make two Sundays per month free for each worker,” Wycech added.

There are some exceptions to the ban. For instance, gas stations, cafes, ice cream parlors, pharmacies and some other businesses are allowed to keep operating Sundays. Stores at airports and train stations will also be allowed to be open, as will small mom-and-pop shops, but only on the condition that only the owners themselves work.

 

Anyone infringing the new rules faces a fine of up to 100,000 zlotys ($29,500), while repeat offenders may face a prison sentence.

Mateusz Kica, a 29-year-old tram driver in Warsaw, did his weekly shopping early Saturday to avoid the huge crowds he expected later in the day. He complained that the new law only relieves shop employees, but that workers like himself will still have to keep working weekends.

“This law isn’t really just,” Kica said.

French President Pokes at Trump for Leaving Paris Accord

French President Emmanuel Macron took a jibe Sunday at President Donald Trump for withdrawing from the Paris climate agreement.

 

Macron did not name Trump while speaking at the first meeting of the International Solar Alliance in New Delhi. But while hailing the “solar mamas,” a group of women trained as solar engineers, he said the women had continued their mission to promote solar energy even after “some countries decided just to leave the floor and leave the Paris agreement.”

 

Trump announced last June that the U.S. was withdrawing from the Paris accord, which aims to slow the rise in global temperature by reducing greenhouse gas emissions.

 

Heads and ministers of dozens of countries are participating in the daylong solar meeting, co-hosted by India and France.

 

The Alliance is a treaty-based international body for the promotion of efficient exploitation of solar energy to reduce dependence on fossil fuels. It was launched by India and France on the sidelines of the 2015 Paris Climate Conference.

 

“Today is a big change,” Macron told the meeting. “Our solar mamas, who we just listened to, didn’t wait for us. They started to act and to deliver concrete results. They didn’t wait and they didn’t stop because some countries decided just to leave the floor and leave the Paris agreement.”

 

“Because they decided it was good for them, for their children, their grandchildren. They decided to act and keep acting, and that’s why we are here, in order to act very concretely,” Macron said.

 

India and France called for affordable solar technology and concessional finance for promoting solar energy.

 

The meeting will discuss framing regulations and standards, credit mechanisms, crowd funding and sharing of technological breakthroughs to promote solar energy in 121 countries associated with the Alliance. The member countries are fully or partially between the Tropics of Cancer and Capricorn.

 

Indian Prime Minister Narendra Modi called for a unified effort for promoting solar energy and said the Alliance would help to achieve greater global energy security.

 

“Promoting its development and use can bring prosperity for all and can help reduce the carbon footprint on Earth,” Modi told the conference. “If we want the welfare of planet Earth and of the whole humanity, I am confident that we can come out of our personal confines and like a family, bring unity in our aims and efforts [to promote solar energy].”

 

 

French Far-Right Party Definitively Severs Ties With Founder

France’s far-right National Front party has definitively severed its ties to firebrand founder Jean-Marie Le Pen as it tries to revive its fortunes.

 

The party also re-elected his daughter, Marine Le Pen, to a new term as president at party congress where she was its only candidate for the post. A new 100-member governing council was also named.

 

The party tweeted Sunday that more than 79 percent of members who participated in a vote approved new party statutes that included abolishing Jean-Marie Le Pen’s position of party president for life.

 

The party expelled him in 2015 over anti-Semitic remarks but he kept the honorary position. Sunday’s vote is a crushing blow for the 89-year-old, who founded the party in 1972 and was runner-up in the 2002 French presidential election.

 

 

Economic Problems Prompt Iran to Cautiously Consider Change

Labor strikes. Nationwide protests. Bank failures.

In recent months, Iran has been beset by economic problems despite the promises surrounding the 2015 nuclear deal it struck with world powers.

Its clerically overseen government is starting to take notice. Politicians now offer the idea of possible government referendums or early elections. Even Supreme Leader Ayatollah Ali Khamenei acknowledged the depths of the problems ahead of the 40th anniversary of Iran’s Islamic Revolution.

“Progress has been made in various sectors in the real sense of the word; however, we admit that in the area of ‘justice’ we are lagging behind,” Khamenei said in February, according to an official transcript. “We should apologize to Allah the Exalted and to our dear people.”

Whether change can come, however, is in question.

​An economy run by the state

Iran today largely remains a state-run economy. It has tried to privatize some of its industries, but critics say they have been handed over to a wealthy elite that looted them and ran them into the ground.

One major strike now grips the Iran National Steel Industrial Group in Ahvaz, in the country’s southwest, where hundreds of workers say they haven’t been paid in three months. Authorities say some demonstrators have been arrested during the strike.

More than 3.2 million Iranians are jobless, government spokesman Mohammad-Bagher Nobakht has said. The unemployment rate is more than 11 percent.

Banks remain hobbled by billions of dollars in bad loans, some from the era of nuclear sanctions and others tainted with fraud. The collapse last year of the Caspian Credit Institute, which promised depositors the kinds of returns rarely seen outside of Ponzi schemes, showed the economic desperation faced by many in Iran.

​Or in security services’​ grip

Meanwhile, much of the economy is in the grip of Iran’s security services.

The country’s powerful Revolutionary Guard paramilitary force, which answers only Khamenei and runs Iran’s ballistic missile program, controls 15 to 30 percent of the economy, analysts say.

Under President Hassan Rouhani, a relatively moderate cleric whose government reached the nuclear accord, there has been a push toward ending military control of some businesses. However, the Guard is unlikely to give up its power easily.

Some suggest hard-liners and the Guard may welcome the economic turmoil in Iran as it weakens Rouhani’s position. His popularity has slipped since winning a landslide re-election in May 2017, in part over the country’s economic woes.

Analysts believe a hard-line protest in late December likely lit the fuse for the nationwide demonstrations that swept across about 75 cities. While initially focused on the economy, they quickly turned anti-government. At least 25 people were killed in clashes surrounding the demonstrations, while nearly 5,000 reportedly were arrested.

​A rare referendum?

In the time since, Rouhani has suggested holding a referendum, without specifying what exactly would be voted on.

“If factions have differences, there is no need to fight, bring it to the ballot,” Rouhani said in a speech Feb. 11. “Do whatever the people say.”

Such words don’t come lightly. There have been only two referendums since the Islamic Revolution. A 1979 referendum installed Iran’s Islamic republic. A 1989 constitutional referendum eliminated the post of prime minister, created Iran’s Supreme National Security Council and made other changes.

A letter signed by 15 prominent Iranians published a day after Rouhani’s speech called for a referendum on whether Iran should become a secular parliamentary democracy. The letter was signed by Iranians living inside the country and abroad, including Nobel Prize laureate Shirin Ebadi.

“The sum of the experiences of the last 40 years show the impossibility of reforming the Islamic Republic, since by hiding behind divine concepts … the regime has become the principal obstacle to progress and salvation of the Iranian nation,” read the letter, which was posted online.

But even among moderates in Iran’s clerical establishment, there seems to be little interest in such far-reaching changes, which would spell the end of the Islamic Republic. Hard-liners, who dominate the country’s security services, are adamantly opposed.

“I am telling the anti-Islamic government network, the anti-Iranians and those runaway counterrevolutionaries … their wish for a public referendum will never come true,” Tehran Friday prayer leader Ayatollah Ahmad Khatami said Feb. 15, according to the state-run IRNA news agency.

​Take responsibility

Yet there are signs that authorities realize that something will have to give. Khamenei’s apology in February took many by surprise, especially as the country’s true hard-liners believe he is the representative of God on earth.

Khamenei’s apology came after a letter from Mehdi Karroubi, an opposition activist who remains under house arrest, demanding that the supreme leader take responsibility for failures.

“You were president for eight years and you have been the absolute ruler for almost 29 years,” Karroubi wrote in the letter, which was not reported on by state media. “Therefore, considering your power and influence over the highest levels of state, you must accept that today’s political, economic, cultural and social situation in the country is a direct result of your guidance and administration.”

Iran’s former hard-line President Mahmoud Ahmadinejad, blamed by many for the country’s economic woes, has come out for early elections. He also demanded they be “free and fair,” while continuing his own campaign against Khamenei, whom he ignored in his attempt to run in the 2017 presidential election.

However, Ahmadinejad’s action drew immediate criticism, as his own widely disputed 2009 re-election sparked unrest and violence that killed dozens.