Coalition Deal Leaves Merkel’s Fate in Hands of Social Democrats

Angela Merkel has survived as German chancellor but the coalition deal she clinched on Friday puts her fate in the hands of her Social Democrat (SPD) partners and risks eroding support from her close allies before the end

of her fourth term.

Europe’s pre-eminent leader for more than 12 years, Merkel’s star is waning as she pays for her 2015 decision to leave German borders open to over a million refugees, a move that cost her Christian Democrats votes and fueled the rise of the far-right.

After the collapse of talks in November to form a three-way coalition with the liberal Free Democrats and Greens, Merkel and her conservative Bavarian Christian Social Union (CSU) allies were forced to turn again to the left-leaning SPD.

Merkel’s immediate destiny now lies in the hands of rank-and-file Social Democrats whose party leaders will ask them on Jan. 21 to back Friday’s deal, a repeat of the grand coalition that governed from 2013 to 2017.

The chancellor, who still commands wide respect abroad, needed the talks to succeed to avoid further erosion of her authority, after losing ground in September elections, and the weakening of German influence, not least in the European Union.

An Infratest Dimap poll for broadcaster ARD published last week showed Merkel’s personal approval had dropped 2 percentage points from a month earlier to 52 percent.

To win over the SPD, Merkel agreed to 5.95 billion euros ($7.2 billion) of investment in education, research and digitalization by 2021, expanded child care rights, and a pledge to strengthen Europe’s cohesion with increased German contributions to the EU budget.

The investment is a small proportion of the extra 45 billion euros the government will have at its disposal for the next four years and for many in the SPD, the deal did not go far enough on cherished social justice issues.

The leader of the SPD’s more radical Berlin branch, Michael Mueller, said commitments on affordable housing were inadequate. “Living cannot be allowed to be a luxury,” he said.

Friday’s 28-page coalition blueprint also failed to convince Marcel Fratzscher, head of the DIW economic research institute and an advocate of stronger investment in Germany, who said “a clear vision and courageous reforms are lacking.”

European legacy

Even if SPD delegates do back the coalition agreement, negotiations on forming a government could still fail.

Describing the deal clinched after a 25-hour meeting as a “give and take” agreement, Merkel said much hard work remained before a full coalition could be formed.

“The coalition negotiations probably won’t be easier than the exploratory talks,” she told a joint news conference with CSU leader Horst Seehofer and SPD leader Martin Schulz.

Mujtaba Rahman of political consultancy Eurasia assigned a 35 percent probability to coalition negotiations failing and leading to an early election or a minority government.

“There are still multiple risks to an overall agreement,” he said. “There is still a risk, even in a scenario where Merkel is able to form a government, that she will not be able to fulfill her complete term.”

Conservatives, though, were pleased Friday’s coalition blueprint omitted a call from the SPD’s Schulz for a “United States of Europe” by 2025.

“It is welcome that the goal of a United States of Europe, which sounds great and which perhaps sometime in the future can be a long-term objective, is not included in this coalition agreement,” said Detlef Seif, the deputy EU spokesman for Merkel’s conservative parliamentary bloc.

A commitment to “sustainably strengthen and reform the euro zone” in close partnership with France does give Merkel scope to secure her legacy as a guardian of the European project.

However, beyond boosting Germany’s EU budget contribution and transforming the European Stability Mechanism that can bailout member states into a European Monetary Fund, the blueprint is short of specifics on Europe.

Fiscally conservative members of Merkel’s Christian Democrats are wary of France pushing Berlin into European reforms at increased cost to the German taxpayer.

Beyond Merkel

Carsten Nickel, deputy research director at advisory firm Teneo Intelligence, said of Merkel’s centrist strategy: “The real challenge has always been to sell this logic internally.”

That Merkel has been able to survive as chancellor is partly due to the absence of a natural successor.

Though a challenger has yet to come forward, impatience is growing in Christian Democrat ranks about Merkel’s tendency to manage crises as they arise rather than presenting a vision the party can rally behind and sell to voters.

Her message during campaigning for September’s election was simply “don’t experiment” with a shift to the political left — a narrative that failed to resonate with voters, who handed her conservatives their worst result since 1949.

“The conversation has now moved on,” said Eurasia’s Rahman. “There is a lot of active consideration being given to the post-Merkel era.”

Anti-migrant Incumbent Favored in Czech Presidential Vote

The Czechs are electing a new president, and eight candidates are hoping to unseat the current controversy-courting leader.

President Milos Zeman, 73, is seeking another five-year term in the largely ceremonial post and is the favorite to win the election’s first-round vote on Friday and Saturday.

Two political newcomers, the former president of the Academy of Sciences, Jiri Drahos, and popular song writer Michal Horacek are considered his major challengers. Others with a chance to advance to the runoff are Mirek Topolanek, an outspoken leader who served as prime minister from 2006 to 2009, and Pavel Fischer, a former diplomat.

If no candidate achieves a majority, the top two will face each other in a runoff in two weeks.

Friday’s vote was hit by a protest by Femen activists. After Zeman entered a polling station in Prague, he was approached by a female activist naked to the waist who shouted “Zeman, Putin’s slut!” His guards intervened and led the shaken president away. Zeman returned several minutes later to vote and said he was honored to be attacked by a Femen activist.

Zeman was elected to the largely ceremonial post in 2013 during the country’s first direct presidential vote, a victory that returned the former left-leaning prime minister to power.

In office, he’s become known for strong anti-migrant rhetoric that won him support from the populist far-right. He has divided the nation with his pro-Russian stance and his support for closer ties with China.

He was one of the few European leaders to endorse Donald Trump’s bid for the White House. He flew the European Union flag at Prague Castle but later used every opportunity to attack the 28-nation bloc.

Transit Shutdown in Greece as Unions Strike for Right to Strike

The Athens subway came to a standstill Friday as Greeks protested new reforms that parliament is set to approve Jan. 15 in return for bailout funds, including restrictions on the right to strike.

In the first major industrial upheaval of 2018, the shutdown of the Athens metro, used by about 938,000 commuters daily, caused traffic gridlock in the city of 3.8 million people.

Ships were unable to sail as workers went on strike and state-run hospitals had to rely on reserve staff as doctors walked off the job. More work stoppages were expected Monday.

The bill pending approval in parliament Monday would reduce family benefits, introduce a new process for foreclosures on overdue loans and make it harder to call a strike.

It has outraged many Greeks, who have seen living conditions and incomes plummet since the country first sought international aid to stave off bankruptcy in 2010, and required another two bailouts thereafter.

Rule changes

At present, unions can call strikes with the support of one-third of their members. The new law would raise that to just more than 50 percent, which creditors hope would limit the frequency of strikes and improve productivity that lags about 20 percent behind the EU average.

PAME, a communist-affiliated union, was scheduled to hold a demonstration in central Athens at midday (1000 GMT) Friday.

“Blood was shed by generations which came before us to have the right to strike. Now a so-called left wing government is trying to abolish it,” said Nicos Papageorgiou, a 50-year-old hotel worker.

Syriza, the dominant party in the government elected in 2015, has its roots in left-wing labor activism.

Papageorgiou and about 200 other PAME members rallied outside the finance ministry Thursday evening. Earlier in the week, there were angry scenes when some union members burst into the labor ministry, demanding the government rescind the bill.

ADEDY, the largest union of public-sector workers, scheduled a work stoppage for Monday.

The government says it needs the reforms to receive tranches of bailout aid. The latest bailout, worth up to 86 billion euros ($104 billion), expires in August. So far Greece has received 40.2 billion euros, and a new tranche is expected to be worth around 4.5 billion euros.

As Sanctions Bite, China Trade With North Korea Plummets

China’s trade with North Korea plunged 50 percent in December as U.N. sanctions imposed over Pyongyang’s nuclear and missile development tightened, the government reported Friday.

 

China accounts for nearly all of the isolated North’s trade and energy supplies. Beijing has imposed limits on oil sales and cut deeply into the North’s foreign revenue by ordering North Korean businesses in China to close, sending home migrant workers and banning purchases of its coal, textiles, seafood and other exports.

 

Imports from the North shrank 81.6 percent to $54 million in December while exports to the isolated, impoverished country contracted 23.4 percent to $260 million, said a spokesman for the Chinese customs agency, Huang Songping.

UN sanctions 

The U.N. Security Council has steadily tightened trade restrictions as leader Kim Jong Un’s government pressed ahead with nuclear and missile development in defiance of foreign pressure.

 

Beijing was long Pyongyang’s diplomatic protector but has supported the U.N. sanctions out of frustration with what Chinese leaders see as their neighbor’s increasingly reckless behavior.

 

Despite the loss of almost all trade, the impoverished North has pressed ahead with weapons development that Kim’s regime sees as necessary for its survival in the face of U.S. pressure.

China has steadily increased economic pressure on Pyongyang while calling for dialogue to defuse the increasingly acrimonious dispute with U.S. President Donald Trump’s government.

Pressure, but not too much

Analysts see North Korea’s need for Chinese oil as the most powerful economic leverage against Pyongyang. But Chinese leaders have warned against taking drastic measures that might destabilize Kim’s government or send a wave of refugees fleeing into China.

 

Chinese leaders have resisted previous U.S. demands for an outright oil embargo but went along with the latest limits.

 

Under restrictions announced Jan. 5, Chinese companies are allowed to export no more than 4 million barrels of oil and 500,000 barrels of refined petroleum products to the North per year. They are barred from supplying its military or weapons programs.

 

Chinese officials complain their country bears the cost of enforcement, which they say has hurt businesses in its northeast.

Fiat Chrysler to Invest $1 Billion in Michigan Plant, Add 2,500 Jobs

Fiat Chrysler Automobile said on Thursday it will shift production of Ram heavy-duty pickup trucks from Mexico to Michigan in 2020, a move that lowers the risk to the automaker’s profit should President Donald Trump pull the United States out of the North American Free Trade Agreement.

Fiat Chrysler said it would create 2,500 jobs at a factory in Warren, Michigan, near Detroit and invest $1 billion in the facility. The Mexican plant will be “repurposed to produce future commercial vehicles” for sale global markets. Mexico has free trade agreements with numerous countries.

Fiat Chrysler Chief Executive Sergio Marchionne a year ago raised the possibility that the automaker would move production of its heavy-duty pickups to the United States, saying U.S. tax and trade policy would influence the decision.

If the United States exits NAFTA, it could mean that automakers would pay a 25 percent duty on pickup trucks assembled in Mexico and shipped to the United States. About 90 percent of the Ram heavy-duty pickups made at Fiat Chrysler’s Saltillo plant in Mexico are sold in the United States or Canada, company officials said.

Negotiators for the United States, Mexico and Canada are scheduled to meet later this month for another round of talks on revising NAFTA. Canadian government officials earlier this week said they are convinced that Trump intends to announce his intention to quit the agreement.

Trump has threatened to force the rollback of NAFTA, which enables the free flow of goods made in the United States, Canada and Mexico across the borders of those countries.

He also has criticized automakers for moving jobs and investment in new manufacturing facilities to Mexico and prodded them to add more auto production in the United States.

On Wednesday, Toyota Motor Corp and Mazda Motor Corp announced they would build a new $1.6 billion joint venture auto assembly plant in Alabama, drawing praise from Trump.

Vice President Mike Pence praised Fiat Chrysler’s announcement. “Manufacturing is back. Great announcement. Proof that this admin’s AMERICA FIRST policies are WORKING!” Pence said in a Twitter posting.

Chrysler raised its output in Mexico by 39 percent in 2017 to 639,000 vehicles, according to Mexican government data. That made Fiat Chrysler the third-largest producer of vehicles in Mexico in 2017, after Nissan Motor Co and General Motors Co.

The United States and Canada are the principal markets for full-size heavy-duty pickup trucks, most of which are produced in the United States by FCA, GM, Ford Motor Co, Toyota Motor Corp and Nissan Motor Co.

Miguel Ceballos, FCA spokesman for Mexico, said the company in 2018 and 2019 expects more growth in Mexico, and the moment it stops producing the Ram Heavy Duty pickups it will start to produce the new commercial vehicle, “which still does not have a name,” Ceballos said.

“It is going to be for global distribution, at the moment the Ram is only distributed at the level of NAFTA,” he said. Ceballos said there was no current plan to either reduce or grow the workforce in Mexico.

GM has been readying a plant in Silao, Mexico, to build a new generation of large pickup trucks.

FCA on Thursday said it also would make a special bonus payment of $2,000 to about 60,000 FCA hourly and salaried employees in the United States totaling about $120 million.

Typically, U.S. automakers only pay bonuses to hourly workers as part of collective bargaining agreements.

Trump’s EPA Aims to Replace Obama-era Climate, Water Regulations in 2018

The U.S. Environmental Protection Agency will replace Obama-era carbon and clean water regulations and open up a national debate on climate change in 2018, part of a list of priorities for the year that also includes fighting lead contamination in public drinking water.

The agenda, laid out by EPA Administrator Scott Pruitt in an exclusive interview with Reuters on Tuesday, marks an extension of the agency’s efforts under President Donald Trump to weaken or kill regulations the administration believes are too broad and harm economic growth, but which environmentalists say are critical to human health.

“The climate is changing. That’s not the debate. The debate is how do we know what the ideal surface temperature is in 2100? … I think the American people deserve an open honest transparent discussion about those things,” said Pruitt, who has frequently cast doubt on the causes and implications of global warming.

Pruitt reaffirmed plans for the EPA to host a public debate on climate science sometime this year that would pit climate change doubters against other climate scientists, but he provided no further details on timing or which scientists would be involved.

Pruitt said among the EPA’s top priorities for 2018 will be to replace the Clean Power Plan, former President Barack Obama’s centerpiece climate change regulation which would have slashed carbon emissions from power plants. The EPA began the process of rescinding the regulation last year and is taking input on what should replace it.

“A proposed rule will come out this year and then a final rule will come out sometime this year,” he said. He did not give any details on what the rule could look like, saying the agency was still soliciting comments from stakeholders.

He said the agency was also planning to rewrite the Waters of the United States rule, another Obama-era regulation, this one defining which U.S. waterways are protected under federal law. Pruitt and Trump have said the rule marked an overreach by including streams that are shallow, narrow, or sometimes completely dry — and was choking off energy development.

Pruitt said that in both cases, former President Barack Obama had made the rules by executive order, and without Congress. “We only have the authority that Congress gives us,” Pruitt said.

Pruitt’s plans to replace the Clean Power Plan have raised concerns by attorneys general of states like California and New York, who said in comments submitted to the EPA on Tuesday that the administrator should recuse himself because as Oklahoma attorney general he led legal challenges against it.

Biofuels and staff cuts

Pruitt said he hoped for legislative reform of the U.S. biofuels policy this year, calling “substantially needed and importantly” because of the costs the regulation imposes on oil refiners.

The Renewable Fuel Standard, ushered in by former President George W. Bush as a way to help U.S. farmers, requires refiners to blend increasing amounts of biofuels like corn-based ethanol into the nation’s fuel supply every year.

Refining companies say the EPA-administered policy costs them hundreds of millions of dollars annually and threatens to put some plants out of business. But their proposals to change the program have so far been rejected by the Trump administration under pressure from the corn lobby.

The EPA in November slightly raised biofuels volumes mandates for 2018, after previously opening the door to cuts.

The White House is now mediating talks on the issue between representatives of both sides, with input from EPA, and some Republican senators from states representing refineries are working on possible legislation to overhaul the program.

Pruitt said he also hoped Congress could produce an infrastructure package this year that would include replacing municipal water pipes, as a way of combating high lead levels in certain parts of the United States.

“That to me is something very tangible very important that we can achieve for the American people,” he said.

Pruitt added that EPA also is continuing its review of automobile fuel efficiency rules, and would be headed to California soon for more meetings with the California Air Resources Board to discuss them.

California in 2011 agreed to adopt the federal vehicle emission rules through 2025, but has signaled it would opt out of the standards if they are weakened, a move that would complicate matters for automakers serving the huge California market.

In the meantime, Pruitt said EPA is continuing to reduce the size of its staff, which fell to 14,162 employees as of Jan. 3, the lowest it has been since 1988, under Ronald Reagan when the employment level was 14,400. The EPA employed about 15,000 when Obama left office.

Nearly 50 percent of the EPA will be eligible to retire within the next five years, according to the agency.

Walmart Hikes Minimum Wage, Announces Layoffs on Same Day

Walmart will raise entry-level wages for U.S. hourly employees to $11 an hour in February as it benefits from last month’s major overhaul of the U.S. tax code and competes for low-wage workers in a tight labor market.

But on the same day, the world’s largest retailer and private employer, officially called Wal-Mart Stores Inc, announced layoffs as it shuttered many of its Sam’s Club discount warehouse stores.

A senior company official who declined to be named said about 62 stores would be affected, about one-tenth of the chain overall.

About 50 stores will be shut permanently after a review of store profitability and up to 12 more stores will be shut and reopened as e-commerce warehouses, the person said.

Every Sam’s Club store employs about 150 workers, bringing the total number of affected jobs to about 7,500, the person said. Many of them will be accommodated in new jobs at the newly opened warehouses and other stores, the official said.

Earlier Thursday, Walmart announced the wage hike saying it would also offer a one-time cash bonus, based on length of service, of up to $1,000, and expand maternity and parental leave benefits.

Reactions

The layoffs went unaddressed but the wage increase attracted praise from the White House.

“Walmart is the largest employer in the country and to see them make that kind of effort to over a million workers is a big deal … and I think further evidence that the tax reform and tax cut package are having the impact that we had hoped,” White House press secretary Sarah Huckabee Sanders told reporters Thursday.

U.S. Treasury secretary Steven Mnuchin also praised Walmart’s decision to raise wages.

The timing of the store closure announcement hours after the wage hike drew some criticism.

“While pay raises are usually a good thing, this is nothing but another public relations stunt from Walmart to distract from the reality that they are laying off thousands of workers and the ones who remain will continue to receive low wages,” said activist Randy Parraz, director of Making Change at Walmart, a United Food and Commercial Workers Union (UFCW) affiliate.

Wage hikes

The pay increase, Walmart’s third minimum wage increase since 2015, and bonus will benefit more than 1 million U.S. hourly workers, the company said.

The Walmart wage hike, taking minimum pay up from the current $10 an hour after in-house training, is aimed at helping the company attract workers at a time when the U.S. unemployment rate is at 4.1 percent, a 17-year low, making it harder to attract and retain minimum wage employees.

Walmart is likely to save billions of dollars from the new tax law, which slashed the corporate tax rate to 21 percent from 35 percent, and the wage hikes will cost the retailer only a fraction of those gains, analysts said.

“Given how low unemployment is, they would have had to hike wages anyway, the tax bill just made that move easier,” said Edward Jones analyst Brian Yarborough.

Rival retailer Target Corp raised its minimum wage to $11 in September, and said it would raise its minimum wage to $15 by 2020.

Walmart and Target’s new minimum wage levels exceed the state minimum wage, in all but three states, according to a research note from financial services firm BTIG. Eighteen U.S. states increased their minimum wage on Jan.1 but the federal minimum wage has been $7.25 since 2009.

Walmart’s announcement follows companies like AT&T Inc, Wells Fargo & Co and Boeing Co, which have all promised more pay for workers since the Republican-controlled U.S. Congress passed the biggest overhaul to the U.S. tax code in 30 years.

Second Airbag Inflator Death Prompts Ford to Warn Some Pickup Owners

Ford Motor Co said Thursday that it had confirmed a second death in an older pickup truck caused by a defective airbag inflator of Takata Corp., and it urged 2,900 owners in North America to stop driving their vehicles immediately until they can get replacement parts.

The second-largest U.S. automaker said it confirmed in late December that a July 2017 crash death in West Virginia in a 2006 Ford Ranger was caused by a defective Takata inflator. It previously reported a similar death in South Carolina that occurred in December 2015.

Ford said both Takata deaths occurred with inflators built on the same day installed in 2006 Ranger pickups. At least 21 deaths worldwide are linked to the Takata inflators that can rupture and send deadly metal fragments into the driver’s body.

The faulty inflators have led to the largest automotive recall in history. The other 19 deaths have occurred in Honda Motor Co. vehicles, most of which were in the United States.

Ford issued a new recall for automobiles that had been previously recalled in 2016. Of those 391,000 2004-06 Ranger vehicles, the new recall announced on Thursday affects 2,900 vehicles. These include 2,700 in the United States

and nearly 200 in Canada. The new recall will allow for identification of the 2,900 owners in the highest risk pool.

A Mazda Motor Corp. spokeswoman said Thursday that the company would conduct a similar recall and stop-drive warning for some 2006 Mazda B-Series trucks, which were built by Ford and are similar to the Ranger.

Japanese auto supplier Takata plans to sell its viable operations to Key Safety Systems, an affiliate of China’s Ningo Joyson Electric Corp., for $1.6 billion. Takata did not immediately comment Thursday on the Ford action.

Agency echoes Ford warning

The National Highway Traffic Safety Administration urged owners to heed Ford’s warning. “It is extremely important that all high-risk air bags are tracked down and replaced immediately,” NHTSA spokeswoman Karen Aldana said.

Ford said it would pay to have vehicles towed to dealerships or send mobile repair teams to owners’ homes and provide free loaners if needed.

Takata said in June that it had recalled, or expected to recall, about 125 million vehicles worldwide by 2019, including more than 60 million in the United States. Nineteen automakers worldwide are affected.

Takata inflators can explode with excessive force, unleashing metal shrapnel inside cars and trucks, and have injured more than 200 people. The defect led Takata to file for bankruptcy protection in June.

In 2017, prosecutors in Detroit charged three former senior Takata executives with falsifying test results to conceal the inflator defect. None has come to the United States to face charges.

Last year, Takata pleaded guilty of wire fraud and was subject to paying a total of $1 billion in criminal penalties in a U.S. court in connection with the recalls.

Automakers have struggled to get enough replacement parts for the massive recalls. A November NHTSA report said about two-thirds of U.S. vehicles recalled had not yet been repaired. 

Senator Bill Nelson, a Florida Democrat, said in a statement Thursday that the latest death was evidence of “the very definition of a failed recall.” NHTSA must do more, he said, to make the recall a priority.

In November, NHTSA rejected a petition from Ford to delay recalling 3 million vehicles with potentially defective airbag inflators to conduct additional testing.

In June 2016, NHTSA warned that airbag inflators on more than 300,000 unrepaired recalled 2001-03 model year Honda vehicles showed a substantial risk of rupturing, and urged owners to stop driving them until they were fixed. NHTSA said the inflators have as high as a 50 percent chance of a rupture in a crash.

Ecuador Grants WikiLeaks’ Assange Citizenship

WikiLeaks founder Julian Assange, who has been living in asylum inside Ecuador’s embassy in London for five years, was granted Ecuadorian citizenship, the country’s foreign minister said Thursday.

The move was seen as an unsuccessful attempt to allow Assange to leave the embassy without facing arrest by British police. London denied Ecuador’s request to grant Assange diplomatic status, which would give him safe passage out of the embassy.

“Ecuador is currently exploring other solutions in dialogue with the UK,” Ecuador’s foreign minister, Maria Fernanda Espinosa, told reporters Thursday.

“There are well-founded fears we have about possible risks to his life and integrity, not necessarily by the UK but by third party states,” she added.

Assange has been living at the Ecuadorean Embassy in London since 2012 under virtual house arrest to avoid being detained in connection with a Swedish rape investigation, which began seven years ago.

Though Sweden dropped the case against him, the Australian-born former journalist and computer programmer remained at the Ecuadorean embassy. British police have said they will arrest him on a charge of jumping bail if he tries to leave.

Assange also faces a possible sealed U.S. indictment against him. The U.S. Justice Department has been investigating Assange since at least 2010, when WikiLeaks published thousands of stolen U.S. security files.

 

Vote Putin, Get Chance to Win iPhone

Turn up at a polling station in Russia in March and get the chance to win an iPhone or iPad. That’s one of the plans the Kremlin is considering in a bid to secure a high turnout in the presidential elections being held then, according to a leaked document reported by a Russian media outlet.

Vladimir Putin’s re-election as president is assured. Yet while he remains highly popular, according to opinion polls, the overall success of the presidential election isn’t, and opposition activists say the Kremlin is worried as it tries to balance between keeping tight control over campaigning and avoiding voter apathy.

The Kremlin, they say, is determined to ensure a big turnout to demonstrate that Putin remains Russia’s “irreplaceable leader,” 18 years after first coming to power, and that his grip on the nation hasn’t weakened.

The country’s only truly independent opposition leader, Alexei Navalny, an anti-corruption campaigner, has been excluded from standing; his disqualification was upheld Saturday by Russia’s Supreme Court.

Still, he remains a thorn in the side of the Kremlin as he seeks to portray the election as manipulated, using online videos to mock corruption in Putin’s circle and staging street rallies to provoke a Kremlin response.

Navalny, who rose to prominence galvanizing street protests in Moscow against alleged voter fraud in the 2011 legislative elections, says other candidates are handpicked or useful as props. Kremlin officials deny the accusation. In a recent television interview, Putin wouldn’t even mention Navalny by name, but the Russian leader gruffly said he wouldn’t allow Navalny to “destabilize our country.”

A leaked Kremlin document outlining ways to get voters to the polls suggest there are indeed worries among Putin’s officials about apathy and boycotts. According to the leaked document, reported by RBC Media, the Kremlin is planning to offer iPhones and iPads for the best voting station “selfies” as part of a bid to create a “carnival-like polling day” and draw more people to vote.

Under the plan, celebrities and famous sports figures could be enlisted to promote the “Photo at the Polls” contest. Other attractions under consideration include staging family games and offering non-binding referendums on topics appealing to families, according to RBC.

“The aim is to run an election that looks enough like a real one to arouse some interest – as the regime needs a strong turnout to claim legitimacy – but not so real as to include genuinely subversive and critical voices,” analyst Mark Galeotti, a researcher at the Institute for International Relations, a Prague-based research institution, wrote recently.

Navalny has called for a nationwide strike for January 28 to launch a boycott of the vote. “The aim of our strike is to cause maximum political damage to Putin,” he told supporters in a recent online broadcast.

The 41-year-old was barred last month from standing in the March poll by the country’s election commission on the grounds that he has a 2013 embezzlement conviction that Navalny says was politically motivated and engineered to keep him out of the election.

The European Court of Human Rights has ruled the proceedings against the opposition leader were “arbitrary and unfair.” Former Soviet leader Mikhail Gorbachev said the case was “proof that we do not have independent courts.” Since announcing his intention to run, Navalny has been doused twice with antiseptic liquid by assailants — one attack left the vision in his right eye impaired temporarily.

An opinion survey released in December by the Moscow-based Levada Center, a polling company, suggested that Putin will likely fall short of securing the Kremlin-earmarked goal of 70 percent of the vote — and that turnout will fall below that number as well. The 65-year-old Putin kicked off his election campaign officially last week, visiting a factory in Tver, a city 170 kilometers northwest of the Russian capital, Moscow.

Last month, the Kremlin warned the United States not to meddle in the upcoming Russian elections when Washington criticized the barring of Navalny from the race.

Russian Foreign Ministry spokeswoman Maria Zakharova accused the U.S. of “direct interference in the electoral process” after the State Department urged “the government of Russia to hold genuine elections that are transparent, fair, and free.” On Thursday, the Reuters news agency cited President Putin as saying Navalny was the U.S. pick for Russia’s presidency, which was why Washington complained about Navalny being barred from seeking office.

Putin’s electoral rivals include Communist Party politician Pavel Grudinin and television host Ksenia Sobchak, once a Playboy cover girl. The 36-year-old Sobchak denies accusations by Navalny that she’s a stooge and is coordinating her campaign with the Kremlin.

But Vitali Shkliarov, one of her advisers, indicated this week that her campaign may well fit into the Kremlin’s electoral management plans.

Writing for CNN, he said: “The Kremlin may be afraid of lower voter turnout – an indication of voter apathy and a decreasing legitimacy in the government. By allowing the semblance of increased competition, the Kremlin may be hoping to engage more voters – and get higher voter turnout on Election Day.”

 

 

Russia Warns of Additional Penalties for US Media

Russia’s government is threatening additional penalties against U.S. media operating in Russia. The threat is the latest in a back and forth dispute between Washington and Moscow over the treatment of media outlets operating in each other’s countries. 

Ever since U.S. intelligence agencies issued a report last January, claiming a Russian media role in alleged Kremlin meddling in the 2016 U.S. presidential election, the media have been garnering unwelcome headlines.

First, the U.S. demanded the Russian state-affiliated RT news service register under the Foreign Agents Registration Act, or FARA, an 80-year-old law first introduced to counter Nazi propaganda during World War II.  

In response, Russian President Vladimir Putin signed a law designating foreign media as “foreign agents.”  

Voice of America, Radio Free Europe / Radio Liberty, and several affiliated projects with U.S. government backing were soon added to the list.

Then this week, Russia’s state-affiliated media outlet Sputnik announced that the United States was forcing its parent company, RIA Global, to register under FARA by early February.   

In a statement issued online, Russia’s embassy in Washington called the move “unacceptable” and alleged that Russian journalists face problems with visas as well as harassment from U.S. security services.

While the U.S. has denied those accusations, Russia also warned that unavoidable “mirror measures” would be forthcoming, without elaborating.

Yet the media issue wasn’t the only irritant surrounding Russia’s debated role in the U.S. elections.  

On Thursday, the Kremlin denounced a U.S. congressional report issued by Senate Democrats that accused Russia of mounting a protracted and asymmetrical assault on democracy in the U.S. and elsewhere.

Kremlin spokesman Dmitry Peskov called the report part of an ongoing “baseless” and “groundless” campaign against Russia.  

 

RT editor-in-chief Margarita Simonyan also weighed in, deriding the report as “boring.”

“Wake me up in five years when they find nothing and don’t want to admit there was no Russian interference,” she said.

Yet the issue is unlikely to disappear soon.

While the U.S. Congress has multiple ongoing investigations into Russian election meddling, Russian lawmakers have been conducting their own.

Of key interest to the Duma is how U.S. media might seek to influence Russia’s presidential elections, slated for March 2018.

 

South Korea Moves to Ban Cryptocurrency Trading

The South Korean government Thursday said it plans to ban cryptocurrency trading, sending bitcoin prices plummeting and throwing the virtual coin market into turmoil as the nation’s police and tax authorities raided local exchanges on alleged tax evasion.

The clampdown in South Korea, a crucial source of global demand for cryptocurrency, came as policymakers around the world struggled to regulate an asset whose value has skyrocketed over the last year.

Justice minister Park Sang-ki said the government is preparing a bill to ban trading of the virtual currency on domestic exchanges.

“There are great concerns regarding virtual currencies, and justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges,” said Park at a press conference, according to the ministry’s press office.

Once a bill is drafted, legislation for an outright ban of virtual coin trading will require a majority vote of the 297 members of the National Assembly, a process that could take months or even years.

​Cryptocurrency selloff

The government’s tough stance triggered a selloff of the cryptocurrency on both local and offshore exchanges.

The local price of bitcoin plunged as much as 21 percent in midday trade to 18.3 million won ($17,064.53) after the minister’s comments. It still trades around a 30 percent premium compared to other countries.

Bitcoin was down more than 10 percent on the Luxembourg-based Bitstamp at $13,199, after earlier dropping as low as $13,120, its weakest since Jan. 2.

South Korea’s cryptocurrency-related shares were also hammered. Vidente and Omnitel, which are stakeholders of Bithumb, skidded by the daily trading limit of 30 percent each.

Herd behavior a concern

Park Nok-sun, a cryptocurrency analyst at NH Investment & Securities, said the herd behavior in South Korea’s virtual coin market has raised concerns.

Indeed, bitcoin’s 1,500 percent surge last year has stoked huge demand for cryptocurency in South Korea, drawing college students to housewives and sparking worries of a gambling addiction.

“Virtual coins trade at a hefty premium in South Korea, and that is herd behavior showing how strong demand is here,” Park said. “Some officials are pushing for stronger and stronger regulations because they only see more (investors) jumping in, not out.”

Police raids

There are more than a dozen cryptocurrency exchanges in South Korea, according to Korea Blockchain Industry Association.

The proliferation of the virtual currency and the accompanying trading frenzy have raised eyebrows among regulators globally, though many central banks have refrained from supervising cryptocurrencies themselves.

The news on South Korea’s proposed ban came as authorities tightened their grip on some of the cryptocurrency exchanges.

The nation’s largest cryptocurrency exchanges like Coinone and Bithumb were raided by police and tax agencies this week for alleged tax evasion. The raids follow moves by the finance ministry to identify ways to tax the market that has become as big as the nation’s small-cap Kosdaq index in terms of daily trading volume.

Cashing out

Some investors appeared to have taken preemptive action.

“I have already cashed most of mine (virtual coins) as I was aware that something was coming up in a couple of days,” said Eoh Kyung-hoon, a 23-year old investor.

Bitcoin sank on Monday after website CoinMarketCap removed prices from South Korean exchanges, because coins were trading at a premium of about 30 percent in Asia’s fourth largest economy. That created confusion and triggered a broad selloff among investors.

An official at Coinone told Reuters that a few officials from the National Tax Service raided the company’s office this week.

“Local police also have been investigating our company since last year, they think what we do is gambling,” the official, who spoke on condition of anonymity, said and added that Coinone was cooperating with the investigation.

Bithumb, the second largest virtual currency operator in South Korea, was also raided by the tax authorities on Wednesday.

“We were asked by the tax officials to disclose paperwork and things yesterday,” an official at Bithumb said, requesting anonymity due to the sensitivity of the issue.

The nation’s tax office and police declined to confirm whether they raided the local exchanges.

South Korean financial authorities had previously said they are inspecting six local banks that offer virtual currency accounts to institutions, amid concerns the increasing use of such assets could lead to a surge in crime.

Maine’s Senators Back Restoring Net Neutrality

Maine’s U.S. senators say they are getting behind an effort to restore net neutrality rules.

Republican Sen. Susan Collins and independent Sen. Angus King say they support a bipartisan Congressional Review Act resolution to bring back net neutrality, which was repealed by the Federal Communications Commission last month.

Collins and King say in a joint statement that protections under net neutrality have allowed businesses in Maine and elsewhere to have equal access to the Internet so they can “innovate, grow and compete in the global economy.”

Collins and King wrote to FCC Chairman Ajit Pai in December to call on him to cancel plans to repeal net neutrality. Pai has said the move eliminates regulations that are unnecessary. It’s an Obama-era rule that guaranteed equal access to the internet.

China Hits Some Political, Financial Potholes on Its Modern Silk Road

China’s plan for a modern Silk Road of railways, ports and other facilities linking Asia with Europe hit a $14 billion pothole in Pakistan.

Pakistan’s relations with Beijing are so close that officials call China their “Iron Brother.” Despite that, plans for the Diamer-Bhasha Dam were thrown into turmoil in November when the chairman of Pakistan’s water authority said Beijing wanted an ownership stake in the hydropower project. He rejected that as against Pakistani interests.

China issued a denial but the official withdrew the dam from among dozens of projects being jointly developed by the two countries.

Projects canceled, delayed, renegotiated

From Pakistan to Tanzania to Hungary, projects under President Xi Jinping’s signature “Belt and Road Initiative” are being canceled, renegotiated or delayed because of disputes about costs or complaints host countries get too little out of projects built by Chinese companies and financed by loans from Beijing that must be repaid.

In some areas, Beijing is suffering a political backlash because of fears of domination by Asia’s biggest economy.

“Pakistan is one of the countries that is in China’s hip pocket, and for Pakistan to stand up and say, ‘I’m not going to do this with you,’ shows it’s not as ‘win-win’ as China says it is,” said Robert Koepp, an analyst in Hong Kong for the Economist Corporate Network, a research firm.

“Belt and Road,” announced by Xi in 2013, is a loosely defined umbrella for Chinese-built or -financed projects across 65 countries from the South Pacific through Asia to Africa and Europe. They range from oil drilling in Siberia to construction of ports in Southeast Asia, railways in Eastern Europe and power plants in the Middle East.

Other governments welcomed the initiative in a region the Asian Development Bank says needs more than $26 trillion of infrastructure investment by 2030 to keep economies growing. Nations including Japan have given or lent billions of dollars for development, but China’s venture is bigger and the only source of money for many projects.

Governments from Washington to Moscow to New Delhi are uneasy Beijing is trying to use its “Belt and Road” to develop a China-centered political structure that will erode their influence.

China’s significance to Pakistan as a source of financing increased following U.S. President Donald Trump’s Jan. 5 decision to suspend security assistance to Islamabad in a dispute over whether it was doing enough to stop Afghan militants.

“Belt and Road” is a business venture, not aid. A Cabinet official, Ou Xiaoli, told The Associated Press in April that lending will be on commercial terms. Beijing wants to attract non-Chinese investors, though that has happened with only a handful of projects, he said.

Among projects that have been derailed or disrupted:

Authorities in Nepal canceled plans in November for Chinese companies to build a $2.5 billion dam after they concluded contracts for the Budhi Gandaki Hydro Electric Project violated rules requiring multiple bidders.
The European Union is looking into whether Hungary violated the trade bloc’s rules by awarding contracts to Chinese builders of a high-speed railway to neighboring Serbia without competing bids.
In Myanmar, plans for a Chinese oil company to build a $3 billion refinery were canceled in November because of financing difficulties, the newspaper Myanmar Times reported.

No official list

There is no official list of projects, but consulting firm BMI Research has compiled a database of $1.8 trillion of infrastructure investments announced across Asia, Africa and the Middle East that include Chinese money or other involvement.

Many are still in planning stages and some up to three decades in the future, according to Christian Zhang, a BMI analyst.

“It’s probably too early to say at this point how much of the overall initiative will actually be implemented,” Zhang said.

Tempered concerns

The stumbles for one of the world’s most ambitious infrastructure ventures could help temper concerns Beijing will increase its strategic influence.

“There is a big possibility that China is going to have a lot of disagreements and misunderstandings,” said Kerry Brown, a specialist in Chinese politics at King’s College London. “It’s hard to think of a big, successful project the ‘Belt and Road Initiative’ has led to at the moment.”

Even Pakistan, one of China’s friendliest neighbors, has failed to agree on key projects.

The two governments are developing facilities with a total cost of $60 billion including power plants and railways to link China’s far west with the Chinese-built port of Gwadar on the Indian Ocean.

A visit by a Chinese assistant foreign minister in November produced no agreement on railway projects in the southern city of Karachi valued at $10 billion and a $260 million airport for Gwadar.

The same month, the chairman of the Pakistan Water and Power Development Authority announced the Diamer-Bhasha Dam would be withdrawn from joint development. The site is in Gilgit-Baltistan in Pakistan’s far north, part of the Kashmir region, which also is claimed by India.

“Chinese conditions for financing the Diamer-Bhasha Dam were not doable and against our interests,” the official, Muzammil Hussain, told legislators, according to Pakistani news reports.

Exporting Chinese goods, knowledge

“Belt and Road” is interwoven with official efforts to export Chinese rail, hydropower and other technology and steel, aluminum and other industrial goods.

In Thailand, work on a $15 billion high-speed railway was suspended in 2016 following complaints too little business went to Thai companies.

After more talks over costs, technology sharing and land ownership, Thai leaders announced a new plan in July for a first line to be built from Bangkok to the country’s northeast. Building contracts went to Thai companies while China will supply technology.

In Tanzania, the government has reopened negotiations with China and another investor, the government of the gulf nation of Oman, over ownership of a planned $11 billion port in the city of Bagamoyo. The Tanzanian government failed to raise $28 million for its contribution, leaving it unclear what share the government might get.

Tanzania wants to make sure its people get more than just taxes collected from the port, said the director of the Tanzania Ports Authority, Deusdedit Kakoko.

“Land is for Tanzanians, and as the government we’re ensuring they get a share,” Kakoko said in an interview.

Projects move ahead

Despite such setbacks, Chinese officials say most “Belt and Road” projects are moving ahead with few problems.

Work on pipelines to deliver oil and gas from Russia and Central Asia is making “steady progress,” said a deputy commerce minister, Li Chenggang, at a Nov. 21 news conference.

“We have a lot of room for further cooperation,” said Li.

The state-run China Development Bank announced in 2015 it had set aside $890 billion for more than 900 projects across 60 countries in gas, minerals, power, telecoms, infrastructure and farming. The Export-Import Bank of China said it would finance 1,000 projects in 49 countries.

Acting as banker gives Beijing leverage to require use of Chinese builders and technology. But it can lead to complaints host countries fail to negotiate hard enough.

In Sri Lanka, the government sold an 80 percent stake in a port in the southern city of Hambantota to a Chinese state-owned company on Dec. 9 after falling behind in repaying $1.5 billion borrowed from Beijing to build it. That prompted complaints the deal was too favorable to Beijing.

“There is the perception of a Chinese incursion into their sovereignty by taking over the port,” said BMI’s Zhang.

Armed Robbers Steal Millions From Ritz Paris Hotel

Ax-wielding robbers stole jewelry on Wednesday possibly worth more than $5 million from a store in the famed Ritz Paris hotel, police said.

Five thieves carried out the heist at the luxury hotel in late afternoon. Three were arrested while two others got away. There were no injuries.

“The loss is very high and remains to be assessed,” one police source said. Another put the figure at 4.5 million euros ($5.38 million), but said that a bag had been recovered possibly containing some of the loot.

The hotel first opened in 1898 and was the first Paris hotel to boast electricity on all floors and bathrooms that were inside rooms.

The former home of fashion designer Coco Chanel and author Marcel Proust, the Ritz was a favourite drinking hole of American writer Ernest Hemingway.

It was at the Ritz that Diana, Princess of Wales, spent her last night in 1997 before the car crash that killed her and her lover Dodi Fayed, son of the hotel’s owner Mohammed al-Fayed.

Armed heists targeting jewellery stores are not uncommon in the ultra chic avenues near Place Vendome square in central Paris where the Ritz is located.

Kosovo President Vows to Sign Legislation Scrapping War Crimes Court

Kosovo President Hashim Thaci is insisting that he will sign legislation to abolish a special court set up to try former Kosovo Liberation Army (KLA) members for war and postwar crimes if parliament passes such a measure.

“The law on [the] special court is in place, but if the parliament votes otherwise, it will be my legal and constitutional duty to sign such legislation,” he said in a Wednesday interview with VOA’s Albanian Service.

It is unclear why Thaci, a former leader of the KLA, changed his position on the Hague-based special court, which was set up under Kosovo’s jurisdiction. The law, which required constitutional changes, was passed in 2015 amid pressure from the international community. As foreign minister at that time, Thaci supported the legislation and played a key role in having it passed.

Asked whether he was concerned he might be among those charged with war crimes, Thaci said he was “not afraid of justice.”

Equal treatment demanded

Echoing the opinions of those who see the establishment of the special court as unfair, the president warned that “Kosovo should not be discriminated [against] by the international community.”

“It must be treated the same way as other former Yugoslav states,” he said.

The motion to suspend the law was presented unexpectedly — late on December 22, just before the long Christmas holiday — by a group of 43 parliamentarians.

Alarmed at the surprise development, the U.S. ambassador, along with fellow Western ambassadors, immediately arrived at parliament in an effort to push back, urging Kosovo leaders to abandon the suspension by warning of serious consequences.

“The United States is deeply concerned by recent attempts of Kosovo lawmakers to abrogate the law on the Specialist Chambers,” State Department spokeswoman Heather Nauert said in a December 29 statement, referring to the special court by its official name. “We call on political leaders in the Republic of Kosovo to maintain their commitment to the work of the Chambers and to leave the authorities and jurisdiction of the court unchanged.”

A few days later, another statement by Quint NATO countries — an informal decision-making group consisting of France, Germany, Italy, the United Kingdom and the United States — was even harsher.

‘Severe negative consequences’

“Anyone who supports [suspending the special court] will be rejecting Kosovo’s partnership with our countries,” it said, adding that if Kosovo continued on this path, it would have “severe negative consequences, including for Kosovo’s international and Euro-Atlantic integration.”

U.S. Secretary of State Rex Tillerson said on December 21 that “the pursuit of justice in the Balkans is not over” and that the U.S. “remains committed to supporting justice for the victims.”

The head of the EU’s office in Kosovo called the attempt “appalling” and “extremely damaging for Kosovo.”

The special court would hear cases of alleged crimes against humanity, war crimes and other serious crimes committed during and after the 1998-99 conflict in Kosovo.

Kosovo’s parliament is in recess until next week, and it is unclear whether the motion will be put up for a vote.

This story originated in VOA’s Albanian Service.

Kosovo War Rape Survivors See Hope in Reparations, But Justice Remains Elusive

It was July 20, 1998, and “Drita” was traveling with her younger sister to visit family in a rural part of Serbia-controlled Kosovo.

“They stopped the bus, made us come out and asked for ID,” Drita, who did not want to be identified by her real name, told VOA’s Albanian Service. “They asked my sister to get out first, and I immediately went after her because I have always been close to her and she is two years younger.”

Like most ethnic Albanian women caught up in Kosovo’s two-year fight for secession, neither Drita nor her sister possessed official documentation, so the soldiers began herding them, along with three other female passengers, toward an abandoned house without doors or windows.

Watching as the frightened women were dragged away, Drita’s husband jumped from the bus, demanding to know where they were being taken. Insistently grabbing a soldier by the arm, he was shoved to the ground and battered with an iron rod.

Once inside, Drita could still hear his screams.

“And right in front of me, I could hear and see my sister,” she said, choking back tears as she struggled to describe the scene. “I was torn whether to run to my husband or my sister, [who] was there in front of me.”

With troops restraining her arms and grabbing at her knees, Drita thrashed about in panic as two others raped and beat her sister unconscious. Drita bit a chunk of flesh from a soldier’s hand, only to be struck by a scrap of discarded lumber, a protruding nail plunging into her arm.

“I still have the mark,” she said. “I tried to stop them, but I was beaten so hard because I tried to fight them like a man, and outside, I was hearing my husband scream.”

​Silent decades

International humanitarian organizations and local NGOs have collected an estimated 20,000 accounts of systematic rape and torture perpetrated by Serbian forces loyal to former President Slobodan Milosevic, whose bid to repress Kosovo’s fight for independence in the late 1990s left at least 11,000 Kosovars dead and 700,000 displaced.

Many survivors kept quiet for decades, fearing the shame that a rape can bring upon an extended family in a historically patriarchal society. Now, they are starting to find their voices, following a decision by the government to provide reparations for victims of sexual war crimes under a law that compensates veterans of the Kosovo War.

They welcome the lifetime monthly compensation of $275 for the physical and psychological trauma — about 90 percent of the average salary for Kosovar women. But many say justice remains elusive.

Two kinds of suppression

As Kosovo struggled to rebuild and secure international recognition in the wake of its 2008 declaration of independence, the issue of sexual violence remained largely on the back burner.

The reason, said Vlora Çitaku, Pristina’s ambassador to the United States, is because in Kosovo, as in many societies, “it is often the victim that gets blamed, not the perpetrator.”

Çitaku, herself a former refugee, said her family has long honored a late uncle lost in the battle for independence.

“Unfortunately for children of the survivors of sexual violence, the experience is completely the opposite,” she told VOA. “They don’t live with pride like I do. They have fear, they feel shame, and they are worried that they will be excluded, that their families will be excluded, that their mother will suffer if her story comes out.”

Drita, for example, said no one in her extended family knows what happened to her.

“These victims,” Çitaku said, “have carried on their shoulders not only the pain but also the shame” of an entire war-racked generation.

The emotional weight was so leaden that many Kosovar rape victims committed suicide or fell prey to family “honor killings,” leading some analysts to suspect that the roughly 20,000 documented accounts of rape by Serb forces in Kosovo are just a small fraction of the actual number.

No role in negotiations

Aside from Kosovo’s regional cultural norms, Shirley DioGuardi, who wrote about Kosovo in Women and Genocide, identifies another reason for the suppression of rape accounts: the international community’s exclusion of female victims from postwar discussions.

“We have so many qualified Kosovar women, and they were not allowed by the international community to be part of the negotiations,” she told VOA, referring to the fact that peace talks were led exclusively by men.

Some experts say this twofold suppression of accounts of conflict-driven sexual atrocities — on both domestic and international fronts — means that stories such as Drita’s are not only under-reported but also underprosecuted.

Despite numerous high-profile war crimes prosecutions by the International Criminal Tribunal for the former Yugoslavia (ICTY), a recent report by London-based Amnesty International said only a handful of perpetrators had been convicted of sexually motivated war crimes — and those exclusively by regional Serbian courts.

Because neither ICTY nor the European Union Rule of Law Mission in Kosovo has brought any perpetrator to justice, accounts such as Drita’s may be the only remaining historical evidence.

“Now, 18 years later, very little evidence survives, and the main evidence actually is what the survivors have to say,” said Sian Jones, an Amnesty International Kosovo expert.

That’s why, she added, “we are calling for reforms within the judicial system that will protect witnesses if they will come forward, which will give them support if they decide to go through the process of a court case at this stage.”

Amnesty International lauds the monthly stipend as “a just and dignified amount,” noting that the reparations law recognizes rape survivors as victims of the conflict, providing them benefits similar to those of war veterans. But critics say the law still falls short of international standards by excluding the predominantly Kosovo-Serb, Roma and Albanian women who were raped after hostilities formally concluded.

Rape as genocidal act

It wasn’t until 1994 — 46 years after the United Nations unanimously passed the Genocide Convention — that rape was officially categorized as an act of genocide, a step vital to including Kosovar women in the war victims category.

“I think it has to do with the fact that the act of rape is a mechanism of war against the female population of the world, and we can no longer accept that, just as we wouldn’t accept any other form of murder and torture that men were involved particularly,” said DioGuardi, who has written extensively about rape as a tool of warfare.

No amount of financial compensation or redefinition of war crimes can restore what Drita lost — specifically because the burden of trauma is passed on to future generations.

“I feel bad for my son, because I was never able as a parent to give him that joy, that cheerful smile that a child needs,” Drita said.

Although she survived the assault, she lost an unborn child, and three years later her husband died of complications from the beating.

“I have waited so long to be able to tell someone, to tell that we also fought — maybe not with weapons, but I confronted an over 6-foot-tall man,” Drita said. “I was raped and beaten, and I don’t even know how have I been able to make it to this day, but I am very strong and I don’t know how.”

The compensation means she will no longer need to beg, even if she’ll quietly continue to pray for the kind of emotional and psychological support from the broader community that would enable her to maintain the semblance of a normal life.

“Even if we receive millions, what happened to us will remain with us for the whole life,” she said. “It is etched in our souls because it is something that cannot be erased from our brain.”

As Kosovo advances into the future, having largely secured a stable postwar foundation, there still “cannot be peace,” said Çitaku, “if there is denial.”

This story originated in VOA’s Albanian Service.

US Congressional Report Details Extensive Russian Influence Campaigns

A U.S. congressional report issued Wednesday accused Russia of mounting a protracted assault on democracy at home and abroad, and urged a multi-pronged counter-strategy that begins with U.S. presidential leadership, something the report alleged has been lacking from Donald Trump.

Prepared by Democratic staff of the Senate Foreign Relations Committee and provided in advance to VOA, the report said, “[Russian President Vladimir] Putin’s regime has developed a formidable set of tools to exert influence abroad” and “appears intent on using almost any means possible to undermine democratic institutions and trans-Atlantic alliances.”

Based on months of research and informational exchanges with foreign governments targeted by the Kremlin, the 206-page report exhaustively documented the full array of tools Russia has wielded beyond its borders.

Putin’s “asymmetric arsenal” ranges from “a lethal blend of conventional military assaults, assassinations, disinformation campaigns, [and] cyberattacks” in Ukraine to plotting a coup in Montenegro to disinformation and cyberattacks in Germany, France, the United Kingdom and beyond, according to the report.

The document also details years of alleged oppression and violence within Russia against Putin’s perceived adversaries and critics. The Russian leader, the report said, “gained and solidified power by exploiting blackmail, fears of terrorism, and war” and “combined military adventurism and aggression abroad with propaganda and political repression at home, to persuade a domestic audience that he is restoring Russia to greatness.”

“This is not a report on the hacking of the 2016 [U.S.] election. It’s a report about how Russia operates around the world,” said a committee staff members who helped prepare the document, adding that the report is the first from a U.S. governmental entity that spells out “the scale and scope” of the Russian threat.

Without fully understanding that threat, the staffer said, “you can’t prevent it from happening again.”

The report detailed steps European nations have taken to combat Russian influence, both individually and within organizations such as NATO and the European Union. The United States, it contended, lags far behind.

“President Trump has been negligent in acknowledging and responding to the threat to U.S. national security posed by Putin’s meddling,” the report said. “The president should immediately declare that it is U.S. policy to counter and deter all forms of the Kremlin’s hybrid threats against the United States and around the world. … The president should also present to Congress a comprehensive national strategy to counter these grave national security threats.”

Establishing a fusion cell

The report recommended establishing an inter-agency task force or “fusion cell” for combating Russian influence modeled on the National Counterterrorism Center. It also recommended designating countries that employ malign influence operations as “State Hybrid Threat Actors,” and subjecting them to “a pre-emptive and escalatory sanctions regime.”

Minority reports are common on Capitol Hill. Like all such reports, this one was prepared for the full Foreign Relations Committee, which is Republican-led.

“We think a lot of [the report’s] recommendations and findings would be supported on a bipartisan basis,” a committee staff member said.

Putin has consistently ridiculed any suggestion of foreign meddling, and last year Trump appeared to back him up, at least in regard to the 2016 U.S. election.

“He [Putin] said he didn’t meddle. I asked him again. You can only ask so many times,” Trump told reporters after a November meeting with the Russian leader in Vietnam. “Every time he sees me, he says, ‘I didn’t do that.’ And I believe, I really believe, that when he tells me that, he means it.”

Prominent Republicans have joined Democrats in slamming Trump’s remarks.

“There’s nothing ‘America First’ about taking the word of a KGB colonel over that of the American intelligence community,” Republican Senator John McCain of Arizona said in a statement. “Vladimir Putin does not have America’s interests at heart. To believe otherwise is not only naïve but also places our national security at risk.”

In an interview last year on Australian Broadcasting Corp, McCain said, “I think he [Putin] is the premier and most important threat, more so than ISIS.”

Bipartisan probes

Multiple U.S. congressional committees are conducting bipartisan probes of Russian meddling in the 2016 election, with final reports possible later this year. In the interim, lawmakers of both political parties have spoken out.

“What I will confirm is that the Russian intelligence service is determined, clever,” Senate Intelligence Committee Chairman Richard Burr, a North Carolina Republican, said in October. “And I recommend that every campaign and every election official take this very seriously.”

“The Russian active measures did not end on Election Day 2016,” the committee’s top Democrat, Senator Mark Warner of Virginia said, adding that the United States should take a “more aggressive whole government approach” to combat Russian interference.

In pursuing a comprehensive strategy, Democratic staff members on the Senate Foreign Relations Committee recommended examining Russia’s actions in Europe and elsewhere.

“The Europeans have learned some of these lessons and we can learn from them,” a staff member said. “Russia can be deterred.”

“There is a long bipartisan tradition in Congress in support of firm policies to counter Russian government aggression and abuse against its own citizens, our allies, and universal values,” the Foreign Relation Committee’s top Democrat, Senator Ben Cardin of Maryland, wrote in an introduction to the document. “This report seeks to continue that tradition.”

— This report was embargoed and, as a result, VOA was unable to get White House reaction before its release.

French President Macron Walks Fine Line Between China and the EU

During his first state visit to China this week, French President Emmanuel Macron brought with him two key messages, analysts said.

One message was about the huge possibilities cooperation between China and Europe could bring and his commitment to that effort. The other, a warning to not underestimate growing concern and frustration in Europe – and elsewhere – with what many regard as China’s unfair trade practices such as investment restrictions in many sectors that are not blocked in countries overseas.

Matheiu Duchatel, deputy director of the Asia and China Program at the European Council of Foreign Relations said President Macron’s visit goes beyond France.

“He wants to present himself as a leader of the EU, but at the same time, I think he wants to send a signal that Europe and the EU are in better shape than many think in China,” Duchatel said.

Despite the Brexit referendum, Catalonia’s push for independence and the broader rise of populist parties, Duchatel said that now – more than before – governments in Europe are voicing concern about China’s trade practices.

And it is not just Europe, but the United States and Australia as well, he adds, noting that China now faces a “united front from developed countries against its unfair trade practices.”

“Many are coming to terms with the reality that China is no longer the factory of the world, but it is clearly a country that has very strong ambitions in terms of economic leadership for the world and it is not a market economy,” Duchatel said.

Building relationships

In China, President Macron went to great lengths to highlight his desire to meld both the interests of Europe and China, presenting China’s leader Xi Jinping with a gift of a horse, an eight-year old gelding named Vesuvius.

Macron pledged to visit China at least once every year while in office and said that he is determined to “get the Europe-China relationship into the 21st Century.” The two signed several major trade deals during the visit, that included fields such as food, nuclear power and aerospace. President Xi said the two countries will deepen their “strategic cooperation.”

During his first stop in Xi’an, Macron talked up China’s massive trillion-dollar trade and commerce project, the “Belt and Road” initiative, offering Paris’s support, albeit with a caveat.

Xi’an was once the starting point of the Silk Road, ancient trade routes for silk, spices and horses that China seeks to build on adding maritime routes as well. In a speech at Daming Palace, the former royal residence during China’s Tang Dynasty, Macron noted that the ancient Silk Roads were never only Chinese.

“By definition these roads can only be shared,” he told an audience of academics, students and business people. “If they are roads, they cannot be one-way.”

In a speech at a start-up incubator Tuesday, with Alibaba Founder Jack Ma at his side, along with other French and Chinese companies, Macron also talked about the possibilities cooperation could bring and warned about the looming threat of protectionism if adjustments were not made.

“France imports 45 billion from China but only exports 15 billion, so we have access to markets which is unbalanced, unsatisfying. If we don’t deal with this responsibly, the first, natural, reaction, the one we’ve had for too long, will be to close up on both sides,” Macron said.

Jean-Pierre Cabestan, a political science professor at Hong Kong Baptist University said that in many ways the trip is an effort to not only correct France’s deficit problems, but put relations between China and Europe on more equal footing.

“I think the message is clear, France and the European Union want more reciprocity a more balanced relationship, and also want to take advantage of the Silk Road initiative, but there are a lot of questions which are not going to be resolved by this trip,” Cabestan said.

Like France, economies across the globe want to do more business in the country’s massive market and have more investment come to their shores, but China’s pace of adopting reforms to further open up its doors is feeding a global backlash.

The United States and European Union are currently looking at ways to tighten scrutiny of foreign investments and Macron is an advocate of a tighter screening mechanism in Europe for some sectors. A position he did not hide during the visit. But for now, it’s unclear if anything will change soon.

Some analysts argue that given Chinese President Xi Jinping’s frequent stated opposition to protectionism and support for globalization, he has no choice but to press ahead with reforms and soon. Others, however, are not as convinced, noting Xi’s strong support for state-owned enterprises over the past two years.

Zhang Lun, a political scientist at the Universite de Cergy-Pointoise said that there is still a big push back against western companies gaining a bigger share of China’s market.

“Overall it will be very tough for France to achieve its objective (balancing the deficit), much like (U.S. President) Donald Trump has struggled to balance trade as well. But at the same time, China needs the international market to cope with the growing pressure (to open up more) and its slowing economy,” Zhang said.

If China continues to ignore such calls, however, the relationship is likely to only continue to deteriorate.

Trump Administration Bars Oil Drilling Off Florida

Interior Secretary Ryan Zinke has caved in to pressure from the governor and is banning oil and gas drilling off the Florida coast.

“I support the governor’s position that Florida is unique and its coasts are heavily reliant on tourism as an economic driver,” Zinke said in a statement late Tuesday.

He outright admitted that Florida’s Republican Governor Rick Scott pressured him to put the state’s waters off limits.

Last week, the Trump administration proposed opening nearly all U.S. offshore waters to oil and gas drilling, reversing former Obama administration policies.

The White House has said it wants to make the U.S. more energy independent.

But environmental groups and Republican and Democratic governors from coastal states loudly object. They say oil and gas drilling puts marine life, beaches, and lucrative tourism at risk.

The Pentagon has also expressed misgivings about drilling in the eastern Gulf of Mexico, where naval exercises are held.

The 2010 BP Deepwater Horizon oil spill in the Gulf was the largest such disaster in U.S. history, causing billions of dollars in damage to the Gulf Coast, from Louisiana to Florida, killing more than 100,000 different marine mammals, birds, and reptiles.

Poverty for Syrian Refugees in Lebanon Could Push Children to Marry and Work

Nearly seven years into Syria’s civil war, Syrian refugees in neighboring Lebanon are becoming poorer, leaving children at risk of child labor and early marriage, aid organizations said on Tuesday.

A recent survey by the United Nations children’s agency UNICEF, U.N.’s World Food Program, and refugee agency, UNHCR showed that Syrian refugees in Lebanon are more vulnerable now than they have been since the beginning of the crisis.

Struggling to survive, more than three quarters of the refugees in Lebanon now live on less than $4 per day, according to the survey which was based on data collected last year.

“The situation for Syrian refugees in Lebanon is actually getting worse – they are getting poorer. They are barely staying afloat,” Scott Craig, UNHCR spokesman in Lebanon, told the Thomson Reuters Foundation.

Around 1.5 million refugees who fled Syria’s violence account for a quarter of Lebanon’s population.

The Lebanese government has long avoided setting up official refugee camps. So, many Syrians live in tented settlements, languishing in poverty and facing restrictions on legal residence or work.

“Child labor and early marriage are direct consequences of poverty,” Tanya Chapuisat, UNICEF spokeswoman in Lebanon said in a statement to the Thomson Reuters Foundation.

“We fear this (poverty) will lead to more children being married away or becoming breadwinners instead of attending school,” she said.

According to UNICEF, 5 percent of Syrian refugee children between 5-17 are working, and one in five Syrian girls and women aged between 15 and 25 is married.

Mike Bruce, a spokesman for the Norwegian Refugee Council, said without sufficient humanitarian aid and proper work Syrian families would increasingly fall into debt and more could turn to “negative coping mechanisms” like child labor and marriage.

Cold winter temperatures in Lebanon would also hurt refugees, he said.

“Refugees are less and less able to deal with each shock that they face and severe weather could be one of those shocks,” said Bruce.

Sudan Currency Continues Descent on Black Market Amid Unrest

Sudan’s pound currency weakened to 30.5 pounds to the U.S. dollar on Tuesday from about 29.5 pounds a day earlier, traders said, continuing its fall amid protests over bread prices and an acute shortage of hard currency.

Street protests broke out across the northeastern African country after bread prices doubled in recent days, following a government announcement late last month that it was eliminating subsidies in its 2018 budget as part of austerity measures.

This month Sudan devalued its pound currency to 18 per U.S. dollar from 6.7 pounds to the dollar previously. Hard currency remains scarce in the formal banking system however, forcing importers to resort to an increasingly expensive black market.

“The dollar is rising on a daily basis and there is a strong appetite to buy at any price given its scarcity on the market,” one black market trader told Reuters.

The government has ruled out a market-determined exchange rate and the black market rate for pounds has been steadily weakening against the dollar since late last month, when the devaluation was announced.

“I expect the dollar price to continue to increase in the coming days because companies and importers are buying dollars in large quantities since the beginning of the year because the banks are not meeting their hard currency needs,” another black market trader said.

New Polish PM Fires Top Ministers to Reduce Tensions with EU

Poland’s ruling conservatives fired several senior government ministers on Tuesday in an apparent move to patch up relations with the European Union strained over accusations that Warsaw is subverting rule of law standards.

Facing unprecedented EU legal action over the alleged politicization of Poland’s judiciary, the Law and Justice (PiS) party may want to defuse tensions in other areas such as environment policy and defense, analysts say.

The changes also came with the EU about to embark on negotiations on a new seven-year budget that will decide which member states get what out of the bloc’s coffers – with Poland currently the biggest net recipient.

President Andrzej Duda, acting on recommendations of Prime Minister Mateusz Morawiecki, dismissed Environment Minister Jan Szyszko, who has spearheaded far-reaching logging in an ancient forest that prompted action by the European Court of Justice.

Also losing their job were Defense Minister Antoni Macierewicz, a former anti-communist crusader facing criticism over delays in modernizing the army as well as conflicts with top generals, as well as Foreign Minister Witold Waszczykowski, seen in Brussels as an ineffective diplomat.

The reshuffle removed ministers seen from the EU perspective as combative or ill-informed. It followed the appointment of former bank CEO and finance minister Morawiecki as prime minister, replacing Beata Szydlo, last month at the midpoint of the parliamentary term. PiS faces local elections in late 2018 and legislative and presidential ballots in 2019 and 2020.

“The new (government) should help us build a sovereign Poland within a strong Europe, a Europe of homelands,” Morawiecki said after the new appointments were announced.

The feud between Brussels and Warsaw’s eurosceptic government has emerged as a central element of mounting tensions between wealthier western EU members and the ex-communist east amid a wider debate over the bloc’s future.

Many westerners are keen for EU countries to integrate further in the wake of Britain’s shock decision to leave the bloc, but this is strongly opposed by nationalist-minded politicians dominating eastern EU countries such as Poland and Hungary.

Questions Whether Gesture Will Work

It remains to be seen whether Morawiecki will improve Warsaw’s relations with EU headquarters in Brussels. He travels there later on Tuesday to meet top EU officials.

Poland could face the suspension of its EU voting rights if it fails to strike a compromise on democracy and rule of law issues with Brussels, although Hungary’s like-minded government has threatened to veto such a move.

Judicial reforms at the heart of the dispute with Brussels are seen by PiS as a fundamental element of its efforts to overhaul Poland’s democratic institutions.

“The president has already signed judiciary legislation into law so it seems the conflict is irresolvable here,” said Piotr Buras, head of the Warsaw office of the European Council on Foreign Relations think tank.

In a sign that policy is unlikely to change, Justice Minister Zbigniew Ziobro kept his job. New rules had given Ziobro powers to appoint the heads of lower-level courts as well as exercise oversight over prosecutors.

The PiS believes reforms are needed because the country has lost sight of its Catholic soul and is steeped in mentality and power structures dating to the post-war communist era. Critics say that the government’s efforts to wield control over courts and public media are tilting Poland towards authoritarian rule.

Szyszko had attracted widespread criticism domestically over moves to lift limits on hunting and felling of trees on private property – which led to massive logging in areas of Poland.

Radziwill has struggled to contain widespread protests by medical residents in recent months over working conditions, which have exacerbated staffing shortages in some notoriously underfunded hospitals.

The outgoing defense minister has been the PiS investigator into the 2010 plane crash over Russia that killed President Lech Kaczynski – the twin brother of current PiS leader Jaroslaw Kaczynski – and dozens of senior officials.

Kaczynski and Macierewicz believe the crash may have been caused by foul play and not pilot error, which was the official cause returned by an investigation by the previous centrist government and is believed by the majority of Poles.

Trump to Attend Davos World Economic Forum

President Donald Trump is planning to attend the World Economic Forum in the Swiss ski resort of Davos later this month.

White House press secretary Sarah Huckabee Sanders says in a statement that the president welcomes the opportunity to promote his “America First” agenda with world leaders.

 

Sanders says Trump wants to promote his policies for strengthening American businesses, industries and workers.

 

The annual gathering of global political and business elites is scheduled to take place from January 23-26 in Switzerland.

 

American presidents rarely attend. Then-vice president Joe Biden attended last year.

 

The New York Times first reported on Trump’s plans to attend the forum.

 

Erdogan Accuses US of ‘Political Coup Attempt’

Turkish President Recep Tayyip Erdogan Tuesday said a sanctions-busting court case in New York involving Turkish nationals is a “political coup attempt” against him and his government. With Erdogan also threatening military action against a key U.S. ally in Syria, relations between the NATO allies could deteriorate further.

Erdogan alleged the conviction of a Turkish state banker in the federal case is the latest attempt by the FBI and CIA to unseat him. He made the comment while addressing members of his AK Party in parliament.

“Those who could not succeed in the military coup attempt in Turkey on July 15 [2016], are now searching for a different attempt in our country, he said. He cited the case in the U.S. as “the address of this political coup attempt.”

Ankara also accuses Washington of collaborating with U.S.-based Turkish cleric Fethullah Gulen in the 2016 failed coup that left an estimated 150 people dead. The U.S. denies the accusation.Turkey has asked the U.S. to extradite Gulen, who lives in self-imposed exile in Pennsylvania and has denied all involvement in the coup attempt.

Bilateral relations between the NATO allies, already deeply strained since the coup attempt, have been further exacerbated by the conviction in New York of Mehmet Hakan Atilla, a senior executive of Halkbank, on charges of violating U.S. sanctions against Iran.

The repercussions of that conviction could lead to a further ratcheting up of tensions, warned analyst Atilla Yesilada of Global Source Partners.

“I see an escalation of the crisis,” he said. “The United States could threaten a wide range of sanctions; even the threat would cast a long shadow on the Turkish banking system. There would be immense difficulties for Turkish entities to borrow abroad.”

Turkey needs to borrow around $16 billion a month to cover its financial obligations.

Erdogan also threatened Tuesday to attack the Syrian Kurdish militia, the YPG, a key U.S. ally in the war against Islamic State. Ankara considers the militia a terrorist organization linked to an ongoing insurgency in Turkey.

Diplomatic columnist Semih Idiz of the al-Monitor website said the threat could be an effort to pressure Washington

“There is definite brinkmanship on the part of Turkey,” he said. “There is no doubt about that and there is no guarantee it will get what it wants. But Ankara is banking on the fact that Turkey is vitally strategic for Washington and somewhere it can’t be avoided, not that Turkey is courting Russia and all this. So I think Erdogan is trying to apply pressure to reduce whatever penalty is coming.”

To U.S. unease, Turkey is increasingly deepening relations with Russia. Erdogan is also looking to France after a visit last week to Paris, with pro-government media touting France as a more reliable ally than the United States.

But with both Paris and Moscow also supporting the Syrian Kurdish militia, analysts suggest Ankara is unlikely to carry out its threats against the group. They say if the current deterioration in relations with Washington continues, Ankara’s search for other allies is likely to intensify.

13,000 Tourists Stuck in Matterhorn Town amid Avalanche Risk

Swiss authorities near the famed Matterhorn peak have closed ski slopes, hiking trails, cable cars, roads and train service into the nearby town of Zermatt amid a heightened risk of avalanches, stranding some 13,000 tourists in the town.

 

Janine Imesch of the Zermatt tourism office says power has been restored in the town and no people were at risk because authorities shuttered access to the nearby ski slopes and hiking trails a day earlier. Imesch says Tuesday “there is nothing to panic about, everything is fine.”

 

The office’s website earlier indicated that arrivals and departures from the town were not possible. It noted a “power breakdown all over Zermatt” and called on people to “stay at home” so as not to disrupt snow clearing crews.

Google Faces Lawsuit Accusing It of Discriminating Against Conservative White Men

Two former employees of Google have accused the tech giant of discriminating against conservative white men, in a class action lawsuit filed Monday.

 

One of the accusers, James Damore, was fired from the company last year after writing a memo defending the gender gap in Silicon Valley tech jobs as possibly a matter of biological differences between men and women.

 

Damore and David Gudeman, another former engineer at the Google, filed the suit at the Santa Clara Superior Court in California, alleging discrimination and retaliation.

 

The two argue in their suit that Google uses illegal hiring quotas to fill jobs with women and minority applicants.

“Google’s management goes to extreme — and illegal — lengths to encourage hiring managers to take protected categories such as race and/or gender into consideration as determinative hiring factors, to the detriment of Caucasian and male employees,” the complaint stated.

 

The suit also accuses the company of not protecting employees with conservative viewpoints, including employees who support U.S. President Donald Trump.

 

“Damore, Gudeman and other class members were ostracized, belittled, and punished for their heterodox political views, and for the added sin of their birth circumstances of being Caucasians and/or males,” the lawsuit said.

 

Google said it looks forward to defending itself against the allegations in court.

 

Google fired Damore in August after he wrote an internal memo that was later made public in which he said that “genetic differences” may explain “why we don’t see equal representation of women in tech and leadership.”

 

Google chief Sundar Pichai said “portions of the memo violate our code of conduct and cross the line by advancing harmful gender stereotypes in our workplace.”

 

In Friday’s lawsuit, Damore said his memo was intended to remain internal and said he wrote it as a response to a request for feedback about a recent diversity and inclusion summit he attended.

Pension Crisis Looms as Afghanistan Grapples to Fix Public Finances

In a country not short of problems, a looming pensions crisis that could cripple Afghanistan’s budget in coming years is a new headache for a government dependent on increasingly war-weary foreign donors.

Pension liabilities — set to swallow the equivalent of a third of the current $5 billion budget within 15 years unless something is done — typify accumulated problems the government is now trying to tackle.

“Previously, they kicked the can down the road and it’s snowballing right now and needs to be fixed,” said Deputy Finance Minister Khalid Payenda.

Many countries face pension problems but it is especially unwelcome in Afghanistan, struggling to restore an economy shattered by four decades of war.

Provisions that award government workers with service of 40 years benefits equivalent to full final salary were originally introduced to compensate for low pay.

Many pensioners, who complain that actual benefits are meager and often paid late, would be surprised to hear the system described as generous.

But with no separate pension fund to generate investment income and benefits paid directly from the Treasury, payments are set to spiral out of control as more of almost 900,000 government workers retire over coming years.

“The economics of it doesn’t work. It’s not sustainable and at a certain point it will explode,” Payenda said from his office in the ministry, where he is overseeing a drive to make the budget more transparent and spending more efficient.

“It’s the start of a process but it will take a few years,” he said, adding that it was vital that foreign donors showed “understanding” and do not cut off funds abruptly.

‘Leakages, bloated structures’

Although down since most international troops withdrew in 2014, foreign aid still accounts for 54 percent of the budget.

But donor willingness is not eternal and most funding pledges run only to 2020.

While progress has been made in increasing revenues, preparing for a reduction in aid is urgent, especially given likely disruption around presidential elections next year.

As in each of the past eight years, parliament is wrangling over budget approval, an opaque process that has encouraged backroom deals, waste and corruption.

“There are leakages, bloated structures and there is unnecessary expenditure on conspicuous items,” Payenda said. “We want to see where there are problems and fix them.”

As long as security accounts for 40 percent of spending, Afghanistan’s public finances will be unbalanced and the room for investment to boost revenue in areas like mining or agriculture limited.

But there are many areas where improvements are possible.

Due to weak administrative capacity, funds assigned to ministries are often not fully used, with unspent amounts carried over to following years, reducing accountability and making it harder to track real spending. In the future, the government plans a “use it or lose it” approach.

On pensions, a special fund will need to be set up to separate contributions and benefits from regular Treasury funds.

Both benefits and government contributions may have to be cut, a process fraught with political risk.

But more open processes to allocate funds are key, Payenda said. “Reasonable people will listen and unreasonable ones can’t shout at you because of what the others will think.”

Opposition Lawmakers: Venezuela 2017 Annual Inflation at 2,616 Percent

Prices in Venezuela, which is believed to have the world’s highest inflation, jumped 2,616 percent last year, the country’s opposition-led National Assembly said, as millions suffer from food and medicine shortages during a severe economic crisis.

Opposition politicians, whose numbers are broadly in line with analysts’ estimates, on Monday put December’s inflation figure alone at 85 percent, well into hyperinflation territory for which the benchmark is usually 50 percent.

“Inflation in December alone is greater than accumulated inflation (over the whole year) for all of Latin America,” said lawmaker José Guerra.

Venezuelan authorities did not respond to a request for comment.

The country’s minimum wage went up 40 percent in January but still is worth just over $2 per month on the black market exchange, where the bolivar currency has weakened about 35 percent against the dollar in the last month alone.

Hundreds of people mobbed some supermarkets on Saturday after authorities promised price cuts.

The central bank has not published inflation or gross domestic product data for two years. However, the money supply expanded by more than 1,000 percent last year.

President Nicolás Maduro says the problems stem from the “economic war” waged by Washington and the opposition against his government. Critics blame the government’s strict currency and price controls.

New Polish Leader Hoping to Mend Fences With EU Partners

Poland’s new prime minister is looking to improve strained relations with partners in the European Union when he arrives in Brussels on Tuesday. 

Mateusz Morawiecki, who replaced Beata Szydlo last month, is expected to stand his ground over several thorny issues that have raised concerns across the EU. 

The Polish government’s stance on justice reform and immigration has prompted so much unease within the EU that a procedure to strip the country of voting rights in the 28-nation bloc has been started. 

“We are expecting Brussels to understand our position,” deputy Foreign Minister Konrad Szymanski said ahead of the introductory bilateral dinner between the new prime minister and EU Commission President Jean-Claude Juncker.  

Blurring separation of powers

EU leaders have questioned whether Poland, a member of the bloc since 2004, respects fundamental democratic rules over recent reforms to the judiciary. 

Juncker’s office sees the reform as blurring the separation of powers and gives the governing Law and Justice too much control over the judges.

Defending the changes, Morawiecki said in a New Year’s address that “as a sovereign state we have the right to mend our justice system.”

Poland’s refusal to take in its share of an EU quota of refugees is another source of tension.

Ahead of the meeting, Morawiecki is set to shuffle his government. The changes will be carefully monitored by top EU officials to see if they signal a more emollient approach to EU standards. 

EU seeks a show of unity

Already resigned to the departure of Britain next year, the EU wants to maintain unity as much as possible this year. 

“There is a kind of accumulated tension that is not convenient to either side and none of the sides wants to further escalate this tension,” said Malgorzata Bonikowska, head of the Center for International Relations think tank. 

Both sides are in a bind. 

The EU already faces a serious rebel in Hungarian Prime Minister Viktor Orban, with his staunch opposition to the EU’s migration policies. Orban could veto any attempt to strip Poland of its voting rights. 

However, Poland has no interest in escalating the crisis either as any road to EU departure could threaten the billions the country receives from EU coffers. In the 2014-2020 budget, Poland has been allocated 86 billion euros ($103 billion) in EU structural and investment funds. A vast majority of Poles support EU membership.