Turkey Fires Over 2700 Over Links to ‘Terror’ Organizations

Turkey dismissed more than 2,700 employees from its public service sector Sunday – the latest firings in a widescale crackdown since a failed military coup in July 2016.

A total of 2,756 people, including academics, soldiers, and military personnel were dismissed on Sunday, accused of links to what Ankara has labeled as terror groups, according to the Official Gazette.

In a separate emergency decree Sunday, Turkey the country’s defense procurement agency was ordered to report to President Recep Tayyip Erdogan instead of the defense ministry. Seventeen Turkish institutions, including two newspapers, were also ordered shut.

Under emergency rule introduced last year following the botched military coup, more than 50,000 people have been arrested and 150,000 others have lost their jobs over suspicion of links to U.S.-based Muslim cleric Fethullah Gulen.

Turkey claims that Gulen and his movement, which it calls the “Fethullah Terrorist Organization” was behind the failed coup in July 2016 and has asked the U.S. to extradite him. Gulen has denied all involvement.

 

China’s Xi Seen Taking More Risks at Home and Abroad in 2018

In 2017, China’s Xi Jinping rose to become the country’s most powerful leader in decades. And as he shoulders more responsibility, analysts say the government in Beijing is likely to take more risks in 2018 at home and overseas, even as it deals with economic challenges at home, a nuclear North Korea and the looming threat of trade tensions with the United States. VOA’s Bill Ide has this report.

Move to Abolish Kosovo War Crimes Court Rattles US, Other Western Allies 

The United States and other Western countries swiftly condemned a move in Kosovo to scrap a war crimes court, warning that if successful, it would hamper efforts for Euro-Atlantic integration.

“It will be considered by the United States as a stab in the back. Kosovo will be choosing isolation instead of cooperation, and I have to say we would hate to turn the clock back for Kosovo on progress when it has come so far,” U.S. Ambassador to Kosovo Greg Delawie said Friday.

The United States has been a key ally and financial backer of Kosovo since it broke away from Serbia and then declared independence in 2008.

“Tonight could be Kosovo’s most dangerous night since the war,’’ British Ambassador Ruairi O’Connell said.

​Lawmakers’ petition

Both ambassadors were at Kosovo’s Parliament building Friday. They and other Western ambassadors met Saturday behind closed doors with Kosovo Prime Minister Ramush Haradinaj to discuss the issue, after 43 lawmakers moved to present a petition by former fighters of the Kosovo Liberation Army, which seeks to amend the 2015 law that governs the court.

Haradinaj said Saturday that he would respect any decision by the parliament.

Isa Mustafa, Kosovo’s former prime minister and an opposition leader, said the proposal was “devastating for our state and very damaging for justice.”

Lawmakers from the governing coalition, which holds a majority, are pressing for a vote to abolish the court. The vote was scheduled for Friday, but it failed twice because of opposition from other parties.

Parliament speaker Kadri Veseli said lawmakers would continue to attempt to vote on the issue in the coming days. The body is now on recess, however, and this issue most likely will not be taken up until sometime in January.

Kosovo Specialist Chambers

The Kosovo Specialist Chambers court, based in The Hague, was set up as a result of U.S. and European pressure on Kosovo’s government to confront alleged war crimes committed by the Kosovo Liberation Army (KLA) against ethnic Serbs.

Former fighters in Kosovo’s independence movement allegedly have collected more than 16,000 signatures for a petition on the law, seeking to extend its jurisdiction to include Serbs, their former adversaries in a war for independence.

Kosovo President Hashim Thaçi said on Twitter, “It’s important that everyone continues to be confident about Kosovo’s future and its democratic processes. Kosovo’s society and leadership remain fully committed to democracy, rule of law, reconciliation, dialogue and relations on an equal and fair basis.”

Thaçi, Haradinaj and Veseli are former KLA commanders.

Against abolishing court

On Saturday, U.S. Ambassador Delawie reiterated on Twitter calls not to abolish the court.

Critics of the court, including former KLA fighters, consider it to be discriminating against Albanians. They insist it would punish victims rather than perpetrators, referring to the Serbian campaign against Kosovo that killed about 10,000 Albanian civilians before NATO started airstrikes on Serbia that forced Belgrade to withdraw its troops in 1999.

Unwise move

But Daniel Serwer, a Balkans analyst and director of the Conflict Management Program, told VOA’s Albanian service Saturday that it would be very unwise to change the mandate of the court.

“Kosovo is a sovereign state, it’s a democracy, and parliamentarians can open any issue they want, but that doesn’t mean it’s wise to open those issues,” said Serwer, a senior fellow at the Center for Transatlantic Relations at the Johns Hopkins School of Advanced International Studies.

He maintains those who are pushing these moves are trying to escape accountability.

“If there are people who were responsible for any wrongdoing, they should be brought to justice,” Serwer said. “Just because you flew the flag of protecting human rights and protecting Albanians from an autocratic and brutal Serbian regime doesn’t mean that you never did anything wrong in the way that you conducted that fight.”

Court review

The court was expected to review accusations that KLA fighters were involved in killings, illegal detentions, persecution and abductions of Serbs, Roma and Kosovo Albanians suspected as collaborators with the Serbian regime during and after the 1998-99 conflict.

Serwer said the International Criminal Tribunal for the former Yugoslavia in The Hague, which closed its doors this month, brought to justice Serbs responsible for crimes, but he notes the Kosovo court would handle alleged wrongdoings that happened after the formal hostilities were over.

The separate U.N. war crimes tribunal in The Hague convicted some Serbian military commanders for actions against ethnic Albanian separatists in Kosovo during Belgrade’s intervention into the conflict.

Kosovo declared its independence from Serbia in 2008 and is recognized by more than 110 countries, including most Western nations, though not by Serbia itself, Serbia’s key ally Russia, or China.

Italy’s Ruling Party Slides Further in Polls as Election Nears

Italy’s ruling Democratic Party (PD), hit by internal divisions and a banking scandal, is continuing to slide in opinion polls, with a new survey on Saturday putting it more than six percentage points behind the anti-establishment 5-Star Movement.

The survey by the Ixe agency, commissioned by Huffington Post Italia, came days before parliament is expected to be dissolved to make way for elections in March.

It gave the center-left PD just 22.8 percent of voter support, down almost five points in the last two months, compared with 29.0 percent for 5-Star, which has gained almost two points in the same period.

Silvio Berlusconi’s center-right Forza Italia (Go Italy!) is given 16.2 percent, with its right-wing allies Northern League and Brothers of Italy at 12.1 percent and 5.0 percent, respectively.

This bloc is expected to win the most seats in the election but not enough for an absolute majority, resulting in a hung parliament.

With the PD’s support eroding in virtually all opinion polls, several political commentators have speculated that its leader, Matteo Renzi, may choose or be forced to announce he will not be the party’s candidate for prime minister at the election.

Renzi has given no indication so far he will take this step.

The PD has split under his leadership, with critics complaining he has dragged the party to the right.

Breakaway groups united this month to form a new left-wing party called Free and Equal (LeU), which now has 7.3 percent support, according to Ixe.

The PD’s popularity seems to have also been hurt by a parliamentary commission looking into the collapse of 10 Italian banks in the past two years.

The commission’s findings have put the PD on the defensive, allowing the opposition to claim a conflict of interest involving one of Renzi’s closest allies who was active in trying to save a bank where her father was a board member.

Macedonia’s Largest Opposition Party Appoints New Leader

Macedonia’s main opposition party, the rightist VMRO-DPMNE, formally replaced its leader, Nikola Gruevski, on Saturday and appointed Hristijan Mickoski, a technocrat, as his successor.

Gruevski, 47, resigned this month following an election defeat last year and unrest that rocked the small Balkan country in April.

In his speech to the party’s convention on Saturday, Gruevski said that a key reason for VMRO-DPMNE’s fall from power was his refusal to yield to what he described as international and domestic pressure to accept a compromise in a dispute with Greece.

Macedonia, which won independence in 1991 from then-federal Yugoslavia, has made little progress toward European Union and NATO membership because of a long-running dispute with Greece, which claims Macedonia’s name represents a territorial claim to its province with the same name.

“We wanted a fair compromise and a name solution, but not under dictate,” Gruevski said.

Gruevski’s successor, Mickoski, 41, a relative novice in politics, became VMRO-DPMNE secretary-general earlier this year.

He served in Gruevski’s government as the general manager of ELEM, Macedonia’s state-owned power plants managing company.

US Holiday Travel Numbers Up

Americans are traveling in record numbers this season, according to the American Automobile Association’s (AAA) annual estimate, which forecasts more than 107 million will travel by road, rail or air between now and the start of 2018.

Despite higher gas prices, travel volume is expected to be 3.1 percent higher than last year’s holiday season, the association said.

AAA said this season marks the ninth consecutive year of rising year-end holiday travel in the United States. Since 2005, it said, holiday travel has grown by 21.6 million, an increase of 25 percent.

The majority of travelers, 97.4 million, will make their way to their destinations by road, while 6.4 million people are expected to fly to see family and friends or to take holiday vacations. Only 3.6 million are expected to take to trains, buses or cruise ships for the holiday.

Apparently, not all holiday travelers are making family visits.

AAA said, for the second year in a row, the top destinations for holiday travel are Orlando, Florida, and Anaheim, California – the homes of theme parks Walt Disney World and Disneyland.

Sunny destinations also make up the next seven entries on the top 10 destinations: Cancun, Mexico; Hawaii, Jamaica, Dominican Republic and several locations in Florida. The only non-beach destination on the list? No. 10, New York City.

 

US to Sell Lethal Weapons to Ukraine

The U.S. is providing Ukraine with lethal weapons, in an effort to help the country with its fight against Russian-backed separatists in the eastern part of the country.   

The U.S. State Department said in a statement Friday that the decision to provide Ukraine with “enhanced defensive capabilities” is in keeping with the “effort to help Ukraine build its long-term defense capacity, to defend its sovereignty and territorial integrity.”

The statement added that the “U.S. assistance is entirely defensive in nature.”

An ABC-TV news report issued before the announcement said the “The total defense package of $47 million includes the sale of 210 anti-tank missiles and 35 launchers.”  The State Department did not confirm that those weapons would be among those supplied.

U.S. President Donald Trump has called for better relations with Moscow, but the arms deal with Kyiv is seen as a likely threat to efforts toward improving ties.

Earlier this month, U.S. Secretary of State Rex Tillerson warned Russia that the stand-off over Ukraine was the single most important obstacle to warmer ties between the two countries.

 

Scores of Firefighters Rush to Put Out London Zoo Blaze

More than 70 firefighters tackled a blaze at London Zoo on Saturday after a fire broke out at a cafe and shop at the attraction. No animals were reported injured.

The blaze broke out shortly after 0600 GMT, London Fire Brigade said. The fire was near an area where visitors can handle and feed animals but none were thought to have been involved.

“The fire at @zsllondonzoo is now under control but crews will remain on the scene throughout the morning damping down the fire which has affected a cafe and a shop,” the fire brigade said on Twitter.

Ten fire engines were sent to the zoo in Regent’s Park in central London. The fire brigade had earlier said that about three-quarters of the Adventure Cafe and a gift shop were alight. The cause of the fire was not yet known.

The attraction, the world’s oldest scientific zoo, which dates it origins back to 1826, houses 20,166 animals, according to its inventory for 2017.

Bitcoin’s Roller-coaster Ride May Get Wilder

What’s a bitcoin worth? Lately nobody knows for sure, but after a wild ride Friday, it’s worth a good deal less than it was Thursday.

After losses over the last few days, the digital currency fell as much as 30 percent overnight in Asia, and the action became so frenzied that the website Coinbase suspended trading. It later made up much of that ground, and slumped 9.5 percent to $14,042 Friday, according to the tracking site CoinDesk.

Experts are warning that bitcoin is a bubble about to burst, but things might get crazier before it does: A lot of people have heard of bitcoin by now, but very few people own it.

“Bubbles burst when the last buyers are in,” said Brett Ewing, chief market strategist for First Franklin. “Who are the last buyers? The general public, unfortunately.”

1,000 people own 40 percent

Ewing said 40 percent of bitcoin belongs to just 1,000 people, and hedge funds and other major investors are going to start buying it soon. But those funds may buy bitcoin and also protect themselves by placing bets that it will fall. Retail investors may just buy it only to see it fall.

“I think investors should approach it with caution and I think many people will dive into it not understanding what it is,” he said.

As bitcoin skyrocketed this month, the volume of trading was unprecedented as investors hoping to catch a ride up piled in. Prices have risen so fast, the fall on Friday returned the price of bitcoin only to where it was trading two weeks ago.

From tea to blockchain overnight

The volatility has created a circuslike atmosphere. Some companies that have added the word “bitcoin” or related terms to their names to get in on the action. The craziest thing is, it’s worked.

Long Island Iced Tea Corp. until this week had been known for its peach-, raspberry-, guava-, lemon- and mango-flavored drinks. Then, on Thursday, the company announced a radical rebranding. It’s changing its name to Long Blockchain Corp., shifting its primary focus from iced tea to “the exploration of and investment in opportunities that leverage the benefits of blockchain technology.”

Blockchain is a ledger where transactions of digital currencies, like bitcoin, are recorded.

Shares in Long Island Iced Tea soared 200 percent in one day.

The Hicksville, New York, company did what investors are doing, hitching a ride on a currency that raced from less than $10,000 at the end of November to almost $20,000 on Sunday. And it cost less than $1,000 at the beginning of the year.

Crash every three months

The rise of price of bitcoin, which is still difficult to use if you actually want to buy something, has led to heated speculation about when the bubble might burst.

The currency has been, if nothing else, highly elastic, bouncing back every time it crashes, which occurs about once every quarter.

It fell 11.5 percent over two days in early December and 21.5 percent over five days in November.

Curiosity has now driven bitcoin to the futures market, where investors bet on which direction it will go.

Bitcoin futures started trading on two major exchanges, the Cboe and CME, this month. Those futures fell about 8 percent Friday.

Investor beware

If people get burned, it won’t be because they were not warned.

The Securities and Exchange Commission put out a statement last week warning investors to be careful with bitcoin and other digital currencies. The Commodities Futures Trading Commission has proposed regulating bitcoin like a commodity, similar to gold or oil.

Financial Industry Regulatory Authority, a financial watchdog, issued a similar warning recently.

Spanish PM Rebuffs Catalan Leaders’ Demand for Independence Talks

Spain’s prime minister has rejected demands for talks from Catalonia’s independence leaders, following regional elections in the semi-autonomous region Thursday which gave pro-secessionist parties a slim majority of two seats in the Catalan parliament.

The election was called after Madrid sacked the Catalan government, after it tried to declare independence following a disputed referendum in October.

​The former Catalan President Carles Puigdemont, who is in exile in Belgium, called for talks Friday with Spanish Prime Minister Mariano Rajoy in a location outside Spain.

“Catalonia wants to be an independent state. This is the wish of the Catalan people,” Puigdemont told reporters in Brussels.

Puigdemont would face arrest if he tried to return to Spain. Many independence leaders have been jailed on charges of sedition, rebellion and misuses of public funds. The investigation was widened Friday to include several more Catalan politicians.

Rajoy said the election result does not affect the criminal charges.

“I hope there is a government that abandons unilateral decision-making and does not place itself above the law,” he told reporters in Madrid. He added that his first point of contact would be with the leader of the pro-unity Ciudadanos’ or Citizens party, which won the most votes, though short of the number needed to form a government.

​Back where they started

After the political convulsions of the past three months, Catalonia and Spain are back to square one, said Xabier Barrena, a political columnist for the El Periodico newspaper.

“Catalonia is living in an infinite stalemate. There was a considerable increase in participation in the parliamentary elections this time, and despite this, the result is the same as in 2015. Both then, and now, the solution must be a legitimate referendum,” he said.

The most likely election outcome remains a coalition of the three pro-independence parties, but their options appear limited, Barrena said.

“Any unilateral declaration (of independence) would elicit a violent response from the state,” he said. “So, they will avoid that course.”

WATCH: Spanish PM Rebuffs Catalan Leaders’ Demand for Talks on Independence Following Election

​Economic uncertainty

Meanwhile fears are growing that the uncertainty is hitting Catalonia’s economy. Carlos Rivaduro, head of Catalonia’s Association of Small Business, says the global image of Barcelona and Catalonia is taking a hit.

“Who wants to do business in a place where politicians are promoting division, exclusion, lack of solidarity?” he said.

The political tensions are given extra spice as the Barcelona football team travels to play Real Madrid Saturday. For many, the sporting rivalry trumps politics.

The Christmas break offers a few days respite before the political battle kicks off once again.

Nestle Warned It Lacks Rights to California Spring Water

Nestle, which sells Arrowhead bottled water, may have to stop taking millions of gallons of water from Southern California’s San Bernardino National Forest because state regulators concluded it lacks valid permits.

 

The State Water Resources Control Board notified the company on Wednesday that an investigation concluded it doesn’t have proper rights to pipe about three-quarters of the water it currently withdraws for bottling.

 

“A significant portion of the water currently diverted by Nestle appears to be diverted without a valid basis of right,” the report concluded.

 

Nestle Waters North America was urged to cut back its water withdrawals unless it can show it has valid water rights to its current sources or to additional groundwater.

 

The company, a division of the Swiss food giant, also was given 60 days to submit an interim compliance plan.

 

“We are disappointed by the fact that we have just received a copy of the report from the State Water Resources Control Board and that others appear to have received it much sooner,” Nestle said in a statement Thursday. “Once we have had an opportunity to review the report thoroughly, we will be in a position to respond.”

 

The move was applauded by activists who have fought to turn off Nestle’s tap in the forest.

 

Amanda Frye, who filed one of the complaints that prompted the investigation, said she was pleased with the result although she hadn’t read the entire report.

 

“I feel like it’s a victory,” Frye told the Desert Sun of Palm Springs. “I’m happy that the State Water Resources Control Board did pursue it and look into it. I feel that they’re protecting the people of California.”

 

Nestle took about 32 million gallons of water from wells and water collection tunnels in the forest last year. A long water board investigation concluded that it only had the right to withdraw 26 acre-feet per year, or about 8.5 million gallons.

 

Nestle has contended that it inherited rights dating back more than a century to collect water from the forest northeast of Los Angeles. It uses the water in its Arrowhead Mountain Spring Water.

 

Opponents of the water withdrawal have long sought to turn off Nestle’s tap, arguing that it lacked proper permits and that the water usage could harm the local environment and wildlife, particularly in the midst of California’s drought.

 

In 2015, the U.S. Forest Service was sued by environmental and public interest groups who allege the Swiss-based company was being allowed to operate its Strawberry Canyon pipeline on a permit that expired in 1988. However, the court ruled that the company could continue water operations while its application to renew the permit was pending.

Italy Airlifts Refugees From Libya as Criticism Mounts

Italy organized a first airlift of refugees from Libyan detention centers to Rome after coming under international criticism for helping the Libyan coast guard block migrants from leaving by boat.

The Interior Ministry said the refugees were due to arrive later Friday at Rome’s Pratica di Mare military base. Interior Minister Marco Minniti and the head of the Italian bishops’ conference, Cardinal Gualtiero Bassetti, were to welcome them.

The U.N. refugee agency’s Libya representative, Roberto Mignone, tweeted that he was traveling with 162 “vulnerable” refugees. Italy said the women, children and elderly people were all entitled to international protection. It did not say what countries they came from.

Italy and the EU have come under criticism from human rights groups for helping the Libyan coast guard more effectively patrol its coasts to prevent smugglers from operating. The groups say the policy has condemned refugees to torture, abuse and other inhuman treatment at the hands of militias who control lawless Libya’s detention centers.

Italy has defended the policy, saying it has helped save lives and reduced by 33 percent the number of migrants who arrived in Italy this year.

As of Friday, Italy had taken in some 118,914 migrants, compared to the record 179,769 who arrived in 2016. The International Organization of Migration recorded more than 3,100 deaths among migrants making the Mediterranean crossing in 2017, but the actual number is likely higher since an unknown number of boats sink without rescue crews ever knowing.

The airlift organized by the Italian government follows the “humanitarian corridors” initiated by the Sant’Egidio Community and other Christian churches that have already brought about 1,000 people to Italy, most from refugee camps in Lebanon.

In addition to the Italian airlift, African nations have begun repatriating their citizens from Libya.

The United Nations has vowed to close the government-controlled detention centers in Libya to prevent the migrants from being trafficked and enslaved.

UK Passports to Return to ‘Iconic Blue and Gold’ After Brexit

Britain announced Friday it would return to “iconic” blue and gold passports after it formally leaves the European Union in 2019.

Since 1988, British passports have been issued with a burgundy sleeve along with other European Union countries.

Supporters of Brexit hailed the decision as a reclaiming of Britain’s independence from the EU, while opponents have mocked their attachment to something superficial and have voiced concern that Brexit will diminish the country’s standing in the world.

“The UK passport is an expression of our independence and sovereignty — symbolizing our citizenship of a proud, great nation,” Prime Minister Theresa May said on Twitter.

“That’s why we have announced that the iconic blue passport will return after we leave the European Union in 2019.”

But a number of lawmakers, including some from May’s own party, said Friday the changing of a passport color would not appease those who opposed Brexit, many of whom are more concerned about economic issues and relations with Europe.

The announcement comes a week after EU leaders agreed to allow Britain to move onto the next phase of Brexit negotiations. The second phase of Brexit will be focused on post-Brexit relations between London and the European Union and any potential future trade agreements.

Kosovo President Urges Approval of Montenegro Border Deal

Kosovo’s president has urged political parties to intensify efforts to ratify a border demarcation deal with Montenegro which is set as a precondition by the European Union for a visa-free regime for the country’s citizens.

In his end-of-year speech to parliament Friday, Hashim Thaci urged all local actors to speed up efforts to find a solution “within the next weeks.”

“Without losing time we should ratify the border demarcation deal with Montenegro. Ratification of such a deal would give an end to the unfair isolation of the Republic of Kosovo’s citizens,” said Thaci.

The 2015 deal has been contested by the opposition, which says Kosovo is ceding territory — a claim denied by the previous government and international experts. The protesters disrupted parliamentary work, using tear gas canisters, blowing whistles and throwing water bottles.

The government has re-sent the border issue to parliament, which has yet to set the time of its debate.

The opposition was not in the hall to follow Thaci, who also urged lawmakers to approve an agreement signed by the government to establish an association of municipalities with an ethnic-Serb population.

“The EU and many other partner countries are disillusioned with our inability to comply with the pledges,” he said, adding that the country’s credibility and reputation were at stake as it aims for EU and NATO membership.

Kosovo declared independence from Serbia in 2008, which Belgrade has not recognized.

Bitcoin Plunges Below $12,000, Heads for Worst Week Since 2013

Bitcoin plunged by a quarter to below $12,000 on Friday as investors dumped the cryptocurrency in manic trading after its blistering ascent to a peak close to $20,000 prompted warnings by experts of a bubble.

It capped a brutal week that had been touted as a new era of mainstream trading for the volatile digital currency when bitcoin futures debuted on CME Group Inc, the world’s largest derivatives market on Sunday.

Friday’s steep fall bled into the U.S. stock market, where shares of companies that have recently lashed their fortunes to bitcoin or blockchain — its underlying technology — took a hard knock in early trading.

The biggest and best-known cryptocurrency had seen a staggering twentyfold increase since the start of the year, climbing from less than $1,000 to as high as $19,666 on the Luxembourg-based Bitstamp exchange on Sunday and to over $20,000 on other exchanges.

Bitcoin has fallen each day since, with losses accelerating on Friday.

In the futures market, bitcoin one-month futures on Cboe Global Markets were halted due to the steep price drop, while those trading on the CME hit the limit down threshold.

In the spot market, bitcoin fell to as low as $11,159, down more than 25 percent on the Luxembourg-based Bitstamp exchange, its largest one-day drop in nearly three years. For the week, it was down around a third — its worst performance since April 2013.

“After its parabolic-like rally, a crash was imminent and so it has proved,” said Fawad Razaqzada, market analyst at Forex.com in London. “Investors may have also been put off buying bitcoin at those elevated levels amid repeated warnings from experts about the way it had climbed near $20,000.”

“A manic upward swing led by the herd will be followed by a downturn as the emotional sentiment changes,” said Charles Hayter, founder and chief executive of industry website Cryptocompare in London. “A lot of traders have been waiting for this large correction.”

“With the end of the year in sight a lot of investors will be taking profits and saying thank you very much and closing their books for the holiday period,” he added.

Warnings about the risks of investing in the unregulated market have increased — Denmark’s central bank governor called it a “deadly” gamble —  and there have been worries about the security of exchanges on which cryptocurrencies are bought and sold.

South Korean cryptocurrency exchange Youbit said on Tuesday it is shutting down and is filing for bankruptcy after it was hacked for the second time this year.

Coinbase, a U.S. company that runs one of the biggest exchanges and provides digital “wallets” for storing bitcoins, said on Wednesday it would investigate accusations of insider trading, following a sharp increase in the price of a bitcoin spin-off hours before it announced support for it.

Crypto-rivals

As rival cryptocurrencies slid along with bitcoin, the total estimated value of the crypto market fell to as low as $440 billion, according to industry website Coinmarketcap, having neared $650 billion just a day earlier.

But other cryptocurrencies surged this week, with investors moving into cheaper digital coins, rather than cashing out of the sector.

Ethereum, the second-biggest cryptocurrency by market size, soared to almost $900 earlier in the week, from around $500 a week earlier. Ripple, the third-biggest, has more than quadrupled in price since Monday.

Stephen Innes, head of trading in Asia-Pacific for retail FX broker Oanda in Singapore, said that there have also been moves out of bitcoin into Bitcoin Cash, a clone of the original cryptocurrency. Oanda does not handle trading in bitcoin.

“Most of it is unsophisticated retail traders getting burned badly,” Innes said on bitcoin’s recent retreat.

While some say the launch by CME and its rival Cboe Global Markets of bitcoin futures over the last two weeks has given the digital currency some perceived legitimacy, many policymakers remain skeptical.

Bitcoin is known to go through wild swings. In November, it tumbled almost 30 percent in four days from $7,888 to $5,555. In September, it fell 40 percent from $4,979 to $2,972.

Reporting by Gertrude Chavez-Dreyfuss in New York and Jemima Kelly in London; Additional reporting by Shinichi Saoshiro in Tokyo; Editing by Keith Weir and Susan Thomas.

UN Security Council to Vote Friday on Additional North Korea Sanctions

The U.N. Security Council is expected to vote Friday on another round of targeted sanctions aimed at further restricting North Korea’s crude oil imports, which fuel its illicit weapons programs.

The proposed sanctions come in response to Pyongyang’s November 28 launch of a newly developed intercontinental ballistic missile (ICBM) called a Hwasong-15, which the North Koreans claim is capable of delivering nuclear warheads anywhere in the continental United States. 

It was Pyongyang’s third ICMB test this year and its 20th ballistic missile launch of 2017.

The United States drafted the text and negotiated it with China. It was circulated to the wider council membership on Thursday, and a vote is scheduled Friday at 1 p.m. EST (1800 UTC).

“We hope there will be a consensus and vote — the sooner, the better — and we are on board,” France’s U.N. ambassador, Francois Delattre, told reporters Thursday.

‘A good message’

“We support it wholeheartedly and we hope that it will be unanimous,” Japanese Ambassador Koro Bessho said. “I think it will be sending a good message if we can pass it, and that’s what I think will happen.”

The draft resolution, seen by VOA, seeks to cap crude oil exports to North Korea at current levels, not exceeding 4 million barrels per year. It would allow exemptions only on a case-by-case basis with Security Council approval.

The text also seeks to impose a ban on 90 percent of refined petroleum products exported to North Korea, as well as on all industrial machinery and some transport vehicles.

An earlier round of sanctions this year called on states not to renew work visas for North Korean laborers. The new draft goes a step further, requiring all North Koreans working abroad and their minders to return home within a year. 

Council members have expressed concern that the regime sends its citizens abroad to perform manual labor and then confiscates all or part of their wages to help finance its nuclear and ballistic missile programs. 

Deceptive shipping alleged

Some council members have also noted that North Korea appears to be illegally exporting coal and acquiring prohibited oil through deceptive shipping practices. The proposed text seeks to tighten maritime interdiction and inspection regimes. 

There are also 19 new individuals, most of them in the banking sector, proposed for travel bans and asset freezes, as well as the Army ministry. 

If approved, this will be the third round of targeted sanctions imposed by the Security Council this year in a bid to stop Pyongyang from advancing its illicit weapons programs and bring it to the negotiating table.

Papa John’s Founder Out as CEO, Weeks After NFL Comments

Papa John’s founder John Schnatter will step down as CEO next month, about two months after he publicly criticized the NFL leadership over national anthem protests by football players — comments for which the company later apologized.

Schnatter will be replaced as chief executive by Chief Operating Officer Steve Ritchie on Jan. 1, the company announced Thursday. Schnatter, who appears in the chain’s commercials and on its pizza boxes, and is the company’s biggest shareholder, remains chairman of the board.

Earlier this year, Schnatter blamed slowing sales growth at Papa John’s — an NFL sponsor and advertiser — on the outcry surrounding players kneeling during the national anthem. Former San Francisco 49ers quarterback Colin Kaepernick had kneeled during the national anthem to protest what he said was police mistreatment of black men, and other players started kneeling as well. 

“The controversy is polarizing the customer, polarizing the country,” Schnatter said during a conference call about the company’s earnings on Nov. 1.

Papa John’s apologized two weeks later, after white supremacists praised Schnatter’s comments. The Louisville, Kentucky-based company distanced itself from the group, saying that it did not want them to buy their pizza.

Ritchie declined to say Thursday if the NFL comments played a role in Schnatter stepping down, only saying that it’s “the right time to make this change.”

Tougher competition

Shares of Papa John’s are down about 13 percent since the day before the NFL comments were made, reducing the value of Schnatter’s stake in the company by nearly $84 million. Schnatter owns about 9.5 million shares of Papa John’s International Inc., and his total stake was valued at more than $560 million on Thursday, according to FactSet. The company’s stock is down 30 percent since the beginning of the year.

Schnatter, 56, founded Papa John’s more than three decades ago, when he turned a broom closet at his father’s bar into a pizza spot. And it has since grown to more than 5,000 locations. Schnatter has also become the face of the company, showing up in TV ads with former football player Peyton Manning. Schnatter stepped away from the CEO role before, in 2005, but returned about three years later.

Ritchie said new ads would come out next year. The company said later Thursday that it had “no plans to remove John from our communications.”

The Papa John’s leadership change comes as the pizza chains that once dominated the fast-food delivery business face tougher competition from hamburger and fried-chicken chains that are expanding their delivery business. McDonald’s Corp., for example, expects to increase delivery from 5,000 of its nearly 14,000 U.S. locations by the end of the year.

New strategy

Ritchie said his focus as CEO will be making it easier for customers to order a Papa John’s pizza from anywhere. That’s a strategy that has worked for Domino’s, which takes orders from tweets, text messages and voice-activated devices, such as Amazon’s Echo. Papa John’s customers can order through Facebook and Apple TV, but Ritchie said he wants the chain to be everywhere customers are. 

“The world is evolving and changing,” he said.

Ritchie, 43, began working at a Papa John’s restaurant 21 years ago, making pizzas and answering phones, the company said. He became a franchise owner in 2006 and owns nine locations. He was named chief operating officer three years ago. Ritchie said plans for him to succeed Schnatter were made after that.

Russia’s Globex Bank Says Hackers Targeted Its SWIFT Computers

Hackers tried to steal 55 million rubles ($940,000) from Russian state bank Globex using the SWIFT international payments messaging system, the bank said Thursday, the latest in a string of attempted cyberheists that use fraudulent wire-transfer requests.

Globex President Valery Ovsyannikov told Reuters that the attempted attack occurred last week, but that “customer funds have not been affected.”

The bank’s disclosure came after SWIFT, whose messaging system is used to transfer trillions of dollars each day, warned late last month that the threat of digital heists was on the rise as hackers use increasingly sophisticated tools and techniques to launch new attacks.

SWIFT said in late November that hackers continued to target the SWIFT bank messaging system, though security controls instituted after last year’s $81 million heist at Bangladesh’s central bank have helped thwart many of those attempts.

Sources familiar with last week’s attack on Globex said the bank had spotted the attack and been able to prevent the cybercriminals from stealing all the funds they had sought, according to a report in the Kommersant daily. The hackers withdrew only about $100,000, the report said.

Globex is a part of the state development bank VEB. VEB plans to transfer Globex to the state property management agency, sources familiar with the talks told Reuters this week.

SWIFT representatives declined to discuss the Globex case.

“We take cybersecurity very seriously, and we investigate all threats very seriously, taking all appropriate actions to mitigate any risks and protect our services,” the group said in a statement emailed to Reuters. “There is no evidence to suggest that there has been any unauthorized access to SWIFT’s network or messaging services.”

Brussels-based SWIFT has issued a string of warnings urging banks to bolster security in the wake of the February 2016 cyberheist at the Bangladesh bank, which targeted central bank computers used to move funds through the messaging system.

While SWIFT has declined to disclose the number of attacks or identify any victims, details of some cases have become public, including attacks on Taiwan’s Far Eastern International Bank and Nepal’s NIC Asia Bank.

Shane Shook, a cyberexpert who has helped investigate some hacks targeting the SWIFT messaging network, said that at least seven distinct groups have been launching such attacks for at least five years, though most go unreported.

Two Plead Guilty Over Brawl at Turkish Embassy in Washington

Two Turkish-American men have pleaded guilty to charges stemming from a brawl at the Turkish Embassy in Washington earlier this year,  according to court documents.

Sinan Narin, 45, of Virginia and Eyup Yildirim, 50,  of New Jersey “each pled guilty in the Superior Court of the District of Columbia to one count of assault with significant bodily injury. The pleas, which are contingent upon the Court’s approval, call for each defendant to be sentenced to agreed-upon terms of one year and one day of incarceration.”

Eighteen people, many of whom were members of the Turkish ambassador’s security detail, were indicted for allegedly attacking protesters outside the ambassador’s residence on May 16. All 18 were charged with conspiracy to commit a crime of violence, a felony punishable by a maximum of 15 years in prison. Several faced additional charges of assault with a deadly weapon.

The brawl took place outside the residence of Turkey’s ambassador to Washington shortly after U.S. President Donald Trump met with Turkish President Recep Tayyip Erdogan at the White House.

Video of the protest recorded by VOA’s Turkish service shows what appear to be security guards and some Erdogan supporters attacking a small group of demonstrators.  

Men in dark suits and others were recorded repeatedly kicking one woman as she was curled up on a sidewalk. Another wrenched a woman’s neck and threw her to the ground. A man with a bullhorn was repeatedly kicked in the face.

After police officers struggled to protect the protesters and ordered the attackers to retreat, several suspects dodged the officers and continued the attacks.

The Turkish Embassy claimed that Erdogan’s bodyguards were acting in “self-defense” during the incident, and that the protesters were affiliated with the Turkish left wing PKK or Kurdistan Workers’ Party.

The PKK has waged a three-decade long insurgency in southeast Turkey.

 

US Approves Sale by US Manufacturers of Lethal Weapons to Ukraine

The United States has approved the sale by U.S. manufacturers of lethal defensive weapons to Ukraine.

State Department spokeswoman Heather Nauert confirmed this week that Congress was notified of the matter on December 13.

The legal framework for U.S. manufacturers to sell arms to Ukraine has existed since the Obama administration, Nauert said. 

Nauert noted in remarks to reporters Wednesday that the government itself was not supplying weapons to Ukraine, but only allowing U.S. weapons manufacturers to do so.

The export license covers such weapons as semiautomatic and automatic firearms, the Reuters news agency reported. It includes combat shotguns, silencers, military scopes, flash suppressors and parts.

Administration officials said the equipment approved for sale was valued at $41.5 million. The Washington Post reported that there had been no approval for requests by Ukraine for heavier weapons, like Javelin anti-tank missiles. The newspaper also said Canada had approved similar sales to Ukraine this week. 

Critics of the move say selling lethal arms to Ukraine threatens to escalate tensions between the United States and Russia. 

U.S. Defense Secretary Jim Mattis, on a trip to Kyiv in August, said the Trump administration was “actively reviewing” whether to provide lethal defensive weapons to the war-torn country.

“Defensive weapons are not provocative unless you’re an aggressor, and clearly, Ukraine is not an aggressor,” he said in response to a question about whether Russia might see such a move as a threat.

He also said Washington did not accept Russia’s 2014 annexation of Crimea.

Catalans Head to Polls in Independence Vote

Catalonia holds a regional election Thursday that the Spanish government hopes will strip pro-independence parties of their control of the Catalan parliament and end their campaign to force a split with Spain.

But, though final polls showed separatist and unionist parties running neck-and-neck, an effective pro-independence majority remains a likely outcome that would jolt financial markets and cast a long shadow over national politics.

Spanish Prime Minister Mariano Rajoy called the Dec. 21 vote in October in the hopes of returning Catalonia to “normality” under a unionist government. He sacked its previous government for holding a banned referendum and declaring independence.

Economy

A new separatist majority would further dampen investors’ confidence in Catalonia, which by itself has an economy larger than that of Portugal and is the main driver of Spain’s economic growth. However, pro-independence leaders recently have backed away from demands for unilateral secession.

Voting stations in the affluent region of northeastern Spain will open Thursday at 0800 GMT and close at 1900 GMT. The election is expected to draw a record turnout.

The independence campaign pitched Spain into its worst political turmoil since the collapse of fascist rule and return of democracy in the 1970s. It has polarized public opinion, dented Spain’s economic rebound and prompted a business exodus from Catalonia to other parts of the country.

Thursday’s vote became a de facto referendum on how support for the independence movement has fared in recent months.

​No clear majority

None of the six parties in the Catalan parliament — ranging across the ideological spectrum from separatist Marxists to the Catalan wing of Rajoy’s conservative People’s Party (PP) — are expected on their own to come close to the 68-seat majority.

So, analysts expect the next Catalan government to result from weeks of haggling between parties over viable coalitions.

An analysis of polling data by the Madrid daily El Pais published on Tuesday found that the most likely scenario is separatists securing a majority with the backing or abstention of the Catalan offshoot of anti-austerity party Podemos.

Podemos backs the unity of Spain but says Catalans should be able to have a referendum authorized by Madrid to decide their future. At the same time, Podemos favors a left-wing alliance of Catalan parties that both back and reject independence.

In this, analysts say, Podemos is caught between two options it does not particularly like, but would prefer to back the separatists rather than a coalition involving Rajoy’s PP.

Separatist parties campaigned against the backdrop of Spanish courts investigating their leaders on allegations of rebellion for their roles in the Oct. 1 referendum, which was ruled unconstitutional.

Deposed Catalan President Carles Puigdemont has campaigned from self-imposed exile in Brussels and his former deputy and now rival candidate, Oriol Junqueras, has done so from behind bars at a prison outside Madrid.

In a written interview with Reuters published on Monday, Junqueras struck a conciliatory tone and opened the door to building bridges with the Spanish state.

No Immediate Verdict From Jury at US Trial of Turkish Banker

A jury did not reach a verdict in its first day of deliberations in the trial of a Turkish banker accused of helping Iran evade U.S. sanctions and launder billions of dollars in oil revenue.

Deliberations began early Wednesday afternoon in U.S. District Court in Manhattan after Judge Richard Berman read instructions on the law to jurors. The jury went home four hours later after requesting some pens and coffee.

The trial of Halkbank executive Mehmet Hakan Atilla has featured testimony about bribery and corruption at high levels in Turkey.

Turkish officials have lobbed counteraccusations that U.S. prosecutors are basing the case on evidence fabricated by enemies of the state.

Atilla’s fate rests with federal court jurors who seemed to listen attentively after a juror was dismissed for sleeping.

Pope Francis to Speak at Funeral of Disgraced US Cardinal   

Pope Francis is set to offer a “final commendation” Thursday at the Rome funeral of Cardinal Bernard Law, even as Law’s critics recalled him as the disgraced archbishop of Boston in the United States who covered up the actions of pedophile priests.

The Vatican said Cardinal Angelo Sodano, the dean of the College of Cardinals, will celebrate the funeral mass in St. Peter’s Basilica for Law, who died earlier this week in Rome at the age of 86 after a long illness. Pope Francis will then offer a blessing for Law, as he has done previously at other cardinals’ funerals.

Law oversaw the Catholic church’s archdiocese in Boston in the northeastern U.S. for 19 years before he was forced to resign in 2002 as allegations mounted that he had hidden widespread pedophilia by dozens of parish priests, often moving them from one church to another rather than removing them from the ministry. The archdiocese eventually paid $95 million as compensation to more than 500 victims. 

As he left the U.S. for Rome to become archpriest of the Papal Liberian Basilica of St. Mary Major, Law said, “To all those who have suffered from my shortcomings and mistakes I both apologize and from them beg forgiveness.”

The scandal of abusive priests spread, however, eventually reverberating through several archdioceses in the U.S. and in other countries.

As news of Law’s death became known, the Survivors Network of those Abused by Priests said, “We highly doubt there is a single victim of abuse who will ever receive the same attention, pomp and circumstance by Pope Francis.  

“Every single Catholic should ask Pope Francis and the Vatican why,” the group said. “Why Law’s life was so celebrated when Boston’s clergy sex abuse survivors suffered so greatly? Why was Law promoted when Boston’s Catholic children were sexually abused, ignored, and pushed aside time and time again?”

Law’s successor in Boston, Cardinal Sean O’Malley, reacted to his death by apologizing to the victims of clergy sex abuse.

“I recognize that Cardinal Law’s passing brings forth a wide range of emotions on the part of many people. I am particularly cognizant of all who experienced the trauma of sexual abuse by clergy, whose lives were so seriously impacted by those crimes, and their families and loved ones,” O’Malley said. “To those men and women, I offer my sincere apologies for the harm they suffered, my continued prayers and my promise that the archdiocese will support them in their effort to achieve healing.”

One survivor of the clergy sex abuse, Alexa MacPherson, said at a news conference, “With his passing, I say I hope the gates of hell are open wide to welcome him because I feel no redemption for somebody like him is worthwhile.”

Another victim, Robert Costello, said, “I don’t really consider him a cardinal or a man of God.  There were plenty of priests who knew what was going on but they had their own secrets to hide.”

 

Displaced by Mining, Peru Villagers Spurn Shiny New Town

This remote town in Peru’s southern Andes was supposed to serve as a model for how companies can help communities uprooted by mining.

Named Nueva Fuerabamba, it was built to house around 1,600 people who gave up their village and farmland to make room for a massive, open-pit copper mine.

The new hamlet boasts paved streets and tidy houses with electricity and indoor plumbing, once luxuries to the indigenous Quechua-speaking people who now call this place home.

The mine’s operator, MMG Ltd, the Melbourne-based unit of state-owned China Minmetals Corp, threw in jobs and enough cash so that some villagers no longer work.

But the high-profile deal has not brought the harmony sought by villagers or MMG, a testament to the difficulty in averting mining disputes in this mineral-rich nation.

Resource battles are common in Latin America, but tensions are particularly high in Peru, the world’s No. 2 producer of copper, zinc and silver. Peasant farmers have revolted against an industry that many see as damaging their land and livelihoods while denying them a fair share of the wealth.

Peru is home to 167 social conflicts, most related to mining, according to the national ombudsman’s office, whose mission includes defusing hostilities.

Nueva Fuerabamba was the centerpiece of one of the most generous mining settlements ever negotiated in Peru. But three years after moving in, many transplants are struggling amid their suburban-style conveniences, Reuters interviews with two dozen residents showed.

Many miss their old lives growing potatoes and raising livestock. Some have squandered their cash settlements. Idleness and isolation have dulled the spirits of a people whose ancestors were feared cattle rustlers.

“It is like we are trapped in a jail, in a cage where little animals are kept,” said Cipriano Lima, 43, a former farmer.

Meanwhile, the mine, known as Las Bambas, has remained a magnet for discontent. Clashes between demonstrators and authorities in 2015 and 2016 left four area men dead.

Nueva Fuerabamba residents have blocked copper transport roads to press for more financial help from MMG.

The company acknowledged the transition has been difficult for some villagers, but said most have benefited from improved housing, healthcare and education.

“Nueva Fuerabamba has experienced significant positive change,” Troy Hey, MMG’s executive general manager of stakeholder relations, said in an email to Reuters. MMG said it spent “hundreds of millions” on the relocation effort.

Mining is the driver of Peru’s economy, which has averaged 5.5 percent annual growth over the past decade. Still, pitched conflicts have derailed billions of dollars worth of investment in recent years, including projects by Newmont Mining and Southern Copper.

To defuse opposition, President Pablo Kuczynski has vowed to boost social services in rural highland areas, where nearly half of residents live in poverty.

But moving from conflict to cooperation is not easy after centuries of mistrust. Relocations are particularly fraught, according to Camilo Leon, a mining resettlement specialist at the Pontifical Catholic University of Peru.

Subsistence farmers have struggled to adapt to the loss of their traditions and the “very urban, very organized” layout of planned towns, Leon said.

“It is generally a shock for rural communities,” Leon said.

At least six proposed mines have required relocations in Peru in the past decade, Leon said. Later this month, Peru will tender a $2-billion copper project, Michiquillay, which would require moving yet another village.

‘Everything is Money’

MMG inherited the Nueva Fuerabamba project when it bought Las Bambas from Switzerland’s Glencore Plc in 2014 for $7 billion.

Under terms of a deal struck in 2009 and reviewed by Reuters, villagers voted to trade their existing homes and farmland for houses in a new community. Heads of each household, about 500 in all, were promised mining jobs. University scholarships would be given to their children. Residents were to receive new land for farming and grazing, albeit in a parcel four hours away by car.

Cash was an added sweetener. Villagers say each household got 400,000 soles ($120,000), which amounts to a lifetime’s earnings for a minimum-wage worker in Peru.

MMG declined to confirm the payments, saying its agreements are confidential.

Built into a hillside 15 miles from the Las Bambas mine, Nueva Fuerabamba was the product of extensive community input, MMG said. Amenities include a hospital, soccer fields and a cement bull ring for festivals.

But some residents say the deal has not been the windfall they hoped. Their new two-and-three story houses, made of drywall, are drafty and appear flimsy compared to their old thatched-roof adobe cottages heated by wood-fired stoves, some said.

Many no longer plant crops or tend livestock because their replacement plots are too far away. Jobs provided by MMG mostly involve maintaining the town because most residents lack the skills to work in a modern mine.

Many villagers spent their settlements unwisely, said community president Alfonso Vargas. “Some invested in businesses but others did not. They went drinking,” he said.

Now basics like water, food and fuel – once wrested from the land – must be paid for.

“Everything is money,” Margot Portilla, 20, said as she cooked rice on a gas stove in her sister-in-law’s bright-yellow home. “Before we could make a fire for cooking with cow dung. Now we have to buy gas.”

Ghost Town

Some residents said they have benefited from the move.

The new town is cleaner than the old village, said Betsabe Mendoza, 25. She invested her settlement in a metalworking business in a bigger town.

Portilla, the young mom, says her younger sisters are getting a better education than she did.

Still, the streets of Nueva Fuerabamba were virtually deserted on a recent weekday. Vargas, the community leader, said many residents have returned to the countryside or sought work elsewhere.

Alcoholism, fueled by idle time and settlement money, is on the rise, he said.

Some villagers have committed suicide. Over the 12 months through July, four residents killed themselves by taking farming chemicals, according to the provincial district attorney’s office. It could not provide data on suicides in the old village of Fuerabamba.

MMG, citing an “independent” study done prior to the relocation, said the community previously suffered from high rates of domestic violence, alcoholism, illiteracy and poverty.

While the company considers the new town a success, it acknowledged the transition has not been easy for all.

“Connection to land, livelihood restoration and simple adaptation to new living conditions remain a challenge,” MMG said.

Nueva Fuerabamba residents continue pressuring the company for additional assistance. Demands include more jobs and deeds to their houses, which have yet to be delivered because of bureaucratic delays, said Godofredo Huamani, the community’s lawyer.

MMG said it stays apace of community needs through town hall meetings and has representatives on hand to field complaints.

While villagers fret about the future, many cling to the past. Flora Huamani, 39, a mother of four girls, recalled how women used to get together to weave wool from their own sheep into the embroidered black dresses they wear.

“Those were our traditions,” said Huamani from a bench in her walled front yard. “Now our tradition is meeting after meeting after meeting” to discuss the community’s problems.

Austrian Leader Defends EU Credentials in Brussels

Austria’s new chancellor traveled to Brussels on Tuesday on his first foreign trip since being sworn in, aiming to dispel concerns that his coalition with the far right spells trouble for the European Union.

Responding to a letter on Monday from European Council President Donald Tusk that underlined EU worries, 31-year-old conservative leader Sebastian Kurz tweeted back that his new government would be “clear pro-European and committed to making a positive contribution to the future development of the EU.”

A day after he took office at the head of a coalition with the far-right Freedom Party (FPO), Kurz delivered that message in person to Tusk and European Commission President Jean-Claude Juncker, whose EU executive has responded to October’s election with little of the outrage that greeted the FPO’s first taste of government in Austria 17 years ago.

At a joint news conference in Brussels, Juncker said he would judge Kurz’s government by its deeds.

“This government has a clear pro-European stance. That is what is important for me,” Juncker said.

The FPO has distanced itself from its Nazi-apologist, anti-Semitic past, while surges in irregular immigration and militant attacks have pushed the European political mainstream rightward, leading to a much more muted reaction than in 2000.

But a French member of the Commission was wary: “Things are doubtless different from the previous time, in 2000,” tweeted Socialist former finance minister Pierre Moscovici. “But the presence of the far right in government is never without consequences.”

Confirmation of the FPO’s return to a share of power raises concern that small, wealthy Austria will be an intractable voice on EU asylum reform and efforts to increase the EU budget.

The bluntest criticism has been south of the Alps, where a plan to offer Austrian citizenship to people living in Italy’s German-speaking border region has rekindled worries over old territorial arguments.

“Iron Fist, Velvet Glove”

A junior foreign minister in Rome said the offer may be couched in a “velvet glove of Europeanism” but bore “a whiff of the ethno-nationalist iron fist.”

Kurz assured Italians on Tuesday that he would consult Rome on the plan, which is a long-standing FPO policy, adding he would speak to Prime Minister Paolo Gentiloni.

For an EU battered by mounting nationalism that goes well beyond Brexit, there is concern too that criticism of Brussels in Vienna may help fuel the euroscepticism of former communist member states in Central Europe, including Poland, where the Commission is seriously considering imposing sanctions that were initially designed in response to the FPO’s rise early this century.

Speaking in Brussels, Kurz said he would make it Austria’s task to bridge the gap between EU member states in the east and the west, adding his country would fight to stop illegal immigration into the EU.

In a letter of congratulation to Kurz, Tusk made clear his concerns about the new coalition in Austria: “I trust that the Austrian government will continue to play a constructive and pro-European role in the European Union,” Tusk wrote, noting that Austria will from July enjoy six months of influence in Brussels as chair of EU ministerial councils.

Germany and France, the EU’s lead powers, also indicated a vigilance about Austria in their comments on Monday which highlighted Kurz’s pledges to foster European cooperation.

Kurz’s visit to Brussels comes on the eve of an important Commission meeting on Wednesday, where Juncker’s team will consider recommending sanctions on Poland for its continued defiance of warnings that its new laws on the judiciary are contrary to EU democratic standards.

“We are in a difficult process, which I hope will turn out to be a process of convergence. But not all bridges to Poland will be burnt tomorrow,” Juncker said.

Catalonia’s Independence Movement Draws on History in Bid to Break From Spain 

In the heart of Barcelona lies a foreboding reminder of Spain’s past. La Modelo prison is located just a few blocks from the Catalan capital’s main railway station and many of the city’s major tourist attractions. 

The jail housed political prisoners during the 40-year dictatorship under General Francisco Franco. More than 1,000 were executed.

Barcelona was the last bastion of republican resistance in the Spanish civil war, falling to Franco’s forces in 1939. In the four decades of dictatorship that followed, many continued the opposition fight underground. Among them was Felipe Moreno, who was eventually caught and jailed in 1975. He has watched the recent events with growing alarm.

The Spanish government arrested many leaders of the Catalan independence movement in October, following a disputed referendum on secession from Spain. Moreno says the government’s actions echo the repression of the Franco era.

“To think, in this day and age, that they can arrest you for political thoughts if you do not accept the state,” Moreno said. “The government says there are no political prisoners, but in the Franco era they said the same thing.  We were enemies of the regime and we were accused of terrorism.”

In the hills outside Barcelona lies the village of Vilarsar, yellow ribbons adorn almost every tree and lamppost — symbols of support for Catalonia’s jailed independence leaders.

History supports independence

The village is at the forefront of the independence campaign, led by Mayor Xavier Godàs, whose grandfathers fought for Catalan republicans against General Franco’s troops.  He said he feels the weight of history behind his independence campaign. 

“Keeping alive the flame of republican freedom.  By that I mean the fight against domination. That is something that goes beyond the 40 years of dictatorship.  It has been transmitted through generations, and is not only to do with national motives, but with principles of democracy,” said Godàs.

The Spanish government claims it is trying to uphold that democratic principle.  Catalonians will vote in regional elections Thursday, after Madrid dissolved the regional government following the October referendum.  Polls suggest the vote is evenly split between pro- and anti-independence parties.

Whatever the outcome, Vilasar Mayor Xavier Godas said he will continue the fight to break away from Spanish rule.

EU Commission May Launch Moves to Punish Poland Over Legal Reforms

The European Union’s executive may trigger a process on Wednesday to begin to strip Poland of its voting rights in the bloc, officials say, as months of tensions between Brussels and Warsaw come to a head.

In what would be an unprecedented move, the European Commission could invoke Article 7 of the European Union’s founding Lisbon Treaty to punish Warsaw for breaking its rules on human rights and democratic values.

“Unless the Polish government postpones these court reforms, we will have no choice but to trigger Article 7,” said a senior EU official before a Commission meeting on Wednesday, where Poland’s reforms are on the agenda.

Poland’s new prime minister Mateusz Morawiecki said in Brussels last week that “the decision has already been made.”

The Commission’s deputy head Frans Timmermans warned in July that Poland was “perilously close” to facing sanctions.

Such a punishment could still be blocked. Hungary, Poland’s closest ally in the EU, is likely to argue strongly against it.

But the mere threat of it underlines the sharp deterioration in ties between Warsaw and Brussels since the socially conservative Law and Justice (PiS) won power in late 2015.

The Commission says Poland’s judicial reforms limit judges’ independence. Polish President Andrzej Duda has until Jan. 5 to sign them into law.

If all EU governments agree, Poland could have its voting rights in the EU suspended, and may also see cuts in billions of euros of EU aid.

The PiS government rejects accusations of undemocratic behaviour and says its reforms are needed because courts are slow, inefficient and steeped in a communist era-mentality.

Following a non-binding European Parliament vote last month calling for Article 7 to be invoked, the Commission appears to have little leeway to grant Warsaw more time to amend its legislation.

The reforms would give the PiS-controlled parliament de facto control over the selection of judges and end the terms of some Supreme Court judges early.

The Council of Europe, the continent’s human rights watchdog, has compared such measures to those of the Soviet system.

The Commission fears letting Poland off the hook could weaken its hand, especially in the ex-communist east, and risk damaging the EU’s single market and cross-border legal cooperation.

US Sees Foreign Reliance on ‘Critical’ Minerals as Security Concern

The United States needs to encourage domestic production of a handful of minerals critical for the technology and defense industries, and stem reliance on China, U.S. Interior Secretary Ryan Zinke said Tuesday.

Zinke made the remarks at the Interior Department as he unveiled a report by the U.S. Geological Survey (USGS), which detailed the extent to which the United States is dependent upon foreign competitors for its supply of certain minerals.

The report identified 23 out of 88 minerals that are priorities for U.S. national defense and the economy because they are components in products ranging from batteries to military equipment.

The report found that the United States was 100 percent net import reliant on 20 mineral commodities in 2016, including manganese, niobium, tantalum and others. In 1954, the U.S. was 100 percent import reliant for the supply of just eight nonfuel mineral commodities.

“We have the minerals here and likely we have enough to provide our needs and be a world trader in them, but we have to go forward and identify where they are at,” Zinke told reporters at an Interior Department briefing.

He also blamed previous administrations for allowing foreign competitors like China to dominate mineral production for minerals, such as rare earth elements, used in smartphones, computers and military equipment.

Zinke said the report is likely to shape Interior Department policy-making in 2018, as the agency looks to carry out its “Energy Dominance” strategy, expanding mining and resource extraction on federal lands.

The survey is the first update of a 1973 USGS report that catalogued the production of minerals worldwide. The update was started under the Obama administration in 2013.

Many of the commodities that are covered in the new volume were of minor importance when the original survey was done, since it pre-dated the global electronics boom.

The USGS and Interior Department said the report is meant to be used by national security experts, economists, private companies, the World Bank and resource managers.

It does not offer policy recommendations, but Zinke will rely on the findings as he prioritizes research into certain mineral deposit areas on federal land and plans policies to promote mining.

“We do expect that to lead to policy changes. The USGS is not involved in policy, but I suspect you will see some policy changes,” said Larry Meinert, lead author of the report.