Greek Lawmakers Approve 2018 Budget Featuring More Austerity

Greece’s parliament on Tuesday approved the 2018 state budget, which includes further austerity measures beyond the official end of the country’s third international bailout next summer. 

 

All 153 lawmakers from the left-led governing coalition backed the budget measures in a late vote, while the 144 opposition lawmakers present rejected them. Three were absent from the vote.

Prime Minister Alexis Tsipras promised that the country would smoothly exit the eight-year crisis that has seen its economy shrink by a quarter and unemployment hit highs previously unseen during peacetime.

Tsipras argued that international money markets — on whose credit Greece will have to depend once its rescue loan program ends — are showing strong confidence in the country’s prospects, with the yield on Greek government bonds dropping to a pre-crisis low of less than 4 percent.

“The way to exit [the crisis] is for our borrowing costs to return to acceptable levels so the country can finance itself without the restrictive bailout framework,” Tsipras said.

The budget promises Greece’s international lenders continued belt-tightening measures and high primary budget surpluses — the budget balance before debt and interest payments are taken into account.

It sets the primary surplus at 2.44 percent for 2017 and 3.82 percent for 2018, higher than previously estimated. The economy is forecast to grow by 1.6 percent in 2017 and 2.5 percent next year, helped by a return to growth across Europe.

Debt to hold steady

With the Greek economy worth around 185 billion euros ($271 billion) in 2018, the national debt will remain at just under 180 percent of annual GDP, roughly unchanged from the previous year.

Greeks will see new tax hikes and pension cuts over the next two years. Bailout lenders had demanded additional guarantees the Greek economy will be stabilized before considering measures to improve the country’s debt repayment terms.

Opposition parties have criticized the budget, saying it will prolong the pain for Greeks. The main opposition conservative New Democracy party said the budget was “bleeding dry” the Greek people with 1.9 billion euros’ worth of new austerity measures.

Greece’s latest international bailout officially ends in August, more than eight years after the country began receiving emergency loans from the other European Union countries that use the euro currency, as well as from the International Monetary Fund.

In return for the funds, successive governments have had to impose repeated rounds of tax hikes and spending cuts, as well as structural changes aimed at reforming the country’s moribund economy and making it more competitive.

Tsipras first was elected in 2015 on promises to quickly end the painful austerity. But negotiations with bailout creditors soon went awry and, threatened with a disastrous euro exit, he signed on to more income cuts, increased taxation and further spending cuts.

His governing Syriza party is trailing New Democracy in the polls. But Tsipras insisted Tuesday that the government would see out its mandate, which ends in 2019.

Suspect in UK Air Base Incident Kept on Psychiatric Hold

Police say a British man who was arrested at an air base used by the U.S. Air Force in England has been detained for involuntary treatment under the Mental Health Act.

That means authorities believe he needs urgent treatment for a mental health problem and poses a risk to himself and others.

 

The 44-year-old man has not been charged in connection with an incident Monday that prompted a lockdown at the RAF Mildenhall base.

 

He was arrested on suspicion of criminal trespass after trying to enter the base. Police say the incident was not connected to terrorism.

 

Officials say American service personnel fired shots as it unfolded. The man suffered cuts and bruises, but no one else was hurt.

 

The military and police didn’t identify or provide further details on Tuesday.

 

US Single-Family Housing Starts, Permits Hit 10-year high

U.S. single-family homebuilding and permits surged to more than 10-year highs in November, in a hopeful sign for a housing market that has been hobbled by supply constraints.

Builders have struggled to meet robust demand for housing, which is being fueled by a labor market near full employment.

Land and skilled labor have been in short supply, while lumber price increases have accelerated.

The Commerce Department said on Tuesday that single-family homebuilding, which accounts for the largest share of the housing market, jumped 5.3 percent to a rate of 930,000 units.

That was the highest level since September 2007.

Pointing to further gains, single-family home permits rose 1.4 percent to a pace of 862,000 units, a level not seen since August 2007. The jump in groundbreaking on single-family housing units suggests housing could contribute to gross domestic product in the fourth quarter.

Investment in residential construction has declined for two straight quarters, weighing on economic growth. A survey on Monday showed confidence among homebuilders soaring to near an 18-1/2-year high in December, amid optimism over buyer traffic and sales over the next six months.

Prices of U.S. Treasuries remained at session lows after the data while the dollar pared declines against a basket of currencies. U.S. stock index futures were mixed.

Last month, single-family home construction in the densely-populated South shot up 8.4 percent to the highest level since July 2007 as disruptions from recent hurricanes continued to fade and communities in the region replaced houses damaged by flooding.

Single-family starts in the West increased 11.4 percent to their highest level since July 2007. They were unchanged in the Northeast and fell 11.1 percent in the Midwest.

Overall housing starts increased 3.3 percent to a seasonally adjusted annual rate of 1.297 million units. While that was the highest level since October 2016, October’s sales pace was revised down to 1.256 million units from the previously reported 1.290 million units.

Economists polled by Reuters had forecast housing starts decreasing to a pace of 1.250 million units last month. Starts for the volatile multi-family housing segment fell 1.6 percent to a rate of 367,000 units.

Overall building permits dropped 1.4 percent to a rate of 1.298 million units in November, pulled down by a 6.4 percent decline in permits for the construction of multi-family homes.

Turkey’s Erdogan Says Will Take Jerusalem Resolution to UNGA

Turkey will take the resolution calling on the United States to withdraw its declaration of Jerusalem as the Israeli capital to the United Nations General Assembly, Turkish President Recep Tayyip Erdogan said on Tuesday.

The resolution was introduced to the U.N. Security Council on Monday by Egypt, a non-permanent member, but was vetoed by the United States, despite the 14 other votes in favor.

“Now, God willing, we will carry the resolution to the U.N. General Assembly,” Erdogan a joint news conference with the Djibouti’s President Ismail Omar Guelleh. “A two-thirds support in the General Assembly would actually mean the rejection of the decision made by the Security Council,” he added.

 

US House Set to Vote on Republican Tax Bill

The U.S. House of Representatives will vote Tuesday on a Republican $1.5 trillion tax bill that will provide tax relief for most Americans, but benefit the wealthy the most, according to a non-partisan tax analysis group.

Following the House vote, the Senate will vote on the measure later Tuesday, according to Senate Republican leader Mitch McConnell.  If both houses approve the measure, it will be sent to President Donald Trump for him to sign into law, completing the first extensive modification of the U.S. tax code in more than 30 years and giving Trump his first major legislative victory.

Republican lawmakers appear to have the votes to permanently cut corporate taxes from 35 to 21 percent, temporarily and modestly reduce taxes paid by wage and salary earners, and boost America’s national debt by up to $1.5 trillion.

The non-partisan Tax Policy Center concluded Monday the bill would cut taxes for 95 percent of Americans next year, but average cuts for top earners would greatly exceed reductions for people earning less.

The legislation also partially repeals former president Barack Obama’s signature health care law and is expected to add nearly $1.5 trillion to the federal debt during the next decade.

Republican supporters of the measure are hoping that eight consecutive years of U.S. economic growth will continue and accelerate due to a stimulus they hope the tax cuts will provide.

“This is going to make such a positive difference in the lives of working Americans,” House Speaker Paul Ryan told reporters Tuesday on Capitol Hill.

Democratic opposition

Democrats, who were excluded from the Republican closed-door bill drafting meetings, are unanimously opposed to the measure.  They have argued the tax package favors big corporations and the wealthy, largely ignores the middle class and forces the elderly to pay a heavy price.

“There are so many rip-offs in this bill that people are going to say this is some kind of new Gilded Age,” said Ron Wyden, the highest-ranking Democrat on the Senate Tax Committee.

Unless Republicans withdraw their support at the last minute, Congress could send the tax bill to the White House for Trump’s signature as early as Wednesday.  Minority Democrats do not have the votes to kill the bill on their own, but have vowed to make it a major campaign issue in next year’s midterm elections.   

As the Republican bill moves closer to becoming law, many polls show that most Americans oppose it.

A Harvard CAPS-Harris survey conducted between December 8-11 indicates 64-percent of American voters oppose the measure.  A new CNN poll conducted by the research firm SSRS shows 55-percent of Americans oppose it, a 10-percent increase since early November.  A Reuters/Ipsos released on December 11 found nearly half of Americans opposed the plan.

When asked about the bill’s weak showing in the polls, Ryan said he had “no concerns whatsoever,” and added “when you have a mudfest on TV … that’s what’s going to happen. Results are going to make this popular.”

 

 

Pope, Jordan’s King Abdullah, Discuss Trump’s Jerusalem Move

Pope Francis and Jordan’s King Abdullah on Tuesday discussed U.S. President Donald Trump’s decision to recognize Jerusalem as Israel’s capital, a move that both say is dangerous to Middle East peace.

Abdullah and the pope spoke privately for about 20 minutes at the start of the king’s visit to the Vatican and France.

A Vatican statement said they discussed “the promotion of peace and stability in the Mideast, with particular reference to the question of Jerusalem and the role of the Hashemite Sovereign as Custodian of the Holy Places.”

King Abdullaha’s Hashemite dynasty is the custodian of the Muslim holy sites in Jerusalem, making Amman sensitive to any changes of status of the disputed city.

When Trump announced his decision on December 6, the pope responded by calling for the city’s “status quo” to be respected, saying new tension in the Middle East would further inflame world conflicts.

Among an outpouring of international criticism, Jordan also rejected the U.S. decision, calling it legally “null” because it consolidated Israel’s occupation of the eastern sector of the city.

The United States was further isolated over the issue on Monday when it blocked a U.N. Security Council call for the declaration to be withdrawn.

Both the Vatican and Jordan back a two-state solution to the Palestinian-Israeli conflict, with them agreeing on the status of Jerusalem as part of the peace process.

Palestinians want East Jerusalem as the capital of their future independent state, whereas Israel has declared the whole city to be its “united and eternal” capital.

The statement said both sides wanted to encourage negotiations.

Reporting by Philip Pullella; Editing by Alison Williams.

Meet CryptoKitties, Digital Kittens on the Blockchain

CryptoKitties, an online game and marketplace featuring virtual kittens, has become an entry point for curious outsiders looking to dabble in cryptocurrencies – decentralized digital monies that rely on blockchain technology to enable peer-to-peer transactions.

UK Sees Growing Threat from Russian Propaganda, Cyberattacks

Russia poses an increasing threat and is willing to use propaganda, subversion and cyberattacks to undermine Britain and the rest of Europe, Britain’s national security adviser said Monday.

Mark Sedwill, who is overseeing a review of Britain’s security services, told a parliamentary committee that Russia is attempting to “sow dissension” and undermine democracy in Britain and other western nations.

He said the threats from Russia included from unconventional warfare such as disinformation campaigns to the dangers posed from an increase in its military capability in the North Atlantic and in Eastern Europe.

“We know that the Russian threat is definitely intensifying and diversifying,” Sedwill said. “The Russian attitude has worsened more generally toward the West and that seems set to continue.”

Britain has been more vocal in recent weeks about the threat posed by Russia at a time when there is growing concern among some members of the ruling Conservative party about the impact of cuts to defense spending.

Prime Minister Theresa May last month in her most outspoken attack on Russia accused the country of meddling in elections and planting fake stories in the media.

The head of Britain’s armed forces said last week that trade and the internet are at risk of damage from any Russian attack on underwater communications cables that could disrupt trillions of dollars in financial transactions.

Sedwill accused Russia of planting fake stories in the media about the conduct of soldiers in Eastern Europe, where NATO troops are based, to undermine the legitimacy of them being there.

He also accused Russia of meddling in the recent French elections even though he said this had no chance of changing the outcome of the vote.

“It clearly was designed to undermine the citizen’s trust in their systems and we see quite a lot elsewhere,” he said.

Opposition Leader Says He Could Beat Putin in Fair Election

As the most serious challenger during Vladimir Putin’s 18 years in power, Alexei Navalny has endured arrests, show trials and facefuls of green antiseptic that damaged his vision.

But in an interview Monday with The Associated Press, he said the biggest thing keeping him from becoming Russia’s next president is a political system that punishes him for rallying support and conspires to keep his face off the airwaves.

Putin’s approval rating is astronomical and he is widely expected to win another term with ease, but the fact that he won’t even say Navalny’s name suggests the anti-corruption crusader has struck a nerve. Navalny’s criminal record will probably keep him off the ballot — a sign, he says, of how much he frightens the political class.

Navalny, in his first interview since the start of the presidential campaign, said he would win it “if I am allowed to run and if I’m allowed to use major media.” And he said the Kremlin knows it.

“It’s the main reason they don’t want me to run,” he said. “They understand perfectly how ephemeral the support for them is.”

Poll results

That support certainly looks strong: The latest independent poll, conducted this month by the Levada Center, suggests 75 percent of Russians would vote for Putin. People in much of Russia back Putin as a matter of course, and Navalny supporters are routinely heckled, arrested and fined when they try to spread their message.

But there are also signs that enthusiasm for Putin may be starting to wane. Another Levada poll, conducted in April, found that 51 percent of people are tired of waiting for Putin to bring “positive change” — 10 percentage points higher than a year ago. Both polls surveyed 1,600 people across Russia and had margins of error of 2.5 percentage points.

Navalny hopes to capitalize on that discontent.

“Putin has nothing to say,” Navalny said. “All he can promise is what he used to promise before, and you can check that these promises did not come true and cannot come true.”

Social media, not TV

Navalny gets out his message on social media, using Twitter and Telegram and broadcasting a weekly program on YouTube. But television — the main source of information for most Russians — remains off limits because it’s controlled by the government.

Other opposition candidates are expected to run, notably socialite Ksenia Sobchak, the daughter of Putin’s mentor — but there is wide speculation that her candidacy is a Kremlin plot to split Navalny’s support. The only other candidates who are critical of Putin have too little support for the Kremlin to view them as threats.

Putin himself has announced his re-election bid but so far refrained from any campaigning events. Even so, his face is everywhere — at his annual news conference last week, carried live for nearly four hours on Russian television, he touted his accomplishments and even taunted Navalny — but stuck to his practice of not saying his name.

Navalny was not a candidate during Russia’s last presidential election in 2012, but he spearheaded massive anti-government protests that rattled Putin. Amid dwindling popularity, Putin seized Ukraine’s Crimean peninsula and threw support behind separatist rebels in eastern Ukraine, striking a chord with millions of Russians who felt like losers in the outcome of the Cold War. Now, people are tiring of the Ukrainian conflict and becoming more focused on their own economic woes, providing fertile ground for Navalny’s message.

Navalny published his full election platform last week, focusing on fighting corruption and funneling more money into education and health care. He calls for a windfall tax on oligarchs and huge cuts to Russia’s bloated bureaucracy. Unlike Putin’s focus on foreign policy, Navalny’s platform is almost entirely domestic, which he credits for growing support in places like Novosibirsk, Russia’s third-largest city, where he drew a large crowd in October.

“Our government is in the grip of illusions. They deal with Syria and they’re not interested in what’s happening in Novosibirsk, and people there feel it,” Navalny told the AP. “That translates into the fact that I’m receiving more support.”

Visibility, backlash

The blue-eyed Moscow lawyer first made his name in 2009 when he began publishing investigations into corruption at Russia’s biggest state-owned companies. When the AP first interviewed Navalny in 2010, he was a lone wolf, but he has since acquired allies and supporters who have made investigations into official corruption their full-time job.

With the visibility came the backlash: The 41-year-old Navalny has been convicted on two sets of unrelated charges, and his brother was sent to prison in what was largely viewed as political revenge. A conviction on one of the charges bars Navalny from running for public office without special dispensation — and the election official who will consider that request in the coming weeks has already said she sees no legal grounds for him to run.

In his only formal election campaign, Navalny ran for Moscow mayor in 2013 and got nearly 30 percent of the vote.

His presidential bid began a year ago, when he started to build a network of supporters across Russia. He currently counts over 190,000 volunteers, most of them young, from Russia’s western exclave of Kaliningrad to Vladivostok on the Pacific. His supporters have opened campaign offices in 83 cities and towns, including many where Putin is accustomed to winning by a landslide.

On his most recent visit to Putin’s heartland, 1,000 people braved temperatures of -15 Celsius (-5 Fahrenheit) to hear him speak in the industrial town of Novokuznetsk, where Putin got 77 percent of the vote in 2012.

Many of those in the crowd sounded weary of the president but said they saw no alternative. Asked about Navalny, many said they had heard very little about him.

While Navalny has captured the attention of a younger generation and the politically active via social media, he conceded he won’t be able to reach the broader population as long as he is barred from state television.

“We have won among the active political class despite the ban,” he said. “The politically active class will turn the politically dormant one in our favor. It’s going to happen in this election if I’m allowed to run.”

EU Governments Agree on Renewable Energy Targets for 2030   

European Union environment and energy ministers on Monday agreed on renewable energy targets for 2030 ahead of negotiations next year with the European Parliament, which has called for more ambitious green energy goals.

Ministers said they would aim to source at least 27 percent of the bloc’s energy from renewables by 2030 — up from a target of 20 percent by 2020.

In October, the European Parliament called for this target to be increased to 35 percent, a level also put forward by a group of big technology, industry and power companies last week.

As part of the package of measures, ministers also agreed on the share of renewable fuels to be used in transport, while setting a cap on first-generation biofuels, which critics say compete for agricultural land with food.

EU member states set a 14 percent renewables target for fuels used in road transport by 2030, with bonuses given for the use of renewable electricity in road and rail transport.

The inclusion of rail into the renewable transport targets was criticized by the European Commission, as large parts of the European rail network are already electrified.

“The level of ambition is clearly insufficient,” Europe’s climate commissioner Miguel Arias Canete told ministers during negotiations.

The European Council and the European Parliament will need to find a compromise in talks over the final legal texts on these matters next year.

The EU’s renewables targets are part of a set of proposals to implement the bloc’s climate goals of reducing greenhouse gas emissions by at least 40 percent below 1990 levels by 2030, in the wake of the Paris Agreement to limit further global warming to no more than 2 degrees.

Ministers also reached a common position on a set of rules for the internal electricity market, such as the roll out of more sophisticated electricity meters to consumers and allowing grid operators to run energy storage facilities.

Bitcoin Futures Begin Trading on CME, Price Declines

Another security based on the price of bitcoin, the digital currency that has soared in value and volatility this year, began trading on the Chicago Mercantile Exchange on Sunday.

The CME Group, which owns the exchange, opened up bitcoin futures for trading at 6 p.m. EST on Sunday. The futures contract that expires in January opened higher at $20,650, then declined steadily. The futures were trading at $18,775 at 9:00 p.m. EST, down $725.

The CME futures, like the ones that CME competitor the Cboe started trading last week, do not involve actual bitcoin. The CME’s futures will track an index of bitcoin prices pulled from several private exchanges. The Cboe’s futures track the price of bitcoin prices on the particular private exchange known as Gemini.

Each contract sold on the CME will be for five bitcoin.

As bitcoin’s price has skyrocketed on private exchanges this year, largely under its own momentum, interest on Wall Street has grown. The virtual currency was trading below $1,000 at the beginning of the year, and rose to more than $19,000 on some exchanges in the days leading up to its debut on the Cboe and CME. Bitcoin was trading at $18,417 Sunday evening on Coinbase.

But the growing interest in bitcoin has raised questions on whether its value has gotten too frothy. The Securities and Exchange Commission put out a statement last week warning investors to be careful with any investment in bitcoin or other digital currencies. Further, the Commodities Futures Trading Commission has proposed regulating bitcoin like a commodity, not unlike gold, silver, platinum or oil.

Futures are a type of contract where a buyer and seller agree on a price on a particular item to be delivered on a certain date in the future, hence the name. Futures are available for nearly every type of security out there, but are most familiarly used in commodities, like oil wheat, soy and gold.

Bitcoin is the world’s most popular virtual currency. Such currencies are not tied to a bank or government and allow users to spend money anonymously. They are basically lines of computer code that are digitally signed each time they are traded.

A debate is raging on the merits of such currencies. Some say they serve merely to facilitate money laundering and illicit, anonymous payments. Others say they can be helpful methods of payment, such as in crisis situations where national currencies have collapsed.

Ukraine: Police Clash With Saakashvili Supporters

Hundreds of protesters clashed with police in Ukraine Sunday while trying to storm Kyiv’s October Palace following a rally against President Petro Poroshenko.

The crowd, which was dispersed with tear gas fired by police, is the latest in support of opposition leader Mikheil Saakashvili, who was released from custody last week after having been detained and accused of trying to stage a Russia-sponsored coup.

No serious injuries were reported from the demonstration, and the situation was relatively calm after nightfall.

“You have to show them that you are brave, but very, very calm,” Saakashvili told the crowd Sunday. “I will stand by you to the very end.”

Clashes with police outside the cultural center known as the October Palace followed a more peaceful rally earlier in the day to call for the resignation of Poroshenko.

Ukrainian authorities decided last week to release Saakashvili from police custody for the duration of the probe into accusations of abetting an alleged “criminal group” led by former President Viktor Yanukovych — who was pushed from power in 2014 and fled to Russia — and staging protests as part of a Russian plot against Ukraine.

Saakashvili, 49, is also wanted in his native Georgia, where he served as president from 2004 until 2013, for alleged abuse of power.

Saakashvili became a regional governor in Ukraine in 2015 at the invitation of Poroshenko. However, the two men later had a falling out, with Saakashvili accusing the president of corruption and calling for his removal from office.

 

UK Embassy Employee Found Murdered in Lebanon

An employee of Britain’s embassy in Lebanon was found murdered Sunday.

The body of Rebecca Dykes was reportedly found on the side of the road. Police sources told the British media that Dykes appeared to have been raped before she was killed but that the crime did not appear to be politically motivated.

A statement from Dykes’ family said they were “devastated by the loss of our beloved Rebecca.”

“We are doing all we can to understand what happened. We request that the media respect our privacy as we come together as a family at this very difficult time,” the family said.

Dykes had been working in Beirut for nearly a year as the program and policy manager for the Department for International Development, according to the BBC.

Local police say that an investigation, including a second post-mortem, is being carried out. British authorities said they were in contact with local police.

 

Russia: CIA Information Thwarted St. Petersburg Attack

The Kremlin said Sunday that the U.S. Central Intelligence Agency provided Russian authorities with information that thwarted a series of Islamic State bombings planned in St. Petersburg.

Moscow said Russian President Vladimir Putin called U.S. President Donald Trump to thank him for the CIA information, a call the White House confirmed.

Russia said the intelligence was significant enough for its Federal Security Service to track down seven suspects last week who were planning suicide bomb attacks Saturday on the two-century-old Kazan Cathedral and other sites in Russia’s second largest city. Three more were arrested Sunday who authorities said were linked to the planned attack.

Authorities said they confiscated a large number of explosives used to make homemade bombs, automatic rifles, munitions and extremist literature.

Law enforcement agencies said the suspects had been using the messaging app Telegram to communicate with Islamic State leaders outside Russia. In October, a Russian court fined Telegram $14,000 for refusing to provide security officials with information about an April attack on St. Petersburg’s subway that killed 16 people and injured more than 50.

The state news agency RIA Novosti broadcast a video showing a man identified as Yevgeny Yefimov confessing that he planned to carry out Saturday’s St. Petersburg attack.

“My job was to make explosives, put it in bottles and attach pieces of shrapnel,” Yefimov said in the video.

Later, Yefimov told a St. Petersburg court that the cathedral was an intended target.

Moscow said Putin asked Trump to express his gratitude to the CIA and that Russia in turn would hand over information it learns about possible terrorist attacks in the U.S., as it says it has in the past.

Sunday’s call between the two leaders was their second in four days and comes at a contentious point in U.S.-Russia relations.

U.S. sanctions are still in place protesting Moscow’s 2014 annexation of Ukraine’s Crimean Peninsula, while the U.S. intelligence community has concluded that Russia meddled in the 2016 U.S. election to help Trump win.

Criminal and congressional investigations are underway in the U.S. about the Trump campaign’s links to Moscow. Putin has often denied Russian interference and Trump has frequently disparaged the investigations as an excuse by Democrats to explain his upset victory over former U.S. Secretary of State Hillary Clinton.

Macron Has a Birthday at Loire Chateau; Critics Have Field Day

French President Emmanuel Macron celebrates his 40th birthday this weekend on the grounds of a former royal palace, in what some opponents called another tactless show of wealth.

Rivals have branded former investment banker Macron “president of the rich” for policies such as the scrapping of a wealth tax and cutting the housing benefit, moves the president framed as reforms to boost investment and social mobility.

Macron is staying with his wife, Brigitte, in a guesthouse close to the Chateau de Chambord, a former royal palace on the Loire that dates back to the 16th century.

His office denied media reports that the celebrations would take place inside the chateau and said the trip was being paid for by the couple.

Left-wing leader Jean-Luc Melenchon, who ran against Macron in the presidential election this year, called the chateau stay “ridiculous” for its royal symbolism.

Nicolas Dupont-Aignan, a right-wing politician who also ran for the presidency, said: “Times change but the oligarchy remains detached from the people.”

Macron’s weekend retreat came as several of his ministers were shown to be millionaires.

Cabinet of millionaires 

Figures released Friday by a body charged with ensuring financial transparency in politics showed Labor Minister Muriel Penicaud had the largest personal fortune, around 7.5 million euros ($8.8 million).

Penicaud, at the forefront of Macron’s push to shake up the economy, has been criticized for a gain made on stock options when she was an executive at food giant Danone.

Environment Minister Nicolas Hulot declared personal wealth of more than 7 million euros and revealed he owned six cars. The former TV presenter and campaigner has called for France to stop selling petrol and diesel cars by 2040.

Career politicians in the government had smaller fortunes, with Prime Minister Edouard Philippe’s declaration showing 1.7 million euros, and Public Finances Minister Gerard Darmanin just 48,000 euros.

Stake in Vietnam’s Top Brewer for Sale, But Bids Few

Vietnam is set to auction up to a $5 billion stake in top brewer Sabeco on Monday, with Thai Beverage the only potential bidder to have expressed interest in a majority stake.

The keenly anticipated sale of the state-owned maker of Bia Saigon gained momentum in recent months after being hampered for years by political resistance, fickle policy-making and complications over valuations.

The government has set a minimum sale price of 320,000 dong or $14.10 a share for Saigon Beer Alcohol Beverage Corp (Sabeco), whose shares have nearly trebled to 309,200 dong since its listing a year ago.

Thai Beverage, through a partly owned Vietnam unit, is the only company that has expressed interest in owning more than 25 percent of the company, which has roughly 40 percent of the beer-loving Vietnamese market.

So far no formal bid had been made.

Vietnam’s young population and booming economy should make Sabeco an attractive asset for global brewers hoping to expand in Southeast Asia, but a high minimum bid price and foreign ownership limits appear to have turned off potential buyers.

Sabeco’s foreign ownership is capped at 49 percent. With 10 percent already in foreign hands, that leaves only 39 percent on the table for overseas buyers at Monday’s auction. Local bidders can bid for a majority stake of up to 54 percent. Heinken holds a 5 percent stake.

“There’s a disconnect between what the government wants to achieve and how international brewers view this auction,” said one person familiar with the matter. “In a normal auction, bidders are fully aware of what stake they’ll end up owning and bid for it accordingly,” said the person, who was not authorized to speak to the media.

Unlike similar sales in developed markets, where investors are whittled down over several rounds and offers can be adjusted, Sabeco bidders need to submit a single offer for a specific number of shares in a sealed envelope in one round.

Thai Bev, controlled by tycoon Charoen Sirivadhanabhakdi, was keen to acquire Sabeco as part of a strategy to expand outside its home market, sources told Reuters. The company had lined up bank guarantees to support the bid by its Vietnam unit, sources said.

There was no immediate response from Thai Bev to a query from Reuters.

Reuters previously reported that the auction was drawing the interest of brewing groups such as Anheuser-Busch InBev, Kirin Holdings, Asahi Group Holdings and San Miguel, but there is no clear sign of whether they have participated in the auction so far.

The government’s minimum price for the 54 percent stake on offer valued Sabeco at about 36 times core earnings, more than double the trading multiples of around 15 for some global peers, according to Reuters data.

Vietnam’s trade ministry is expected to announce the bidding result Monday afternoon.

Explainer: Why Other Countries Care That US Ditched Net Neutrality

The U.S. Federal Communications Commission (FCC) has hit the delete button on domestic rules protecting net neutrality.

The FCC voted 3-2 on Thursday to end the 2015 Open Internet Order and enact the Restoring Internet Freedom initiative, which is widely seen as giving internet service providers (ISPs) more power to selectively limit internet access while favoring certain data streams.

In large part, this is an internal battle within the United States over consumer choice and how the internet will operate. Nonetheless, it also could have a significant impact beyond America’s borders, especially for those who routinely interact with U.S.-based internet services in their daily or professional lives.

Though you may not see the changes overnight, many critics say that, in the long run, internet users around the world may not know what products or services they are missing out on because of the rollback of net neutrality in the United States.

What is net neutrality?

Coined in 2003 by Columbia University professor Tim Wu, the phrase “net neutrality” refers to the principle that ISPs should treat all data provided to customers equally and without restriction to block out competitors. In essence, it keeps ISPs from choosing which data gets streamed at a faster rate and which websites are blocked or throttled. 

Net neutrality was made official policy in 2015 through new FCC regulatory rules that treated ISPs as a public utility following extensive industry and public debate.

Why does net neutrality matter?

Net neutrality is the law in more than 40 countries, including the United States and the European Union. But with the shackles for U.S.-based ISPs off, equality in cyberspace may disappear.

Companies or individuals willing to pay more may get a freer, faster internet service, which could lead to two classes of internet user: one rich in money and information, the other poor in both.

“The ending of net neutrality in the U.S. could be the beginning of the end of the open, interoperable, free internet,” said Quinn McKew, deputy executive director of ARTICLE 19 in the United Kingdom.

“It is now a question of how much, not if, freedom of expression online will be undermined around the world as a result of this shortsighted decision to enrich the entrenched near-monopolies who control internet access in the United States,” McKew said.

For example, if a company from the Balkans, Russia or Central Asia develops its own video-streaming service, an ISP may slow its delivery because the provider has a competing service of its own unless the company agrees to pay additional fees to have its product streamed at higher rates. 

And obviously it’s not only about entertainment. 

The Public Library of Science (PLOS), a U.S.-based nonprofit open-access publisher and advocate dedicated to progress in science and medicine through a transformation in research communication, warned that allowing ISPs to sort traffic based on content, sender and receiver, opens the door for corporate and government censorship that would greatly hinder access to scientific information around the globe.

“If you want to promote any other culture in the U.S., and you start driving lots of [internet] traffic through the U.S., and you have to go through these ISPs, they can throttle you,” according to Dwayne Winseck, a professor at Carleton University in Ottawa and director of the Canadian Media Concentration Research Project.

Or, as Andrew McDiarmid, a senior policy analyst for the Center for Democracy and Technology, put it: “I think it’s a case that the U.S. remains a model for internet policy for the world. Not having it here may make it less likely to have it in other places.”

Could dismantling it affect human rights?

As with many things, the United States is seen as a global leader on the internet. Thus, many critics fear that a loosening of its regulatory system may embolden others to crack down on a completely open internet.

Estelle Masse, senior policy analyst at Access Now, a digital-rights advocacy group, said the repeal of net neutrality rules would make the U.S. “an outlier on an issue of critical importance to the future of the internet, both as an engine for innovation and a platform for human rights, to the detriment of users.”

Some critics say the erosion of net neutrality in world leaders such as the United States could prevent events such as the 2010 Arab Spring, when social media played an integral part in the movement to overthrow oppressive regimes.

“Americans aren’t the only ones who would be harmed by a U.S. decision to repeal net neutrality rules,” Hadi Ghaemi, executive director of the Center for Human Rights in Iran, said in response to the move to end net neutrality.

He says that as the most economically advanced country in the world, such a move by the United States could give the green light to repressive countries like Iran to continue applying the same policies.

“The internet is the most valuable invention of the 20th century, and we should all be fighting to keep it free. As the birthplace of the internet, the U.S. should be carrying the torch on net neutrality, not following in the footsteps of autocrats,” he said.

Could there be any benefits for foreign countries?

One of the arguments for rolling back net neutrality is that it hindered investment and innovation that threatened to harm the internet’s continued ability to grow and evolve to meet consumers’ needs. 

The ruling could end up being a boon to innovators outside the United States if American entrepreneurs find they are at a disadvantage because large companies are spending heavily to dominate fast-lane internet access.

Jennifer Yeh, a policy counsel at Free Press, a Washington-based public interest group that advocates for an open internet, noted that while the decision may limit supply of new content and developments for users outside the United States, it could push innovators to leave “for better opportunities elsewhere.”

To that end, it appears as though some are ready to pounce on the opportunity.

“Maybe I shd [should] invite newly disadvantaged US startups to EU, so they have a fair chance,” tweeted Neelie Kroes, the European Union’s commissioner for the digital agenda, during the debate in the United States on ending net neutrality.

Trump Sells Republican Tax Bill to Job Seekers, Middle Class

U.S. President Donald Trump continued to tout the Republican tax bill Saturday, saying “everybody’s going to benefit” if it is signed into law.

“But I think the greatest benefit is going to be for jobs and for the middle class, middle income,” Trump said to reporters on the White House South Lawn before departing for the presidential Camp David retreat in Maryland.

Republican Senate and House negotiators finalized a final version Friday of their compromise $1.5 trillion tax bill, after appeasing Republican Senator Marco Rubio, who demanded an expansion of the child tax credit that provides benefits for low-income families.

Republican lawmakers hammered out differences Wednesday between the House and Senate versions, and both chambers of Congress plan to vote on the final bill early next week, with the intent of submitting it to President Donald Trump for his signature before Christmas.  

Rubio said late Friday he would vote for the bill after saying one day earlier he would not support it unless it includes a more generous child tax credit, which has been  beneficial to lower-income families by partially offsetting the expenses of raising children.

The bill doubles the current child tax credit from $1,000 to $2,000 per child and allows parents to get a refund of up to $1,400 if the credit is greater than their federal income tax liability.

No Democratic support

No Democrats have publicly expressed their support for the legislation, which they have attacked as a giveaway to corporations and the wealthiest of taxpayers, including Trump, a billionaire.

The measure would cut taxes by $1.5 trillion over the next decade, heavily weighted toward lower corporate taxation, and perhaps add $1 trillion or more to the country’s long-term $20 trillion debt obligations to investors and foreign governments such as China – the largest owner of U.S. debt.

When asked about the debt, Trump responded by saying a new tax law will encourage inflows of overseas money. “This is going to bring money in. As an example, we think four trillion dollars will come flowing back into the country. That’s money that’s overseas, that’s stuck there for years and years.”

Trump administration officials say millions of individual taxpayers, but not everyone, would see their annual tax obligation to the government cut, in many cases by a few hundred dollars, or in the case of wealthy taxpayers, by thousands of dollars.

In  the final compromise bill, the individual tax rate for the highest income earners would be cut from 39.6 percent to 37 percent.

The country’s corporate tax rate, now at 35 percent and among the highest in the industrialized world, would be cut substantially to 21 percent.

With Democrat Doug Jones winning a special Senate election Tuesday in Alabama, Senate Minority Leader Charles Schumer has asked that the final tax vote be delayed until January after Jones is sworn in. But Republicans appear intent on voting before then while they have one more Republican vote in the Senate.

An original version of the Senate bill was approved 51-49 with Rubio’s support. So if Rubio votes against the bill, it could still pass, though with a narrower margin.

If approved and signed into law, the tax legislation would be the first major legislative achievement of Trump’s nearly 11-month presidency after he and Republicans failed earlier this year dismantle national health care policies championed by former president Barack Obama.

Far-right Party Officially Part of Austrian Government

Austria’s Conservative People’s Party (OVP) reached a coalition deal Saturday with the far-right Freedom Party (FPO), which takes a hard line on immigration.

The deal makes Austria the only western European country with a far-right group in government.

Austrian conservatives led by Sebastian Kurz and FPO leader Heinz-Christian Strache said in a joint statement this was a “turquoise-blue agreement,” referring to each group’s political colors.

“We want to reduce the burden on taxpayers … and above all we want to ensure greater security in our country, including through the fight against illegal immigration,” Kurz said. The 31-year-old will be Austria’s new chancellor and will become the youngest head of government in the world. Strache will be vice-chancellor.

The coalition government will be sworn in Monday, according to Austrian President Alexander Van der Bellen’s office.

More than a million refugees and other migrants arrived in Europe in 2015.

Austria reportedly opened its doors to more than 1 percent of those seeking asylum – one of the highest rates in the European Union. Both parties now are pledging to prevent a repeat of that influx.

According to the BBC, no details have been given about the new program, although the Freedom Party is expected to take the leadership on several ministerial roles.

In November, Reuters reported on an upcoming coalition that would focus on a commitment to the European Union, budget discipline, and cuts in migrants’ welfare benefits as basic policies.

Strache and Kurz are expected to restrict new arrivals’ access to many social services.

The agreement comes two months after a parliamentary election that was dominated by Europe’s migration crisis. It also ends about a decade of political opposition for the FPO, which last entered government in 2000.

Austrian news agency APA first reported the coalition and a source, familiar with the talks, confirmed the deal shortly thereafter.

Kurz’s party won the October 15 election. He ran on a hard line approach to immigration that often overlapped with the Freedom Party’s. Kurz has promised to bring change to Austrian politics even though he has been leading a party that has been in power in different coalitions for the past 30 years.

The FPO came in third with 26 percent of the vote.

Ukraine FM: Russia Does Not Live in a Vacuum, Sanctions Are Effective

Ukraine’s foreign minister applauded decisions announced this week by Canada and the European Union (EU) as important in demonstrating the international community’s solidarity with Ukraine and sending a clear message to Russia.

“Look, Russia does not live in a vacuum, sanctions are effective,” Pavlo Klimkin said Friday in an interview with VOA.

EU Council President Donald Tusk announced Thursday that leaders of the organization’s 28 member states were “united on the rollover of economic sanctions on Russia.”

The European Union’s sanctions post constraints for Russia’s access to the coveted EU markets. Initially, they were put in place in 2014 “in response to the illegal annexation of Crimea and deliberate destabilization of a neighboring sovereign country.” The EU said the sanctions are kept under “constant review” in order that they continue to contribute toward their stated objectives.

Earlier this week, the Canadian government added Ukraine to its Automatic Firearms Country Control List, thus enabling Canadian individuals and companies to apply for permits to export certain prohibited firearms, weapons and devices to Ukraine.

“Canada and Canadians will continue to stand with the people of Ukraine and support Ukraine’s territorial integrity and sovereignty,” Canadian Minister of Foreign Affairs Chrystia Freeland declared.

Klimkin said Western nations, “especially Europe, understands more and more that Russia has also been waging hybrid war against European institutions.”

​International community

Against this background, “there definitely will be more pressure, in the sense of targeted sanctions, in the sense of solidarity” coming from the international community, he said.

Ukraine hopes this sense of solidarity will manifest in a United Nations mandate for an international peacekeeping mission in eastern Ukraine, responsible for, in Klimkin’s words, “what is going on and what will be going on in the occupied Donbas,” including a level of security, and free and fair elections.

“We will keep pushing Russia to accept that fundamentally, it’s about Russia out, international component in, there’s no other way around it,” Klimkin told VOA’s Ukrainian service.

In the meantime, he says Russia has been trying to “fix up the situation in Donbas. … Russia has been trying to come up with more provocations, the idea is very clear: to maintain a Russian protectorate on the ground; the whole idea is simply to say: Look, it’s about internal conflicts in Ukraine.’”

The United States has been a strong critic of Russia’s actions in Ukraine.

​‘The single most difficult obstacle’

Secretary of State Rex Tillerson voiced the administration’s frustration during his recent trip to Europe.

“President (Donald) Trump, as you know, throughout his campaign was very clear that he views it as very important that Russia and the United States have a better relationship, that it is important that countries as powerful as these two nations are should have a more positive relationship,” Tillerson said in Vienna.

“When one country invades another, that is a difference that is hard to look past or to reconcile,” he said, adding, “We’ve made this clear to Russia from the very beginning that we must address Ukraine. It stands as the single most difficult obstacle to us renormalizing the relationship with Russia, which we badly would like to do.”

Natalie Liu has been a staff reporter and writer at Voice of America since 2005. She currently covers the diplomatic beat. Myroslava Gongadze is VOA’s Ukrainian service chief.

Britain Seeks ‘Bespoke’ EU Trade Deal, Pact With China

British Finance Minister Philip Hammond said Saturday it is likely Britain will want to negotiate a bespoke arrangement for a future trade deal with the European Union, rather than copying existing arrangements like the Canada-EU deal.

The European Union agreed Friday to move Brexit talks onto trade and a transition pact, but some leaders cautioned that the final year of divorce negotiations before Britain’s exit could be fraught with peril.

Summit chairman Donald Tusk said the world’s biggest trading bloc would begin “exploratory contacts” with Britain on what London wants in a future trade relationship, as well as starting discussion on the immediate post-Brexit transition.

No off-the-shelf deal

Speaking in Beijing, Hammond it was probably not helpful to think in terms of off-the-shelf models like the Canada-EU deal.

“We have a level of trade and commercial integration with the EU 27 which is unlike the situation of any trade partner that the EU has ever done a trade deal with before,” he told reporters.

“And therefore it is likely that we will want to negotiate specific arrangements, bespoke arrangements,” Hammond added.

“So I expect that we will develop something that is neither the Canada model nor an EEA model, but something which draws on the strength of our existing relationship.”

The Brexit negotiations have been a vexed issue for the global economy as markets feared prolonged uncertainty would hit global trade and growth.

A transition period is now seen as crucial for investors and businesses who worry that a “cliff-edge” Brexit would disrupt trade flows and sow chaos through financial markets.

China visit

Hammond’s China visit is the latest installment in long-running economic talks between the two states, but it has now taken on new importance for Britain as it looks to re-invent itself as a global trading nation after leaving the EU in 2019.

China is one of the countries Britain hopes to sign a free trade agreement with once it leaves the EU, and London and Beijing have been keen to show that Britain’s withdrawal from the bloc will not affect ties.

Hammond sought to offer reassurance to Chinese firms post-March 2019 when Britain formally leaves the EU.

“We won’t technically or legally be in the customs union or in the single market, but we’re committed as a result of the agreement we’ve made this week to creating an environment which will effectively replicate the current status quo,” he said.

Addressing the press after Hammond had spoken, Chinese Vice Finance Minister Shi Yaobin said China hopes Britain and the EU can reach a win-win agreement.

Turkey Opposition Leader Faces Prosecution as Crackdown Intensifies

Turkish prosecutors have taken another step toward the prosecution and possible jailing of the country’s main opposition leader. On Thursday, Ankara prosecutors announced they had prepared their case against Kemal Kilicdaroglu, head of the Republican People’s Party, or CHP, and called for the lifting of his parliamentary immunity.

The CHP responded by criticizing the ruling party and Turkey’s president.

“[The] Justice and Development Party, and most importantly, Recep Tayyip Erdogan, is different from the parties in the past. It has no tolerance against being criticized heavily and this intolerance is reflected in the indictment written by the prosecutors,” said deputy CHP head Sezgin Tanrikulu.

Kilicdaroglu is being prosecuted for his criticism of Erdogan over this year’s controversial referendum to extend presidential powers that was narrowly passed amid accusations of vote-rigging.

On news of the prosecution move, Kilicdaroglu told a gathering of party supporters, “You are not a prosecutor. Those who become slaves to the [presidential] palace cannot be prosecutors, or judges.” The government dismisses such accusations, maintaining the judiciary is independent.

The last few weeks have seen the opposition leader increasingly targeted by the president and others in government.

“Kilicdaroglu, your mind is rotten and your rope is about to break. I’m saying this very clearly; you are finished,” said Interior Minister Suleyman Soylu at a recent party meeting.

Kilicdaroglu had been largely dismissed by the ruling AKP as irrelevant and ineffectual. Last month, however, he accused President Erdogan and his family of transferring large amounts of money to offshore bank accounts. Erdogan demanded Kilicdaroglu prove what he called slanderous accusations. A few days later, the parliament opposition leader produced bank documents appearing to substantiate his claim.

Erdogan’s accusations

Speaking to party supporters, Erdogan warned that Kilicdaroglu will “pay the price.” The president has widened his verbal attack to the CHP itself, declaring it a party of “treason” and describing it as a security threat. He also referred it to the country’s National Security Council, a move that until now was only reserved for the pro-Kurdish HDP, which the president accuses of being a party of terrorism linked to a Kurdish insurgency. Thousands of HDP officials, including its co-leaders, dozens of its mayors and 11 parliamentary deputies are in jail on terrorism charges.

Kilicdaroglu has faced previous accusations, but none has so far reached court. In the current political climate, these latest allegations are seen as by far the most serious.

“If they were to remove him [Kilicdaroglu] from the parliament and subsequently be detained, I don’t think the charade that Turkey is a democracy can be sustained. We are talking about the leader of the main opposition being taken in,” said political consultant Atilla Yesilada of Global Source Partners. “If such a step were taken, I am almost sure the Council of Europe would remove Turkey’s membership. I don’t know how long the EU can tolerate these transgressions. Relationships at every level are currently frozen, so this could lead to an automatic suspension.”

The interior minister’s use of emergency powers this month to remove a locally elected CHP mayor in Istanbul on corruption allegations is being seen as a further warning against the party. Further removals of CHP mayors are reported to be imminent.

Moving against Kilicdaroglu

Kilicdaroglu’s fate lies with the ruling AKP, which would have to vote to lift his immunity. Analyst Yesilada believes international influence may dictate its final decision on moving against Kilicdaroglu.

“I don’t think AKP has settled on a plan for 2019. We may have a scenario where the government goes to a verbal war with [the] United States, but decides to repair the bridges with the EU. We may have a scenario where Ankara defies both its partners and becomes extremely xenophobic and completely turns to Muslim nations and Russia. Then they will have to stamp harder on the opposition. The fate of the opposition would be determined once this main choice has been made,” Yesilada said.

The legal woes of the CHP in 2019 are set to grow, with 60 of its parliamentary deputies under investigation.

“Turkey is quickly drifting away from the principles of a country of law and democracy under the leadership of Erdogan,” said deputy CHP leader Tanrikulu, who himself is facing prosecution. “It is not possible to talk about an independent and fair judiciary. If immunities are lifted and a case is opened [against Kilicdaroglu], then this may mean that this is the end of democracy and the parliamentarian regime.”

UN Condemns Iraq Mass Executions

United Nations human rights officials are condemning what they call the shocking and appalling mass executions of 38 men in Iraq on Thursday. The men, who were executed at a prison in the southern Iraqi city of Nasiriyah, were convicted for terrorism-related crimes. 

A spokeswoman for the U.N. High Commissioner for Human Rights, Liz Throssell, told VOA her office did not learn of the mass executions until after the fact.

“That again just underscores the situation, that suddenly we get sort of word, we get news that there has been a mass execution,” Throssell said. “That goes back to the lack of transparency, the lack of information regarding what is happening to these people.”   

Throssell said that since 2015, the U.N.’s office in Iraq repeatedly has asked the Iraqi minister of justice for information regarding the many men on death row, but with little response. She said no concrete figures are available, although about 1,200 men are believed to be awaiting execution. 

She noted the Iraqi justice system is very flawed and it is extremely doubtful that the 38 men who were executed had received a fair trial.  

“This raises the prospect of irreversible miscarriages of justice and violations of the right to life,” Throssell said. “The imposition of the death sentence upon the conclusion of a trial in which fair trial provisions have not been respected constitute a violation of the right to life.”   

Throssell said there is a disturbing pattern of mass executions in Iraq. She notes about 106 executions have taken place this year, including 42 mass hangings of prisoners in a single day in September. The Reuters news agency cites the Justice Ministry as saying all those convicted were members of Islamic State.

Iraqi Prime Minister Haider al-Abadi announced several days ago that the three-year war aimed at driving IS out of Iraq was successful and had come to an end.

The high commissioner is calling for a halt to all executions and a moratorium on the use of the death penalty in Iraq.

Powerful CEOs Demand DACA Fix

Two titans of U.S. business have come together to demand that Congress find an immediate solution for DACA recipients, whose legal immigration status will come to an end in March without intervention.

Charles Koch, chairman and chief executive of Koch Industries, and Tim Cook, chief executive of Apple, wrote in an opinion piece published Thursday in The Washington Post that “we strongly agree that Congress must act before the end of the year to bring certainty and security to the lives of dreamers. Delay is not an option. Too many people’s futures hang in the balance.”

Dreamers is another term for participants in the Deferred Action for Childhood Arrivals program, which has protected undocumented young people who were brought to the U.S. as children and provided them with work permits.

President Donald Trump ended the DACA program in September although it will not begin to phase out until March, 2018.

His action put the ball in Congress’ court to find a long term solution for dreamers.

In their op-ed piece, the two CEOs note that both of their companies employ DACA recipients. “We know from experience that the success of our businesses depends on having employees with diverse backgrounds and perspectives. It fuels creativity, broadens knowledge and helps drive innovation.”

Koch Industries encompass a variety of companies including manufacturing and refining of oil and chemicals. Forbes Magazine lists Koch as the second largest privately held company in the U.S. Apple is the world’s largest information technology company, producing such familiar products as the iPhone and the Mac computers.

‘Firmly aligned’ on DACA issue

Koch and Cook are as different politically as their companies. Deeply conservative, Charles Koch has made significant financial contributions to rightwing causes and mostly Republican candidates. Tim Cook has been more bipartisan in his donations but did host a fundraiser for Democrat Hillary Clinton when she was running for president.

“We are business leaders who sometimes differ on the issues of the day,” the two concede in their piece. “Yet, on a question as straightforward as this one, we are firmly aligned.”

Congress seems unlikely to provide a DACA solution by the end of the year.

While some Democrats have remained firm in linking the spending legislation to a measure that would allow nearly 800,000 DACA immigrants to continue to work and study in the United States, the effort seems to have lost momentum.

Speaking Wednesday to a group of DACA recipients, Democratic Senator Richard Durbin of Illinois said he wished he could “tell you that we’re totally confident we can get it done. I can’t say that. I don’t want to mislead you.” Durbin is a co-sponsor of the DREAM Act which would protect DACA recipients.

Republican lawmakers have maintained that there is no reason to act on DACA in 2017.

“There is no emergency. The president has given us until March to address it,” Senate Majority Leader Mitch McConnell, a Kentucky Republican, said Sunday on ABC’s This Week program. “I don’t think Democrats would be very smart to say they want to shut down the government over a nonemergency that we can address anytime between now and March.”

But that was said before a major Republican donor urged immediate action.

“We have no illusions about how difficult it can be to get things done in Washington, and we know that people of good faith disagree about aspects of immigration policy,“ Koch and Cook write.

“By acting now to ensure that dreamers can realize their potential by continuing to contribute to our country, Congress can reaffirm this essential American ideal.

“This is a political, economic and moral imperative.”

 

Russia to Resume Flights to Egypt, Halted After 2015 Bombing

Russia and Egypt signed a deal on Friday to resume flights between Moscow and the Egyptian capital of Cairo starting from February, after more than a two-year break, officials announced.

Moscow suspended flights to Egypt after a bomb by the local Islamic State affiliate brought down a Russian airliner over Sinai in October 2015, killing all 224 people on board.

The attack decimated Egypt’s vital tourism industry. Egyptian authorities have since spent millions of dollars to upgrade security at its airports, hoping to get Moscow to change its mind.

Russian Transportation Minister Maxim Sokolov said he and Egyptian Minister of Civil Aviation Sherif Fathi signed a protocol on security cooperation that would allow direct flights between Moscow and Cairo to resume, starting from February.

Russia, however, is not yet talking about resuming charter flights to Egyptian resorts on the Red Sea, once a popular destination for Russian tourists, Sokolov said, adding that this would be “the next stage” of negotiations.

President Vladimir Putin on a visit to Cairo on Monday said the deal on the resumption of flights could be signed “in the nearest time” and praised Egypt’s efforts to boost security at its airports.

In the wake of the IS bombing, Britain, another major source of visitors to Egypt, suspended flights to Sharm el-Sheikh, the Red Sea resort in Sinai from which the doomed Russian airliner took off.

Putin’s visit to Egypt was part of the Russian president’s blitz day-trip to the region that kicked off with a visit to a Russian air base in Syria, then to Cairo and concluded with a stop in Turkey. It was his second visit to Egypt in as many years, and Putin and Egyptian President Abdel-Fattah el-Sissi appeared keen to cement their countries’ ties, which have deepened in recent years as Moscow has expanded its reach across the region.

El-Sissi, who has visited Russia twice since taking office in 2014, has signed deals to buy billions of dollars’ worth of Russian weapons, including fighter jets and assault helicopters. Last month, Russia approved a draft agreement with Egypt to allow Russian warplanes to use Egyptian military bases.

On Thursday, Fathi headed to Moscow to finalize the agreement on the resumption of flights.

Later Friday, Egypt’s civil aviation ministry said in a statement that the two sides will hold talks in April on the resumption of Russian flights to Egyptian resorts.

Associated Press writers Menna Zaki in Cairo and Vladimir Isachenkov in Moscow contributed to this report.

Trump Touts Progress on Slashing Federal Regulations

U.S. President Donald Trump has touted progress on slashing federal regulations, which he says cost America trillions with no benefit. Speaking Thursday from the White House, the president said his administration had exceeded its goal of removing two federal regulations for every new one, by removing 22 for every new one. Opponents have criticized some of the deregulation, especially dismantling of the net neutrality rules that guarantee equal access to the internet. VOA’s Zlatica Hoke reports.

Detroit Builds a Symbol of Resurgence on Iconic Spot

An 800-foot-tall (244-meter) centerpiece is coming to Detroit’s resurgent downtown as the city continues to build momentum about three years after exiting the largest municipal bankruptcy in U.S. history.

The 58-story building dominating the local skyline will rise on the site of the iconic J.L. Hudson department store, whose 1983 closing epitomized Detroit’s economic downfall.

“When we lost Hudson’s, it symbolized how far Detroit had fallen,” Bedrock Detroit real estate founder Dan Gilbert said Thursday during a ceremonial groundbreaking for the new building. “When it was imploded in 1998 it was a very sad day for a lot of people.”

One of four projects

But the bad times for downtown appear to be largely over. Bedrock Detroit’s $900 million, two-building project will include a 58-story residential tower and 12-floor building for retail and conference space. Up to 450 residential units can be built in the tower.

It is one of four projects representing a $2.1 billion investment in downtown by the Detroit-based commercial real estate firm. Altogether, the projects are expected to create up to 24,000 jobs in a city that desperately needs them and generate $673 million in new tax revenue.

Mayor Mike Duggan’s office has spearheaded redevelopment programs targeting a number of city neighborhoods, but Detroit’s growth is most evident in greater downtown, where office space now is limited and available apartments are tough to come by.

A ribbon-cutting was held in August for an $860 million sports complex just north of downtown. The 20,000-seat Little Caesars Arena is the new home of the Detroit Red Wings and Pistons. It will anchor a 50-block neighborhood of offices, apartments, restaurants and shops.

A 6.6-mile-long light rail system launched earlier this year along Woodward Avenue, downtown’s main business thoroughfare.

Microsoft move

Software maker Microsoft announced in February that it plans to move its Michigan Microsoft Technology Center next year from the suburbs to downtown. In 2016, Ally Financial opened new offices downtown that the financial services company said eventually would be occupied by more than 1,500 employees and contractors.

“Bedrock building on the Hudson’s site will be an important addition to the community and the vitality and prosperity of downtown,” said John Mogk, a Wayne State University law professor whose work has included policy on economic development issues.

“It will act as an important centerpiece for continuing the overall downtown development … but much more has to be done for the entire city to feel a resurgence.”

Many residents poor

However, much work remains for a city where many residents are still poor.

Detroit’s unemployment rate was about 8 percent in April, yet far below the more than 18 percent unemployment rate during the city’s 2013 bankruptcy filing.

The city’s 2016 poverty rate was just more than 35 percent, the highest among the nation’s 20 largest cities and more than double the national poverty of 14 percent. A family of four is considered living in poverty if its annual earnings are less than $24,563.

Downtown construction projects such as the work at the Hudson’s site can help change that, some say.

“What a shame that anybody should be unemployed in Detroit when we have a need for skilled trades,” Gilbert said. “We like to say Detroit is located at the intersection of muscle and brains. We need brains to sort this all out … somebody still has to build stuff. We still need muscle.”

While Bedrock’s new building would be Detroit’s tallest, rising above the 727-foot (222-meter) Renaissance Center along the city’s riverfront, it still would be far shorter than some other U.S. towers.

One World Trade Center in New York measures 1,776 feet (541 meters). Chicago’s Willis Tower hits 1,451 feet (442 meters), while the Empire State Building in New York climbs to 1,250 feet (381 meters).

​Iconic Hudson’s

Although the 25-story Hudson’s building was once the nation’s tallest department store, it measured only about 400 feet (122 meters). It was far more famous for what was inside.

When Detroit was humming along and leading the nation in car production, the store was where auto executives and assembly line workers shopped. From household goods to clothing and furs and many things in between, it was a primary downtown destination.

There were 50 display windows, 12,000 employees and 100,000 customers per day. But as shopping tastes shifted to expansive suburban malls and Detroit’s population tumbled by more than 600,000 people between the 1950s and 1980, Hudson’s lost its luster.

“Building something of significant magnitude on the old site will provide a good deal of good feelings by older generations,” Mogk said.

EU Members Bicker Over Migration Policy at Summit

European Union nations bickered openly over migration policy Thursday in an east-west divide centered on several nations that refuse to accept refugee quotas.

The Czech Republic, Hungary, Poland and Slovakia announced that they planned to spend around 35 million euros ($41 million) to beef up EU borders after the four countries — known as the “Visegrad Four” — were criticized for failing to show solidarity with the rest of the bloc.

Dutch Prime Minister Mark Rutte still thought it was “shameless” and said shirking responsibility by not taking in their share would wither the EU. 

“If we allow this then we get an EU where people go to shop for whatever they like,” and give little back, he said.

​Funding not enough

Greece and Italy have had to play host to tens of thousands of migrants who landed there after crossing the Mediterranean or Aegean seas, severely stretching the two countries’ resources. They have called for help from EU partners.

German Chancellor Angela Merkel, whose country has taken in the largest number of refugees, said the announcement by the Visegrad nations was welcome but not enough.

“We need solidarity not just in regulating and steering migration … on the external borders. That is good and important, but we also need internal solidarity,” Merkel said. “In my opinion, there cannot be selective solidarity among European member states.”

EU Council President Donald Tusk said the divide “when it comes to migration, it is between east and west.” He said there have been complaints that eastern members were happy to get aid from their richer western partners but unwilling to live up to their part of the bargain of being in a joint endeavor.

“The European Union is not only an ATM when you need support,” said Belgian Prime Minister Charles Michel. “Cooperation means solidarity and responsibility.”

Border funds

The issue of migrants and refugees was high on the agenda of a two-day EU summit in Brussels that started Thursday — and some saw the border funding move by the four nations as a cynical ploy to avoid accepting refugee quotas.

Slovak Prime Minister Robert Fico said their contribution will help save European funds. And, he added, “if we will see good projects in the future, first of all projects that are effective, we are ready to spend even more money because we really want to show solidarity.”

Despite the tensions, the discussion at the summit dinner table remained within bounds, Rutte said. “It was fine because we can all take a little hit. If it is the spirit of ‘I like your drawing if you like mine,’ we get nowhere.”

Hungary saw tens of thousands of Syrian refugees and others pass through its territory in 2015 looking for shelter in richer northern European nations. Prime Minister Viktor Orban ordered the construction of a border fence to keep migrants out.

Orban said Thursday that the border funds will help defend the EU’s borders with the outside world and will also contribute to EU work in Libya, where many migrants leave for Europe.

Visegard Four

After more than 1 million refugees entered Europe in 2015, the EU introduced a refugee-sharing plan to help overwhelmed Greece and Italy.

The four Visegrad nations voted against the quotas, but were legally bound to accept refugees as the decision was made by a majority vote. Still, Hungary and Poland have taken in no refugees under the plan, while the Czech Republic has accepted 12.

The EU Commission wants to introduce a permanent mechanism that would oblige countries to take in quotas of refugees if a migrant surge hit one or more EU nations. The Visegrad nations remain firmly against migrant quotas.

“Quotas do not work. They are ineffective,” Fico said. “The decision on quotas really divided the European Union.”

Disagreement over how to manage the migrant challenge has created distrust between EU neighbors and fueled anti-migrant parties across Europe, slowly threatening to undermine the entire European project.

French President Emmanuel Macron said it is important not to get bogged down in old disputes and solidarity can take different forms.

“We need to be able to express solidarity without getting trapped in any excessive roadblocks” about the past, he said. “I think everyone needs to make an effort.”

Trump Touts Progress on Rolling Back Federal Regulations

With the ceremonial flourish of oversized golden scissors slicing a giant piece of red tape, U.S. President Donald Trump symbolically cut through decades of regulations on Thursday. 

“So, this is what we have now,” the former reality television program host said, gesturing toward a 190-centimeter-high pile of what was said to be 185,000 sheets of paper. “This is where we were in 1960,” he added, referencing a smaller stack representing an estimated 20,000 pages of federal regulations.

“When we’re finished, which won’t be in too long a period of time, we will be less than where we were in 1960, and we will have a great regulatory climate,” the president added at the event in the White House Roosevelt Room.

Trump decried that an “ever-growing maze of regulations, rules and restrictions has cost our country trillions and trillions of dollars, millions of jobs, countless American factories, and devastated many industries.”

The event took place just after the Federal Communications Commission, in a 3-2 vote, repealed a rule of the previous Obama administration calling for  “net neutrality,” the principle that all internet providers treat all web traffic equally. 

Lawsuits filed

The deregulatory zeal has generated a backlash. 

The state of California has filed seven lawsuits challenging part of the administration’s deregulatory efforts dealing with the environment, education and public health. 

The administration’s “rule rollbacks risk the health and well-being of Americans and are, in many cases, illegal,” according to California Attorney General Xavier Becerra. 

In his remarks Thursday, Trump touted his executive order, signed days after he took office in January, mandating that two federal regulations must be eliminated for every new regulation put on the books. 

His administration, Trump said, has exceeded that mandate by “a lot.” 

The president, who as a real estate developer long railed against government regulation, claimed that for every new rule adopted, his administration has killed 22 — far in excess of the 2-for-1 pledge. 

For the first time in “decades, the government achieved regulatory savings,” Trump said, boasting that “we blew our target out of the water.” 

The administration, over its first 11 months, according to the president, has “canceled or delayed more than 1,500 planned regulatory actions — more than any previous president by far.” 

He called for his Cabinet secretaries, agency heads and federal workers to “cut even more regulations in 2018.”

“And that should just about do it,” he said. “I don’t know if we’ll have any left to cut.”

$570M in savings seen

The cost savings, according to administration officials, will total $570 million per year. But they say there are benefits that go beyond money. 

“When the government is interfering less in people’s lives, they have greater opportunity to pursue their goals,” Neomi Rao, the administrator of the Office of Information and Regulatory Affairs in the Office of Management and Budget, told reporters following the president’s ribbon-cutting event. 

Asked whether she could verify that this is, as Trump has declared, the largest deregulatory effort in American history, Rao hedged to echo such a sweeping statement, saying, “I don’t think there’s been anything like this since [Ronald] Reagan, at least.” Reagan was president from 1981 to 1989.

The president’s former strategist, Stephen Bannon, has said a primary goal of the Trump administration, through deregulation, is achieving “deconstruction of the administrative state.” 

Trump Thanks Putin for Remarks on Strong US Economy

President Donald Trump thanked Russian President Vladimir Putin for remarks he made Thursday “acknowledging America’s strong economic performance,” the White House said. 

The two presidents spoke by phone following Putin’s annual press conference in Moscow. 

They discussed ways to work together to address North Korea’s nuclear and ballistic weapons program, the White House said. 

In an equally brief statement, the Kremlin said in addition to North Korea, Trump and Putin discussed relations between their two countries and agreed to stay in contact. The Kremlin made a point of noting that Trump initiated the call. 

During his remarks in Moscow, Putin accused those investigating potential collusion between Russia and Trump’s 2016 presidential campaign of damaging the U.S. political situation, “incapacitating the president and showing a lack of respect to voters who cast their ballots for him.” 

Putin also warned the U.S. against using force against North Korea. Trump has repeatedly said that all options remain on the table.