Britain Accelerates Brexit Plans; Talks Also to Speed Up

Britain is accelerating preparations for “all eventualities” when it leaves the European Union, but both sides are hopeful an agreement on stepping up talks to unravel more than 40 years of partnership will be sealed soon.

With only 17 months remaining until Britain’s expected departure, the slow pace of talks has increased the possibility that London will leave without a deal, alarming business leaders who say time is running out for them to make investment decisions.

British and EU negotiators met in Brussels on Tuesday to try to agree a schedule for further divorce talks, with an initial proposal from the bloc to hold three more rounds before the end of the year not winning instant approval from London.

The pressure has spurred the British government to step up its Brexit plans, employing thousands more workers and spending millions to make sure customs posts, laws and systems work on day one of Brexit, even without a deal on a future relationship.

At a meeting with her ministers Tuesday, Prime Minister Theresa May was updated on plans for the tax and customs authority to add 3,000 to 5,000 workers next year and for spending of 500 million pounds ($660.45 million) for Brexit.

Domestic preparations

“Alongside the negotiations in Brussels, it is crucial that we are putting our own domestic preparations in place so that we are ready at the point that we leave the EU,” May’s spokesman told reporters.

“The preparatory work has seen a significant acceleration in recent months. Departments are preparing detailed delivery plans for each of the around 300 programs underway across government.”

May wants to silence critics in her ruling Conservative Party who are pressing her to walk away from talks, which have faltered over how much Britain should pay to leave the bloc.

Brexit campaigners are demanding that Britain leave with no deal if the talks do not move on beyond a discussion of the divorce settlement on a so-called Brexit bill, EU citizens rights and the border with EU member Ireland by December.

Brexit minister David Davis said Tuesday that he thought Britain would agree on some kind of basic deal with the European Union, even in the “very improbable” eventuality that they failed to agree on a trade deal.

Better tone

In a sign that an improved tone between the two sides, struck at a summit earlier this month, was continuing, EU chief negotiator Michel Barnier reaffirmed his message in the Slovak capital, Bratislava, that he was ready to “speed up negotiations.”

May’s government has also long said it would welcome an acceleration in the talks. But the sides have yet to agree on how to do that following a top-level meeting in Brussels on October 19-20.

Barnier has proposed three rounds — one that did not take place last week, and two more in the weeks starting November 16 and December 4. London prefers continuous talks.

“We are ready to accelerate, but we must have something to talk about,” said an EU official.

This was what Britain’s Oliver Robbins and Barnier’s deputy, Sabine Weyand, were seeking to agree on in Brussels on Tuesday.

Before leaving the EU, May faces a struggle to get parliamentary support for a law to sever political, financial and legal ties with the bloc — the EU Withdrawal Bill, for which lawmakers have proposed hundreds of amendments.

Asked whether May was preparing to offer a concession over a final vote on any deal struck with the EU, her spokesman said there was “lots of speculation in relation to Brexit.”

“We’ve always said that we’ll do whatever is necessary,” he said.

Closure Plans for Notorious Greek Camp Spark Hopes and Fears

Refugee advocates are calling attention to the poor treatment of refugees and migrants trapped on Greece’s islands, while in the mainland’s most notorious camp, conditions are equally grim.

November is expected to bring about the closure of Derveni, the only camp on mainland Greece where refugees and migrants are still living in tents, within the confines of a stripped-out factory on an industrial site near the northern city of Thessaloniki.

 

The end of Derveni — if it does happen — would come amid efforts to shift from crisis mode to a long term approach as the Greek state consolidates efforts to manage a new population of more than 50,000 people, many of whom Greek officials fear are likely to stay for years rather than months.

Amid an upturn in refugee arrivals into Greece and criticism of the state’s handling of the situation, Derveni’s beleaguered residents remain deeply uncertain about the future.

 

For some, the ‘End of the World’

“I’d thought things would get better but when I came here and experienced this. It felt like the end of the world,” said Jemal, a camp resident who asked to be identified by a name other than his real one.

Having fled his home in east Africa after speaking out against corruption. He remains too afraid to make his country of origin public. He crossed the Aegean on a dinghy from Turkey to the Greek island of Lesvos and spent four months there sleeping in a tent.

Around 13,500 migrants and refugees are currently stuck on the group of Greek islands that also include Chios, Samos, Kos and Leros.

They face possible deportation as they await the result of asylum applications more than a year and a half since an EU-Turkey deal promised, among other things, to return those whose applications were rejected back to Turkey, which in turn and in exchange for EU financial assistance would send “approved” refugees staying within its border on to European Union nations.

 

The general situation and poor living conditions in camps have provoked widespread criticism among humanitarian organizations, including a group of 19 that sent an open letter to Greek Prime Minister Alexis Tsiprias on October 23. The letter called on the Greek government to end its policy of keeping refugees and migrants contained on the islands and demanded that the government immediately transfer them to the mainland in order “to meet their protection needs.”

 

Jamal’s new reality on the mainland, however, was worse.

“I want to have a normal life, but here life is not normal,” he said.

Tough Conditions

Derveni was among the camps used by the government early last summer after the dispersal of thousands from an ad-hoc camp created at the crossing point into Macedonia when the country closed its borders.

 

More than 200 people are now in the camp, with some having arrived unregistered and on foot having taken the land route from Turkey into northern Greece, and others, like Jemal, transferred there from the Greek islands by the state.

In recent weeks, these transfers have stopped, though pressure to get refugees off the islands is once again growing with around 6,000 refugees arriving from Turkey last month — a sharp upturn on previous months.

In Derveni, with temperatures sweltering in the summer and freezing in the winter and with volunteers denied access to the camp, despondence has spread. Drug use, thefts, and fighting have become a part of camp life.

“People come here and they have stress, they have problems, and they feel angry,” said Mohammed, an Iranian who was transferred to the camp from the Greek Island of Samos. He requested his surname not be used, as is common among many refugees who often fear that revealing their true identity might jeopardize their chances for asylum or the security of their families back home.

Meanwhile a source who recently accessed the camp warned about the safety conditions, telling VOA “If you had a fire in one tent, in ten minutes the whole warehouse would burn.”

“It’s not a place I’d wish on my worst enemy,” they added.

Yet to Close

 

Derveni is notorious among many humanitarian workers in Greece.

Liene Veide is a spokeswoman for the UNHCR, the UN’s refugee body, which has spoken out against relocating people from the islands to Derveni.

The camp was “not an appropriate place for any human being to live in, especially not long term,” said Veide.

Still, some turn up of their own accord, desperate for a place to live.

Ifigenia Anastasiadi, who until recently worked for a major NGO on the site, said the camp had become a “dump hole” for those whose nationalities meant they are less likely to be granted asylum.

In her time working there, Anastasiadi said she encountered a number of highly vulnerable residents, including those tortured in the countries they had fled.

Set to shut?

Gianluca Rocco, Greece’s chief of mission to the International Organization for Migration (IOM), which along with the Greek army oversees Derveni, said improvements had not been made because the camp had been expected to close sooner.“We were told many times the camp would be closing,” said Rocco, “and sometimes when you’re trying to close a camp it creates a situation where you don’t want to get into investing in something that will close.”

Greek migration policy minister Giannis Mouzalas pledged the camp would shut by the end of last year before pushing the date back again, to May of 2017.

The ministry for migration policy has not responded to requests for comment.

UNHCR officials told VOA Derveni is among five camps in northern Greece to be closed by the end of November. Eight others closed earlier this year.

Rocco asserted that plans to close the camp were far more definite this time, he adding it was very late to begin efforts to equip Derveni for winter.

Around 100 Derveni residents are vulnerable enough to fit the criteria to be moved into apartments, and some have already been moved as part of a wider UNHCR scheme.

The rest, meanwhile, are expected to be shifted to new camps in the coming weeks. After that, the future remains uncertain, especially for those who arrived on foot.

Having left the islands to be confronted with equally bad conditions in Derveni, Jemal remains cynical about the prospects of the camp shutdown and any potential benefits for him.

“I’m not expecting anything,” he said, “I’ve been disappointed by promises before, so why would I expect anything from anyone?”

Eurozone Recovery Helps Unemployment Fall to Near 9-Year Low

Official figures show that the robust economic recovery across the 19-country eurozone persisted during the third quarter, helping unemployment fall to a near 9-year low.

 

Eurostat, the European Union’s statistics agency, said Tuesday that the eurozone economy grew by 0.6 percent during the July to September period. Though that’s slightly down on the stellar 0.7 percent tick recorded in the second quarter, it’s modestly higher than expectations for a 0.5 percent rise.

 

Separately, Eurostat said unemployment fell to 8.9 percent in September from 9.0 percent the previous month. That’s the lowest rate since January 2009.

 

Elsewhere, Eurostat said annual inflation in the eurozone dipped to 1.4 percent in October from 1.5 percent as the core rate, which strips out volatile items, surprisingly fell to 0.9 percent from 1.1 percent.

 

 

Ousted Catalan Leader in Brussels as Spanish Prosecutors Seek Charges

Ousted Catalonia leader Carles Puigdemont is expected to make a public appearance Tuesday in Brussels, a day after he traveled there while Spanish prosecutors announced plans to seek sedition, rebellion and embezzlement charges against Catalan leaders.

Belgian lawyer Paul Bekaert told VRT television Monday Puigdemont was in Brussels and had appointed him as his lawyer.

“He is not in Belgium to specifically ask for political asylum. That is not decided yet,” Bekaert said.

Watch: Catalan leaders flee to Belgium

Chief prosecutor Jose Manuel Maza said Monday he would seek to charge the leaders of Catalonia who led a push to secede from Spain. It is up to a court to decide whether to move forward with the charges, which could bring lengthy jail terms, including up to 30 years for rebellion.

Catalonia held a referendum October 1 on the question of whether the autonomous region should break away from Spain. The government in Madrid rejected the secession push, and after Catalan lawmakers declared independence last week, the central government asserted control over the region and dissolved the local parliament.

New elections are set for December, and Catalonia’s separatist party announced it would field candidates.

Energy Consultant Lied to Authorities About Trump Campaign Role

When real estate mogul Donald Trump was running for the U.S. presidency, a young foreign policy adviser, George Papadopoulos, attempted to arrange a meeting between Russian government officials and the Trump campaign. Trump, in an interview at the time, described Papadopoulos as “an energy and oil consultant, excellent guy.”

The would-be Trump-Russia meeting never occurred. But on Monday, however, special counsel Robert Mueller disclosed that Papadopoulos pleaded guilty earlier this month to lying to agents of the Federal Bureau of Investigation about the timing and importance of his contacts with “an overseas professor.” He understood this person to have “substantial connections” to Russian officials that had “dirt” on Trump’s election challenger, Democrat Hillary Clinton, and to communications with “a certain female Russian national” believed to be a niece of Russian President Vladimir Putin.

Papadopoulos, according to his guilty plea to a criminal information, told FBI agents in a January 27 interview that his contacts with the London professor came before he joined the Trump campaign and that his contacts with the Russian woman were casual and inconsequential, both of which prosecutors said were lies.

The prosecution’s statement of the case against Papadopoulos said he “made numerous false statements and omitted material facts” about his contacts with the professor and the Russian woman and a connection with the Russian Ministry of Foreign Affairs.

U.S. Senator Mark Warner, vice chairman of the Senate Intelligence Committee, said the Papadopoulos guilty plea “is just the latest in a series of undisclosed contacts, misleading public statements, potentially compromising information, and highly questionable actions from the time of the Trump campaign that together, remain a cause for deep concern and continued investigation.”

Papadopoulos graduated in 2009 from DePaul University in Chicago with a bachelor’s degree in political science and government, then earned a master’s degree from University College London and the London School of Economics. He later worked for the Hudson Institute, a Washington think tank, from 2011 to 2015 before joining the unsuccessful Republican presidential campaign of Dr. Ben Carson, whom Trump later named as his housing secretary.

After Trump took office, Papadopoulos worked as an independent oil, gas and policy consultant.

With his guilty plea, Papadopoulos faces up to five years’ imprisonment and a $250,000 fine, but his sentence could be substantially less if he testifies about his contacts with Trump campaign officials that are described in the statement of his actions.

WATCH: What is an indictment?

Blockchain Technology Could Unblock Southeast Asia

Imagine you could swipe your phone over a piece of fish in the supermarket and instantly see secure records of its entire path through the supply chain, from the technique used by the fisherman who caught it in Indonesia to when it was shipped and how it was processed at a factory in your home country —  all at the tap of a smartphone.

Trial projects such as that one are testing the potential of Blockchain technology to bring transparency to all sorts of notoriously inefficient or shadowy industries in Southeast Asia.

Blockchain, the technology that powers bitcoin, is an essentially unchangeable form of bookkeeping. It creates cryptographically chained signatures between blocks of information that are authenticated by users over a peer-to-peer distributed ledger — a public record that can be applied to any type of bookkeeping, not just cryptocurrencies.

“It removes the requirement for a centralized authority, and in a lot of the products that it’s being launched in, this centralized authority tends to be the government,” said Alisa DiCaprio, head of research at R3 — an enterprise banking software firm that uses distributed ledger technology.

In a region where the most important records — identity and ownership for instance — are often subjected to little or no external oversight, blockchain offers enormous potential benefits.

Erin Murphy, Founder and Principal of Inle Advisory Group, a Myanmar and emerging business advisory firm, said major Asian business hubs are looking to blockchain to clean up and simplify transactions.

“Ideally, we would want to see adoption of blockchain at an official level all across the region,” she said in an email. “But perhaps not surprisingly, the governments that are leading blockchain adoption are those that are already low-corruption.”

One of those governments, she said, is Singapore, which is working with major banks on a blockchain-based system to streamline and qualitatively improve their customer (KYC) processes.

In other countries, it is being used for completely different purposes. In the Philippines, a remittance market worth billions of dollars per month has been invaded by firms offering cheaper services built on blockchain, which people can access without a bank account..

“Any steps that get taken at first may not be viewed through an anti-corruption lens and may inadvertently tackle that issue; it will likely be viewed through a development lens to kickstart poverty alleviation and bringing sectors up to international standards that attract foreign investment,” Murphy said.

More than money

There are many trials with clear utility in Southeast Asia underway, including systems for land titling under development in Sweden and Japan.

In June, the United Nations unveiled a blockchain-based system built in partnership with Microsoft and Accenture that gives stateless refugees a permanent identity based on biometric data.

It’s also being explored for secure voting systems.

The blockchain-based app developed to track the supply chain of fish from Indonesia — Provenance — is now the basis of many other trials, including a project to create a similar system for the garment industry.

Online you can view the results of a pilot released in May this year that follows a piece of clothing — an Alpaca Mirror Jumper from London-based designer Martine Jarlgaard, from a farm in Dulverton, Britain, through every step of production into London with location, content and timestamps.

It is a long way, though, from realizing that something can be done to actually making it happen, DiCaprio of R3 said.

“The technical capability to do this exists in most developing countries,” she said. “You have engineers who can code on the blockchain. But the understanding of how to actually implement this from a business point of view is very poor.”

DiCaprio estimates it will take about five years before we actually see large-scale functioning applications and believes the most impactful will occur at the macro economic level.

“So for example one area that it’s moving very quickly is trade finance,” she said. “And trade finance, you’re generally talking about fairly large companies, generally in Asia mostly exporting or importing from or to the US or EU,.”

Faster, cheaper and more transparent transactions combined with reductions in the risks of lending and borrowing would flow to down to the village level, she added.

Subversion vs centralization

Blockchain proponents are divided by some sharply divergent values. Some see blockchain — whose slogan is “be your own bank,” as technology that can fundamentally upend a global financial system they believe is intractably corrupt.

“There is a serious opportunity for us here to remove money out of government,” said a Southeast Asia based bitcoin trader who would only give his alias FlippingABitCoin, fearing he could expose himself to physical theft.

Billions of people currently excluded from the formal banking system will be able to access global cryptocurrencies with no middle man using nothing more than a phone, he said.

“It will level out the playing field of power,” he said.

Another group of enthusiasts are encouraging the absorption of this technology by states, as demonstrated by Canada, Singapore, China and Germany, all of which are either exploring or conducting trials of their own central bank digital currencies using blockchain.

“In the long run, we believe if there is any threat at all to governments, it is that other governments will lead the way in adopting blockchain technologies in producing low-corruption, high-transparency, highly-secure digitized economic infrastructures that will attract business, investment and stakeholder confidence,” wrote Michael Hsieh, a non-resident affiliate at the Center for International Security and Cooperation at Stanford University, in an email.

“The societies who lead in the great fintech [financial technology] innovation race of the 21st century will siphon all the capital and productivity from those that lag,” he wrote.

Second Woman Enters Russian Presidential Race

A journalist became the second woman to enter Russia’s presidential race, saying on Monday she wanted to use the election to campaign for the rights of single mothers and children.

The presidential election takes place in March next year.

President Vladimir Putin is expected to stand and win, but has yet to confirm his plans.

Some opposition activists believe the Kremlin’s aim is to crown the field with candidates designed to distract and entertain in order to boost turnout and divide the liberal opposition.

The Kremlin denies that, saying anyone who meets the legal criteria to run can take part.

On Monday, mother-of-two Ekaterina Gordon, 37, who has worked as a TV and radio talk show host, said she was putting herself forward as an independent presidential candidate.

She said she had never voted, but had become disillusioned by both the liberal opposition and pro-Kremlin politicians.

“I understood that everyone is fed from the same trough,” Gordon said in an online video.

“There are many populist themes… But there is one reality — we are a country of single mothers, and no one gives a damn about them.”

She said she had not agreed her candidacy with the Kremlin and had experience of the kind of problems Russian woman faced due to her ownership of a law firm.

Another female candidate, Russian TV personality Ksenia Sobchak, said earlier this month she planned to run for president, offering liberal voters unhappy with Putin’s rule someone to back, though she, like Gordon, has little prospect of winning.

Post-Soviet Russia has never had a female president.

Kremlin critic and opposition leader Alexei Navalny wants to run too, but Russia’s central election commission has declared him ineligible due to a suspended prison sentence, which he says was politically-motivated.

Is Turkey’s Wine Industry In Jeopardy?

The future of Turkey’s 11,000-year-old wine-making tradition is in question as the government of President Recep Tayyip Erdogan continues to enforce restrictions on production, sale, and advertising of wine in line with his party’s vision of steering Turkey – with its historically western tastes – in the direction of conservative Islam. Jason Godman filed this WebVid.

India’s New Afghan Trade Route Via Iran, Bypasses Pakistan

Opening a new trade route to Afghanistan that bypasses Pakistan, India has dispatched its first consignment of wheat to the war torn country via the Iranian port of Chabahar.

The strategic sea route is a significant step in bolstering trade with Kabul that has been hampered because rival Pakistan does not allow India to transport goods to Afghanistan through its territory.

After the shipment was seen off by Indian Foreign Minister Sushma Swaraj and her Afghan counterpart Salahuddin Rabbani via a joint video conference Sunday, the Indian government called it a “landmark moment.”

In the coming months, six more consignments of wheat totaling 1.1. million tons will be sent from India’s western port of Kandla to Chabahar. From the Iranian port it will be taken by road to Kabul.

The shipment comes days after U.S. Secretary of State Rex Tillerson, on a visit to New Delhi, allayed concerns that the Trump administration’s tough stand on Iran could pose a fresh stumbling block to India’s plans to develop the strategic Iranian port as a regional transit hub.

Easier connectivity to Afghanistan is key for India to step up its economic engagement with Kabul, which Washington has called for as part of its new policy to stabilize the war torn country.

And Chabahar port, in which India is investing $500 million to build new terminals, cargo berths and connecting road and rail lines, is the centerpiece of the strategy to improve linkages not just with Afghanistan, but also to resource-rich Central Asian republics.

“This is the first time that we are getting into Afghanistan through a route different than what traditional routes have been,” said South Asia expert Sukh Deo Muni at New Delhi’s Institute of Defense Studies and Analyses.

Indian leaders expressed optimism about the project, which is still a work in progress. Minister Swaraj called it the starting point of a journey that would spur the unhindered flow of commerce and trade throughout the region. Prime Minister Narendra Modi tweeted the launch of the trade route, “marks a new chapter in regional cooperation & connectivity.”

The sea route via the Iranian port is the second step taken by India to increase connectivity with Kabul. In June it opened an air freight corridor to provide greater access for Afghan goods to the Indian market.

The Chabahar port is seen as India’s answer to the Gwadar port in Pakistan being developed by China.

The project was conceived almost 15 years ago, but the plans were stalled for years due to U.S. led international sanctions on Iran. Their easing prompted India to sign a trilateral pact with Iran and Afghanistan last year to develop the port.

U.S. Secretary of State Tillerson indicated in New Delhi last week that fresh sanctions on Iran by the Trump administration would not pose a stumbling block to those plans.

“It is not our objective to harm the Iranian people, nor is it our objective to interfere with legitimate business activities that are going on with other businesses, whether they be from Europe, India or agreements that are in place that promote economic development and activity to the benefit of our friends and allies as well. We think there is no contradiction within that policy,” he told reporters in India.

Those words have been welcomed in New Delhi said analyst Muni. “I think there is a far more reassuring feeling in India vis-a-vis the Trump administration than what the initial thought was,” he said.

The shortest and most cost effective land routes between India and Afghanistan lie through Pakistan. However, due to longstanding rivalries between the two countries, India is not allowed to send any exports through Pakistani territory and Afghanistan is only allowed to send a limited amount of perishable goods through Pakistani territory to India.

 

Women Rally Across France to Protest Sexual Harassment, Assault

Hundreds of women took to the streets of Paris and 10 other French cities to protest against sexual harassment in the wake of the scandal surrounding Hollywood mogul Harvey Weinstein.

In Paris, women gathered in Republic Square, waving signs bearing the #metoo hashtag used by tens of thousands of women to share personal stories of harassment and assault.

Similar gatherings were also held in Marseille, Bordeaux and Lille, among other cities.

As the #metoo campaign erupted across the United States, a similar campaign unfolded across France under the hashtag  #balancetonporc or #squealonyourpig. As in America, French women have begun naming and shaming their attackers.

Since it started, several prominent figures have been targeted in French assault claims, including a lawmaker in President Emmanuel Macron’s party, a judge on France’s equivalent of reality show “America’s Got Talent” and Oxford professor Tariq Ramadan, a leading lecturer in Islamic studies.

French-Polish filmmaker Roman Polanski, who is wanted in the U.S. for the statutory rape of a 13-year-old girl in the 1970s, has also been hit with new abuse claims.

The avalanche of accusations was unleashed weeks ago when The New York Times and The New Yorker published reports of women accusing Weinstein of rape and sexual harassment going back decades. Among the accusers were some of Hollywood’s most prominent actresses, including Angelina Jolie, Gwyneth Paltrow and Rosanna Arquette.

Trump Tax Overhaul Under Intensifying Fire as Congress Readies Bill

President Donald Trump’s plan for overhauling the U.S. tax system faced growing opposition from interest groups on Sunday, as Republicans prepare to unveil sweeping legislation that could eliminate some of the most popular tax breaks to help pay for lower taxes.

Republicans who control the U.S. House of Representatives will not reveal their bill until Wednesday. But the National Association of Home Builders, a powerful housing industry trade group, is already vowing to defeat it over a change for home mortgage deductions, while Republican leaders try to head off opposition to possible changes to individual retirement savings and state and local tax payments.

Trump and Republicans have vowed to enact tax reform this year for the first time since 1986. But the plan to deliver up to $6 trillion in tax cuts for businesses and individuals faces challenges even from rank-and-file House Republicans.

House and Senate Republicans are on a fast-track to pass separate tax bills before the Nov. 23 U.S. Thanksgiving holiday, iron out differences in December, send a final version to Trump’s desk before January and ultimately hand the president his first major legislative victory. Analysts say there is a good chance the tax overhaul will be delayed until next year.

The NAHB, which boasts 130,000 member firms employing 9 million workers, says the bill would harm U.S. home prices by marginalizing the value of mortgage interest deductions as an incentive for buying homes. The trade group wants legislation to offer a $5,500 tax credit but says it was rebuffed by House Republican leaders.

“We’re opposed to the tax bill without the tax credit in there, and we’ll be working very aggressively to see it defeated,” NAHB chief executive Jerry Howard told Reuters.

Republicans warned that the Trump tax plan is entering a new and difficult phase as lobbyists ramp up pressure on lawmakers to spare their pet tax breaks.

“When groups start rallying against things and they succeed, everything starts unraveling,” Senator Bob Corker, a leading Republican fiscal hawk, told CBS’ Face the Nation.

Anxiety in high-tax states

One of the biggest challenges involves a proposal to eliminate the federal deduction for state and local taxes (SALT), which analysts say would hit upper middle-class families in high income tax states such as New York, New Jersey and California. The states are home to enough House Republicans to stymie legislation.

The top House Republican on tax policy gave ground over the weekend, saying he would allow a deduction for some local taxes to remain.

“We are restoring an itemized property tax deduction to help taxpayers with local tax burdens,” House Ways and Means Committee Chairman Kevin Brady said in a statement.

But the gesture appeared to do little to turn the tide of opposition to SALT’s elimination.

“I’m not going to sign onto anything until the full package is fully analyzed by economists,” Representative Peter King of New York told the Fox News program Sunday Morning Futures. “The fact that we’re getting it at the eleventh hour raises real issues with me,” he added.

A lobby coalition representing state and local governments, realtors and public unions rejected Brady’s statement outright, saying the move would “unfairly penalize taxpayers in states that rely significantly on income taxes.”

House Republicans have also faced opposition from Trump and others after proposing to sharply curtail tax-free contributions to 401(k) programs and move retirement savings to a style of account that allows tax-free withdrawals, rather than the tax-exempt contributions that are popular with 401(k) investors.

House Republicans now say they could permit higher 401(k) contribution limits but continue to talk about tax-free withdrawals. “We will expand the amount that you can invest. But we’ll also give you an option to actually not be taxed later in life,” House Republican leader Kevin McCarthy told Fox News.

The current cap on annual 401(k) tax-free contributions is $18,000.

Corker said congressional tax committees seem to be falling short of their goal to eliminate $4 trillion in tax breaks to prevent the Trump plan from adding to the federal deficit.

“They’re having great difficulty just getting to $3.6 trillion,” said the Tennessee Republican, who has vowed to vote against tax reform if it increases a federal debt load that stands at more than $20 trillion.

Ohio’s Republican governor, John Kasich, told Fox News Sunday that spending on entitlement programs such as Medicare, Medicaid and Social Security should also be reviewed as part of the effort to pay for tax cuts.

“It may be separate from the tax bill, but it needs to happen,” Kasich said.

In Calm Before Storm, Madrid and Catalan Separatists Maneuver

An air of calm settled over Barcelona after hundreds of thousands of Catalans attended a rally Sunday for Spanish unity.  The atmosphere of the rally was peaceful, as police helicopters monitored from above.

Amid a forest of Spanish national flags and chants of “Viva Espana,” protesters called for the jailing of Catalan president Carles Puigdemont, who on Friday issued a declaration of independence shortly before the Spanish government stripped Catalonia of its autonomy.  

But the calm that followed the rally in the Catalan capital attended by an estimated 300,000 people had the quality of the stillness before a storm.  Few are ready to hazard a prediction of how events in Catalonia may unfold in the coming days in a confrontation that has seen intransigence from both sides.

How Madrid starts imposing direct rule Monday on its restive northeast region, and how separatists respond, will determine the next phase in the month-long cat-and-mouse standoff between the politicians in Madrid and Catalan secessionists.  Both appear to be banking on the other side tiring like a bull played by a matador.

But fears are growing the perilous confrontation, at times visceral and seamed with past historical grievances including from the era of Gen. Francisco Franco, will degenerate into violence, despite the separatists’ determination to remain non-violent and Madrid’s eagerness not to repeat the national police violence that accompanied an October 1 independence referendum.

Olive branch

Despite the sacking of Puigdemont by Madrid among a raft of direct-rule measures announced Friday, including the dissolving of the regional parliament, Spanish ministers offered an olive branch Sunday by suggesting the Catalan leader is not barred from continuing in politics and even welcomed the idea of him taking part in regional elections Madrid has called for December 21.

“If Puigdemont takes part in these elections, he can exercise [his] democratic opposition,” said government spokesman Íñigo Méndez de Vigo.  That suggests the implacable deputy Spanish prime minister, María Soraya Sáenz de Santamaría Antón, a 46-year-old former prosecutor who is charged with overseeing direct rule, is not planning to kick off by arresting Catalan separatist leaders, a move some analysts say would be inflammatory, if it is tried.

Nonetheless, there will be several flash-points in the coming week that could push the confrontation, the worst political crisis to roil Spain since a failed military coup in 1981, down paths neither Madrid nor the secessionists want or could control, say analysts.  They worry the type of clashes seen on October 1, when the national police and Civil Guard tried to distort the referendum, will be seen when Madrid decides  to enforce direct-rule by closing down Catalonia’s parliament and regional government.  “I really will be amazed if we don’t see more of that, sadly,” said Sally Ann-Kitts, a lecturer in Hispanic studies at Britain’s University of Bristol.

“All sides seem to be living in Wonderland,” according to John Carlin, who was fired from his job at the Spanish newspaper El País earlier this month over an article he wrote highly critical of the Spanish government for its response to the independence referendum.

In an article for the London Sunday Times, Carlin argued the biggest risk may come if the idea takes hold “among highly energized independence-seeking youth that they have been the victims of a Franquista coup d’état.”

Another risk is that provocateurs on either side, violent anarchists or hardline Spanish nationalists take advantage of the mess Catalonia is in and organize an incident to provoke a reaction from their opponents.  On Friday young Spanish nationalists attacked a Catalan radio station.

Rival administrations

As things stand, Catalans will wake up Monday to two rival administrations in their region claiming legitimacy, the Puigdemont-led regional government and an emergency authority staffed by Spanish civil servants and led by Sáenz de Santamaría.  On Saturday, Puigdemont defied the fact that he was formally dismissed by the Spanish government and urged Catalans to “defend” the new republic in a televised address.

Separatist leaders and their supporters appear determined to wear Madrid down much as a matador does with a bull by obstructing and resisting the orders issued by Madrid. “The only answer we have is self-defense – institutional self-defense and civil self-defense.  I hope Catalans won’t be intimidated by Madrid,” says Abel Escriba, a pro-independence political scientist.

Madrid is banking on Catalonia’s 200,000 public employees and the executives of public companies in the region accepting direct-rule and ignoring the instructions of the Puigdemont-led regional government.  Public employee, teacher and firefighter unions have proclaimed their members will ignore Madrid’s instruction.

“We are going to ask them to be professional and to continue to provide services for their citizens,” a Spanish official told VOA last week.  The strategy is to be as light-touch as possible as the region is steered to the snap elections in December, which the Spanish Prime Minister Mariano Rajoy is gambling will go against the separatists.

A poll published by El Pais Saturday suggested a small majority of Catalans (52 percent to 43 percent) favor the dissolution of the regional parliament and the holding of the early elections.  Fifty-five percent of Catalan respondents opposed the declaration of independence, with 41 percent in favor of secession.

 

Iceland Heads to Coalition Talks after Inconclusive Vote

Iceland’s ruling Independence Party took the largest share of the vote in the island nation’s parliamentary election but faces difficult negotiations to form a new government after populist candidates showed unexpected strength.

 

A record eight parties won seats in Saturday’s vote as the 2008 global financial crisis continues to roil the island’s politics.

 

Despite topping the poll, the Independence Party saw its support dip to 25 percent. The three-party governing coalition lost a total of 12 seats, leaving it 11 seats shy of a majority in parliament, known as the Althingi. The opposition Left Green Movement finished second with 17 percent, despite predictions it could win the election.

 

“Everyone lost,” said political analyst Gunnar Smari Egilsson said. “The current opposition gained no seats while the ruling coalition lost 12 seats. Populists alone triumphed.”

 

The upstart Center Party and People’s Party both exceeded expectations, winning 11 percent and 7 percent of the vote, respectively, with promises to work for the average Icelander. That proved appealing at a time when many working-class people feel they’ve been left behind by the island’s tourism boom.

 

Iceland became a poster-child for the global financial meltdown in 2008, when its debt-laden banks collapsed. That triggered political as well as economic chaos on this North Atlantic island of 330,000 people, with around 40 percent of the sitting members of parliament losing their seats in each election since the crisis. The current government, which had been in power only a year, collapsed in September amid allegations that the prime minister’s father backed an effort to help the job prospects of a convicted pedophile.

 

Voters took to social media Sunday to lament the country’s third government in four years — though some joked that the position of prime minister was probably the most unstable job in the gig economy.

 

Tourism has bolstered Iceland’s economy in recent years, largely because of the publicity surrounding the 2010 eruption of the Eyjafjallajokull volcano. While ash spewed into the air by the eruption initially stranded millions of travelers worldwide, tourists later flocked to the island to see its pristine glaciers, fjords and the Northern Lights.

 

Despite that growth, many Icelanders fear the financial crisis is not yet over. On social media, debate centered on those still struggling after the “hrunid,” or the collapse.

 

Egilsson — the former editor-in-chief of Frettabladid, Iceland’s largest daily — said left-wing parties missed an opportunity this weekend to defeat the “most unpopular government in history.”

 

“The left focused on middle-class politics, which did not resonate with the vast number of people excluded from the current economic boom,” Egilsson said.

 

The populists promised change and cash.

 

The People’s Party, founded by Inga Saeland, a former contestant on “The X Factor,” capitalized on anger and frustration over corruption. Although she has been criticized for Islamophobic statements and critical remarks about refugees, Saeland sidestepped immigration questions during the campaign.

 

The Center Party, meanwhile, promised to give a windfall to “every Icelander” by distributing shares in government-owned banks to the public.

 

That put the party over the 5 percent threshold needed to win seats in the Althingi, even though party founder Sigmundur David Gunnlaugsson was ousted as prime minister only last year after documents leaked as part of the Panama Papers showed his wife held an account in an offshore tax haven.

 

On election night, spirits were high among Center Party supporters who gathered in Reykjavik, the capital. The predominantly middle-aged men attending the celebration reflected the party’s electoral base.

 

Tour guide Magnus Kjartansson said he voted for Center because he supported Gunnlaugsson and believes the media has smeared the former prime minister.

 

“He is going to solve issues the rest of them are not brave enough to tackle,” he said.

 

 

For Spanish, Catalan Economies, No Winners in Standoff

Xavier Gabriel can take some credit if the tiny Catalan mountain town of Sort is one of the most famous in Spain.

He runs a lottery shop called La Bruja de Oro, or The Golden Witch, in a town whose name, aptly, means “Luck” in Catalan. Its fortune in having sold many prize-winning tickets has made it a household name and a successful online business.

But the crisis surrounding Catalonia’s push for independence has changed life for 60-year-old Gabriel. He joined more than 1,500 companies in moving their official headquarters out of the wealthy region in recent weeks. Their main fear: that they would no longer be covered by Spanish and European Union laws if Catalonia manages to break away, dragging their businesses into unknown territory.

“The time had come to make a decision,” said Gabriel, who employs 16 people and describes himself as a proud Catalan.

​Hedging their bets

Like Gabriel’s, the vast majority of companies that moved their headquarters didn’t transfer workers or assets, such as bank holdings or production equipment. So far, it’s mainly a form of legal insurance. But as the political crisis escalates, the risk is that companies are deferring investments and hiring. There is evidence that tourists are holding off booking, perhaps frightened by images in the media of police crackdowns, street demonstrations and strikes.

And the situation risks getting worse before it improves: the central government’s decision Friday to take control of the region could spiral out of control if there is popular resistance, whether by citizens or local authorities like the Catalan police force.

“There is absolutely no doubt that the crisis is having a very damaging effect on the economy,” said Javier Diaz Gimenez, an economics professor at Spain’s prestigious IESE Business School.

Financial markets in Spain have so far fallen only modestly, reflecting investors’ apparent belief that the tensions will eventually be resolved. The Spanish government has called a regional election in Catalonia for Dec. 21 and could later consider revisions to the constitution that might placate some of the independence supporters.

But that could take some time, Diaz Gimenez says, given how confrontational both sides have been.

Banks leave

The list of businesses moving headquarters includes Catalonia’s top two banks, Caixabank and Sabadell, which are among Spain’s top five lenders. Then there is the Codorniu cava sparkling wine maker for which Catalonia is famous. Another well-known cava maker, Freixenet, is also planning to follow if the independence drive continues. Publishing giant Planeta, the world’s leading Spanish-language publisher and second biggest publisher in France, has also moved its official address out of Catalonia.

Caixabank says it suffered a moderate but temporary run on deposits because of the crisis, but said it has since recovered and was adamant the move was permanent.

Shares for Caixabank, Sabadell and some other companies have been volatile, falling after the Oct. 1 vote for independence and jumping sharply when they announced their decision to move headquarters.

Tip of the iceberg

Lottery shop owner Gabriel says ticket sales this month are up nearly 300 percent over last year, a rise he attributed to popular support for his decision to move his business.

Diaz Gimenez said the decisions to move headquarters, while not immediately affecting jobs, were “just the tip of the iceberg.”

“Plans to relocate firms or invest elsewhere are going to accelerate and some of it is going to go to, say, Poland, and it’s never going to come back,” he said.

“People that were thinking about investing in Spain and Barcelona are starting to think again,” he said. “It’s not just Catalonia. It’s the mismanagement by Spain, which is proving that it’s not a serious country because it cannot solve this thing.”

Spanish economy humming

The turmoil, ironically, comes just as Spain has been enjoying some of the fastest economic growth in Europe.

Its economy, the fourth-largest in the 19-country eurozone, grew by a hefty quarterly rate of 0.9 percent in the second quarter. The government has maintained its forecast for growth in 2017 at 3.1 percent, but revised its estimate for 2018 from 2.6 percent to 2.3 percent because of the political crisis. Moody’s credit rating agency has warned that a continued political impasse and, ultimately, independence for Catalonia would severely hurt the country’s credit rating.

Billions at stake

Tourism seems to be taking the biggest hit so far.

Experts say spending in the sector in Catalonia in the first two weeks of October — that is, following the independence referendum — was down 15 percent from a year earlier.

Tourism represents about 11 percent of Spain’s 1.1-trillion euro ($1.3 trillion) gross domestic product, with Catalonia and its capital, Barcelona, providing a fifth of that, being the most popular destinations for visitors.

Exceltur, a nonprofit group formed by the 25 leading Spanish tourist groups, expects growth in tourism this year to ease from an estimated 4.1 percent to 3.1 percent.

Reservations in Barcelona alone are down 20 percent compared with last year, it said. If the trend continues in the final three months of the year, it could lead to losses of up to 1.2 billion euros ($1.41 billion) in the sector, which in turn could affect jobs.

Analysts fear that the independence movement’s stated aim of continuing to create as much social and economic chaos for Spain as possible could exacerbate the situation. The Catalan National Assembly group has been openly talking about a boycott against Spain’s top companies and major strike activity.

“Spain, its tourism, everything is very dependent on image,” Diaz Gimenez said. “And this is just killing it.”

Iceland’s Political Landscape Changing

The political landscape of Iceland has changed, according to preliminary results from Saturday’s election.

The Independence Party, which has won almost every election since independence from Denmark in 1944, is losing its center-right grip thanks to two scandals. Stepping in to that void are left-leaning parties.

Part of the current ruling coalition, the Independence Party, won 26 percent of the vote, down 3 percentage points from last year.

The main opposition Left Green Movement came in second with 17 percent of the vote.

The newly formed Center Party of former Prime Minister David Sigmundur Gunnlaugsson was third with 11 percent of the ballots. Gunnlaugsson was forced out of office last year when his name was found in the Panama Papers scandal that exposed worldwide tax evasion networks.

Katrin Jakobsdottir, leader of the Left Green Movement, told Reuters she is not ruling out working with the new Center Party. 

“Nothing is out of the picture, but our first choice is to work with the parties on the left,” she said. “We’d hoped that the opposition would get a majority, but that is unclear now.”

Talks to form a ruling coalition government are expected to last for several months.

Current Iceland Prime Minister Bjarni Benediktsson, a member of the Independence Party, called the election last month after a member of the three-party center-right coalition resigned over a controversy about granting clemency to a child molester.

The clemency scandal coupled with the Panama Papers scandal led to the collapse of the government, prompting the second snap parliamentary election in a year.

Iceland has recovered spectacularly from the 2008 financial crisis, which forced the country into near bankruptcy. But the scandals have fueled anger and distrust among voters, who are increasingly concerned about inequality and immigration threatening one of the world’s most homogeneous countries.

Iceland’s 63-member parliament is one of the oldest in the world.

On Climate Change, It’s Trump vs. Markets

At the 2015 Paris summit, world leaders pledged to take steps to avoid catastrophic climate change. This November in Bonn, Germany, U.N. negotiators will be back, working out the details of how to cut emissions of planet-warming gases. It is the first conference since President Donald Trump said the United States would withdraw from the agreement. That leaves questions about the direction of U.S. greenhouse gas emissions. As VOA’s Steve Baragona reports, the answer is not straightforward.

Artisans in Mali Hope to Bring Back an Ancient Fabric Style

Artisans in Mali are hoping that Bogolan, a traditional cotton fabric, will continue to fascinate Western fashion designers and provide jobs at home. VOA’s Teffera Girma Teffera and Bagassi Koura visited a small neighborhood in central Bamako where artisans are hard at work. Salem Solomon narrates.

Retailers Offer New Tools to Help Shoppers Find Clothes That Fit

Stores watching Amazon take a larger share of clothing sales are trying to solve one of the most vexing issues for online shoppers: finding items that fit properly.

The retailers are unleashing tools that use artificial intelligence to replicate the help a salesperson at a store might offer, calculate a shopper’s most likely body shape, or use 3-D models for a virtual fitting room experience. Amazon, which some analysts say will surpass Macy’s this year as the largest U.S. clothing seller, is offering some customers an Alexa-powered device that doubles as a selfie-stick machine and a stylist.

Retailers want to reduce the rate of online returns, which can be up to 40 percent, and thus make customers happier — and more likely to be repeat shoppers. And the more interaction shoppers have with a brand, the more the technology will learn about shoppers’ preferences, said Vicky Zadeh, chief executive of Rakuten Fits Me, a tech company that works with QVC and clothing startup brands.

 

“It’s all about confidence,” she said. “If they have the confidence to buy, they will come back to the retailer time and time again.”

The push is coming from big names like Levi’s and The Gap and startups like Rhone and Taylrd.

Levi’s new Virtual Stylist texts back and forth with online customers to offer recommendations, based on their preferences. Marc Rosen, Levi’s president of global e-commerce, said early tests show the chatbot is driving more browsers to become buyers.

Reliance on body shape

Rakuten Fits Me, which works with QVC and other companies, fine-tuned its fitting technology this summer and said its retail partners now offer garments that should fit shoppers’ body shapes when the customer first does the initial search. Shoppers provide three measurements — height, weight and age — and then it calculates a person’s most likely body shape, not size, to determine the fit for any garment and offer more accurate recommendations.

And Gap Inc. has an augmented reality app in collaboration with Google and startup Avametric that allows shoppers to virtually try on clothes. Shoppers enter information like height and weight and then the app puts a 3-D model in front of them. However, the tool only works on Google Tango smartphones.

Sebastian DiGrande, executive vice president and strategy and chief customer officer at Gap, said the augmented reality app had produced good feedback, but the company is still determining whether shoppers really want a virtual 3-D model.

Clothing brand Tommy Hilfiger similarly has built its mobile app around the camera and image recognition. It has an augmented reality feature enabling shoppers to see what the clothes look like on a virtual runway model — but not their own body type.

And men’s online clothier Bonobos, now owned by Wal-Mart, launched an app that offers customers a virtual closet to see items they bought and saved. The app is converting browsers to buyers at a faster rate, said Andy Dunn, founder of Bonobos.

Companies are smart to offer new tools, but many are too “gimmicky,” said Sapna Shah, principal at Red Giraffe Advisors, which makes early-stage investments in fashion tech.

“If it’s not Amazon, will brand-specific apps be the way for people to shop in the future?” she said. “How many apps are people going to have on their phone?”

And all the companies need to win over customers who prefer to touch and see things in person.

“It’s great that they’re busting their tail with all these apps, but I am skeptical,” said Doug Garnett of Portland, Oregon. Garnett said he buys some clothes online when he knows and understands the brands, but otherwise, “I really need to see them on my body before I act, and really prefer that to be in a store.”

Personalized offers

As Amazon dives further into fashion, it could use its base of data to spur trends and personalize offers for its customers. Its Echo Look features a built-in camera that photographs and records shoppers trying on clothes and offers recommendations on outfits. It works with its Style Check app, using machine learning and advice from experts. The potential: Learn shoppers’ styles and recommend outfits to buy. Amazon reportedly is exploring the idea of quickly fulfilling online orders for custom-fit clothing.

The company also reportedly acquired Body Labs, which creates true-to-life 3-D body models.

“We’re always listening to our customers, learning and innovating on their behalf and bringing them products we think they will love,” said Amazon spokeswoman Molly Wade. She wouldn’t comment on the prospect of custom-fit or the reports about Body Labs.

Steve Barr, the U.S. retail and consumer sector leader at consultants PwC, said that Amazon was trying for a curated experience based on massive data analytics. But he said he thought such an approach had limitations.

“No matter how great Amazon is with artificial intelligence and predictive behaviors,” Barr said, “they can’t put a red tab on a pair of a jeans or a swoosh on a pair of shoes.”

Azerbajani Opposition Holds Anti-corruption Rally in Baku

Hundreds of people have attended an opposition-organized anticorruption rally in Azerbaijan’s capital, Baku.

The protest Saturday was organized by the National Council of Democratic Forces (NCDF) — an umbrella group of Azerbaijani opposition forces, under the slogan “No To Robbery.”

Activists from the Popular Front Party, People’s Democratic Party, National Statehood Party, Musavat Party youth organization, Muslim Union, and NIDA movement attended the rally.

The rally held in the Mehsul stadium in Baku’s Yasamal district was approved by the city authorities. Police said the protest was attended by an estimated 1,000 people, although opposition activists say the number was higher.

Protesters chanted slogans like “End to corruption” and “Freedom for political prisoners!”

Police cordoned off the area around the stadium as part of increased security measures.

No incidents were reported, and the rally ended peacefully, police said.

The opposition, as well as Western governments and international human rights groups, have criticized Azerbaijani President Ilham Aliyev’s government for persistently persecuting independent media outlets, journalists, and opposition politicians and activists.

Aliyev, who has ruled the oil-rich South Caucasus country of nearly 10 million people since shortly before his father’s death in 2003, has shrugged off the criticism, and the authorities deny that there are political prisoners in the country.

Recent international corruption investigations have also found that Aliyev’s family makes frequent use of offshore companies to hide its wealth and mask the ways it gains shares in Azerbaijan’s most lucrative businesses.

During the rally, Ali Karimli, the leader of the Popular Front Party, which is part of the NCDF, denounced government corruption. He said the government doesn’t use oil revenues effeciently, and high-level corruption deprives Azerbaijanis from benefiting from oil billions.

Human rights activist Oktay Gulaliyev told the rally that freedom of speech was under threat in the country.

“Access to independent, critical Internet sites has been blocked,” Gulaliyev said. “There are more than 160 [political] prisoners in the country, and up to 20 of them are journalists and bloggers.”

The rally came after the Parliamentary Assembly of the Council of Europe (PACE) earlier this month voiced concerns over Azerbaijan’s “unprecedented crackdown on human rights” as well as checks and balances, and the functioning of justice in the country.

PACE on October 11 passed a resolution blasting “the reported prosecution and detention of leaders of NGOs, human rights defenders, political activists, journalists, and bloggers,” although some of them were released last year.

PACE cited cases of “torture and inhuman or degrading treatment during arrest, in police custody, and in prisons, and the lack of effective investigations, violations of the right to a fair trial, and violations of the right to freedom of expression, association, and assembly.”

The resolution also called on Azerbaijani authorities to “begin real and meaningful reforms” to remove the obstacles to the work of journalists and rights defenders.

Azerbaijani Opposition Holds Anticorruption Rally in Baku

Hundreds of people attended on October 28 an opposition-organized anticorruption rally in Azerbaijan’s capital, Baku. The protest was organized by the National Council of Democratic Forces (NCDF) — an umbrella group of Azerbaijani opposition forces, under the slogan “No To Robbery.” Protesters chanted slogans like “End to Corruption” and “Freedom for Political Prisoners!” (RFE/RL’s Azerbaijani Service)

Spain Dissolves Catalonia’s Parliament

The Spanish region of Catalonia that once enjoyed a considerable amount of autonomy is now under the direct control of Madrid.

The Spanish prime minister dissolved Catalonia’s parliament, just hours after the regional body voted Friday in favor of independence from Spain.

In addition to dismissing parliament, Prime Minister Mariano Rajoy has called for snap Catalan elections Dec. 21 and has stripped Catalonia’s most senior police officials of their powers.

​Resolution to secede

The resolution to secede from Spain was drafted and presented to Catalonia’s parliament by the more radical separatist factions of the regional coalition headed by Catalonia President Carles Puigdemont. It passed with 70 votes in favor, 10 against, and two blank votes.

WATCH: Fears of Violence as Spain Imposes Direct Rule Following Catalonian Independence Declaration

Spain’s ruling center-right Popular Party and the mainstream opposition socialists, who hold just under half the seats in the Catalan parliament, boycotted the session.

Spain’s Senate responded to Catalonia’s independence move by approving the application of constitutional article 155, which officially authorizes the central government to suspend Catalan authorities and take over the region’s administration.

Immediately following the Spanish senate vote to impose direct rule on Catalonia, the government issued an official bulletin announcing that Puigdemont and his Vice President Orio Junqueras were no longer the heads of the Catalonia regional government.

“We will not allow a group of people to liquidate the country,” said Prime Minister Rajoy.

Catalan leader Puigdemont encouraged supporters to “maintain the momentum” of an independent Catalonia in a peaceful manner.

​Allies back Spain

The European Union Council President Donald Tusk, who has supported Madrid’s approach to the crisis, said via Twitter that he hoped “the Spanish government favors force of argument, not argument of force.”

NATO, of which Spain is a member, said in a statement, “The Catalonia issue is a domestic matter which should be resolved within Spain’s constitutional order.”

Madrid’s efforts to keep the country united also has the continued support of the U.S. government. State Department spokeswoman Heather Nauert said in a statement, “… the United States supports the Spanish government’s constitutional measures to keep Spain strong and united.”

Voters in Catalonia voted in favor of independence in an Oct. 1 referendum, but fewer than half of those eligible to cast a ballot took part, with opponents boycotting the process. Rajoy’s government has dismissed the referendum as illegal. 

Weirdness, Few Tourists, Return to Key West After Irma

Things are weird, as usual, in Key West.

A pair of Vikings push a stroller full of stuffed chimps down Duval Street. A man with a ponytail swallows a steel sword. People dressed only in body paint and glitter wander and jiggle from bar to bar.

Fantasy Fest, one of Key West’s major tourist draws of the year, is in full swing. And that’s a relief for Florida Keys business owners trying to weather the economic storm that hit after Hurricane Irma battered the middle stretch of the tourism-dependent island chain.

Bucket list trip

The festivities have not disappointed Gary Gates from Buffalo, New York, who planned this “bucket list” trip 10 months ago with six friends.

“We were coming whether there was a hurricane or not,” the former NFL cameraman said. “I’ve never seen anything quite like this. To come down here and actually see people dressed in all kinds of costumes — or no costumes at all — was something that I needed to see.”

Gates flew into Key West and has not left during its annual 10-day festival of costume parties and parades, so he has not seen the devastation that lingers more than a month since Hurricane Irma made landfall Sept. 10 about 20 miles north of the city.

​Middle Keys hit hardest

The mostly residential middle stretch of the island chain took the brunt of the hurricane’s 130-mph winds. The area is almost entirely brown, with debris piled alongside the highway and mangroves stripped bare. A stranded boat was christened the SS Irma with spray paint and offered “free” to drivers passing by.

But at opposite ends of the 120-mile-long island chain, tourist attractions in Key Largo and Key West escaped significant damage.

Dolphins Plus Bayside was ready for visitors three days after Irma’s landfall, but business has been down by half compared to last fall, said Mike Borguss, the third generation in his family to run the Key Largo attraction.

Some staff now live with friends or in temporary trailers parked outside their damaged homes, but the dolphins swim up to the water’s edge to check out new people toting cameras, and an adjacent hotel property is open for weddings and other events that had to be canceled elsewhere in the Keys because of Irma, said Art Cooper, Borguss’ cousin and curator at Dolphins Plus Bayside.

“The water’s pretty, the weather’s beautiful and we wish you were here,” Cooper said.

​Tourism down significantly

Scott Saunders, president and CEO of Fury Water Adventures, estimated tourism in Key West has been about a third of what it was at this time last fall, even though the city’s hotels, restaurants, cruise ship operations and beaches quickly reopened after the storm.

“There’s no reason not to be doing everything we did last year,” Saunders said before one of his fleet’s sunset cruises. “We should be having that tourist base down here, but we haven’t had any.”

Jodi Weinhofer, president of the Lodging Association of the Florida Keys and Key West, blames news coverage of Irma, but not the hurricane itself, for the downturn.

“There was over a $100 million worth of negative press,” Weinhofer said.

Tourism big business in Keys

Tourism is a $2.7 billion industry in the Keys, supporting 54 percent of all jobs in the island chain, according to Monroe County’s Tourist Development Council.

Some jobs have been lost to Irma. Last week, Hawks Cay Resort on Duck Key, about 35 miles northeast of Irma’s landfall, let go 260 workers amid ongoing repairs. The Islamorada Resort Company said its four properties in the Middle Keys will be closed for renovations over the next six months.

But up and down the island chain, bars, marinas and mom-and-pop establishments able to reopen have been hiring laid-off workers and keeping people from moving away, Daniel Samess, CEO of the Greater Marathon Chamber of Commerce.

About 70 percent of roughly 35 hotels and motels in the Middle Keys are open, though those rooms mostly are filled by displaced residents and state and federal recovery workers. Officials plan to provide alternative housing and open those hotel rooms fully to tourists within the next two months, Samess said.

Final sweeps for debris in some parts of the Keys are scheduled Sunday, which also is the finale for Fantasy Fest. So far, the amount of broken tree branches and remnants of homes and belongings wrecked by Irma could fill over 133 Goodyear Blimps, according to Monroe County officials.

The cleanup will help create a good impression for visitors to Key West long before they arrive in the southernmost city in the continental U.S., said Key West Mayor Craig Cates.

“It’s a scenic cruise in your car coming down, and it’s very important that they get it cleaned up,” he said.

Italy Blocks DNA Evidence That Could Exonerate Human Trafficking Suspect

Italian prosecutors will not accept as evidence a DNA test that could exonerate an Eritrean man accused of smuggling thousands of Africans to Italy.

It’s the latest setback for Medhane Tesfamariam Berhe, whose trial has continued for more than a year, despite mounting evidence that Italian authorities are prosecuting the wrong person.

Berhe’s lawyer, Michele Calantropo, argued during a 45-minute hearing Wednesday that his client is the victim of mistaken identity in a case that has gained worldwide attention.

Berhe’s mother, Meaza Zerai Weldai, 59, flew this week from Asmara, Eritrea, to complete a DNA test to prove her maternity and establish Berhe’s identity.

Calantropo contends that the actual person suspected of trafficking migrants shares Berhe’s first name. He believes Berhe was wrongfully identified in 2016 when he was arrested in Sudan and extradited to Italy.

​Mistaken identity

Soon after the extradition, doubts emerged about the identity of the person Italian and British authorities had captured.

Prosecutors released photos of a man who looked nothing like the person they had taken into custody. Instead, the person in the photos resembled Medhanie Yehdego Mered, whom many believe to be the real trafficker.

Other discrepancies include:

Numerous documents vouch for Berhe’s whereabouts in Eritrea at times prosecutors say he was trafficking people in Libya.
Vocal analysis did not produce a match between Berhe and a conversation that authorities wiretapped with the suspected smuggler in 2014.
Individuals smuggled by Mered say Berhe is not the same person.
Even Mered’s wife, Lidya Tesfu, who lives in Sweden, says authorities have the wrong man. Tesfu did not immediately respond to a request for comment from VOA.
In July, The New Yorker reported that it had talked by phone to Mered, who confirmed his involvement with trafficking and expressed amazement at the incompetence of European authorities. “These European governments, their technology is so good, but they know nothing,” he told the magazine.

Prosecutors block evidence

The Italian investigators prosecuting the case would not accept the new DNA test as evidence in Berhe’s trial, blocking its admission. In Italy, both the prosecution and defense must agree to admit evidence that emerges outside of an investigation.

“We are basing our legal proceedings on other data, not on DNA,” Prosecutor Annamaria Picozzi said in court this week, according to The Guardian.

Lead prosecutor Calogero Ferrara did not respond to VOA’s email or phone requests for an interview.

The sister of the man being held in custody, Hiwet Tesfamariam Berhe, believes this is a miscarriage of justice.

“I don’t understand it. In a country where there is democracy, where there is justice, they violated my brother’s rights. And they kept him for more than a year for something he has no knowledge of and to say that we have human rights, puffing out their chest and claim that there is human rights? I don’t know where human rights are,” she told VOA by telephone from Norway, speaking in Tigrigna.

The next hearing is scheduled for Nov. 9, a year and a half after authorities extradited Berhe. Despite failing to produce evidence linking Berhe to the crimes he is accused of committing, prosecutors show no signs of giving up the case.

“Instead of playing with one poor, innocent kid’s life and time, why don’t they really find the people who are really committing these things. They are using us as a way to buy time because they know the truth,” Berhe’s sister said.

New Gadgets We May (or May Not) Need

The ever expanding field of consumer technology just got several dozen new specimens, showcased at the Netherlands’ first Consumer Electronics Show. None are expected to spectacularly change our lives … but at least some of them may prove to be truly useful. VOA’s George Putic reports.

Catalonia Parliament Votes for Independence from Spain

The Catalan regional parliament voted for independence from Spain on Friday by approving a resolution to convene a constitutional assembly to form a sovereign republic. The move was accompanied by applause and embraces between lawmakers present, who sang the Catalan anthem.

The resolution to secede from Spain was drafted and presented by the more radical separatist factions of the regional coalition headed by Catalonia President Carles Puigdemont, and it passed by 72 votes in favor, 10 against and 2 blank votes.

Spain’s ruling center-right Popular Party and the mainstream opposition socialists, who hold just under half the seats in the Catalan parliament, boycotted the session.

Friday’s resolution by the Catalan regional parliament ends a period of uncertainty over Catalan independence that has prevailed since an October 1 referendum on independence that won 90 percent of the vote in a 50 percent voter turnout.

Puigdemont has held back from declaring independence for fear of triggering direct rule by the central government, which has been moving to take over the region’s finances, police services, and key infrastructure and administrative bodies.

“It was very astute on the part of Puigdemont to let parliament vote on independence resolution prior to declaring it, as it gives him certain legal cover,” a former senior member of the Spanish parliament told VOA.

Puigdemont could face a 25-year prison sentence for sedition. The central government already has jailed two separatist leaders and is prosecuting other officials accused of using public resources to support the independence bid.

Spain’s Senate responded to Catalonia’s independence move by approving the application of constitutional article 155, which officially authorizes the central government to suspend Catalan authorities and take over the region’s administration.

“The turn of events … has left us with no recourse but the application of constitutional prerogatives to reinstitute the legal order in Catalonia,” said Spain’s senate president.

Spanish Prime Minister Mariano Rajoy appealed for national “calm” and called together a special cabinet meeting for later Friday.

“The government will take whatever measures are necessary. We will not allow a group of people to liquidate the country,” he told reporters.

Puigdemont, accompanied by other members of the Catalan regional government, lawmakers and hundreds of mayors, crowded onto the steps of the parliament building to address thousands of supporters gathering outside, shouting “liberty.”

In a short speech, Puigdemont said, “We ourselves must now form our own structures and our own society.”

Catalan, Spanish Historians Continue Dueling, Using History as Battlefield

History is a battlefield in the contentious independence standoff between Spain and Catalan secessionists, pressed into service by each, shaped as a weapon and hurled with abandon.

Both sides in the confrontation that threatens the territorial integrity of Spain have raised the political temperature by citing some of the darkest chapters in Spanish and Catalan history to provoke or to bolster support.

Underscoring the struggle for hearts and minds are disputes about who did what to whom, stretching back to 1714, an emblematic year for Catalans, when after a long siege the Catalan capital of Barcelona, which was loyal to the Habsburg dynasty, fell to the troops of the Bourbon monarch, Felipe V.

The victorious king shuttered Catalonia’s parliament, closed the city’s universities and banned Catalan as the official language.

Since then, the Catalans have struggled with three centuries of exclusion and repression by Madrid, enjoying short periods of autonomy and recognition, and long periods of being forced into a cultural homogeneity dictated by the dominant Castilian nationalism of Spain.

When Spain’s current monarch, Felipe VI, broadcast earlier this month in an unprecedented televised address, his condemnation of Catalan separatists for their “lack of loyalty to the Spanish government,” casting their October 1 independence vote as illegal and undemocratic, Catalan secessionists reacted by referencing the 18th century repression of his namesake.

Catalan commentators, even those holding pro-unity sentiments, complained the king was not the best person to deliver a scathing attack on the independence aspirations of Catalan secessionists, arguing he was merely feeding into the separatist narrative of Madrid’s long-standing disdain for the sub-nationalisms of the Catalans, Basques and Galicians, and the Castilian oppression of Catalonia stretching back to 1714.

The most frequent references to the past that both sides have used to frame the independence standoff roiling Spain, however, is to the Spanish Civil War and the dictatorship of General Francisco Franco.

Regional autonomy was a key driver of the Spanish Civil War — Franco and the nationalist army opposed the leftwing Republican government’s extension of autonomy to Catalonia and the Basques.

To hear some Catalan separatists speak, Spain’s Prime Minister Mariano Rajoy is the second coming of General Franco, a hyperbolic comparison considering that in the purges following the civil war the Franco regime executed an estimated 3,000 to 4,000 Catalans.

That’s a far cry from the violent clashes at voting stations on October 1 when 800 were injured as police, on the orders of Madrid, sought to close voting stations in Barcelona.

“The suppression Catalans lived with during the Franco dictatorship has remained in people’s hearts, and has been transmitted to my generation,” argued Catalan filmmaker Irene Baque.

Some critics of the separatists counter that more Catalans likely were killed during the civil war by the Communist-dominated Republican government as it sought to purge anarchists, Trotskyites and other political undesirables from its ranks — an action that fractured the left as it sought to fend off Franco’s fascist uprising.

And they note that during the 1939-1975 Franco dictatorship there were plenty in the ranks of Catalonia’s middle and landed classes who saw conservative values and law and order as higher priorities than Catalan nationalism. They were supportive of the regime and thrived under it.  

Some hardline Spanish nationalists have gleefully stoked the fires of past controversy.

Earlier this month, Pablo Casado, a lawmaker with Rajoy’s ruling People’s Party, warned Catalan leader Carles Puigdemont that history might repeat itself. Casado said his fate could be similar to that of one of his predecessors, Lluis Companys, who ended up being shot in 1940 by General Franco.

And there was deliberate provocation by Spanish nationalists in Madrid last month when some cheered national police units as they headed to Catalonia to try to prevent the October 1 independence vote by shouting “Viva Franco.”   

“This is a very long lasting political conflict,” said Josep Costa, a political scientist. “The issue of the status of Catalonia within Spain is a problem that comes out every time there is a democratic opening of Spanish society.”

Both sides can be accused of airbrushing the complex history of Spain. Most Spaniards remain unaware the first book printed in Spain was in Catalan. Pro-unity Catalan historians complain that they get snubbed by Catalonia’s cultural institutions, which are dominated the pro-secessionists.

Spanish and Catalan historians have been guilty of mutual ignorance for years, with Spanish historians disregarding Catalan contributions and glorifying the story of the Castilians, and their Catalan rivals doing the reverse and demonizing Spain, according to Swiss journalist Raphael Minder.

“National identity is rooted in history, which is why so much importance is attached to celebrating one event rather than another,” he wrote in his new book on Catalan rebel politics, The Struggle for Catalonia.

He added, “When there is serious disagreement over the past, it becomes even harder to agree over the present, let alone the future.”

 

 

 

US Economy Expands at 3 Percent Rate in Third Quarter

The U.S. economy expanded at a three percent annual pace in July, August and September, about the same pace as the prior quarter.

Friday’s Commerce Department data surprised economists, who thought damage from two hurricanes would cut growth to a lower level. The data show the world’s largest economy is now about 2.3 percent larger than it was at this time last year.

Stuart Hoffman of PNC bank says the “solid” growth data is likely to help corporate profits and reinforce the U.S. central bank’s determination to raise interest rates in December. Josh Bivens of the Economic Policy Institute says the figures “overstate” growth, and he notes inflation is still below the Fed’s two percent target, making an interest rate hike unnecessary at this time.

Officials raise rates to fend off high inflation by cooling economic activity. Rates were slashed during the recession to bolster growth and employment. 

Federal Reserve leaders gather Tuesday and Wednesday in Washington to debate interest rate policy. Most economists predict they will not raise rates until their next meeting in mid-December.

Next Friday, government experts will publish unemployment data for October. September’s rate was a low 4.2 percent.

Britain: North Korea Was Behind May Global Cyberattack

British Security Minister Ben Wallace said Friday Britain believed “quite strongly” that North Korea was responsible for a global cyberattack earlier this year.

The cyberattack, which occurred in May, disrupted government services and businesses throughout the world, including one-third of English hospitals.

“North Korea was the state that we believe was involved in this worldwide attack on our systems,” Wallace said in an interview with the BBC. He added the British government was “as sure as possible.”

More than 300,000 computers in 150 countries were infected within days of the “WannaCry” attack, dubbed as such because the WannaCry ransomware cryptoworm was deployed.

A report released Friday by Britain’s National Audit Office (NAO) said WannaCry was a relatively simple attack that Britain’s National Health Service (NHS) could have prevented if it adhered to basic information technology best practices.

NHS digital security head Dan Taylor described the event as “an international attack on an unprecedented scale” and said the agency has “learned a lot.”

Minister Wallace said Britain must act quickly to strengthen its cybersecurity program.

“It’s a salient lesson for us all that all of us, from individuals to governments to large organizations, have a role to play in maintaining the security of our networks,” Wallace said.

Ransomware attacks utilize a type of malware that encrypts files on infected computers and demands money to unlock them.

Who Will Be the Next Fed Chief?

President Trump says he is “very close” to picking a person for the most important economic post in the country: the head of the US Federal Reserve. Current Chair Janet Yellen, whose term expires early next year, is one of at least five candidates under consideration. Regardless of the president’s choice, most analysts who spoke with VOA don’t expect big changes in US monetary policy. But as Mil Arcega reports, others say, sooner or later the next Fed Chief could face a slowing economy.

Party’s Launch Could Upend Erdogan, Turkey’s Political Establishment

Turkish President Recep Tayyip Erdogan, accused by critics of amassing power and creating the latest in a series of autocratic governments in the country, faces a new political threat after the launch Wednesday of the Iyi Party by Meral Aksener.

The former interior minister boosted her profile by campaigning against a referendum on extending the Turkish president’s powers, and now observers see her as potentially posing the biggest challenge to Erdogan’s re-election bid. Some polls show she could secure more than 20 percent of the vote and threaten the majority that Erdogan’s party now holds in parliament.

Aksener, a right-wing nationalist, is promising to shake up Turkish politics with the launch of her Iyi, or “Good,” Party.

“It is time to say new things,” she said Wednesday in a speech at the kickoff of her party, where she promised to take things in a new direction. “Yes, we have major problems. But Turkey has enough powers to resolve them. We have hopes and dreams. We want a prosperous and just Turkey. We want a free society. We want a happy Turkey.”

Criticism on human rights

The Good Party seeks to place itself in the center-right of Turkey’s political spectrum. In what appeared to be a jab at the Erdogan government and its post-coup-attempt crackdown on journalists, Aksener took aim at the country’s recent human rights record.

“Media should not be under pressure. Democratic participation, a strong parliament and the national will are irreplaceable,” she said.

Turkey has been under emergency rule since last year’s failed coup, with tens of thousands arrested or dismissed from their jobs.

Aksener, interior minister during the 1990s, gained prominence this year in a formidable campaign against a referendum to extend Erdogan’s powers. The ballot measure was approved, but by the narrowest of margins — something analysts attributed to the success of Aksener’s campaign.

Several recent opinion polls have suggested she enjoys strong support, with one poll giving any party she leads more than 20 percent in what political analysts say could be a rising tide of discontent about the crackdown.

“She clearly rides the wave of current political anxiety and dissatisfaction of voters with existing political parties,” said political consultant Atilla Yesilada of GlobalSource Partners, a political and economic analysis service. “The economy is slowing down and the currency is going down. People are accumulating foreign currency. There is anxiety about what the future will bring.”

Turkey is suffering both double-digit inflation and unemployment, while the currency is approaching record lows fueled by diplomatic tensions with many allies and concerns about the country’s large foreign debt. A driver of Erdogan’s success at the polls was a booming economy, characterized by massive infrastructure projects.

Appeal to AKP constituency

If Erdogan’s fortunes are in fact changing, and supporters insist they are not, Aksener could benefit.

“She is getting cross-party support,” said political scientist Cengiz Aktar, highlighting that a parliamentary deputy of the center-left CHP Party had joined her ranks. “But the natural terrain of her party where she can really grow is the constituency of the [ruling] AKP Party.”

The timing of the founding of the Good Party is opportune for Erdogan opponents, coinciding with what observers say are signs that Erdogan’s AKP is in disarray. Erdogan is in the midst of purging dozens of the country’s mayors — including those of the capital, Ankara, and Istanbul — in an effort to revitalize his party ahead of general and presidential elections in 2019.

“This whole process is demoralizing the [AKP] party. Their willingness and desire to fight the next election is diminishing as we speak,” said political consultant Yesilada. “It’s like the old joke in the office: ‘Whippings will continue until morale improves.’ It does not work that way,” the analyst said.

While opinion polls give AKP a commanding lead over its rivals, some polls record a softening in AKP support, with as much as 20 percent of its voters considering not supporting the party. But Aksener’s political past is seen as a potential handicap.

“Her party of origin is the extreme right MHP Party, which is far from being a center-right party,” said Aktar. “Her brain team [advisers], her very close team, are almost all [of] MHP origin. Among them are some very radical figures. She needs to broaden her political staff if she is to broaden her constituency. For the time being, in Turkish public opinion, she is considered an offspring [of] the MHP.”

Winning over Kurdish voters

In the eyes of skeptics, Aksener’s political baggage will be her biggest hurdle in seeking to win over AKP Kurdish voters, who account for about a fifth of its support. The MHP, her old party, is deeply hostile to the granting of greater rights to Turkey’s large Kurdish minority. But with Erdogan increasingly courting nationalist voters, he has enforced a major military crackdown in Kurdish regions. Ankara’s tough stance against the recent Iraqi Kurdish independence referendum, some analysts say, has further alienated traditional AKP Kurdish voters.

“The AKP Kurds have no alternative, even though Erdogan has been quite tough on the Kurds. The traditionalist Kurds know CHP or MHP is no alternative. They will evaluate now whether the Iyi Party is serious,” said Aktar.

Aksener reportedly is planning to spend time in the Kurdish region. Critics charge that the logo of her party, perhaps by coincidence, is an image of the sun, a traditional symbol of Kurdish nationalists.

“Aksener, during her time as interior minister, was considered a heavily anti-Kurdish politician, so she needs to change this image and it won’t be easy. There are no good memories about her among the Kurdish population,” said Aktar.

Aksener’s tenure as interior minister was at the height of fighting against the Kurdish separatist group, the PKK. She was then a member of the center-right DYP Party, which traditionally secured significant Kurdish votes despite the conflict, a legacy observers say she will seek to resurrect.

On Kurdish rights, as on most key policy issues, Aksener has not yet revealed her hand.

“She is going to get reaction votes, but whether she really can put together an agenda that will appeal to all those unsatisfied voters is an unanswered question,” said Yesilada.