US Envoy: Russia’s Proposal to Send Peacekeepers to Ukraine Shows Desire to Negotiate

Russia’s proposal for United Nations peacekeepers to be sent to Ukraine shows that the Kremlin is interested in negotiating a resolution to the three-year-old conflict, said the United States special envoy for Ukraine Kurt Volker.

“I take the point of view that Russia would not have proposed anything if they weren’t prepared to get into a negotiation about it,” said Volker in an interview Monday with VOA’s Ukrainian Service chief Myroslava Gongadze.

“They haven’t done anything for three years on this. They haven’t proposed a peacekeeping force before. As recently as a couple weeks ago, they were saying that they would never want the U.N. there. So, the fact that they opened this conversation, to me, is an indication that they are willing to discuss it.”

The Ukraine crisis began in March 2014 when Russian special forces took over Ukrainian military bases in Crimea. Subsequent Russian military support for Russia-leaning separatists in eastern Ukraine fueled an ongoing conflict with the Ukrainian military that has so far left more than 10,000 people dead.

Russia’s proposal earlier this month at the U.N. called for peacekeepers along the line of conflict in eastern Ukraine, but not along the Russia-Ukraine border where weapons and fighters can easily cross.

Volker called it a “very narrow concept” that would have the effect of dividing the country even further.

 

“That’s not acceptable to anybody and does not restore the territory,” he said. “On the other hand, if we can establish a peacekeeping force and build that concept into one that is covering the entire contested area, that is containing heavy weapons and that is controlling the Ukraine-Russian border from the Ukrainian side, then there is a lot of promise in that.”

“That’s where both governments are right now seeing whether it is possible to expand this concept into one that would be truly meaningful and helpful,” he added.

Russia’s growing costs

Russia’s costs for maintaining the conflict in Ukraine have only gone up while benefits the Kremlin may have expected have not panned out, said Volker. Russia has lost influence in Ukraine while Western support for Kyiv has increased along with sanctions against Moscow.

“So, for all of these reasons, the costs are increasing. Even the financial costs of just maintaining the Donbas, and they’re not getting anything out of it. So, that at least opens the door to thinking maybe Russia would like to try something else,” Volker said.

 

“Ultimately, I think it really boils down to Russia’s decision-making,” he added. “Do they want to resolve the crisis in Ukraine, get their forces out, and re-establish Ukraine’s territorial integrity or, do they not want to do that? If they want to dig in and create another Abkhazia [breakaway region of Georgia supported by Russia], they can do it. But, that’s a very costly proposition for Russia.”

A 2015 peace deal Russia signed with Ukraine, Germany, and France in Minsk has failed to come to fruition as Kyiv and Moscow blame each other for not moving on the plan.

 

“The problem with the Minsk agreement is that it was becoming a circular argument that was going nowhere,” said Volker. “The Russians are saying ‘no, Ukraine has to do the political steps.’ Ukraine says, ‘it can’t do the political steps because it can’t even access the territory.’ And, then how can we go to the Rada [Ukrainian parliament] and get a vote when nothing has happened on a ceasefire in three years. So, it’s stuck that way and I think, in some respects, some of the actors found that to be conveniently stuck.”

Volker said the U.S. role was to try to unstick the Minsk deal.

“If we can get to a more strategic level of decision-making with Russia and, frankly, with our European partners and with Ukraine, then if we can create political will, Minsk is a perfectly fine vehicle for implementation,” he said.

In August, the U.S. envoy met with Kremlin aide Vladislav Surkov in Minsk.  Surkov is considered the architect of Russia’s strategy on Ukraine and its military backing for separatists in eastern Ukraine’s Donbas region.

Status quo:  Bad for all

“When we met in August, one of the things we agreed is that the status quo is not good for anybody,” said Volker. “It’s not good for Russia, it’s not good for Ukraine, it’s not good for the people of the Donbas. So we should be exploring to see if there is something else that would be better.”

More than 10,000 people have been killed in eastern Ukraine since fighting between government forces and Russia-backed separatists broke out in early 2014.

Volker said the U.S. is still considering supplying lethal, defensive weapons to Ukraine’s military forces.

 

“I don’t have anything new to say on timing of this sort of thing [possibly selling lethal, defensive weapons to Ukraine],” he said. “But, I can say that it’s taken very seriously in the administration and there are people working very hard at it.”

Volker said the U.S. would seek progress in eastern Ukraine separate from the issue of Crimea, the Black Sea peninsula that Russia annexed from Ukraine in March 2014.

“If we are able to make progress in one area  the Donbas  let’s do it. Let’s make progress, let’s see if we can get that territory back,” he said. “At the same that doesn’t change at all our refusal to accept the annexation of Crimea and grant any legitimacy to Russia’s actions.”

Budapest memorandum

The U.S. envoy acknowledged more should have been done to back up the 1994 Budapest Memorandum, which was signed when he was a mid-level diplomat at the U.S. Embassy in Budapest and should have prevented Russia taking Crimea.

 

“The only country violating the Budapest Memorandum is Russia. So, France didn’t invade Ukraine. U.K. didn’t invade Ukraine. Only Russia invaded Ukraine,” Volker said.

Ukraine agreed to give up its Soviet-era nuclear weapons in return for guarantees of territorial integrity and sovereignty under the deal signed by Russia, the U.K., and U.S. But, when Russian forces began taking over Ukraine’s Crimea military bases, none of those who signed the memorandum attempted to stop them.

 

“We should have done more immediately,” said Volker. “It’s important for Ukraine itself. It’s important for the principle that it establishes about non-proliferation of nuclear weapons. And, so, unfortunately, when Russia invaded, we didn’t do enough on that.”

The U.S. envoy said all that can been done now is go forward to help restore Ukraine’s territorial integrity. “If we do that, we’ll be taking a step towards the fulfillment of Budapest,” he said.

Peacekeeping Forces

Volker, who President Donald Trump made special envoy in July, shot down suggestions that Russians could be among any peacekeepers deployed to Ukraine.

 

“I think the U.N. standards themselves are that neighboring countries should not be involved in peacekeeping in neighboring states,” he said. “And, certainly in this case since Russia has been a party to the conflict it would clearly not make sense.”

Despite much evidence to the contrary, the Kremlin maintains it is not involved in the military conflict in eastern Ukraine, known as the Donbas.

VOA’s Myroslava Gongadze contributed to this report.

India Unveils $2.5B Plan to Electrify All Households by End of 2018

India’s Prime Minister Narendra Modi on Monday launched a $2.5 billion project to electrify all of the country’s households by the end of 2018.

More than 40 million households – about a quarter of all in the country – are yet to be electrified and about 300 million of India’s 1.3 billion people are still not hooked up to the grid.

The states will need to complete the electrification by December 2018 and the government will identify those eligible for free electricity connections across the country.

“No fee will be charged for electricity connection in households of poor citizens,” Modi said at an event where he launched the project.

The project, which will be mostly funded by the federal government and run by the state-run Rural Electrification Corp. Ltd., also aims to cut use of kerosene, the government said.

The pledge to provide power could face challenges as it remains difficult to provide electricity in remote towns and villages. The government said it would distribute solar power packs with a battery bank to un-electrified households in such areas.

Another challenge will be to fix finances of debt-laden power distribution companies in states that struggle to buy and supply electricity to consumers.

Ashok Khurana, director general of industry body Association of Power Producers, said the government must take steps to improve the financial health of such companies if the new program is to be a success.

Turkey’s Erdogan Threatens to Cut Off Oil From Iraq’s Kurdish Area Over Referendum

President Tayyip Erdogan warned on Monday that Turkey could cut off the pipeline that carries oil from northern Iraq to the outside world, intensifying pressure on the Kurdish autonomous region over its independence referendum.

Erdogan spoke shortly after Prime Minister Binali Yildirim said Ankara could take punitive measures involving borders and air space against the Kurdistan Regional Government (KRG) over the referendum and would not recognize the outcome.

Voting began on Monday despite strong opposition from Iraq’s central government and neighboring Turkey and Iran – both with significant Kurdish populations – as well as Western warnings the move could aggravate Middle East instability.

Erdogan, grappling with a long-standing Kurdish insurgency in Turkey’s southeast, which borders on northern Iraq, said the “separatist” referendum was unacceptable and economic, trade and security counter-measures would be taken.

He stopped short of saying Turkey had decided to close off the oil flow. Hundreds of thousands of barrels of oil a day come through the pipeline in Turkey from northern Iraq, but he made clear the option was on the table.

“After this, let’s see through which channels the northern Iraqi regional government will send its oil, or where it will sell it,” he said in a speech. “We have the tap. The moment we close the tap, then it’s done.”

Yildirim said Ankara would decide on punitive measures against the KRG after talks with Iraq’s central government.

“Our energy, interior and customs ministries are working on [measures]. We are evaluating steps regarding border gates and air space. We will take these steps quickly,” Yildirim told Turkish broadcasters.

Iraqi soldiers arrived in Turkey on Monday night to join a drill on the Turkish side of the border near the Habur area in the southeast, Turkey’s military said in a statement. Iraq’s defense ministry said the two armies started “major maneuvers” at the border area.

Habur Gate

Local media said Turkey had blocked access to the KRG via the Habur border crossing with Iraq. Ankara’s customs minister denied this, saying Habur remained open but with tight controls on traffic, according to the state-run Anadolu agency.

However, Erdogan later said traffic was only being allowed to cross from the Turkish side of the border into Iraq. Maruf Ari, a 50-year-old truck driver, was one of those who had crossed back into Turkey early on Monday morning. He said a closure of the gate would ruin his livelihood.

“If the border is closed it will harm all of us. I’m doing this job for 20 years. I’m not making a lot of money. Around 1,000 lira ($285) a month. But if the gate is closed, we will go hungry.”

The United States and other Western powers also urged authorities in the KRG to cancel the vote, saying it would distract from the fight against Islamic State.

“We will continue to take determined steps and the Kurdistan Regional Government must take a step back. It is an absolute must,” Erdogan said.

Shares of Turkish Airlines, which has direct flights to northern Iraq, tumbled 6.5 percent, underperforming a 1.78 percent decline in the BIST 100 index. Turkey’s currency, the lira, also weakened.

Turkey took the Kurdish television channel Rudaw off its satellite service TurkSat, a Turkish broadcasting official told Reuters.  

Turkey has long been northern Iraq’s main link to the outside world, but sees the referendum as a grave matter for its own national security. Turkey has the region’s largest Kurdish population and has been fighting a three-decade insurgency in its mainly Kurdish southeast.

Parliament vote

On Saturday, Turkey’s parliament voted to extend by a year a mandate authorising the deployment of troops in Iraq and Syria.

Still, Turkey is unlikely to make rash moves when it comes to sanctions against the KRG, said Nihat Ali Ozcan, a professor of political science and international relations at TOBB University of Economics and Technology.

“Closing the border gate, cancelling international flights and, at the final step, cutting the pipeline can be discussed,” he said. “Military pressure can be used directly or indirectly.”

The Turkish army launched military exercises involving tanks and armored vehicles near the Habur border crossing a week ago and they are expected to continue until at least Sept. 26. Additional units joined the exercises as they entered their second stage.

Turkey’s military said in its statement that the third phase of the drill would be held on Sept. 26, and that Iraqi soldiers who arrived on Monday night would join.

The military has also in recent days carried out daily airstrikes against Kurdistan Workers Party (PKK) targets in northern Iraq, where the group’s commanders are based.

The PKK launched its separatist insurgency in 1984, and more than 40,000 people have been killed since. It is designated a terrorist group by Turkey, the United States and European Union.

In a travel warning, Turkey strongly recommended its citizens in the Iraqi Kurdish provinces of Dohuk, Erbil and Sulaimaniya leave as soon as possible if they are not obliged to stay.

Brazil to Reinstate Protection for Amazon Reserve

Brazil will reinstate a mining ban in a vast area of the Amazon rainforest, the government announced on Monday, in an about-face that is a victory for environmentalists who feared deforestation.

The Mines and Energy Ministry said in a statement that President Michel Temer’s administration had decided to revoke an August decree abolishing the National Reserve of Copper and Associates (Renca), an area of roughly 17,800 square miles (46,100 square kilometers) or slightly larger than Denmark.

The decision will be published in the Official Gazette on Tuesday, officials said.

The reserve in the northern states of Amapá and Pará was established in 1984 to protect what are thought to be significant deposits of gold, copper, iron ore and other minerals from the perceived threat of foreign miners at the time.

The reserve covers a section of the Amazon, the world’s largest rainforest, the preservation of which is seen as essential to soaking up carbon emissions responsible for global warming.

The government said it would revisit the issue in the future in a wider debate on the issue. “Brazil needs to grow and create jobs, attract mining investment and even tap the economic potential of the region,” the ministry statement said.

The government had argued that lifting the ban would be a boon to the economy and would allow better oversight of the area estimated to have 1,000 people illegally mining there.

Mining and Energy Minister Fernando Coelho Filho and other officials have maintained that the reserve merely applied to mining and that other protections for conservation areas and indigenous land inside Renca would remain.

But environmentalists argued that merely building roads or infrastructure in the area would bring deforestation and threaten biodiversity, with Brazilian supermodel Gisele Bundchen tweeting against the decree.

“If carried out, the cancellation of the decree shows that, no matter how bad, there is no leader absolutely immune to public pressures,” Marcio Astrini, coordinator of public policy for environmental group Greenpeace, said in a statement.

“It is a victory of society over those who want to destroy and sell our forest.”

The government had steadily backtracked in the face of the criticism, legal action and efforts to overturn the decree in Congress. A judge also granted an injunction blocking the decree.

Turkish Court Frees 1 Journalist from Prison, Orders 4 Held

Turkey’s state-run news agency says a court in Istanbul has ordered a columnist for Turkey’s main opposition newspaper released from prison pending the conclusion of his trial.

Anadolu Agency reported that the court released Cumhuriyet columnist Kadri Gursel from pre-trial detention on Monday.

 

Anadolu says the court ruled that four other newspaper employees, including editor-in-chief Murat Sabuncu and investigative journalist Ahmet Sik, would remain in custody.

 

The trial was adjourned until Oct. 31.

Prosecutors have charged 19 Cumhuriyet employees with “sponsoring terror organizations” that include Kurdish militants and the network of the U.S.-based cleric the government blames for a coup attempt last year.   

 

Kemal Aydogdu, who did not work for Cumhuriyet and is suspected of using a Twitter handle critical of the government, also was ordered to stay in detention.

 

German Far-right Pledges to ‘Reclaim Country’ as Merkel Begins Tough Coalition Talks

The Alternative for Germany party has pledged to use its platform in parliament to “reclaim the country and its people.” The AfD won nearly 14 percent of the vote in Sunday’s election, giving them 94 seats.

Many believed the turmoil of the 20th century had immunized Germany from a return of far-right politics, but Sunday’s result proved them wrong.

For the group’s opponents who gathered to protest the result in Berlin, the Alternative for Germany’s anti-migrant agenda has parallels with the Nazis’ rise to power.

“It is the first time since after the war that a racist and neo-Nazi party is in parliament,” said one protester. “So that is really worrying to us. And this reminds everyone of 1933.”

Jewish groups were among those expressing fear over the results.

The AfD’s co-leader, Alexander Gauland, has previously said Germans should be proud of their military’s achievements in World War II. However, at a news conference Monday, he denied the party is racist.

Gauland said there is nothing in the party or in its program that could or should disturb Jewish people in Germany. He said his pledge to “reclaim the country” is meant symbolically, adding he does “not want to lose Germany to an invasion of foreign people from foreign cultures.”

Analyst Professor Tanja Borzel of Berlin’s Free University says Chancellor Angela Merkel’s decision to let close to a million migrants into Germany at the height of the migrant and refugee crisis in 2015 led many to punish her at the polls.

Merkel’s Christian Democrats won the highest number of votes Sunday, but gained their lowest share in 70 years.

“Most people who voted for the Alternative for Germany did not vote for the party because they share the platform. It was a protest vote, clearly,” Borzel said.

The far-right’s success overshadowed Merkel’s win, which gives her a fourth term in power.

She told supporters Monday that her aspiration is to win the AfD voters back through good politics and problem solving.

Her first problem is forming a government. The second-placed Social Democrats have ruled out working together, so Merkel’s best option is likely a coalition with the Liberals and the Greens that could take months, Borzel says.

“It will be very hard to find a compromise on issues such as migration and refugees, but also climate change,” Borzel said. “So, we are looking at probably some lengthy negotiations.”

The AfD, meanwhile, has pledged to use its new platform in parliament to, in its words, “hunt down” Merkel and reclaim the country.

Germany Shaken by Far-right Political Earthquake

In the photograph, the distraught blonde-haired woman is surrounded by lascivious Middle Eastern-looking men. The caption refers to “New Year’s Eve,” a reference to the mass sexual assaults reported mainly in Cologne on December 31, 2015, involving men of Arab or North African appearance.

Posted on social media sites earlier this month, the photograph included the symbol of the far-right populist party, Alternative for Germany, which on Sunday eclipsed Angela Merkel’s re-election as German chancellor by winning nearly 100 seats in the Bundestag, becoming Germany’s third largest parliamentary party.  

The photograph — it has emerged — was a falsification: the woman pictured was a British glamor model, her image lifted from a glossy magazine, and the men, Egyptians protesting in Cairo in 2011.

In the three-month election campaign that ended Sunday mainstream politicians, some from minority backgrounds, lamented the rabble-rousing tactics of the AfD and its grassroots agitators and fellow-travelers and their menacing social media propaganda playing on fears of Islam and Muslim criminality and on foreigners in general.

From fringe to center of power

Winning seats in the Bundestag marks a startling new phase in the party’s progress from the fringe of German politics to closer to the center of power in Berlin. For far-right counterparts elsewhere in Europe the AfD’s electoral breakthrough serves as a consolation prize for election setbacks this year of like-minded populists elsewhere — Marine Le Pen in France and Geert Wilders in the Netherlands.

For mainstream German politicians, and Germany minorities, the rise of the AfD, which has called for the sealing of borders and a slimmed down appeals process for asylum-seekers making deportations easier, is a door opening on a German past they thought long buried.

“This is the most aggressive election campaign that Germany has seen since 1945,” lamented Senegal-born Karamba Diaby, who was first elected to the Bundestag in 2013 to become the country’s first black African lawmaker. Last month, he filed a legal complaint against members of the openly neo-Nazi National Democratic Party, whose supporters have been backing the AfD, for calling him an “ape” on a Facebook page.

For Diaby and other lawmakers from Germany’s major parties, the arrival of the AfD raises perplexing questions about how they should treat the first open nationalists to sit in the German legislature since the 1933 razing of the Reichstag by Adolf Hitler.

But treating AfD lawmakers any differently from other elected representatives could play into the hands of the far-right populists, allowing them to portray themselves as political victims and to claim that a political oligarchy is intent on ignoring the 12.6 percent of the population that voted for them.

Commentator Kay-Alexander Scholz argues that ostracizing the AfD in parliament would likely backfire. He maintains all the established parties “should be asking themselves what they did wrong over the last several years to set the stage” for the AfD.

Luring back AfD voters

Merkel went out of her way on Sunday night following the election results to reach out to AfD voters – especially those who defected from her Christian Democrats. “We want to win back AfD voters by solving problems, by taking account of their concerns and fears,” she said.

One of her advisers, Michael Fuchs, told VOA that “it isn’t good enough just to view the party as Nazi.” He argued that “some members are just conservatives” and he held out the prospect that under the pressure of day-to-day legislative work the AfD could split between its more moderate wing and the radicals.

But AfD moderates are hardly normal conservatives, either. Earlier this month the newspaper Welt am Sonntag published a 2013 memo written by one of the AfD’s stars, Alice Weidel, a leading moderate and lesbian, condemning the Merkel government as “pigs [who] are nothing other than marionettes of the victorious powers of World War II, whose task it is to keep down the German people.”  

This month it emerged that another of the party’s co-leaders, Alexander Gauland, another moderate, believes Germans “have the right to be proud of the achievements of German soldiers in two world wars.”

Chancellor Angela Merkel’s decision to admit more than a million refugees, breathed new life into the party, which lurched rightwards. Since 2015 the party has secured seats in all but three of Germany’s 16 regional parliaments.

The party appears in no mood to shift its confrontational tactics, a rejection of Germany’s post-war collaborative political ethos. Gauland signaled that in his post-poll comments to cheering supporters in Berlin: “We will change this country. We will chase them down, Angela Merkel and whoever else, and we will take our country back,” he said.

French Unions Block Fuel Depots in Protest Against Labor Reforms

French trade unionists blocked access on Monday to several fuel depots in protest against an overhaul of employment laws, seeking to test the government’s will to reform the economy.

In southern France, protesters’ unions set up a road-block in front of Total’s La Mede refinery, while in western France fuel depots were blocked near Bordeaux and the coastal city of La Rochelle. Union members also held go-slow operations on highways near Paris and in northern France.

“We’re determined. We’re going to stay as long as possible while hoping that other blockades take place elsewhere, maybe that’ll make Mr. Macron move,” Force Ouvriere union official Pascal Favre told Reuters.

Eager to avoid fuel shortages, centrist President Emmanuel Macron’s government deployed police at some sites before dawn to ensure by force that protesters could not block access.

“It’s not in blockading the country’s economy and by preventing people from working, that one best defends one’s cause,” junior economy minister Benjamin Griveaux told RTL radio.

The labor reform is due to become law in the coming days after Macron formally signed five labor form decrees on Friday, in the first major economic reforms since he took power in May.

The new rules, discussed at length in advance with unions, will cap payouts on dismissals that are judged unfair, while also giving companies greater freedom to hire and fire employees and to agree working conditions.

While unions have failed to derail the reform, the considerable political capital Macron had after his landslide election victory in May is quickly evaporating.

Macron suffered his first electoral setback on Sunday when his Republic on the Move (LREM) party won fewer seats than expected in elections for the French Senate.

Iraqi Government Asks Foreign Countries to Stop Oil Trade With Kurdistan

Iraq on Sunday urged foreign countries to stop importing crude directly from its autonomous Kurdistan region and to restrict oil trading to the central government.

The call, published in statement from Prime Minister Haider al-Abadi’s office, came in retaliation for the Kurdistan Regional Government’s plan to hold a referendum on independence on Monday.

The central government’s statement seems to be directed primarily at Turkey, the transit country for all the crude produced in Kurdistan. The crude is taken by pipeline to the Turkish Mediterranean coast for export.

Baghdad “asks the neighboring countries and the countries of the world to deal exclusively with the federal government of Iraq in regards to entry posts and oil,” the statement said.

The Iraqi government has always opposed independent sales of crude by the KRG, and tried on many occasions to block Kurdish oil shipments.

Long-standing disputes over land and oil resources are among the main reasons cited by the KRG to ask for independence.

Iraqi Kurdistan produces around 650,000 barrels per day of crude from its fields, including around 150,000 from the disputed areas of Kirkuk.

The region’s production volumes represent 15 percent of total Iraqi output and around 0.7 percent of global oil production. The KRG aspires to raise production to over 1 million barrels per day by the end of this decade.

Kurdish oil production has been dominated by mid-sized oil companies such as Genel, DNO, Gulf Keystone and Dana Gas. Major oil companies such as Chevron, Exxon Mobil and Rosneft also have projects in Kurdistan but they are mostly at an exploration stage.

However, Rosneft, Russia’s state oil major, has lent over $1 billion to the KRG guaranteed by oil sales and committed a total of $4 billion to various projects in Kurdistan.

Swiss Voters Reject Raising Women’s Retirement Age

Swiss voters rejected raising women’s retirement age to 65 in a referendum on Sunday on shoring up the wealthy nation’s pension system as a wave of Baby Boomers stops working.

Authorities pushing the first serious reform of the pension system in two decades had warned that old-age benefits were increasingly at risk as life expectancy rises and interest rates remain exceptionally low, cutting investment yields.

But it fell by a margin of 53-47 percent, sending the government back to the drawing board on the thorny social issue.

The package turned down under the Swiss system of direct democracy included making retirement between the ages of 62 and 70 more flexible and raising the standard value-added tax (VAT) rate from 2021 to help finance the stretched pension system.

It sought to secure the level of pensions through 2030 by cutting costs and raising additional revenue.

Minimum pay-out rates would have gradually fallen and workers’ contributions would rise, while public pensions for all new recipients would go up by 70 Swiss francs ($72.25) a month.

The retirement age for women would have gradually risen by a year to 65, the same as for men.

“That is no life,” complained one 49-year-old kiosk cashier, who identified herself only as Angie. “You go straight from work to the graveyard.”

Some critics had complained that the higher retirement age for women and higher VAT rates were unfair, while others opposed expanding public benefits and said the reforms only postponed for a decade rather than solved the system’s financial woes.

Opinion polls had shown the reforms just squeaking by, but support had been waning.

The standard VAT rate would have gone up by 0.3 point from 2021 to 8.3 percent — helping generate 2.1 billion francs a year for pensions by 2030 — but the rejection means the standard VAT rate will now fall to 7.7 percent next year as a levy earmarked for disability insurance ends.

A 2014 OECD survey found Switzerland, where a worker earns over $91,000 on average, spends a relatively low 6.6 percent of economic output on public pensions. Life expectancy at birth was 82.5 years. More than 18 percent of the population was older than 65.

($1 = 0.9690 Swiss francs)

Vatican Denounces Ousted Auditor Who Says He Was Forced out

The Vatican on Sunday denounced its ousted auditor general for revealing that he resigned under threat of arrest for what he says were trumped-up charges.

In a statement, the Vatican admitted that Libero Milone resigned in June after Vatican investigators determined his office had “illegally hired an outside company to conduct investigations into the private lives of Holy See personnel.”

Milone told reporters Saturday that he was told on June 19 that Pope Francis had lost confidence in him. He said he was subsequently subject to an “aggressive” interrogation by Vatican police who seized material from his office and told him to resign or face arrest.

“They wanted me to confess to something. I don’t know what, because I acted within the confines of the statute,” he told Sky TG24 and other media.

The Vatican said Milone had exceeded his mandate, freely tendered his resignation and was treated with full respect by investigators. It said it was “surprised and saddened” that Milone had violated the terms of his departure, which had called for secrecy about the reasons behind it.

Milone’s resignation had raised eyebrows because he was only two years into a five-year term, and had been seen as a key part of Francis’ efforts to reform the Vatican’s finances. Along with Cardinal George Pell, he was tasked with overseeing the Holy See’s budgets and making sense of the finances of the Vatican’s various departments.

Pell recently returned to his native Australia to face trial on historic sex abuse allegations, which he denies. His secretariat for the economy, which includes Milone’s office, is being run by underlings for now.

Catalonia’s Separatists Defy Spain With Ballots for Vote

The grassroots groups driving Catalonia’s separatist movement defied Spanish authorities on Sunday by distributing one million ballots for an Oct. 1 independence vote that the central government in Madrid has called illegal and vowed to halt.

Jordi Cuixart, president of the separatist group Omnium Cultural, announced the ballots were being distributed during a rally in Barcelona.

 

“Here are the packs of ballots that we ask you to hand out across Catalonia,” Cuixart said.

 

Spanish police have confiscated millions of ballots in recent days as part of a crackdown to stop the Oct. 1 vote, which has been suspended by Spain’s Constitutional Court. Around a dozen regional Catalan officials were arrested Wednesday, provoking a wave of protests across the prosperous northeastern region.

 

Catalonia’s separatists have pledged to hold the vote regardless of the central government’s wishes and rallied Sunday in public squares in Barcelona and other towns in the region. Many carried pro-independence flags and signs calling for the independence vote and urging the “Yes” side to victory.

 

The crowds were asked by secessionist politicians and grassroots groups to also print and distribute posters supporting the vote.

 

“I ask you to go out and vote! Vote for the future of Catalonia!” Carme Forcadell, the speaker of Catalonia’s regional parliament, told a Barcelona crowd.

 

Polls show the 7.5 million residents of Catalonia are roughly split on breaking with the rest of Spain.

 

 

In Photos: Germany Election

Germany’s national election Sunday is widely expected to give Chancellor Angela Merkel a historic fourth mandate and the far-right Alternative for Germany (AfD) party seats in parliament for the first time in 60 years.

Uber Signals It’s Willing to Make Concessions to London

U.S. ride-hailing firm Uber is prepared to make concessions as it seeks to reverse a decision by London authorities not to renew its license in the city, which represents a potentially big blow for the fast-growing company, a newspaper reported.

The Sunday Times also quoted sources close to London’s transport body as saying the move was encouraging and suggested the possibility of talks.

“While we haven’t been asked to make any changes, we’d like to know what we can do,” Tom Elvidge, Uber’s general manager in London, told the newspaper. “But that requires a dialogue we sadly haven’t been able to have recently.”

A spokesman for Transport for London (TfL) declined to comment.

The Sunday Times said Uber’s concessions were likely to involve passenger safety and benefits for its drivers, possible limits on working hours to improve road safety and holiday pay.

TfL stunned the powerful U.S. start-up Friday when it deemed Uber unfit to run a taxi service for safety reasons and stripped it of its license from Sept. 30, although the company can continue to operate while it appeals.

The regulator cited failures to report serious criminal offenses, conduct sufficient background checks on drivers and other safety issues.

Uber responded by urging users in London to sign a petition that said the city authorities had “caved in to a small number of people who want to restrict consumer choice.” The move echoed Uber’s strategy in disputes with other cities.

By 2200 GMT Saturday, more than 600,000 people had signed although it was not clear how many of them were in London.

A spokesman for Uber said around 20,000 Uber drivers had emailed the city’s mayor directly to object to the decision.

Trump Travel Ban Among Factors Affecting US Tourism Industry

According the U.S. Travel Association, there are fewer people visiting the United States, even though international tourism as a whole is on the rise. Some tourism agencies blame Trump administration policies on immigrants as the reason people are not making the USA a travel destination. VOA’s Kevin Enochs reports.

Amid Increased International Sanctions, North Korea Turns to Bitcoin for Cash

North Korea’s cash-strapped regime has long sought workarounds to the increasingly harsh international sanctions aimed at tightening the financial noose around its nuclear and missile programs.

 

Now, according to Recorded Future, an intelligence research firm backed by Google Venture, Pyongyang is making a foray into cyberspace, launching a bitcoin “mining” operation, which saw a dramatic spike in its activity in mid-May.

Although the bitcoin activity amounts to only a token amount of funds at this point, there is significant potential for it to become a major source of income for the regime, the company said.

Is North Korea’s pursuit of bitcoin, the best-known cryptocurrency used for purchasing goods and services online, something the United States as well as the international community should worry about?

WATCH: What is bitcoin?

VOA Korean spoke with Priscilla Moriuchi, a Recorded Future director. Formerly with the National Security Agency (NSA) as threat intelligence manager and senior expert on East Asia and Pacific regional and cyber issues, she discussed in detail her findings on North Korea’s cyberactivities. Her answers have been edited for clarity and length.

Could you describe how Recorded Future first detected the North Korean activity in bitcoin?

Priscilla Moriuchi: The bitcoin mining [from North Korea] started on May 17 and continued through the end of our data set, which was July 3. This was a critical moment in terms of bitcoin [mining activities] because before then, I haven’t seen any activity that we had insight into indicating that [the North Koreans] were interested in bitcoin.

Is there any substantive evidence for the North Korean bitcoin mining operation?

Moriuchi: [Mining] bitcoin is very computationally intensive. It requires a lot of energy and high capacity computers. It also requires a lot of internet bandwidth because it constantly communicates with other bitcoin nodes (a peer-to-peer network consisting of computers, which allows for transactions to be broadcast to other users worldwide) to validate the blockchain (the digital ledger technology that records all virtual money transactions) that they are putting together. So mining activity is pretty distinct in terms of volume, and the [internet] ports and protocols (IP address) that are used are also pretty distinct. It can give you a decent signature.

Who is running the North Korean bitcoin mining operations, and why do you think the country has finally begun mining bitcoin?

Moriuchi: The first [hypothesis] is that it could have been an activity conducted by the state, whether it be the military or the intelligence services, for the purposes of raising funds for the regime. The second hypothesis is that it was an individual user … but because of the bandwidth and energy that were required, it would have to be known or permitted by the state and the leadership.

Over the past few years, we’ve seen increasingly tough sanctions levied upon North Korea by the United States, other international partners and by the United Nations. Those sanctions have increasingly cut off North Korea’s access to the traditional financial system and [its] ability to generate funds for state operations. We believe that bitcoin and cryptocurrency mining or activity involving cryptocurrency is a way for North Korea to generate funds and get around some of the sanctions.

Do you think North Korea has come to a conclusion that using cryptocurrency to generate funds for the regime is safer than other illicit ways — for instance, smuggling drugs or counterfeiting money?

Moriuchi: [Mining bitcoin or any other cryptocurrency] is not illegal. There’s nothing about [using cryptocurrency] that puts North Korea in a worse spot in terms of sanctions or legal violations. So that’s one. Two, you can buy many things. You can exchange cryptocurrency for actual currency, but you can also buy physical goods with cryptocurrency. So it’s another way for them to purchase things they might need without using the financial system.

There were reports that North Korea might have launched cyberattacks against South Korean virtual currency exchanges. Do the North Koreans have such a capacity?

Moriuchi: Yes, definitely. When it comes to North Korean hacking activities, we broadly underestimate their capabilities because many people believe [it is] such an isolated country where most people don’t have access to the internet and ask how they can possibly have indigenous experts, how they can possibly train people well enough to be able to conduct some of these very sophisticated hacks.

But what we have come to know over time is that they are sophisticated actors. They do have in-depth understanding of internet networks and communications.

Do you believe North Korea meddled in the Sony hack in 2014?

Moriuchi: Yes, both the federal government like the FBI (Federal Bureau of Investigation) and NSA have both come out and said that North Korea was behind the Sony attack. I think most people who follow North Korea agree with the government assessments.

It seems that reasons differ for North Korea’s cyberattacks against South Korean virtual currency exchanges and for the Sony attack. Why is that so?

Moriuchi: North Korean cyberactivities really started about 2008 and 2009. [They were] mainly toward South Korean government, corporations and media, as well as some U.S. government entities, and they were intended to [cause] chaos and to disrupt South Korea and undermine systems there. After the Sony attack, [there seemed to be a] transition in most of the North Korean attacks that we in the private sector have been able to follow toward financial services, toward generating money and raising funds. I think we are in this new period in terms of North Korean cyberactivity.

How much profit does North Korea make from mining bitcoin?

Moriuchi: At current rates, let’s say [North Korea] earned about $100,000. So in terms of the amount of money that North Korea may need for their missile program, $100,000 is probably not very much. If you put that next to what experts estimate North Korea pulls in just through its other kinds of criminal operations, such as the drug trade, drug smuggling and counterfeiting of U.S. dollar bills, around $500 million to $1 billion a year, $100,000 is a drop in the bucket.

Given the token amount of money North Korea makes through the bitcoin mining activity, is it far-fetched to say the North is tapping this digital currency exchange in order to evade sanctions and earn income for the regime?

Moriuchi: Cryptocurrency, specifically bitcoin mining, is one other method for them to circumvent sanctions and to generate funds. It’s not the primary means of earning funds for the regime right now, but it’s certainly something that they could expand and that would be much more difficult for the international community to be able to track and limit.  

Why is it so hard to track the bitcoin activity?

Moriuchi: Bitcoin was designed to be anonymous, and it doesn’t keep track of identifiers, such as IPs and usernames, while mining, buying or spending bitcoin.

Additionally in the WannaCry attack, in early August three bitcoin wallets associated with WannaCry were emptied. What we saw were many steps taken by presumably the North Koreans to further obfuscate where the funding was going. So first off, they went through a bitcoin mixer, which is a service that essentially throws all the bitcoin into one pot and then out comes the amount you threw in but it’s not the same bitcoin that you put in. So it anonymizes your identity. After going through that, they then convert it to another cryptocurrency. So they went to great lengths to avoid even the slim chance that they could be attributed through their bitcoin transactions.

What do you think about the claim that the U.S. could take out North Korea’s missiles before launch through jamming or other cyber methods?

Moriuchi: There are two internets [in North Korea]. One, the global internet, and then the domestic intranet, the one that regular North Koreans, though a small number, actually have access. And then you have various other networks within the country — the government’s and the military’s. The connections between the global internet and anything inside North Korea are very few, based on the research that I did. So [even] if it was possible for the United States or whoever to attack a North Korean missile site or a launch using a cyberattack, it would be very difficult.

 

How did you become interested in analyzing North Korean internet activities?

Moriuchi: We have this very unique set of data … and we felt like we can give much more context to the whole debate about North Korea, especially about their cyberactivity. We did a big analysis over the past few months, and we came away with a number of conclusions based on North Korean leadership internet activity. The biggest one for us was that, based on the activity that we saw, the North Korean ruling elite and their leadership are much more active and engaged in the world, popular culture, international news, and with contemporary services, than most outsiders would have believed. They go to Facebook, they go to Instagram every day, they stream video and a lot of other things that many of us do. The 0.1 percent of [the North Korean population] who has access to the world internet does those same things.

Jenny Lee contributed to this report which originated on VOA Korean.

Far-right Party Could Gain Presence in German Bundestag

Germans go to the polls Sunday in an election that will most likely result in a fourth term for Chancellor Angela Merkel, but could also see the first time a far-right party has become part of the Bundestag since the end of World War II.

Support for Merkel’s center-right Christian Democrat party was at 34 percent, while her challenger, Martin Schulz, and his center-left Social Democrats were projected to receive 21 percent of the vote.

But the far-right Alternative for Germany, or AfD, appeared to have more support than the 5 percent of the vote required to get a seat in Germany’s multiparty Bundestag. In fact, the latest polls showed AfD could get as much as 13 percent of the vote, making it the third-largest party in parliament.

Campaign stops

Schulz addressed the trend at a campaign rally in the western city of Aachen on Saturday, urging his supporters to turn out at the polls to prevent the AfD from gaining more power.

“Young people, think about Brexit,” he said, referencing Britain’s recent vote to withdraw from the European Union. “Think about [U.S. President Donald] Trump. Go vote.”

Merkel was heckled Friday evening at her final stump speech in Munich but used the cacophony to punctuate her message. Emphasizing stability and prosperity in her speech, Merkel said, “The future of Germany will definitely not be built with whistles and hollers.”

Germany is not the only European nation experiencing a rise in support for nationalist parties. France, Austria and Poland have seen similar trends.

But Germany is still recovering from the rule of the far-right Nazi Party last century, whose hold on power in the 1930s and early 1940s led an ethnic cleansing campaign against millions of Jews, Poles and others deemed unwanted.

German Foreign Minister Sigmar Gabriel, a member of the Social Democrats, has warned that “for the first time since the Second World War, real Nazis will sit in the German parliament.”

Schulz has called the party “a shame for our nation.”

Limited by history

AfD co-leader Alexander Gauland, who helped found the party in 2013, told The Washington Post on Saturday that his party’s support had been limited by Germany’s history.

“What is National Socialist in Germany is [considered] out of order and you can’t discuss it correctly. It is very difficult for so-called right-wing parties to gain votes in Germany,” Gauland said.

A former member of Merkel’s party, Gauland said he left because the party changed.

“Angela Merkel changed the CDU from a party that had convictions to a party that’s an empty balloon,” he told the Post. “A lot of decisions of Angela Merkel — transitioning to renewable energy, refugees, changing of the military from conscription to volunteer — ran opposite to what we called in former times ‘the soul of the CDU.’ ”

Berlin-based journalist Thomas Habicht said AfD’s rise in influence was rooted in Germany’s participation in pan-European issues.

“AfD gained support as some voters got the impression [that] the euro crisis caused by Greece, Italy and France cost us too much money,” Habicht told VOA in an email. “Germany contributes 27 percent to the EU budget and some Germans don’t want to finance economical mismanagement in southern Europe.”

Cost of refugee crisis

In addition, the refugee crisis, to which Merkel has pledged German support, is seen by AfD supporters as a burden.

“Since September 2015, we had an influx of 1.25 million asylum-seekers,” Habicht said, noting that caring for them had cost the government $25 billion.

Adding to the complication, he said, is crime. “Last year we had a terror attack at a Berlin Christmas market. It was committed by an asylum-seeker from Tunisia and 12 persons died,” he said.

Yet, Habicht noted, all parties in the Bundestag at the time supported Merkel on the refugee situation. “They were seen as a big chance for us, while the problems of integration were not fully discussed,” he said.

While the presence of a far-right party in parliament may be startling in Germany, where the rule of the Nazis last century orchestrated millions of civilian deaths, Habicht said the AfD influence would be far more subtle.

“I do believe the AfD will be quite isolated in our next Bundestag,” he said. “But indirectly, they will influence government policies.”

Turkish Parliament OKs Army’s Cross-border Operations in Iraq, Syria

Turkey’s main opposition united with the government Saturday to overwhelmingly pass a motion giving its military a mandate to carry out operations in neighboring Iraq and Syria.

The parliament met in an emergency session two days ahead of an independence referendum by Iraqi Kurds. Addressing parliament, Defense Minister Nurettin Canikli warned that the Kurdish referendum would bring very dangerous consequences, perhaps even clashes even in global terms.

“Pulling out just a brick from a structure based on very sensitive and fragile balances will sow the seeds for new hatred, enmity and clashes,” Canikli said.

He added that all options and methods were on the table regarding the independence vote and that Turkey would not hesitate to use them.

Ankara strongly opposes the referendum, fearing it could fuel secessionist demands within its own large restive Kurdish minority.

On Saturday, the head of the Iraqi armed forces met with his Turkish counterpart in Turkey’s capital, Ankara, for talks on the forthcoming referendum. Baghdad shares Ankara’s opposition to the vote.

Turkish armed forces carrying out drills on the Iraqi Kurdish border received new reinforcements. The army has been holding military exercises there for the past six days.

Turkish forces were also being beefed up on the Syrian border, with Ankara again warning it would not allow Syrian Kurds to create their own independent state.

In Final Push, Merkel Seeks to Reach Undecided German Voters

German Chancellor Angela Merkel urged her supporters to keep up the momentum in the final hours before Sunday’s national election, urging a last push to try to sway undecided voters.

Merkel is seeking a fourth term in office and her conservative bloc of the Christian Democratic Party and Bavarian-only Christian Social union has a healthy lead in the polls. Surveys in the last week show it leading with between 34 to 37 percent support, followed by the Social Democrats with 21 to 22 percent.

Still, the support has been gradually eroding over the past week. Merkel told supporters in Berlin on Saturday that they needed to keep up their efforts to sway undecided voters, saying “many make their decision in the final hours.”

After handing out coffee and chatting with the campaign workers in Berlin, Merkel headed north to her own riding, walking through the streets of the city of Stralsund shaking hands, posing for photos and signing autographs.

She also campaigned in the northern city of Greifswald and planned a stop as well on the island of Ruegen in the Baltic.

Her main challenger, Social Democrat Martin Schulz, was in western Germany at a rally in the city of Aachen.

At a rally Friday night in Berlin, Schulz urged Germans not to vote for the anti-migrant Alternative for Germany party, known by its German initials AfD, which appears assured of gaining seats in the national parliament for the first time. The nationalist party has 10 to 13 percent support in the polls.

Calling the AfD a “party of agitators” and “the enemies,” Schulz said his Social Democrats were the best option to fight them.

“We will defend democracy in Germany,” he said.

In addition to the AfD, the Greens, the Free Democratic Party and the Left Party were all poised to enter parliament with poll numbers between 8 and 11 percent.

With the numbers so close, several different coalition government combinations could be possible. Merkel on Friday night told supporters in Munich not to be complacent with her bloc’s lead.

“We don’t have a single vote to give away,” she said. “We can’t use any experiments – we need stability and security.”

World Leaders Take Stock of Counterterror Fight

While Iran and North Korea’s nuclear programs dominated headlines, countering terrorism and extremism took center stage at the U.N. General Assembly this week. Friday, U.S. Secretary of State Rex Tillerson and top officials from 24 countries highlighted progress made in the fight to defeat the Islamic State militant group in Iraq. VOA Diplomatic Correspondent Cindy Saine has more from Washington.

US Looks to Keep Arms Control Treaty With Russia

The United States sees value in the New START arms control treaty with Russia, despite Washington’s concerns about Moscow’s track record on arms control and other issues, senior U.S. officials said Friday.

The remarks by the Trump administration officials, speaking to reporters on condition of anonymity, suggest the treaty will remain in force and the door remains open to pursuing an extension of the accord, which is set to expire in 2021.

The New Strategic Arms Reduction Treaty gives both countries until February 2018 to reduce their deployed strategic nuclear warheads to no more than 1,550, the lowest level in decades. It also limits deployed land- and submarine-based missiles and nuclear-capable bombers.

Moscow seen as unreliable

Reuters has reported that President Donald Trump, in his first call with Russian President Vladimir Putin, criticized the New START treaty, saying it favored Moscow.

But one of the Trump administration officials said on Friday the United States was not looking to discard New START.

Senior U.S. officials, including U.S. Defense Secretary Jim Mattis, have questioned Russia’s reliability on arms control, citing longstanding U.S. allegations that Russia has violated the Cold War-era Intermediate-range Nuclear Forces (INF) Treaty. Russia denies treaty violations and accuses the United States of them.

Working to improve relations

The accusations come amid a nosedive in U.S.-Russian relations.

U.S. intelligence agencies accuse Russia of meddling in the U.S. presidential election, which Moscow denies, and recent tit-for-tat exchanges between Washington and Moscow include moves to slash each others’ diplomatic presence.

The tensions have reached Syria, where the United States and Russia are backing different forces that are scrambling to claim what is left of Islamic State-held territory.

Russia warned the United States on Thursday it would target U.S.-backed militias in Syria if Russian troops again came under fire.

Still, a second senior Trump administration official said Friday the United States was seeking ways to improve communication with Moscow and build some degree of trust, which the official described as nonexistent.

Trump took office saying he wanted to improve ties strained since Moscow’s 2014 annexation of Crimea and the separatist conflict in eastern Ukraine, which led Washington to impose sanctions on Russia.

Ukraine’s Petro Poroshenko met Trump on Thursday and said afterward that they had a shared vision of a “new level” of defense cooperation.

But the second senior Trump administration official said there had been no decision on whether to provide defensive arms to Ukraine, something Kiev has long wanted.

Merkel Rides Out Migrant Crisis, Remains Favorite Ahead of German Election

Germans go to the polls Sunday in national elections that will decide whether Angela Merkel remains chancellor for a fourth consecutive term. As Henry Ridgwell reports, many wrote off Merkel’s chances as Germany struggled to cope with the 2015 migrant crisis, but she has weathered the storm, and polls point to a comfortable victory.

Solar Boom or Bust? Companies Seek Tariffs on Solar Imports

Cheap solar panels imported from China and other countries have led to a boom in the U.S. solar industry, where rooftop and other installations have surged 10-fold since 2011.

But two U.S. solar manufacturers say the flood of imports has led one to bankruptcy and forced the other to lay off three-quarters of its workforce.

The International Trade Commission is set to decide Friday whether the imports, primarily from Asia, are causing “serious injury” to the companies. If so, the commission will recommend this fall whether the Trump administration should impose tariffs that could double the price of solar panels from abroad.

President Donald Trump has not cozied up to the solar industry, as he has for coal and other fossil fuels, but he is considered sympathetic to imposing tariffs on solar imports as part of his “America first” philosophy. A White House spokeswoman declined to comment Thursday.

Both sides of the dispute were making their case ahead of Friday’s meeting.

“Simply put, the U.S. industry cannot survive under current market conditions,” a lawyer for Georgia-based Suniva Inc. wrote in a petition filed with the commission. Suniva brought the case with Oregon-based SolarWorld Americas.

Opposition to tariffs

Governors of four solar-friendly states — Nevada, Colorado, Massachusetts and North Carolina — oppose the tariff, warning it could jeopardize the industry. They cited a study showing that a global tariff could cause solar installations to drop by more than 50 percent in two years, a crushing blow as states push for renewable energy that does not contribute to climate change.

“The requested tariff could inflict a devastating blow on our states’ solar industries and lead to unprecedented job loss, at steep cost to our states’ economies,” the two Republicans and two Democrats wrote in a letter Thursday to the trade commission.

A group of former U.S. military officials also urged the Trump administration to reject solar tariffs, noting that the Defense Department is the nation’s largest energy consumer and follows a federal law calling for the Pentagon to procure 25 percent of its energy from renewable sources by 2025.

Suniva called the case a matter of fairness. Even with better manufacturing methods, lower costs and “dramatically improved efficiency,” the company has “suffered substantial losses due to global imports,” Suniva said in its petition. The company declared bankruptcy this spring after laying off 190 employees and closing production sites in Georgia and Michigan.

SolarWorld Americas, meanwhile, has trimmed its workforce from 1,300 to 300, with more cuts likely.

“After nearly 30 factories have shut down in the wake of surging imports, the legacy of this pioneering American industry hangs in the balance,” said Juergen Stein, CEO and president of SolarWorld Americas.

“We believe that the promise of solar — energy sustainability and independence — can be realized only with healthy American manufacturing to supply growing U.S. demand,” Stein said in a statement to The Associated Press.

Trade group speaks out

In a twist, the main trade group for the solar industry opposes tariffs and calls the trade case “an existential threat” to the industry.

“The stakes are exceedingly high. We are talking about 88,000 people in this country who could lose their jobs if these tariffs are put in place,” said Abigail Ross Hopper, president of the Solar Energy Industries Association, which represents an array of solar companies.

A global tariff could cause a sharp price hike that could force the U.S. to lose out on solar installations capable of powering more than 9 million homes over the next five years — more than has been installed to date, Hopper said. States could lose out on billions of dollars of infrastructure investment, she added.

Suniva and SolarWorld have themselves to blame for their struggles — not pressure from overseas, Hopper said.

“Here is the real story of this case: We have two foreign-owned, poorly managed companies using U.S. trade laws to put U.S. manufacturers out of business and causing U.S. employees to lose their jobs,” she said.

Indeed, while Suniva’s U.S. operations are based in Georgia, the company’s majority owner is in China. SolarWorld Americas is a subsidiary of German solar giant SolarWorld, which declared insolvency last month.

If an injury finding is made, the trade commission would have until mid-November to recommend a remedy to the president, with a final decision on tariffs expected in January.

Britain Expected to Propose a Two-Year Transition for After Brexit

British Prime Minister Theresa May is expected to propose a two-year transition for the period after Britain’s formal departure from the European Union on March 29, 2019, the so-called Brexit.

May’s office released excerpts from a speech she will deliver Friday in Florence, Italy, emphasizing that both sides share “a profound sense of responsibility’’ to ensure that Brexit goes “smoothly and sensibly.”

On the eve of her speech, May met with Cabinet ministers for more than two hours to finalize Britain’s position.

Ministers have had tense discussions over crucial issues such as the amount Britain must pay to settle its financial commitments to the bloc and the status of EU citizens in Britain, among others.

The tensions exploded into public view last week when Foreign Secretary Boris Johnson outlined his own vision for life outside the European Union. He argued for a sharp break with the bloc, a stance that dismays moderates who fear this will wreck Britain’s relations with the world’s biggest trade bloc.

May’s speech comes before the fourth round of negotiations with the EU partners, which cannot move forward until the pending issues are resolved, although Britain wants to begin discussing future links, including trade and security cooperation.

While British media are reporting that May would offer to pay $24 billion during the transition period, the excerpts do not include a figure.

Syrian Activist, Journalist Daughter Slain in Istanbul

A Syrian opposition activist and her journalist daughter have been found slain in their apartment in Istanbul, the Istanbul police department said Friday.

The bodies of 60-year-old Orouba Barakat and her 22-year-old daughter Halla were found overnight in their apartment in Istanbul’s Uskudar neighborhood in the Asian side of the city.

Turkish media reports said Orouba Barakat was investigating alleged torture in prisons run by the Syrian government. It said she had lived in Britain, then the United Arab Emirates before coming to Istanbul.

“The hand of tyranny and injustice assassinated my sister Doctor Orouba and her daughter Halla in their apartment in Istanbul,” Orouba’s sister Shaza wrote on Facebook, adding that they were stabbed to death.

“Orouba wrote headlines in the first page and she pursued criminals and exposed them. Her name and her daughter’s name, Hala, now made first page headlines,” Shaza added.

Since the outbreak of the Syrian civil war in 2011, Turkey has become home to almost 3 million Syrian refugees, many of them opponents of the regime of President Bashar al-Assad.

Mercedes-Benz to Invest $1 Billion in US Electric Car Plant 

German carmaker Mercedes-Benz has announced plans to invest $1 billion to start making electric vehicles at its manufacturing plant in the southern U.S. state of Alabama.

The luxury automaker said it will manufacture electric SUVs under Mercedes’ EQ subbrand at the plant in Tuscaloosa, Alabama in just more than three years. The expansion is expected to create 600 jobs.

Daimler-Benz, which has more than 30 plants worldwide, said the Tuscaloosa plant will become the first in the U.S. to produce electric vehicles, and only the sixth in the world to do so.

Construction is to begin next year on the 92,900-square-meter facility. Daimler also said it will build a new global logistics center and aftersales North American hub in Bibb County, Alabama, about 8 kilometers from the Tuscaloosa plant.

Next Round of NAFTA Talks Take on Thornier Issues

The United States will present new proposals and begin to weigh into thornier issues of the North American Free Trade Agreement in the third round of negotiations starting in Ottawa Saturday, U.S. chief negotiator John Melle said Thursday.

The stepped-up negotiations come with four more rounds of talks left after Ottawa and a self-imposed year-end deadline to finish the talks before Mexico launches campaigning for its July presidential election.

“With progress made in several issue areas in the first two NAFTA negotiation rounds, USTR (United States Trade Representative) looks to move forward with additional new text proposals in round three of the negotiations,” Melle said in comments emailed to Reuters.

“At this point in the negotiations, more challenging issues will start taking center stage,” he added, without elaborating.

Third round

The first two rounds of talks between the United States, Canada and Mexico focused on consolidating language on chapters covering small- and medium-sized enterprises, competitiveness, digital trade, services and the environment.

Now, negotiators will begin to weigh into more contentious issues such as rules of origin — how much of a product’s components must originate from within North America — labor standards aimed at increasing Mexican wages and mechanisms for resolving trade and investment disputes.

In its negotiating strategy for revising NAFTA ahead of the start of the talks in July, the United States said it would emphasize reducing the U.S. trade deficit as a priority.

It also said it wanted to eliminate an arbitration system for resolving trade disputes, known as Chapter 19, that has largely prohibited the United States from pursuing anti-dumping and anti-subsidy cases against Canadian and Mexican firms.

Canada has suggested it will walk away from the talks if Chapter 19 is tossed aside.

Dispute resolution, sunset clause

Politico reported Thursday that the United States was considering dropping a binding mechanism in NAFTA for resolving government-to-government disputes in favor of an advisory system.

The proposal would be a major shift away from a decades-old push by the United States to build an international system of enforceable trade rules, Politico reported.

Canada and Mexico have dismissed a proposal by the Trump administration to add a five-year sunset provision to NAFTA.

U.S. Commerce Secretary Wilbur Ross said last week such a provision was needed because forecasts for U.S. export and job growth when NAFTA took effect in 1994 were “wildly optimistic” and failed to live up to expectations.

Mexico’s Foreign Minister Luis Videgaray told Reuters Sept. 15 that the sunset clause was unnecessary because the pact’s members can trigger a renegotiation or leave it at any time.

Since U.S. President Donald Trump has repeatedly attacked NAFTA and threatened to tear up the agreement, Mexico has pushed to secure more access to the European Union, Brazil, Israel, Singapore, Australia and New Zealand.

Polls show support for NAFTA

A Reuters poll of economists Thursday found that Mexico and Canada will survive current talks with the United States on trade relatively unscathed.

Meanwhile, a separate poll by IPSOS published Thursday showed broad-based support among Americans, Canadians and Mexicans for NAFTA.

Rohingya Crisis Dents Myanmar Hopes of Western Investment Boom

When officials from Myanmar’s commercial capital Yangon toured six European countries in June, they were hoping to drum up investment in transport, energy and education.

Instead, they were bombarded with questions about the country’s treatment of the Rohingya Muslim minority, who have long complained of persecution by the Buddhist majority in the oil-rich, ethnically divided, western state of Rakhine.

“In each of every country, that issue was always brought up,” Hlaing Maw Oo, secretary of Yangon City Development Committee, told Reuters after the 16-day trip.

The situation in Rakhine has worsened dramatically since then, with more than 400,000 Rohingya fleeing to Bangladesh to escape a military counterinsurgency offensive the United Nations has described as “ethnic cleansing.”

Western trade and investment in Myanmar is small, but there were hopes that a series of reforms this year would pry open an economy stunted by international sanctions and decades of mismanagement under military rule.

With most sanctions now lifted, an expected flood of Western money was seen as a key dividend from the transition to civilian rule under Nobel laureate Aung San Suu Kyi. Regional diplomats saw it balancing China’s growing influence over its neighbor.

But Aung San Suu Kyi has been beset by international criticism for saying little about human rights abuses against the Rohingya, and lawyers, consultants and lobbyists say the European and U.S. companies that had been circling are now wary of the reputational risks of investing in the country.

Louis Yeung, managing principal of Yangon-based investment firm Faircap Partners, said one of his business partners — a listed, U.S.-based food and beverage company — decided to hold off its plan to enter the Myanmar market for three to five years, citing factors including slower-than-expected reforms and the Rohingya crisis.

“Their conclusion is that it wasn’t the right time for them,” he said. “They want to see more traction from the government and Rakhine is not helpful.”

On hold

The pressure has been growing in recent months, even on existing investors, with rights group AFD International calling on foreign firms to stop investing in Myanmar.

A small group of investors in U.S. oil major Chevron filed an unsuccessful motion at its annual general meeting urging it to pull out of its production-sharing contract with a state-run firm to explore for oil and gas, while Norwegian telecoms firm Telenor, which runs a mobile network in Myanmar, issued a statement calling for human rights protection.

Chevron declined to comment on its investment in Myanmar, while Telenor did not respond to several requests for comment.

Bernd Lange, chair of the European Parliament Committee on International Trade, said last week his delegation postponed a visit to Myanmar indefinitely, saying the human rights situation “does not allow a fruitful discussion on a potential EU-Myanmar investment agreement.”

Khin Aung Tun, vice chairman of the Myanmar Tourism Federation, told Reuters that global firms planning to hold conferences in Myanmar were now considering other locations.

“People were just starting to see Myanmar as a ‘good news’ story,” said Dane Chamorro, head of South East Asia at Control Risks, a global risk consultancy.

“Now you can imagine a boardroom in which someone mentions Myanmar and someone else says ‘hold on, I’ve just seen something on Myanmar on TV: villages burned down, refugees, etc.'”

In an interview published in Nikkei Asia Review on Thursday, Aung San Suu Kyi acknowledged it was “natural” for foreign investors to be concerned, but repeated her view that economic development was the key to solving poor Rakhine’s long-standing problems.

“So, investments would actually help make the situation better,” she said.

In China’s orbit

Myanmar’s $70 billion economy should be a strong investment proposition for Western firms. It boasts large oil and gas reserves and natural resources such as rubies, jade and timber.

Wages are low and its youthful population of more than 50 million is eager for retail and manufacturing jobs.

In April, Myanmar passed a long-awaited investment law, simplifying procedures and granting foreign investors equal treatment to the locals. A game-changing law allowing foreigners to buy stakes in local firms is expected later this year.

“The investment conditions were improving,” said Dustin Daugherty, ASEAN lead for business intelligence at Dezan Shira & Associates, a consultancy for foreign investors in Asia.

Myanmar’s economy may not suffer much, however, if Western firms shun the country — or even if their governments were to reimpose some sanctions, although that appears unlikely for now.

Aung San Suu Kyi has sought to deepen relations with China at a time when Beijing is keen to push projects that fit with its Belt and Road initiative, which aims to stimulate trade by investment in infrastructure throughout Asia and beyond.

Myanmar trades with China as much as it does with its next four biggest partners: Singapore, Thailand, Japan and India.

None of that top five participated in previous sanctions.

Trade with the United States is only about $400 million and U.S. investment is just 0.5 percent of the total. Europe accounts for around a 10th of investment, while China and Hong Kong make up more than a third, and Singapore and Thailand another third.

Than Aung Kyaw, Deputy Director General of Myanmar’s Directorate of Investment and Company Administration, told Reuters that European investors might have “second thoughts,” but he expected Asian investors to stay put.

China is already in talks to sell electricity to energy-hungry Myanmar and pushing for preferential access to a strategic port on the Bay of Bengal. In April, the two countries reached an agreement on an oil pipeline that pumps oil across Myanmar to southwest China.

“It is going to feed Aung San Suu Kyi straight into the hands of [Chinese President] Xi Jinping,” said John Blaxland, director at the ANU Southeast Asia Institute and head of the Strategic and Defense Studies Center.

Catalan Leader Presses On With Banned Vote on Split From Spain

The Catalan regional leader on Thursday said he would press on with an Oct. 1 referendum on a split from Spain, flouting a court ban, as tens of thousands gathered for a second day on the streets of Barcelona demanding the right to vote.

Catalan leader Carles Puigdemont said he had contingency plans in place to ensure the vote would go ahead, directly defying Madrid and pushing the country closer to political crisis.

Spain’s Constitutional Court banned the vote earlier this month after Prime Minister Mariano Rajoy said it violated Spain’s 1978 constitution, which states the country is indivisible. Most opposition parties are also against the vote.

“All the power of the Spanish state is set up to prevent Catalans voting,” Puigdemont said in a televised address.

“We will do it because we have contingency plans in place to ensure it happens, but above all because it has the support of the immense majority of the population, who are sick of the arrogance and abuse of the People’s Party government.”

‘Step back for democracy’

On Thursday, tens of thousands gathered outside the seat of Catalonia’s top court in Barcelona, singing and banging drums, to protest the arrests of senior officials in police raids on regional government offices on Wednesday.

“This is a step back for democracy,” said one of them, 62-year-old pensioner Enric Farro. “This is the kind of thing that happened years ago — it shouldn’t be happening now.”

State police arrested Catalonia’s junior economy minister, Josep Maria Jove, on Wednesday in an unprecedented raid of regional government offices.

Spontaneous protest

Acting on court orders, police have also raided printers, newspaper offices and private delivery companies in a search for campaign literature, instruction manuals for manning voting stations and ballot boxes.

Polls show about 40 percent of Catalans support independence for the wealthy northeastern region and a majority want a referendum on the issue. Puigdemont has said there is no minimum turnout for the vote and he will declare independence within 48 hours of a “yes” result.

A central government’s spokesman said protests in Catalonia were organized by a small group and did not represent the general feeling of the people.

“In those demonstrations, you see the people who go, but you don’t see the people who don’t go, who are way more and are at home because they don’t like what’s happening,” Inigo Mendez de Vigo said.

Mendez de Vigo also said an offer for dialogue from Madrid remained on the table. Repeated attempts to open negotiations between the two camps over issues such as taxes and infrastructure investment have failed over the past five years.

Rajoy said on Wednesday the government’s actions in Catalonia were the result of legal rulings and were to ensure the rule of law. The prime minister called on Catalan leaders to cancel the vote.

Hundreds of National Police and Guardia Civil reinforcements have been brought into Barcelona and are being billeted in two ferries rented by the Spanish government and moored in the harbor. But the central government must tread a fine line in enforcing the law in the region without seeming heavy-handed.

Hardline tactics a concern

The stand-off between Catalonia and the central government resonates beyond Spain. The country’s EU partners publicly support Rajoy but worry that his hardline tactics might backfire.

In Scotland, Nicola Sturgeon, who heads the pro-independence devolved government, said she hoped the Catalan and Spanish governments could hold talks to resolve the situation.

In a referendum in 2014, Scots voted to remain within the United Kingdom.

 

The ATM at 50: How It’s Changed Consumer Behavior

An automated teller machine. The cash machine. In Britain, a cashpoint. ATMs, known for spitting out $20 bills (and imposing fees if you pick the wrong one), turn 50 years old this year. They’re ubiquitous – and possibly still a necessity, despite the big changes in how people pay for things.

It was a radical move when Barclays installed cash machines in a London suburb in 1967. The utilitarian machine gave fixed amounts of money, using special vouchers – the magnetic-striped ATM card hadn’t been invented yet. There was no way for a customer to transfer money between accounts, and bank employees tabulated the transactions manually at the end of each day.

As the ATMs became familiar, though, they changed not only the banking industry but made people comfortable interacting with kiosks in exchange for goods. Now that means getting movie tickets and boarding passes, self-checkout at grocery stores, and online shopping that brings products to your door with a few clicks. All are based on the idea that people can handle routine transactions by themselves without a teller or cashier.

“The ATM tapped into that innate force in people that gives gratification for doing a task on their own and it grew from there,” said Charles Kane, a professor at the MIT Sloan School of Management.

It was a radical concept at the time. The ATM wasn’t the first self-service device – vending machines and the automat had been popular before. But those dispensed items people could hold in their hand.

Bernardo Batiz-Lazo, a business professor and ATM historian (yes, they exist!) at Bangor University in Britain, said early users of automated tellers were often checking their balances twice: once to see how much was in their account, then again after withdrawing money to see if it registered.

“They were popular, but it took a long time to slowly convince customers to learn about ATMs and use them regularly,” Batiz-Lazo said.

For the banking industry, ATMs meant banks could be in thousands of places at once, not just in branches, and earn billions of dollars in fees from non-customers. Banks used to staff dozens of tellers at each branch to handle routine transactions, now many staffers work on other tasks, like sales or account maintenance.

Around the U.S. today are roughly 3 million cash machines, according to the ATM Industry Association. Most are actually not owned by banks, but by private companies that install them at convenience stores, restaurants and bars in hopes of grabbing customers who don’t want to find a bank branch.

The wide acceptance of the ATMs changed the types of cash Americans typically carry in the pocketbooks. Since ATMs became more widely available in the early 1980s, the twenty-dollar bill has regularly been the second-most printed bank note each year by the Bureau of Engraving and Printing. The first place spot is held by the $1 bill.

Even as people use cash less, and credit cards or mobile payments more often, the ATM isn’t going anywhere for a while. At least, that’s what historians and – unsurprisingly – the ATM industry says. Devon Watson, vice president at Diebold Nixdorf, the world’s largest manufacturer of ATMs, says 85 percent of all transactions worldwide are still in cash.

Newer ATMs have more functions than ever. They accept check deposits, can transfer money between accounts, show an account balance, pay a credit card or mortgage payment, or even sell you stamps. NCR, another major manufacturer of ATMs, say the latest models are also designed to act more like smart devices. Kevin King of NCR says that includes “swipe, gesture, multi-touch.”

And future ATMs will likely start selling products as well. Have a checking account? The ATM will ask you whether you want to open a brokerage account. Much like tellers did.