Brexit Minister: No Doubt Britain Leaving EU

British Brexit minister David Davis heads to Brussels Monday to open divorce talks with the EU with a message that there should be “no doubt we are leaving the European Union.”

Days after a suggestion from French President Emmanuel Macron that Britain could still choose to remain, Davis said there would be no backtracking from Prime Minister Theresa May’s plan to deliver on Brexit, for which Britons voted in a referendum almost a year ago.

“As I head to Brussels to open official talks to leave the EU, there should be no doubt we are leaving the European Union, and delivering on that historic referendum result,” Davis said in a statement.

“Leaving gives us the opportunity to forge a bright new future for the UK one where we are free to control our borders, pass our own laws and do what independent sovereign countries do.”

May, under pressure after losing her ruling Conservatives’ majority in a botched snap election and over her response to a devastating fire that killed at least 58 in a London apartment block, says she wants a clean break with the EU, a strategy some in her party have challenged as risking economic growth.

Davis, a prominent “Leave” campaigner in the referendum, said he was approaching the talks in a “constructive way,” knowing they will be “difficult at points.”

“We are not turning our backs on Europe,” he said in the statement. “It’s vital that the deal we strike allows both the UK and the EU to thrive, as part of the new deep and special partnership we want with our closest allies and friends.”

French Expected to Give Macron a Majority in Parliament

French voters are expected to hand President Emmanuel Macron a landslide majority in parliament Sunday, a second election triumph for him after his presidential victory and one which should allow him to embark on deep social and economic reforms.

Polls have opened for the second round of parliamentary elections.

Just a month after the 39-year-old ex-banker became the youngest head of state in modern French history, pollsters forecast his centrist Republic on the Move (LREM) party will win as many as 75-80 percent of seats in the lower house of parliament.

Turnout, though, could touch record lows, in a sign of voter fatigue after seven months of roller-coaster campaigning and voting, but also of disillusionment and anger with politics that could eventually complicate Macron’s reform drive.

The start-up LREM is barely more than a year old and as many as three-quarters of lawmakers are likely to be political novices, something which will change the face of parliament at the expense of the conservative and socialist parties which have ruled France for decades.

​Major reforms ahead

One of the challenges for Macron as he sets out to overhaul labor rules, cut tens of thousands of public sector jobs and invest billions of public cash in areas including job training and renewable energy, will be to keep such a diverse and politically raw group of lawmakers united behind him.

Key rivals say they expect LREM to win a majority of seats and have been urging voters to make the margin as small as possible, saying that otherwise democratic debate could be stifled.

Opinion polls show that voters, while preparing to hand Macron a crushing majority, are actually hoping for a strong opposition to emerge in parliament.

“We need other parties to have some weight,” 54-year-old assembly line worker Veronique Franqueville, who is not a fan of Macron, said on the parking lot of a tumble-drier factory where she works in the northern France town of Amiens. “If he wins it all there will be no debate.”

But among those who plan to vote for LREM candidates the mood is very different, with an overwhelming feeling that the Macron needs to be given a strong enough majority to carry out the policies on which he was elected just over a month ago.

“I will vote for the ‘En Marche’ candidate,” said Aurelie, a 25-year-old nurse in Amiens, referring to Macron’s party. “If we want the president to be able to do things we need to give him a majority.”

Older parties feel their way

The election is set to send shockwaves through the older parties, with their unity, and even survival, at stake.

The conservative The Republicans are expected to be the biggest opposition group in parliament. But polls see them securing no more than 90-95 seats out of 577.

And they may not even stay together. Some Republican lawmakers could create a separate group to back Macron on a case-by-case basis, while others may see a future firmly in the opposition.

The Socialist Party, which ruled France until last month, faces a humiliating defeat that could see them with no more than 25-35 seats.

The election also spells trouble for the far-right National Front (FN), seen with only between one and six seats when earlier it had hoped to secure a “massive” presence in parliament. Its leader, Marine Le Pen, is expected to be among those who will be elected.

Far-left leader Jean-Luc Melenchon is also seen winning a seat in parliament. But polls are unclear if his France Unbowed party will reach the 15-strong threshold required to be able to form a parliamentary group.

Polling stations close at 6 p.m. in small and medium towns and at 8 p.m. in Paris and other big cities. At that time, opinion polls will give an estimate of the outcome and official results will start trickling in. 

Tax Overhaul in Trouble as Opposition to Import Tax Grows

A key part of House Republicans’ plan to overhaul the way corporations pay taxes is on life support, leaving lawmakers scrambling to save one of President Donald Trump’s biggest priorities and increasing the chances the GOP will simply pass a tax cut instead of overhauling the tax code.

A proposed tax on imports is central to the GOP plan to lower the overall corporate tax rate. It would generate about $1 trillion over the next decade to finance the lower rates without adding to the deficit. It would also provide strong incentives for U.S.-based companies to keep their operations in the United States and perhaps persuade companies to move overseas operations to the U.S.

But the tax faces strong opposition from retailers, automakers and the oil industry, and a growing number of congressional Republicans have come out against it. They worry that it will increase the cost of imports, raising consumer prices.

Import tax

Majority Leader Mitch McConnell, R-Ky., says there probably aren’t enough votes to pass the import tax in the Senate — not a single Republican senator has publicly endorsed it. And a powerful group of House conservatives says it’s time to dump the idea.

“The sooner we acknowledge that and get on with a plan that actually works and actually can build consensus, the better off we will be,” said Rep. Mark Meadows, R-N.C., chairman of the conservative Freedom Caucus.

Even one of the biggest backers of the new tax says he is open to other ideas.

Rep. Kevin Brady, R-Texas, has pushed the tax as chairman of the powerful House Ways and Means Committee. He still says it’s the best way to promote economic growth and domestic jobs, but he has softened his stance on alternatives.

“I’m still confident that we’re going to stay at the table until we solve that problem, which is how do we stop U.S. jobs from continuing to leave the United States,” Brady said. “We’re going to remain open to the best ideas on how we do that.”

On Tuesday, Brady proposed gradually phasing in the tax over five years to give corporations time to adjust.

It wasn’t received well by opponents.

“Forcing consumers to pay more so that some profitable companies can operate tax-free is no better of an idea in five years than it is today,” said Brian Dodge of the Retail Industry Leaders Association.

What next?

But if the import tax is dead, then what?

“I would never declare anything dead until there was a fully formed alternative,” said Rohit Kumar, a former tax counsel to McConnell who now heads PwC’s Washington tax office. “I think that’s one of the big challenges that Republicans are struggling with right now.”

Thirty-one years after the last tax overhaul, there is widespread agreement that the current system is too complicated and picks winners and losers, compelling companies to make decisions based on tax implications instead of sound business reasons.

The goal — for now — is to simplify the tax code and make it more efficient in a way that does not add to the federal government’s mounting debt. That means some would pay more and some would pay less, a heavy political lift among politicians who have deep political and practical disagreements.

Lawmakers also are trying to overhaul taxes on individuals, which raises another set of big challenges.

“It’s easier to get a coalition to cut taxes,” said Mark Mazur, a former Treasury official under President Barack Obama. “And if the conversation is, `how long do they last and how deep are the tax cuts,’ each party knows how to do that conversation. It’s not like you’re asking for a huge lift.”

The new import tax, which is called a border adjustment tax, would radically change the way corporations are taxed. Under current law, corporations pay a top tax rate of 35 percent on their profits. But the tax code is filled with so many exemptions, deductions and credits that most corporations pay a much lower rate.

Proposal

Under the proposed system, American companies that produce and sell their products in the U.S. would pay a new 20 percent tax on the profits from these sales. However, if a company exports a product, the profits from that sale would not be taxed by the U.S.

Foreign companies that import goods to the U.S. would also have to pay the tax, and they would not be able to deduct the cost of the imported good as a business expense.

Republicans in Congress and at the White House have been meeting behind closed doors for weeks to come up with viable alternatives. Democrats have been largely excluded from the talks, leaving Republicans with little room for error.

“I still think that Republicans, out of pure political necessity, if nothing else, are likely to find a way to get some sort of tax bill to the president’s desk for his signature,” Kumar said.

Whether it’s genuine tax reform or simply a tax cut “is still very much in question right now,” he added.

Britain’s May Meets with Victims of Deadly High-rise Blaze

British Prime Minister Theresa May met at her Downing Street office Saturday with survivors of this week’s deadly high-rise fire, a day after being chastised by protesters and as the death toll continued to rise.

May, who is facing mounting criticism for her response to Wednesday’s west London fire that killed at least 58 people, left hundreds of others homeless and dozens missing, met for 2½ hours with a delegation of family members.

Details were not disclosed, but an unidentified group spokesman said members had given May their “demands and expectations” and that a full statement would be made only “in the community, with the community.”

The death toll that London police gave Saturday includes the 30 who had already been confirmed dead.

“There are 58 people who we have been told were in Grenfell Tower on the night that are missing and, therefore, sadly, I have to assume that they are dead,” Commander Stuart Cundy told reporters at a news conference. He said the number, based on reports from the public, could rise.

First victim identified

Sixteen bodies have been removed from the blackened, 24-story public housing unit, and the first victim was formally identified as Mohammed Alhajali, 23, a Syrian refugee.

If at least 58 deaths are confirmed, the blaze would be London’s deadliest since World War II.

Before meeting with the survivors, May chaired a “cross-government” meeting at her office “to ensure everything possible is being done to support those affected” by the tragedy, a spokesman said.

The meeting came one day after May was chastised by protesters as she visited near the scene of the blaze. She faced cries of “coward” and “shame on you” as police restrained angry crowds, following accusations of avoiding local residents during a visit to the area Thursday.

Maintenance issue cited

Survivors of the building claimed the fatal fire resulted from a lack of maintenance to the tower. They also complained that May’s visit to the neighborhood was too slow and that support was lacking for those who lost relatives and homes.

Cundy said the police investigation would look into the building’s 2016 refurbishment and promised to prosecute “if there is evidence.”

Criticism of May intensified Friday after she sidestepped questions in a televised interview about whether she had underestimated the public’s anger and frustration.

In addition to fire and police investigations into the inferno, May has promised to hold public hearings. She has also pledged $6.4 million in support to the residents and promised that those who lost their homes would be relocated within three weeks.

The prime minister is still reeling from a botched snap election that resulted in her Conservative Party’s loss of its majority in Parliament.

Stay Put? Deadly London Fire Places Scrutiny on High-Rise Rule

A catastrophic blaze at a London apartment tower has brought new scrutiny to a long-accepted, counterintuitive rule for people in tall buildings: If the blaze breaks out elsewhere in the structure, don’t automatically run for the stairs. Stay put and wait for instructions.

That’s what residents of London’s 24-story Grenfell Tower had been told to do, but the strategy failed early Wednesday when flames that began on a lower floor spread shockingly fast and quickly engulfed the entire building. Many residents were trapped, forcing some on higher floors to jump to their deaths rather than face the flames or throw their children to bystanders below. So far, at least 30 people have been reported dead and about 70 people were missing.

Despite that outcome, fire experts say “stay put” is still the best advice — as long as the building has proper fire-suppression protections, such as multiple stairwells, sprinkler systems, fireproof doors and flame-resistant construction materials, some of which were lacking in the London blaze.

 

“It is human nature for most of us — if we know there’s a fire, start moving and get out,” said Robert Solomon of the National Fire Protection Association, a U.S.-based organization that studies fire safety globally. “But we try to make sure people know there are features and redundancies in buildings that you can count on, and you can stay put.”

Fire safety rules vary

 

Most major cities with many high-rise buildings have detailed building codes and fire safety rules requiring several layers of protections in tall buildings. The rules vary from place to place, as does advice about when to evacuate, but fire experts say the “shelter-in-place” directive is usually applied to buildings of 15 stories or more.

 

Floors directly above and below the reported fire are usually evacuated, but others are to stay and use damp towels to block cracks beneath the door unless told otherwise, and call 911 if they have questions.

 

That’s partly to avoid repeated, unnecessary evacuations that cause people eventually to ignore such orders when they really matter. And it also avoids panicked and unsafe evacuations down a long stairwell choked with smoke, which can be just as deadly as the licking flames.

 

Several such high-rise evacuations over the years have resulted in needless deaths. In 2014, a man who fled his apartment on the 38th floor of a New York City apartment building died when he encountered a plume of suffocating smoke in a stairwell as he tried to descend to the street. His apartment remained entirely untouched by the flames.

Safety redundancies missing?

 

What makes the London fire maddening for fire experts who believe in the “stay put” rule is that the Grenfell may have lacked many of the safety redundancies necessary to make it work.

 

For example, the Grenfell building had only one stairwell. A lawmaker says it didn’t have working sprinklers. And Britain’s Guardian newspaper reported that cladding used on the high-rise structure was made of the cheaper, more flammable material of two types offered by the manufacturer.

 

“The bottom line: Sprinklers, fire doors and multiple stairwells work,” said Chicago Fire Department Battalion Chief Michael Conroy. “It becomes difficult to shelter-in-place when you have no engineered fire protection systems within a building.”

NYC fire boss supports stay-put

New York City Fire Commissioner Daniel Nigro, whose department is among the most practiced in the world at fighting fires in tall buildings, says he believes in the stay-put policy but “what happened in London, in which a fire went from the fourth floor to the 21st floor in what we understand was in 17 minutes, is unprecedented.”

 

The sister of a man still missing in the London blaze told reporters that when she phoned him on the 21st floor as the fire spread, he said he hadn’t evacuated with his wife and three children because fire officials told him to “stay inside, stay in one room together and put towels under the door.” Hana Wahabi said she begged her brother, Abdulaziz Wahabi, to leave but he told her “there was too much smoke.”

 

One question now is whether people will heed that guidance with the Grenfell disaster fresh in their minds.

 

“There is no way I am waiting to die in a building. I am getting out to safety,” said Jennifer Lopez, who works in a high-rise building a short walk from the World Trade Center in New York City.

Statistics support defend-in-place policy

Any move away from the shelter in place tactic would put lives at risk, said Simon Lay, a fire safety expert and fellow at the Council on Tall Buildings and Urban Habitat.

 

“Statistics tell us that defend in place remains the best policy and is based on sound principles as it enables firefighters to work unhindered and protects against the apathy that can develop from exposure to false alarms,” he said.

 

Jonathan Lum, an advertising executive who lives on the 57th floor of a glittering Manhattan tower designed by Frank Gehry, said if a fire breaks out there, he will heed the wisdom of the fire department and stay in his apartment, but partly because he lives in a building constructed in the past decade.

 

“If I were in a different, less modern building with less obvious fire safety, I’m not sure how I would feel, honestly,” he said.

Children at Risk of Disease in Eastern Ukraine as Fighting Threatens Safe Water Supply

The UN Children’s Fund warns three-quarters of a million children in Eastern Ukraine are at risk of water-borne diseases as fighting threatens to cut off their safe water supply.

The United Nations estimates around 10,000 people have been killed and more than 23,500 injured since fighting in Eastern Ukraine erupted between the government and Russian-backed separatists more than three years ago.

The U.N. children’s fund warns an upsurge in fighting in the rebel-held territory is putting more lives at risk.  The agency reports the recent escalation of hostilities has damaged vital water infrastructure, leaving 400,000 people, including more than 100,000 children without drinking water for four days this week.

Water pipes repaired

Damage to these water pipes has been repaired.  But, UNICEF says other infrastructure that provides water for three million people in eastern Ukraine is in the line of fire. UNICEF spokesman, Christophe Boulierac warns many families, including some 750,000 children will be cut off from safe drinking water if these structures are hit.

“Why we are worried is because the children who are cut off from clean drinking water can quickly contract water-borne disease, such as diarrhea,” said Bouliererec.  “Girls and boys having to fetch water from alternative sources or who are forced to leave their homes due to disruptions to safe water supplies face dangers from ongoing fighting and other forms of abuses.”  

Other problems

UNICEF reports nearly four million people in Eastern Ukraine need humanitarian assistance.  The agency says children are among those suffering the most from more than three years of conflict.  

The aid agency says tens of thousands of children face dangers from landmines and unexploded ordnance.  It says many children show signs of severe psychological distress.

 

Farmers Blast Trump’s Cuba Retreat as Bad for Trade

U.S. farm groups criticized President Donald Trump’s decision to retreat from his predecessor’s opening toward Cuba, saying it could derail huge increases in farm exports that totaled $221 million last year.

A trade delegation from Minnesota, one of the largest U.S. agriculture states, vowed to carry on with its planned visit to Cuba next week. 

“We’re going to continue to beat the drum and let them (the Trump administration) know that trade is good for agriculture,” said Kevin Paap, a farmer in the delegation.

Trump signed a presidential directive Friday rolling back parts of former President Barack Obama’s opening to the Communist-ruled country after a 2014 diplomatic breakthrough between the two former Cold War foes.

Farm groups saw the move as a step backward in what had been an improving trade relationship between the two countries, which are 90 miles (145 kms) apart, even though agriculture is not directly targeted.

U.S. law exempts food from a decades-old embargo on U.S. trade with Cuba, but cumbersome rules on how transactions were executed have made deals difficult and costly.

Since Obama’s detente, substantial headway has been made with shipments of U.S. corn and soybeans to Cuba soaring 420 percent in 2016 from a year earlier to 268,360 tons, U.S. Department of Agriculture data shows.

Through the first four months of 2017, total shipments of U.S. grain and soy were 142,860 ton, up from 49,090 tons during the same period of 2016.

While the quantities are dwarfed by total U.S. exports — nearly 56 million ton of corn alone last year — the added volumes were welcome as farmers face a fourth year of languishing grain prices and crimped incomes.

“At a time when the farm economy is struggling, we ask our leaders in Washington not to close doors on market opportunities for American agriculture,” Wesley Spurlock, president of the National Corn Growers Association, said in a statement.

The group sees an opportunity for $125 million more a year in trade to Cuba.

Trump’s move could cut off near-term sales and stymie economic development that would drive longer-term demand growth, said Tom Sleight, president of the U.S. Grains Council, a grain trade development organization, in a statement.

“Neither of those outcomes is favorable for the U.S. ag sector or the Cuban people,” he added.

Paap said the United States should be doing more to encourage exports.

“It’s frustrating because we’ve made some advances and built those relationships,” he said. 

Estonia Upstart Taxify Wants to Take on Uber

The key to success for ride-hailing providers like Uber is keeping drivers happy so they run their app, ensuring that enough cars respond to passenger demand.

Estonia upstart Taxify is hoping to win over drivers and take on Uber Technologies Inc., the industry leader, by offering a larger share of the profit.

Upstarts across the world, such as Lyft Inc. and Ola, are trying to catch Uber in the on-demand car-ride market by securing brand loyalty.

But Uber has gathered critical mass and reached a valuation of more than $60 billion in eight years, despite a lack of profits. It has kept rivals at bay, partly by offering incentives to drivers to stay online.

Taxify hopes to lure drivers

Taxify, a minnow compared with Uber, cannot afford these perks but believes that by taking a smaller share of fares, 15-20 percent compared with Uber’s 20-25 percent, it can steal market share from its San Francisco-based rival.

It also hopes that allowing drivers to take cash as well as credit card fares will also help it attract more passengers.

“Taxify’s biggest advantage is the focus on good service by treating the drivers and riders better than other platforms. This means having higher pay for drivers, thanks to lower fees,” Chief Executive Markus Villig told Reuters at Taxify’s headquarters in Estonia.

An Uber spokeswoman declined to comment but the company has said it had fare revenue of around $20 billion last year. Villig said Taxify generated fares worth “tens of millions of euros” each month. Taxify runs in just 25 cities in Europe and Africa, while Uber operates in nearly 600 cities worldwide.

Its basic business model is identical — both connect passengers with self-employed drivers. Many incumbent cab companies in Europe have developed apps to operate in a similar manner but most have focused on their domestic markets.

Markets not Uber dominated

But Taxify is unusual in launching in about 18 countries, mainly smaller markets in Eastern Europe and Africa, where Uber is absent or not yet dominant.

Uber usually takes market share by giving drivers money to sign on to its app, paying them even if they are not driving passengers. Then, as it becomes more popular with passengers, it withdraws the inducements. Analysts say Uber aims to build a customer franchise and stable of drivers to dominate the market.

“The way I see it, Taxify is cheaper than Uber,” said Tumelo Malatjie, 33, a former truck driver for a logistics firm turned full-time Taxify driver in Johannesburg. “Taxify takes 15 percent and Uber about 25 percent or 30 percent,” said Malatjie, who nonetheless is on a waiting list to become an Uber driver.

Taxify has avoided expensive head-to-head battles with its much larger rival but its model will soon be tested as Villig plans to launch in London, Uber’s biggest European market in the coming months.

“We are coming in as a second wave,” Villig said.

Small but growing

Founded 3½ years ago, Taxify has 140 staff worldwide, a third of whom are based in Estonia. It says it has 2.5 million active passengers in 18 countries. Uber says it has more than 12,000 people across the world and millions of passengers in 70 countries.

In Africa, Villig said Taxify has hired away 20 former Uber executives, helping its expansion in cities like Lagos, Cairo and Johannesburg.

The start-up has raised 2 million euros in outside financing from local venture capitalists. Like Uber, it is losing money, although it was “close to profitability for the past six months,” Villig said.

Uber reported in late May that its net loss, excluding employee stock options and other items, narrowed in the first quarter to $708 million, from $991 million in the fourth quarter.

Same challenges

Taxify and Uber face many of the same regulatory and commercial challenges.

Uber was dealt a major setback to its European ambitions in May when the lead advocate for Europe’s highest court said it should be regulated like a transport company rather than an online electronic intermediary.

Taxify could face the same legal treatment, which would make it more susceptible to new regulations being introduced by a growing number of European cities.

Similarly, bans on ride-sharing in cities such as Brno in the Czech Republic, apply to Taxify as much as Uber.

Uber has faced complaints from its drivers in London, France and the United States who were unhappy about compensation.

But Taxify has also had protests from drivers in Estonia unhappy at how the company had slashed fare rates. Villig declined to comment.

While analysts do not expect Uber to be dethroned by Taxify anytime soon, the Estonian company’s lower commission model may put pressure on Uber’s margins in countries where it is seeking to cut fares or increase its share of fares.

Colombia Reaches Deal to End 37-day Teachers’ Strike

Colombia on Friday reached a deal with public school teachers to end a 37-day strike that has kept millions of children out of classes, amid criticism the government has failed to keep its promise to improve public education after a peace deal with Marxist rebels.

Union members participating in the nationwide walkout held near-daily marches, often blocking busy roads in the capital Bogota to demand more funding for school maintenance, supplies, student meals and salaries.

President Juan Manuel Santos says he is focused on combating inequality and improving education now that a peace deal with the Revolutionary Armed Forces of Colombia (FARC), an end of more than 52 years of war, is under way.

But educators said improvements are nowhere to be seen and their salaries, some as low as 1.8 million pesos per month (about $610), are not adequate compensation for work that requires extensive and expensive higher education.

 

“The government’s priority was always to reach an agreement that recognizes the work of teachers and the indispensable role of education in the development of the country and, at the same time, be responsible with public finances,” Education Minister Yaneth Ghia told reporters.

The deal, among other things, will improve salaries through progressive bonus payments and allow bigger union involvement in how money is spent on education, she said.

The powerful Colombian Federation of Education Workers (Fecode) union, which represents more than 350,000 teachers, agreed to the deal after meeting with Finance Minister Mauricio Cardenas.

“The president said the money that went to the war would go to education but now there’s no FARC, no guns and we don’t see the funds,” said high school teacher Jose Escobar, 36, earlier on Friday during a protest in Bogota’s main square.

Places at his school, Colegio German Arciniegas in Bogota’s poor Bosa neighborhood, are in such high demand that it has been impossible to implement the government’s goal of full-day classes, Escobar said. Instead, 4,800 students in grades nine through 11 attend half-day, or six hours.

Friday’s deal will push toward the aim of full-day study.

Santos has weathered a wave of strikes in recent weeks, reaching agreements to halt protests in the port city Buenaventura and a strike by public workers.

“If the government truly is working for peace, they need to start here,” said Adriana Tunjo, a fifth-grade teacher in southern Bogota, who like other protesters decried problems which included electricity outages and sporadic provision of meals.

European Rights Body Criticizes Draft Moldovan Electoral Law

A pan-European rights body said on Friday there were significant concerns about a draft law in Moldova that would change the way the country conducts parliamentary elections and expand the powers of the president.

The proposed changes have proved divisive in the ex-Soviet nation ahead of a parliamentary election next year, when parties who favor closer integration with the European Union will fight it out with pro-Moscow rivals.

At the moment, Moldova elects its parliament under a proportional representation system. The ruling pro-European Democratic Party wants a mixed system, with some lawmakers elected, as now, on party lists, and others running in first-past-the-post constituency races.

On Friday, the Venice Commission, a body that rules on rights and democracy disputes in Europe, decided to accept the conclusion of external experts, who said the new system could be susceptible to undue influence by vested interests.

Their report “raises ‘significant concerns’ including the risk that constituency members of parliament would be vulnerable to being influenced by business interests,” the commission said in a statement.

Like neighboring Ukraine, Moldova has become the subject of a tug of war for influence between Russia and the West.

It has a trade pact with the European Union and its government says it wants even closer integration, but President Igor Dodon, a frequent visitor to Russia, has said Moldova should focus instead on building ties with Moscow.

Earlier in June, Andrian Candu, the speaker of the Moldovan parliament and a member of the Democratic Party, told Reuters he disagreed with the conclusions of the experts’ report, but would work with the Venice Commission on its technical recommendations.

European member states of the commission are committed to respecting its decisions, but Candu said the body should “not … interfere in what we consider to be the sovereign choice of the country.”

Supporters of the electoral change say having legislators represent particular constituencies would enhance the link between parliament and voters. Opponents say it is an attempt to skew the electoral system in favor of the Democratic Party.

Last Sunday, several thousand people took part in demonstrations across Moldova, protesting both in favor of and against the proposed changes.

Moldova has seen three governments fall since 2015, after the disappearance of $1 billion from the banking system plunged the country, Europe’s poorest, into political and economic chaos.

Transport Strike Brings ‘Black Friday’ to Italian Cities

Nationwide strikes left commuters and tourists stranded across Italy on Friday, as transport unions called for better job conditions for workers and protested against privatization.

Underground and overground trains, airplanes and buses were cancelled in a series of strikes over a 24-hour period starting on Thursday evening.

Transport Minister Graziano Delrio said he had tried to negotiate with union leaders, but “sadly, it will be a black Friday.”

People seeking shade from the summer sun at bus stops around Rome’s Termini train station, the city’s main transport hub, said it was unfair that the country’s powerful labour unions still resorted to striking.

“I’ve waited for buses from three different lines for two hours and not even one has passed,” said Rome resident Franco Marini. “I find this way of protesting uncivil, in the 21st century there should be other ways to resolve labor issues.”

Italy is due to spin off parts of the state railway company under a delayed privatization plan to cut its huge public debt.

It is also looking for a buyer for struggling airline Alitalia, which was put under state management in May after making losses for years.

“The doctrine of privatization has gradually, dangerously spread through this sector, creating economic instability, unemployment, fewer services, and worrying reductions in safety, and sending salaries and workers’ rights and protections into free fall,” the SGB union said in a statement.

One of the special commissioners brought in to help salvage Alitalia said the strikes were “irresponsible” and “a gift to competitors”, adding the airline would try to cancel no more than 160 of 620 flights scheduled during the walk out.

Greece Dodges New Crisis, but Austerity Remains Part of Life

Greek stocks rallied to two-year highs Friday after the government struck a deal with European creditors that means the country won’t face another brush with bankruptcy anytime soon.

However, for austerity-weary Greeks, the deal does little to lift the pall from years of belt-tightening.

After months of haggling that raised fears of another escalation in Greece’s nearly eight-year debt crisis, the 19-country eurozone agreed late Thursday to release a further 8.5 billion euros ($9.5 billion) from its current, third bailout after the Greek government delivered on an array of reforms. Getting the money was becoming increasingly urgent because Greece has a big debt repayment hump next month.

Extending repayments

With an eye to the longer term, the eurozone creditors also made clear they are ready to ease the burden of Greece’s debt repayments when its bailout program ends next year, possibly by extending repayments by up to 15 years. The International Monetary Fund may also get involved financially, with up to $2 billion, but only if and when it sees the specifics of the debt relief and agrees it can make Greece’s debt bearable.

“I think that’s really the best agreement we’ve had for quite a while,” said Pierre Moscovici, the top economy official for the European Union, the 28-country bloc that includes the 19 states using the euro.

Even though some details remain sketchy, investors breathed a sigh of relief if just on the mere fact that a deal wasn’t postponed, as has occurred so many times previously. The main Athens stock index hit a two-year high, later closing up 0.8 percent on the day. The yields on both the two-year and 10-year Greek bonds fell, reflecting diminished investor fears of the chances of bankruptcy.

“While the deal might have proved the usual exercise in issue avoidance, the fact is that it’s now unlikely that a fresh crisis will emerge in Greece in July,” said Simon Derrick, chief markets strategist at BNY Mellon.

Greece’s left-led coalition government sought to present the deal as favorably as possible, even though the precise nature of the debt relief has to still be ironed out.

“We had a decisive step yesterday,” Prime Minister Alexis Tsipras told the country’s president. “A decisive step for the country’s exit from the long-running crisis.”

Government spokesman Dimitris Tzanakopoulos said Greece’s European creditors had accepted “nearly all the points that the Greek side was asking for.”

The spokesman highlighted the creditors’ acceptance of a long-standing Greek demand that debt repayments be linked to economic growth, meaning that repayments could be postponed if the economy entered recession.

Less optimism

Outside the government, the view was less rosy.

Dozens of protesting hospital workers held a rally outside the finance ministry building in central Athens, building a fake wall outside the entrance topped with a banner reading “They have made us drown in debt.”

Pictures pinned to the fake wall depicted Tsipras, with a tie pinned to his neck. Tsipras doesn’t wear a tie, and had once joked that the only time he would do so would be on the day Greece won debt relief.

 

Tsipras, elected in 2015 on promises to repeal bailout-related budget cuts, has lost popularity after implementing further austerity measures in return for the bailout money and a promise on debt relief.

As part of Thursday’s deal, the government committed to deliver primary budget surpluses — that is, a surplus excluding the cost of servicing debt — worth 3.5 percent of Greece’s annual gross domestic product until 2022, and 2 percent thereafter each year until 2060. That is a big commitment for Greece, but seems to have been agreed on in principle to show Greece’s debt can be sustained with help from creditors.

Despite years of spending cuts and tax increases since Greece was first bailed out in 2010, the public sector debt burden stands at about 320 billion euros, or 180 percent of GDP. That’s largely because the economy has contracted by around a quarter, meaning a worsening in the relative debt load even though the budget has improved.

An outright cut in Greece’s debt is not allowed under euro rules, but the length of time the country has in paying back its debts can be extended, and the interest rates can be cut. More comprehensive details should emerge in the coming months.

Report: 65 Missing, Feared Dead in London Fire

The Sun newspaper Friday listed 65 people who it said were missing or feared dead in a London tower block fire which police said has left 17 people dead with the death toll expected to rise.

When asked Thursday whether the death toll could exceed 100, London police commander Stuart Cundy said: “I’d like to hope that it isn’t going to be triple figures.”

Trump Seen Hindering Europe’s Populist Right as Centrists Gain Ground

2017 was described as the year that right-wing populists would take charge in Europe, echoing the election of President Donald Trump in the United States. But it has not played out like that at the polls.

Centrist Emmanuel Macron scored a crushing victory in France, and the far-right UK Independence Party was all but wiped out in Britain as the ruling Conservatives lost their majority.

Analysts think Trump may in fact be hindering Europe’s populist right.

British Prime Minister Theresa May was the first foreign leader to visit Trump in January. Media on both sides of the Atlantic focused on the warm reception as the two leaders held hands on the grounds of the White House, but the encounter may have cost May at the polls.

Britain suffered a series of terror attacks before last week’s election, the latest at London Bridge, which killed seven people. Initially, Trump offered the United States’ support, but he later used Twitter to criticize the mayor of London. That led many voters to question Britain’s approach, said Ian Dunt, editor of the website politics.co.uk.

“It’s not a tangible thing, but you just get a sense of the national debate swinging back around a little bit, becoming more wary of America again,” he said.

Le Pen’s defeat

In April, Trump appeared to endorse French far-right candidate Marine Le Pen after the terrorist shooting of a police officer in Paris. Macron soundly defeated her. Polling suggested many French voters disliked Le Pen’s praise of Trump, said Catherine De Vries of the University of Essex.

“It did play a role in the sense that it hindered her chances because of the example that Donald Trump was setting in the United States, which was not necessarily perceived as positive,” she said.

Trump’s decision to pull out of the Paris climate agreement also alarmed Europe.

Competing force

“And I think many voters are now realizing and asking themselves: Would voting for anti-establishment right-wing candidates in Europe do them any good?” De Vries said. “I don’t think it’s the end of right-wing populism. I do think that they’re not necessarily the only mobilizers of anti-establishment sentiment. And they just find themselves in competition.”

That’s competition with a new political breed: populist yet centrist. But not all of Europe is converted.

Trump remains popular in the east, in countries like Poland. The president will visit Warsaw next month. No visits are planned for Paris or Berlin — and his proposed state visit to London is on hold.

Analysts say it is a mark of the growing gulf between Washington and Western Europe.

Police in Washington Seek Arrest of 16 More in Attack on Anti-Erdogan Protesters

Police in Washington have issued arrest warrants for 16 people, most of them Turkish security agents, for their alleged role in assaulting protesters outside the Turkish ambassador’s home in Washington during an official visit by Turkish President Recep Tayyip Erdogan. The incident, which left nine people injured, sparked outrage in the United States. VOA’s Zlatica Hoke reports that Turkey Thursday condemned the warrants and blamed U.S. authorities for failing to prevent the altercation.

Africa’s ‘Large and Dynamic’ Economies Cannot Be Ignored

From the president of Mozambique to the US Secretary of Commerce, greater US economic engagement in Africa is the dominant theme at this year’s business summit organized by the Corporate Council on Africa. VOA Correspondent Mariama Diallo was there and reports.

US Moves to Seize DiCaprio’s Picasso, ‘Stolen’ Funds in 1MDB Case

U.S. authorities moved on Thursday to seize a Picasso painting given to American movie star Leonardo DiCaprio and the rights to two Hollywood comedies, as they filed complaints to recover about $540 million they say was stolen from the 1Malaysia Development Berhad sovereign wealth fund.

The U.S. Justice Department filing was the latest legal action tied to alleged money laundering at the fund set up by Malaysian Prime Minister Najib Razak in 2009 to promote economic development. In the complaints, the department alleges more than $4.5 billion was taken from 1MDB by high-level fund officials and their associates.

“This money financed the lavish lifestyles of the alleged co-conspirators at the expense and detriment of the Malaysian people,” Kenneth Blanco, acting assistant attorney general, said in a statement. 1MDB could not be immediately reached for comment.

Najib has denied taking money from 1MDB or any other entity for personal gain, after it was reported that investigators traced nearly $700 million to bank accounts that were allegedly in his name.

The assets U.S. authorities are seeking to seize include the rights to Dumb and Dumber To, a 2014 comedy starring Jim Carrey, they allege was financed with tens of millions of dollars stolen from 1MDB, and the 2015 film Daddy’s Home, starring Will Ferrell. Last year, U.S. authorities moved to seize rights to the 2013 film The Wolf of Wall Street, which starred DiCaprio.

The three films were produced by Red Granite, a company founded by Najib’s stepson Riza Aziz. Red Granite said in a statement it was in discussions with the Justice Department “aimed at resolving these civil cases and is fully cooperating.”

U.S. authorities accuse Jho Low, a Malaysian financier, of laundering more than $400 million stolen from the fund through an account in the United States, where he and his friends used the money to pay for lavish parties, gambling and yachts.

Despite the civil allegations, U.S. authorities have not charged Low with any crime.

Low did not immediately respond to a request for comment sent to his Hong Kong-based company Jynwel Capital.

Artwork, Oscar for DiCaprio

Authorities said that in 2014 Low used $3.2 million diverted from a 1MDB bond sale to buy a Picasso painting for DiCaprio.

“Dear Leonardo DiCaprio, Happy belated Birthday! This gift is for you,” a friend of Low’s wrote in a note.

Low also used $9.2 million diverted from 1MDB bond sales to buy a collage made by the New York artist Jean-Michel Basquiat which was also given to DiCaprio. DiCaprio and Low signed a note in March 2014 absolving the star of “any liability whatsoever resulting directly or indirectly from these art-work,” according to the filings.

A spokesman for DiCaprio said in an emailed statement on Thursday the actor last July “initiated the return” of gifts he had received from financiers connected to the 1MDB case. The spokesman said DiCaprio also returned an Oscar won by actor Marlon Brando which was given to DiCaprio by Red Granite “to thank him for his work on The Wolf of Wall Street,” the statement said.

DiCaprio’s spokesman said the star accepted the gifts to raise funds in an auction for his environmental foundation.

Complaints against 1MDB

Fraud allegations against 1MDB go back to 2009, the Justice Department said, and the fund is subject to money laundering investigations in at least six countries, including Switzerland and Singapore.

The complaints allege that officials at 1MDB, their relatives and other associates allegedly laundered the funds using complex transactions and shell companies with bank accounts located in the United States and abroad.

That allowed the origin, source and ownership of the funds to be hidden and ultimately passed through U.S. financial institutions, with the money being used to buy and invest in assets in the United States and overseas, according to the complaints.

White House Lacks Plan to Address Debt Ceiling

The White House lacks a unified plan to increase the government’s borrowing cap as a likely September deadline is drawing near, said Mick Mulvaney, director of the Office of Management and Budget.

A failure by Congress to raise the debt ceiling could send dangerous shock waves through the global economy. The federal government could be at risk of defaulting on obligations such as interest payments on bonds as well as temporarily halting benefit programs.

The White House budget director suggested in an interview Thursday with reporters that neither the Trump administration nor Capitol Hill lawmakers had set their terms for an agreement.

“It’s fair to say we haven’t settled on a final way to address the debt ceiling any more than the Hill has,” Mulvaney said.

The former South Carolina congressman added that none of this was necessarily “unusual.”

Possible extension

Under the current borrowing restrictions, the government has already been taking extraordinary measures and will likely be unable to pay its bills at some point in September. But Congress still has a recess scheduled in August that could create time pressures. Private analysts say the debt ceiling deadline could be extended into October.

Mulvaney said he would like to see the debt ceiling raised in July.

But Trump administration officials still have yet to resolve internal differences on the best strategy to increase the legal cap on government debt, which already exceeds $19.8 trillion.

Mulvaney suggested he would like to have any increase in the borrowing authority be attached to other spending changes, a move that could attract Republican support but alienate Senate Democrats. President Donald Trump’s budget proposal seeks to beef up spending on the military and border security while cutting many social programs.

Treasury Secretary Steve Mnuchin has indicated he would like a “clean” bill to raise the debt ceiling, so it would not have to be tied to any spending changes, but Capitol Hill conservatives are resisting the idea.

“Secretary Mnuchin believes it needs to be clean. I think the vast majority of the Republican conferences would not agree,” said Representative Mark Meadows R-N.C., chairman of the Freedom Caucus, a group of strongly conservative House Republicans.

Mulvaney said Mnuchin would ultimately be in charge of handling the debt ceiling push “once we do settle on our formal policy, if we do.”

A 2011 standoff between Republicans and the Obama administration over the debt ceiling led to tighter controls on spending. That standoff was not resolved until the 11th hour and prompted Standard & Poor’s to impose the first-ever downgrade to the country’s credit rating.

Talks with lawmakers

The administration is also engaged in talks with House and Senate Republican leaders about what kind of increase they could possibly pass. Mulvaney said the issue was not a source of division inside the White House or the Republican Party.

The discussions involve whether the House should increase the debt limit enough to last through the 2018 election or the president’s first term.

“It would be foolish of us to come up with a policy devoid of having talked to the Hill,” Mulvaney said.

Congress also faces pressure to pass a budget in September for next fiscal year, as well as to address administration priorities that include a tax code rewrite and the proposed repeal of former President Barack Obama’s 2010 health insurance law.

Failure to pass spending bills could cause a government shutdown and cause nonessential government agencies to close. Trump suggested on Twitter last month that he might welcome a shutdown to help shake up the government.

Mnuchin told the Senate Budget Committee this week that “at times there could be a good shutdown,” though he cautioned it’s not the administration’s “primary objective.”

With action on the budget front otherwise stalled, the House Appropriations Committee on Thursday approved the first of 12 spending bills, an $89 billion measure that contains generous increases for veterans programs and Pentagon construction projects.

But the White House and its GOP allies — much less opposition Democrats — haven’t come up with an overall plan for implementing Trump’s promises to increase the Pentagon budget and advance more than $500 billion worth of annual domestic agency spending bills.

London Fire Chief: ‘Absolute Miracle’ if More Survivors Found

London fire officials said Thursday firefighters had put out a blaze that killed 12 people as it raced through a 24-story apartment building a day earlier, and that an unknown number of people remained inside.

“Tragically, now we are not expecting to find anyone else alive,” London Fire Brigade Commissioner Dany Cotton told Sky News. “The severity and the heat of the fire will mean that it would be an absolute miracle for anyone to be left alive.”

The fire moved quickly through Grenfell Tower in West London in the pre-dawn hours of Wednesday, trapping residents. The building contained an estimated 120 apartments and was home to as many as 600 people.

Cotton said it will take time for crews to search the building and identify anyone who is left there. She also said that while investigators are working to determine the cause of the fire, it is “far too early” to speculate what started it.

WATCH:  Video footage and eyewitness account from scene

Witnesses said they heard screams for help as the fire stormed through the floors, trapping residents who could be seen from windows flashing their cell phone lights in hopes of being rescued. Witnesses said some residents held small children from windows while other people jumped from the lower stories of the building.

 

Why did fire spread so quickly?

As the building continued to burn after noon Wednesday, questions emerged on why the fire spread through the building so quickly in a city where a centuries-old history of disastrous fires has forced one of the world’s most stringent fire codes.

Some residents evacuated from the building said they did not hear fire alarms. Some reported smelling burning plastic in the early moments of the fire, which broke out just after midnight. Questions pointed to non-existent or malfunctioning sprinklers, flammable plastic building components, and insufficient fire escapes.

 

Survivors also said they received orders from emergency workers to stay in their apartments, a standard fire procedure but one that angry residents said was the wrong thing to do this time.

“It was horrendous. People up at their windows, screaming and the thing went up, it felt like seconds, it was just going up and up and up,” a resident who identified himself as Mikey, told the British Broadcasting Corporation. “I’ve never seen nothing like it. It was like something out of a Hollywood disaster movie,” he said.

 

London Mayor Sadiq Khan said Wednesday that “many, many people have legitimate questions that demand answers.”

PM calls emergency meeting

British Prime Minister Theresa May called an emergency meeting on dealing with the disaster. A spokesman for Number 10 Downing Street said May “is deeply saddened by the tragic loss of life.”

 

Aside from the 12 victims who have thus far been confirmed dead, officials said at least 74 people were taken to hospitals with injuries that included smoke inhalation. Hospital officials say 20 are in intensive care.

 

London commuters faced snarled traffic as police cordoned off streets and cleared the surrounding area. As the fire burned ferociously Wednesday, there were concerns the building might collapse.

 

Officials later said structural engineers were confident that would not happen. “Structurally it is safe for our crews to be in there working,” Cotton said.

US Central Bank Hikes Key Interest Rate Amid Weaker Than Expected Data

The U.S. central bank raised its benchmark interest rate Wednesday amid concerns about sluggish growth, a slowdown in consumer spending and low inflation. But the head of the U.S. Federal Reserve says the one-quarter of 1 percent increase in the federal funds rate demonstrates the committee’s confidence in the overall health of the U.S. economy. Mil Arcega has more.

Turkish Opposition Party Begins 250-mile Protest March

Turkey’s main opposition party has started a 400-km (250-mile) march from the capital to an Istanbul prison to protest the imprisonment of one of its lawmakers.

The leader of the pro-secular Republican People’s Party, Kemal Kilicdaroglu, said Thursday he is seeking justice. He called the march after parliamentarian Enis Berberoglu was convicted to 25 years in prison for revealing state secrets.

With thousands gathered in protest, Kilicdaroglu said: “Everyone needs to defend the independence of the judiciary and justice in this country.”

The guilty verdict for Berberoglu is part of a case that stems from a 2015 story by the Cumhuriyet newspaper suggesting Turkey’s intelligence service had smuggled weapons to Islamist rebels in Syria.

Kushner Company Drops Tax Break Request in New Jersey

The real estate firm owned by the family of Jared Kushner has withdrawn a request for a big tax break for one its buildings in Jersey City, New Jersey, the latest setback for the company in the area.

 

The Kushner Cos. sent a letter withdrawing its application for a 30-year break from city taxes for a planned two-tower project in the struggling Journal Square section of the city, Jersey City spokeswoman Jennifer Morrill said Wednesday. Opponents of the tax breaks marched downtown earlier this year and the city’s mayor recently came out against the Kushner request.

 

Jared Kushner was CEO of the family company before stepping down to become a senior adviser to his father-in-law, President Donald Trump.

Committed to area

 

Kushner Cos. spokesman James Yolles said the company is committed to the “much-needed investment” in that area of the city.

 

The loss of the tax break is the latest blow for the company in a city where it is major real estate developer.

 

The 79-story building, One Journal Square, gained attention last month after Jared Kushner’s sister, Nicole Kushner Meyer, mentioned her brother in a presentation in Beijing where she had hoped to attract Chinese investors in the building. Marketing material noted the “celebrity status” of her family.

 

Government ethics experts blasted the family for what they said was an attempt to profit off Jared Kushner’s position in Washington, and the Kushner Cos. canceled upcoming investor presentations in the country.

 

The company said Meyer wasn’t trying to use her White House ties to attract investors.

EB-5 visa program

 

The Kushner family is seeking 300 wealthy Chinese to invest a total of $150 million in One Journal Square. The family was trying to raise money through the EB-5 visa program that grants temporary U.S. residency to wealthy foreigners in exchange for investments of at least $500,000 in certain U.S. projects

 

The company also is in danger of losing another tax break for the building. The shared office space firm WeWork recently pulled out as anchor tenant. That has put in doubt a state tax break tied to WeWork.

 

Another project is off, too. The Kushner Cos. once considered bidding to develop a 95-acre industrial site along the Hackensack River in the city for housing, called Bayfront. Last month, it was revealed the family had withdrawn from those plans last year.

 

The Kusnher Cos. has said politics had nothing to do with its decision to withdraw from Bayfront, and that “economics of the deal” drove the move.

 

As for One Journal Square, company spokesman Yolles said the project will provide 4,000 construction jobs and $180 million in tax revenue for the city over 30 years.

Tax breaks an issue

 

Jersey City Mayor Steven Fulop, a Democrat, is running for re-election this fall, and tax breaks to developers have become a major issue.

 

Unlike neighboring Hoboken, Jersey City has granted dozens of tax breaks in recent years. Fulop had campaigned to reform the practice, but critics say he has done little.

 

Another Kushner property in the city overlooking the Hudson River got a five-year tax break soon after Fulop was elected mayor. That 50-story building has licensed the Trump name and is called Trump Bay Street. The building was also partly financed with EB-5 visa money from abroad.

 

The Kushner family owns or manages 20,000 apartments, 13 million square feet of office space and industrial properties in several states, including New York, New Jersey, Maryland and Illinois. 

Russia’s Hosting FIFA Tournaments Reignites World Cup Hopes

Russia’s hosting of FIFA’s (International Federation of Association Football) Confederations Cup from June 17 to July 2 and the World Cup championship in 2018 is reigniting hopes in the country for football (soccer).

The last time Russia made the world’s top four was in 1966 when it was part of the Soviet Union.

Watch: Russia’s Hosting of FIFA Tournaments Reignites World Cup Hopes

 

Russian football gained global recognition during the 1966 World Cup when the Soviet Union defeated Italy, Chile, and Hungary to take fourth place.

Half-a-century later, the few living players from that championship have yet to see Russia return to the top four.

 

“When there was the world championship in England, the coach said, ‘Thank you guys, we won’t achieve such a success for the next 50 years.’ So, 50 years passed,” said Vladimir Ponomarev, USSR defender in the 1966 championship.

Fans have high hopes

 

Despite Russian football’s struggle since, die-hard fans have high hopes for the tournaments.

 

“That’s why we are faced with big problems when they show negative results,” said Lokomotiv Football Club’s Maksim “Loko” Shataylo. “Sometimes it may result in such extraordinary situations because the fans become too upset. They believe too much, they hope too much! I believe in the better. We’ll definitely be in the top eight,” adds Shataylo.

As host of the FIFA tournaments, Russia’s national team automatically qualifies to compete.

Russia’s star players say their goal is clear.

“Of course, it is to get to the final game, step by step,” said Spartak Moscow Football Club Captain Denis Glushakov in May comments to the press. “We’ll play the first and the second match and only then I may tell you whether we get to the final or not.”

Passion is lacking

Ponomarev says Russian football lacks the passion it had during Soviet times.

 

“But we’ll keep working and growing. We’ll keep training and that will allow us to get on the same level as great European teams,” said Ponomarev. “So far, we are not much valued. The Confederations Cup matches will show us the level of Russian football.”

The Confederations Cup will also test how well Russia itself is prepared for next year’s World Cup championship.

“As for the world championships and the idea that so much effort is put into winning them without a result, I think that after the world championship of 2018 there will be a breakthrough in football here,” says Shataylo. “It will become more popular. New stadiums, new infrastructure are under construction. It will be more convenient to move around the country to see the matches. The fans will love this country and football, and all will be well.”

Meanwhile, Ponomarev continues to support Russian football and the next generation of players by offering advice to amateur teams and coaches.

“We must start small. We must start with our small footballers who train here,” he said.

But as for hosting the upcoming FIFA tournaments, he adds optimistically, “For me it will be a success. Fifty years have passed. It’s time to get to fourth place. It would be superb for all Russian fans! They would be absolutely happy.”

Field is set

For the host Russian team, its Confederations Cup Group A opener will be played on Saturday (June 17) against New Zealand in St. Petersburg. Wednesday (June 21) the Russians play in Moscow against Portugal, and the hosts final group match is against Mexico in Kazan on June 24.

The other four teams in the tournament — Cameroon, Chile, Australia and Germany — are in Group B. After round-robin play, the first and second-place teams in each group advance to the semifinals, with the championship match in St. Petersburg July 2. The tournament winner will receive $5 million, and the runner-up $4.5 million.

 Olga Pavlova and Ricardo Marquina Montañana contributed to this report.

Lighter Cars Can Save a Lot of Money

Fierce competition among car manufacturers requires constant search for ways to cut expenses without compromising safety and other standards. One of the areas with room for improvement is in manufacturing of car bodies, which could be made lighter but still strong enough to protect passengers. VOA’s George Putic visited the National Institute for Science and Technology, NIST, outside Washington, where everything starts with new ways of testing sheet metal.

Britain’s Left-Wing Labour Surge Takes Inspiration from US, France

As the political instability in Britain continues, pollsters say last week’s election appears to have marked a watershed moment. Young people voted in big numbers – with some estimates suggesting turnout soared from 44 percent in 2015 to as much as 72 percent this year – and most voted for the left-wing Labour party. Activists say they have taken inspiration from other political movements across the globe.

Ben Noble and James Fox work at a radio station in Brighton. Outside work hours, they are committed Labour party activists. They’re celebrating a big win.

The Labour candidate in Brighton Kemptown beat the incumbent Conservative MP by some 10,000 votes – a 10 percent swing. Pollsters say the youth vote was behind Labour’s surge.

 

Speaking to VOA on Brighton’s windy seafront, Ben Noble said the election has destroyed myths about young people.

 

“It’s simply not true that the young vote are uninformed or ignorant. In fact maybe we’re more engaged than anyone else because we see news through Facebook and Twitter,” he said.

Inspired by Bernie Sanders

In the social media battle, Labour crushed its rivals. Of the top 100 shared political news stories, just five were pro-Conservative. Many youth activists took inspiration from Senator Bernie Sanders’ campaign in the United States to become the Democratic Party’s 2016 presidential candidate. Labour activist James Fox says he narrowly lost to former U.S. Secretary of State Hillary Clinton – but galvanized left-leaning, young voters.

 

“I’d never been involved with an election campaign. And seeing the Bernie campaign, how that worked, I was like, I know if it’s going to happen that’s the only way I can make it happen,” he said.

 

Noble said younger people have watched the rise of global right-wing politics with alarm.

 

“There’s a sense of urgency as well because we saw what happened in America. A lot of us didn’t like it. We saw what nearly happened with Le Pen in France. And I think it’s scary times internationally,” he said.

 

The Labour vote surged in university towns like Brighton – where many students were attracted by the party’s pledge to scrap annual $12,000 tuition fees. The election laid bare Britain’s generational divide. Pensioners Barbara and Ann accuse Labour leader Jeremy Corbyn of making promises the country can’t afford.

“He just won them for the youngsters, what he’s put on, what he’s going to do for the youngsters,” said Barbara. “And where is the money going to come from?”

Ann said, “I do feel sorry for the young though. We certainly had it a lot better as we were growing up.”

Hopeful about future

Young Labour supporters see a brighter future with Jeremy Corbyn.

 

“They’ve shown that there’s a pathway to a Labour government,” said Fox. “And everyone before that was saying, ‘You’re never going to be in power.’”

 

Nobel said, “It’s also a vindication of left-wing policies. Left-wing policies have come alive again.”

 

Labour is still not in power. But the close result means another early election is possible. And the party’s young supporters believe the momentum is with them.

Rights Group: FIFA Construction Workers Exploited in Moscow

Workers hired to build stadiums and other structures in preparation for the FIFA 2017 Confederations Cup and 2018 World Cup in Moscow face exploitation and labor abuses, Human Rights Watch said Wednesday.

Russian workers, many of whom migrated internally, and migrant workers from neighboring countries both reported unpaid or delayed wages, work in conditions as cold as -25° C, and the failure of their employers to provide work contracts required for legal employment, the watch dog said.

“FIFA’s promise to make human rights a centerpiece of its global operations has been put to the test in Russia, and FIFA is coming up short,” said Jane Buchanan, associate Europe and Central Asia director at Human Rights Watch. “Construction workers on World Cup stadiums face exploitation and abuse, and FIFA has not yet shown that it can effectively monitor, prevent, and remedy these issues.”

Human Rights Watch also said that workers were hesitant to speak about abuses, fearing reprisals from their employers.

Additionally, the international rights group said one of their researchers was detained, questioned, threatened, and eventually released without charges by Russian authorities while trying to interview construction workers outside the World Cup stadium in April.

Though FIFA documented a system coordinated with Russian authorities to monitor working conditions, Human Rights Watch stressed that the system was not made public, and that it only covered the construction of stadiums and no other World Cup infrastructure construction.

Russia will host eight international soccer teams, including its own at the Confederations Cup from June 17 to July 2. One year later, Moscow will host the World Cup, the world’s premier football tournament.

France’s Embattled Justice Chief Unveils Clean Politics Bill

France’s government is presenting a bill on cleaning up political ethics after years of corruption scandals — even as investigations haunt members of President Emmanuel Macron’s new government.

 

Justice Minister Francois Bayrou is unveiling the draft law on “restoring trust” in politics Wednesday to the Cabinet, the first major legislation by Macron’s administration.

 

It’s expected to easily pass parliament, where Macron’s party is on track to win a crushing majority in elections Sunday.

 

Yet the bill, a key Macron campaign promise to “moralize” France’s political life, is already clouded.

 

Bayrou’s centrist party Modem is under investigation for possible misuse of European Parliament funds.

 

The minister for European affairs, Marielle de Sarnez, also a member of the Modem, is among several French politicians facing a similar probe.

 

And the territorial cohesion minister Richard Ferrand is under investigation for his past business practices. They all deny wrongdoing.

 

The new bill notably would ban lawmakers and government members from hiring family members. About a hundred lawmakers — out of 577 — employed at least one family member during the last term at the National Assembly.

 

The presidential campaign had been deeply disturbed by an investigation of conservative candidate François Fillon. His wife, Penelope, was richly paid as a parliamentary aide, allegedly without actually working.

 

The bill would create a new sentence enabling judges to ban a person convicted for fraud or corruption-related crimes from running for an elected office for up to 10 years.

 

France’s Senate and the National Assembly would have to set specific rules to prevent conflicts of interest.

 

Lawmakers will be asked to report their expenses — a first in the country. Until now, lawmakers get monthly allowances to cover expenses they didn’t have to justify.

 

 

Big Data gives China’s top 3 Internet Firms Big Leverage

China’s three big Internet-driven companies, Alibaba, Tencent, and Baidu, are set to influence a vast section of the country’s business because they control data concerning the consumer and social behavior of millions of people. The awesome power comes from the government’s drive to develop a “big data” industry, which is thriving in China.

Several other players, including utilities like phone companies and retail chains, are also trying to dip into the newly discovered pot of money from buyers who need information to understand buying preferences of potential customers, and design their products and strategies in line with the data flows.

“It [big data] is an improvement to do [a] better job, but unfortunately your [consumer’s] lifeline is more and more dependent on these big three guys,” said Chiang Jeongwen, a professor of marketing at the China Europe International Business School.

Recent studies have shown that nearly 90 percent of China’s 731 million online users have made at least one online purchase, often involving the use of Baidu’s search facilities, e-commerce sites and third-party transactions using mobile phone apps.

Predicting trends

“People are buying things and using their third party payment systems. [That] information [is] also being captured by Tencent and Alibaba. That is huge because now they know both offline and online information of consumers,” said Chiang.

These companies own a wide range of businesses that makes it possible for them to gather both online and offline data that is generated when a customer uses a phone app to make payments at a physical shop.

Alibaba owns Alipay while Tencent runs the highly popular WeChat service which offers mobile payment options. Baidu is China’s biggest internet search engine and holds the kind of influence that Google does in other countries.

“They have diversified the services [that] they offer. Alibaba, they are big in e-commerce. The kind of data they generate comes from anything ranging from what you buy online to your bill payments, travel bookings you do with, for example, the Alipay app,” said Shazeda Ahmed, visiting academic in the technology and economics division of Mercator Institute of Chinese Studies.

“People use the same platforms to make purchases, so there is a sense of extreme power in this situation because you can do all of these on one platform,” she explained.

These companies have a very strong predictive power that comes from a vast store of historical data and real-time data that they are collecting from users of different services. “They kind of able to anticipate the next thing a user might want before the user himself is aware of it,” she said.

Trading in data

The expansion of big data has given rise to serious concerns about the privacy of millions of people, who reveal both their transaction information and facets of social behavior through social media.

China has seen the rise of a black market for data. Data sellers offer a wide range of data on a targeted person, business or community by cracking into official databases and privately run sites.

But Chinese officials insist the government has put in place strong safeguards.

“There is a very strong firewall built before the big data center was established,” Zhang Bin, a senior official of the main big data center established by the Chinese government in Guiyang city. “We also made strict policy to control the data leaks from the government, so these are the two ways to protect information not to be leaked to the private companies for illegal use.”

The government has established a big data exchange center in Guiyang to encourage private and state-run companies to trade in data in a transparent manner, and help the industry find out the real price of the information. The center has come in for some praise by foreign companies who visited it but some questions remain unanswered.

“Having a legitimate place to trade data is an idea, but how does an exchange ensure that the data controllers has to requisite rights to sell data and it’s not breach of privacy?” Gagan Sabharwal, director of the National Association of Software and Service Companies in India, said after a recent visit.

Panama’s Business Chiefs Hope for Big Return From New Ties to Beijing

Panama’s business community on Tuesday cheered the Central American country’s decision to establish full diplomatic ties with China and ditch Taiwan, hoping to deepen links with a key customer of the nation’s shipping canal.

Although there was regret at the cost to Taiwan, an ally of various Central American nations, there was broad support for President Juan Carlos Varela’s decision to throw his lot in with China, whose growing global ambitions contrast with U.S. President Donald Trump’s isolationist rhetoric.

“I’m sure it wasn’t an easy decision, given the long-term links we’ve had with Taiwan, but nonetheless, [China] is a global superpower, the world’s No. 2 economy, the second biggest user of the canal – and so we think this is a positive development that will result in more business and investment in Panama,” said Inocencio Galindo, president of Panama’s Trade, Industry and Agriculture chamber.

The diplomatic U-turn comes as China attempts to position itself as a defender of free trade in the face of the “America First” policy of Trump, who was elected in November 2016.

Chinese officials also celebrated the news.

Wang Weihua, the permanent representative in the Office of China-Panama Trade Development and Beijing’s top representative in the country, said various attempts had been made over the years without success to establish formal ties.

Late last year, more advanced talks began with Varela’s team that concluded only this week, said Wang, who added he was involved in the discussions.

China is interested in Panama for its strategic location, and as a trade and logistics hub, he added.

“China has made a big bet on Latin America, where it has strategic investments, and Panama, which didn’t have diplomatic relations, was losing out on those advantages,” he said in an interview. “Now Panama will be able to enjoy what our country can offer it in various sectors.”

Almost a fifth of the cargo crossing the isthmus last year went to or from China, which has been taking an increasing interest in the Panama Canal.

In March, the canal’s administrator, Jorge Quijano, said Chinese state firms were considering developing land around the waterway, which was recently expanded.

A spokesman for the canal said Quijano would address the implications of the diplomatic change for commerce on Thursday.

Bright Future

Taiwanese economic aid has helped support Central America, a region in the United States’ backyard that relies heavily on agriculture and struggles with law and order.

Its remaining allies were guarded about what the future held for their ties with Taiwan, which China considers a renegade province.

Panama’s foreign minister, Isabel de Saint Malo, said Varela had expressed an interest a decade ago in establishing ties with China. She hoped the move would lead to trade, investment and tourism opportunities, especially for “exporting more goods from Panama to China.”

According to Panamanian statistics, total trade between Panama and China was worth $1.1 billion in 2016 – roughly 12 times the value of the nation’s commerce with Taiwan. Chinese exports accounted for the vast majority of it.

Alvin Weeden, a former comptroller of Panama, said the decision to break ties with Taipei in favor of Beijing would boost business and should have been taken years ago, given Panama’s reliance on global trade and Chinese shipping.

“Every day, Taiwan is more isolated,” he said, adding he did not expect the move to hurt Panama’s ties with the United States, the top canal customer. “This is a reality that’s happening, a geopolitical reality.”

Octavio Vallarino, a partner of Desarrollos Bahia, a local real estate firm, said he hoped direct flights would soon be established between the two countries, and that the commercial real estate market would be bolstered by arriving Chinese firms.

Sara Pardo, president of Panama’s hotel association, said the accord could help make travel between the two countries easier.

“This is definitely going to strengthen the economy,” she said.

Mexico’s Native Crops Hold Key to Food Security, Ecologist Says

Mexico’s ancient civilizations cultivated crops such as maize, tomatoes and chilies for thousands of years before the Spanish conquerors arrived — and now those native plants could hold the key to sustainable food production as climate change bites, said a leading ecologist.

José Sarukhán Kermez, who helped set up Mexico’s pioneering National Commission for the Knowledge and Use of Biodiversity (CONABIO), said that analyzing the genetic variability of traditional crops, and supporting the family farmers who grow most of the world’s food offered an alternative to industrial agriculture.

“We don’t need to manipulate hugely the genetic characteristics of these [crops] … because that biodiversity is there — you have to just select and use it with the knowledge of the people who have been doing that for thousands of years,” said Sarukhán, CONABIO’s national coordinator, in a telephone interview.

The emeritus professor and former rector of the National University of Mexico (UNAM) recently won the Tyler Prize for Environmental Achievement, often referred to as a “Nobel for the Environment.”

Making use of the knowledge held by indigenous groups is “absolutely essential,” Sarukhán told the Thomson Reuters Foundation.

That requires working with a wide range of people, from local cooks to small-scale farmers, especially in states like Oaxaca and Chiapas in the south of Mexico where indigenous farmers have a strong traditional culture, he said.

“They haven’t gone to university, and they don’t have a degree — but they damn well know how to do these things,” he said.

For example, they discover and incorporate new knowledge as they exchange seeds with peers from different areas.

Key is funding

CONABIO is hoping to win some $5 million in funding from the Global Environment Facility for a five-year project worth more than $30 million to speed up research into indigenous crops.

The aim is to enrich the commission’s vast online database of biodiversity, with a view to influencing national agricultural policy, said Sarukhán.

CONABIO’s information on the genetic adaptability of native plants will enable scientists to develop new lines that can tolerate wetter or more arid conditions as the climate changes, he said.

Highlighting the potential of climate-adapted native crops, Sarukhán said around 60 types of maize are grown across Mexico, from the coast to 3,000 meters (9,843 feet) above sea-level, while only a handful of species are sold commercially.

Forest protection

With Mexico’s hugely varied ecosystems and biodiversity under threat, the ecologist urged a greater focus on schemes to boost local incomes rather than giving grants to encourage people to maintain vast swaths of the country’s forest.

Projects like growing organic coffee in Oaxaca’s forests or ecotourism in Chiapas are helping provide communities with a decent income and an incentive to protect the environment, he said.

Rural and indigenous communities own 60 to 70 percent of all Mexico’s forests and natural ecosystems, he noted.

“That is the patrimony they have — they don’t have anything else to live on,” Sarukhán explained. “There are ways in which you can combine the sustainable management of the forest with more attractive incomes for the owners of the forest.”