· Humanitarian crisis could deepen, report warns · Quartet seeks to bypass Hamas in providing funds The EU is preparing to go it alone and channel emergency funds to the Palestinians if talks with the US, Russia and United Nations on setting up an international mechanism for easing their financial plight fail this week, senior officials indicated at the weekend. Pressure for a swift agreement on supplying food and other aid directly to Palestinians as well as money to pay the salaries of health workers and teachers intensified when President Mahmoud Abbas and Ismail Haniyeh, prime minister of the Hamas-led government, failed to resolve the crisis over the weekend. The US and EU suspended direct funding to the Hamas government early last month, leaving 165,000 public employees of the Palestinian Authority (PA) unpaid so far this month. According to a Brussels document, the crisis in Gaza and the West Bank could deepen in the next few months, leading to "greatly increased unemployment and poverty levels, and possibly the breakdown of law and order". The "quartet" of peace mediators - the EU, US, Russia and UN - will discuss in New York tomorrow plans put forward by Britain and France for the "international mechanism" to bypass both Hamas and President Abbas and provide funds and aid through bodies such as the World Bank, IMF or the UN itself. But Washington has resisted the idea of paying overdue salaries to workers in essential services such as health and education. Its tougher stance, with Israel's backing, is seen by some Palestinians as not so much an effort to change Hamas policies as to change the regime. Benita Ferrero-Waldner, EU external affairs commissioner, who was in Egypt at the weekend, said: "We do hope there's a chance for a common agreement on this issue." She refused to set a deadline but admitted that the humanitarian crisis among Palestinians was worsening.
The EU is preparing to go it alone and channel emergency funds to the Palestinians if talks with the US, Russia and United Nations on setting up an international mechanism for easing their financial plight fail this week, senior officials indicated at the weekend.
Pressure for a swift agreement on supplying food and other aid directly to Palestinians as well as money to pay the salaries of health workers and teachers intensified when President Mahmoud Abbas and Ismail Haniyeh, prime minister of the Hamas-led government, failed to resolve the crisis over the weekend.
The US and EU suspended direct funding to the Hamas government early last month, leaving 165,000 public employees of the Palestinian Authority (PA) unpaid so far this month. According to a Brussels document, the crisis in Gaza and the West Bank could deepen in the next few months, leading to "greatly increased unemployment and poverty levels, and possibly the breakdown of law and order".
The "quartet" of peace mediators - the EU, US, Russia and UN - will discuss in New York tomorrow plans put forward by Britain and France for the "international mechanism" to bypass both Hamas and President Abbas and provide funds and aid through bodies such as the World Bank, IMF or the UN itself.
But Washington has resisted the idea of paying overdue salaries to workers in essential services such as health and education. Its tougher stance, with Israel's backing, is seen by some Palestinians as not so much an effort to change Hamas policies as to change the regime.
Benita Ferrero-Waldner, EU external affairs commissioner, who was in Egypt at the weekend, said: "We do hope there's a chance for a common agreement on this issue." She refused to set a deadline but admitted that the humanitarian crisis among Palestinians was worsening.
Europe's heads of government will be asked next month to weaken their hold over cross-border police and judicial co-operation in a move that could herald a new era of European integration. The plan, to be debated at a summit in June, is designed to show the EU can shake off the political paralysis caused by the French and Dutch rejections of the European constitution. The Commission president, Jose Manuel Barroso, said he would use the summit to call for countries to pool more powers in a "large number" of areas of police and judicial co-operation.
The plan, to be debated at a summit in June, is designed to show the EU can shake off the political paralysis caused by the French and Dutch rejections of the European constitution.
The Commission president, Jose Manuel Barroso, said he would use the summit to call for countries to pool more powers in a "large number" of areas of police and judicial co-operation.
The Economist: Shopping for low tax rates is no crime
THE difference between tax evasion and tax avoidance, Denis Healey, a former chancellor once said, is the thickness of a prison wall. Now, it seems, it is the thickness of a lawyer's brief. Two rulings this week, one European and one British, grappled with the conundrum of how authorities in one country levy tax on profits earned in another. The first makes it easier for British companies (and, by extension, other European firms) to cut their tax bills by setting up subsidiaries in low-tax jurisdictions, while the second makes it harder for British individuals to do the same. In the first case, brought by Cadbury Schweppes, which makes soft drinks and confectionery, the European Court of Justice (ECJ) looked at whether Britain could impose a top-up tax on profits that Cadbury had earned in two subsidiaries in Ireland. It was no idle question. The Irish tax rate was just 10% while Britain's was 30%; the taxmen demanded the difference. On trial was the British practice of peering into a firm's heart, examining its motives for setting up a foreign subsidiary and imposing its own tax rates on profits earned there if it finds the impure desire to pay less tax. Philippe Léger, the ECJ's Advocate General, ruled on May 2nd in a non-binding opinion that wanting to minimise tax is no crime: companies may happily shop around for the lowest rate when deciding where to establish subsidiaries. Ireland, Luxembourg, Estonia, Lithuania, Latvia, Hungary, Poland and Slovakia all have corporation-tax rates below 20% and stand to gain if firms are allowed to hunt for low tax rates as they do for low wages. This was a blow for the British government, which is trying to protect its revenue base from the encroachments of European integration. Last year it failed in an attempt to ring-fence tax losses made by foreign subsidiaries of Marks & Spencer, a retailer. " We are seeing the ever-increasing erosion of member states' sovereignty on the issue of national tax ," says Mark Persoff of Clifford Chance, a legal firm.
In the first case, brought by Cadbury Schweppes, which makes soft drinks and confectionery, the European Court of Justice (ECJ) looked at whether Britain could impose a top-up tax on profits that Cadbury had earned in two subsidiaries in Ireland. It was no idle question. The Irish tax rate was just 10% while Britain's was 30%; the taxmen demanded the difference. On trial was the British practice of peering into a firm's heart, examining its motives for setting up a foreign subsidiary and imposing its own tax rates on profits earned there if it finds the impure desire to pay less tax.
Philippe Léger, the ECJ's Advocate General, ruled on May 2nd in a non-binding opinion that wanting to minimise tax is no crime: companies may happily shop around for the lowest rate when deciding where to establish subsidiaries. Ireland, Luxembourg, Estonia, Lithuania, Latvia, Hungary, Poland and Slovakia all have corporation-tax rates below 20% and stand to gain if firms are allowed to hunt for low tax rates as they do for low wages.
This was a blow for the British government, which is trying to protect its revenue base from the encroachments of European integration. Last year it failed in an attempt to ring-fence tax losses made by foreign subsidiaries of Marks & Spencer, a retailer. " We are seeing the ever-increasing erosion of member states' sovereignty on the issue of national tax ," says Mark Persoff of Clifford Chance, a legal firm.
So Europe is blamed because it "erodes national sovereignty", precisely because it says that European countries are free to play with corporate taxes as they see fit and corporations are free to take advantage of it across Europe?!?
The gall. Un-fuckin-believable.
Europe is bad, until it's needed for parochial reasons, and then it is needed to bang heads. But it's still blamed in the meantime.
Gah. In the long run, we're all dead. John Maynard Keynes
while the second makes it harder for British individuals to do the same.
What was that about?
Bulgaria's prime minister yesterday appealed to the European Union not to "humiliate" his country, as EU leaders prepared to make Sofia sweat over whether it could join next year. José Manuel Barroso, European Commission president, has decided to delay by up to five months a decision on whether Bulgaria and Romania should join the EU in 2007, to assess whether they are serious about tackling corruption and organised crime. His biggest concerns are over Bulgaria, where police and judicial reforms have so far failed to yield high-level prosecutions of criminal bosses or crooked politicians. Olli Rehn, EU enlargement commissioner, has praised Romania's progress but has called on Sofia to be "much more vigorous" on crime. Mr Rehn had hoped to be in a position to recommend an entry date for both countries in a report to EU leaders on May 16, but senior Commission officials told the FT the final decision would be delayed until the autumn, possibly until October. The Commission wants to apply maximum pressure on EU applicants to meet high standards before they join, partly to assuage doubts in western Europe over the speed of enlargement.
José Manuel Barroso, European Commission president, has decided to delay by up to five months a decision on whether Bulgaria and Romania should join the EU in 2007, to assess whether they are serious about tackling corruption and organised crime. His biggest concerns are over Bulgaria, where police and judicial reforms have so far failed to yield high-level prosecutions of criminal bosses or crooked politicians.
Olli Rehn, EU enlargement commissioner, has praised Romania's progress but has called on Sofia to be "much more vigorous" on crime.
Mr Rehn had hoped to be in a position to recommend an entry date for both countries in a report to EU leaders on May 16, but senior Commission officials told the FT the final decision would be delayed until the autumn, possibly until October.
The Commission wants to apply maximum pressure on EU applicants to meet high standards before they join, partly to assuage doubts in western Europe over the speed of enlargement.
Tony Blair has conceded he will not serve a "full term" before standing down but rejected pressure from Labour MPs for him to announce his departure date. The Prime Minister told the Parliamentary Labour Party last night that he would give "ample time" to his successor to take over before the next general election. He denied he would damage Labour's prospects by hanging on too long, saying: "My legacy is a fourth term for Labour." Although two MPs, Andrew Smith and Geraldine Smith, urged Mr Blair to announce his departure timetable, most of those present appeared to welcome his assurances. There was growing speculation that he would quit in May next year after completing 10 years in Downing Street. After a packed, one-hour meeting, critics welcomed Mr Blair's shift away from his previous formula that he would serve a full term. "We have been eyeball-to-eyeball and the Prime Minister just blinked," one said. Earlier, Mr Blair had a meeting with Gordon Brown at Downing Street at which they held "talks about talks" on how to handle the succession and end the damaging infighting that has erupted since Labour lost more than 300 seats at Thursday's local elections.
The Prime Minister told the Parliamentary Labour Party last night that he would give "ample time" to his successor to take over before the next general election. He denied he would damage Labour's prospects by hanging on too long, saying: "My legacy is a fourth term for Labour."
Although two MPs, Andrew Smith and Geraldine Smith, urged Mr Blair to announce his departure timetable, most of those present appeared to welcome his assurances. There was growing speculation that he would quit in May next year after completing 10 years in Downing Street.
After a packed, one-hour meeting, critics welcomed Mr Blair's shift away from his previous formula that he would serve a full term. "We have been eyeball-to-eyeball and the Prime Minister just blinked," one said.
Earlier, Mr Blair had a meeting with Gordon Brown at Downing Street at which they held "talks about talks" on how to handle the succession and end the damaging infighting that has erupted since Labour lost more than 300 seats at Thursday's local elections.
Tony Blair abandoned his election promise to serve a full third term last night, indicating that he could stand down next summer. Although he refused to set a timetable for his departure, saying that it would paralyse government, he anointed Gordon Brown as his successor and promised to give him sufficient time to establish himself before the next election. As the Labour Party stood on the brink of civil war over the timing of the succession, the Prime Minister acknowledged that he could not go on to the end of his third term, which could last until 2009 or even 2010. He appealed to the party to calm down and trust him to "honour" his commitment to ensure a stable and orderly transition, "with the time plainly needed for my successor to establish himself". At a packed meeting of Labour MPs at Westminster, Mr Blair spoke of allowing his successor "ample" time, saying that he wanted his legacy to be a "fourth term for Labour". One of the MPs present said he expected Mr Blair to hand over to Mr Brown at the party conference in the autumn of 2007, giving the new leader 18 months to prepare for the next election. Although some MPs were critical of Mr Blair, party officials said the majority had been reassured by his promise to allow "plenty of time" for his successor.
Although he refused to set a timetable for his departure, saying that it would paralyse government, he anointed Gordon Brown as his successor and promised to give him sufficient time to establish himself before the next election.
As the Labour Party stood on the brink of civil war over the timing of the succession, the Prime Minister acknowledged that he could not go on to the end of his third term, which could last until 2009 or even 2010. He appealed to the party to calm down and trust him to "honour" his commitment to ensure a stable and orderly transition, "with the time plainly needed for my successor to establish himself".
At a packed meeting of Labour MPs at Westminster, Mr Blair spoke of allowing his successor "ample" time, saying that he wanted his legacy to be a "fourth term for Labour".
One of the MPs present said he expected Mr Blair to hand over to Mr Brown at the party conference in the autumn of 2007, giving the new leader 18 months to prepare for the next election. Although some MPs were critical of Mr Blair, party officials said the majority had been reassured by his promise to allow "plenty of time" for his successor.
This is Clinton-esque, ample has now become the "is". It depends on what the meaning is.
Given that Blair, via John Reid, has made plain his view that Brown is Old Labour, it is obvious that Blair will hang on and on waiting like Rapunzel for somebody else to let his hair down for. And if the tower rots around him, then so be it.
David Cameron must be beside himself with glee. keep to the Fen Causeway
Frontpage intro translation:
The Progidy of the Left Could Fall Into His Sword The air is getting thinner around Tony Bliar. This is not the first time there is rebellion against him in his party, but the politician admired abroad by many, for example [Hungarian PM] Ferenc Gyurcsány, won't be able to last much longer.
The air is getting thinner around Tony Bliar. This is not the first time there is rebellion against him in his party, but the politician admired abroad by many, for example [Hungarian PM] Ferenc Gyurcsány, won't be able to last much longer.
If Bliar's utterly disgusting stardom among European centre-left leaders could end, that will be the end of the Third Way 'New Left' and could lead to a continent-wide re-thinking. *Lunatic*, n. One whose delusions are out of fashion.
Italy's feuding politicians failed to elect a head of state yesterday as tensions rose between Romano Prodi's incoming centre-left government and the outgoing centre-right coalition of Silvio Berlusconi. Mr Prodi's coalition supports Giorgio Napolitano, 80, a former communist. Mr Berlusconi's coalition nominated Gianni Letta, 71, a former Berlusconi personal assistant
Mr Prodi's coalition supports Giorgio Napolitano, 80, a former communist. Mr Berlusconi's coalition nominated Gianni Letta, 71, a former Berlusconi personal assistant
The vexed question of what to do about the European constitution returns to the agenda this week. It's nearly a year since Dutch and French voters said No to the draft constitution, throwing the process into turmoil. Afterwards, the EU declared a "period of reflection". For the constitution's supporters, it was a time to examine the options: for its opponents, a time to put the constitution on ice. But now the period of reflection is drawing to a close, although there will be no formal decisions on a way forward until the first half of next year, when Germany takes over the rotating presidency of the EU. Commission proposal On Monday, a two-day forum on the future of Europe opened at the European Parliament in Brussels. It is addressing topics such as globalisation, justice and security, and Europe's place in the world. But its underlying theme is the constitution. On Tuesday, Estonia is expected to become the thirteenth of the 25 EU states to ratify. Finland is likely to follow suit, probably in the second half of the year, during its term in the EU presidency. Later in the week, the German chancellor, Angela Merkel, is expected to outline her policy on the EU and Germany's role within it, especially with regards to further enlargement.
It's nearly a year since Dutch and French voters said No to the draft constitution, throwing the process into turmoil.
Afterwards, the EU declared a "period of reflection". For the constitution's supporters, it was a time to examine the options: for its opponents, a time to put the constitution on ice.
But now the period of reflection is drawing to a close, although there will be no formal decisions on a way forward until the first half of next year, when Germany takes over the rotating presidency of the EU.
Commission proposal
On Monday, a two-day forum on the future of Europe opened at the European Parliament in Brussels. It is addressing topics such as globalisation, justice and security, and Europe's place in the world. But its underlying theme is the constitution.
On Tuesday, Estonia is expected to become the thirteenth of the 25 EU states to ratify. Finland is likely to follow suit, probably in the second half of the year, during its term in the EU presidency.
Later in the week, the German chancellor, Angela Merkel, is expected to outline her policy on the EU and Germany's role within it, especially with regards to further enlargement.
