Greece recession to enter 6th year, budget shows

October 01, 2012

ATHENS, Greece (AP) — Greece's brutal recession is set to extend into a sixth year in 2013, when the economy will contract by another 3.8 percent, according to forecasts in the draft budget submitted to Parliament on Monday.

This year's recession will see the economy shrink around 6.5 percent, the document estimated. Unemployment is predicted to rise to 24.7 percent in 2013 from an average 23.5 percent in 2012. The budget sees Greece's government still running at a loss despite waves of spending cuts and tax hikes over the past two years, as it has struggled to meet the terms for rescue loans from other eurozone countries and the International Monetary Fund.

The deficit for 2012 is expected to stand at 6.6 percent of GDP, improving slightly to 4.2 percent — or €8 billion ($10.3 billion) — next year, the document showed. Greece still has a primary deficit — which excludes interest rates paid on existing debt — of 1.4 percent of GDP this year, disappointing earlier forecasts for a surplus. That is expected to improve in 2013, when the budget projects a small primary surplus of 1.1 percent of GDP.

The budget includes about €7.8 billion worth of austerity measures for next year. They are part of a €13.5 billion package of spending cuts and tax hikes for 2013 and 2014 that Greece's international creditors have demanded in exchange for continued payout of the rescue loans that are protecting the country from a messy default.

Of the €7.8 billion in measures for next year, €3.8 billion are to come from pension cuts and €1.1 billion from salary cuts. Other cutbacks include trimming costs for healthcare, education and defense.

Finance Minister Yannis Stournaras submitted the draft budget to Parliament after talks with debt inspection teams from the IMF, European Central Bank and European Commission — known as the troika. Negotiations with the troika continue on the details of the two-year austerity package, meaning some of the details in the draft budget could be amended. Parliament usually votes on the budget in December.

As Stournaras met with the troika, a group of about 30 protesters, mainly from the small right-wing Independent Greeks party, gathered outside the finance ministry. "Bastards, the gallows are coming," they chanted.

Austerity talks involving the troika and three political parties backing Greece's four-month-old coalition government have dragged on for weeks, with disagreement over how the cuts will affect low-income Greeks suffering under recession.

Conservative Prime Minister Antonis Samaras, in a weekend newspaper interview, argued the country was showing its rescue lenders that it is serious about its reforms. "Our partners can see that changes are now happening," Samaras told the Sunday To Vima newspaper. "The first thing we must do is win back our damaged credibility ... Without credibility, you can't negotiate."

Nicholas Paphitis in Athens contributed.

Early returns show losses for Georgia ruling party

October 02, 2012

TBILISI, Georgia (AP) — Early returns and exit polls in a heated parliamentary election show that Georgian voters have turned against President Mikhail Saakashvili and the party that has been in power for almost nine years.

Saakashvili acknowledged that the popular vote on Monday went to the opposition Georgian Dream coalition led by billionaire businessman Bidzina Ivanishvili, whose supporters in the capital celebrated throughout the night.

But the president insisted that his party would retain its majority in parliament since nearly half of the seats are chosen in separate direct elections. The outcome will determine the future of Saakashvili's pro-Western government because of a constitutional reform that goes into effect next year giving the parliament greater powers at the expense of the presidency.

If Saakashvili's party loses, it would be the first time in Georgia's post-Soviet history that a government has been changed not through revolution but at the ballot box. Emotions were running high, and many feared that opposition supporters could turn angry if their victory proved short-lived. Both sides, however, are under pressure to prove their commitment to democracy and have promised to respect the results if the election receives the approval of international observers.

The Central Election Commission said a hacker attack on its website had delayed the release of the results. With 10 percent of precincts counted early Tuesday, Georgian Dream was leading in the popular vote for party list with 57 percent to 38 percent for Saakashvili's United National Movement.

An exit poll conducted by Edison Research gave a clear edge to the opposition, while a second by GfK had them running even but with 30 percent of people surveyed refusing to say how they voted. These polls, however, only registered the vote based on party lists, which is used to elect 77 of parliament's 150 members.

The remaining 73 members are directly elected by majority vote in their constituencies, where the president's party is considered to have the advantage in this mountainous nation of 4.5 million people on the Black Sea.

Speaking on television shortly after the polls closed, Saakashvili agreed that the opposition had won the party list vote, largely on the strength of its support in Tbilisi, the capital. Still, he insisted his party was far ahead in the direct elections in individual districts and would retain its majority in parliament.

He called on both sides to work together and leave behind a campaign that was "tense, emotional and unfortunately often dirty." Georgian Dream, however, said its exit poll showed it would win a majority of the parliament seats.

Tbilisi resounded late into the night with car horns and cheering as Georgian Dream supporters celebrated. Thousands gathered on Freedom Square, where they opened bottles of wine, sang songs and hugged one another. Cars drove through the city with young men hanging out of the windows and sunroofs, waving the party's blue flags.

Under Saakashvili, the former Soviet republic has aligned itself with the United States, while striving to join the European Union and NATO. Ivanishvili, who made his fortune in Russia, has said he would pursue these strategic goals while also seeking to restore the ties with Moscow that were severed when the two neighboring countries fought a brief war in 2008 over two breakaway Georgian provinces.

Saakashvili has accused Ivanishvili of serving Kremlin interests and intending to put Georgia back under Russian domination, which the opposition leader has denied. Saakashvili's campaign was hit hard by the release two weeks ago of shocking videos showing prisoners in a Tbilisi jail being beaten and sodomized. The government moved quickly to stem the anger, replacing Cabinet ministers blamed for the abuse and arresting prison staff, but many saw the videos as illustrating the excesses of his government.

The U.S. ambassador joined in the calls for a peaceful election. "I encourage the public to remain calm, have faith and be patient while all the results are counted and any challenges are properly evaluated," Ambassador Richard Norland said.

The opposition party had complained of violations during the campaign. Party spokeswoman Maia Panjikidze reported some isolated problems Monday but said the voting had been reasonably calm. Ivanishvili expressed confidence earlier Monday that his opposition coalition would win.

"For the first time in Georgian history the Georgian people are managing to conduct really democratic elections," he said. Many in the opposition accuse Saakashvili of authoritarian rule. "Without a doubt, Saakashvili and all of his people should leave," said Mamuka Gigienishvili, a 55-year-old physicist who voted in Tbilisi. "We have had enough of him acting like a czar."

She said the ruling party "labeled anyone with a different opinion a traitor ... as if only they were able to lead the country in the right direction." But Veriko Berishvili, a 49-year-old small business owner, noted all that Saakashvili had done to reform Georgia since coming to power. She specifically named the disbanding of the corrupt traffic police and creation of a modern force.

"I think we should allow this team to fulfill its promises: to improve the situation in agriculture, decide the problem of joblessness, universal health insurance," she said. "Now all of this is being handled by Prime Minister Vano Merabishvili. Look at his baby, the police force. It is the best in the former Soviet Union."

Saakashvili has taken a zero-tolerance approach to crime, which has eradicated petty corruption and made the streets safe again. The flip side has been a huge increase in the prison population and the power of prosecutors.

He also enacted reforms and attracted foreign investment that together has produced dramatic economic growth. Poverty and unemployment rates, however, remain high. Saakashvili came to power after anger over a rigged parliamentary election in November 2003 led to the Rose Revolution and the ouster of Eduard Shevardnadze, who had taken power in 1992 after a military coup. Saakashvili won a presidential election in January 2004 and was re-elected four years later. His United National Movement won 119 of the 150 parliament seats in the 2008 election.

Monday's vote sets in motion a change that will reduce the powers of the presidency. The party that wins the majority in parliament will name the prime minister. When Saakashvili's second and last presidential term ends next year, many of the president's powers will be transferred to the prime minister.

If Saakashvili's party wins on Monday, he has said he does not intend to become prime minister. Such a job swap would bring unwelcome comparisons to Russian President Vladimir Putin. Ivanishvili is not running for a seat in parliament, but has said that if his Georgian Dream coalition wins he would serve as prime minister at least for a year or two to put his team in place.

Protestants in Northern Ireland march peacefully

September 29, 2012

BELFAST, Northern Ireland (AP) — Thousands of Protestants marched peacefully through the heart of Northern Ireland's capital Saturday amid a heavy security presence.

It was one of Belfast's biggest parades in years, and police were deployed in large numbers to prevent street clashes between marchers and Northern Ireland's Catholic minority. Members of the various Protestant "loyal orders," so-called because they're loyal to Great Britain, trooped down Belfast's streets festooned with buttons, tassels and other ceremonial gear. The marchers banged drums and played music as they walked the six-mile (nine-kilometer) route from the capital's City Hall to Stormont, the seat of Northern Ireland's parliament.

Parade-goers carried the orange collarette, a small V-shaped sash worn around the neck. Many also came in the stern-looking dark sunglasses, black bowler caps and white gloves that have become synonymous with the marches.

At least two women chose a more relaxed uniform: Red-white-and-blue wigs and Union Jack dresses. The loud and colorful marches date back to the 19th century, and are a longstanding irritant between Northern Ireland's two main religious communities. The loyal orders see them as expressions of their culture and a testament to their faith. Many Catholics see them as aggressive and anti-Irish, and the marches can devolve into street fights, particularly when they pass through heavily Catholic areas.

There were no immediate reports of any unrest, and marchers passed a potential flashpoint on the parade route — St. Patrick's church near Belfast's city center — without incident. "They marched with dignity down the road," Father Michael Sheehan, the administrator of St Patrick's, said. "I think a degree of respect was shown that hasn't been shown before."

Nearly every aspect of the marches — from the parade route to the music played — is argued over and litigated by both sides, and a specially-created Parades Commission has been created to mediate between the two. The commission can, for example, re-route a parade around a potential flashpoint or demand that sectarian songs not be sung in certain areas.

The marches are steeped in Northern Ireland's messy history, and Saturday's parade, which had been expected to draw up to 30,000 people, is no different. The march finished at Stormont, with a cultural festival held to commemorate a 1912 proclamation against plans for home rule in Ireland.

Crowd estimates were not immediately available.

South Sudan-Sudan agree on oil but not border

September 28, 2012

ADDIS ABABA, Ethiopia (AP) — The presidents of Sudan and South Sudan signed economic and security agreements Thursday that will allow a resumption of oil exports from South Sudan. The two countries also reached deals for a demilitarized zone between their borders and a cessation of all hostilities that brought the countries to the brink of all-out war just a few months ago.

Sudan President Omar al-Bashir and South Sudan President Salva Kiir signed the agreement in Ethiopia's capital, where they have been holding talks since Sunday. The talks were originally scheduled to last only a day. The sides could not agree on a shared border or on how to address the disputed region of Abyei.

Both sides have been under pressure from the U.N. Security Council to resolve the outstanding issues or risk sanctions. South Sudan broke away from Sudan last year after an independence vote that was the culmination of a 2005 peace treaty that ended decades of war that killed more than 2 million people. But the border was never defined, and South Sudan suspended oil production in January after accusing Sudan of stealing its crude, which is transported in pipelines through Sudan. Border clashes escalated in April when South Sudan troops took over an oil town in a region Sudan claims as its own.

With the deal sealed Thursday, officials say only "technical works" remain for oil exports to resume soon. Some officials have said it will take months to clear the pipelines and get oil flowing again.

U.N. Secretary Ban Ki-moon welcomed the agreements, saying Sudan and South Sudan "have written a new page in their common history." He commended the two presidents "for again choosing peace over war" and said the agreements "provide important building blocks for a stable and prosperous future for both countries." He urged both countries to continue their efforts to resolve the dispute over Abyei through dialogue "and avoid any unilateral decisions that would risk a return to violence."

Ban spoke at a ministerial forum on Sudan and South Sudan on the sidelines of the U.N. General Assembly's annual high-level meeting that he co-chaired with the African Union. The forum's final communique commended the two presidents "for demonstrating constructive leadership and political will to reach agreements" and urged them to continue negotiations on Abyei and the disputed border areas.

The security agreement was signed by the two countries' defense ministers, while lead negotiators inked economic and trade agreements. AU mediators say the two sides also signed a deal to let their citizens freely move between, reside in and work in both countries.

Bashir and Kiir spent four days in an apparent effort to overcome the most contentious issues — finalizing a border and determining the status of the border region of Abyei — but failed. Kiir said Thursday was a great day in the history of the Sudan region, though he said the lack of an agreement over Abyei was Khartoum's fault.

"As to Abyei it is very unfortunate that we could not agree," he said. "My government and I accepted unconditionally the proposal of the AUHIP (the African Union High-Level Implementation Panel) . unfortunately my brother Bashir and his government totally rejected the proposal in its totality." Kiir said. He called on the African Union to resolve the dispute urgently and end what he called the continued suffering of the people of Abyei.

The top African Union mediator, former South African President Thabo Mbeki, called the agreement's signing "a giant step forward for both Sudan and South Sudan." Mbeki said a mediation panel work with the Peace and Security Council of the African Union to resolve the Abyei issue.

Mbeki said monitors would be deployed to oversee the agreed-upon buffer zone between the countries. "Monitors are already on standby, the equipment, helicopters and all of that is required for the purpose are also on standby. They are ready," Mbeki said.

In a sign of how closely the U.S. was watching the talks, President Barack Obama welcomed the agreement as soon as it was signed. Obama said the deal breaks new ground in support of two viable states at peace.

"The leaders of Sudan and South Sudan have chosen to take another important step on the path away from conflict toward a future in which their citizens can live in dignity, security, and prosperity. The United States is committed to working with both countries as they implement these agreements and as they seek to resolve those issues that remain outstanding. We are hopeful that today's deal can help spur broader progress on resolving the conflict in Southern Kordofan and Blue Nile, securing unfettered international humanitarian access in those areas, and bringing peace to Darfur," he said, referring to three regions in Sudan.

The freeze on oil production has cost both countries millions of dollars in lost revenue. An economic crisis sent inflation soaring and pushed food prices beyond the reach of ordinary citizens, said Jose Barahona, the top official for the aid group Oxfam in South Sudan, who called the agreements encouraging.

"But the two nations will continue to face an uncertain future until there is agreement on Abyei and the other contested areas, and efforts are stepped up to resolve the conflicts in Southern Kordofan and Blue Nile," he said, referring to two areas in Sudan where residents are seen to be sympathetic to South Sudan. Fighting in the region has sent 170,000 refugees fleeing over the border into South Sudan.

Samson Wasara , a professor of economics at Juba University in South Sudan, said the resumed oil exports — from which Sudan will take transport fees — would help ease tensions but that the new demilitarized buffer zone will provoke more conflict if the borders are not clearly defined. He noted that the demilitarized zone between North and South Korea has been a source of tension for decades.

"Proper border demarcation will reduce the chance of encroachment by both countries. But in order to do this, the international community must pressure Sudan and South Sudan to agree to something definite. If this is not sorted out quickly it will lead to later tension," Wasara said.

African Union mediator Thabo Mbeki, Ethiopia's Communications Minister Bereket Simon and diplomats witnessed the agreement's signing ceremony at the Sheraton Addis hotel. The ceremony started with a minute of silence for the late Ethiopian Prime Minister Meles Zenawi, whom Mbeki credited with being instrumental in facilitating the talks.

Associated Press reporter Michael Onyiego in Juba, South Sudan contributed to this report.

Russian NGOs defy law naming them 'foreign agents'

September 27, 2012

MOSCOW (AP) — Leading Russian non-government organizations said Thursday they would defy a new Kremlin law requiring those who receive funding from abroad to register as "foreign agents."

The heads of nine prominent NGOs have issued a joint statement saying they would ignore the law, which was approved by the Kremlin-controlled parliament over the summer in a bid to undermine the groups' credibility.

Failure to comply would bring fines of up to 5,000 rubles (about $150) for members, 50,000 rubles ($1,150) for the heads of these organizations and up to 1 million rubles ($31,000) for the organizations themselves. Anyone who continues to participate in organizations that violated the rules can be fined up to 300,000 rubles ($9,000) or sent to prison for two years."We survived the Soviet power, and we'll survive this," Lyudmila Alexeyeva, a Soviet-era dissident who heads the Moscow Helsinki Group, said Thursday. The law passed in July requires any NGO that receives foreign funding — from governments, groups or private citizens — and engages in vaguely defined political activity to register itself as a "foreign agent," provide detailed quarterly reports of its finances and identify itself as a foreign agent in any material it distributes.

The law is part of a package of repressive bills initiated by the Kremlin after President Vladimir Putin's inauguration for a third term in May. Putin has repeatedly accused the U.S. of staging major protests against his rule to weaken Russia. His claims played well with his core support group of blue-collar workers and state employees, many of whom remain suspicious of the West.

The supporters of the new law described it as a necessary shield against foreign meddling in Russian affairs. Alexander Sidyakin, one of the bill's authors, claimed during its passage that NGOs had "smeared" Russia's parliamentary and presidential elections last winter with "mud."

"We'll let citizens know whose megaphone this mud is crawling out of, and they can draw their own conclusions," he added. Alexeyeva and other rights activists also criticized a plan by Radio Liberty, a station funded by the U.S. government, to shift its broadcasts to the Internet, urging it to stay on the airwaves.

"We cannot lose a station with an active civil stance based on the universal values of freedom, democracy, and human rights," they wrote in a letter, adding that these values "are under attack from the Russian government."

Earlier this month, Moscow declared an end to the U.S. Agency for International Development's two decades of work in Russia, saying it was using its money to influence elections — a claim the U.S. denied.

And last week, parliament gave a quick preliminary approval to a new treason bill drafted by the main KGB successor agency that vastly expanded the definition of treason to include such activities as financial or consultative assistance to an international organization.

Lawmakers also gave the government sweeping powers to blacklist websites in July, ostensibly to combat child pornography. Last week, however, Russia's communications minister tweeted that the law could be used to shut access to YouTube over a U.S.-produced anti-Islam film that has provoked riots across the world.

The parliament is also considering making offending religious beliefs a criminal offense, punishable by up to five years in prison. The move follows a public outcry over the hooliganism conviction three members of feminist rock band Pussy Riot received in August for a "punk prayer" against Putin in Moscow's main cathedral.

Spain crisis fuels Catalan separatist sentiment

September 30, 2012

BARCELONA, Spain (AP) — Three weeks after a massive Catalan separatist march in Barcelona — the biggest since the 1970s — the independence flags still flutter from balconies across Spain's second largest city.

Spain's crushing recession has had this divisive consequence: soaring popular sentiment in Catalonia that the affluent region would be better off as a separate nation. On Thursday, regional lawmakers voted to hold a referendum for Catalonia's seven million citizens to decide whether they want to break away from Spain. The Spanish government says that the referendum would be unconstitutional. And it's unclear if the "Yes" vote would win — even in these restless times.

But it looks more likely than ever that Catalonia may ask to go its own way. "I have a big Catalan flag on the balcony. I put it up a week before the demonstration on Sept. 11 and it is still hanging there," said Gemma Mondon, 46, a mother of two. "I think we would be better off if we can manage our money. I think we would do much better."

Catalonia, a northeastern region that is historically one of Spain's wealthiest and most industrialized, has always harbored a strong nationalist streak. Separatism is especially entrenched in the rural towns and villages outside its more cosmopolitan capital Barcelona, where people switch between speaking Spanish and Catalan with ease and at times without even noticing.

In the peaceful transition from the Franco dictatorship to prosperous democracy, Catalans were content just to recover the freedom to openly speak, teach and publish in their own Catalan language, a right denied under Franco for over 30 years.

But now, generations-old grievances for more self-government and recognition of their culture are rising to the surface as the economic downturn bites. Many Catalans feel their quest for a sense for nationhood has been frustrated by the intransigence of the central government in Madrid. The most recent of these clashes came in 2010 when Spain's Constitutional Court weakened the Statute of Autonomy for Catalonia, a sweeping package of laws that devolved more power to the region and would have recognized Catalonia as a nation, albeit one within Spain.

Spain's slump, which has led to a spike in unemployment and harsh austerity cuts, has proven to be the tipping point for many Catalans who used to be against or ambivalent about seeking their own state.

Mondon, who works for a family run real estate management firm, said that just over a year ago she voted "No" in a nonbinding referendum organized by pro-independence groups. Now, she says she has changed her mind.

"I always felt Spanish and Catalan and I never had the urge to be independent. A year ago I just wanted to be left alone to speak my language and raise my children in a Catalan school," said Mondon. "My attitude was 'don't bother me,' but now that has changed."

Catalonia will go to the polls on Nov. 25, with regional president Artur Mas' center-right nationalist party Convergencia i Unio expected to increase its hold of the regional parliament. Mas has said he will hold a referendum on Catalonia's self-determination, whether the Spanish government permits it or not. The date has yet to be set.

"If the Spanish government authorizes (the referendum), more the better," said Mas. "If the Spanish government turns its back on us and doesn't authorize a referendum or another type of vote, well, we will do it anyway."

Spanish Prime Minister Mariano Rajoy insists the country's constitution doesn't allow a region to secede on its own, and experts say it would be virtually impossible for Catalan separatists to get it changed. Spain's Basque region, the other part of the country with a strong separatist movement, tried to get such a move approved in Parliament in 2005 but failed.

"It's not a scenario planned by the constitution," said Francisco Perez-Latre, a communications professor at the University of Navarra who has closely monitored the Catalan independence movement for years.

The new political uncertainty about the economically important region and major tourism destination is unsettling for investors already worried about Rajoy's ability to keep his country's shaky economy afloat, and within the euro currency club.

There are also doubts about how well-equipped Catalonia would be to go it alone. Catalonia, sitting on its own mountain of debt, has in fact asked Spain for a €5.9 billion bailout. But many Catalans argue that the region is only heavily indebted because it has to pay more than its fair due in taxes compared to services and funding it gets in return. Spain's other better-off regions also give more than they receive. Rajoy, however, has emboldened Catalan separatists by flatly rejecting demands for more power in levying tax revenues and deciding how it is spent, privileges granted to two other Spanish regions: the Basque Country and Navarra.

Rajoy's stance has combined with Spain's gloomy prospects to push Catalans who never wanted to break away from Spain before to conclude that the country itself is a failure. "I put the Catalan flag on my balcony for the first time. Normally, I have been very discreet with my political ideas. But I think now I have to go a step further," said architect Albert Estanyol, 48, whose mother came from southern Spain. "Before, when asked about independence, I would say 'Why?' Now, I say, 'Why not?'"

Catalonia has over 800,000 unemployed, almost 22 percent of its population. That's slightly lower than Spain's national jobless rate, but the back-to-back recessions have been particularly hard on young workers in Catalonia. Since 2007, over 100,000 Catalans under 25 have lost their jobs, and the unemployment rate for workers under 25 has skyrocketed to over 50 percent, close to the national level for the same age bracket.

"I have looked for work. Since I was 18 I have had six or seven jobs, they have all been unstable, poorly paid, like filling in for two weeks at IKEA. They have had nothing to do with what I studied," said Roger Cervino, a 23-year-old who holds a degree in history.

"The economic situation is bad and one of the solutions to ending the crisis is secession. It would be complicated, but Catalonia has the capacity to reach full employment," he said. "What stops it is Spain, and above all the Spanish government, which has been a disaster."

Alan Clendenning contributed from Madrid.

Madrid anti-austerity protests turn violent again

September 30, 2012

MADRID (AP) — Tens of thousands of Spaniards and Portuguese rallied in the streets of their countries' capitals Saturday to protest enduring deep economic pain from austerity measure, and the demonstration in Madrid turned violent after Spaniards enraged over a long-lasting recession and sky-high unemployment clashed with riot police for the third time in less than a week near Parliament.

The latest violence came after thousands of Spaniards who had marched close to the Parliament building in downtown Madrid protested peacefully for hours. Police with batons later moved in just before midnight to clear out those who remained late because no permission had been obtained from authorities to hold the demonstration.

Some protesters responded by throwing bottles and rocks. An Associated Press photographer saw police severely beat one protester who was taken away in an ambulance. Spain's state TV said early Sunday that two people were hurt and 12 detained near the barricades erected in downtown Madrid to shield the Parliament building. Television images showed police charging protesters and hitting them with their batons, but the violence did not appear as severe as a protest on Tuesday when 38 people were arrested and 64 injured.

Earlier, the boisterous crowds let off ear-splitting whistles and yelled "Fire them, fire them!" — referring to the conservative government of Prime Minister Mariano Rajoy, and venting their anger against tax hikes, government spending cuts and the highest unemployment rate among the 17 nations that use the euro currency.

On Friday, Rajoy's administration presented a 2013 draft budget that will cut overall spending by €40 billion ($51.7 billion), freezing the salaries of public workers, cutting spending for unemployment benefits and even reducing spending for Spain's royal family next year by 4 percent.

Pablo Rodriguez, a 24-year-old student doing a master's in agricultural development in Denmark, said the austerity measures and bad economy mean most of his friends in Spain are unemployed or doing work they didn't train for.

He plans to work abroad after graduating and doubts he will put his education to use in Spain until he is at least 35 or 40, if ever. "I would love to work here, but there is nothing for me here," Rodriguez said. "By the time the economy improves it will be too late. I will be settled somewhere else with a family. One of the disasters in Spain is they spent so much to educate me and so many others and they will lose us."

Madrid authorities put the number of protesters at 4,500 — though demonstrators said the crowd was larger. In neighboring Portugal, tens of thousands took to the streets of Lisbon Saturday afternoon to peacefully protest against even deeper austerity cutbacks than Spain has imposed.

Retired banker Antonio Trinidade said the budget cuts Portugal is locked into in return for the nation's €78 billion ($101 billion) bailout are making the country's economy the worst he has seen in his lifetime. His pension has been cut, and he said countless young Portuguese are increasingly heading abroad because they can't make a living at home.

"The government and the troika controlling what we do because of the bailout just want to cut more and more and rob from us," Trinidade said, referring to the troika of creditors —the European Commission, the European Central Bank and the International Monetary Fund. "The young don't have any future, and the country is on the edge of an abyss. I'm getting toward the end of my life, but these people in their 20s or 30s don't have jobs, or a future."

In Spain, Rajoy has an absolute majority and has pushed through waves of austerity measures over the last nine months — trying to prevent Spain from being forced into the same kind of bailouts taken by Portugal, Ireland and Greece. But the country has an unemployment rate of nearly 25 percent, and the jobless rate is more than 50 percent for those under age 25.

Investors worried about Spain's economic viability have forced up the interest rate they are willing to pay to buy Spanish bonds. The country's banks hurting from a property boom that went bust are set to get help soon from a €100 billion ($129 billion) financial lifeline from the eurozone, and Rajoy is pondering whether to ask for help from the ECB to buy Spanish bonds.

Finance Minister Cristobal Montoro said Saturday that the budget cuts for next year were necessary to ease market tensions and try to bring down high interest rates Spain must pay to get investors to buy its bonds.

Associated Press photographer Andres Kudacki in Madrid and television producer Yesica Fisch in Lisbon, Portugal, contributed to this report.

Militias that Fought Qaddafi Now Targeted by Libyans

by Michel Stors
Sunday, September 30, 2012

Embarrassed by attack on US Consulate, Libyans want militias gone but acknowledge their role

Muhammad Imran grimaced as he pushed his thumb firmly into his chin. The discomfort did not seem to bother him though. Standing in front of the charred remains of the US Consulate in Benghazi in which four Americans died on September 11th, he felt a sense of embarrassment. “The United States did so much for us during our revolution,” he said shaking his head. “It’s not right that we pay them back like this.  It’s just not right.”

Throughout Benghazi, residents alternate between feelings of shock and shame. They mourn the death of American Ambassador Chris Stevens, an accessible diplomat who held court at local hotels. They are uneasy with all the negative attention their country is receiving after the international media showered it with praise during the 2011 revolution. But more than that, they seek answers about an attack that not even Washington can provide.

Hours after the consulate attacks, Libyans began grieving for Stevens. Many changed the lead picture on their Facebook pages to display American flags and photos of the slain ambassador. They posted messages expressing their outrage. “We want all the Americans to know that we cry with them,” Nusayba Himalik said on the corniche within ear shot of the Mediterranean Sea.

But Benghazi’s citizens did more than speak out. Last Friday, they organized a march to protest the killings and to condemn the militias that control the city and dole out arbitrary justice. Around 30,000 people poured into the streets carrying signs that read, “No to killing foreigners. No to groups outside the law.” Parents brought their children as the elderly slowly dragged their canes through the streets. “Libya belongs to us,” Ahmad Kikhia shouted as others clapped approvingly. “We won’t let the extremists control our country.”

Although the event’s organizers had merely planned a visible protest against the militias, the demonstrators had other ideas. Participants in the march descended on militias’ bases, torched buildings, chased fighters away and carted off their rifles. The main brigade the protesters targeted belonged to Ansar Al-Shari’a, the group believed to be behind the consulate attack. “These fanatics won’t scare us anymore!” screamed Imad Boughniyya as the flames engulfed the building behind him.

Benghazi is a small city with a tiny downtown area. Its 630,000 residents spend most of their time among their close knit families.  Nightlife is limited to cruising down the city’s few boulevards and male-only parties on rural farms. A few colonnades and old domes are all that remains from the three decades during which Italian colonialists controlled the country. Benghazi is a sleepy town that no one here seems to mind.

The day after ‘Libya’s second revolution’ as people here call it, a leader of a large militia that was spared the violence of the night before took stock of events. “People want to blame us for a few rotten apples,” the man known as Abu Yahya, referring to rogue militias that have harassed Libyans, told The Media Line. Like many of the men who took up arms during the revolution, he was a civilian. “We fought to get rid of (Libyan leader) Mu’ammar Al-Qaddafi. We protected Libyans and now they want us gone.”

Disbanded is exactly what Jabir Hamid wants of the militias. He has grown tired of the nightly celebratory gun fire and the pickup trucks with anti-aircraft guns rumbling through the city. “The war is over. They should go home,” he says as he stops to buy a pack of cigarettes. “We didn’t fight a revolution against Qaddafi and his cronies to have new warlords.”

But Abu Yahya scoffs at the belief that the militias can disband overnight. He asks, “Who will provide the security against Qaddafi supporters?  And who will arrest the guys behind the consulate attack?” It is a dilemma many here have sought to avoid confronting. The security services are too weak and disorganized and are largely unable to carry out their tasks. And they are neither in a position to arrest those suspected of planning the consulate attack nor able to provide American investigators the necessary security to investigate it. “We promised Libyans we would create a new country they could be proud of,” a member of the former interim government told The Media Line. “But we haven’t changed anything and have nothing to tell Libyans.”

And answers are what they want most. But with American investigators unable to work in the consulate to piece together clues and other intelligence officers pulled for lack of security, it will be a long time before Libyans learn who exactly was behind the lethal attack that took the life of a man they admired for his love of their country.

Copyright © 2012 The Media Line. All Rights Reserved.

Jordan's Salafis Turn Guns on Assad Forces

by Adam Nicky
Thursday, September 27, 2012

Dozens Cross the Border to Fight for Syrian Rebels

As the war to topple Syrian President Bashar Al-Assad grinds on, an increasing number of Islamist fighters are trickling across Jordan’s porous border into Syria to fight alongside rebel forces. Leaders from the Salafi movement, who adhere to strict Islamic teachings, say the fighting in Syria has become sectarian, and they must now get involved.

President Assad is a member of the Alawite movement, a branch of Shi’ite Islam, and he is being supported by Iran and Hizbullah, both Shi’ite-majority movements. The Salafis say they are helping the rebels, who represent the majority of Sunnis in Syria. 

“The Shi’ite versus Sunni conflict raised the alarm among hardliners and young Salafis that the Shi’ite crescent is casting its shadow on Jordan,” Hassan Abdel Rahman, a Salafi cleric from the eastern city of Russeifa told The Media Line. “They fear the tsunami of the Iran-Syria-Iraq triangle is coming to the kingdom sooner rather than later. The war in Syria is no longer an issue of freedom; it’s an issue of existence between Sunnis and Shi’ites.”

Jordan, a monarchy, is overwhelmingly Sunni with government statistics showing a Shi’ite population of  just two percent.

Several Salafi leaders have issued a fatwa, or religious decree, calling for jihad (holy war) in Syria and commanding followers to join ranks.

“Conditions of jihad have been fulfilled in Syria,” said Abu Sayaf, an influential Salafi from the southern Jordanian city of Ma’an said days after a celebration of the “martyrdom” of a Salafi fighter killed in Hama. “Those who die in Syria will be martyrs in the name of Allah.”

Abu Sayaf said he is urging his followers to cross the border into Syria and help the rebels.

“The conflict started in a peaceful manner and then became an armed conflict,” Abu Sayaf told The Media Line. Referring to reports that Iran’s proxy force, Lebanon-based Hizbullah, is now fighting alongside Al-Assad’s troops, he said that, “Now, with Iran and Hizbullah involvement, the Syrian rebels need the support of their Sunni brothers around the world.”

The Salafi said that more than 100 fighters had already traveled to fight in Syria. Jordan has stepped up security along its border with Syria and several fighters have been arrested trying to cross the border. Yet, Jordan does not seem concerned that these Salafis could pose a threat to the Jordanian government.

“We have seen fighters leaving to Afghanistan, Iraq and other countries, but they have never posed a threat to Jordan,” analyst Hassan Hanya told The Media Line. “I don’t see any difference in the Syria case.

A former Salafi fighter, Abu Omar, told The Media Line that Jordanian authorities would prefer that Salafi fighters leave Jordan to fight abroad rather than remain in Jordan where they could be a destabilizing force. Analyst Hanya explained that Jordan is more concerned that the Salafis try to become involved in the political process in Jordan, as they have done in several other countries. In Egypt, Salafis won 20 percent of the seats in parliament in the first democratic election.

“Salafis want to emulate the experience of their compatriots in Egypt and North Africa by entering the political fighting ring and this is more worrying to authorities than security issues,” he said.

Salafis also oppose the entry of any foreign troops into the region. That is a particular challenge to Jordan, a key US ally, which hosts large numbers of foreign forces. Jordan also receives nearly one-half billion US dollars in military aid from Washington and works closely with the American government and military. Jordanian officials worry that Salafis could try to pressure the government to force American troops out of Jordan.

Copyright © 2012 The Media Line. All Rights Reserved.