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In Ukraine standoff, echoes of US-Russia Cold War tensions

By - Feb 12,2014 - Last updated at Feb 12,2014

WASHINGTON — After Russian President Vladimir Putin visited Ukraine last July, US diplomats got a private recap of the message he delivered behind closed doors to the country’s leaders. Ukraine, Putin warned, would not be allowed to stray from Moscow’s orbit.

Putin’s blunt talk was an unexpected sign of how hard Moscow would fight Western influence on Ukraine, US officials say, prompting Washington and European capitals to step up their engagement with the Ukrainian government and opposition forces.

Seven months later, the United States and Russia are locked in a Cold War-style test of wills over the strategically located country of 45 million that has been racked by anti-government protests and sporadic violence.

US-Russia tensions and mutual accusations of meddling are making it more difficult to find a solution in Ukraine, where the US fears violence may escalate, and is one of the clearest signs yet that US President Barack Obama has made scant progress improving relations with Washington’s former adversary.

In Ukraine, former US officials and analysts say, Russia holds most of the cards, including close proximity, energy supplies that Kiev depends on and a promised $15 billion bailout it has used to woo Ukrainian President Viktor Yanukovich away from an EU trade deal.

Obama, reluctant to act assertively in what Russia has long considered its sphere of influence, has limited direct leverage and few good options.

But Washington has decided to use the Ukraine crisis to take a stand, at least diplomatically, against what the White House regards as a “worrying and troubling” pattern of Russian behavior toward its neighbors, a senior US official said.

“Ukraine is going to be a test” of improved US-Russian relations, said the official, who was not authorised to talk publicly. The administration has a realistic understanding of what is possible with Russia, after early enthusiasm about the possibility of working together. “We understand the shape and the dimensions of the Russia we’re dealing with, and it makes it tougher to find that cooperation.”

The more activist American policy was unintentionally on display last week in the leaked secret recording of a phone conversation between Assistant Secretary of State Victoria Nuland and US Ambassador to Ukraine Geoffrey Pyatt.

The two are heard speaking intensely about the formation of an interim, reform-minded government and treating Moscow like an adversary. “You can be pretty sure that if [a deal for a new government] does start to gain altitude the Russians will be working behind the scenes to try to torpedo it,” Pyatt says.

US officials have not directly blamed the leak on Russia, which has denied its involvement. But the audio clip was first posted on Twitter by Dmitry Loskutov, an aide to Russian Deputy Prime Minister Dmitry Rogozin, a diplomatic source said.

The leak also revealed US-European tensions over how assertive to be in the crisis, with Nuland dismissing what American officials regard as the EU’s cautious approach with profanity.

US officials say the damage to trans-Atlantic relations was fleeting and that polls taken in the days since show a rise in Ukrainians’ approval of the United States.

The ‘reset’ button is off

The officials say they are trying to avoid any direct confrontation with Russia over Ukraine and despite veiled threats from Moscow see little chance of Russian military intervention there.

But privately, some describe Putin’s determination to keep Ukraine in Moscow’s orbit in stark terms, worrying it suggests a desire to redraw European borders and reopen agreements reached after the Soviet Union’s 1991 collapse.

Obama’s attempt to “reset” relations with Russia in his first term, while it had some successes including a new nuclear arms reduction deal and cooperation on Afghanistan, never produced enduring trust.

Washington and Moscow are at loggerheads over Syria, where Russia backs President Bashar Al Assad. The two countries are also at odds over Putin’s crackdown on internal dissent and US missile defense plans, which Russia feels threatens its national security. The relationship was further strained when Russia granted asylum to former US National Security Agency contractor Edward Snowden, who leaked classified documents that have caused both security concerns and political problems for Obama.

Obama, in a joint White House news conference with French President Francois Hollande on Tuesday, took a swipe at Moscow for what he said was its blocking of measures to help starving civilians in Syria’s three-year-old civil war.

For the Sochi Winter Olympics, which Putin is touting as a major milestone in Russia’s post-Soviet revival, senior US officials stayed home. Obama’s delegation contained prominent gay American athletes, a diplomatic rebuke to Russian laws such as one that bans so-called gay propaganda.

Thomas Graham, who was senior Russia adviser to President George W. Bush, said the Obama administration is trying to show friends and foes that it is relevant in Eastern Europe at a time when US-Russia relations have deteriorated.

“The administration felt that it had to stand up and show that it had a spine on these issues,” Graham said.

But he and others said the United States is not in a strong position to influence the outcome of the Ukrainian crisis.

“The strength of motivation is on the Russian side,” said Steven Pifer, a former US ambassador to Ukraine now at the Washington-based Brookings Institution think tank.

“It’s a hard problem”, Pifer said. If the United States and EU promised cash-strapped Ukraine $15 billion, “Putin would say fine, here’s $25 billion. He’s in a position to outbid us on this one.”

US officials say they have levers of their own. Brussels and Washington have tried to sway Yanukovich with a trade deal with the EU, the world’s largest market, and promises of billions of dollars in International Monetary Fund loans if Ukraine undertakes economic reforms.

Yanukovich is under pressure from street demonstrators, many of whom want Ukraine to have a European, not Russian, orientation.

Although Europeans are unenthusiastic, the US government is also considering expanding sanctions against individuals responsible for violence against the protesters who have occupied Kiev’s Maidan square since late November.

No country in six months?

The protests have spread from Kiev to other parts of the country. US engagement accelerated after the crisis turned deadly on January 22, current and former US officials, and a congressional aide said.

Nuland met Yanukovich in Kiev late last week to urge a de-escalation of tensions and constitutional reforms, reflecting US fears that Ukraine could be engulfed in countrywide civil unrest if the crisis is not solved.

The US diplomat is said to have replied to Yanukovich’s proposal for a six-month time frame to study constitutional reforms by warning him that, in six months, he might not have a country to govern.

This is an argument that Washington is also making to Russia as it seeks to overcome Putin’s view of Ukraine as a zero-sum game in which Kiev’s greater economic engagement with the West can only come at Moscow’s expense.

US officials fear, however it will fall on deaf ears. Putin sees Ukraine as crucial to his dream of a Eurasian customs union to rival the EU and the United States.

“Putin lays out an agenda for wanting to sit at the table with the other great powers” but then reverts to “throwback” policies toward former Soviet satellites, the senior US official said. “The Russian leadership wants to have its cake and eat it too.”

Storm, bringing deadly ice and snow, slams US southeast

By - Feb 12,2014 - Last updated at Feb 12,2014

ATLANTA — A deadly winter storm brought heavy snow, freezing rain and a possibly historic accumulation of ice to the southeastern United States on Wednesday, causing hundreds of thousands of power outages and treacherous driving conditions, meterologists said.

The worsening storm stretched from eastern Texas to the Carolinas and was likely to reach the Middle Atlantic states by late Wednesday, National Weather Service meteorologist Roger Edwards said.

Power outages spread rapidly as temperatures dropped.

More than 110,000 Georgia Power customers were without electricity on Wednesday, with most outages reported in metropolitan Atlanta. Some customers may have to wait up to a week for power to be restored, said Georgia Power spokeswoman Amy Fink.

“It does appear that the storm could have an even greater impact than we originally had predicted,” she said.

The wintry mix had already caused two weather-related traffic deaths in Mississippi and three in northern Texas earlier in the week, authorities said. The state Highway Patrol in South Carolina had responded to 273 weather-related calls for service overnight.

Nearly 3,000 US flights were cancelled and hundreds more delayed early on Wednesday, according to flight-tracking website FlightAware.com.

Hartsfield-Jackson International Airport in Atlanta was hardest hit, with more than 800, or 69 per cent of flights, cancelled, FlightAware.com said. Delta Air Lines and AirTran, the two dominant carriers there, had the most cancellations as of Wednesday morning.

“Atlanta is all but shut down. None of our approximately 155 departures scheduled for today is operating,” said spokesman Brad Hawkins of Southwest Airlines, which operates AirTran.

Up to 2 cm of ice was expected in a broad section of Georgia, including metropolitan Atlanta. Some areas could see more than 2.5 cm.

The Interstate 20 corridor from north central and northeastern Georgia into South Carolina would be among the hardest hit by icy conditions, said meteorologist Edwards.

Snowfall totals were expected to be unusually high in the region, with nearly 20.3 cm forecast for Charlotte, North Carolina and 22.9 cm for Spartanburg, South Carolina. Parts of the state, from the mountains to the coast, had already seen heavy snowfall.

“It is going to be a tough 48 hours,” said North Carolina Governor Pat McCrory, noting that toppled trees and downed power lines were likely to create hazardous travel conditions.

Edward Clay, 40, who lives in Greer, South Carolina, decided against driving to Asheville, North Carolina, for his job as a construction project superintendent, even though snow flurries were just beginning.

“I could get to Asheville easy,” he said. “Getting back to South Carolina is the problem. It’s going to be an all-around bad day to be on the road.”

Government officials were quick to make plans to deal with the impact of the storm, following another two weeks ago that paralysed Atlanta-area roads and forced more than 11,000 students in Alabama to spend the night at their schools.

Hundreds of schools and government offices across the South were closed on Wednesday, and shelters were opened in Georgia and Alabama to help those stranded by the storm.

Conditions deteriorated overnight as a swath of the Deep South, from Alabama through South Carolina, was deluged with rain, sleet and snow, Edwards said.

A tractor-trailer carrying milk jack-knifed on Interstate 285 around Atlanta early on Wednesday, said state transportation department spokeswoman Natalie Dale.

Overall, the traffic volume was light.

“People really seem to be heeding the warnings and staying off the roads,” Dale added.

The last significant ice storm in Georgia was in January 2000, when up to 1.3 cm of ice left more than 350,000 people without power, weather service meteorologist Dan Darbe said.

With the latest storm, “we’re talking a much larger area and a much larger amount of ice”, he said.

Winter storm watches reached into the Northeast, where heavy snow and possible ice was expected as the storm moved up the eastern seaboard on Thursday.

Toyota recalls 1.9 mn Prius cars worldwide

By - Feb 12,2014 - Last updated at Feb 12,2014

TOKYO — Japanese auto giant Toyota said Wednesday it was recalling 1.9 million of its Prius hybrid cars around the world because of a fault that might cause the vehicle to slow down suddenly.

The company said there was a problem with software used to control a power converter.

"In limited cases, the hybrid system might shut down and the vehicle will stop, perhaps while being driven," it said in a statement.

The world's biggest automaker added that the most likely scenario is that the defect could set off a vehicle's warning lights and "probably" cause it to enter "failsafe mode", in which the car can still be driven but with reduced power.

"The car may stop while driving, but not suddenly," said a Tokyo-based company spokeswoman. "It would slow down, eventually to stop."

Toyota was aware of more than 400 cases of the problem, including 300 in Japan and 90 in North America, she said, adding that no accidents had been reported due to the defect.

Toyota and other Japanese automakers have been hit by a series of mass recalls in recent years that damaged their long-held reputation for quality and safety.

 

China and Taiwan hold historic talks

By - Feb 11,2014 - Last updated at Feb 11,2014

NANJING, China — China and Taiwan on Tuesday held their first government-to-government talks since they split 65 years ago after a brutal civil war — a symbolic yet historic move between the former bitter rivals.

Taipei’s Wang Yu-chi, who oversees the island’s China policy, met his Beijing counterpart Zhang Zhijun in Nanjing on the first day of a four-day trip.

With sensitivities crucial, the room was neutrally decorated with no flags visible and nameplates on the table devoid of titles or affiliations.

The meeting was the fruit of years of slow efforts to improve political ties on the back of a burgeoning economic relationship.

“Both sides should make up our minds to never let cross-strait relations again become tormented and never go backward,” Zhang said, according to the official Xinhua news agency.

“I believe that as long as we walk on the right road of peaceful development we should and certainly can get closer in the future.”

Separately, Taipei’s Mainland Affairs Council (MAC) said in a statement after the meeting that Wang officially invited Zhang to visit the island “to develop a deeper understanding of Taiwan society and the conditions of its people”.

Nanjing, in eastern China, was the country’s capital when it was ruled by Wang’s Kuomintang, or Nationalist Party in the first half of the 20th century.

When they lost China’s civil war — which cost millions of lives — to Mao Zedong’s Communists in 1949, two million supporters of the Nationalist leader Chiang Kai-shek fled to Taiwan, officially known as the Republic of China.

The island and the mainland have been governed separately ever since, both claiming to be the true government of China and only re-establishing contact in the 1990s through quasi-official organisations.

But Beijing’s Communist authorities still aim to reunite all of China under their rule, and view Taiwan as a rebel region awaiting reunification with the mainland — by force if necessary.

Over the decades Taipei has become increasingly isolated diplomatically, losing the Chinese seat at the UN in 1971 and seeing the number of countries recognising it steadily whittled away. But it is supplied militarily by the United States and has enjoyed a long economic boom.

No official agenda was released for the talks — widely seen as a symbolic, confidence-building exercise — and Wang said earlier he would not sign any agreements.

Taiwan was looking to promote communication on culture, education, sciences and other subjects, according to the Taiwanese statement, while analysts say China has one eye on long-term integration of the island.

Detente and differences

The political thaw comes after the two sides made cautious steps towards economic reconciliation in recent years.

As the heirs of a pan-Chinese government, Taiwan’s ruling Kuomintang Party accepts the “One China” principle and is opposed to seeking independence for the island.

Since it returned to power on the island in elections in 2008, President Ma Ying-jeou has overseen a marked softening in Taiwan’s tone towards its giant neighbour, restoring direct flights and other measures.

In June 2010 Taiwan and China signed the landmark Economic Cooperation Framework Agreement, a pact widely characterised as the boldest step yet towards reconciliation.

Yet despite the much-touted detente, Taipei and Beijing had until Tuesday shunned all official contact, with negotiations carried out through proxies.

While the bodies — the quasi-official Straits Exchange Foundation representing Taiwan and the Association for Relations Across the Taiwan Straits for China — have achieved economic progress, they lack the power to broach deeper differences.

Analysts say only government-level officials can address the lingering sovereignty dispute that sees each side claiming to be the sole legitimate government of China.

The two sides agreed to set up a communication system between the MAC and Beijing’s Taiwan Affairs Office, the Taiwanese statement said, but there was no mention of any potential meeting between Ma and his Chinese counterpart Xi Jinping.

“The current interaction across the Taiwan Strait is quite positive,” said Jia Qingguo, a professor of international studies at Peking University.

Ties have “been developing very fast, but the potential of this relationship has not been fully tapped [by] both sides,” he said.

“But people should not expect too much out of it. It will take time for the two sides to get really integrated.”

Homes swamped, transport chaos as floods take toll in England

By - Feb 11,2014 - Last updated at Feb 11,2014

LONDON — Hundreds more homes risked being swamped by floods in southeast England on Tuesday after the River Thames burst its banks and one of the country’s busiest rail routes was severely disrupted.

Affluent towns and villages along the Thames to the west of London have been transformed into lagoons, and the government faced more criticism of a lack of preparedness after a month of floods misery across England.

More than 1,000 people have been forced to flee their homes this month following the wettest January since 1766, and the situation was set to worsen with heavy rain and storms on the way by Friday.

Flooding first hit the largely rural county of Somerset but has now engulfed towns and village along the swollen Thames, encroaching on London.

In a sign of the frustration, Defence Minister Philip Hammond was confronted by an angry resident in Wraysbury, a village beside the Thames where floodwaters have risen fast since the weekend.

Su Burrows, a volunteer flood warden, said the relief effort had been left to residents like her and pleaded with Hammond for military help to distribute sandbags.

“I’m sorry, I am going to get emotional. There are 100 people of this village currently working together, none of them agents, not one,” she told Hammond in the testy exchange on Sky News television.

“We have been working for 48 hours evacuating people, risking our own lives going into waters that would be over my head,” she said.

“What will it take for you to understand we are seriously in need?”

Hammond assured her that a combined military and police operation had been launched to deliver sandbags, and told her: “I thought they would be here by now.”

He said 1,600 armed forces personnel were on standby to assist.

Hammond earlier insisted that the government “has got a grip on this” but cautioned that authorities cannot “prevent the course of nature”.

He told BBC radio: “We are dealing with an enormous force of nature here, vast quantities of water, an unprecedented weather pattern and, while the authorities can and must do everything that is possible, there are some things I’m afraid that we just can’t do.”

Residents have complained that their vacant homes have been looted. Many houses in Wraysbury and neighbouring villages are worth over one million pounds (1.2 million euros, $1.65 million).

Insurers said overall claims had already exceeded £500 million and the bill would rise fast.

Tens of thousands of commuters had their journeys disrupted as services from London Paddington station to the key commuter town of Reading to the west were heavily disrupted along the waterlogged track.

On the southwest coast, Prince Minister David Cameron saw for himself the damage to the railway line at Dawlish in Devon, caused by massive waves crashing against the coastline.

Train services to southwest England have been cut off by the damage to the track.

Cameron warned it was “going to take time before we get things back to normal”.

“It is a huge challenge and we have had the wettest start to a year for 250 years, some of the most extreme weather we have seen in our country in decades,” he said.

Swiss move to limit damage after EU migrant curb vote

By - Feb 10,2014 - Last updated at Feb 10,2014

GENEVA — Reeling Monday from a vote to cap EU immigration, Switzerland’s government and business community moved to limit the damage to trade ties with the big European bloc.

Foreign Minister Didier Burkhalter played down talk of a “Black Sunday” in ties with Brussels, after 50.3 per cent of voters backed a referendum proposal to end a seven-year-old pact that gave equal footing to most EU citizens in the Swiss labour market.

“We need to avoid that kind of language,” he told reporters.

“Switzerland is not going to rip up its deal with the EU on freedom of movement,” he insisted.

Yet that assertion butted up against a so-called “guillotine” clause in a package of deals with EU that said that, if one deal is voided, the others collapse too.

The other deals have to do with issues such as trade between the EU members and non-member Switzerland.

Brussels says it will now scrutinise all EU-Swiss relations as a result of the vote.

The government opposed the “Stop Mass Immigration” proposal — masterminded by the rightwing populist Swiss People’s Party — but the people have the last word on a huge range of issues in the country’s direct democracy.

The party argues that with 80,000 EU citizens arriving per year — more than the 8,000 predicted before the rules were liberalised in 2007 — the nation of eight million people must apply the brakes.

It claims that EU migrants undercut Swiss workers’ salaries, and that overpopulation has driven up rents, stretched the health and education systems, and overloaded the road and rail networks.

While Switzerland has long had a sizable foreign population, over recent years the proportion has climbed from one-fifth to roughly a quarter.

The voted-in measure requires authorities to revive rules that fixed quotas per business sector for work permits that can be issued to EU citizens.

It sets a three-year deadline to renegotiate the labour market deal with Brussels. The existing accord remains in force in the meantime.

While holding out against EU membership, Switzerland has close ties with the 28-nation bloc with which it does the bulk of its trade.

Burkhalter was set to launch a Europe-wide diplomatic drive to explain the vote and seek a solution. Germany, his country’s top commercial partner, was scheduled as his first stop.

But German Finance Minister Wolfgang Schaeuble warned that the result “is going to create plenty of problems for Switzerland in a host of areas”.

In France, Foreign Minister Laurent Fabius said “we will review our relations with Switzerland”.

A magnet for foreign workers

Foreign workers have long been drawn into Switzerland’s wealthy economy, which is this year expected to grow by 2.1 per cent, almost double the rate in the eurozone. Last year, it expanded by 1.9 per cent while the eurozone’s contracted by 0.4 per cent.

Swiss unemployment was 3.5 per cent in January, compared with 12.1 per cent in the eurozone.

The free labour market deal, fully in force since 2007, was part of a package signed in 1999 after five years of talks.

Most recent immigrants in Switzerland come from neighbouring Italy, Germany and France, as well as Portugal.

Switzerland’s business, industry, farm and hospital lobbies opposed the plan set out in the referendum.

“The approval of the ‘Stop Mass Immigration’ plan raises the spectre of a difficult future for those who work the land, but also for all business sectors that need labour and for the entire economy of the country,” Prometerre farming association said Monday.

But at banking giant UBS, chief economist Michael Kalt was sanguine.

“Nothing will change in the short term in Switzerland. The freedom of movement deal is still in force, and there’s a three-year deadline to put the quotas in place,” Kalt told AFP.

Despite the vote, the Swiss franc was unchanged on foreign exchange markets and Kalt did not foresee a direct economic impact.

“But there’s still an indirect risk due to the climate of political uncertainty in the country. Investors might now think twice before coming to Switzerland,” he noted.

Swiss employers’ federation chief Valentin Vogt said the ball was squarely in the political court.

“Business has to wait and see what the politicians are able to negotiate,” Vogt told AFP, adding that there “will be a relatively long period of uncertainty”.

In the event that the government fails to renegotiate the rules before the expiry of the three-year deadline, he predicted a “problem of unseen dimensions”.

Beijing slams ‘irresponsible’ US warning on South China Sea

By - Feb 10,2014 - Last updated at Feb 10,2014

BEIJING — China condemned the US Pacific air force commander Monday for “irresponsible remarks” after he warned it would be provocative if Beijing declared an air defence zone over the South China Sea.

The response ratchets up a war of words also involving the Philippines and Japan over territorial disputes in the South and East China Seas respectively.

Beijing set up an “air defence identification zone” (ADIZ) over the latter waters in November that included contested islands claimed by it and Tokyo, prompting condemnation by Washington.

Amid concerns Beijing may do the same to assert territorial claims in the South China Sea, US Pacific Air Force Commander Herbert Carlisle said on Sunday such a step would be “very provocative”.

At a regular press briefing on Monday, China’s foreign ministry spokeswoman Hua Chunying hit back, saying that “setting up an air defence identification zone is a reasonable right for any sovereign state to exercise”.

“Relevant officials should reflect carefully on what standing they have to make any irresponsible remarks about China’s exercising its own reasonable and legitimate rights.”

Pointing out that the US and other countries also have ADIZs, she asked, “Why can only China not [do the same]?”

“We hope that relevant countries and officials can stop making irresponsible comments,” she said.

Beijing requires aircraft flying through its ADIZ to identify themselves and maintain communication with Chinese authorities, but the zone is not a claim of sovereignty.

Carlisle also criticised recent actions by Manila and in particular Tokyo, saying that many countries needed to act to de-escalate tensions.

“Some of the things, in particular that have been done by Japan, they need to think hard about what is provocative to other nations,” he said in an interview in Singapore with the US news agency Bloomberg.

Last week Philippine President Benigno Aquino compared China’s efforts to seize disputed territories to Nazi Germany’s actions before World War II, and urged world leaders not to repeat the mistake of appeasement — comments Chinese foreign ministry spokesman Hong Lei dismissed as “unreasonable”.

Meanwhile China and Japan have slammed one another over disputed islands, as well as Beijing’s grievances over Japan’s history of imperial aggression until its defeat in 1945.

Tensions spiked even further after Japan’s nationalistic Prime Minister Shinzo Abe in December visited the Yasukuni shrine, which commemorates Japan’s war dead, including a handful of war criminals executed at the end of World War II.

In opinion pieces in January, both countries’ ambassadors to the UK invoked the fictional evil wizard of the Harry Potter series, Voldemort, in accusing the other side of escalating the conflict.

On Friday Beijing had denounced a US official’s call for China to clarify or adjust its claims in the South China Sea, calling the remarks “irresponsible”.

Beijing claims the sea almost in its entirety, even areas a long way from its shoreline, but portions are also claimed by the Philippines, Vietnam, Malaysia, Brunei and Taiwan.

Swiss vote to curb immigration by EU citizens

By - Feb 09,2014 - Last updated at Feb 09,2014

GENEVA — Switzerland voted Sunday to impose curbs on immigration by European Union citizens, in a nail-bitingly close referendum that threatened to ignite a row with Brussels.

Final results showed that 50.3 per cent of voters had backed the “Stop Mass Immigration” proposal pushed by right-wing populists, even though it could mean the demise of a raft of deals signed in 1999 with the EU including on the economic front.

“This is a turning point in our immigration policy,” said Toni Brunner, head of the Swiss People’s Party (SVP), which piloted the referendum campaign in a country that has steadfastly resisted joining the EU.

Switzerland’s seven-member multiparty government, the Federal Council, in which the SVP has one Cabinet post, had opposed the measure on the grounds that it could hit the economy and undermine the country’s credibility as a negotiating partner.

However in Switzerland, the people have the last word on a huge range of issues in referendums, and the government acknowledged that.

“The Federal Council will without delay begin the work needed to implement the decision of the people,” it said in a statement.

It added that it would examine over coming weeks how to “recast relations between Switzerland and the EU”, underlining that the current rules would remain in force until a new version has been drawn up.

The measure binds the government to renegotiate within three years a deal with Brussels that since 2007 has given most EU citizens free access to the country’s labour market.

It also means that Switzerland will add a clause to its constitution stating migration must serve the nation’s economic interests.

The SVP, which is hawkish about Swiss sovereignty, claims the country has been swamped by migrants.

It says that with 80,000 EU citizens arriving per year — rather than the 8,000 predicted before the rules were liberalised — it is time for the nation of eight million people to rein things in.

Proponents argued that EU citizens undercut Swiss workers, and that overpopulation has driven up rents, stretched the health and education systems, overloaded the road and rail networks, and eaten into the landscape due to housing construction.

In a nod towards such concerns, the government recently adopted measures making it harder for newly arrived EU citizens to apply for Swiss social security.

The measure will mean a return to the annual sector-by-sector limits on work permits for foreigners in force in the past.

It leaves it up to the authorities to set the numbers.

Opponents, also including lobby groups from across the economy, have said it would be foolhardy to revive the bureaucratic hurdles of the past.

They say restricting the hiring of EU citizens would act as a brake on the wealthy Swiss economy, which enjoys virtually full employment but has an ageing population, and could also hurt trade with a disgruntled EU.

A ‘signal’ for eurosceptics

Brussels warns that Switzerland cannot pick and choose from the binding package of deals negotiated painstakingly in the 1990s, seen as a way for the country to enjoy the benefits of access to the EU market without membership.

But the vote has also been watched closely by eurosceptics within the EU who want to rein in immigration among its member states, notably from eastern to western Europe.

“A signal from Switzerland is clearly going to be welcome,” SVP politician Oskar Freysinger told public broadcaster RTS.

Switzerland is ringed by EU member countries and does the bulk of its trade with the bloc.

The labour market accord is part of a raft of deals signed with the EU in 1999 after five years of talks, approved by Swiss voters in 2000 and phased in.

Critics of the migration control plan underline that the treaty with the EU already allowed Switzerland to reimpose temporary quotas — something it has deployed to control numbers of workers from the EU’s ex-communist member states.

But the quota clause expires this year.

Immigration and national identity are traditional political themes in a country with a long history of drawing foreign workers and some of Europe’s toughest rules for obtaining citizenship.

But over recent years, the proportion of foreigners has risen from around one-fifth of the population to roughly a quarter.

The majority of recent immigrants are from neighbouring Germany, Italy and France, as well as Portugal.

There was a clear division in the vote, with Switzerland’s German- and Italian-speaking cantons, in favour, and French-speaking regions voting against.

70,000 rally in Kiev in fresh show of force

By - Feb 09,2014 - Last updated at Feb 09,2014

KIEV — An estimated 70,000 pro-Western Ukrainians thronged the heart of Kiev on Sunday vowing never to give up their drive to oust President Viktor Yanukovych for his alliance with old master Russia.

Wearing blue and yellow ribbons — the colours of both Ukraine and the European Union — the crowd received a religious blessing before opposition leaders took to a podium on Independence Square in a bid to ratchet up pressure on Yanukovych to appoint a new pro-Western government.

“None of the kidnappings and tortures have yielded any results,” said Igor Lutsenko, an activist who survived a severe beating after reportedly being abducted from hospital during deadly unrest in January.

The ex-Soviet nation of 46 million people has been in chaos since November when Yanukovych ditched an historic EU trade and political pact in favour of closer ties with Moscow, stunning pro-EU parts of the population and sparking violent protests.

Since then, what started out as a localised, domestic bout of unrest has snowballed into a titanic tussle for Ukraine’s future between Russia and the West, as demonstrations continued and spread to other parts of the country.

Opposition must be ‘resolved’

After initially ignoring protesters’ demands, Yanukovych has recently yielded ground by dismissing the government. But he also has to appease Russia, which has effectively frozen a sorely-needed $15-billion (11-billion-euro) bailout until the situation clears up.

Moscow has so far issued only one $3-billion instalment of the loan, which it promised to Yanukovych after he rejected the EU pact.

“People must stay on the streets until the end, otherwise there will be reprisals. And the opposition must be more resolved, not limit themselves to speeches on the podium. We need early presidential elections and a new constitution,” Anna Rebenok, a young secretary, told AFP on the square.

The protest is the 10th major demonstration since November, and the size of the crowds Sunday roughly equalled the turnout last weekend, although it was markedly lower than at the end of January, when violence left several people dead.

Protesters have set up row upon row of manned, grimy barricades on all four roads leading to the square, turning it into a pro-Western fortress that leaves riot police on the outside.

On an upmarket avenue near the square, protesters and curious onlookers had clambered onto one of these barricades made slippery by melting snow, facing off with dozens of riot police as a line of burnt vehicles stood in between.

One woman wore high-heels, the other carried her baby up, and many took pictures with their smartphones. Nearby, a man in army fatigues read Dan Brown’s “Angels & Demons”.

But this light atmosphere was darkened by the presence of men wearing bullet-proof vests, helmets and carrying batons — members of self-defence groups patrolling an avenue that was the scene of violent clashes in January.

People also stopped to take photos of a bullet hole in a building not far away, which activists say was fired during the clashes.

Alex Brideau, an analyst for political risk consultancy Eurasia Group, said the protesters’ actions were a “key wildcard in the political stand-off”, noting that their “continued frustration with the lack of progress on their demands” was a major factor behind the January violence.

On Sunday, former boxer turned opposition icon Vitali Klitschko set a challenge for Yanukovych, inviting him to come to the square and face his pro-EU foes.

“I am going to suggest to him that he come here on the Maidan [Independence Square] to hear what people say about him,” he told a cheering crowd.

The opposition wants lawmakers to slash presidential powers and return to a pre-2010 constitution that swayed the balance towards parliament.

Spain princess fights fraud accusations in court

By - Feb 08,2014 - Last updated at Feb 08,2014

PALMA, Spain — Spain’s Princess Cristina fought to distance herself from fraud accusations as she faced a tough court hearing Saturday over a scandal that has plunged the royal family into crisis.

King Juan Carlos’s youngest daughter, 48, smiled and looked relaxed as she arrived at court in Palma on the holiday island of Majorca, nodding to television crews, photographers and reporters crowded near the door.

Dressed in a white shirt and black jacket, she stepped out of a car and walked into the closed-door hearing to answer accusations that she was complicit in tax-dodging and money-laundering.

Long thought untouchable as a royal, Cristina is in the centre of the scandal over allegedly fraudulent business dealings by her husband, former Olympic handball player Inaki Urdangarin.

One of the prosecuting lawyers in the courtroom told reporters she sought to side-step the accusations by telling the judge she had simply “had great trust in her husband”.

“Ninety-five per cent of her answers are evasive. She is calm, relaxed and well prepared,” said Manuel Delgado, a lawyer for a civil party in the case, left-wing association Frente Civico.

Cristina is the first direct member of the Spanish royal family in history to appear in a court as a suspect.

The hearing follows more than two years of mounting anger against the elite in a Spain battered by recession.

Near the court on a sunny winter’s day, scores of pro-republican protesters rallied, held back by police barriers.

They waved red, yellow and purple republican flags, and banners with slogans such as “Royal blood — unreal justice” or “Heads of state by the ballot, not the cradle”.

“It seems the privileges they have aren’t enough for them — they have to do something that really annoys the people,” said Mateo Castellanos, 61, who travelled hundreds of kilometres from the mainland to protest.

“A large part of the country is suffering hardship and a lot of people don’t have enough to feed their children.”

From sunbathing to scandal

Majorca, where for decades Cristina’s family sunbathed and sailed yachts in the summer, is now the centre of a scandal that has turned much of the public against them and raised doubts over the very future of the monarchy.

Neither Cristina nor her husband have been formally charged with any crime and both deny wrongdoing.

“The judge is asking very rigorous questions,” Delgado told reporters on Saturday during a break in the proceedings.

“She is exercising her right not to give answers that would compromise her. She is not diverging from the script we expected: she does not know, she does not answer and that’s it.”

Judge Jose Castro has spent more than two years investigating allegations that Urdangarin and a former business partner embezzled six million euros ($8 million) in public funds via a charitable foundation.

Cristina was a member of the foundation’s board and with her husband jointly owned another company, Aizoon, which investigators suspect served as a front for laundering embezzled money.

Castro questioned her in a courtroom overlooked by a portrait of her own father, Juan Carlos, 76.

The king won widespread respect for helping steer Spain to democracy after the death of the dictator Francisco Franco in 1975.

But the royals’ popularity has plunged since the case against Urdangarin opened three years ago, polls have shown.

The king’s woes were worsened by a luxury elephant-hunting trip he made to Africa in 2012 as his subjects suffered in a recession.

The sight of the king looking frail on crutches in his rare public appearances has fuelled speculation over whether he may abdicate in favour of his son and heir Felipe, 46.

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