World Bank sees 'enormous potential' in Myanmar






WASHINGTON: A World Bank official said Friday that Myanmar has "enormous potential" as it undergoes reforms, which have led the Washington-based lender to launch a drive to bring electricity to millions.

World Bank East Asia and Pacific vice president Axel van Trotsenburg, who visited this month to open the bank's first office in Yangon since 1987, said he was "very, very encouraged" and sensed a feeling of optimism in Myanmar.

"All in all, we believe the country has enormous potential, provided the reforms are sustained," van Trotsenburg told reporters.

"We see that they will require a lot of hard work, but also there will be solid support by the international community when those reforms are happening," he said.

The World Bank has announced $245 million in assistance for priority needs of Myanmar, formerly known as Burma, once the "rice bowl" of Asia, but which remains desperately poor after decades under military rule.

In a project announced during van Trotsenburg's visit to Myanmar, the World Bank is supporting the installation of gas turbines that aim to boost electricity production by two and a half compared to with the aging current sites.

Van Trotsenburg expected the effort to bring power to an additional five million people, lifting health, education and economic growth in a country where only one-quarter of the population now has access to electricity.

The World Bank last month also approved a $440 million zero-interest loan to Myanmar that will help the country improve its finances and pay back a bridge loan from Japan that allowed Yangon to clear its international arrears.

President Thein Sein launched a series of reforms after taking office in 2011, including freeing political prisoners, loosening censorship and allowing pro-democracy icon Aung San Suu Kyi to enter parliament.

- AFP/fa



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Police nab Suryanelli absconder Dharmarajan

KOTTAYAM: Dharmarajan, the absconding convict in the Suryanelli sex scandal, over which Rajya Sabha deputy chairman P J Kurien is facing the heat, was arrested on Friday by Kerala police from a hotel at Sagar in Karnataka.

The third accused in the 17-year-old case, Dharmarajan, a former lawyer, was arrested by a five-member special team of Kerala police, said C Rajagopal, superintendent of police, Kottayam. The accused will be presented before the Kottayam special court on Saturday.

Dharmarajan's hideout was located around 11am on Friday by tracking signals from his cellphone. At the time of arrest, Dharmarajan was found with his head tonsured and wearing a cap. He told the police that he stood by whatever he had said about the case so far. The phone he was using was in the name of Sasikumar of Chickmagalur.

Dharmarajan had told a television channel from an undisclosed location a few days ago that P J Kurien was involved in the case as charged by the victim. Thereafter, the special court here had issued a warrant to arrest him. This is the second time that Dharmarajan is being arrested in the case. The police first arrested him in 2000 from a village in Udupi district, where he was working in a rock quarry.

In 2002, the special court awarded life term to all the accused in the case, including Dharmarajan. In 2005, the high court set aside this verdict and freed all the accused, except Dharmarajan. However, his life term was reduced to five years. He was out on bail in April 2005 and was to report back on May 20. Since then he was absconding.

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Study: Fish in drug-tainted water suffer reaction


BOSTON (AP) — What happens to fish that swim in waters tainted by traces of drugs that people take? When it's an anti-anxiety drug, they become hyper, anti-social and aggressive, a study found. They even get the munchies.


It may sound funny, but it could threaten the fish population and upset the delicate dynamics of the marine environment, scientists say.


The findings, published online Thursday in the journal Science, add to the mounting evidence that minuscule amounts of medicines in rivers and streams can alter the biology and behavior of fish and other marine animals.


"I think people are starting to understand that pharmaceuticals are environmental contaminants," said Dana Kolpin, a researcher for the U.S. Geological Survey who is familiar with the study.


Calling their results alarming, the Swedish researchers who did the study suspect the little drugged fish could become easier targets for bigger fish because they are more likely to venture alone into unfamiliar places.


"We know that in a predator-prey relation, increased boldness and activity combined with decreased sociality ... means you're going to be somebody's lunch quite soon," said Gregory Moller, a toxicologist at the University of Idaho and Washington State University. "It removes the natural balance."


Researchers around the world have been taking a close look at the effects of pharmaceuticals in extremely low concentrations, measured in parts per billion. Such drugs have turned up in waterways in Europe, the U.S. and elsewhere over the past decade.


They come mostly from humans and farm animals; the drugs pass through their bodies in unmetabolized form. These drug traces are then piped to water treatment plants, which are not designed to remove them from the cleaned water that flows back into streams and rivers.


The Associated Press first reported in 2008 that the drinking water of at least 51 million Americans carries low concentrations of many common drugs. The findings were based on questionnaires sent to water utilities, which reported the presence of antibiotics, sedatives, sex hormones and other drugs.


The news reports led to congressional hearings and legislation, more water testing and more public disclosure. To this day, though, there are no mandatory U.S. limits on pharmaceuticals in waterways.


The research team at Sweden's Umea University used minute concentrations of 2 parts per billion of the anti-anxiety drug oxazepam, similar to concentrations found in real waters. The drug belongs to a widely used class of medicines known as benzodiazepines that includes Valium and Librium.


The team put young wild European perch into an aquarium, exposed them to these highly diluted drugs and then carefully measured feeding, schooling, movement and hiding behavior. They found that drug-exposed fish moved more, fed more aggressively, hid less and tended to school less than unexposed fish. On average, the drugged fish were more than twice as active as the others, researcher Micael Jonsson said. The effects were more pronounced at higher drug concentrations.


"Our first thought is, this is like a person diagnosed with ADHD," said Jonsson, referring to attention deficit-hyperactivity disorder. "They become asocial and more active than they should be."


Tomas Brodin, another member of the research team, called the drug's environmental impact a global problem. "We find these concentrations or close to them all over the world, and it's quite possible or even probable that these behavioral effects are taking place as we speak," he said Thursday in Boston at the annual meeting of the American Association for the Advancement of Science.


Most previous research on trace drugs and marine life has focused on biological changes, such as male fish that take on female characteristics. However, a 2009 study found that tiny concentrations of antidepressants made fathead minnows more vulnerable to predators.


It is not clear exactly how long-term drug exposure, beyond the seven days in this study, would affect real fish in real rivers and streams. The Swedish researchers argue that the drug-induced changes could jeopardize populations of this sport and commercial fish, which lives in both fresh and brackish water.


Water toxins specialist Anne McElroy of Stony Brook University in New York agreed: "These lower chronic exposures that may alter things like animals' mating behavior or its ability to catch food or its ability to avoid being eaten — over time, that could really affect a population."


Another possibility, the researchers said, is that more aggressive feeding by the perch on zooplankton could reduce the numbers of these tiny creatures. Since zooplankton feed on algae, a drop in their numbers could allow algae to grow unchecked. That, in turn, could choke other marine life.


The Swedish team said it is highly unlikely people would be harmed by eating such drug-exposed fish. Jonsson said a person would have to eat 4 tons of perch to consume the equivalent of a single pill.


Researchers said more work is needed to develop better ways of removing drugs from water at treatment plants. They also said unused drugs should be brought to take-back programs where they exist, instead of being flushed down the toilet. And they called on pharmaceutical companies to work on "greener" drugs that degrade more easily.


Sandoz, one of three companies approved to sell oxazepam in the U.S., "shares society's desire to protect the environment and takes steps to minimize the environmental impact of its products over their life cycle," spokeswoman Julie Masow said in an emailed statement. She provided no details.


___


Online:


Overview of the drug: http://www.nlm.nih.gov/medlineplus/druginfo/meds/a682050.html


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Pistorius' Girlfriend Saw Self as 'Brainy, Bombshell'












Reeva Steenkamp hit the headlines in America today as the alleged murder victim of her boyfriend, Olympic and Paralympic athlete Oscar "Blade Runner" Pistorius -- but in her homeland of South Africa, she already was known as a top model, a men's magazine cover girl and a budding reality show star.


Asked to describe herself in three words, Steenkamp chose, "brainy, blonde, bombshell," according to the website of "Tropika Island of Treasure 5," the reality show on which she was going to be featured starting Saturday.


"She was definitely destined for success," her publicist, Sarit Tomlinson of Capacity Relations, told the BBC. "She was a gorgeous girl both inside and out, and also had a brain. ... She had an incredible entrepreneurial spirit.


"She was an absolute angel -- the sweetest, sweetest human being, kind human being," she told the BBC. "It's very, very sad."


READ: Pistorius Kept Guns in Bedroom for Security: Journalist


PHOTOS: Paralympic Champion Charged with Murder






Ice Model Management/AP Photo











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The Kansas City Chiefs' Jovan Belcher Kills Girlfriend Then Himself Watch Video







Steenkamp, who police said was 30 but was listed in profiles as 29, burned up social media, describing herself on Instagram as a "cover girl, law graduate, Instagram fanatic," and on Twitter as a "child of God."


"What do you have up your sleeve for your love tomorrow??? #getexcited #ValentinesDay," she tweeted Wednesday, perhaps referring to her boyfriend, Pistorius -- though maybe not.


She had plans to celebrate Valentine's Day this morning by giving a motivational speech to high schoolers in Johannesburg about love, valueing themselves and following their dreams, according to reports.


"I've realized that although Valentine's Day can be a cheesy, money-making stint to most people, it's a day of expressing love across the world," she told the South African celebrity site ZAlebs Wednesday, purportedly just hours before her death. "It doesn't have to only be between lovers, but by telling a friend that you care, or even an old person that they are still appreciated."


Browse through her Instagram account and you'll discover a trove of snapshots documenting vivid moments in the life of a young woman who brought smiles to the faces of those around her.


She was an advocate against violence against women, posting an image of a woman with a hand over her face and the caption, "I woke up in a happy safe home this morning. Not everyone did. Speak out against the rape of individuals in SA. RIP Anene Booysen. #rape #crime #sayNO."


Steenkamp encouraged her thousands of followers on Twitter to fight against sexual abuse, re-tweeting the day before she died, "WEAR BLACK THIS FRIDAY IN SUPPORT AGAINST #RAPE AND WOMAN ABUSE #BLACKFRIDAY."


She showed her religious side by offering this poem on Instagram on Jan. 29:


     "Dear God,


     "I need you. Everyday,
     "Every moment, Every second
     "that I breathe, I need you.


     "I am not strong enough on my own.


     Amen."


"He is listening," read one of the dozen responses to the post - mostly from today. "RIP dear."


Steenkamp was pronounced dead this morning in Pistorius' gated, luxury home in Pretoria, South Africa, with four gunshot wounds to her head and upper body. Pistorius, 26, has been charged with murder.


"I must just say that her future has been cut short," Mike Steenkamp, Reeva Steencamp's uncle, told the Associated Press. "The family at the moment, Barry and June, are devastated."






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Key U.S. general backs keeping Afghan forces at peak strength


WASHINGTON (Reuters) - The U.S. general nominated to oversee a vast region that includes Afghanistan on Thursday backed keeping Afghan forces at a peak strength of 352,000, contrary to current plans to shrink them after NATO declares the war over next year.


General Lloyd Austin, nominated to lead the U.S. military's Central Command, said at his Senate confirmation hearing that a more robust Afghan force, while more costly, would "hedge against any Taliban mischief" following America's longest war.


"Keeping the larger-size force would certainly reassure the Afghans, it would also reassure our NATO allies that we remain committed," Austin said.


The comments came two days after President Barack Obama announced in his State of the Union address that 34,000 U.S. troops - roughly half of the current U.S. force in Afghanistan - would be withdrawn by early 2014.


Obama reassured Americans that the costly, unpopular war was coming to an end, but he left unanswered bigger questions about America's exit strategy, including how many U.S. troops would stay in the country beyond 2014 to help train and advise the Afghans and to battle remnants of al Qaeda.


Obama also did not discuss the future size of the Afghan forces, although a White House fact sheet sent out after his address noted they would remain at 352,000 until "at least" early 2015.


Austin warned the Taliban would be waiting to test them.


"You could reasonably expect that an enemy that's been that determined, that agile, will very soon after we transition begin to try to test the Afghan security forces," Austin said.


Under current plans, the United States and its NATO allies will help build up the Afghan armed forces to 352,000 personnel, a number they are approaching, but the size of the force - which the allies will continue to fund - will be trimmed to 230,000 after 2015.


ECHOES OF IRAQ


The hearing frequently moved away from questions about the Afghan war and other current events to questions about Austin's past role as commander in Iraq, when a failure to strike an immunity deal for U.S. troops led to their total withdrawal in 2011.


Obama administration officials have warned that failure to strike an immunity deal with Afghanistan would also result in a pullout, but Afghan President Hamid Karzai and U.S. officials have expressed confidence a deal can be reached.


Republicans, who have criticized Obama's drawdown strategy in Afghanistan, noted that the president would have left a much smaller force in Iraq than Austin recommended, even if a deal had been struck.


Senator John McCain of Arizona lamented the lack of a U.S. presence in Iraq.


Pressed by Republicans, Austin acknowledged that the situation in Iraq was trending in a "problematic" direction, and agreed that a continued U.S. role would have helped bolster Iraqi forces.


When it came to Afghanistan, Senator Lindsay Graham of South Carolina warned Austin that if Obama sought an insufficient force for the post-2014 mission, he would refuse to vote for funding the war effort.


"It can be as low as 9 or 10,000, that I will stand with them," Graham said.


"If they overrule the commanders and create a force that cannot in my view be successful, I cannot in good conscience vote to continue this operation."


Graham said he would vote for Austin's confirmation once Austin spoke with the former commander of the Afghan mission, General John Allen, about his recommendations to Obama and reported back to the committee about his opinion.


(Reporting by Phil Stewart; Editing by David Brunnstrom)



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Republicans block vote on Obama's Pentagon nominee






WASHINGTON: US Senate Republicans successfully blocked Chuck Hagel's nomination to be President Barack Obama's next Pentagon chief on Thursday, forcing a 10-day delay in his confirmation vote.

By a vote of 58-40 with one member voting present, Democrats failed to overcome a procedural roadblock put up by Republicans who had demanded more time to receive answers to their questions. One senator was absent.

It leaves Hagel's nomination in limbo while the Senate takes a week-long recess.

Democrats needed 60 votes to end debate on the nomination and head to a floor vote. Senators said the failure to proceed marked just the third time that a so-called "filibuster" against a cabinet nominee was successful.

Democratic Majority Leader Harry Reid took to the floor immediately after the vote to rail against the move, which he saw as "embarrassing the president" at a time of tensions in the Middle East, ongoing war in Afghanistan and North Korea recently testing a nuclear device.

"Republicans have made an unfortunate choice to ratchet up the level (of partisanship) here in Washington," a furious Reid said.

He added that he would call Hagel, a Republican former senator, and say, "I'm sorry for the president, I'm sorry for the country and I'm sorry for you. But I'm not going to give up on you."

In a separate statement, Reid expressed bafflement about what he described as "one of the saddest spectacles I have witnessed in my 27 years in the Senate."

The defeat does not doom Hagel's nomination to lead the Pentagon in Obama's second term, and Reid has already said he would call another procedural vote on the first working day after next week's break.

"I think we all need to take a deep breath," a White House official said on condition of anonymity.

"Senator Hagel is going to be confirmed, if not tomorrow then when the Senate returns from recess."

Republicans had blocked Reid's previous attempts to bring Hagel's nomination up for a vote on the Senate floor, demanding more details on his finances and on Obama's management of a September attack on the US consulate in Benghazi.

Several Republicans including Senators John McCain and Lindsey Graham said Thursday they were ready to drop their blocking tactics, but only after the recess, frustrating White House demands for a vote by the end of this week.

"I really really do hope that nothing happens during the next 10 days, when we won't have a secretary of defense.... I hope nothing goes wrong," Reid said.

Outgoing Secretary of Defense Leon Panetta has discussed his pending departure from Washington and return to California, but officials stress that he will officially remain secretary until a replacement is confirmed.

- AFP/jc



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Two kids crushed to death as school bus falls into gorge

DEHRADUN: Two school kids, six to seven years old, were crushed to death and four others seriously injured after a school mini bus fell into a gorge in Haridwar district of Uttarakhand on Thursday.

Haridwar SSP Arun Kumar Joshi said incident occurred at 8.10 am as the bus driver, Sunil, was trying to overtake a tempo. Joshi said that in the process the speeding bus overturned and fell into a gorge.

Joshi said these two kids, Diwanshu (6) and Radhika (7), died due to serious injuries on way to the hospital.

Sunil ran away from the spot. He was later arrested by police near Roorkee. Joshi said police have registered cases against driver on charge of rash and negligence driving.

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Ship Stranded: Love Boat to Horror Honeymoon













A Texas couple's fantasy wedding quickly turned into a nightmare honeymoon when the fire-damaged Carnival Cruise ship carrying them became stranded in the Gulf of Mexico.


Rob Mowlam, 37, and Stephanie Stevenson, 27, of Nederland, Texas, got married on the Carnival Triumph on Saturday. The four-day cruise was meant to be back to shore on Monday, but was left disabled by an engine fire on Sunday.


The ship is being slowly towed to shore and is expected to dock in Mobile, Ala., on Thursday if weather permits. The vessel is without air conditioning, many working toilets and some restaurant service. Passengers, many who are sleeping in tents on deck, have told ABC News the smell on the ship is foul.


That is the honeymoon setting for Mowlam and Stevenson.


"[Rob Mowlam] had been with his girlfriend, or fiance, for a long period of time and they just took the next step," Mowlam's brother James Mowlam III told ABCNews.com. "The captain is the king of the world when they're on the boat and he hitched them up."


James Mowlam said he was shocked when he heard about the stranded boat and the increasingly dire conditions on the ship.


"It is an atrocious scene to be subjected to," he said.


Mowlam said he has not been able to communicate with his brother, but that his father has had sporadic communication with him.


"It would be my guess that this would probably not be on anyone's great list of memorable wedding experiences," Mowlam said with a laugh. "Although, my mom told him that she was hoping they had a memorable wedding and I think this would classify as a memorable wedding experience."






Lt. Cmdr. Paul McConnell/U.S. Coast Guard/AP Photo











Carnival Cruise Ship Stranded for Third Day Watch Video









Carnival Cruise Ship Stranded off Yucatan Peninsula Watch Video









Cruise Ship Stranded Without Power in Gulf of Mexico Watch Video





The bride's brother, Justin Davis, told ABCNews.com that his sister works for a doctor's office and the cruise was a gift from the doctor to the staff.


Davis has not been able to speak to Stevenson but said that her two young sons are being cared for by her mother. He said his sister is tough and he guesses she's probably not scared.


"She might be a little aggravated at the situation, but I'd say she's [probably] handling it really well," he said.


Others on the ship do not seem to be handling the situation so well.


Elderly and disabled passengers aboard the ship are struggling to cope with the worsening conditions, according to at least one passenger.


"Elderly and handicap are struggling, the smell is gross," passenger Ann Barlow text-messaged ABC News overnight. "Our room is leaking sewage."


The head of Carnival Cruise Lines said the British-U.S.-owned company was working hard to ensure the thousands of passengers stranded on the disabled ship were as comfortable as possible while the vessel was being towed to a port in Alabama.


"I need to apologize to our guests and to our families that have been affected by a very difficult situation," Carnival Cruise Lines president and CEO Gerry Cahill said at a news conference Tuesday evening.


It was the first time since a fire erupted in Triumph's engine room Sunday, knocking out its four engines, that a company representative had spoken publicly. The Triumph, with roughly 4,200 people on board, was left bobbing like a 100,000-ton cork for more than 24 hours. Giant sea-faring tugboats then hooked up to the ship and began towing the nearly 900-foot-long ship to land.


Carnival spokeswoman Joyce Oliva told The Associated Press Tuesday that a passenger with a pre-existing medical condition was taken off the ship as a precaution. Everyone else will likely have to weather conditions such as scarce running water, no air conditioning and long lines for food.


Back on land, passenger Barlow's 11-year-old twins told ABC News Tuesday they are worried as more passengers continue to talk about living with limited power and sanitation.






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Ovation for Pope Benedict at final public mass


VATICAN CITY (Reuters) - A capacity crowd in St Peter's Basilica gave Pope Benedict a thunderous standing ovation on Wednesday at an emotional last public Mass before he resigns at the end of the month.


"Thank you. Now, let's return to prayer," the 85-year-old pontiff said, bringing an end to several minutes of applause that clearly moved him. In an unusual gesture, bishops took off their mitres in a sign of respect and a few of them wept.


One of the priests at the altar, which according to tradition rests above the tomb of St Peter, took out a handkerchief to dry his tears.


The Mass was moved to St Peter's from a venue in Rome so more people could attend. Hundreds of others waited outside.


Hours earlier in the Vatican's modern audience hall, a visibly moved Benedict tried to assure his worldwide flock, saying he was confident his decision to step down would not hurt the Church.


The Vatican, meanwhile, announced that a conclave to elect his successor would start sometime between March 15 and March 20, in keeping with Church rules about the timing of such gatherings after the papal see becomes vacant.


"Continue to pray for me, for the Church and for the future pope," he said in unscripted remarks at the start of his weekly general audience, his first public appearance since his shock decision on Monday that he will step down on February 28.


It was the first time Benedict, 85, who will retire to a convent inside the Vatican, exchanging the splendor of his 16th century Apostolic Palace for a sober modern residence, had uttered the words "future pope" in public.


Church officials are still so stunned by the move that the Vatican experts have yet to decide what his title will be and whether he will continue to wear the white of a pope, the red of a cardinal or the black of an ordinary priest.


His voice sounded strong at the audience but he was clearly moved and his eyes appeared to be watering as he reacted to the thunderous applause in the Vatican's vast audience hall, packed with more than 8,000 people.


In brief remarks in Italian that mirrored those he read in Latin to stunned cardinals on Monday he appeared to try to calm Catholics' fears of the unknown.


He message was that God would continue to guide the Church.


EXAMINATION OF CONSCIENCE


"I took this decision in full freedom for the good of the Church after praying for a long time and examining my conscience before God," he said.


He said he was "well aware of the gravity of such an act," but also aware that he no longer had the strength required to run the 1.2 billion member Roman Catholic Church, which has been beset by a string of scandals both in Rome and round the world.


Benedict said he was sustained by the "certainty that the Church belongs to Christ, who will never stop guiding it and caring for it" and suggested that the faithful should also feel comforted by this.


He said that he had "felt almost physically" the affection and kindness he had received since he announced the decision.


When Benedict resigned on Monday, the Vatican spokesman said the pontiff did not fear schism in the Church after his resignation.


Some 115 cardinals under the age of 80 will be eligible to enter a secret conclave to elect his successor.


Cardinals around the world have already begun informal consultations by phone and email to construct a profile of the man they think would be best suited to lead the Church in a period of continuing crisis.


The conservative Benedict has appointed more than half of the cardinals who will elect his successor so it is unlikely the new man will tamper with any teachings such as the ban on artificial birth control or women priests.


But many in the Church have been calling for the election of someone who they say will be a better listener to other opinions in the Church.


The likelihood that the next pope would be a younger man and perhaps a non-Italian, was increasing, particularly because of the many mishaps caused by Benedict's mostly Italian top aides.


Benedict has been faulted for putting too much power in the hands of his friend, Secretary of State Cardinal Tarcisio Bertone. Critics of Bertone, effectively the Vatican's chief administrator, said he should have prevented some papal mishaps and bureaucratic blunders.


ILL-SERVED POPE


"These scandals, these miscommunications, in many cases were caused by Pope Benedict's own top aides and I think a lot of Catholics around the world think that he was perhaps ill-served by some of the cardinals here," said John Thavis, author of a new book, The Vatican Diaries.


Benedict's papacy was rocked by crises over sex abuse of children by priests in Europe and the United States, most of which preceded his time in office but came to light during it.


His reign also saw Muslim anger after he compared Islam with violence. Jews were upset over rehabilitation of a Holocaust denier. During a scandal over the Church's business dealings, his butler was accused of leaking his private papers.


"When cardinals arrive here for the conclave ... they are going to have this on their mind, they're going to take a good hard look at how Pope Benedict was served, and I think many of them feel that the burden of the papacy that finally weighed so heavy on Benedict was caused in part by some of this in-fighting (among his administration)," Thavis told Reuters.


Vatican spokesman Father Federico Lombardi urged the faithful to remain confident in the Church and its future.


"Those who may feel a bit disorientated or stunned by this, or have a hard time understanding the Holy Father's decision should look at it in the context of faith and the certainty that Christ will support his Church," Lombardi said.


Lombardi said that on his last day in office, Benedict would receive cardinals in a farewell meeting and after February 28 his ring of office, used to seal official documents, would be destroyed just as if he had died.


(Reporting by Philip Pullella; Editing by Giles Elgood)



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Slower growth may see EU ease deficit reduction timetable: Rehn






BRUSSELS: EU countries struggling to bring their public deficits back to within EU limits may win more time to meet the target if economic growth slows, European Economic Affairs Commissioner Olli Rehn said Wednesday.

Rehn said in a letter addressed to EU finance ministers that the deficit situation varies greatly across the 27 member states, even if there is a gradual improvement in public finances generally.

The average annual deficit was above 6.0 per cent of Gross Domestic Product in 2009-10, he said, but for 2012 it should be "somewhat above 3.0 per cent," the EU ceiling.

Because of the variations in states meeting the target, "the Commission applies a differentiated approach to consolidation, taking into account" specific circumstances, Rehn said.

"If growth deteriorates unexpectedly, a country may receive extra time to correct its excessive deficit" as long as it has put in place a programme to correct the public finances, he said.

"Such decisions were taken last year for Spain, Portugal and Greece," Rehn added.

French Finance Minister Pierre Moscovici signalled earlier Wednesday that France might revise is targets for growth of 0.8 per cent this year and for reducing the public deficit to less than 3.0 per cent.

Saying that the targets were being held for the moment, Moscovici said the situation was difficult and that "if necessary we are able to have another look, to re-examine the different targets" for growth and for reduction of the public deficit.

Nearly all EU member states have had problems sticking to the deficit limit of 3.0 per cent, having regularly overspent, especially in efforts to boost their economies at the height of the 2008-09 global financial crisis.

Accordingly, many are under Excessive Deficit Procedures whereby Brussels closely monitors their efforts to correct their public finances and may impose fines or other sanctions if they fail to do so by the date set.

- AFP/jc



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