Holder Says Sequester Makes America Less Safe












The looming budget sequestration will make Americans less safe, Eric Holder says—and anyone who says otherwise isn't telling the truth.


"This is something that is going to have an impact on the safety of this country," the U.S. attorney general told ABC's Pierre Thomas on Wednesday in a wide-ranging, exclusive interview.


"And anybody that says otherwise is either lying or saying something that runs contrary to the facts," Holder said.


In his interview with ABC News, Holder reiterated warnings that if automatic spending cuts are triggered on Friday, the Justice Department will be handicapped in some of its most vital missions to prevent terrorist attacks and crime.


"The Justice Department is going to lose nine percent of its budget between now and September 30th. We're going to lose $1.6 billion. There are not going to be as many FBI agents, ATF agents, DEA agents, prosecutors who are going to be able to do their jobs," Holder said. "They're going to be furloughed. They're going to spend time out of their offices, not doing their jobs."


Portions of the interview will air Wednesday, February 27 on "ABC World News"






Patrick Semansky/AP Photo











Eric Holder Says Homegrown Terror Threat Equals International: Exclusive Watch Video









Eric Holder Remembers Newtown, His Worst Day on the Job: Exclusive Watch Video







President Obama's Cabinet members have been warning for weeks that budget sequestration, which will begin Friday unless Obama and Republicans reach a deficit-reduction deal to avoid it, will leave their agencies shorthanded and could bring about disastrous consequences. Homeland Security Secretary Janet Napolitano and Transportation Secretary Ray LaHood have both appeared at the White House press briefing room to warn that furloughs for border-patrol agents, TSA agents and air-traffic controllers will mean weakened border and port security, longer waits in airport security lines, and logjammed air travel.


Holder, for his part, warned in a Feb. 1 letter to the Senate Appropriations Committee that cuts to the FBI, the ATF, the U.S. Marshals Service, and U.S. Attorneys would limit the department's capacity to investigate crimes. Cuts at the Bureau of Prisons, Holder wrote, would mean lockdowns and potential violence, with fewer staff members on hand. In a separate letter, FBI Director Robert Mueller warned that counterterrorism operations would be affected, with the possible elimination of some joint terrorism task forces with state and local police. Limited surveillance and slower response times would mean unwatched targets and the possibility that individuals on terrorism watch lists could gain entry to the U.S.


"FBI's ability to proactively penetrate and disrupt terrorist plans and groups prior to an attack would be impacted," Mueller wrote.


To Holder, the problem is simple.


"If you don't have prosecutors and agents doing what we expect them to do, and we won't if this thing actually takes place, we are going to be a nation that is going to be less safe. And that is simple fact," Holder said.


Some Republicans have claimed the Obama administration is exaggerating the sequester's purported consequences as a ploy to campaign for tax hikes. On "Fox News Sunday" this week, Sen. Tom Coburn, R-Okla., posited that federal agencies enjoy enough flexibility to avoid the worst consequences of the cuts.


On Wednesday, Holder acknowledged that the Justice Department will do what it can to avoid compromised security, while maintaining that furloughs can't be avoided.






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Iran upbeat on nuclear talks, West still wary


ALMATY (Reuters) - Iran was upbeat on Wednesday after talks with world powers about its nuclear work ended with an agreement to meet again, but Western officials said it had yet to take concrete steps to ease their fears about its atomic ambitions.


Rapid progress was unlikely with Iran's presidential election, due in June, raising domestic political tensions, diplomats and analysts had said ahead of the February 26-27 meeting in the Kazakh city of Almaty, the first in eight months.


The United States, China, France, Russia, Britain and Germany offered modest sanctions relief in return for Iran curbing its most sensitive nuclear work but made clear that they expected no immediate breakthrough.


In an attempt to make their proposals more palatable to Iran, the six powers appeared to have softened previous demands somewhat, for example regarding their requirement that the Islamic state ship out its stockpile of higher-grade uranium.


Iran's chief nuclear negotiator Saeed Jalili said the powers had tried to "get closer to our viewpoint", which he said was positive.


In Paris, U.S. Secretary of State John Kerry commented that the talks had been "useful" and that a serious engagement by Iran could lead to a comprehensive deal in a decade-old dispute that has threatened to trigger a new Middle East war.


Iran's foreign minister said in Vienna he was "very confident" an agreement could be reached and Jalili, the chief negotiator, said he believed the Almaty meeting could be a "turning point".


However, one diplomat said Iranian officials at the negotiations appeared to be suggesting that they were opening new avenues, but it was not clear if this was really the case.


Iran expert Dina Esfandiary of the International Institute for Strategic Studies said: "Everyone is saying Iran was more positive and portrayed the talks as a win."


"I reckon the reason for that is that they are saving face internally while buying time with the West until after the elections," she said.


The two sides agreed to hold expert-level talks in Istanbul on March 18 to discuss the powers' proposals, and return to Almaty for political discussions on April 5-6, when Western diplomats made clear they wanted to see a substantive response from Iran.


"Iran knows what it needs to do, the president has made clear his determination to implement his policy that Iran will not have a nuclear weapon," Kerry said.


A senior U.S. official in Almaty said, "What we care about at the end is concrete results."


ISRAELI WARNING


Israel, assumed to be the Middle East's only nuclear-armed power, was watching the talks closely. It has strongly hinted it might attack Iran if diplomacy and sanctions fail to ensure that it cannot build a nuclear weapon. Iran denies any such aim.


Israeli Prime Minister Benjamin Netanyahu said economic sanctions were failing and urged the international community to threaten Iran with military action.


Western officials said the offer presented by the six powers included an easing of a ban on trade in gold and other precious metals, and a relaxation of an import embargo on Iranian petrochemical products. They gave no further details.


In exchange, a senior U.S. official said, Iran would among other things have to suspend uranium enrichment to a fissile concentration of 20 percent at its Fordow underground facility and "constrain the ability to quickly resume operations there".


The official did not describe what was being asked of Iran as a "shutdown" of the plant as Western diplomats had said in previous meetings with Iran last year.


Iran says it has a sovereign right to enrich uranium for peaceful purposes, and wants to fuel nuclear power plants so that it can export more oil.


But 20-percent purity is far higher than that needed for nuclear power, and rings alarm bells abroad because it is only a short technical step away from weapons-grade uranium. Iran says it produces higher-grade uranium to fuel a research reactor.


Iran's growing stockpile of 20-percent-enriched uranium is already more than half-way to a "red line" that Israel has made clear it would consider sufficient for a bomb.


In Vienna on Wednesday, a senior U.N. nuclear agency official told diplomats in a closed-door briefing that Iran was technically ready to sharply increase this higher-grade enrichment, two Western diplomats said.


"Iran can triple 20 percent production in the blink of an eye," one of the diplomats said.


The U.S. official in Almaty said the powers' latest proposal would "significantly restrict the accumulation of near-20-percent enriched uranium in Iran, while enabling the Iranians to produce sufficient fuel" for their Tehran medical reactor.


This appeared to be a softening of a previous demand that Iran ship out its stockpile of higher-grade enriched uranium, which it says it needs to produce medical isotopes.


Iran has often indicated that 20-percent enrichment could be up for negotiation if it received the fuel from abroad instead.


Jalili suggested Iran could discuss the issue, although he appeared to rule out shutting down Fordow. He said the powers had not made that specific demand.


The Iranian rial, which has lost more than half its foreign exchange value in the last year as sanctions bite, rose some 2 percent on Wednesday, currency tracking websites reported.


(Additional reporting by Fredrik Dahl and Yeganeh Torbati in Almaty, Georgina Prodhan in Vienna, Zahra Hosseinian in Zurich, Gabriela Baczynska in Moscow, Dan Williams in Jerusalem and Marcus George in Dubai; Writing by Timothy Heritage and Fredrik Dahl; Editing by Louise Ireland)



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Football: Arsenal reveal plans for Bergkamp statue






LONDON: Arsenal revealed on Wednesday that they plan to honour former striker Dennis Bergkamp by erecting a statue of the Dutchman outside the Emirates Stadium.

Bergkamp follows in the footsteps of former team-mates Thierry Henry and Tony Adams and legendary Arsenal manager Herbert Chapman, who have already been commemorated in bronze statues outside the club's north London home.

Arsenal were forced to confirm plans for the tribute after an image of a cast for the statue appeared online.

"First of all, I am honoured that this is going to happen," Bergkamp said.

"It makes me very proud. Everyone knows that I love Arsenal and that I had a fantastic time at the club.

"For me and my family it was an important period in our lives. Next to that the people were great, the team was amazing and we had a lot of success over the years.

"I will do everything I can to be there when it will be unveiled. It will definitely be a special moment for me, which I don't want to miss."

Bergkamp scored 120 goals for Arsenal and won three league titles and four FA Cups during his 11-year tenure at the club.

"Dennis and everybody at Arsenal are slightly disappointed that some images have been leaked today of the statue in its development, but this will not detract from the excitement we have for the statue's unveiling in the coming months," said Arsenal chief executive Ivan Gazidis.

-AFP/ac



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After thaw, UK opens floodgates for Gujarat

AHMEDABAD: After the thaw, relations between the UK and Narendra Modi's Gujarat are all set to get warmer. One of UK's biggest industry associations, led by UK member of Parliament Ian Swales, will visit the state next month. Later in April, a delegation of British MPs is likely to visit Gujarat.

Swales is bringing a 20-member delegation of the North East of England Process Industry Cluster (NEPIC), which will visit Vapi and Dahej on March 4 and 5. They will explore trade and investment opportunities with companies here to source active pharmaceutical ingredients, besides specialty chemicals from the state.

The NEPIC cluster represents 560 industrial units. It accounts for 60% of UK's petrochemicals output, and around 35% of the pharmaceutical production. Goods worth 11 billion pounds are exported from the cluster annually.

After cold-shouldering Modi for more than a decade over the 2002 post-Godhra riots, the UK government has only recently started engaging with the chief minister at the diplomatic level. The UK India Business Council had even partnered the Vibrant Gujarat investor summit in January with the British high commissioner to India, James Bevan, attending the event.

During the visit in March, the delegation will meet potential customers and partners, besides networking with local businessmen, said an official of the UK Trade and Investment (UKTI), which is supporting the trip. Four British universities will also be part of the delegation to search for setting up campuses and franchises in the state.

Bilateral trade between India and the UK is being pegged at 14 billion pounds per annum and Gujarat is enjoying a lion's share in it.

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C. Everett Koop, 'rock star' surgeon general, dies


NEW YORK (AP) — Dr. C. Everett Koop has long been regarded as the nation's doctor— even though it has been nearly a quarter-century since he was surgeon general.


Koop, who died Monday at his home in Hanover, N.H., at age 96, was by far the best known and most influential person to carry that title. Koop, a 6-foot-1 evangelical Presbyterian with a biblical prophet's beard, donned a public health uniform in the early 1980s and became an enduring, science-based national spokesman on health issues.


He served for eight years during the Reagan administration and was a breed apart from his political bosses. He thundered about the evils of tobacco companies during a multiyear campaign to drive down smoking rates, and he became the government's spokesman on AIDS when it was still considered a "gay disease" by much of the public.


"He really changed the national conversation, and he showed real courage in pursuing the duties of his job," said Chris Collins, a vice president of amfAR, the Foundation for AIDS Research.


Even before that, he had been a leading figure in medicine. He was one of the first U.S. doctors to specialize in pediatric surgery at a time when children with complicated conditions were often simply written off as untreatable. In the 1950s, he drew national headlines for innovative surgeries such as separating conjoined twins.


His medical heroics are well noted, but he may be better remembered for transforming from a pariah in the eyes of the public health community into a remarkable servant who elevated the influence of the surgeon general — if only temporarily.


"He set the bar high for all who followed in his footsteps," said Dr. Richard Carmona, who served as surgeon general a decade later under President George W. Bush.


Koop's religious beliefs grew after the 1968 death of his son David in a mountain-climbing accident, and he became an outspoken opponent of abortion. His activism is what brought him to the attention of the administration of President Ronald Reagan, who decided to nominate him for surgeon general in 1981. Though once a position with real power, surgeon generals had been stripped of most of their responsibilities in the 1960s.


By the time Koop got the job, the position was kind of a glorified health educator.


But Koop ran with it. One of his early steps involved the admiral's uniform that is bestowed to the surgeon general but that Koop's predecessors had worn only on ceremonial occasions. In his first year in the post, Koop stopped wearing his trademark bowties and suit jackets and instead began wearing the uniform, seeing it as a way to raise the visual prestige of the office.


In those military suits, he surprised the officials who had appointed him by setting aside his religious beliefs and feelings about abortion and instead waging a series of science-based public health crusades.


He was arguably most effective on smoking. He issued a series of reports that detailed the dangers of tobacco smoke, and in speeches began calling for a smoke-free society by the year 2000. He didn't get his wish, but smoking rates did drop from 38 percent to 27 percent while he was in office — a huge decline.


Koop led other groundbreaking initiatives, but perhaps none is better remembered than his work on AIDS.


The disease was first identified in 1981, before Koop was officially in office, and it changed U.S. society. It destroyed the body's immune system and led to ghastly death, but initially was identified in gay men, and many people thought of it as something most heterosexuals didn't have to worry about.


U.S. scientists worked hard to identify the virus and work on ways to fight it, but the government's health education and policy efforts moved far more slowly. Reagan for years was silent on the issue. Following mounting criticism, Reagan in 1986 asked Koop to prepare a report on AIDS for the American public.


His report, released later that year, stressed that AIDS was a threat to all Americans and called for wider use of condoms and more comprehensive sex education, as early as the third grade. He went on to speak frankly about AIDS in an HBO special and engineered the mailing of an educational pamphlet on AIDS to more than 100 million U.S. households in 1988.


Koop personally opposed homosexuality and believed sex should be saved for marriage. But he insisted that Americans, especially young people, must not die because they were deprived of explicit information about how HIV was transmitted.


Koop's speeches and empathetic approach made him a hero to a wide swath of America, including public health workers, gay activists and journalists. Some called him a "scientific Bruce Springsteen." AIDS activists chanted "Koop, Koop" at his appearances and booed other officials.


"I was walking down the street with him one time" about five years ago, recalled Dr. George Wohlreich, director of the College of Physicians of Philadelphia, a medical society with which Koop had longstanding ties. "People were yelling out, 'There goes Dr. Koop!' You'd have thought he was a rock star."


Koop angered conservatives by refusing to issue a report requested by the Reagan White House, saying he could not find enough scientific evidence to determine whether abortion has harmful psychological effects on women.


He got static from some staff at the White House for his actions, but Reagan himself never tried to silence Koop. At a congressional hearing in 2007, Koop spoke about political pressure on the surgeon general post. He said Reagan was pressed to fire him every day.


After his death was reported Monday, the tributes poured forth, including a statement from New York Mayor Michael Bloomberg, who has made smoking restrictions a hallmark of his tenure.


"The nation has lost a visionary public health leader today with the passing of former Surgeon General C. Everett Koop, who was born and raised in Brooklyn," Bloomberg said. "Outspoken on the dangers of smoking, his leadership led to stronger warning labels on cigarettes and increased awareness about second-hand smoke, creating an environment that helped millions of Americans to stop smoking — and setting the stage for the dramatic changes in smoking laws that have occurred over the past decade."


Dr. Anthony Fauci of the National Institutes of Health taught Koop what was known about AIDS during quiet after-hours talks in the early 1980s and became a close friend.


"A less strong person would have bent under the pressure," Fauci said. "He was driven by what's the right thing to do."


Carmona, a surgeon general years later, said Koop was a mentor who preached the importance of staying true to the science in speeches and reports — even when it made certain politicians uncomfortable.


"We remember him for the example he set for all of us," Carmona said.


Koop's nomination originally was met with staunch opposition. Women's groups and liberal politicians complained Reagan had selected him only because of his conservative views, especially his staunch opposition to abortion.


Foes noted that Koop traveled the country in 1979 and 1980 giving speeches that predicted a progression "from liberalized abortion to infanticide to passive euthanasia to active euthanasia, indeed to the very beginnings of the political climate that led to Auschwitz, Dachau and Belsen."


But Koop, a devout Presbyterian, was confirmed as surgeon general after he told a Senate panel he would not use the post to promote his religious ideology. He kept his word and eventually won wide respect with his blend of old-fashioned values, pragmatism and empathy.


Koop was modest about his accomplishments, saying before leaving office in 1989, "My only influence was through moral suasion."


The office declined after that. Few of his successors had his speaking ability or stage presence. Fewer still were able to secure the support of key political bosses and overcome the meddling of everyone else. The office gradually lost prestige and visibility, and now has come to a point where most people can't name the current surgeon general. (It's Dr. Regina Benjamin.)


Even after leaving office, Koop continued to promote public health causes, from preventing childhood accidents to better training for doctors.


"I will use the written word, the spoken word and whatever I can in the electronic media to deliver health messages to this country as long as people will listen," he promised.


In 1996, he rapped Republican presidential hopeful Bob Dole for suggesting that tobacco was not invariably addictive, saying Dole's comments "either exposed his abysmal lack of knowledge of nicotine addiction or his blind support of the tobacco industry."


He maintained his personal opposition to abortion. After he left office, he told medical students it violated their Hippocratic oath. In 2009, he wrote to Senate Majority Leader Harry Reid, urging that health care legislation include a provision to ensure doctors and medical students would not be forced to perform abortions. The letter briefly set off a security scare because it was hand delivered.


Koop served as chairman of the National Safe Kids Campaign and as an adviser to President Bill Clinton's health care reform plan.


Worried that medicine had lost old-fashioned caring and personal relationships between doctors and patients, Koop opened an institute at Dartmouth College in New Hampshire to teach medical students basic values and ethics. He also was a part-owner of a short-lived venture, drkoop.com, to provide consumer health care information via the Internet.


Koop was the only son of a Manhattan banker and the nephew of a doctor. He said by age 5 he knew he wanted to be a surgeon and at age 13 he practiced his skills on neighborhood cats. He attended Dartmouth, where he received the nickname Chick, short for "chicken Koop." It stuck for life.


He received his medical degree at Cornell Medical College, choosing pediatric surgery because so few surgeons practiced it. In 1938, he married Elizabeth Flanagan, the daughter of a Connecticut doctor. They had four children. Koop's wife died in 2007, and he married Cora Hogue in 2010.


He was appointed surgeon-in-chief at Children's Hospital in Philadelphia and served as a professor at the University of Pennsylvania School of Medicine. He pioneered surgery on newborns and successfully separated three sets of conjoined twins. He won national acclaim by reconstructing the chest of a baby born with the heart outside the body.


Although raised as a Baptist, he was drawn to a Presbyterian church near the hospital, where he developed an abiding faith. He began praying at the bedside of his young patients — ignoring the snickers of some of his colleagues.


___


Contributing to this report were Associated Press writers Wilson Ring in Montpelier, Vt.; Jeff McMillan in Philadelphia; and AP Medical Writer Lauran Neergaard in Washington.


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Senate Votes to Confirm Hagel as Defense Secretary












After a tough two-month battle characterized by tough interrogation and a partisan divide, the Senate voted 58-41 to confirm Chuck Hagel -- President Obama's nominee -- as secretary of defense this afternoon.


Only four Republicans broke party lines to vote in Hagel's favor. They included Sens. Thad Cochran of Mississippi, Richard Shelby of Alabama, Mike Johanns of Nebraska and Rand Paul of Kentucky, though Paul had voted against moving forward with the vote earlier today.


Before that cloture vote to close the debate and bring Hagel's nomination to a vote, Senate Majority Leader Harry Reid, D-Nev., warned Republicans against continuing their partisan fight against the nominee.


"Senate Republicans have delayed for the better part of two weeks for one reason: partisanship," Reid said. "Politically motivated delays send a terrible signal to allies around the world, and they send a terrible signal to tens of thousands of Americans serving in Afghanistan, other parts of world and those valiant people who are serving here in the United States. For the sake of national security, it's time to set aside this partisanship."


The measure to move forward passed by a vote of 71-27. It needed at least 60 votes to pass.


Some Republican senators took the time before the vote to take a last stab at Hagel.


John Cornyn, R-Texas, who was one of 15 senators who sent a letter to Obama last week calling for him to withdraw his nomination of Hagel, said Hagel had proved that he's ill-prepared to assume the defense secretary post.








Chuck Hagel as Secretary of Defense: Confirmation Process Watch Video









Obama Taps Sen. Chuck Hagel for Defense Secretary Watch Video





"There's simply no way to sugar coat it," Cornyn said. "Sen. Hagel's performance before the Senate Armed Services Committee was remarkably inept, and we should not be installing a defense secretary who is obviously not qualified for the job and who holds dangerously misguided views on some of the most important issues facing national security policy for our country. Sen. Hagel is clearly the wrong man for the job."


The Senate returned today after a week off from debating Hagel's pros and cons.


Today's was not the first attempt to bring Hagel's nomination to the floor.


Republicans blocked a cloture vote to confirm Hagel on Valentine's Day, pushing the decision back until after their President's Day recess.


Democrats framed that rejection as a filibuster, while Republicans said they needed another week to discuss the candidate's record.


"This is a very controversial nominee. There is a desire to not end debate now," Sen. Lindsey Graham, R-S.C., said that Thursday. "We feel like come back next week, after the break, unless there is some bombshell I'd be ready to move on to vote."


Ten days later, GOP Sens. Tom Coburn of Oklahoma and John McCain of Arizona predicted the Senate would go through with a vote today.


A group of 15 Republicans sent a letter to Obama last week asking him to withdraw Hagel's nomination. Coburn, one of the senators who signed that letter, said the fight among lawmakers over Hagel's qualifications would weaken him should he become secretary.


"I like Chuck Hagel as an individual, but the fact is, in modern times, we haven't had one defense secretary that's had more than three votes against him," Coburn said on "Fox News Sunday" this weekend. "And you're going to have 40 votes against him, or 35 votes. And that sends a signal to our allies as well as our foes that he does not have broad support in the U.S. Congress, which limits his ability to carry out his job."


McCain did not sign that letter.






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Italy parties seek way out of election stalemate


ROME (Reuters) - Italy's stunned political parties searched for a way forward on Tuesday after an inconclusive election gave none of them a parliamentary majority and threatened prolonged instability and a renewal of the European financial crisis.


The results, notably the dramatic surge of the anti-establishment 5-Star Movement of comic Beppe Grillo, left the center-left bloc with a majority in the lower house but without the numbers to control the upper chamber, the Senate.


Financial markets fell sharply at the prospect of a stalemate that reawakened memories of the crisis that pushed Italy's borrowing costs toward unsustainably high levels and brought the euro zone to the brink of collapse in 2011.


"The winner is: Ingovernability," ran the headline in Rome newspaper Il Messaggero, reflecting the deadlock the country will have to confront in the next few weeks as sworn enemies are forced to work together to form a government.


Ratings agency Standard & Poor's said on Tuesday that policy choices of the next Italian government would be crucial for the country's creditworthiness, underlining the need for a coalition that can agree on new reforms.


Pier Luigi Bersani, head of the center-left Democratic Party (PD), has the difficult task of trying to agree a "grand coalition" with former prime minister Silvio Berlusconi, the man he blames for ruining Italy, or striking a deal with Grillo, a completely unknown quantity in conventional politics.


The alternative is new elections either immediately or within a few months, although both Berlusconi and Bersani have indicated that they want to avoid a return to the polls if possible: "Italy cannot be ungoverned and we have to reflect," Berlusconi said in an interview on his own television station.


For his part, Grillo, whose movement won the most votes of any single party, has indicated that he believes the next government will last no more than six months.


"They won't be able to govern," he told reporters on Tuesday. "Whether I'm there or not, they won't be able govern."


He said he would work with anyone who supported his policy proposals, which range from anti-corruption measures to green-tinted energy measures but rejected suggestions of entering a formal coalition: "It's not time to talk of alliances... the system has already fallen," he said.


The election, a massive rejection of the austerity policies applied by Prime Minister Mario Monti with the backing of international leaders from U.S. President Barack Obama to German Chancellor Angela Merkel, caused consternation across Europe.


German Finance Minister Wolfgang Schaeuble put a brave face on it, saying "that's democracy".


Spanish Foreign Minister Jose Manuel Garcia-Margallo was more pessimistic.


"This is a jump to nowhere that does not bode well either for Italy or Europe," he said.


A long recession and growing disillusionment with mainstream parties and tax-raising austerity fed a bitter public mood and contributed to the massive rejection of Monti, whose centrist coalition was relegated to the sidelines.


Projections by the Italian center for Electoral Studies showed that the center-left will have 121 seats in the Senate, against 117 for the center-right alliance of Berlusconi's PDL and the regionalist Northern League. Grillo would take 54.


That leaves no party with the majority in a chamber which a government must control to pass legislation.


"THE BELL IS RINGING"


On a visit to Germany, President Giorgio Napolitano said he would not comment until the parties had consulted with each other and Bersani called on Berlusconi and Grillo to "assume their responsibilities" to ensure Italy could have a government.


He warned that the election showed austerity policies alone were no answer to the economic crisis and said the result carried implications beyond Italy.


"The bell is ringing for Europe as well," he said in his first public comments since the election.


He said he would present a limited number of reform proposals to parliament, focusing on jobs, institutional reform and European policy.


However forming an alliance may be long and difficult and could test the sometimes fragile internal unity of the mainstream parties.


"The idea of a majority without Grillo is unthinkable. I don't know if anyone in the PD is considering it but I'm against it," said Matteo Orfini, a member of Bersani's PD secretariat.


"The idea of a PD-PDL government, even if it's backed by Monti, doesn't make any sense," he said.


For his part, Berlusconi won a boost when his Northern League ally Roberto Maroni won the election to become regional president of Lombardy, Italy's economic heartland and one of the richest and most productive areas of Europe.


For Italian business, with an illustrious history of export success, the election result brought dismay that there would be no quick change to what they see as a regulatory sclerosis that has kept the economy virtually stagnant for a decade.


"This is probably the worst possible scenario," said Francesco Divella, whose family began selling pasta under its eponymous brand in 1890 in the southern region of Puglia.


Berlusconi's campaign, mixing sweeping tax cut pledges with relentless attacks on Monti and Merkel, echoed many of the themes pushed by Grillo and underlined the increasingly angry mood of the Italian electorate.


But even if the next government turns away from the tax hikes and spending cuts brought in by Monti, it will struggle to revive an economy that has scarcely grown in two decades.


Monti was widely credited with tightening Italy's public finances and restoring its international credibility after the scandal-plagued Berlusconi, who is currently on trial for having sex with an under-age prostitute.


However, Monti struggled to pass the kind of structural reforms needed to improve competitiveness and lay the foundations for a return to economic growth. A weak center-left government may not find it any easier.


The view from some voters, weary of the mainstream parties, was unrepentant: "It's good," said Roger Manica, 28, a security guard in Rome, who voted for the center-left PD.


"Next time I'll vote 5-Star. I like that they are changing things, even if it means uncertainty. Uncertainty doesn't matter to me, for me what's important is a good person who gets things done," he said. "Look how well they've done."


(Additional reporting by Barry Moody, Gavin Jones, Lisa Jucca, Steven Jewkes, Steve Scherer, Catherine Hornby and Massimiliano Di Giorgio, Annika Breidthardt in Berlin. Writing by Philip Pullella and James Mackenzie; Editing by Peter Graff)



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Dollar edges higher as Bernanke confirms stimulus






NEW YORK: The dollar edged higher Tuesday against the euro after Ben Bernanke confirmed the US Fed's stimulus program would continue, while the yen traded flat ahead of the nomination of a new Bank of Japan chief.

At 2200 GMT the euro was at $1.3061, compared to $1.3065 late Monday. The euro remained under pressure after Italy's inconclusive election, which some fear could lead to more political trouble and policy stalemate in the country.

"Political uncertainty has increased in Italy following the election results weighing upon the euro and risk assets," said Lee Hardman, currency analyst at the Bank of Tokyo-Mitsubishi UFJ in London.

In Washington, Federal Reserve Chairman Bernanke quelled speculation of an early end to quantitative easing when he told a Senate panel that the Fed's stimulus program was having an impact and was still needed.

He said inflation remained subdued and the Fed was keeping its eye on any potentially risky behavior in the market due to low-interest rates.

The Fed policy board "remains confident that it has the tools necessary to tighten monetary policy when the time comes to do so," he added.

The yen was barely changed against the dollar at 91.93, and the euro was at 120.08 yen compared to 120.12 yen late Monday.

Markets were waiting for confirmation of who would be named to head the bank of Japan, after newspapers reported Monday that Asian Development Bank chief Haruhiko Kuroda, an advocate of a lower yen, would be named.

The British pound fell further, to $1.5126 from $1.5166 late Monday. The dollar was little changed on the Swiss franc, at 0.9315 francs.

-AFP/ac



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Rail Budget 2013: Raising funds an uphill journey

When he hiked passenger fares in late January, railway minister Pawan Kumar Bansal had argued that the extent to which freight earnings had been used to subsidise passenger operations was unsustainable. On Tuesday, however, he said he would not affect any changes in passenger fares while imposing an across-the-board 5.8% increase in freight rates.

According to Bansal, losses on passenger operations are estimated to have risen from Rs 4,955 crore in 2001-02 to about Rs 24,600 crore in 2012-13. Considering that the earnings from passengers were Rs 32,500 crore in 2012-13, that suggests that the railways recover only about 55% of their costs on carrying passengers, the rest coming from the surplus generated in freight operations.

That explains why Bansal has bucked the trend of over a decade in recent weeks and announced measures that will yield him an estimated Rs 7,000 crore plus from passengers. Despite such a sizeable mop-up, Railway finances as projected for 2013-14 look only somewhat better than in the last couple of years.

The operating ratio - a measure of what percentage of revenues is used up in running expenses - is pegged at 88.8% for the current year and 87.8% for the coming year. In other words barely 12% of what the Railways earn will be available for investing in building future assets. While this is significantly better than the situation in the last couple of years when the OR had touched 95%, it is still a far cry from the 2007-08 scenario in which nearly 25% of earnings were available for investment.

The squeeze on resources was evident in the minister's lament that the 12th Plan target of investing Rs 5.19 lakh crore on the Railways with Rs 1.05 lakh crore coming from internal resources was beginning to look like an increasingly tall order. He pointed out that only Rs 10,000 crore had been contributed by internal resources in the first year. Yet, the budget for 2013-14 does not do very much better with Rs 14,260 crore of internal accruals contributing to an annual Plan size of Rs 63,363 crore.

Put together, therefore, the first two years of the Plan are now estimated to add up to investments of Rs 1.16 lakh crore with internal resources contributing just over Rs 24,000 crore. That means the Railways will have to invest over Rs 4 lakh crore in the remaining three years of the Plan and find nearly Rs 81,000 crore of that internally, clearly a tall order.

Budget 2013 > Rail Budget 2013 > Economic Survey 2013

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Koop, who transformed surgeon general post, dies


With his long silver beard and uniform with braided trim, former Surgeon General C. Everett Koop became one of the most recognizable figures of the Reagan era — and one of the most unexpectedly enduring.


His nomination in 1981 met a wall of opposition from women's groups and liberal politicians, who complained President Ronald Reagan selected Koop, a pediatric surgeon and evangelical Christian from Philadelphia, only because of his conservative views, especially his staunch opposition to abortion.


Soon, though, he was a hero to AIDS activists, who chanted "Koop, Koop" at his appearances but booed other officials. And when he left his post in 1989, he left behind a landscape where AIDS was a top research and educational priority, smoking was considered a public health hazard, and access to abortion remained largely intact.


Koop, who turned his once-obscure post into a bully pulpit for seven years during the Reagan and George H.W. Bush administrations and who surprised both ends of the political spectrum by setting aside his conservative personal views on issues such as homosexuality and abortion to keep his focus sharply medical, died Monday at his home in Hanover, N.H. He was 96.


An assistant at Koop's Dartmouth College institute, Susan Wills, confirmed his death but didn't disclose its cause.


Although the surgeon general has no real authority to set government policy, Koop described himself as "the health conscience of the country" and said modestly just before leaving his post that "my only influence was through moral suasion."


A former pipe smoker, Koop carried out a crusade to end smoking in the United States; his goal had been to do so by 2000. He said cigarettes were as addictive as heroin and cocaine. And he shocked his conservative supporters when he endorsed condoms and sex education to stop the spread of AIDS.


"A lot of people don't realize what an important role he played in the beginning of the AIDS epidemic. At the time, he really changed the national conversation, and he showed real courage in pursuing the duties of his job," said Chris Collins, a vice president of amFAR, the Foundation for AIDS Research.


Even after leaving office, Koop continued to promote public health causes, from preventing childhood accidents to better training for doctors.


"I will use the written word, the spoken word and whatever I can in the electronic media to deliver health messages to this country as long as people will listen," he promised.


In 1996, he rapped Republican presidential hopeful Bob Dole for suggesting that tobacco was not invariably addictive, saying Dole's comments "either exposed his abysmal lack of knowledge of nicotine addiction or his blind support of the tobacco industry."


Although Koop eventually won wide respect with his blend of old-fashioned values, pragmatism and empathy, his nomination met staunch opposition.


Foes noted that Koop traveled the country in 1979 and 1980 giving speeches that predicted a progression "from liberalized abortion to infanticide to passive euthanasia to active euthanasia, indeed to the very beginnings of the political climate that led to Auschwitz, Dachau and Belsen."


But Koop, a devout Presbyterian, was confirmed after he told a Senate panel he would not use the surgeon general's post to promote his religious ideology. He kept his word.


In 1986, he issued a frank report on AIDS, urging the use of condoms for "safe sex" and advocating sex education as early as third grade.


He also maneuvered around uncooperative Reagan administration officials in 1988 to send an educational AIDS pamphlet to more than 100 million U.S. households, the largest public health mailing ever.


Koop personally opposed homosexuality and believed sex should be saved for marriage. But he insisted that Americans, especially young people, must not die because they were deprived of explicit information about how HIV was transmitted.


Koop further angered conservatives by refusing to issue a report requested by the Reagan White House, saying he could not find enough scientific evidence to determine whether abortion has harmful psychological effects on women.


Koop maintained his personal opposition to abortion, however. After he left office, he told medical students it violated their Hippocratic oath. In 2009, he wrote to Senate Majority Leader Harry Reid, urging that health care legislation include a provision to ensure doctors and medical students would not be forced to perform abortions. The letter briefly set off a security scare because it was hand delivered.


Koop served as chairman of the National Safe Kids Campaign and as an adviser to President Bill Clinton's health care reform plan.


At a congressional hearing in 2007, Koop spoke about political pressure on the surgeon general post. He said Reagan was pressed to fire him every day, but Reagan would not interfere.


Koop, worried that medicine had lost old-fashioned caring and personal relationships between doctors and patients, opened his institute at Dartmouth to teach medical students basic values and ethics. He also was a part-owner of a short-lived venture, drkoop.com, to provide consumer health care information via the Internet.


Koop was born in the New York City borough of Brooklyn, the only son of a Manhattan banker and the nephew of a doctor. He said by age 5 he knew he wanted to be a surgeon and at age 13 he practiced his skills on neighborhood cats.


He attended Dartmouth, where he received the nickname Chick, short for "chicken Koop." It stuck for life.


Koop received his medical degree at Cornell Medical College, choosing pediatric surgery because so few surgeons practiced it.


In 1938, he married Elizabeth Flanagan, the daughter of a Connecticut doctor. They had four children — Allen, Norman, David and Elizabeth. David, their youngest son, was killed in a mountain climbing accident when he was 20.


Koop was appointed surgeon-in-chief at Children's Hospital in Philadelphia and served as a professor at the University of Pennsylvania School of Medicine.


He pioneered surgery on newborns and successfully separated three sets of conjoined twins. He won national acclaim by reconstructing the chest of a baby born with the heart outside the body.


Although raised as a Baptist, he was drawn to a Presbyterian church near the hospital, where he developed an abiding faith. He began praying at the bedside of his young patients — ignoring the snickers of some of his colleagues.


Koop's wife died in 2007, and he married Cora Hogue in 2010.


He was by far the best-known surgeon general, and for decades afterward was still a recognized personality.


"I was walking down the street with him one time" about five years ago, recalled Dr. George Wohlreich, director of the College of Physicians of Philadelphia, a medical society with which Koop had longstanding ties. "People were yelling out, 'There goes Dr. Koop!' You'd have thought he was a rock star."


___


Ring reported from Montpelier, Vt. Cass reported from Washington. AP Medical Writer Lauran Neergaard in Washington contributed to this report.


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