Brussels threatens to sue Britain to let in 'benefit tourists'

 

Ministers fear the move could leave taxpayers handing out as much as £2.5  billion to EU nationals, including out-of-work “benefit tourists”, a new cost that could wreck Coalition plans for welfare reform. The commission’s threat, on the eve of the Conservative Party conference, has raised the political temperature on Europe still further. In an outspoken attack today, Iain Duncan Smith, the Work and Pensions Secretary, says the commission’s move is part of a “wider movement” by the “unelected and unaccountable” European authorities to extend their power over the UK. “This kind of land grab from the EU has the potential to cause mayhem to nation states, and we will fight it,” he writes in The Daily Telegraph. The commission is objecting to Britain’s rules on welfare, claiming they discriminate unfairly against foreigners. To claim benefits in Britain, EU nationals must pass a “right to reside” test. The commission says the test is too tough, and wants Britain to apply more generous EU-wide rules.

Legal warning to UK over benefits for EU nationals

 

The European Commission has threatened legal action against the UK, saying a test of eligibility for benefits discriminates against foreigners. It says it is easier for UK citizens to prove their "right to reside" - a test imposed by the UK for certain benefits - than EU nationals. The commission says it may refer the case to the European Court of Justice. Ministers say it is a "fundamental challenge" to the UK's right to decide its own social security arrangements. The Commission says it has been in talks with the UK for several years over the issue and is responding to a "huge number" of complaints from EU citizens living in the UK. Residence tests On Thursday it announced that it was giving the UK two months to explain how it was going to bring its legislation into line with EU law - prompting UK Work and Pensions Secretary Iain Duncan Smith to accuse it of a "land grab" and to pledge to fight it. A range of entitlements - including child benefit, child tax credit, state pension credit, jobseekers' allowance and employment and support allowance - are given only to those with a "right to reside" in the UK. Continue reading the main story WHAT BENEFITS ARE INVOLVED Child benefit Child tax credit State pension credit Jobseekers' allowance The Commission says there are already an EU-wide "habitual residence" rules which are strict enough and the UK is imposing an additional test, which indirectly discriminates against non-UK EU nationals. While UK nationals can easily prove their "right to reside" based on their UK citizenship, other EU nationals have their applications heard on a case-by-case basis, which it says breaches EU social security co-ordination rules giving all citizens equal rights. The Commission gives the example of a woman who moved to the UK and worked from April 2007 to April 2009 when she was made redundant. It says she had paid taxes and National Insurance but was refused claims for jobseekers' allowance. 'Very sound' It says UK citizens in other EU states do not have to meet similar tests and get non-contributory benefits. Laszlo Andor, Commissioner for Employment and Social Affairs, said the EU's legal position was "very sound". Continue reading the main story “ Start Quote We are talking here.. about people who are inactive, people who are looking to come to the UK who are not going to work here” Chris Grayling Employment minister "The EU insists on the right of mobile workers to move from one country to another and, in certain places, they are entitled to benefits," he told the BBC. "We want to protect the rights of all EU citizens." Most people moving abroad already had offers of work or were looking for it, he said, rather than primarily wanting to take advantage of more generous benefits. "It may happen that some of them do not a find a job immediately. It is very important that, in these cases, the rights should be respected." He added that some people might choose to move to a country where benefits were higher but "since we have a European Labour market we have to accept this as a fact". But UK ministers fear taxpayers could be forced into handing out more than £2bn to EU nationals - including so-called "benefits tourists" - if the UK has to comply. 'Difference of opinion' Employment minister Chris Grayling, who met EU officials this week to discuss the issue, said there was a "very definite difference of opinion" between the UK and the Commission. "We are talking here, not about active citizens, not about people who are working but people who are inactive, people who are looking to come to the UK who are not going to work here." He said European law was "all over the place at the moment" and the UK had separately been told by the European courts to make disability benefit payments to a British citizen living in Spain. He said 13 EU states had proposed a "comprehensive review" of policy in the area in June and talks were continuing. Nigel Farage, leader of the UK Independence Party, which campaigns for Britain's exit from the EU, said: "It is not discrimination but simply a system to ensure that benefits are only paid to those who are entitled to them."

Spanish sailors to be decorated after rescuing French woman taken hostage by pirates

 

The Defence Minister, Carme Chacón, announced that Spanish forces from the amphibious assault ship, ‘Galicia’, are to be decorated for rescuing a French woman who was taken hostage with her husband by Somali pirates off the coast of Yemen earlier this month. Evelyne Colombo was rescued on September 10 two days after the catamaran she and her husband were sailing had been attacked by pirates. Her husband, Christian Colombo, was murdered and his body thrown into the sea during the pirates’ assault. The Galicia was on patrol with the EU anti-piracy mission Operation Atalanta when it intercepted the skiff which was transporting the 55 year old French woman. Operation Atalanta command ordered the Galicia to open fire on the skiff’s engines and the pirates responded by shooting at the Spanish ship. The pirate skiff capsized after the gun battle, but the hostage was rescued and seven pirates were arrested.

El Hierro still on yellow alert, but no fears of an imminent eruption

 

UME Emergency Military Unit was deployed to El Hierro on Wednesday as the island remained on yellow alert amid fears of a volcanic eruption. The Defence Minister, Carme Chacón, was also due to travel there on Wednesday afternoon to supervise their work, and spoke of the UME’s deployment as a preventive measure to assist emergency services in any evacuation over the increased seismic activity on the island. EFE indicates that there is a 15 percent probability of an imminent eruption, but the island’s government has ruled out any need to evacuate the island. The President of El Hierro’s Cabildo, Alpido Armas, said, ‘That’s not going to happen. We will not need to evacuate 4,000 people. If there is an eruption, it will not be a violent one and the worst that can happen is that a 200 metre mountain emerges’. Fifty three people were evacuated from Frontera due to the seismic activity and it’s understood that they will not be allowed home for the moment. Local schools there were also closed as a precaution because of the risk of landslides. The last volcanic eruption on El Hierro was in 1793, when the Lomo Negro volcano erupted. The last on the Canary Islands was just 40 years ago on La Palma.

Wanted Belgian fugitive arrested in Alhaurín El Grande

 

wanted Belgian fugitive has been arrested in Alhaurín El Grande after a marijuana plantation was discovered at a property in the town. He was found there with a man and a woman, and all three are believed to have been part of an organisation which cultivated the drug for distribution in Europe. The Civil Guard found 55 marijuana plants on the property plus a 9 calibre revolver. One of the group was identified as F.V.B., who was wanted on a warrant for extradition to Belgium to serve a prison sentence of four and a half years for armed robbery. EFE indicates that he took part in an armed hold-up of a goods lorry in Wervik in 2009, where the lorry driver was assaulted with an electric shock weapon and left handcuffed and tied up by the neck.

Franco mass grave found in Jerez

 

It has been a local rumour for many years, that the El Marrufo estate in Jerez de la Frontera had been used to bury hundreds of people shot under Franco. The rumour was well known in nearby Cortes de la Frontera, Jimena de la Frontera and Ubrique. But the investigations made by archaeologists over the summer have confirmed the site, the size of ten football pitches, filled with bones and bullet casings. There were so many casings the archaeologists said they were like seeds, labelled ‘Piritécnica Sevilla 1936’. Jesús Román, one of the archaeologists working at the side says they think it could be ‘one of the largest mass graves away from an official cemetery, and think there are between 300 and 600 bodies present. The El Marrufo Estate was used as a detention, torture and execution centre, dealing with about ten people a day. Women and children as well as men were killed at the site.

Ferronats, a company formed by Spanish construction firm, Ferrovial and British air traffic controllers, Nats, has won 10 of the 13 tenders to run control towers at Spanish airports

 

Ferronats, a company formed by Spanish construction firm, Ferrovial and British air traffic controllers, Nats, has won 10 of the 13 tenders to run control towers at Spanish airports as AENA privatises 49% of the company. It will control Alicante, Valencia, Ibiza, Sabadell, Sevilla, Jerez, Melilla, Cuatro Vientos, Vigo and A Coruña. The remaining three towers on the Canary Islands at Lanzarote, Fuerteventura and La Palma have been awarded to the Sacerco company. AENA estimates savings of 46.6% as a result, with Ferronats bidding 70.4 million, and Sacerco bidding 20 million.

Iberia to launch new low cost airline next week

 

Iberia is planning to launch a new low cost airline next week. The Iberia board is expected to approve the project on Tuesday 4 October, to launch the low cost airline for the company’s short and medium distance services. The new airline is expected to take up 37 of the 69 A-320 aircraft the airline currently has in service. Iberia is now merged with British Airways to create the IAG, the International Airline Group, and the IAG board would have to ratify the decision on Thursday. Iberia has been holding talks with the pilots’ union SEPLA on the conditions for them in the new airline. The airline contends that it needs a structural reorganisation, but the union considers that all the flights should remain under the Iberia brand, and considers maintenance would be cheaper with a single company. An earlier leasing of six planes to Vueling, the budget airline with a 45.85% Iberia shareholding, proved unsuccessful with Iberia passengers complaining they were being put on Vueling flights. Five of those six planes are now back with Iberia. The expected name for the new airline, Iberia Express, was first mentioned back in October 2009.

UK pressure group set up to help Spanish property victims

 

While there are similar groups already in existence in Spain, this group is the first of its kind in the UK and aims to raise awareness and pressure the UK Government and MEPs into taking action. Many thousands of Britons are believed to have bought property in Spain and through the actions of various levels of Spanish government, property developers and banks, find themselves unable to enjoy the rights to these properties. The Protection of Property Purchased in Europe (POPPIE) is run by husband and wife team Chris and Angela Beattie, who have first hand experience of the issues that surround buying in Spain. In 2004 they spent €150,000 on an off-plan Andalucian villa that was supposed to back onto a golf course, hotel and villa complex. After a building delay of two years, the house was finally built, although the surrounding complex was not. Due to the developer not having planning permission to build their home, they remain unconnected to mains water and electricity supply and are unable to sell the property.

Treasure hunters eye huge shipwreck haul

 

When the SS Gairsoppa was torpedoed by a German U-boat, it took its huge silver cargo to a watery grave. Seventy years later, US divers said they are working to recover what may well be the biggest shipwreck haul ever. Florida-based Odyssey Marine Exploration on Monday confirmed the identity and location of the Gairsoppa and cited official documents indicating the ship was carrying some 219 tons of silver coins and bullion when it sank in 1941 in the North Atlantic some 490km off the Irish coast. That's worth about $200m today, which would make it history's largest recovery of precious metals lost at sea, Odyssey said. "We've accomplished the first phase of this project -- the location and identification of the target shipwreck - and now we're hard at work planning for the recovery phase," Odyssey senior project manager Andrew Craig said in a statement. "Given the orientation and condition of the shipwreck, we are extremely confident that our planned salvage operation will be well suited for the recovery of this silver cargo." Recovery is expected to begin next spring. After a tender process the British government awarded Odyssey an exclusive salvage contract for the cargo, and under the agreement Odyssey will retain 80% of the silver bullion salvaged from the wreck. The 125m Gairsoppa had been sailing from India back to Britain in February 1941, and was in a convoy of ships when a storm hit. Running low on fuel, the Gairsoppa broke off from the convoy and set a course for Galway, Ireland. It never made it, succumbing to a U-boat's torpedo in the contested waters of the North Atlantic. Of the 85 people on board, only one survived. The Gairsoppa came to rest nearly 4 700m below the surface, but Odyssey is insisting that won't prevent a full cargo recovery. "We were fortunate to find the shipwreck sitting upright, with the holds open and easily accessible," Odyssey chief executive Greg Stemm said. "This should enable us to unload cargo through the hatches as would happen with a floating ship alongside a cargo terminal." Odyssey, a world leader in deep-ocean exploration, recently conducted remotely operated vehicles from its main ship, the Odyssey Explorer, to inspect the shipwreck. It said it acquired still and video imagery from the site which were used to confirm the identify and evaluate the condition of the Gairsoppa.

Irish expat charged with prostitutes' murder in Spain

 

The 42-year-old man, who is believed to be Irish, was arrested near his home in the resort of Mijas Costa, near Marbella on Spain's southern coast on Friday. The suspect's girlfriend and her mother were also being held over possible involvement in the serial slayings. Police suspect him of stabbing two prostitutes to death, the first in August and the second a month later. The killer was dubbed the "10 murderer" because both women were killed on the tenth of the month. The first woman, said to be 45 years old and of Argentine origin, was found dead in her apartment in the nearby resort of Calahonda. She had been stabbed at least 15 times and was found by her son with a pillowcase tied round her neck and a cushion over mouth. A month later police discovered the body of a 47-year-old Ecuadorian born woman at her home in San Pedro near Marbella. She had 12 stab wounds to her chest and neck. Both women reportedly advertised their services through local newspapers. Post mortem evidence suggested the two women shared the same killer. Police are investigating whether the suspect could be linked to other unsolved murders across Spain.

Blasts hit ex-home of Franco-era politician

 

A Spanish official says two homemade explosive devices detonated outside the childhood home of Manuel Fraga, the last surviving member of the regime of Gen. Francisco Franco. No one was hurt. An official with the Interior Ministry office in Lugo province in northwest Spain says Monday's blasts broke windows and damaged the facade of the house, which is being turned into a museum by the conservative Popular Party, which Fraga founded. The devices were composed of explosive power of the kind used to make fireworks and butane gas canisters used for camping stoves. The official said there was no immediate claim of responsibility. The official spoke on condition of anonymity in line with ministry rules. Fraga is 88 and has a seat in the Senate.

Spanish police hold suspected 'Irish serial murderer'

 

SPANISH police were last night reported to be holding an Irishman on suspicion of stabbing two women to death in their Costa del Sol homes. Leading Spanish TV station Telecinco described the suspect as Irish. Last night speculation was mounting that detectives were treating him as a suspected serial killer and looking to link him to a series of other unsolved murders across the country. Detectives established a link between the deaths of two women reported to have worked as prostitutes advertising their services through papers. A 45-year-old Spanish woman of Argentine origin was found in her luxury apartment in the Costa del Sol resort of Calahonda on August 11. She had been stabbed 15 times. A month later, police discovered the body of a 47-year-old Ecuador-born woman at her rented home near Marbella. She had bled to death after being stabbed up to 12 times in her chest and neck. Secrecy Due to the investigating judge granting a secrecy order on the case, spokesmen from Spain's National Police and Civil Guard were unable to confirm the name and nationality of the suspect or discuss local media reports he had been carrying false ID when he was arrested. A spokesman for the National Police said: "I've seen the reports suggesting the suspect is Irish and I've also seen other newspaper reports he's from central Europe, but I cannot give you any details about the man who is in custody." His Moroccan girlfriend and her mother were also being held. The man being held in custody was arrested on Friday at a gym near his home in Riviera del Sol near Fuengirola. The block where he was arrested is just a stone's throw from the home of missing Amy Fitzpatrick's mum, Audrey. Police are believed to have arrested him after stolen credit cards belonging to one of the victims was used to withdraw cash from ATMs in the area.

Saudi women given right to vote

 

Saudi Arabia will allow women to stand for election and vote, the king announced on Sunday, in a significant policy shift in the conservative Islamic kingdowm. In a five-minute speech, King Abdullah bin Abdulaziz al-Saud said women will also take part in the next session of the unelected, advisory Shura Council, which vets legislation but has no binding powers. "Because we refuse to marginalise women in society in all roles that comply with sharia, we have decided, after deliberation with our senior ulama (clerics) and others... to involve women in the Shura Council as members, starting from the next term," he said in a speech delivered to the advisory body. "Women will be able to run as candidates in the municipal election and will even have a right to vote." Women's rights are regarded as a litmus test for the government's appetite for social and political reform. Saudi Arabia adheres to a strict version of Islamic law that enforces the segregation of the sexes. "This is great news," said Wajeha al-Huwaider, a Saudi writer and women's rights activist. "Women's voices will finally be heard. "Now it is time to remove other barriers like not allowing women to drive cars and not being able to function, to live a normal life without male guardians."

Spain 'a Top Choice' For Those Thinking Of Moving Abroad

 

Spain has been named among the top five destinations that people would consider moving to if they were going to leave the UK, new research has found. A survey conducted by Post Office International Payments revealed that the European nation, which was the fourth most popular location named in the poll, was a possible choice for ten per cent of those questioned. The firm also pointed out that it was the highest-placed nation where English is not the first language. One of the top reasons given for buying a property in Spain or elsewhere in the world is the chance to have a better quality of life, while other reasons to move included warmer weather, discovering a new culture and the adventure of emigrating. Mortgage provider Conti published figures earlier this month showing that it has received seven per cent more enquiries about relocating to Spain so far in 2011 than last year. Overall, the country accounts for 31 per cent of all queries handled by the organisation, with only France garnering more interest.

Settling in Britain is a privilege not a right

 

THE following is the summary of a speech delivered on September 15, 2011, by Britain’s Immigration Minister Damian Green at the Centre for Policy Studies [see full speech]. The speech is an indicator of the possible policy changes that will come out of the consultation currently underway into the reform of family migration. The consultation opened on July 13, 2011, and will close on October 6, 2011. It is important that as migrants to this country, we take time out to respond to this consultation as judging from Green’s speech it will have far reaching consequences for immigrants . Some of the proposals on the table include the following: # Whilst recognising that marriage is a personal decision, it is argued that it has implications on the wider society and therefore the spouse seeking settlement will be expected to demonstrate that they have integrated into British society. It is proposed to increase the probationary period for a non-EEA spouse or partner to apply for settlement from two to five years. It is argued that, this will allow additional time to integrate into British life and give authorities a longer period in which to test the genuineness of the relationship before permanent residence in the UK is granted on the basis of it. Ministers also believe this will also make the route less attractive to those whose sole purpose is to gain settlement in Britain. It is also argued that extending the probationary period will reduce the burden to the taxpayer by postponing access to non-contributory benefits like income support. # Immediate settlement for adult dependents will be stopped. Currently under paragraph 317 of the immigration rules, a sponsor who is settled in the UK can sponsor adult dependents in certain circumstances. Instead, a probationary period of five years will be introduced before they can apply for settlement. As a result, their in-country application for settlement will be subject to meeting the English language skills requirement. # In fact the English language test is to be extended to all adult family migrants under 65 as well as dependents aged 16 and 17. The justification Green uses for this is the rather shock data that in one year, 2009-10, the Department of Work and Pensions spent £2.6 million on telephone interpreting services and nearly £400,000 on document translation. # The outcome of the consultation is likely to come up with a minimum maintenance threshold. Presently, it has been safe to argue that if the income meets the income support threshold then it demonstrates sufficiently that they can be accommodated and maintained without recourse to public funds. The Migration Advisory Committee has been tasked to come up with a new minimum income threshold for sponsors of dependents for maintenance and accommodation. The new threshold will take into account the number and age of the dependents sponsored. # It looks like third party support is on its way out except in compelling and compassionate circumstances. Presently, it has been possible to show that a third party will assist with the maintenance requirements. But Green argues that it is not easy for the UK Border Agency to verify this. # The dependents of points-based migrants are to face a probationary period increase of two to five years before settlement. # For some time now, there has been an expression of dissatisfaction by the UK Border Agency about the right of appeal in family visit visa matters. It will come as a surprise given what appears to be routine refusals from the Pretoria entry clearance team that a staggering 73% of the family visits applications are granted. Green argues that the tax payer has to foot the bill for the right of appeal where people produce better evidence than they could have produced at the initial application stage. His argument is reinforced by the statics that family visit appeals made up 40% of all immigration appeals and that it cost the taxpayer around £40 million a year. About 63% of the family visits matters are allowed on appeal. The consultation proposes to end the right of appeal and argues that one can submit a new application instead. As I stated above, it is a good idea to read the consultation and respond to it. At first blush, the 77-page consultation document can appear daunting but it does provide a useful insight into where this government intends to take its immigration policy

Germans don't like the British, and the British are the majority in Benidorm

 

A spokesman said part of the problem was that the Germans don't like the British, and the British are the majority in Benidorm hotelsPhoto EFE Air Berlin has cancelled five direct flights from El Altet airport as the company puts a tough cost cutting scheme into operation with the goal of saving 200 million €. The plan will leave 18 planes on the ground, and Alicante is reportedly hard hit because of the high seasonality of traffic at El Altet. In addition numbers show a marked fall in German traffic using the airport this August compared to last, down 22% with 78,988 German tourists. A spokesman for the airline is reported by Europa Press of having commented that part of the problem is that the Germans don’t like the British, and the Brits are the majority in Benidorm hotels. The town’s hoteliers have described that as ‘an urban legend’. The cutbacks come into effect in November and will see the number of direct destinations from Alicante reduced by 45%. The lost destinations are Frankfort, Munich, Nuremburg, Stuttgart and Zurich. The airlines connections to Berlin, Hamburg and Palma remain. The Air Berlin decision follows the earlier announcement from Ryanair reducing flights from Alicante, and dispels the opinion voiced by the PP at the time that Air Berlin could take up those vacant slots. Air Berlin is one of five airlines which use El Altet airport currently.

Spanish jail-house film shows without on-the-run actor

 

A Spanish prison screened a short film made by inmates Friday with one missing ingredient -- a key actor in the jail-house drama is on the run. Inmates spent months making "Guilty", about a murderer haunted by his victim, to show in an annual festival behind bars in Leon, northern Spain, a prison official and media here said. "Among the inmates taking part, there was one in the final stages of his sentence who was allowed out regularly with leave, but who did not come back from one of those leaves," said a prison service spokeswoman. Prisoners completed the film without the missing actor who disappeared at least two months ago, said the spokeswoman for the Secretary General of Penitentiary Institutions. She denied reports he had the leading role. "He may have had some more important scenes but he was not not necessarily the hero." The actor is being sought for breach of a six-year drug-dealing sentence, which had been due for completion in 2012, she said, stressing that he was not considered a danger.

Costa del Sol’s oldest magazine shuts its doors

 

The Costa del Sol’s oldest magazine is reported to have closed down after running its final edition on Friday. The Friday-Ad – which continues to run a UK operation boasting over 1 million readers a week – had produced a Costa del Sol edition out of its Gibraltar offices since 1975. The reason behind the decision to close remains unclear. When the Olive Press attempted to contact the publication’s office, the number failed to connect. However, a member of staff in the UK office confirmed that it was their understanding that the Costa del Sol edition had closed. “As far as I am aware that was the plan (to close on Friday) but you will need to call back in 10 minutes to speak to someone who can confirm that,” she said.

Barcelona's last bullfight marks end of an era in Spain

 

When Spanish bullfighter Serafin Marin plunges his sword into the back of a bull's neck in Barcelona on Sunday, he will be marking the end of an era. The bull will not only be the last of six killed in the bullfight, but the last-ever to be killed in Barcelona's Monumental bullring, which is nearly a century old. The closure of the Monumental - in keeping with a bullfighting ban in the north-eastern region of Catalonia - reflects the decline of bullfighting in Spain, though fans of the country's 'national fiesta' vow to fight on. 'We have lost a battle, but not the war,' Marin told the daily El Mundo. But animal rights campaigner Aida Gascon said, 'Now that we have achieved (the end of bullfights) in Catalonia, we shall try to finish with them in the rest of Spain.' Catalonia, a wealthy region of 7.5 million people, has spearheaded the campaign against bullfights, or 'corridas,' in a country where animal rights activism is on the rise. The Catalan capital of Barcelona declared itself an 'anti-bullfight' city in 2004. Dozens of other municipalities followed suit, and finally in July 2010 the regional parliament outlawed bullfights from January 1, 2012. The Canary Islands had already done so in 1991, as part of a more general animal protection law, but that decision had gone largely unnoticed. The Catalan opposition to bullfights is explained not only by animal rights activism, but also by Catalan nationalism, many of whose representatives see 'corridas' as an expression of Spanishness. The region with separatist currents 'wants to eliminate everything that represents Spain,' Marin said. Bullfighting remains an important industry in Spain with an annual turnover of more than 2.5 billion euros (3.5 billion dollars), contributing to 0.25 per cent of gross domestic product. It provides direct employment to 200,000 people, including bullfighters, or 'toreros,' bull breeders, managers and others. Yet gradually the spectacle that once inspired artists and writers such as Pablo Picasso and Ernest Hemingway is losing its appeal. Only 37 per cent of Spaniards are interested in bullfights, while 60 per cent dislike them, according to a 2010 poll. 'Corridas' are least popular among young people. Animal rights campaigners see the event, in which darts are stuck into the back of the animal's neck before the 'torero' kills it with his sword, as torture. Some observers attribute the decline also to other causes, ranging from Spain's economic crisis to an alleged deterioration of the race of the Iberian 'brave bull.' Not only are bulls' horns 'shaved' to make them less dangerous, but they are also losing their fighting spirit, some bullfighting commentators complain. Another important reason for the decline of 'corridas' is their image as an old-fashioned form of entertainment. 'Young people do not choose an anachronistic spectacle,' anti-bullfight campaigner Helena Escoda said. Even Catalonia, however, has not outlawed other bull spectacles, such as bull runs. Some Spanish regions have come out in defence of the 'corrida,' describing it as a part of their cultural heritage. Prime Minister Jose Luis Rodriguez Zapatero's government placed bullfights under the responsibility of the Culture Ministry, instead of the Interior Ministry. The opposition conservative People's Party, which is expected to win the November 20 parliamentary elections, has taken legal action against the Catalan bullfighting ban at the Constitutional Court. Catalan bullfighting enthusiasts have also collected 300,000 signatures in defence of the fiesta. Yet it is far from certain that such initiatives will stop what many see as an inevitable social development. Catalan bullfighters, in the meantime, are planning to face the bull elsewhere in Spain or in the south of France.

Spain fears pain as Ratón the killer bull prepares to enter ring for last time

Ratón the bull at a festival in Sueca, Spain. Photograph: Alberto Saiz/AP

It is the end of a long career, deemed venerable by those who admire Spanish fighting bulls.

In the early hours of Sunday morning, the half-tonne 11-year-old killer bull known as Ratón, or Mouse, will feel a bullring's sand under his hooves and sniff the scent of commingled human adrenaline and fear for the last time.

Those who pay their €2.50 (£2.20) in Canals, eastern Spain, will witness the final chapter of a life spent chasing, and occasionally goring, people. Fans are expected to arrive from around the country.

Many will be secretly hoping Ratón, who has killed two and reportedly gored five others in his career, will draw blood at his valedictory outing in the small town near Valencia. A fiesta poster promises "a show with the presence of the famous Ratón" starting at 12.30am. It does not mention that Ratón killed a spectator in nearby Xátiva last month and another man in 2008.

Canals mayor, Ricardo Cardona, claims to have been unaware of Ratón's bloody past when hiring him. He has asked the bull's owner, Gregorio de Jesús, to prevent members of the public coming face to face with the beast.

Four professional recortadores, or bull-taunters, will instead dodge in front of him in the bullring, encouraging him to chase them over obstacles for up to half an hour.

"It is when someone jumps in spontaneously that things inevitably happen," De Jesús said this month.

Police and security staff will try to prevent enthusiastic amateurs jumping into the ring with Spain's most infamous bull.

The future of Ratón, who is past retirement age, remains uncertain. De Jesús wants to clone the bull but is waiting to hear if he will receive local government funds to pay for it.

 

 

This is the buff soldier who exchanged numbers with Cheryl Cole.

Andy Baker plans to meet up with the former X Factor judge after the pair met during her morale-boosting trip to Afghanistan.

The pair were introduced at an award presentation at Camp Bastion and met again a barracks dinner.

New man? Soldier Andy Baker caught Cheryl Cole's eye during her moral-boosting trip to Afghanistan and he hopes to take her out for dinner

They posed for several photos together and once Cheryl returned home, she said she planned to give her 'gorgeous soldier' a call.

Buff: It's easy to see what attracted the singer to Andy, known as Bagsy to his friends

Andy, 25, who is known as Bagsy to his peers, plans to meet up with her once he returns home.

His brother-in-law Graham Peck told the Daily Mirror yesterday: 'Andy would love to take Cheryl out for dinner when he’s back in the UK.

'He thought she was absolutely lovely, and really gorgeous – I think all the guys did.

 

More...

• 'I have no regrets': Fox boss who axed Cheryl Cole from X Factor USA stands by his decision
• 'Nicole Scherzinger is a downgrade from Cheryl': Critics prefer sacked judge Cole on first episode of U.S. X Factor

 

“Andy contacted me through Facebook, raving about Cheryl and even made a photo of them his profile picture.

'They met up a couple of times during her trip and hit it off.'

But the Girls Aloud star may have to wait until next month as Andy has no mobile phone service until October 1.

Graham added: 'When Bagsy read that Cheryl was planning on ringing her mystery soldier, he panicked because he’s not allowed to have his phone on for another nine days – it’s military rules.

'He wants her to know that he’ll be in touch the moment he lands, and wants her to wait for him. Andy’s a great guy and keeps himself fit in the gym.'

 

Popstar to soldier: Cheryl was seen wearing army fatigues with her surname embroided on the pocket of her shirt

Andy, of Colchester, Essex, sports an enviable six-pack and has a tattoo sprawling from his left wrist and across his chest.

He serves with the tough 3 Commando Brigade, the Royal Navy’s amphibious infantry and has been in the Marines for four years.

Andy is currently based in the Marines’ Logistics branch and earns about £29,000 a year, compared with Cheryl's ex husband Ashley Cole's £90,000 a week.

He is also apparently a keen footballer.

One of the troops: Cheryl with a group of servicemen during her visit to Afghanistan

After her trip, Cheryl said: 'Not only are the soldiers incredibly brave, a few were incredibly cute. There was a bit of banter with a couple of the lads and yes, a few flirted I think.

'I came back with a phone number from one lad, although I think his talking to me was a dare.

'I think I am going to call him this week and let’s see what happens. I’m sure he’s not expecting us to, but that’s why it’ll be funny.'

Palestinian leader Mahmoud Abbas makes UN statehood bid

 

Palestinian leader Mahmoud Abbas has submitted his bid to the UN for recognition of a Palestinian state. To rapturous applause in the General Assembly, he urged the Security Council to back a state with pre-1967 borders. He said the Palestinians had entered negotiations with Israel with sincere intentions, but blamed the building of Jewish settlements for their failure. Israeli PM Benjamin Netanyahu said he was reaching out to Palestinians and blamed them for refusing to negotiate. "I continue to hope that President Abbas will be my partner in peace," he said in his speech in New York. "Let's meet here today in the United Nations. Who's there to stop us?" Mr Netanyahu added that the core of the conflict was not settlements but the refusal of the Palestinians to recognise Israel as a Jewish state. Hours after receiving it, UN Secretary-General Ban Ki-moon transmitted the Palestinian request to the Security Council. Israel and the US say a Palestinian state can only be achieved through talks with Israel - not through UN resolutions. 'Come to peace' President Barack Obama told Mr Abbas on Thursday that the US would use its UN Security Council veto to block the move. Continue reading the main story Analysis Jeremy Bowen BBC Middle East editor, New York Some delegations here at the UN in New York gave Palestinian Authority leader Mahmoud Abbas a standing ovation - they were clapping and even whistling in support. That is significant because if it comes to a vote in the Security Council - and if the Americans veto it - Palestinians have a Plan B. That Plan B is to go to the General Assembly - where there are no vetoes - and get enhanced status, not full membership but something better than they have now. The Palestinians say they want to negotiate but not in the way they have negotiated before - there has to be clear parameters and a timetable. The Palestinian point is that since 18 years of negotiation has not worked, let's try something new. "I call upon the distinguished members of the Security Council to vote in favour of our full membership," he told the General Assembly, in what was for him an unusually impassioned speech. He added that he hoped for swift backing. Many delegates gave him a standing ovation. "I also appeal to the states that have not yet recognised the State of Palestine to do so." "The time has come for my courageous and proud people, after decades of displacement and colonial occupation and ceaseless suffering, to live like other peoples of the earth, free in a sovereign and independent homeland," he said. He urged Israel to "come to peace". And he said the building of Jewish settlements was "the primary cause for the failure of the peace process". A spokesman for the Islamist movement Hamas, which controls the Gaza Strip, criticised the speech. Salah Bardawil said Mr Abbas had deviated from the aspirations of the Palestinian people by accepting the 1967 borders, which he said left 80% of Palestinian land inside Israel. 'Future and destiny' Meanwhile in the West Bank, crowds roared their approval as Mr Abbas demanded UN acceptance of a Palestinian state within pre-1967 borders. Continue reading the main story Middle East viewpoints Analyst Yezid Sayigh argues that US and Israeli policies have forced the Palestinians to resort to requesting full UN membership. Israeli commentator Yossi Klein Halevi argues that the Palestinians need to convince the Israelis that any state would not be a threat. "With our souls, with our blood, we will defend Palestine," they said. Mr Abbas had called for peaceful marches in support of his initiative, but some clashes were reported: One Palestinian was shot dead by Israeli troops during clashes in the village of Qusra, south of Nablus, Palestinian sources say At the Qalandiya checkpoint, Israeli troops fired tear gas on stone-throwing Palestinian youths In the village of Nabi Saleh, protesters burned Israeli flags and pictures of President Obama The process began with Mr Abbas presenting a written request for a State of Palestine to be admitted as a full UN member state to the UN secretary general. The BBC's Kim Ghattas at the UN says that until the last minute Western diplomats tried and failed to stop the Palestinians making the request. Even now, efforts are under way to restart direct talks between the Israelis and Palestinians in an attempt to defuse tensions, our correspondent says. The Security Council will examine it and vote on the request. In order to pass, it would need the backing of nine out of 15 council members, with no vetoes from the permanent members. A Security Council vote could take weeks to come about and the US may not even need to exercise its veto - Washington and Israel have been lobbying council members to either vote against the Palestinian plan or abstain. Continue reading the main story Palestinian UN membership bid Palestinians currently have permanent observer entity status at the UN They are represented by the Palestine Liberation Organisation (PLO) Officials now want an upgrade so a state of Palestine has full member status at the UN They seek recognition on 1967 borders - in the West Bank, including East Jerusalem, and Gaza Enhanced observer member status could be an interim option Q&A: Palestinians' UN statehood plans Why Obama has turned towards Israel French President Nicolas Sarkozy has urged a compromise, suggesting the General Assembly give the Palestinians enhanced status as a non-member state to allow a clear timeline for talks - a month to start negotiations, six months to deal with borders and security and a year to finalise a "definitive agreement". A vote on enhanced status - enjoyed by others such as the Vatican - would not require a Security Council recommendation but a simple majority in the General Assembly, where no veto is possible. Currently the Palestinians have observer status at the UN. The "Quartet" of US, European, Russian and UN mediators has been working on reaching a framework agreement to restart talks, based on Mr Obama's vision of borders fashioned from Israel's pre-1967 boundary, with agreed land swaps.

Owner of marijuana plantation caused Ibiza fire by negligence

 

Spanish man who was arrested for starting the fire which broke out on Ibiza on Sunday night is believed to have started it through negligence while he was caring for his marijuana plantation nearby. Civil Guard sources have told the EFE news agency that the cause is thought to be either a cigarette he was smoking or a fire he had lit to cook food. The suspect had spent the past few days caring for his crop in the area where the blaze broke out. He spent his nights in a home-made shelter and used a nearby cave to dry out his plants. The Civil Guard seized marijuana plants and dried leaves at the site, amounting to almost 6 kilos of the drug. The man now faces additional charges of a public health crime. The fire which began in Cala Llonga and forced hundreds of people to be evacuated in Santa Eulàra des Riu destroyed more than 80 hectares of pines and just under 9 hectares of agricultural crops. The amount of land destroyed is however lower than the original estimate of 115 hectares. The Baleares Nature Institute, Ibanat, gives the amount as 92.3 hectares.

Spain’s central bank reported this week that things were getting worse for that country’s banks

 

Spain’s central bank reported this week that things were getting worse for that country’s banks — but not because they held a lot of Greek debt or bonds issued by other troubled European economies. The problem, instead, is the same old one. With Spain’s economy weak and home prices falling, bad loans are growing. And the central bank thinks things are getting worse. In a surprisingly frank presentation to investors in London on Tuesday, José María Roldán, the Bank of Spain’s director general of banking regulation, said that Spanish land prices had fallen about 30 percent from the 2007 peak, adjusted for inflation, and that home prices were off about 22 percent. “In both cases, we expect further corrections in the years to come,” he said. For land prices, he said, the bank’s “baseline scenario” was that prices would fall to little more than half of the peak level. The “adverse scenario” indicated that the decline could be significantly worse. That was a significant change from a presentation he made in February. Then, with home prices down about 18 percent from the peak, he argued that the decline was similar to past cyclical downturns and that prices were likely to begin rising soon. Remarkably enough, collapsing home prices have not left Spanish banks holding large amounts of bad mortgage loans, thanks largely to the fact the Spanish mortgage market operated during the boom in far different ways than the American market. But if lending to home buyers was conducted in a far more prudent manner than it was in the United States, lending to real estate developers and construction companies was, if anything, more irresponsible. The higher land prices went, the more eager the banks were to push out loans. The story of how Spain’s banks got into the mess — and the way its mess differs from that of American banks — show that it is impossible for banks to walk away from a collapsing bubble in real estate. It also shows that the structure of mortgage markets can make a major difference in how a collapse plays out. The figures released by the central bank this week showed that by the middle of this year, 17 percent of Spanish bank loans to construction companies and real estate developers were troubled — or “doubtful,” the term favored by the central bank. That figure has been rising rapidly, reflecting the deterioration in real estate values. When the financial crisis first broke out, in 2008 and 2009, it appeared that Spanish banks were in a better position than most, in part because of regulation that had kept the big banks from making some of the mistakes others made. But it turned out that smaller Spanish savings banks were heavily exposed to a real estate market that had outpaced even the United States’ market for a time during the first decade of this century. That market continued to rise after the American housing market stopped climbing. The Bank of Spain has created a program to force mergers of the smaller banks and to bring in better management. It has put about 11 billion euros into the banks to recapitalize them, and is putting in another 15 billion euros in a process that is supposed to be completed by the end of this month, said Antonio Garcia Pascual, the chief Southern European economist for Barclays Capital. But, he added, “our estimate is that the overall number needed is closer to 50 billion euros.” The banks are bleeding from loans secured by raw real estate, and from loans for construction. The pain is made worse because such lending soared during the property boom. It is those loans that are now devastating bank balance sheets, as developers who borrowed to build offices, stores and neighborhoods saw demand dry up and now cannot pay the banks back. Other corporate loans are also showing weakness, as would be expected when unemployment is above 20 percent and not expected to improve for at least two years, but less than 5 percent of those loans are said to be doubtful. There are also signs of trouble in car loans and other loans to individuals.

European banks head towards another meltdown

 

Shares in some of Europe's largest banks fell by 10pc as the cost of insuring European lenders' senior bonds rose to record levels, according to credit default swap prices. The Markit iTraxx Financial Index of contracts on the senior debt of 25 banks and insurers climbed to an all-time high 315.5 basis points. The last banking crisis was regarded by most eurozone members as an Anglo-Saxon phenomenon caused by lax lending controls that resulted in major UK and US institutions either collapsing or having to take costly state-funded bail-outs. To offset the threat of another crisis spreading across the eurozone, European regulators ordered their banks to increase their liquidity buffers. Government bonds were generally viewed as the most liquid and least risky assets to hold. However, this policy has come back to haunt them, leaving many lenders across the region seriously exposed to the eurozone sovereign debt crisis. French banking giants BNP Paribas and Société Générale are among the hardest hit. Recent estimates suggest BNP has eurozone sovereign debt exposure of about €75bn (£65bn), amounting to roughly 6pc of total assets, including €14bn of Greek debt and €21bn of Italian government bonds. The other two major French banks, SocGen and Credit Agricole, each have exposures of a similar size. Between them, France's banks have about €56bn of Greek sovereign bonds alone, and have so far taken 20pc writedowns on this.

signs of an institutional run on French banks

 

Christine Lagarde, the managing director of the International Monetary Fund, urged Europe's leaders to bail out their fragile banks, as the boss of the eurozone's biggest bank, BNP Paribas, rejected fears that the financial sector was "in peril". Addressing journalists in Washington at the opening of the IMF's annual meeting, Lagarde said that Europe must tackle "this twin problem of sovereign debt and the need to strengthen capital buffers". She said: "It is critical that to fuel growth, banks be in a position to finance the economy, to finance enterprises, to finance households, to finance local governments. To do that they need to have the balance sheet that will actually support credit to the economy." Despite the recent stress tests carried out by the European Banking Authority, which suggested that most of the banks were well-placed to cope with the sovereign debt crisis, the IMF estimates that banks have taken a €300bn (£260bn) hit in the past year as a result of the growing risk of default by Greece and other vulnerable eurozone countries. Lagarde's call came as Baudouin Prot, BNP's chief executive, emphatically denied reports that it was in talks with Middle Eastern investors about securing a capital injection. "I formally deny this," he said. "We have no particular contact because we don't need a capital increase." But French bank shares – which have lost 50% of their value in three months – continued to fall as markets endured one of their worst trading days since 2009. BNP was off more than 5% and close rival Société Générale fell almost 10%. In the UK, bailed-out Lloyds Banking Group was down more than 10%, bearing the brunt of anxiety about a slowdown in economic growth. The FTSE 100 closed down 4.7% with large falls from mining companies, which make up a large part of the index and whose fortunes are closely tied to global economic prospects. Out of the 100 stocks, only technology company Autonomy – supported by a bid from Hewlett-Packard – fell by less than 1%. A survey from the crucial manufacturing sector, which chancellor George Osborne had hoped would lead an economic recovery, exacerbated the nervous mood by suggesting industry had been hit hard by the collapse of confidence around the world. The CBI's monthly industrial trades survey showed declining orders, both at home and abroad, and a rising backlog of finished goods, in the latest evidence that the recovery has stalled. Minutes from the latest meeting of the Bank of England's monetary policy committee revealed on Wednesday policymakers were preparing a new round of quantitative easing to respond to the worsening outlook. The gloom was echoed in the eurozone, where the early, "flash estimates" from the closely watched purchasing managers surveys signalled a sharp downturn in both manufacturing and services growth, adding to fears that Europe could be heading for a new recession. The Greek government announced new austerity measures this week to persuade investors that it is committed to tackling its debts. But investors are still fretting about the potentially devastating impact of a default on the region's banks. BNP insisted on Thursday that it could maintain a core tier one ratio – an important measure of financial strength – of 9% by January 2013 even if it sustained losses through the eurozone crisis. But Mohamed El-Erian, boss of the world's biggest bond investor Pimco, warned in a blog on the FT's website that there were "signs of an institutional run on French banks".

Europe leaves Bulgaria, Romania out in Schengen cold

 

Europe left Bulgaria and Romania out in the cold Thursday, when Finland and the Netherlands blocked their entry into the passport-free Schengen travel area. The Dutch and the Finns refused to let them in, at a meeting of EU interior ministers dogged by concerns about illegal migration, citing poor progress in the fight against corruption and organised crime. "Two member states today made it impossible for us to make a decision on Schengen enlargement," Polish Interior Minister Jerzy Miller, whose country holds the EU's rotating presidency, lamented after the talks. "This leads me to a rather sad conclusion regarding mutual trust among the member states," Miller added, saying Bulgaria and Romania were promised a place in Schengen when they joined the European Union in 2007. "Today the promise has been broken," he said, adding that Romania and Bulgaria had made "huge progress." But the Dutch and Finnish governments disagreed. "What we wanted to avoid was to take a decision today that we would later regret," said Dutch Immigration Minister Gerd Leers. "Imagine you have a door with eight of the best locks in the world. But before that door is standing someone who lets everybody in -- then you have a problem," he said. The ministers did not vote, sending a decision to an EU summit in October, but the Dutch minister said his government was unlikely to change its mind. Schengen's enlargement requires unanimous consent. Poland sought to convince EU peers to accept a two-step solution that would allow Romanian and Bulgarian air and sea borders to open by October 31, while a date on opening land borders would be put off to next year. All nations backed the compromise except for the two opponents, diplomats said. "We don't have complete confidence that these countries will be able to secure outer EU borders because of corruption, among other issues," said Finnish Interior Minister Paeivi Raesaenen. Bulgarian Interior Minister Tsvetan Tsvetanov told national radio that Finland and the Netherlands "presented abstract arguments" against the bids and were "isolated compared to other EU members." Schengen, an area stretching from Portugal to Poland, through which road, rail and even air travellers need only basic identity papers to move freely, has come under growing strain this year over fears about illegal migration. Greece's struggle to police its porous border with Turkey, fears that the Arab revolutions could unleash a wave of boatpeople, and rising populism in some nations have sparked calls for a shake-up of the whole system. Romania has accused the Dutch centre-right government of being held hostage to the far-right. The Dutch centre-right government rules with the backing of Geert Wilders' far-right Freedom Party (PVV). In Finland, the far-right True Finns made major gains in recent elections. After the Dutch indicated their likely stance in advance of Thursday's talks, Romanian border authorities this week blocked Dutch trucks carrying tulips from the Netherlands -- officially over a bacteria scare. Romanian daily Adevarul linked the move to the Schengen dispute, calling it the "war of the flowers." The trucks were finally allowed into Romania on Thursday.

French court fines women for wearing veils

 

France's fines on women for wearing the full-face covering niqab veil, imposed for the first time by a court on Thursday, are a "travesty of justice," Amnesty International says. Police have issued several on-the-spot fines since the ban came into force in April but the hearing saw the first two court-issued fines, and the Muslim women vowed to appeal their case all the way to the European Court of Human Rights. "This is a travesty of justice and a day of shame for France. These women are being punished for wearing what they want," Amnesty International's deputy director for Europe and Central Asia John Dalhuisen said in a statement. Advertisement: Story continues below "Instead of protecting women's rights, this ban violates their freedom of expression and religion." The court in the northern cheese-making town of Meaux ordered Hind Ahmas, 32, to pay a 120 ($A163) fine, while Najate Nait Ali, 36, was fined 80 euros. It did not order them to take a citizenship course, as the prosecutor had wanted. The women were arrested when they brought a birthday cake for local mayor and lawmaker Jean-Francois Cope, who is head of President Nicolas Sarkozy's right-wing UMP party that pushed through Europe's first anti-burqa law. France is not the only country to try to ban the Muslim full-face veil - Belgium and some Italian cities have similar laws, while other countries are planning to follow suit - so a European ruling could have broad effect. French officials estimate that only around 2,000 women, from a total Muslim population estimated at between four and six million, wear the full-face veils traditionally worn in parts of the Arab world and South Asia. Many Muslims and rights activists say the right-wing president is targeting one of France's most vulnerable groups to signal to anti-immigration voters that he shares their fear that Islam is a threat to French culture.

Cheryl Cole 'Falls For Hunky Soldier' In Afghanistan | Cheryl Cole

 

It seems Cheryl Cole has finally put her failed marriage to footballer Ashley Cole behind her, after apparently falling for a "gorgeous" solider in Afghanistan. The Girls Aloud beauty, who visited Camp Bastion in Helmand Province to boost troops morale, claims to have swapped numbers with the hunky young corporal after taking a shine to him during her trip last week. Chezza confessed to The Mirror: "Not only are the soldiers incredibly brave, a few were also incredibly cute. I actually came back with a phone number from one lad." "He started chatting to me after I'd been shot at during a training exercise. Obviously it wasn't real ammunition, but it was still terrifying." She continued: "Anyway, I think I am going to call him this week and we'll see what happens. I'm sure he's not expecting me to ring but that's why it'll be funny - and that's why I'm going to do it." Cheryl went on to admit that she is realistic about any chances of romance with the lucky solider, stating: "Long-distance relationships are a nightmare – a big time difference is a killer because it’s just so hard to stay in touch.” As well as proving a hit with the men, the former X Factor judge also seems to have charmed ladies, claiming: "There really were so many handsome guys – even some of the girl soldiers were totally gorgeous. Loads of the girls are now following me on Twitter and tweeting me. It’s great.” The 28-year old added: “I’d love to stay in touch with some of the incredible people I was lucky enough to meet.”

IMF cuts growth forecast for UK for 2011 and 2012

 

The International Monetary Fund has cut its growth forecasts for the UK, in a report warning that the global economy is in a "dangerous new phase". UK gross domestic product is predicted to grow 1.1% in 2011, down from the 1.5% forecast in the IMF's previous World Economic Outlook report in June. The growth forecast for 2012 has been slashed from 2.3% to 1.6%. Foreign Secretary William Hague said the UK had the "discipline and determination" to tackle its deficit. But shadow chancellor Ed Balls called them "deeply concerning forecasts for both the UK and world economy". Independent economists are currently forecasting average UK growth of 1.3% in 2011, slower than the IMF, and 2% in 2012, ahead of the IMF figure. The IMF's UK forecast for 2011 falls behind projections for Germany, France, the US and Canada. Germany is forecast to grow 2.7% in 2011 while France is expected to show 1.7% growth. The US should advance 1.5% and Canada 2.1%. However, UK growth in 2012 should surpass both Germany and France, whose forecasts have been cut to 1.3% and 1.4% respectively. A spokesman for the Treasury said the Government remains committed to its deficit cutting plan. He said: "It is welcome that the IMF have forecast that the UK will grow more strongly than Germany, France and the euro-zone next year. "But it is clear that the UK is not immune to what is going on in our biggest export markets, with every major economy seeing lower forecasts for growth this year and next. "The Government remains committed to implementing the deficit reduction plan which has delivered stability, a policy stance that Christine Lagarde described as 'appropriate' earlier this month." Mrs Lagarde, head of the IMF, said the UK's budget deficit stance remained "appropriate" but "the heightened risk" meant a need for a "heightened readiness to respond".

Debt Crisis Infects Companies via Bank Loan Costs

 

Banks in Spain and Italy are curbing loans and charging customers more as aftershocks from the sovereign debt crisis drive their own borrowing cost higher. “They can’t lend what they don’t have, I suppose,” said Francesc Elias, the owner of Bomba Elias, a pumps and filters maker near Barcelona, which shelved a 100,000-euro ($144,000) plan to open a Bahrain office when it couldn’t get an affordable bank loan. “The banks are very clever about finding new ways to charge us more.” Spanish and Italian government bond yields surged to euro- era records this quarter as Greece struggled to avoid default, driving the cost of insuring against nonpayment by the region’s banks to a record and making it harder for them to sell bonds. Spain pays 5.35 percent for 10-year money, up from an average of 4.07 percent in the first half of 2010, while Italy pays 5.65 percent compared with a 4.05 percent average last year. As a result, banks such as Banco Santander SA, Spain’s biggest lender, are passing higher funding costs on to their customers. Santander’s return on Spanish loans rose to 3.63 percent in June from 3.37 percent in December, as the yield it pays on deposits fell to 1.32 percent from 1.54 percent. UniCredit SpA, Italy’s biggest lender, said on Aug. 3 it’s being more selective about who it lends to and levying higher rates. One out of three companies asking for credit in the second quarter period didn’t get it or obtained less than they asked for, according to Confcommercio, an Italian retailers’ lobby group. ‘Increasingly Stringent’ “The cost of financing our current activities has increased significantly,” said Riccardo Illy, chairman of Italian coffee maker Gruppo Illy SpA. “We don’t have any problems accessing credit because we’re large enough, but we know many businesses that are having trouble because banks’ requirements have become increasingly stringent.” Spanish banks including Santander and Bankia SA are shrinking their loan books after being pummeled by a collapse in credit demand for real-estate and surging loan defaults. Santander’s Spanish lending shrank an annual 7 percent through June, mirroring a trend in the Bank of Spain’s data that show a 1.9 percent annual drop in lending to companies and individuals. Lending at Bankia, the third-biggest lender formed from a merger of seven savings banks, was down 2.3 percent from December. The average interest rate on new company loans of as much as 1 million euros rose to 4.70 percent in July from 4.57 percent in June and 3.88 percent in December, according to the Bank of Spain. Companies took out 15.9 billion euros of those loans in July, down from 18.7 billion euros in the same month a year ago and 39.2 billion euros in July 2007, according to the central bank. ‘The Bottom Line’ “In our case, it’s not so much the issue of access to credit that’s the problem, it’s the fact that it costs more,” said Luis Zapatero, chairman of Bodegas Riojanas, a Spanish winemaker, which needs to finance putting wine aside to create reserve vintages that may not go on sale until several years after bottling. “Our financial costs have increased 15 percent and that goes straight to the bottom line.” Banks face a dilemma when trying to pass on increased funding costs in full because they risk driving more borrowers into default, said Barclays Capital’s Pascual. Bad loans in the Spanish banking system are near 7 percent of total lending, the highest since 1995. Increased Caution “Banks are more cautious in giving long-term loans because it has become more difficult to transfer increasing funding costs to customers,” said Giovanni Bossi, chief executive officer of Banca Ifis SpA, an Italian bank specializing in short-term loans to companies. As lending slides in Spain and banks struggle to finance themselves, the outlook for growth is worsening, said Antonio Ramirez, an analyst at Keefe Bruyette & Woods in London. Prime Minister Jose Luis Rodriguez Zapatero said Sept. 14 that Spain might miss its 1.3 percent growth target this year because of the “situation of financial tension and economic uncertainty, mainly because of Greece.” Banks, meantime, are struggling to sell bonds. The last benchmark-sized issue of 1 billion euros or more of debt by a Spanish bank was a sale of public-sector covered bonds by Santander in June. UniCredit paid a record spread for Italian covered bonds when it raised 1 billion euros from a sale of 10- year notes that yielded 215 basis points more than the benchmark mid-swap rate. ‘Negative Feedback Loop’ “It’s the negative feedback loop between what’s happening to the sovereign and the effect on banks and the economy,” said Antonio Garcia Pascual, chief southern European economist at Barclays Capital in London. “To a large extent, the problems facing Spanish lenders also apply to Italy.” As financing costs rise in Italy, analysts have started revising down their growth estimates for that country. Nomura International Plc economists revised their Italian gross domestic product growth estimate for 2012 last month to 0.5 percent from 0.8 percent previously. “The increased financial costs will become more evident in the dynamics of the economy,” said Giada Giani, an economist at Citigroup Inc. in London. “I definitely think that the deterioration of financial conditions is a key factor in the macro-economic picture.” A survey by Spain’s national statistics institute published in May showed that one in every four companies that sought loans in 2010 failed in the attempt, compared with 10 percent in 2007. Half of the companies surveyed said they’d been able to line up the credit needed, compared with 80 percent in 2007, according to the survey. Meanwhile, Spanish banks are also demanding higher fees from customers, Bank of Spain data show. The average six-month charge for a retail customer current account jumped 15 percent to 25.80 euros at the end of August from 22.36 euros in December, according to the regulator. “There’s a double effect because commissions have also increased dramatically,” said Elias, the owner of the pumps and filter maker, who has cut his workforce to 12 from 20 in the past year. “It affects any kind of investment plan.”

Moroccan cops seize Scot caught with £500k of cannabis resin

 

holidaymaker is being held in a hell-hole Moroccan jail after being caught in a camper van with £500,000 of hashish. Daniel Healy, 66, was arrested last week as he tried to drive across the border from Morocco to the Spanish enclave of Ceuta. The police discovered the 100kg stash of cannabis resin hidden in aluminium boxes stashed in a water tank. Since then, Healy – who is from Glasgow – has spent six nights in the violent and cramped Tetouan prison. Friend Graham Boszormenyi, 46, claimed that Healy was unaware of the hidden drugs. Ex-Royal Navy submariner Graham said: “Daniel is a good friend of mine and I know that he had no knowledge of what he was carrying. “I spoke to him a couple of days ago and he said he plans to plead guilty because he’s been told he’ll only get one year. “But I know the system in Morocco and I don’t believe it for a minute. “I’ve been through this before. Twice they’ve had me in Morocco and I think he could end up getting four to six years – and he’s too old for that. “He’s in the worst prison possible, where there are 60 people in a cell with one shared toilet. “He’s a harmless old man who is known by lots of people around the world. He’s a noisy drunk but he’s not any kind of criminal. “I know the people who are behind this and I think they will help by coming forward to the UK authorities and telling them that he knew nothing about it. “I have spoken to his family in Scotland and they are understandably very worried. “He has been sucker-punched. He had no idea that these people had just used him. It’s backfired on everyone, especially him. “He was travelling under a different name, John McLeish. I don’t know why. He’s due to be tried on Tuesday.” Healy was driving the Spanish- registered camper van when he was stopped on the border between Morocco and Ceuta. He had been expected to get a ferry from Ceuta across the Mediterranean to the Spanish city of Algeciras. Healy’s daughter Siobhan is a celebrated glass artist with a studio in Glasgow’s Dennistoun. The 34-year-old – whose clients include the Scottish government, the BBC and many councils – said: “I don’t know anything about this. “It doesn’t sound like the kind of thing my dad would be involved in.” Officials from the British embassy are expected to make the 215-mile trip from the Moroccan capital Rabat to offer Healy assistance. A US state department report on Moroccan jail conditions said: “They generally did not meet international standards. “Prisons were overcrowded, resulting in poor hygienic conditions and are prone to violence.” A Moroccan police spokesman said: “We arrested a Scottish man and he is now in prison. We can’t tell you anything else.” A Foreign Office spokesman said: “We are aware of the arrest of a British national in Morocco."

Central control of Europe's borders proposed

 

The European Union's executive branch proposed Friday that national borders in Europe's visa-free travel zone be controlled by officials in Brussels, the EU capital, rather than by individual governments -- a plan already opposed by Germany, France and Spain. The proposal by the European Commission follows a call for stronger economic governance within the area that uses the euro currency, and reflects a push toward more centralized decision-making to protect the European Union's two proudest achievements, the free movement of both people and capital. It is unclear at this point whether either of those achievements will survive, said Paul de Grauwe, an economics professor and EU expert at the Catholic University of Leuven, in Belgium. "I would say we are at a road, and suddenly there is a bifurcation and we have to make choice," de Grauwe said. "One road is more integration to save the project, to save the Schengen zone and the monetary union. But there is a lot of opposition. It's also possible that we take the other road, no further integration, and then we risk the collapse of these two experiments." In June, EU leaders agreed to set up new rules underpinning the principle of free travel throughout much of the continent after Italy, Denmark and France all took action to roll back visa-free travel. Most of the details of the proposed centralized governance of the 25-country Schengen zone -- named for the town in Luxembourg where the visa-free treaty was negotiated in 1985 -- had already emerged. National governments would retain the right to re-institute border checks in unforeseen emergencies that threaten public order or internal security, but only for five days. Beyond that, approval of the European Commission and a committee of technical experts from the Schengen countries would be needed. And as a last resort, if a country failed persistently to adequately police the Schengen zone's external borders despite help from EU headquarters, the commission with the consent of the committee could impose checks along that country's borders with other Schengen countries. "It is a common European project," EU Home Affairs Commissioner Cecilia Malmstrom said of the visa-free zone. "We need to work jointly on joint projects to defend them." But there has long been a push and pull between officials who believe the European project can only work with greater integration and those opposed to the weakening of national sovereignty. Even before the Schengen proposal was unveiled Friday, it met with opposition from Germany, France and Spain, who said border control, public order and internal security were matters for national governments, not EU headquarters. Given that opposition, it is unclear whether the proposal in its current form will take effect. Meanwhile, plans to admit two more EU countries -- Romania and Bulgaria -- to the Schengen visa-free zone hit a snag Friday when Dutch Immigration Minister Gerd Leers said his country plans to block their entry. Approval of new Schengen countries must be unanimous. "The trust isn't there," said Leers' spokeswoman, Elaine de Boer. She said Leers "wants to see more work in the fight against corruption" in both countries. Bulgaria's President Georgi Parvanov insisted his country was being unfairly singled out despite meeting the criteria set out by the 17-member bloc for joining the visa-free zone. "I don't think it is right to use any other criteria in solving this matter," he said at a meeting with foreign ambassadors in the capital Sofia.

Another shipment of cocaine inside plastic bananas seized in Spain

 

National Police have seized almost half a ton of cocaine which had been smuggled into Spain hidden inside plastic bananas transported in a normal cargo of the fruit. It’s a method which has been used by drug smugglers before, leading to four arrests after 162 kilos of cocaine were seized at Algeciras Port this January. The Interior Ministry said in a press release on Thursday that the drugs were imported from Ecuador in containers of bananas by an import company which was set up for that purpose in San Roque, Cádiz province. The group is understood to have sent over a number of containers of real fruit from Ecuador before sending the cargo of cocaine. The gang’s rented warehouse in San Roque was kept under surveillance and raided after three containers were transported there at the end of June, where plastic bananas containing 448 kilos of cocaine were discovered amongst the fruit. Three people were later arrested in Roldán, Murcia, and in Pozuelo de Alarcón, Madrid, followed by a fourth suspect who was taken into custody in August in Alicante.

Enjoying a romantic overseas getaway, Halle Berry and Olivier Martinez looked ever the happy couple while out with Nahla in Palma de Mallorca,

 

The "Dark Tide" co-star couple both dressed casually as they walked hand-in-hand while stopping for coffee in between an afternoon of sight-seeing and shopping.

Halle and Olivier's outing comes just as Warner Bros. has released a new featurette for the romantic ensemble film "New Year's Eve" - in which Halle stars.

Set to open in theaters nationwide on December 9th, the picture also boasts cast members including Zac Efron, Jessica Biel, Ashton Kutcher, Seth Meyers, among many others.

Hollywood Gossip

Enjoy the pictures of Halle Berry and Olivier Martinez out and about with Nahla in Palma de Mallorca, Spain (September 12).

Spanish townspeople spear bull to death

 

Lance-wielding Spanish townspeople speared a huge fighting bull to the death Tuesday, defying a lone protester who sprayed some of them with an irritant. Hundreds of people, many on horseback, turned out for the combat with a 608-kilogram (1,338-pound) black bull named Afligido — Spanish for Sorrowful — in the centuries-old "Toro de la Vega" festival. The massive beast charged through the fortified town of Tordesillas, central Spain, crossing a bridge over the River Duero and into a plain in a tradition that dates back to the Middle Ages. Before the lancing began, a female protester sprayed an irritant at some of those taking part before being taken away by police, a witness to the event said. The ritual, which has been held every second Tuesday in September since at least 1453, pressed ahead regardless and about a dozen lancers on foot and horseback attempted to spear the bull's flesh. One of the lancers on foot struck the first blow, conferring the right to lead the bloody, half-hour confrontation with the beast as others hemmed the animal in. The bull was finished off with a final blow to the head from a large screwdriver. Some 200 animal rights protesters later staged a rally in central Madrid to condemn the tradition, which predates the introduction of the classic bullfight at the end of the 17th century. The protesters, carrying banners showing their website "rompeunalanza.com", chanted "Tordesillas, national shame" before breaking wooden lances. "We are protesting over the celebration of the Toro de la Vega in which hundreds of people on foot and horseback lance a bull to death," said Silvia Barquero, spokeswoman for animal rights group PACMA. "We want the end of bullfighting and especially the Toro de la Vega which is even more savage than the bullfight," she said in an interview. Barquero said she believed the end of all bullfighting in Spain was approaching. The northeastern region of Catalonia will hold its last ever bullfight September 25 in Barcelona, after voting last year to end centuries of bullfighting — a first for mainland Spain. Opinion polls show most Spaniards do not approve of bullfighting, Barquero added, rejecting arguments that the bullfight is an essential part of Spanish culture. "Culture cannot be based in the torture and death of an animal. This festival is not supported by most Spanish people." PACMA challenges the Tordesillas town hall's decision in May to declare the Toro de la Vega as a cultural asset. Each region of Spain has responsibility for its own animal protection laws, usually with exceptions for bullfighting. The festival in Tordesillas is allowed under the laws of the Castilla y Leon region.

Expat equity release victims take on banks

 

Tempted by the offer of a salary for life and an inheritance tax reduction, organisers of Equity Release Victims Association, Ian Sherdley, 69, and Euan Armstrong, 73, used their Spanish holiday homes as collateral to buy into the equity release schemes. The schemes were sold by independent financial advisors working the expat communities along the Costa del Sol on behalf of Denmark's biggest bank Danske Bank and Nordea Bank SA. They were told that if they took out full mortgages against the value of their Andalucian homes, which were fully paid for, and then gave the money to the bank to invest, their inheritance tax liability would be reduced and they'd receive a small lump sum, as well as a monthly return on the bank's investment which would cover the cost of the remortgage and provide a small salary. Mr Sherdley, from Lancashire, and Mr Armstrong, from Scotland, followed the advice only to be later told by their Nordic Banks that the investments had gone badly, the remortgaged money had been lost and their homes, with a combined value of €4.5 million, suddenly belonged to the banks. It is thought that there could be hundred of expats in similar positions across Spain and France. A Spanish court has so far suspended the banks' foreclosure and repossession orders on the properties, while a decision as to how the cases will proceed is expected in the near future. According to Mr Armstrong's lawyer, Antonio Flores from Lawbird Legal Services, the schemes were mis-sold, bearing in mind it is illegal to knowingly indebt yourself in order to reduce your inheritance tax liability. He said: "We want to find out exactly how many of the schemes were sold, to who, and on what basis. "As far as I can gather, retired expats were targeted because they had paid off their mortgages, so could use them as collateral and would be tempted by talk of reduced inheritance tax liability." Mr Armstrong added: "We encourage everyone who, like us has been sold one of these schemes to get in touch. "Do not lie down and take this. These banks are making billions every year with your money." A spokesman for Nordea bank said: "We can't comment, but we can say is that Nordea runs its business in compliance with local laws." A spokesman for Danske Bank said: "According to the law we cannot comment on individual customer cases nor questions related to individual customer cases. We have no comment."

Coin, near Malaga in southern Spain, is, like many towns across the crisis-hit nation, on the verge of bankruptcy with an estimated debt of nearly 30 million euros (£26m)

 

Coin, near Malaga in southern Spain, is, like many towns across the crisis-hit nation, on the verge of bankruptcy with an estimated debt of nearly 30 million euros (£26m) owed by the town council. For more than a week there has been no lighting in public areas after power company Endesa cut services because of an outstanding bill of 280,000 euros (£240,000). Meanwhile some 500 council employees in the town have not yet been paid their August wages, it was reported. The town of 22,000 residents has been ordered to make an urgent payment of 400,000 euros (£346,000) to the Treasury in monthly instalments to cover its debts but the mayor has said the town will be forced to file for bankruptcy. Fernando Fernandez from the conservative Popular Party, who was elected mayor following elections in May, has blamed the debt on the previous socialist administration and asked for more time to meet payments. He claims the council workers wage bill alone amounts to 1 million euros a month and that the town's coffers are empty. It is a problem repeated in municipalities across Spain. In some towns, police officers have been ordered to walk to crime scenes in a bid to save costs on patrol cars. In others, austerity measures meant council services such as public swimming pools did not operate this year despite the soaring summer heat. On Tuesday rating agency Moody's warned that Spain's regions could fail to meet their deficit-cutting targets, a move considered necessary for the nation to meet the EU-agreed public deficit ceiling of 3 per cent of GDP by 2013.