Merkel says Germany, Britain must work together on EU
















LONDON (Reuters) – Germany and Britain must cooperate to work round their differences on the European Union‘s long-term spending plans, German Chancellor Angela Merkel said on Wednesday.


“Despite differences that we have it is very important for me that the UK and Germany work together,” Merkel said through a translator before a meeting in London with Prime Minister David Cameron to discuss the EU‘s 2014-2020 budget.













“We always have to do something that will stand up to public opinion back home. Not all of the expenditure that has been earmarked has been used with great efficiency … We need to address that,” she said.


EU leaders meet in Brussels on November 22-23 to try to secure a seven-year budget for the 27-nation bloc amid signs of differences of opinion over what action should be taken.


(Reporting by Peter Griffiths; Editing by Andrew Osborn)


Europe News Headlines – Yahoo! News



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DC offering monthly titles via Apple, Amazon, B&N
















PHILADELPHIA (AP) — DC Comics is expanding its digital storefront, putting all its monthly titles — from Batman to Superman — on sale at iTunes, Amazon‘s Kindle store and Barnes & Noble‘s Nook shop.


The move announced Wednesday appears to make DC Entertainment the first major comics publisher to make its titles available through online stores the same day they’re on sale in comic shops. It also expands its digital offerings beyond the top industry digital purveyor, Comixology.













Hank Kanalz, DC Entertainment senior vice president for digital, said the decision shows the importance of digital downloads to the company, which relaunched its universe last year under the so-called “New 52″ banner.


“We’ve proven over the last two years that going digital has added to our business in general and going wider is the way to go,” he said.


The decision to go with devices by Apple Inc., Amazon.com Inc. and Barnes & Noble Inc. reflected the fact that users of those gadgets have extensive libraries of digital files — movies, books, TV shows and, now, comics — and don’t necessarily tend to jump from one device to another.


“If you devoted your library to being collected in your Kindle, now you have the option to add to your comics to that,” Kanalz said. “You’re going to have to commit to what platform you want to build your library in.”


It also offers would-be readers the chance to buy single issues quickly.


“Instant gratification,” Kanalz said. “We found that when certain books hit the news, we see a nice spike in digital sales.”


For DC, and others, the proliferation of tablets — iPads, Kindles and Nooks — means more opportunities to lure new readers, said DC co-publisher and artist Jim Lee.


“As e-readers and tablets continue to explode in popularity, it’s important for us to offer consumers convenience and choice in how they download digital comics and graphic novels and these new distribution deals with the top three e-bookstores do just that,” Lee said, adding that the titles include not just DC but also its Vertigo imprint, too.


Besides Comixology, DC also sells its titles through its own DC and Vertigo apps.


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DC Comics is owned by Time Warner Inc.


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Follow Matt Moore at www.twitter.com/mattmooreap.


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Gadgets News Headlines – Yahoo! News



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Phase 4 Films Acquires “Precious” Producer’s Directorial Debut “Long Time Gone”
















NEW YORK (TheWrap.com) – Phase 4 Films has acquired U.S. and Canadian rights to Sarah Siegel-Magness‘ “Long Time Gone,” a drama starring Virginia Madsen, Amanda Crew and Zach Gilford.


Connecticut resident who has a nervous breakdown after discovering her husband is having an affair. Her son tries to comfort her with the help of his older brother (Gilford) and live-in girlfriend (Crew).













Anthony LaPaglia and Eva Longoria also star in the directorial debut of Siegel-Magness, who produced “Precious.”


“We are thrilled to be working with Sarah on her directorial debut after her past success as a producer,” Phase 4 president and CEO Ben Meyerowitz said in a statement. “We cannot wait until audiences see the great performances by Virginia Madsen and the rest of the wonderful cast involved.”


Phase 4 will release the film day-and-date in theaters and across all VOD and digital platforms Spring 2013.


“I am thrilled to have Phase 4 release my directorial debut. From the very start, they understood and appreciated our film and their enthusiasm has us very excited to move forward in the next chapter of our film’s journey,” Siegel-Magness said in a statement. “Their understanding of the ever changing landscape of the marketplace has us feeling confident that our film is in the right hands.”


Movies News Headlines – Yahoo! News



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Mass. pharmacy board director fired
















BOSTON (AP) — The director of the Massachusetts pharmacy board has been fired for ignoring a complaint that a company linked to a deadly meningitis outbreak was violating its license by shipping drugs in bulk.


The Colorado pharmacy board complained about the New England Compounding Center in July, before the third of three batches of tainted steroids tied to the outbreak was shipped in August. A spokesman said state investigators are still looking into any sickness or deaths related to that third batch.













After receiving the report, director James D. Coffey told Colorado officials that the Board of Registration in Pharmacy would “respond as soon as possible following a thorough analysis of (the report).”


Coffey forwarded the complaint to the board’s attorney, Susan Manning, who also failed to act, state officials said.


The two didn’t notify leadership at the state Department of Public Health about the Colorado complaint, which investigators discovered last weekend while sifting through Coffey’s emails, said Massachusetts Office of Health and Human Services spokesman Alec Loftus.


Coffey was fired Tuesday; Manning has been placed on administrative leave. Their replacements have not been publicly announced.


Massachusetts Interim Public Health Commissioner Dr. Lauren Smith said it was ultimately Coffey’s duty as board director to initiate an investigation.


She called it “incomprehensible” that Coffey and Manning did nothing, especially given past problems at the NECC.


“I … expect the staff charged with oversight to perform their duties to the highest standards,” Smith said. “That failed to happen here.”


Efforts to contact Coffey and Manning for comment were not successful.


Compounding pharmacies custom-mix drugs in doses or forms that generally aren’t commercially available.


A contaminated steroid produced at the New England Compounding Center and used mainly to treat back pain has been linked to a fungal meningitis outbreak that has spread to 19 states, sickening more than 400 people, including 31 who died.


In September, the company recalled three batches of steroids, totaling 17,676 single-dose vials of medicine, made since May.


The NECC, located in Framingham, outside Boston, was authorized by its state license only to fill specific prescriptions for individual patients.


Pharmacies that produce drugs in bulk are subject to federal oversight, and state officials have accused the NECC of masking its true nature as a drug manufacturer to escape more stringent regulation.


Colorado officials first dealt with the company in April 2011, when the board there issued a cease-and-desist order for the NECC, ordering it to stop “the unlawful distribution of prescription drugs in the state of Colorado.” The order came after an inspector discovered NECC drugs stored for general use at a hospital in Lone Tree, Colo., near Denver.


Then in July, another inspector found bulk quantities of other NECC-made drugs at a hospital in St. Delta, Colo.


After confirming with the U.S. Food and Drug Administration that the NECC was not registered as a drug manufacturer, the Colorado officials emailed Coffey.


The NECC has been closed since early last month, and Massachusetts officials have taken steps to permanently revoke its license. Federal and state investigators have found evidence of unsanitary conditions and practices at the company, and federal investigators are conducting a criminal investigation.


A company spokesman has said it was always NECC’s intent to obey the law in every state in which it was licensed.


Medications/Drugs News Headlines – Yahoo! News



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Greece MPs back austerity cuts

















Lawmakers in Greece have narrowly backed a fresh round of austerity measures, despite violent protests across the country.













The austerity package aimed at securing the next round of bailout funds was passed with 153 MPs in favour – a majority of just three.


The 13.5bn-euro ($ 17.3bn; £10.5bn) bill includes tax rises and pension cuts.


Earlier, riot police fired tear gas towards protesters when they were attacked with petrol bombs in Athens.


Prime Minister Antonis Samaras warned before the vote late on Wednesday that without the bailout Greece would run out of money this month and face “catastrophe”.


The austerity package – Greece’s fourth in three years – is meant to close the nation’s budget deficit, lower its huge debt burden and make its economy more competitive.


Continue reading the main story

Start Quote



Many of these measures are fair and should have been taken years ago, without anyone asking us to”



End Quote Antonis Samaras Greek PM


But the level of resistance on the streets is a reminder that implementing the measures will be extraordinarily difficult, the BBC’s Mark Lowen in Athens reports.


The approval of the bill means that Greece will stay afloat, but the decision will go down very badly among this exhausted nation, our correspondent adds.


Samaras’s warning


The crucial vote was held after a lengthy debate in the 300-strong parliament.


Immediately after the bill was adopted, co-governing New Democracy and Pasok parties expelled seven lawmakers from their ranks for failing to back the package.


The adopted plan includes a two-year increase in the retirement age from the current average of 65, as well as salary cuts and labour market reforms, including cuts to holiday benefits, notice periods and severance pay.


Continue reading the main story

Measures in austerity package


  • Retirement age up from 65 to 67

  • A further round of pension cuts, of 5-15%

  • Salary cuts, notably for police officers, soldiers, firefighters, professors, judges, justice officials; minimum wage also reduced

  • Holiday benefits cut

  • 35% cut to severance pay

  • Redundancy notice reduced from six to four months


Workers fear this will just make it easier and cheaper for them to be fired at a time when unemployment has already soared to 25% and a five-year recession means there are few job prospects.


“Many of these measures are fair and should have been taken years ago, without anyone asking us to,” Mr Samaras said.


“Others are unfair – cutting wages and salaries – and there is no point in dressing this up as something else,” the prime minister said, adding that Greece was, nevertheless, obliged to take the measures.


Mr Samaras has said that without this money, which will be used largely to recapitalise the country’s banks, the country will be bankrupt by 15 November.


The vote on the cuts will be followed by a second vote this Sunday on Greece’s revised budget for 2013.


A positive vote on both is required for Greece to secure 31.5bn euros in fresh loans from the European Union (EU) and the International Monetary Fund (IMF).


‘Mother of all strikes’


Earlier on Wednesday, tens of thousands of protesters held a rally in Syntagma Square – outside the parliament building in the heart of the capital.


Continue reading the main story

Key dates


  • 6-7 Nov General strike

  • 7 Nov Vote on austerity package

  • 11 Nov Vote on budget

  • 12 Nov Eurozone finance ministers to discuss releasing new cash for Greece

  • 16 Nov Deadline for Greece to repay 5bn euros in debt


The protesters chanted: “People – don’t bow your heads!”


Some in the crowd held giant flags of Greece, Portugal, Italy and Spain – four of the eurozone’s most heavily-indebted states.


The riot police – who sealed off parliament – later fired tear gas after the demonstrators attacked them with petrol bombs and flares.


Protests also took place in other big cities across Greece.


The Greek unions were staging what they described as the “mother of all strikes” – a 48-hour walkout which culminated on Wednesday.


The third major strike in just two months brought public transport to a halt and shut schools, banks and government buildings.


BBC News – Business



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Officials: New mass graves found in Ivory Coast
















ABIDJAN, Ivory Coast (AP) — Up to 10 new mass graves have been discovered near the site of a July attack on a camp for displaced people, officials said Tuesday, amid allegations that initial casualty totals were downplayed to mask killings carried out by the national army.


Rights groups claim summary executions were carried out by the Republican Forces of Ivory Coast, known by its French acronym of FRCI. Last month, officials found six bodies in a well close to the former campsite in the western town of Duekoue.













Government, army and U.N. officials toured 10 more graves in the same area on Saturday, said Paul Mondouho, vice-mayor of Duekoue. He said the graves had first been identified by civilians, and that officials did not know the number of bodies they contained because they had not yet been properly exhumed.


“People were suspecting the presence of bodies in these graves because of the smell coming out of them and because of the shoes we saw nearby,” Mondouho said.


Prosecutor Noel Dje Enrike Yahau, who is based in the commercial capital of Abidjan, confirmed that multiple new graves had been discovered but could not provide details. U.N. officials and the local prosecutor in charge of investigating the suspected killings could not be reached Tuesday.


U.N. spokeswoman Sylvie van den Wildenberg confirmed that U.N. forces helped Ivorian authorities secure a perimeter around 10 wells “similar to the one in which six bodies were found,” and that “some of those wells are suspected mass graves.”


She stressed that Ivorian authorities were leading the investigation but that the U.N. was able to provide assistance.


Army spokesmen could not be reached Tuesday. The Justice Ministry has previously vowed to investigate the discovery of the initial grave.


On the morning of July 20, a mob descended on the U.N.-guarded Nahibly camp, which housed 4,500 people displaced by violence in Ivory Coast, burning most of the camp to the ground. Officials said at the time that six people were killed.


The attack was prompted by the shooting deaths of four men and one woman on the night of July 19, according to local officials and residents. In response a mob of some 300 people overran the camp on the morning of July 20 after the perpetrators of the shootings reportedly fled there.


The victims in the July 19 attack lived in a district dominated by the Malinke ethnic group, which largely supported President Alassane Ouattara in the disputed November 2010 election. The camp primarily housed members of the Guere ethnic group, which largely supported former President Laurent Gbagbo.


Gbagbo’s refusal to cede office despite losing the election to Ouattara sparked months of violence that claimed at least 3,000 lives.


Albert Koenders, the top U.N. envoy to Ivory Coast, said one week after the attack that U.N. security forces had been inside and outside the camp at the time but that no Ivorian security forces were present. He said the U.N. forces decided not to fire at a large group of people that were attacking the camp in order to avoid “a massacre.”


Several witnesses have said soldiers and traditional hunters, known as dozos, participated in the attack on the camp. Both military and dozo leaders have denied the claims, saying they had tried to protect the camp.


In a statement released Friday, the International Federation for Human Rights, known by its French acronym of FIDH, said it had information — including the preliminary results of autopsies — confirming that the six bodies found in October were men who had been summarily executed by the army.


“The disappearance of dozens of displaced persons after the attack, as well as confirmation of cases of summary and extra-judicial executions, suggest a much higher victim rate than the official figures report,” said the organization, which counts Ivorian civil society groups among its members.


Duekoue was one of the hardest-hit towns during the post-election violence. The U.N. has established that at least 505 people were killed in and around the town, including during a notorious March 2011 massacre that claimed hundreds of lives and was allegedly carried out by fighters loyal to Ouattara.


Duekoue residents belonging to ethnic groups that supported Gbagbo have long complained about abuses carried out by the FRCI, with some pointing to the direct involvement of the local commander, Kone Daouda. FIDH said in its statement that Daouda had been transferred following the discovery of the grave in October, and called for him to be interrogated over the matter.


The group also said two FRCI members were being “actively sought” after failing to return to their barracks on Oct. 16, noting that they are believed to have fled to neighboring Burkina Faso.


Africa News Headlines – Yahoo! News



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Apple Hides its Second Faux-pology to Samsung
















For all that its products are (arguably unfairly) associated with elitism, Apple as a company has a pretty good track record when it comes to apologizing for screw-ups.


For example: When people complained about the iPhone 4′s poor reception, back in 2010, Steve Jobs took reporters on a tour of Apple’s antenna testing center, and gave everyone who bought an iPhone 4 a free case if they wanted one. More recently, Apple CEO Tim Cook publicly apologized for “the frustration [iOS 6's maps have] caused our customers,” and suggested they use Google’s app instead. The Wall Street Journal even reported that Scott Forstall — formerly Apple’s exec in charge of iOS — was asked to leave the company for refusing to be the one to apologize.













But when the British courts ordered Apple to apologize to Samsung for accusing the Korean tech giant of copying Apple’s designs? Cue the snark and passive-aggressiveness.


The lawsuit(s)


Apple filed suit against Samsung in numerous courts worldwide, claiming its designs infringed on Apple’s and seeking injunctions to ban them. (Pseudonymous Redditor MarsSpaceship published a graphic which ironically points out the uncanny similarities.) Courts in Australia and the United States ruled in Apple’s favor, and Samsung was ordered to pay more than $ 1 billion to Apple in damages.


Except in the United Kingdom


The courts in the UK not only found that Samsung’s designs don’t infringe, they ordered Apple to publicly apologize to Samsung on its website and in newspapers, in words big enough to be read. Apple faux-pologized by stating the facts — that the court found Samsung’s designs don’t infringe — then going on to point out how every other court in the world said otherwise, and quoting the judge when he said that the reason people wouldn’t mistake Samsung’s products for Apple’s is because “They are not as cool.”


Try again, Apple


The British courts were not amused, and told Apple to try it again. You can read Apple’s new “apology” on its UK website, assuming you can translate the legalese which calls an iPad a “Community registered design No. 0000181607-0001″ … and assuming you can find it.


Say what, now?


Another anonymous Redditor, Dismiss, discovered that Apple had reprogrammed its UK website to hide the apology to Samsung. Not only did it redesign the site’s front page, making graphics larger and pushing the legal text out of view, it used custom code to make it so that you have to scroll to see the apology, no matter how big your screen is. This effectively hides it from view for most people, unless they go out of their way to look for it.


Round three, coming up?


The UK courts haven’t responded to Apple’s second faux-pology, which may be partly because they aren’t aware of what Apple did yet. Either way, Apple seems to have come out the winner worldwide, and Samsung’s latest designs — like the Galaxy S III smartphone — are much less derivative of Apple’s.


Jared Spurbeck is an open-source software enthusiast, who uses an Android phone and an Ubuntu laptop PC. He has been writing about technology and electronics since 2008.


Linux/Open Source News Headlines – Yahoo! News



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Controversial “SEAL Team Six” Film Gives Nat Geo Highest Ratings in a Year
















LOS ANGELES (TheWrap.com) – “SEAL Team Six: The Raid on Osama bin Laden” might have drawn cries of partisan bias, but despite the controversy – or perhaps because of it – the film about the killing of the terrorist leader yielded big numbers with its premiere on National Geographic Channel on Sunday night, handing the network its best ratings in more than a year, and the sixth-highest ratings in the network’s history.


Sunday’s premiere of “Seal Team Six,” which was initially slated for theatrical release before getting snapped up by National Geographic Channel, posted a 1.4 rating in the 25-54 demographic – four times the network’s average in the Sunday 8 to 10 p.m. timeslot this season. In total viewers, the military dramatization drew 4.7 million people, with an average 2.7 million tuning in throughout the premiere.













“SEAL Team Six” posted the highest performance in the demographic since the August 2011 special “George W. Bush: The 9/11 Interview,” which drew a 1.7 in the 25-54 demo.


“We are overwhelmed that viewers across the country responded en masse to this socially relevant, factually based and entertaining film that highlighted the real inside story behind the manhunt for bin Laden and the heroes in our military and intelligence agencies,” said David Lyle, CEO National Geographic Channels. “It proved that no matter who Americans are planning to vote for, a good film is a good film, and we are happy to have had such success with our first original broadcast of a feature film inspired by real-life events.”


The film’s premiere date – just two days before the election – drew suspicion from some of the more conspiracy-minded segments of the population, who suggested that the premiere might have been planned to boost President Barack Obama‘s chances in the election by reminding the public of one of his major accomplishments during his first term. The criticism was fueled by the fact that unabashed Obama supporter Harvey Weinstein served as an executive producer on the film.


The network denied the allegations, with Lyle telling TheWrap last month, “The movie itself is its own defense; it’s a perfectly straightforward dramatization of what happened.”


TV News Headlines – Yahoo! News



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Illness, Injury Risks Linger After Sandy
















It’s been a week since superstorm Sandy unleashed flooding, power outages and wind damage on the east coast, and although recovery efforts are underway, doctors warn that residents are not out of the woods for new health hazards.


Mold Causes Breathing Problems













With flooding comes mold, and it can make victims sick even if it’s invisible, doctors warned.


“Even if you’re not allergic, mold spores tend to be irritating to the airways and can cause respiratory symptoms,” said Dr. David Rosenstreich, the director of Allergy and Immunology at Montefiore Medical Center. He said that an estimated 10 percent to 20 percent of the population is allergic to mold.


Dr. Christopher Portier, director of the Centers for Disease Control and Prevention’s Center for Environmental Health, said mold can trigger asthma and even cause headaches when it’s in a certain growth phase.


“Mold is going to be a serious problem unless you take care of it right now,” said Portier, who also directs the Agency for Toxic Substances and Disease Registry. “It’s very tricky to predict what’s going to happen with it and the bottom line is that you really don’t want it in your home.”


Visible mold can be wiped away with a bleach and water mixture. Never mix bleach and ammonia because the gas it creates can be deadly.


Portier suggested removing and discarding drywall and insulation that came into contact with floodwater and discarding items that can’t be washed. These include mattresses, carpeting, rugs and stuffed animals.


“It’s a long-standing problem. Even if you remove the visible mold, there still might be mold growth between the walls,” said Dr. Maureen Lichtveld, who chairs the environmental health department at Tulane University School of Public Health. In New Orleans, Lichtveld experienced the aftermath of Hurricane Katrina in 2005.


Lichtveld said children and elderly people with asthma and chronic lung disease are most likely to get sick because of mold. It’s also possible many children lost their asthma inhalers or didn’t have time to refill their prescriptions, putting them at greater risk for an attack.


In the months following Katrina, people in the gulf coast began complaining to their physicians about “Katrina cough,” which was thought to be caused by extra bacteria and mold in the air after floodwaters remained for six weeks. However, Lichtveld studied the cough and debunked it as a rumor. She blamed it on the combination of flu season and the dry autumn that followed Hurricane Katrina, resulting in more dust particles in the air.


Rosenstreich said he is most worried about children’s bedrooms, but Lichtveld said indoor environments at risk for mold contamination include school, day care and nursing homes.


Bacteria Causes Illnesses and Infections


Floodwaters are dangerous because they often contain raw sewage, as ABC News Chief Health and Medical Editor Dr. Richard Besser proved last week, when he tested a sample from lower Manhattan and found gasoline, e.coli and coliform.


But the health risk isn’t gone when the water recedes because contaminated puddles and surfaces remain, Portier said.


People, especially children, can get sick by touching contaminated objects and putting their hands in their mouths, causing gastrointestinal problems like diarrhea and vomiting, Portier said. They can also get infections from coming in contact with the bacteria with open sores and cuts, which can be “very difficult to treat.”


Katrina’s Health Lessons for Sandy Victims


“Keeping hands clean is very, very important.” Portier said. “If you’re not sure the water is safe, boil the water before you wash your hands with it.”


Rosenstreich added that people can’t get sick from simply breathing near the dirty water, but they should wear a mask and gloves when they come in contact with it. Even an unnoticed paper cut can become a big problem.


“I’m looking at my hands now, and I’ve got a million little cuts from cleaning my backyard,” he said. “People have to be really careful.”


Carbon Monoxide Poisoning from Back-up Generators


Superstorm Sandy left millions of people without power Monday night, prompting many of them to use back-up generators and coal stoves inside their homes to keep warm. But without proper ventilation, a cozy, alternative heating source can turn deadly when exhaust gets trapped and causes carbon monoxide poisoning.


So far, 439 carbon monoxide exposures have been reported to poison control centers in 12 states in the week since the storm, and four people in Pennsylvania died as a result, according to the CDC.


“It’s odorless,” Portier said. “You can’t tell it’s there, and then you start getting a headache, lay down and don’t get up.”


Carbon monoxide poisoning affects red blood cells, which carry oxygen throughout the body. However, the blood cells pick up carbon monoxide faster than they pick up oxygen, so when there’s a lot of carbon monoxide in the air, they don’t pick up enough oxygen. The result is tissue damage from oxygen deprivation that can ultimately result in death.


Wood stoves, fireplaces and even generators placed outdoors can produce lethal amounts of carbon monoxide if the ventilation is bad.


Sometimes, people in apartments put the generators outside, and open enough windows to keep their homes ventilated, but the exhaust poisons an unsuspecting tenant in another nearby apartment who wasn’t told to open his or her windows.


Home Repairs Gone Awry and Other Injuries


Dr. Joseph Guarisco, the chief of emergency services for Ochsner Health System in New Orleans, said he saw it all in 2005 when Hurricane Katrina filled his ER with patients for months after the storm.


“It’s going to be a new environment, and you have to be really mindful and that’s the key thing,” Guarisco said. “There are dangers lurking everywhere that were not there before the storm.”


For the first several weeks, Guarisco’s patients ran into problems because they were evacuated outside their health networks and couldn’t see their regular physicians or get their prescriptions. He saw many patients with chronic issues, such as renal failure, who couldn’t get access to normal treatment like dialysis.


He also saw hydration and nutrition issues, as well as patients who tried to ride out being sick on their own but eventually needed to see a doctor. Some patients tried to eat contaminated or unrefrigerated food, and came down with gastrointestinal ailments.


Once that subsided, the home repair injuries started pouring in.


“As people return [home] it kind of evolves to a different nature of patients trying to put things back together,” he said. “They fall off the roof into standing water, lots of eye injuries from branches and debris. Lots of soft tissue stuff.”


He said people who had never used power tools in their lives suddenly felt compelled to use power chain saws, power drills and nail guns. Many of them came in with hand injuries.


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Seniors/Aging News Headlines – Yahoo! News



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France to give businesses $25 billion tax break
















PARIS (AP) — France‘s government has promised €20 billion ($ 25 billion) in tax credits to businesses as part of a “competitiveness pact” that it hopes will spark innovation and lower unemployment – but falls short of calls in a recent report for a “shock” to the economy.


The announcement of the plan Tuesday came a day after a government-commissioned report — by Louis Gallois, former head of Airbus parent EADS — said the country’s ailing economy needed a big kick to stay globally competitive.













Prime Minister Jean-Marc Ayrault said the government‘s plan, which includes a €500 million fund to help struggling small businesses, would put the country “back at the heart of the world economy.”


“This new French model will consist of finding a way back to creating jobs and will no longer be financed by permanent deficits,” he said.


However, the government plan has fallen short of some of the recommendations in the Gallois report and raises fears that the Socialist administration of President Francois Hollande is not doing enough to revitalize the French economy.


For example, the $ 20 billion tax credit is to be implemented over three years — with €10 billion available in 2013 and the rest split over the following two years. Gallois recommended in his report for the government that the breaks should happen over one or two years to have the maximum effect.


The measure also takes the form of an income tax credit, rather than a reduction in the social charges employers pay on salaries, as Gallois had suggested. The government argues that its method is designed to have immediate impact, while deferring payment until 2014 when next year’s tax bill comes due. That, however, assumes that companies will start spending and hiring right away in anticipation of the credit.


France faces several major economic challenges, including an unemployment rate of 10.8 percent, and labor regulations that make firing so difficult it has discouraged hiring. Growth has ground to a halt, and several major companies have announced thousands of layoffs in recent weeks.


France has largely sidestepped the massive budget cuts and reforms undertaken by its neighbors, despite having one of the world’s highest proportions of state spending. Unions and companies are currently in discussions to overhaul the labor market – but the issues are so touchy in France that it’s unclear how far they’ll go.


Gallois warned in his report that the biggest problem in France is that because of high labor costs, companies have to slash prices in order to compete. Without high profit margins, companies have very little to invest in product innovation and quality. Ayrault promised that the pact would give companies more room to maneuver and address this problem.


The government’s plan focuses on small businesses, often the motors of innovation and employment. It calls for small businesses to receive special help to compete internationally, and billions of euros in a new public investment bank will be reserved for smaller companies.


The government also promised to reduce red tape and to limit changes to its tax and other policies over the next five years. France has a very complex tax code – a major thorn in the side of companies, especially small ones that spend tremendous resources to figure out what they owe.


Half of the money will come from spending cuts between 2014 and 2015. However, Ayrault did not detail what would be cut. The rest will come from new taxes, including a hike to most sales taxes – apart from basics like food which will benefit from a cut – in 2014.


The new measure follows a similar plan by former President Nicolas Sarkozy to lower the tax burden on companies via a blanket increase in sales tax. At the time, the Socialists campaigned against the plan and one of their first moves in office was to scrap it. The new government’s plan is similar, but lowers the sales tax on basic necessities, a move the Socialists hope will ensure the poorest people aren’t unduly burdened.


Economy News Headlines – Yahoo! News



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