Thursday, June 30, 2011

Hitler bunker row

30 June 2011 Last updated at 09:13 GMT By Bohdana Orlyuk BBC News, Ukraine Ruins at the site of the Wehrwolf bunker The Wehrwolf was one of a number of bunkers used by Hitler Plans in Ukraine to open a museum at the ruins of a bunker used by Hitler during World War II have provoked concerns it could become a shrine for neo-Nazis.

The decision by local authorities in the central city of Vinnitsa to turn the site of the Wehrwolf bunker into a tourist attraction has caused so much controversy that President Viktor Yanukovych requested on a recent visit to Vinnitsa that the matter be settled in a local referendum.

Originally, the museum had been due to open in May to coincide with the commemoration of victory over the Nazis.

But communist and socialist party activists opposed the idea, arguing that the creation of such a museum would be tantamount to spreading Nazi propaganda.

According to Lydia Zakusylova, who chairs the regional Communist Party: "Even before, with just a road sign pointing to the location of the Wehrwolf, neo-Nazis were flocking to the site.

"We had to mobilise the police, the local authorities and party members to stop them."

Mass grave

One proposal for the museum, she said, had some alarming features.

Continue reading the main story
They wanted to offer tourists the chance to try on uniforms, hang sub machine-guns around their necks and pose for pictures with Nazi flags in the background”

End Quote Lydia Zakusylova Ukrainian Communist Party official "Initially, there were suggestions to restore wartime dug-outs for PoWs," she told the BBC.

"But there were also plans to exhibit uniforms and flags of the officers and men of the Reich.

"They wanted to offer tourists the chance to try on uniforms, hang sub machine-guns around their necks and pose for pictures with Nazi flags in the background. This is blatant Nazi propaganda."

An official at the local Vinnitsa Museum, Kateryna Vysotska, acknowledged that such suggestions had been put forward by local collectors, but said they had been turned down.

She vehemently denied - following dozens of complaints from war veterans - that a "Nazi museum" was being set up.

In fact, Ms Vysotska said, the future museum will be a historical memorial to victims of Nazism, and will encompass a mass grave for those who died.

A Nazi soldier prepares to shoot a Jewish man at the side of a mass grave near Vinnitsa (undated image) Thousands of Nazi victims are buried in the region around Vinnitsa

More than 10,000 PoWs and local civilians who built Hitler's bunker were shot by the Nazis and are buried there, she said.

Local villagers were enlisted to dig trenches and clear out the woods. Even children were not spared hard work, felling trees.

"We met veterans and I told them that Hitler's bunker has become a tourist attraction irrespective of their wishes," she said.

"Visitors will keep coming and it would be better if our museum staff conduct proper guided tours."

Opposition to the future museum came not only from leftist politicians but from local villagers, who are reluctant to lose land where cattle now graze and children play.

Unexplored bunkers

The former bunker is about 8km (five miles) outside Vinnitsa. It was built as a military headquarters for the Eastern Front.

Construction of the bunker started in 1941 and finished in April, 1942. In March 1944, retreating Germans blew it up.

BBC map

The Wehrwolf was a smaller version of the Wolf's Lair, Hitler's fortified headquarters in Eastern Prussia.

It had its own power generating facility, an airfield, a swimming pool and a water supply.

There were 81 wooden houses above ground and three fortified bunkers underground, including the main one, with walls 2.5m (8ft) thick. These bunkers as yet have not been explored.

A pile of stones and the remains of the swimming pool are all that can be seen above ground.


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France names new finance minister

29 June 2011 Last updated at 15:46 GMT Francois Baroin Francois Baroin - formerly France's budget minister - succeeds Christine Lagarde as finance minister France has appointed a replacement for Christine Lagarde as finance minister, one day after she gained the job as the IMF's managing director.

He is 46-year-old Francois Baroin, whose previous job was as government spokesman and budget minister.

In the foreseeable future, his main job will be to work with other European finance ministers to find a solution to the eurozone's debt crisis.

French President Nicolas Sarkozy announced the appointment on Wednesday.

It came on the day that revised figures were issued for France's gross domestic product (GDP) for the first quarter of the year.

It showed that the French economy grew slightly less than expected in the first three months of 2011, but that it was still accelerating.

The Insee national statistics institute said that GDP in the first three months of the year was 0.9%, rather than the 1% growth it had previously estimated.

The institute is forecasting economic growth for the year of 2.1%, behind Germany's 3.7% projected expansion, but well above Spain's 0.7%.


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Toyota to recall 110,000 hybrids

30 June 2011 Last updated at 04:00 GMT Toyota is moving more quickly to resolve its latest setback

The world's biggest carmaker Toyota is to recall more than 110,000 hybrid vehicles over concerns about a problem with the power supply circuit.

The Japanese carmaker said the recall involves the Highlander hybrid and Lexus RX400h models globally.

The vehicles could stop suddenly because of an electrical problem leading to a blown fuse, the company said in a statement.

Toyota has recalled almost 12 million vehicles in the past 18 months.

The latest recalls are taking place mainly in the US, Japan and Europe, with some in Canada, Australia and South Korea, Toyota said.

The company said it was "working on obtaining the necessary replacement parts" and would get in touch with customers to get their vehicles inspected soon.

"The recalls that we announced cover all known problems regarding the component concerned," Toyota spokesperson Paul Nolasco told the BBC.

"We apologise for the inconvenience caused to our customers and hope to be able [to fix the problem] as soon as possible," he added.

'Full blown crisis' While the recall is likely to raise further questions about Toyota's quality controls, analysts said the carmaker is trying to ensure that it nips the problem in the bud.

"The good news is, they are not allowing it to become a full-blown crisis," said Vivek Vaidya at research group Frost & Sullivan.

He said there had been instances in the past of Toyota saying there were no issues with its vehicles when customers and safety regulators were reporting faults.

He said Toyota was trying to avoid getting into a similar situation again.

Reliability vs. localisation

The recall is the latest in a series of setbacks for Toyota, which has recalled more than 12 million vehicles in the past 18 months.

Analysts say the quest for rapid expansion had led to cracks appearing in the company's quality control system.

As Toyota grew from a Japanese brand to the biggest carmaker in the world, it needed to boost its production in order to meet the increased demand for its cars.

Highlander hybrid Toyota has recalled millions of vehicles globally in the past 18 months due to safety concerns

That resulted in the company setting up factories in various parts of the world to ramp up production - factories analysts say may not have been able to maintain Toyota's high standards.

"There might have been seepages in terms of quality standards," said Mr Vaidya.

As a result, its reputation for quality and reliability has taken a hit, especially in America where it was the only major carmaker to see sales fall in 2010.

"They have lost their reputation. There is no point hiding or denying it," Mr Vaidya added.

Losing steam

The problems for Toyota have been compounded further by the earthquake and tsunami in Japan.

Destruction caused by the twin disasters saw the carmaker suspend production, not only at its domestic plants but also at overseas factories.

As a result, earlier this month Toyota warned that its profits for the current financial year would fall by a third.

Analysts said the carmaker is now in danger of losing its position as the world's biggest carmaker.

"According to the various projections that we have, chances are very high that General Motors may regain its number one slot," Mr Vaidya said.

"They are on the up in the US and are doing very well in China and have revamped their line-up in other key markets like India.

"They are the only company that can challenge Toyota."


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German lenders 'join Greece plan'

30 June 2011 Last updated at 14:43 GMT Protester stands before a fire on Syntagma Square in Athens There have been violent protests against the austerity measures in Greece German lenders and insurers have agreed to participate in a plan to continue lending to Greece, according to German finance minister Wolfgang Schaeuble.

He was speaking after a private meeting of the country's main banks.

Mr Schaeuble said German institutions would contribute 3.2bn euros ($4.6bn, ?2.9bn) to the plan, details of which have yet to be finalised.

It comes after French banks agreed to relend about half of Greek debts they own coming due by 2014.

"I'm happy that the representatives of the financial sector have said they are ready to participate in a European package for a second aid programme for Greece," said Mr Schaeuble.

He added that he was confident that a solution would be reached by the time of a planned meeting of eurozone finance ministers in Brussels on Sunday, but that further work was needed on the plan over the coming weeks.

Bad banks

The chief executive of Deutsche Bank, Josef Ackermann, commented that the French plan could form a "basis" for a deal.

"We are of the opinion that Greece must be helped... we are ready to do so," he added.

The French plan is designed to make Greece's debtload more manageable in a way that would not be deemed a formal default.

If the deal is classified as a default by ratings agencies or credit derivatives traders, it could force European banks to recognise billions of euros in losses in Greek debts that they currently hold, putting their own solvency at risk.

German lenders were previously said to have resisted the long 30-year term of the new loans already backed by the French banks.

French banks have lent the Greek government some 15bn euros, according to data from the Bank of International Settlements, while German lenders hold more than 20bn euros of Greek sovereign debt.

However, unlike their French counterparts, the German lending is thought to be already mainly long-term.

The 3.2bn euros in funding to be reoffered to Greece by German creditors covers debts falling due by the end of 2014, Mr Schaeuble said.

Of this total, some 1.2bn euros was held by the "bad banks" - lenders that had failed during the financial crisis and been taken over by the government.

The news comes the same day that Greece's parliament passed a second vote on its austerity programme, which was needed to secure further financial support from other eurozone governments and the International Monetary Fund.

Athens witnessed protests and riots when the first vote, agreeing the austerity package in principle, was passed on Wednesday.

Countries most exposed to Greek debt

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Tsonga stuns Federer in five sets

By Mike Henson
BBC Sport at Wimbledon Venue: All England Club, LondonDate: 20 June-3 JulyCoverage: Live on BBC One, Two, 3D, HD, Red Button, online (UK only), Radio 5 live, 5 live sports extra; live text commentary from 0900 BST on BBC Sport website (#bbctennis); watch again on iPlayerJo-Wilfried Tsonga Tsonga floors Federer with amazing fightback

Jo-Wilfried Tsonga made a superb comeback to beat Roger Federer and end the third seed's hopes of a seventh Wimbledon title for another year.

The Swiss had never lost from two sets ahead at a Grand Slam, but went down 3-6 6-7 (3-7) 6-4 6-4 6-4 in the biggest upset of the tournament.

Federer took a second-set tie-break in style, but Tsonga took the next two sets with a break in each.

The 12th seed broke in the first game of the final set before serving out.

Continue reading the main story Tim Henman,
Former British number one and BBC commentator
It was an incredible performance and you felt at two sets to love it was business as usual for Federer. But Tsonga maintained his belief.

He will play Novak Djokovic in his first Wimbledon semi-final, while Federer was left to reflect on another quarter-final exit after last year's defeat by Tomas Berdych.

"I was just perfect today. I served just unbelievably," said Tsonga.

"But in the match before I felt really confident on this shot. I hope it will continue.

"I'm the kind of player who likes these big moments. So I hope I will have some more.

"Can I win Wimbledon? Why not?"

Federer, who had eased to his 29th consecutive Grand Slam quarter-final with 6-7 6-3 6-3 6-3 win over Mikhail Youzhny in the previous round, was philosophical after being denied a 29th Grand Slam semi-final appearance.

Continue reading the main story

"Except the score, many things went right," he said.

"I was pretty pleased with my performance today and at least it took a special performance to beat me. He played an amazing match and didn't give me much hope."

The prospects of the match going the full distance had seemed remote when Federer whisked through the opening set in 27 minutes and after a tight second swept into a 5-0 lead in the tie break.

But after taking Tsonga's opening service game of the match, Federer failed to force another break point as his opponent ground him down to secure a famous victory.

Tsonga had made more frequent and successful forays to the net in the second set, but seemed to lack the consistency to overhaul the 16-time Grand Slam champion.

'Crazy' win leaves Tsonga smiling

But the 26-year-old, who had lost four of his five previous matches against Federer, combined a flurry of winners with some steely resolve to turn the tide.

A jumping forehand winner survived a challenge to move Tsonga a break ahead in the third game of the third set before he defiantly held off Federer from 0-30 down in both his penultimate and final service games of the set.

Tsonga's ambitions of reaching the last four at Wimbledon for the first time came into sharp focus as he broke again early in the fourth.

A pair of winners, one each on the backhand and forehand side, brought up three break points on Federer's serve and Tsonga seized the final one with another clean winner.

Upbeat Federer promises to return after defeat

Landing with 78% of his first attempts and winning 80% of his second-serve points, Tsonga proved unassailable for the rest of the set and his 14th ace squared the contest.

Tsonga continued to confound expectations that his momentum would peter out.

After missing a straightforward volley at 0-30 in the first game of the decider, he forced Federer to stray into the net at the end of an exchange of forehands and cede the game.

Even under the pressure of the final point, 2008 Australian Open finalist Tsonga's serve was unrelenting and as Federer's return flew long the crowd rose to salute the Frenchman, who dropped to the turf in joy.


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Proposal to raise EU budget by 5%

30 June 2011 Last updated at 12:43 GMT EU flags The European Commission is also proposing a change in the way the EU gets its money The European Union could increase its budget by 5% under a controversial proposal unveiled by its executive, the European Commission.

The proposal - for the period 2014 to 2020 - comes despite calls from some EU member states for a budget freeze.

The commission is also looking to review budget rebates that some member states get - most notably the UK.

Hours after the proposal was unveiled, a UK government spokesman branded the planned budget "unrealistic".

"Britain and the EU's other largest payers made clear in December that the EU budget should be frozen, and we will stick to that," the Downing Street spokesman said.

"The EU has to take the same tough measures as national governments are taking across Europe to tackle public deficits. That means a restrained EU budget focused on the things that will get our economy growing."

The above-inflation increase proposed by the commission has also been criticised by France, Germany and the Netherlands. They and the UK want the budget capped at the EU inflation rate, currently 3.2%.

Hard bargaining ahead

Negotiations over the proposal are expected to run well into next year.

EU spending is negotiated in seven-year cycles and the commission's plans would set the 2014-2020 EU budget at one trillion euros ($1.48tn; ?898bn).

Under the plans, about 376bn euros would go to boosting underdeveloped areas of the EU and another 372bn euros to support Europe's farmers.

"This is an extremely serious, credible proposal, and to say 'no' to something which was only adopted two or three hours ago is not serious or credible," said European Commission President Jose Manuel Barroso.

The UK has received billions of pounds in EU rebates for more than 25 years. The justification was that, despite being a big net contributor to the budget, the UK got a relatively small share of EU farm subsidies. In 2011 the UK rebate will be about 3bn euros.

Mr Barroso warned: "There is no room for thinking about getting your fair share of your money back. The time has come to reform the system of rebates. It is of the utmost complexity."

In addition to the budget, the commission is looking to change the way in which the EU gets its money - including EU-wide VAT and a tax on financial transactions.

In the commission's view, for too long the budget has been plagued by arguments over the different national contributions and it is time for the EU to boost its own sources of revenue.

Correspondents say EU-scepticism has increased in member states in the face of expensive bail-outs for struggling euro countries like Greece, the Republic of Ireland and Portugal - even though those packages are not funded through the EU budget.


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Belarusian protesters rounded up

29 June 2011 Last updated at 23:58 GMT Plain-clothes police arrest a protester in Minsk, 29 June 2011 Plain-clothes police hauled protesters onto unmarked buses Belarusian police have arrested at least 100 people holding a "silent rally" against the government in the capital, Minsk, activists say.

About 3,000 people gathered near the square to demonstrate by standing together clapping their hands.

A BBC reporter in Minsk says protesters were violently rounded up and some journalists were attacked.

It is the fourth such protest in recent weeks against President Alexander Lukashenko and his economic policies.

The BBC's Oleg Boldyrev in Minsk says officials organised a disco in the main square in Minsk to try to block the protest, so demonstrators gathered in the area around the square despite torrential rain.

Shortly afterwards, plain-clothes police began to pick out protesters and dragged them violently away into a number of unmarked buses, he reports.

Some journalists were attacked, though not arrested. A BBC cameraman was wrestled to the ground by police.

The organisers of recent protests call themselves "the revolution via social network".

They have begun to demonstrate as the economic crisis in Belarus has worsened.

There has been panic buying as the country's currency has plummeted in value, and the government is seeking billions of dollars in loans from the International Monetary Fund and from Russia.

After Mr Lukashenko was voted in for a fourth term in December, authorities launched a crackdown on election-night protests.


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Russia condemns Libyan arms drop

30 June 2011 Last updated at 14:35 GMT Libyan rebels with a captured tank in Zintan, 25 June 2011 Libyan rebels have been battling government forces for months Russia has strongly criticised France for dropping weapons to Libyan rebels and demanded an explanation from Paris.

"If this is confirmed, it is a very crude violation of UN Security Council resolution 1970," Foreign Minister Sergei Lavrov said.

The African Union has also criticised the move, saying it risks causing a "Somalia-sation" of Libya.

The French military says it has dropped arms to Berber tribal fighters in the mountains south-west of the capital.

Mr Lavrov said Russia had formally requested information from France about the move, to check that it "corresponds with reality".

Mr Lavrov is due to meet French counterpart Alain Juppe in Moscow on Friday.

'Somalia-sation'

Moscow abstained from the UN Security Council vote in March that authorised an international mission in Libya to protect civilians.

Russia and China have both criticised the Nato campaign in recent weeks, saying it had gone beyond the remit of UN resolution 1973.

Another resolution, 1970, had imposed an arms embargo on Libya.

But US and UK officials have argued that resolution 1973 could nonetheless allow weapons to be supplied to rebels fighting to topple Libyan leader Muammar Gaddafi.

French officials have said the arms dropped to rebels earlier this month were supplied for the protection of civilians threatened at the time by pro-Gaddafi forces.

The French ambassador to the UN said they only included "self-defence weapons".

France is also said to have been concerned at the stalemate in the Libyan conflict, which began in February.

Libyan rebels have recently been making gains and hope to advance on Tripoli from the existing front line on the other side of the Nafusa mountains about 65km (40 miles) from the capital.

A report in Le Figaro newspaper said the French-supplied weapons included rocket launchers and anti-tank missiles, and that France had not informed its allies about the move.

Earlier, African Union chief Jean Ping listed a number of "problems" linked to France's decision to air-drop weapons to the rebels.

"The risk of civil war, risk of partition of the country, the risk of 'Somalia-sation' of the country, risk of having arms everywhere... with terrorism.

"These risks will concern the neighbouring countries," said Mr Ping, speaking at an African Union summit in Equatorial Guinea.


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Weapons drop

29 June 2011 Last updated at 16:57 GMT Jonathan Marcus By Jonathan Marcus BBC Defence and Diplomatic Correspondent Libyan rebels near Zintan, 28 June 2011 The rebels in western Libya have been making advances in recent days The French military are presenting their decision to parachute in weaponry to the Libyan rebels in the western Nafusa mountains as a response to a specific local situation.

Civilians, they say, were encircled by government forces who refused to allow the opening up of an aid corridor to reach them.

A French military spokesman says weapons including assault rifles, machine guns and rocket launchers were air-dropped earlier this month.

A report in today's Le Figaro newspaper suggests that Milan anti-tank missiles may also have been included.

Arming the rebels is of course controversial, not least because in February, UN Security Council resolution 1970 established an arms embargo that appeared to apply to all sides in Libya. It talked about banning sales to the Libyan nation - the Libyan Arab Jamahiriya.

However there were those, not least the US Secretary of State Hilary Clinton, who argued that the subsequent UN resolution 1973 - the one that allowed all necessary means to be used to protect Libyan civilians - actually amended or overrode the earlier UN decision.

Legal differences

Speaking in London in late March, she said that "there could be a legitimate transfer of arms if a country should choose to do that".

Continue reading the main story
Despite its efforts to frame its own arms supplies in terms of protecting civilians, it looks as though the French government has made a strategic decision ”

End Quote But the US ambassador to the UN, Susan Rice, subsequently made it clear that Washington had not yet made such a decision.

British Prime Minister David Cameron took a similar position, noting that "the arms embargo applies to the whole territory of Libya, but at the same time UN Security Council resolution 1973 allows all necessary measures to protect civilians and civilian-populated areas."

Mr Cameron told the British parliament: "Our view is that this would not necessarily rule out the provision of assistance to those protecting civilians in certain circumstances."

That is not the interpretation many international legal experts put on Security Council resolution 1973. Indeed, it actually calls on governments "to ensure strict implementation of the arms embargo" established by resolution 1970. As is often the case, different experts differ on the exact legal interpretation.

Britain has been supplying the rebels with non-lethal assistance - things like uniforms, rations and radios. There has been a small British military team in Bengazi alongside the rebel headquarters, advising on logistics and other organisational matters.

Capable fighters

Nonetheless, weapons have been reaching the Libyan rebels in the east of the country, funded by Qatar and other Gulf States.

The article in Le Figaro suggests that some of these have also been flown in, to improvised airstrips in the west.

Despite its efforts to frame its own arms supplies in terms of protecting civilians, it looks as though the French government, whose aircraft fired the first shots in the Western-led intervention over Libya, has made a strategic decision.

The war is dragging on. Unease in some Nato countries is growing. Libyan rebels in the east of the country do not have the military means to march on the capital, Tripoli.

But the largely Berber forces in the Nafusa Mountains in western Libya have proved capable fighters. They have been advancing significantly in recent days.

They are much closer to the Libyan capital and thus better able to bring direct pressure on the Gaddafi regime.


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Moldova 'uranium smugglers' held

29 June 2011 Last updated at 22:05 GMT Some of the seized uranium-238 Moldovan authorities seized another form of uranium - Uranium-238 - last year Moldovan police have arrested six people suspected of trying to sell a type of uranium that can be used in nuclear weapons.

Those held wanted to sell more than 1kg (2.2lb) of uranium-235 with a value of at least $20m (14m euros; ?12m), an official said.

The were conflicting reports as to whether the men were accused of trying to sell the uranium to an African country, or to an African national.

Four of the suspects are Moldovan.

Two others are from the breakaway Trans-Dniester region, one of whom also holds Russian citizenship, Vitalie Briceag, an official from the interior ministry, told reporters on Wednesday.

Police seized 1.8kg of uranium-238 in Moldova's capital, Chisinau, last year.

Uranium-238 is the most commonly found, naturally occurring form of the substance.

The type needed for nuclear fuel and weapons is the less common uranium-235.

"The container with uranium has been in Chisinau for a week," said Mr Briceag.

"All that time intermediaries were looking for buyers. The container, 20cm [8in] long and 40cm [16in] in diameter, was found at one of the detained men's apartments."

Germany, Ukraine, and the US had helped Moldova with the investigation, he said.

The Associated Press quoted Mr Briceag as saying the uranium had come from Russia and the suspects were trying to sell it to a North African country.

But other reports cited Mr Briceag as saying the men wanted to sell the uranium to a Muslim citizen of an unnamed African state.

It was not clear to what level the uranium was enriched.


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Haye makes Klitschko trainer wary

By Ben Dirs
BBC Sport in Hamburg Venue: Imtech Arena, Hamburg, GermanyDate: Saturday, 2 JulyStart: From 2200 BSTCoverage: Live text commentary on BBC Sport website; live on Sky Box Office (subscription required)Haye 'in best shape of career'

Wladimir Klitschko's trainer Emanuel Steward has conceded his charge has not met anyone with David Haye's confidence and belief for almost six years.

Briton Haye, the WBA champion, and the Ukrainian IBF and WBO title-holder meet in Saturday's heavyweight fight.

"Haye brings to the ring, speed, power and the mindset of a winner," Steward told BBC Sport in Hamburg.

"He's confident and that's something Wladimir hasn't experienced since his first fight with Sam Peter [in 2005]."

Trainers ready for battle

Steward added: "There's a whole new energy that Haye brings that Wladimir has not had to deal with since then."

Klitschko was knocked down three times by Peter, before going on to outpoint the Nigerian, but the 35-year-old three-time world champion has won nine of his 10 fights since inside the distance.

The two protagonists engaged in media workouts on Wednesday, where the psychological warfare continued.

Klitschko's camp arrived earlier than planned and attempted to block Haye's path to the venue, which led Haye's camp to seek out an alternative entrance.

There followed the bizarre sight of Klitschko's entourage watching ringside as Haye went through a light workout, during which the Englishman, a right-hander, was throwing punches from a southpaw stance.

Earlier, Haye continued his campaign to wind up Klitschko by tweeting a link to a film featuring Adolf Hitler, with mock subtitles added which refer to preparations for their bout.

Haye, 30, has continually sought to goad his rival in the build-up with various tasteless comments and stunts - and Haye claims the gamesmanship has got to Klitschko.

Continue reading the main story

"I'm in a good place but Wladimir looks rather wound up," Haye told BBC Sport.

"He's never cussed me in the past but on Monday [at the head-to-head news conference] he was effing and blinding, which was nice, it showed he was out of his comfort zone.

"Everything I've done has worked perfectly. Even Manny Steward was real riled up and had to take a back seat. Their whole team seems rattled and Wladimir's going to get rattled on Saturday night, I'm sure."

But Steward said he was confident Klitschko, who has 55 wins and 49 knockouts from 58 pro bouts, would keep his cool at the Imtech Arena, where 50,000 are expected on fight night.

"Wladimir being more motivated and emotionally charged for this fight is something I enjoy," said Steward, who also trained Lennox Lewis and Thomas Hearns, among many others.

"He will not get away from his boxing strategy, it just means he will let his muscles go a lot faster than in the past.

"He will come in with confidence and with a strategy learnt from his defeats against [Corrie] Sanders and [Lamon] Brewster. What he's gained in almost 60 fights is knowing how to stay patient and how to follow orders. He will be OK."

Steward added that he doubted Haye has a new strategy for the fight, as has been suggested by Haye's trainer Adam Booth.

"David, regardless of what he might say is going to do, will come out and fight the way he fought [Nikolay] Valuev [from whom Haye won the WBA belt in 2009] and all his other fights against big guys.

"He'll move out of the way and explode at select times and stand at a distance. Wladimir is going to have to force the fight."


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Thousands staging UK pensions strike

30 June 2011 Last updated at 15:03 GMT Ben Brown reports from London, Colette Hume reports from Wales and James Cook has the latest from Scotland

Hundreds of thousands of public sector workers have gone on strike across the UK over planned pension changes.

Teachers from three unions have walked out and about 40% of state schools in England and Wales have been closed or partially shut.

The Public and Commercial Services union, which includes police support and border staff, are also on strike.

The government says the plans are "fair to taxpayers" and other unions are continuing with negotiations.

It has condemned the strike as has the opposition, although Labour leader Ed Miliband has accused ministers of mishandling negotiations with the unions.

The action by the National Union of Teachers (NUT), the Association of Teachers and Lecturers (ATL) and the University and College Union (UCU) affects England and Wales.

The unions say the proposals would mean more work and contributions for a reduced pension.

Department for Education data suggests that 11,114 of the 21,500 state schools in England were hit by the walkouts.

It said in total, 5,679 schools were shut, and another 4,999 were partially closed. Some 201 academies and city technology colleges were also shut, while 235 remained partially open. In Wales, according to local authority figures, more than 1,000 out of 1,800 schools were either closed or partially closed.

Continue reading the main story

A two-mile protest procession from Lincoln's Inn Fields to Westminster made slow progress along Aldwych, the Strand and Whitehall, usually some of London's busiest thoroughfares.

Women, men and children in sandals, summer dresses and shorts waved flags, blew whistles - and booed as Downing Street came into view.

The mood was carnival-like but the message was one of anger. Teachers don't want to work until 68 but do want the final salary pension they were promised when they started out.

The media, they said, had painted a false picture of an unpopular strike. Onlookers held mixed views. A builder wished them luck, others said that, as taxpayers, they couldn't support the costs.

The security operation was huge - three police helicopters, hundreds of officers stationed along the route and 20 leading the procession itself.

So far, they seem to have had a quiet day, with many protesters reporting a peaceful march. As a small rally was held in Westminster, a group sat down outside the Department for Work and Pensions offices and began chanting "DWP, pension thief" to a drum beat.

The impact of the co-ordinated industrial action began to be felt at ports and airports on Wednesday evening, when some UK Border Agency staff walked out from 1800 BST.

Arriving passengers, but not departing ones, were told to expect delays. However, most airports and ports are not currently reporting any difficulties.

Mark Serwotka, general secretary of the PCS, said his members were left with no choice but to take action as the government was not prepared to "compromise on any of the central issues of the strike".

"While they are talking, they are not negotiating," he told BBC Radio 4's Today programme.

The walkouts by the PCS, which has around 260,000 members, are being staged across the UK.

The Metropolitan Police Commissioner Sir Paul Stephenson says 90% of police staff who handle calls from the public have not turned up for work and as a result officers were responding more slowly to requests for helpAbout 30,000 workers are on strike in Scotland, including staff at the Scottish parliament, the passport office in Glasgow and civilian employees at defence establishments such as HMS Naval Base FaslaneIn Wales, all national museums have been closed to the public and the DVLA is operating a reduced serviceHome Office employees are among 3,000 people striking in Northern Ireland. Belfast International Airport has warned of possible flights delays as immigration and customs officers join the actionThere are PCS pickets outside the Old Bailey but the courts are open. At Inner London Crown Court, there are no trials sitting with juries and the PCS union says other Crown, magistrates and coroners courts are disruptedThe Maritime and Coastguard Agency said there have been some walkouts but all coastguard stations are "operational and appropriately manned"The Department of Work and Pensions said 18 of the 750 Jobcentre Plus offices across the country were closed, and 40% of staff were on strike In London, where police leave has been cancelled, union leaders and activists marched to Westminster for a rallyIn Liverpool, some 537 out of the 550 staff at the passport office are on strike. Most civil servants at Ministry of Defence and Criminal Records Bureau offices in the city have also walked out

The government said that about 100,000 of the UK's 500,000 civil servants were on strike.

Cabinet Office Minister Francis Maude said: "What today has shown is that the vast majority of hard working public sector employees do not support today's premature strike...

"Reform of public sector pensions is inevitable, but we will ensure that public sector pensions will still be among the very best, with a guaranteed pension which very few private sector staff now enjoy. But they will be paid later because people live longer."

Earlier, he told BBC One's Breakfast: "People are going to be scratching their heads, wondering why teachers and some civil servants are going on strike while discussions are still going."

Writing on Twitter, Mr Miliband said: "These strikes are wrong at a time when negotiations are going on. People have been let down by both sides - the Govt has acted recklessly".

Meanwhile, Kevin Courtney, deputy general secretary of the NUT, said: "We realise that it's very disruptive for parents and we do regret that. We had hoped to reach a settlement before the industrial action, but the government isn't serious about talks."

Continue reading the main story Schools: Based on information about 75% of schools in England, one third to close, one third to open as normal and one third to be "partially affected". In Wales, more than 1,000 out of 1,800 closed or partially closedJob centres and courts: Will remain open "wherever possible"Benefits: Little disruption expected as 98% of claims are automatedCustoms/immigration: Trained managers to be redeployed to ensure full checks are conducted and borders remain secureCivil service: One in five workers will strike. Staff to be allowed to bring their children into workMiles Templeman, director general of the Institute of Directors told the BBC he believes the strikes have the potential to damage the UK economy.

He said: "We want to be seen as the best country for people to invest in - these sort of messages send something very different.

"The private sector has had to wake up to the tough realities of pension provision in a rapidly changing world, and the public sector must do the same."

BBC political editor Nick Robinson said that people on both sides of the negotiations, as well as Labour Party figures with good union connections, "continue to believe that a deal is the only way that will see the resolution of this - and that a deal is possible".

TUC general secretary Brendan Barber told a rally in Exeter: "The living standards of low and medium-paid public sector workers are being hammered in the name of reducing the deficit... Meanwhile those who caused the crisis are getting off scot free."

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Freed hostages return to France

30 June 2011 Last updated at 08:46 GMT The two men were greeted by a warm welcome when they arrived

Two French journalists held hostage by the Taliban in Afghanistan for 18 months have arrived in France, flying into an airport near Paris.

Cameraman Stephane Taponier and reporter Herve Ghesquiere were freed in circumstances that remain unclear.

The pair were kidnapped with Afghan colleagues near Kabul in December 2009 while on assignment for French TV.

Mr Ghesquiere said they were both in good health. "We were never threatened with death, never beaten," he said.

The two Frenchmen, who were working for French state television network France-3, had become some of the longest-held Western hostages in Afghanistan.

"There are lots of hostages in the world, I feel for those who are held hostage, and those who died in operations when they tried to save them," the forty-seven-year-old added.

"Until you have been a hostage, you can't understand but I really feel for them because it is over for us but still going for them."

'No regrets'

The pair, who had been embedded with French troops in Afghanistan, decided to gather material from an area known locally as "the Black Hole", according to the BBC's Christian Fraser in Paris.

In April 2010, after posting a video of the hostages on the internet, the Taliban said they had submitted a list of prisoners to French authorities that they wanted freed in exchange for the two journalists.

Mr Taponier, 46, and Mr Ghesquiere and one of the three Afghan colleagues with whom they were seized, interpreter Reza Din, were released on Wednesday. French officials have said that no ransom was paid for the men.

The other two Afghan translators had been released some time ago, French officials said.

After stepping on to the tarmac, the two embraced waiting relatives and shook hands with French President Nicolas Sarkozy and his wife.

Mr Ghesquiere, who was held in solitary confinement for the last eight months, said he did not regret his decision to work in Afghanistan.

"It's what I always wanted to do. I don't want to go back to Afghanistan tomorrow but [...] I want to do this job now more than ever."


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Monaco set for Albert's wedding

30 June 2011 Last updated at 11:11 GMT Prince Albert and his fiance Charlene Wittstock at a ball 30 July 2010 The wedding of Prince Albert and Charlene Wittstock will be a glittering affair, with guests from around the world Up to 3,500 guests are to attend lavish celebrations in Monaco to mark the wedding of Prince Albert II and South African swimmer Charlene Wittstock.

Friday's civil wedding will be followed a day later by a religious ceremony at the royal palace on the Mediterranean.

Ms Wittstock, 33, who swam in the 2000 Sydney Olympics, will become Her Serene Highness, Princess Charlene.

The palace has denied reports in the French press that Ms Wittstock was getting cold feet about the wedding.

The guest list includes heads of state and royalty, from French President Nicolas Sarkozy to the heir to the Spanish throne, as well as fashion designer Karl Lagerfeld and supermodel Naomi Campbell.

Charlene Wittstock will wear a Giorgio Armani gown.

Rumours denied

The couple will then proceed to the nearby chapel of Saint Devote, the patron saint of Monaco, where Ms Wittstock will leave her bouquet.

The room in Monaco's palace where the civil ceremony of the royal wedding of Prince Albert II and Charlene Wittstock will be held The civil ceremony will be held in this lavish room at the palace

But the event has been clouded by press reports suggesting that Ms Wittstock had come close to returning to South Africa, after learning secrets about Prince Albert's private life.

The royal family dismissed the claims, as well as suggestions she had only turned back after royal aides persuaded her to stay.

"These rumours have no other goal than to severely damage the reputation of the monarch and thereby that of Miss Wittstock and severely undermine this happy event," said the palace.

Ryk Neethling, a fellow South African Olympic swimmer said: "I just spoke to her assistant and whatever the story is, it's not true.

"I called her and asked if everything is okay, and they said everything is fine."

Charlene Wittstock was born in Zimbabwe's second city of Bulawayo, moving to South Africa with her family at the age of 12.

Two Olympians

She represented South Africa at the Commonwealth Games before competing in Sydney as part of the women's medley relay team that finished fifth in the final.

Prince Albert II, 53, has been the ruler of Monaco since the death of his father, Prince Rainier III, in 2005.

He was also an athlete, competing in bobsleigh in five Olympics.

The Prince and Ms Wittstock made their relationship public by appearing together at the Turin Winter Olympics of 2006, after meeting in 2000 at a swimming event in Monaco.

She ended her swimming career in 2007 and has travelled widely for charity events with her fiance.

The tiny principality, which covers about 2 square km (less than one square mile), is the world's smallest independent state after the Vatican City.

It has seen glamorous weddings in the past.

In 1956 the Hollywood beauty Grace Kelly married Prince Rainier.

The wedding ushered in an unprecedented era of glamour that ended with her tragic death in a car crash in 1982.


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French X Factor won by Englishman

29 June 2011 Last updated at 12:14 GMT Matthew Raymond-Barker: 'I don't have any idea why I won'

A British student who was knocked out in the early stages of the UK's X Factor has gone on to win the French version of the show.

Matthew Raymond-Barker, a 22-year-old language student from London, won in the final on Tuesday night.

He decided to give X Factor a second shot while he was studying in Toulouse.

He told BBC World Service that being English in a French competition may have helped him stand out.

Mr Raymond-Barker and his challenger Marina D'Amico, aged just 17, performed alongside international stars Beyonce and Bruno Mars in the final.

He beat Ms D'Amico by just 1,300 votes, and was visibly shocked when the result was announced live on French TV.

He thanked all those who had helped and supported him throughout the competition, before exclaiming, in English, "I don't believe it!"

Second chance

On the night of the final he sang Tik Tok by Kesha, a medley of Love The Way You Lie and Don't Stop the Music by Eminem and Rihanna, Vivre Ou Survivre by Daniel Balavoine, and Michael Jackson's Man in The Mirror.

Though he clearly struggled to hit some of the highest notes on the latter, the jury praised his energy, his presence on stage, and his progress throughout the competition.

Matthew Raymond-Barker sung in both English and French throughout the contest.

He admits his spoken French was "a bit iffy" when he first arrived in the country, but he is now fluent, and thinks the French appreciated the "massive effort" he made with the language.

And he was much more relaxed second time round.

"I thought I've got nothing to lose - it's going to be a good experience whatever happens.

"I just had the aim to go one step further than I did in the UK, but it obviously worked out a lot better!"

Not the 'lazy' way

"I was just trying really, really hard to do my best here," Mr Raymond-Barker told the BBC.

"I'm not the best singer in the world, believe me, but I just try really hard.

"I know people say that X Factor is the really quick way to do it - like it's the lazy way - but it can show your determination.

Matthew Raymond-Barker performing on stage in the French X Factor. Photo copyright M6/FMF/Abacapress.com The jury praised the British singer's energy

"I'm not going to pretend it didn't hurt when I was rejected from the UK competition - I cried on the way back on the Tube!"

So what's next for Matthew Raymond-Barker?

"I think I'll be staying in France for the time being, and then hopefully in the future I can spread my wings and fly to many different countries."

He has won a recording contract and his first single, Vivre Ou Survivre - which he sang last night - will be released on Saturday.


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French food fight for Brazil firm

29 June 2011 Last updated at 07:34 GMT Pao de Acucar supermarket in Sao Paulo Pao de Acucar was founded in Sao Paulo in 1948 Two French food giants are locked in a battle to take over Brazil's number one retailer, Grupo Pao de Acucar.

Proposals to merge Pao de Acucar with the local operations of Carrefour are opposed by rival Casino, which already has a stake in the Brazilian group.

The proposed Pao de Acucar-Carrefour deal would create a firm with a 27% market share and sales of more than $40bn (?25bn) a year.

Pao de Acucar is already Latin America's second-biggest retailer.

As well as its Pao de Acucar and Extra supermarket chains, it also has a majority stake in the Ponto Frio and Casas Bahia chains that sell electrical goods and furniture.

Pao de Acucar's shares rose 12.6% on Brazil's main stock exchange on Tuesday after news of the deal emerged.

Secret talks

Brazilian investment fund Gama announced the merger plan on Tuesday. Under the terms of the offer, it will combine Pao de Acucar and Carrefour's Brazilian assets into a new company, to be called Nova Pao de Acucar.

Gama said investment fund BTG Pactual and the BNDES state development bank had committed $2.8bn to the deal, as well as $710m in debt financing.

The deal followed talks between Carrefour and Pao de Acucar chairman Abilio Diniz, whose family founded the firm in Sao Paulo in 1948.

Since 1999, Pao de Acucar has been part-owned by another French firm, Casino, which denounced the proposal to merge with Carrefour as "illegal".

Casino said it was disappointed with Mr Diniz for negotiating a deal without its authorisation.


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Wednesday, June 29, 2011

Greece passes key austerity vote

29 June 2011 Last updated at 15:35 GMT The BBC's Jon Sopel describes the battle between the police and rioters as one of "cat and mouse"

The Greek parliament has voted in favour of a drastic package of austerity measures intended to save the country from defaulting on its debts.

The proposed tax hikes and spending cuts have been deeply unpopular with the Greek public.

A nationwide 48-hour strike is under way and violent clashes are continuing in the streets of the capital, Athens.

Greece is heavily in debt and the package is needed to win the latest tranche of a 110bn-euro (?98bn) loan.

MPs passed the measures by 155 votes to 138.

They will hold a second vote on Thursday aimed at law reforms that would allow the package to be implemented.

'No time to step back'

Ahead of the vote, PM George Papandreou urged MPs to approve the package by consensus.

Continue reading the main story

Total Greek debt

An old drachma note and a euro note Greece is about to get a second bail-out from the EU, aimed at helping pay its debts until 2014. It also has to agree more cuts as part of the deal.

The economy

The opening ceremony at the Athens Olympics The Greek economy is in dire straits. Retail sales have fallen 18% since 2008 and manufacturing output has dropped 30% in the same period.

Working population

A defunct restaurant for sale in central Athens Greeks retire on average at 61. Tax evasion is widespread. Until 2010, public sector workers received two months extra pay a year in bonuses.

EU demands

A man with a bag of coins walks past the headquarters of the Bank of greece_crisis To meet EU demands, Greece must sell 50bn euros-worth of public assets by 2014, equal to 20% of GDP. Public sector pay is being cut 15%.BACK {current} of {total} NEXT He had faced wavering support from within his governing Panhellenic Socialist Movement (Pasok), which has a slim majority, with 155 seats out of 300 in parliament. But in the end, only one Pasok deputy voted against the package.

Mr Papandreou says his austerity plan is the only way to get Greece back on its feet.

"We must avoid the country's collapse at all costs. Now is not the time to step back," he told deputies.

Were his 28bn-euro austerity package to be rejected, Greece could run out of money within weeks, as the EU and the International Monetary Fund want the measures implemented before they release more funds to help Greece pay off its vast debts.

Top EU officials welcomed the result as a "vote of national responsibility", saying it had pulled Greece away from the "very grave scenario of default" while paving the way for a second aid package.

"The country has taken an important step forward along the necessary path of fiscal consolidation and growth-enhancing structural reform," European Commission President Jose Manuel Barroso and European Council President Herman Van Rompuy said in a joint statement.

'Unfair but necessary'

Shortly after the vote, dozens of rioters using ladders broke into the first floor of a nearby office on Syntagma Square before being driven out by police, witnesses said.

Continue reading the main story
No one in Greece believes the tax increases, lay-offs, privatisations will ever be fully implemented. ”

End Quote image of Gavin Hewitt Gavin Hewitt BBC Europe editor Clashes are continuing outside parliament on Syntagma Square between masked protesters - armed with rocks and sticks - and riot police firing tear gas and stun grenades. Injuries have been reported on both sides.

The air is thick with plumes of tear gas and smoke emanating from a fire lit by arsonists near the finance ministry on Syntagma Square.

Greek unions are angry that the government's austerity programme will impose taxes on those earning the minimum wage, following months of other cuts that have seen unemployment rise to more than 16%.

The vote covered the first part of Greece's austerity package, focusing on raising taxes to secure some 14.09bn euros over the next five years and introducing 14.32bn euros in public spending cuts.

The package is needed to secure the next instalment of the country's 110bn-euro bail-out to be released by the EU and IMF.

Ahead of Wednesday's vote, the governor of Greece's central bank, George Provopoulos, said a 'no' vote would be "suicide" for the country.

Thursday's vote is over the implementation of different parts of the package, such as tax rises and the sale of state assets.

Continue reading the main story June 29: Parliament approves new austerity package June 30: MPs to vote on details of implementing packageJuly 3: EU will sign off latest bail-out payment to Greece - 12bn euros - if both votes are passedJuly 15: Without the 12bn euros, Greece will defaultOnce passed, European officials will start to finalise the details of a second bail-out, worth an estimated 120bn euros, designed to help Greece pay its debts until the end of 2014.

The impact of the Greek vote would be felt worldwide said Herman Van Rompuy, president of the EU Commission, on Tuesday.

Recently appointed Finance Minister Evangelos Venizelos acknowledged that the cuts were "unfair", though absolutely necessary.

But the main opposition leader, Antonis Samaras of the New Democracy party, said the thinking behind the austerity package was flawed, and that tax rates should be lowered rather than raised in order to stimulate the economy.

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Auditors fault EU farm payments

29 June 2011 Last updated at 13:53 GMT Farming near Rennes, northern France - file pic A farm near Rennes: France gets the biggest portion of EU agricultural subsidies The EU's main audit body says agricultural subsidies - the biggest item in the EU budget - often go to people who do little or no farming.

A new report by the European Court of Auditors complains of deficiencies in the Single Payment Scheme (SPS), which distributed about 29bn euros (?26bn) of subsidies in 2009.

It says payments "have become divorced from current farming conditions".

The EU is considering how to reform its Common Agricultural Policy (CAP).

The auditors have made various recommendations to the European Commission aimed at improving the SPS - the biggest area of spending in the CAP.

They say the SPS ought to direct aid to "active" farmers and provide more balanced funding so that a small number of big landowners no longer get the lion's share.

They also call for clearer definitions of land eligible for subsidies and of farming activities.

The report complains that the 17 EU countries applying the SPS use about 20 different variants of the payment scheme, making it too complex.

Absentee farmers

The SPS does not operate in 10 EU countries, which joined the EU in 2004 and 2007. All 10, except Cyprus, are former communist countries and they use a different system of farm support, called SAPS.

The auditors say the SPS has encouraged farmers to respond better to market demand and has benefited EU agriculture as a whole.

But they say the way the scheme's beneficiaries were defined "permitted persons or entities not, or only marginally, engaged in an agricultural activity to benefit from SPS payments".

In some cases landowners have carried on receiving the payments even though their land is worked by tenant farmers who do not get the subsidy.

In the UK the auditors found some individual beneficiaries receiving up to 1m euros annually or even more in SPS aid without having any agricultural activity on their land.

The report also highlights examples of non-agricultural land qualifying for SPS payments in France, Italy and Spain.

The European Commission has said EU farm spending should no longer be based on previous subsidy levels for farmers.

But the commission believes subsidies are still needed to protect Europe's food supplies and rural diversity. The proposals are contained in an EU blueprint for farming beyond 2013.


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Near miss for space station crew

28 June 2011 Last updated at 20:24 GMT By Jonathan Amos Science correspondent, BBC News ISS A fragile beauty - the International Space Station could be endangered by even a small piece of passing junk A piece of debris has narrowly missed the International Space Station (ISS), forcing its six crew members to go to their escape capsules and prepare for an emergency evacuation back to Earth.

Officials said the debris came within 335m (1,100ft) of the platform.

The crew were given the all clear to return to work minutes after the object passed by at 1208 GMT.

The junk was of unknown size but experts say even a small object could do considerable damage to the ISS.

The US space agency's (Nasa) Associate Administrator for Space Operations, Bill Gerstenmaier, said it was the closest a debris object had ever come to the station. An analysis was now under way to try to understand its origin, he added.

"We don't know what it was. It doesn't have an ID; it's just listed in our tables as 'unknown'," he told reporters.

The Russian space agency had earlier explained: "A situation arose linked to unidentified 'space trash' passing very close to the space station. The crew was told to take their places aboard the Soyuz spacecraft."

Soyuz capsules are used to ferry crew to and from the orbiting platform, and enough vehicles are always present so that they can be used as "lifeboats" if an emergency arises.

Before getting into the capsules, the crew closed all the hatches on the ISS.

The station is currently manned by three Russians, two Americans and a Japanese astronaut.

Dangerous fragments

A Russian official said that only 10% of all objects in Earth's orbit are satellites, while the rest is rubbish: spent rocket stages, defunct satellites, acceleration blocks and other debris.

Scientists estimate that there are hundreds of thousands of junk fragments in space of up to 10cm (four inches) in size, but there are many millions more pieces that are smaller.

Even fragments a few centimetres in width are a hazard because they travel at many thousands of kilometres per hour.

Normally, the station can use thrusters to move out of the way of a piece of junk, but this alert was raised too late for such a manoeuvre.

"We're working with our Russians partners to see if we can shorten the timeline to do manoeuvres," Mr Gerstenmaier said.

"Today, it takes us a couple of days to actually get the manoeuvre timeline loaded in station and to try to do the manoeuvre to avoid debris. We're working with Russians to make some software changes where we can do that in a much more expedient manner, so if we get late notification of another object - we'll have the ability to move."

Three crew members were forced briefly to follow the same proceedure in an incident in 2009.

The ISS is currently flying at over 380km altitude. It was pushed to this height recently to take it clear of residual air molecules at the top of the atmosphere that tend to drag it downwards over time. Station managers would not wish to push it much higher because that would take it closer to known debris fields and more of the space radiation that can be harmful to the health of astronauts.

The station is a $100bn project that has been under construction about 220m (350km) above the Earth since 1998. Five partners are involved - the US, Russia, Japan, Canada and Europe (10 nations coordinated through the European Space Agency).


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France gave Libyan rebels weapons

29 June 2011 Last updated at 15:37 GMT Libyan rebels near the western town of Chakchuk, 4 June 2011 Libyan rebels have been making military gains in the west of the country France has air-dropped weapons to rebels fighting Col Muammar Gaddafi's troops in Western Libya, the French military has confirmed.

Light arms and ammunition were sent to Berber tribal fighters in the Nafusa mountains in early June, it said.

Earlier, a report in Le Figaro newspaper said the arms included rocket launchers and anti-tank missiles.

France, a leading force in the Nato operation in Libya, did not inform its allies about the move, Le Figaro said.

"We began by dropping humanitarian aid: food, water and medical supplies," said Col Thierry Burkhard, spokesman for the French general staff.

"During the operation, the situation for the civilians on the ground worsened. We dropped arms and means of self-defence, mainly ammunition," he told AFP news agency.

He said the arms were "light infantry weapons of the rifle type", dropped over a period of several days "so that civilians would not be massacred".

UN resolutions

The BBC's Christian Fraser in Paris says the statement is likely to bring further criticism from the likes of Russia and China, who believe Nato and its allies have already gone beyond the remit of UN resolution 1973, which authorised international military action in Libya.

The US has argued that resolution 1973 allows countries to provide arms to rebels despite an earlier resolution - 1970 - that imposed an arms embargo on the whole of Libya.

Resolution 1973 authorises "all necessary measures" to protect civilians, "notwithstanding" the arms embargo in resolution 1970.

France played a prominent role in pushing for military intervention in Libya, and French and British planes have led the air strikes over the country that began in late March.

Qatar, which has supported the Nato-led operation in Libya, has been supplying arms to rebels mainly through their eastern stronghold in the city of Benghazi.

France, the UK and Italy announced in April that they were sending military advisers to Benghazi.

'Light tanks'

The decision to drop arms to the Libyan rebels was reportedly taken following a meeting in mid-April between French President Nicolas Sarkozy and the Chief of Staff of the Libyan rebels, Gen Abdelfatah Younis.

France is said to have been concerned at the stalemate in a conflict between the rebels and pro-Gaddafi forces that started in February.

The report in Le Figaro suggested that 40 tonnes of weapons were sent to western Libya, including "a few light tanks" that were smuggled in across the Tunisian border.

The newspaper also reported that it had seen a confidential defence map showing two makeshift airstrips in rebel-held towns, built to receive small aircraft from the Gulf that can move French arms closer to the front.

The rebels have recently been edging forward in Libya's north-west, and are hoping to push on to Tripoli from the frontline, currently on the other side of the Nafusa mountains and about 65km (40 miles) from the capital.


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Journalists freed in Afghanistan

29 June 2011 Last updated at 14:51 GMT A placard calling for the release of Stephane Taponier and Herve Ghesquiere in Bormes-les-Mimosas, southern France, 19 May 2011 France saw a campaign for the journalists' release Two French journalists abducted in Afghanistan 18 months ago have been released, French President Nicolas Sarkozy has announced.

Herve Ghesquiere and Stephane Taponier were freed along with their interpreter, Reza Din, Mr Sarkozy said in a statement in Paris.

They are reportedly now at a French base in north-eastern Afghanistan.

Expressing delight, Mr Sarkozy thanked Afghan President Hamid Karzai for his handling of the hostage situation.

Prime Minister Francois Fillon told the French parliament the freed Frenchmen were at the Tagab base in Kapisa province.

They were "in good health" and would be back on French soil "in a few hours", he said.

There was no immediate word about two other Afghans who were abducted along with the three men released.

The Frenchmen, who were working for France 3 television, were abducted on 30 December 2009 in Kapisa, about 60km (37 miles) from the Afghan capital, Kabul.

They were kidnapped by Taliban insurgents, AFP news agency reports.

The first anniversary of their abduction was marked by vigils in France, where their photos were projected on to the Arc de Triomphe in Paris.

Campaigning group Reporters Without Borders had called on President Sarkozy to make their case a "national priority".


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China and Germany ink $15bn deals

29 June 2011 Last updated at 04:35 GMT Wen Jiabao with German Chancellor Angela Merkel China has been looking to foster stronger ties with its key trading partners China and Germany have signed trade deals worth $15bn (?9bn) following meetings between the two country's leaders in the German capital Berlin.

Chinese Premier Wen Jiabao and German Chancellor Angela Merkel also targeted an increase of bilateral trade to 200bn euros ($284bn; ?178bn) over the next five years.

Germany is by far China's biggest trading partner in the European Union.

China and Germany are the two biggest exporters in the world.

Premier Wen said the focus of the meeting was to "boost the growth potential of bilateral trade... and to once again double our bilateral trade volume in five years".

The deals include an agreement between Airbus and China Aviation Supplies for delivery of 88 A320 planes with a list price of $7.5bn.

'Helping hand' Premier Wen's Europe trip comes at a time when many countries in the region are facing sovereign debt problems.

As countries like Greece struggle to pay back debt and restructure their finances, China has offered some reprieve to the region's economies.

"China has expressed support for Europe at various times," he said.

"In other words, when Europe is in difficulty we will extend a helping hand from afar," he added.

However, the Chinese premier did not give details of the amount of debt it may purchase or which countries' debt it may look at.

"We will, according to need, definitely purchase certain amounts of sovereign debt," Premier Wen said.

China has vast amounts of cash available, with its foreign exchange reserves at a record high of more than $3trn.

"The exchange reserves put China in a strong position to help Europe," said Duncan Innes-Ker, of the Economist Intelligence Unit.

Diversifying exposure

However, analysts said that China's support for countries in the middle of the European debt crisis was also driven by its own ambitions.

About a quarter of China's foreign exchange reserves are invested in euro-denominated assets, according to various estimates.

"It has a strong interest in the euro not collapsing as a result of the current crisis," said Mr Innes-Ker.

"It is willing to take risks to achieve its long-term goal that the euro serves as an alternative to the dollar as a reserve currency," he added.

Mr Innes-Ker said that the longer China maintains the link between the yuan and the US dollar, the more its economy will be affected by US monetary policy.

"China's dependence and exposure to the US dollar creates issues for its own economy to the extent that it's a hostage to US monetary policy," he said.


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Pope uses iPad to send first tweet

29 June 2011 Last updated at 09:50 GMT Pope Benedict launches the Vatican's new news and information portal, 28 June The Vatican has suffered from poor communications Pope Benedict XVI has sent his first tweet to launch a Vatican news and information portal on the 60th anniversary of his ordination.

His message read: "Dear Friends, I just launched News.va Praised be our Lord Jesus Christ! With my prayers and blessings, Benedictus XVI."

The Pope, 84, tapped an iPad to activate the portal and send the tweet.

Twitter, Facebook and YouTube are all now being used by the Vatican to spread its Christian message.

Its Twitter account has more than 33,000 followers but "follows" nobody.

Images released by the Vatican showed the Roman Catholic leader seated at a table with officials standing by to help him use the tablet computer.

'News.va, The Vatican Today'

The launch took place on Tuesday GMT but was aimed to coincide with the feast day of St Peter and Paul on Wednesday, which is also the anniversary of Pope Benedict taking Holy Orders.

Pope's first tweet The tweet went out on Tuesday GMT

An article on the ordination led Wednesday's News.va news page, recalling how Joseph Ratzinger, then 24, was ordained on a "radiant summer day" along with 42 other young men.

Under a logo which reads "News.va, The Vatican Today", the new portal offers "an exclusive, multimedia presentation of all the other communications websites of the Holy See", including Vatican Radio, the newspaper l'Osservatore Romano and the Misna missionary news agency.

Pope Benedict's six-year papacy has been bedevilled by poor communications.

Embarrassing clarifications had to be issued over such thorny issues as his 2005 speech about Islam and violence, and his stance on condoms and HIV.

Earlier this month, the Vatican announced plans to set up a new e-learning centre to help safeguard children and victims of sexual abuse by clergy, as part of its efforts to deal with damaging scandals.

Last month the Pope issued new orders to bishops, making clear that any suspected abuse by priests must always be reported to police.

Reacting to the first papal tweet, some Twitter users joked about the iPad, asking if the Pope had a sponsorship deal.

A tweet from another user, Shanna Quinn in Chicago, read: "The pope is on twitter...this probably means my mom will be on twitter very soon."


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Christine Lagarde named IMF chief

28 June 2011 Last updated at 20:57 GMT Christine Lagarde Christine Lagarde will start her five-year term at the IMF on 5 July France's Finance Minister Christine Lagarde, 55, has been named the first woman to head the International Monetary Fund (IMF).

Ms Lagarde fought off Mexico's Agustin Carstens for the job, although an IMF statement said that both candidates "were well qualified".

She received backing from America and Europe and key emerging market nations, including China, India and Brazil.

The post became vacant following the resignation of Dominique Strauss-Kahn.

"The results are in: I am honoured and delighted that the board has entrusted me with the position of MD of the IMF!" Ms Lagarde said via Twitter minutes after the announcement.

In a statement, the IMF said that its 24-member board regarded both candidates as highly suitable for the job, but had decided on Ms Lagarde "by consensus".

'Leadership'

Messages of support poured in, with UK Chancellor of the Exchequer George Osborne saying he was "delighted" and French President Nicolas Sarkozy calling it "a victory for France".

Mr Carstens said he had sent Ms Lagarde his "best wishes and full support", adding that he hoped she would "make meaningful progress in strengthening the governance of the institution".

Continue reading the main story
I will make it my overriding goal that our institution continues to serve its entire membership”

End Quote Christine Lagarde IMF Managing Director US Treasury Secretary Timothy Geithner said: "Minister Lagarde's exceptional talent and broad experience will provide invaluable leadership for this indispensable institution at a critical time for the global economy."

Although Ms Lagarde is the first woman to become managing director since the IMF was created in 1944, she maintains the tradition that the post is held by a European.

It has been convention that Europe gets the IMF, while an American gets the top job at the World Bank.

Mr Carstens, Mexico's central bank governor, campaigned on a platform that this time the IMF chief should reflect the emergence of developing nations as an economic force.

However, Ms Lagarde toured the world drumming up powerful support in the Middle East, Asia and South America.

Her appointment looked effectively sealed on Tuesday when America and Russia came out in her favour.

Immediate task

In a signal to IMF members who fear she will be overly-focused on Europe, Ms Lagarde said in a statement: "I will make it my overriding goal that our institution continues to serve its entire membership.

The IMF's David Hawley announces Christine Lagarde's appointment

"As I have had the opportunity to say to the IMF board during the selection process, the IMF must be relevant, responsive, effective and legitimate, to achieve stronger and sustainable growth, macroeconomic stability and a better future for all."

However, when Ms Lagarde begins her five-year term on 5 July, her immediate task will be to deal with the efforts of the IMF and European Union to resolve the Greek debt crisis and prevent contagion to other eurozone economies.

In a television interview minutes after her appointment, Ms Lagarde pressed Greece to move quickly to push through unpopular austerity measures that the IMF and EU have said are a prerequisite for further aid.

On a day of riots and protests throughout Greece, she said: "If I have one message tonight about Greece, it is to call on the Greek political opposition to support the party that is currently in power in a spirit of national unity."

Meeting Strauss-Kahn

Mr Strauss-Kahn resigned abruptly on 18 May after being arrested in New York for an alleged sexual assault. He denies the charges.

Ms Lagarde said that following the turmoil of his arrest, she wanted to unify the IMF's staff of 2,500 employees and 800 economists and restore their confidence in the organisation.

She also said she wanted to meet Mr Strauss-Kahn, if permitted to by the US government.

"I want to have a long talk with him, because a successor should talk with their predecessor," Ms Lagarde said during an interview on French television channel TF1.

"I can learn things from what he has to say about the IMF and its teams," she said.

Before becoming France's finance minister in June 2007, she was minister for foreign trade for two years.

Prior to moving into politics, Ms Lagarde, a former champion swimmer, was an anti-trust and employment lawyer in the US.


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UK told to keep Somali criminals

29 June 2011 Last updated at 08:24 GMT Somali government troops fighting in Mogadishu, 27 May 11 Somali government troops (pictured) are fighting Islamist forces for control of Mogadishu The UK must not deport two Somalis convicted of serious crimes because to do so would endanger their lives, the European Court of Human Rights says.

The Strasbourg judges said the UK's duty to protect the two from torture or inhumane treatment was "absolute".

The pair, aged 24 and 42, were served with deportation orders after being convicted of burglary, threats to kill, robbery and dealing in class A drugs.

The ruling sets a legal precedent for 214 similar UK cases involving Somalis.

Abdisamad Adow Sufi (24) and Abdiaziz Ibrahim Elmi (42) are being held at immigration detention centres in the UK.

In 2007 they appealed to the Strasbourg court, arguing that they would face death or serious injury if the UK deported them to the war-ravaged capital Mogadishu.

The seven judges accepted that there would be a violation of Article 3 (prohibition of inhuman or degrading treatment) of the European Convention on Human Rights if the pair were sent back to Mogadishu.

The court ruling said the judges "reiterated that the prohibition of torture and of inhuman or degrading treatment or punishment was absolute, irrespective of the victims' conduct".

"Consequently, the applicants' behaviour, however undesirable or dangerous, could not be taken into account."

UK 'very disappointed'

The court told the UK to pay Mr Sufi 14,500 euros (?13,000) and Mr Elmi 7,500 euros (?6,716) for costs and expenses.

The UK still has three months in which it can appeal for the case to be re-examined.

The UK Border Agency said it was "very disappointed" at the ruling and was considering its legal position.

"This judgment does not stop us continuing to pursue the removal of foreign criminals who commit a serious crime," it said in a statement. "Nor does it find that all Somalis are in need of international protection."

Somalia has not had a functioning national government for 20 years.

The Islamist al-Shabab group controls much of southern Somalia and has been fighting interim government forces for control of Mogadishu in recent months.


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Too shy, won't fly - German police vulture is no ace cop

29 June 2011 Last updated at 15:28 GMT By Stephen Evans BBC News, Berlin Vulture with German handler at Walsrode, 26 Apr 10 The vultures' habits had seemed like a perfect fit for the job of detective Police in Lower Saxony, Germany, who decided to teach a vulture to sniff out corpses of missing people have run into difficulty two months into training.

Reasoning that it could fly over miles of wasteland, then descend where it found a missing person, they had wanted to fit it with a transmitter.

But it transpires that Sherlock, as the bird is known, is not very interested.

On top of that, it is shy, confuses human with animal remains and actually prefers to walk, Spiegel magazine says.

Sherlock has been in training in the Walsrode bird park on Lueneburg Heath near Hanover, along with two vulture side-kicks also named after famous fictional detectives, Columbo and Miss Marple.

Shy bird

It had seemed such a great idea. What if the police had sniffer dogs that could fly? Dogs do not have wings, they realised, but birds do.

But according to Spiegel: "Sherlock's success has been limited.

"While he can locate a stinking burial shroud which the police gave the bird park to use for training purposes and which is clearly marked with a yellow plastic cup, Sherlock doesn't approach the shroud by air.

"He prefers to travel by foot."

Furthermore, the bird is yet to perform outside the familiar confines of the zoo.

"The bird is naturally anxious, and he would hide in the woods or bolt," according to his trainer.

The vulture also finds it hard to distinguish between dead people and dead animals, which is a problem in the vast heathland of that part of Germany.

'Time-saver'

When the idea was unveiled two months ago, there was much fuss in the media.

The police explained they had got the idea from a documentary on birds - reportedly, a BBC wildlife documentary.

"It was a colleague of mine who got the idea from watching a nature programme," policeman Rainer Herrmann told the media proudly.

"If it works, time could be saved when looking for dead bodies because the birds can cover a much vaster area than sniffer dogs or humans."

Apparently, birds generally rely mostly on sight to locate food but vultures like Sherlock have a keen sense of smell.

The police decided on turkey vultures which are indigenous to the Americas but which lived also in the zoos of Europe.

They are not pretty with their bright bald heads but they do have an ability to locate carrion. If they want to.

Sherlock does not - or not if it involves too much effort.

At the time the scheme was launched, the idea was that Holmes would be the senior detective teaching Miss Marple and Columbo.

"But the young ones can't do anything besides fight with each other," Spiegel quoted a trainer as saying.


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Dutch MPs target ritual slaughter

28 June 2011 Last updated at 16:58 GMT A butcher talks on his mobile phone outside a halal butchers in Amsterdam (31 March 2011) Muslim and Jewish communities said the legislation infringed on their religious freedom The Dutch lower house of parliament has passed a law effectively banning the ritual slaughter of animals, in a move condemned by Muslim and Jewish groups.

The legislation states that all animals must be stunned before being killed.

But the Islamic dhabiha and Jewish shechita methods of ritual slaughter require them to be fully conscious.

The legislation was proposed by an animal rights party with two MPs, which argued that failing to stun the animals subjected them to unnecessary pain.

But debate over the matter swiftly became a focus of animosity towards the Netherlands' 1.2 million-strong Muslim community. The country's Jewish population is comparatively small at 50,000.

Following months of debate a last minute concession was offered - the Muslim and Jewish communities will have a year to provide evidence that animals slaughtered by traditional methods do not experience greater pain than those that are stunned before they are killed.

However, observers say finding such proof will be virtually impossible.

The bill must still be approved by the upper house of parliament before it can become law.

Religious freedom

Before Tuesday's vote, the head of the Party for the Animals, Marianne Thieme, denied the bill was an attack on religious minorities.

She argued the law was necessary because scientists agreed that animals suffered pain or fear if they were not stunned before slaughter, and because current regulations allowed exceptions for ritual slaughter.

Continue reading the main story
One of the first measures taken during the Occupation [by Nazi Germany during World War II] was the closing of kosher abattoirs”

End Quote Binyomin Jacobs Dutch Chief Rabbi "If you stun an animal before it's been killed, the animal won't experience its own death," she told the BBC World Service. "If you have new techniques to ensure there's no unnecessary suffering then you have to use it."

"Three-thousand years ago, there were no anaesthetics," she added. "But since then we have developed more humane methods."

In a rare show of unity, the Muslim and Jewish communities condemned the legislation and said it infringed on their religious freedom.

"One of the first measures taken during the Occupation [by Nazi Germany during World War II] was the closing of kosher abattoirs," Dutch Chief Rabbi Binyomin Jacobs told MPs during a debate in The Hague.

"If we no longer have people who can do ritual slaughter in the Netherlands, we will stop eating meat," he added.

The Party for the Animals said two million animals were subjected to ritual slaughter every year in the Netherlands, although the organisation Halal Correct said only 250,000 were killed without being stunned beforehand.

To make meat kosher for Jews or halal for Muslims, animals must be slaughtered while still awake, by swiftly cutting the main arteries and veins in their necks with sharp knives, and then allowing the blood to drain out.


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UK has 'Greek contingency plan'

28 June 2011 Last updated at 10:41 GMT Sir Mervyn King Sir Mervyn would not reveal any details of the Bank's contingency plan regarding a Greek default The Bank of England has a contingency plan in place in case Greece defaults on its debt payments, its governor Sir Mervyn King has said.

Speaking before the Treasury Committee, he would not say how likely he thought a default would be, but added that the markets put the risk at 80%.

Sir Mervyn said the concern was how UK banks could be affected by knock-on effects of any Greek default.

However, he did not reveal any details of the Bank's contingency plan.

Transparency

Sir Mervyn said the uncertainty regarding French and German banks was the extent to which any losses they encounter in Greece might spread to the UK banking sector.

This is as a result of UK banks having lent money to their counterparts in France and Germany.

Sir Mervyn said there needed to be more transparency over the issue.

While he welcomed Greece receiving bail-out funds from fellow eurozone nations and the International Monetary Fund, he said this was not a solution to the country's problems.

Instead, he said Greece simply had to start exporting more, and importing less to turnaround its economy.

"Buying time appears attractive… but if the underlying problems have not changed, the problems come back in an even more extreme way," Sir Mervyn said.

'Unattractive combination'

Sir Mervyn King and fellow members of the Bank of England's Monetary Policy Committee (MPC) were also questioned by MPs on domestic economic matters.

Regarding inflation, Sir Mervyn said the UK currently faced "an unusual combination, and a very unattractive one" of flat wages at the same time as higher global energy prices.

At present, both main measurements of inflation continue to be well above the Bank of England's 2% target rate. The Consumer Prices Index measure of inflation was 4.5% in May, and the Retail Prices Index rate was 5.2%.

MPC member David Miles added that inflation will likely stay "markedly above the target level" for the next two years, before falling.

He added: "The key thing here is, is there evidence that looking further down the road, households clearly believe inflation will not come back down to target at any time? I don't think that's the case."


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Greece vote protests turn violent

28 June 2011 Last updated at 17:05 GMT The BBC's Jon Sopel: "There are moments of calm then the violence flares"

Police have fired tear gas in running battles with stone-throwing youths in Athens, where a 48-hour general strike is being held against a parliamentary vote on tough austerity measures.

Thousands of protesters have gathered outside parliament in the capital where public transport has ground to a halt.

PM George Papandreou has said that only his 28bn-euro (?25bn) austerity plan would get Greece back on its feet.

If the package is not approved, Greece could run out of money within weeks.

Without a new plan in place, the EU and IMF say they will withhold 12bn euros of loans which Greece needs to repay debts due in mid-July.

'Declared war'

More than 5,000 police officers were deployed in the centre of Athens as the protesters marched towards parliament.

The rally started peacefully, but escalated into running skirmishes on the fringes of the main demonstration.

Continue reading the main story BACK {current} of {total} NEXT Hundreds of protesters with faces covered by scarves or gas-masks started throwing stones, debris and bottles at the police in one corner of the central Syntagma Square.

Police fired tear gas and stun grenades to keep them back.

Two communications vans with mobile telecoms transmitters were daubed with graffiti condemning the media and banks before being set alight by protesters who had apparently mistaken them for satellite TV trucks.

Four police officers and four demonstrators were injured in the scuffles, police said, while a number of demonstrators were treated for breathing difficulties.

Some 18 people were detained by police, Reuters reported.

There were also skirmishes as trade unionists tried to persuade anarchists to leave the square, saying their violent protests were only harming the aims of the demonstrations, says the BBC's Jon Sopel in Athens.

The general strike has halted most public services, banks are closed and hospitals are operating on skeleton staff.

Airports are shutting for hours at a time, with air traffic controllers walking out between 0800 and 1200 (0500-0900 GMT) and 1800 and 2200 (1500-1900 GMT).

A number of flights were also cancelled at Athens international airport.

Trains, buses and ferries are also affected.

In Athens, the metro is the only form of public transport which will work "so as to allow Athenians to join the planned protests in the capital", metro drivers said.

Continue reading the main story image of Malcolm Brabant Malcolm Brabant BBC News, Athens

It was a very Greek riot, complete with an angry, Orthodox cassock-clad priest in among the anarchists.

Impervious to clouds of tear gas and flying chunks of marble, smashed by sledgehammer-wielding youths from the walls of a fountain, the priest went face to face with riot police, telling them to leave the square.

He seemed to be preaching to the converted. Although 5,000 police were supposedly deployed in Athens to protect the city centre, they surrendered Syntagma Square to the anarchists, moving back to form defensive lines around the parliament.

The promises of the Socialist government to never again allow a repeat of the riots of 2008 went up in flames.

Protesters blockaded the port of Piraeus, near Athens, which links most Greek islands with the mainland.

"The situation that the workers are undergoing is tragic and we are near poverty levels," said Spyros Linardopoulos, a protester with the PAME union at the blockade.

"The government has declared war and to this war we will answer back with war."

The unions are angry that the government's austerity programme will impose taxes on those earning the minimum wage, following months of other cuts which have seen unemployment rise to more than 16%.

Polls suggest that between 70% and 80% of Greek people oppose the austerity plan.

"We're opposed to what they're trying to do to us," said bank worker Kali Patouna.

"We know very well that these measures will be our tombstone. They will have extreme consequences for workers and for everyone on all social levels."

'Flawed' plans

The austerity package and implementation law must be passed in separate votes on Wednesday and Thursday.

Continue reading the main story June 29: Greek parliament to vote on a new austerity packageJuly 3: Eurozone deadline. EU will sign off latest bail-out payment to Greece - 12bn euros - if austerity package has passedJuly 15: Default deadline: Without the 12bn euros it needs to make debt repayments, Greece will defaultIf the measures are passed, the next instalment of Greece's 110bn-euro bail-out will be released by the European Union and International Monetary Fund.

European officials will also start to finalise the details of a second bail-out - worth an estimated 120bn euros - designed to help Greece pay its debts until the end of 2014.

EU President Herman Van Rompuy said the impact of the Greek vote would be felt worldwide.

"There are decisive moments and the coming hours will be decisive, crucial for the Greek people, but also for the eurozone and the stability of the world economy," AFP quoted Mr Van Rompuy as telling the European parliament on Tuesday.

The BBC's Chris Morris in Athens says defeat for the government this week would send ripples of anxiety right across the eurozone, with Greece facing the prospect next month of becoming the first member state to default on its debts.

Continue reading the main story
We are handling our country's history right now and nobody can play with that”

End Quote Evangelos Venizelos Greek Finance Minister Mr Papandreou has warned that failure to secure the new loans would mean that national coffers could be empty within days.

The recently-appointed Finance Minister Evangelos Venizelos acknowledged that the cuts were "unfair", but said they were absolutely necessary.

He called on MPs to back the measures, saying both the government and the opposition were "running out of time".

"We are handling our country's history right now and nobody can play with that," he said.

But the main opposition leader, Antonis Samaras of the New Democracy party, said the thinking behind the austerity package was flawed and that tax rates should be lowered rather than raised in order to stimulate the economy.

The outcome of the debate is uncertain. Mr Papandreou faces opposition from within the governing Panhellenic Socialist Movement (Pasok), with two MPs saying they may oppose the bill.

The party has a slim majority, with 155 seats out of 300 in parliament.

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