Remarks as Prepared for Delivery by Attorney General Holder at the African Union Summit

KAMPALA, Uganda, July 25 /PRNewswire-USNewswire/ — Excellencies, Distinguished Heads of State and Government, Honorable Ministers, Leaders of the African Union, Leaders of the African Commission, Ladies and Gentlemen. I am honored to be with you all. I am grateful for this opportunity to salute, and to help strengthen, the critical work of the African Union. And I am proud to bring greetings from President Barack Obama and the American people.

President Obama recognizes the growing importance of the African Union; he understands that a stronger Africa means a stronger America; and he appreciates the work that you are leading to strengthen political and economic cooperation across this continent.

Today, I want to extend my personal thanks to Chairperson Jean Ping and the AU leadership for helping to facilitate my visit and welcoming my participation. I was pleased to receive Chairperson Ping and his delegation in Washington a few months ago, during the first high-level U.S.-AU bilateral meetings, and I look forward to continuing our discussions.

I also want to thank President Museveni and the citizens of Kampala for welcoming me to this beautiful city and for hosting this important summit.

It is fitting that we’ve gathered here in Uganda – the nation that has been called “the pearl of Africa” – to determine how the potential of Africa and her people might be unlocked.

In the last 30 years, the people of Uganda have made progress that, once, had seemed impossible – the restoration of law and order; the reopening of schools and colleges; and the reconstruction of government, health care, and financial systems. The fact that we are here today – and that Kampala is now a center of international politics, learning, culture, and commerce – is a testament to the strength and resilience of the Ugandan people.

This strength has never been more obvious. This resilience has never been more inspiring.

I am proud to stand with the people of Uganda – and with her partners across this continent and around the world. But I am deeply sorry that we are now bound, not only by friendship and partnership, but also by a shared loss, a shared threat, and a shared grief.

Two weeks ago today, Uganda awakened to a new danger and began a new chapter in a history that, too often, has been scarred by violence. As the World Cup’s final match was being played, men, women, and children across Kampala were enjoying life’s greatest blessings – the joys of friendship and fellowship. That evening, the eyes of the world were fixed upon this continent – bearing witness to historic progress, to hard-won unity and, then suddenly, to heartbreaking tragedy.

Fourteen days after bombs ripped through the Kyandondo Rugby Club and the Ethiopian Village restaurant, we now know the statistics that have been assigned to this tragedy – 74 killed, 85 wounded. But we will never be able to measure the grief, the anger, and – above all – the compassion that followed these attacks. Al-Shabaab – a terrorist group operating in Somalia with ties to al-Qaeda – has claimed responsibility for murdering and injuring these innocent victims. And its leaders have infamously described these bombings as warranted acts of vengeance. But make no mistake: these attacks were nothing more than reprehensible acts of cowardice, inspired by a radical and corrupt ideology that systematically denies human rights, devalues women and girls, and perverts the peaceful traditions and teachings of a great religion.

America is among many nations now in mourning – grieving the loss of all of those defenseless victims, including one of our own citizens, and praying for the others who were injured. My nation is also among many working to bring the perpetrators of these vicious acts to justice. To assist Uganda in its investigation, we’ve provided a team of FBI forensic experts and offered both technical assistance and intelligence resources.

The United States also recognizes that ending the threat of al-Shabaab to the world will take more than just law enforcement. That is why we are working closely with the AU to support the African Union’s Mission in Somalia. The United States applauds the heroic contributions that are being made on a daily basis by Ugandan and Burundian troops, and we pledge to maintain our support for the AU and the AU Mission in Somalia.

As our countries work together, with the support of the international community, my hope is that we will also always remember what was irreplaceably lost here in Kampala. Individuals with families. Individuals with futures. And individuals afflicted with the most tragic of fates – dying while doing good.

To his students, Nate Henn was known as “Oteka” – The Strong One. He had traveled from the United States to help Uganda’s most vulnerable children, to provide them with an education, and to reveal to them a simple truth: that great futures await them. Tragically, Nate’s own future has been lost to the ages.

Stephen Tinka, a Ugandan journalist and radio presenter, and one of the many Ugandans who were killed, was known for his infectious personality and his distinctive voice – a voice now silenced.

Ramaraja Krishna, a Sri Lankan father of two daughters, came to Uganda two years ago to help advance this nation’s economy. Today, his body rests, once again, at home.

Marie Smith of Ireland was a missionary who spent 30 years helping Africans less fortunate than herself. But her work came to an abrupt end – not because of who she was or what she believed, but because of the seat she’d chosen on that catastrophic Sunday evening.

That is profoundly wrong. And any attempt to justify these murders of innocents is unimaginably shameful. As we struggle to make sense from the unfathomable, and as we seek justice from the ashes, we can take comfort – and find faith – in the Ugandan proverb that reminds us, “When the moon is not full, the stars shine more brightly.” Yes, it is darker out today than it was just weeks ago. But we must believe – and we must make certain – that the stars of goodwill and grace and, above all, of justice will shine brighter now than before.

In this time of new threats and unprecedented challenges, the importance of the African Union’s mission and work is brought into stark focus. Over the last eight years, you have united a diversity of nations around common goals. You’ve paved new paths for communication and cooperation, and for prosperity, peace, and healing. Together, you’ve established agreements to strengthen democratic institutions, to prevent and combat corruption, and to ensure the integrity of your elections and the strength of your justice systems. And you’ve pooled your resources and knowledge to increase Africa’s participation in the global marketplace and to provide Africa’s people with goods, services, and opportunities, as well as with leadership that honors their will and their best interests.

At the beginning of this year – your membership declared 2010 to be the “Year of Peace and Security.” Together, you ignited a “flame of peace” that was placed in the care of President Mutharika. From Malawi, this flame began a year-long journey to all 53 AU member nations.

This journey continues. This flame still burns. And this Year of Peace and Security must live on. For too much is at stake. Too much has been sacrificed. And too much is yet to be realized.

Like President Obama, I believe that the 21st century will be shaped by what happens here in Africa. Your security and prosperity, the health of your people and the strength of your civil society, will have a direct and profound impact on the world’s communities and on the advancement of human rights and human progress everywhere.

During his early days in office, President Obama traveled to Africa. In Cairo and in Accra, he described what he saw as “an extraordinary moment of promise” for this continent – a new era for international cooperation; a new beginning.

President Obama also made clear that “Africa’s future is up to Africans.” And, today, I want to reaffirm America’s commitment to ensuring that this future is not hijacked or compromised; and that the progress you’re working to achieve is not derailed or delayed.

I am proud to be counted among the African Diaspora – this continent is my ancestral home, I am of this place. Your work is of special and emotional importance to me – and not only because I am proud to serve alongside my nation’s first African-American President or proud to be its first African-American Attorney General. I also join with you, and with my fellow citizens, in celebrating Africa’s success because I recognize that the fate of my own country is intertwined with each of yours.

The future we will share depends on what we do today – on the goals we set, the relationships we forge, the commitments we make and the actions we take. And despite today’s many challenges and uncertainties, one thing is clear: As your historic efforts to promote peace, development, justice, and opportunity continue, the United States will act in partnership and in common cause to help the African Union achieve its goals and fulfill its mission.

There are four specific areas where, I believe, America’s support must continue and where I hope our partnership can be strengthened: in combating global terrorism and international crime; in promoting good governance and the rule of law; in creating the conditions and capacity for economic development; and, finally, in ensuring that Africa’s women and girls are no longer disproportionately affected by violence or denied basic rights and equal opportunities to learn, to dream, and to thrive.

In each of these areas, the United States intends to serve, not as a patron but as a partner – as a collaborator, not a monitor.

First of all, because opportunity and prosperity cannot be realized without security, the United States will continue to direct every resource and tool at our command – from diplomacy and military tactics to our courts and intelligence capabilities – to defeat the global terror network. In protecting our people and defending our allies, we will respect the sovereignty of nations, as well as the rule of law. And we will look to engage more AU member nations in this work.

Second, we will strengthen current efforts to promote good governance and to combat and prevent the costs and consequences of public corruption. Today, when the World Bank estimates that more than one trillion dollars in bribes are paid each year out of a world economy of 30 trillion dollars, this problem cannot be ignored. And this practice must never be condoned. As many here have learned – often in painful and devastating ways – corruption imperils development, stability, competition, and economic investment. It also undermines the promise of democracy.

As my nation’s Attorney General, I have made combating corruption, generally and in the United States, a top priority. And, today, I’m pleased to announce that the U.S. Department of Justice is launching a new Kleptocracy Asset Recovery Initiative aimed at combating large-scale foreign official corruption and recovering public funds for their intended – and proper – use: for the people of our nations. We’re assembling a team of prosecutors who will focus exclusively on this work and build upon efforts already underway to deter corruption, hold offenders accountable, and protect public resources.

And although I look forward to everything this new initiative will accomplish, I also know that prosecution is not the only effective way to curb global corruption. We will continue to work with your governments to strengthen the entire judicial sector, a powerful institution in our democracy which depends on the integrity of our laws, our courts, and our judges. We must also work with business leaders to encourage, ensure, and enforce sound corporate governance. We should not, and must not settle for anything less.

Third, the United States – guided by President Obama’s international economic development plan – will work to expand current economic development efforts. Here in Africa, President Obama has signaled his commitment to foreign assistance, with the goal that such support will, over time, no longer be necessary. This goal is driving our work to help Africa develop new sources of energy, to create green jobs, to grow new crops, and to develop new education and training programs.

Finally, because we’ve seen that the global struggle for women’s equality continues – in many aspects of American life, as well as in countries across this continent and around the world – we know that our work to promote security, opportunity, and justice must include a special focus on women and girls. The unique challenges and urgent threats facing women and girls across Africa have inspired unprecedented action, collaboration, and investments by the U.S. government. In particular, I am proud of the contributions that U.S. Department of Justice prosecutors and law enforcement agents have made here in Africa, through the Women’s Justice Empowerment Initiative – a three-year, $55-million-dollar program that was developed by the U.S. Departments of Justice and State, and the U.S. Agency for International Development. In Kenya, South Africa, Zambia, and Benin, this initiative has helped to train attorneys, investigators, law enforcements officials, and medical professionals in an effort to improve prosecutions and to raise awareness about the special needs of victims.

Through this initiative, we are joining with partners across this continent to educate Africans about violence against women and girls, to build the capacity of local governments to serve and assist victims, and to strengthen the ability of Africa’s legal systems and law enforcement communities to protect women and girls. This work is making a difference. It must be a priority for all on this continent. This work is changing lives, families, and communities. And while I believe it has the power, the possibility, to transform entire cultures and countries, I am certain that its ongoing success and impact is directly linked to the engagement and commitment of you: Africa’s leaders.

I have great hope for what can be achieved through ongoing international initiatives and strong AU partnerships. But I do not pretend that the progress we all seek – and the conditions and opportunities that all African citizens deserve – will come easily or quickly.

And yet, we all can be – and should be – encouraged that the state of the African Union is strong. And we have good reason to feel hopeful that this extraordinary moment of progress is, indeed, a new beginning – the start of a journey toward greater peace and unity, toward freedom and prosperity, toward opportunity and justice for all.

And although we may take our first steps beneath dark skies, our path forward will be guided by the flame of peace – and by the bright flicker of stars. In this Year of Peace and Security, America is proud to walk at your side, privileged to count you as partners, and grateful to call you friends.

France pressing for euro zone leaders group-press

May 31 (Reuters) – French President Nicolas Sarkozy is pressing his European partners to set up a group of euro zone leaders with a secretariat to act as an economic government for the single currency bloc, Le Monde said on Monday.

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“Nicolas Sarkozy is looking for ways to get Germany back into the European game,” the newspaper said in an article published on its web site.

“According to his entourage, the French president once again envisages the creation of a forum of heads of state and government from the euro zone, with a secretariat, which would be the true economic government of Europe,” it said.

The newspaper noted that Germany had already rejected similar proposals for a formal body to coordinate economic governance in the euro zone.

But it said Paris believed firmer budget commitments by euro zone governments and other concessions, such as approving Bundesbank President Axel Weber to succeed Jean-Claude Trichet as the head of the European Central Bank could help sway Berlin.

“If it judges that the guarantees that have been obtained are sufficient, Germany might accept the Eurogroup,” Le Monde said.

The newspaper said that French authorities were moving cautiously with the idea in order not to provoke any open rejection from Berlin.

“The French president has taken the precaution of not describing publicly the economic government which he envisages because a display of Franco-German disagreement could be fatal to the euro,” the newspaper said. (Writing by James Mackenzie; Editing by Charles Dick)

Burial move shows cracks in Polish unity on crash

WARSAW, April 14 (Reuters) – A decision to bury Polish President Lech Kaczynski in the crypt of Wawel cathedral in Krakow, a place reserved for the nation’s heroes, poets and kings, has sharply divided Poles days before the funeral. Kaczynski died in a plane crash in Russia on Saturday along with 95 other people including his wife Maria and many members of Poland’s political and military elite.

Cardinal Stanislaw Dziwisz announced on Tuesday that Kaczynski and his wife Maria would be buried at Wawel on Sunday following a request from the president’s twin brother Jaroslaw, who heads the main opposition party, and other family members.

Numerous heads of state and government, including U.S. President Barack Obama, Russian President Dmitry Medvedev and German Chancellor Angela Merkel, are due to attend the funeral.

“The decision to bury him in Wawel is hasty and emotional,” said leading daily Gazeta Wyborcza in a front-page editorial.

“It is inappropriate to demand that Lech Kaczynski after his death become the equal of Jozef Pilsudski, architect of Polish independence … This decision will certainly divide Poles.”

Pilsudski helped Poland regain its independence in 1918 and dominated its politics through the 1920s and 1930s.

About 500 people staged a noisy protest in central Krakow late on Tuesday against the decision, waving banners that read “Not Krakow, not Wawel” and “Are you sure he is the equal of kings?”

Others organised protest campaigns on the social media site Facebook.

By Wednesday morning, the “No to Kaczynski’s burial in Wawel” group had attracted over 26,000 fans. Nearly 5,000 had joined a group bearing the ironic name “I want to be buried in Wawel too”.

The protests were the first cracks in a display of national unity since the crash. Tens of thousands of mourners welcomed home Kaczynski’s coffin and that of his wife. People were queuing in rain for hours on Wednesday to view the coffins in Warsaw’s presidential palace.

DIVISIVE POLITICIAN

Lech Kaczynski, president since 2005, was a polarising figure whose support levels had fallen to about 20 percent before his death. He had been expected to lose a presidential election due in the autumn and now likely to be held in June.

To his conservative admirers, Kaczynski was a patriot and man of deep moral and religious convictions. To his foes, he was a narrow-minded reactionary out of step with an increasingly liberal, outward-looking and European Poland.

His supporters defended the decision to bury him at Wawel.

“It’s dangerous to fuel rows over the burial of the first couple,” Witold Waszczykowski, one of the few Kaczynski aides not to die with him on Saturday, told Polish television.

Wawel is a large complex of buildings on the Vistula River that includes a castle, cathedral and fortifications. It traces its roots as a centre of political power back to the end of the first millennium.

The cathedral was the coronation site of virtually all of Poland’s monarchs, and Wawel Castle was the centre of government for five centuries until the end of the 16th century.

Historian Tomasz Nalecz, who is also a presidential candidate for a small leftist party, said he did not believe Kaczynski himself, whom he described as a man with a strong sense of history, would have expected to be buried at Wawel.

As well as Polish kings, the Wawel crypt also contains the bodies of legendary military commander Tadeusz Kosciuszko, who fought in the U.S. war of independence, Poland’s wartime leader Wladyslaw Sikorski and national poet Adam Mickiewicz. (Additional reporting by Gabriela Baczynska and Noah Barkin; Editing by Kevin Liffey)

Eurogroup statement on terms of Greek loans

Below is a text of the statement issued by euro zone finance ministers, the European Central Bank and the European Commission on the agreed terms of emergency loans for Greece, should Athens request help. “Statement on the support to Greece by Euro area Members States.

Following the statement by the Heads of State and Government of the Euro area on 25 March, Euro area Members States have agreed upon the terms of the financial support that will be given to Greece, when needed, to safeguard financial stability in the Euro area as a whole.

Euro area Members States are ready to provide financing via bilateral loans centrally pooled by the European Commission as part of a package including International Monetary Fund financing.

The Commission, in liaison with the ECB, will start working on Monday April 12th, with the International Monetary Fund and the Greek authorities on a joint program (including amounts and conditionality, building on the recommendations adopted by the Ecofin Council in February). In parallel, Euro area Members States will engage the necessary steps, at national level, in order to be able to deliver a swift assistance to Greece.

Euro area Member States will decide the activation of the support when needed and disbursements will be decided by participating Member States.

The program will cover a three-year period. The euro area Member States are ready to contribute for their part up to 30 billion in the first year to cover financing needs in a joint program to be designed with and co financed by the IMF. Financial support for the following years will be decided upon the agreement of the joint program.

In order to set incentives for Greece to return to market financing, Euro area Members States loans will be granted on non-concessional interest rates. The pricing formula used by the IMF is an appropriate benchmark for setting Euro area Members States bilateral loan conditions, albeit with some adjustments. Variable-rate loans will be based on 3-month Euribor. Fixed-rate loans will be based upon the rates corresponding to Euribor swap rates for the relevant maturities. A charge of 300 basis points will be applied. A further 100 basis points are charged for amounts outstanding for more than 3 years. In conformity with IMF charges, a one-off service fee of maximum 50 basis points will be charged to cover operational costs.

For instance, as of April 9th, for a three year fixed-rate loan granted to Greece, the rate would be around 5%.

The Eurogroup is confident that the determined efforts of the Greek authorities and of its European Partners will allow to overcome the fiscal and structural challenges of the Greek economy. In this context, the Eurogroup welcomes the budget execution in the first months of the year, which shows that the measures taken so far are bearing fruit.

ECB’s Trichet says Italy not in situation of Greece-report

MILAN, April 9 (Reuters) – Italy is not in the same situation as Greece and has shown a degree of resistance in the present difficult period, ECB president Jean-Claude Trichet said in an interview on Friday with Il Sole 24 Ore.

“In particular it (Italy) has been able to contain its yearly public deficit,” Trichet said.

He said the ECB encouraged Italy to rigorously apply its recovery programme.

Trichet reiterated that the question of Greece going bankrupt was not in discussion “in light of the decisions taken by the Greek government to reduce its public deficit and the declarations of heads of state and government of the Eurozone.”

Trichet said a “clear bipartisan agreement is needed in countries wishing to enter the Eurozone”.

“It is not possible to enter or leave the Eurozone as if getting on or off a bus,” Trichet said.

(Reporting by Stephen Jewkes)

Brussels pushes for pan-European financial regulators

Brussels – The European Commission set the scene Wednesday for a potential showdown with European Union governments by proposing an EU-wide system to oversee the bloc’s financial markets and avoid future credit crunches.

“The crisis has shown that the current system is not sufficiently responsive and not appropriate for a single financial services market. This new system will combine the expertise of all those responsible for safeguarding financial stability, with strong European bodies to coordinate their work,” said Internal Market and Services Commissioner Charlie McCreevy.

Based on a recent report by former International Monetary Fund chief Jacques de Larosiere, the proposal envisages the creation of a European Systemic Risk Council
(ESRC) and a European System of Financial Supervisors (ESFS).

The first, to be chaired by the head of the European Central Bank, would monitor and assess the overall risks to the stability of the financial system, provide early warnings and the necessary recommendations.

The second would act at the microeconomic level, creating a network of national financial supervisors tasked with overseeing banks and other financial institutions that operate in several EU member states.

The commission would like to see this new supervisory architecture in place by 2010.

But diplomats say it could face stiff resistance from Britain, Germany and some of the EU’s smaller member states when it is due to be discussed by heads of state and government at the bloc’s June 18-19 summit.

“I now urge EU leaders at the June European Council to endorse the concrete, timetabled steps we are setting out today,” said Commission President Jose Manuel Barroso.

Describing the proposal as both “ambitious” and “realistic,” Barroso cautioned EU leaders against trying to water it down.

“Now is the time for action,” Barroso said.

Officials in Brussels hope that such a system will avoid a repeat of the confusion seen over the handling of Fortis – a troubled bank whose main operations spread across Belgium, the Netherlands and Luxembourg.

However, some of its strongest critics are found in Britain, host to Europe’s most important financial centre – the City of London – which is unwilling to cede too much power to Brussels.

Several member states in Central and Eastern Europe, meanwhile, fear being deprived of a strong voice when it comes to regulating Western banks that control subsidiaries in their territory.

Germany was also accused of “reticence” on the issue by the EU’s monetary and economic affairs commissioner, Joaquin Almunia.

France, for its part, has accused the commission of not going far enough, since supervision will ultimately continue to rely on national authorities.

“The EU (June) summit should propose a more ambitious architecture,” Jean-Pierre Jouyet, a former French State Secretary for EU Affairs, wrote in an article on Wednesday’s daily Le Monde. (dpa)

Singapore warns of action against protestors during APEC summit

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Singapore warns of action against protestors during APEC summit Singapore – Singapore warned Thursday it would not tolerate violent protests during high profile events, including the Asia Pacific Economic Cooperation (APEC) Summit in November.

The city state’s Deputy Prime Minister Wong Kan Seng warned tough action would be taken against protests like those seen recently in Thailand and London where demonstrators damaged public property and caused tourists to stay away.

Wong, who is also the home affairs minister, said a new Public Order Act was passed this week, giving the police more power to deal with those who disrupt public order.

“As many important heads of state and government will be here for the APEC Summit, we have to anticipate that it may attract terrorist interest,” the Straits Times quoted Wong as saying.

Wong’s remarks put on notice foreigners who might plan to cause a scene during the summit, saying some foreigners might instigate Singaporeans to stage street protests or even take part in these activities themselves during the summit. (dpa)

Spain to send 450 troops to Afghanistan during polls

Strasbourg (France), April 5 (EFE) Span has announced to send a contingent of 450 soldiers to Afghanistan to help maintain security during the general elections in August this year.

Speaking at a press conference after the two-day NATO summit here Saturday, Spain’s Prime Minister Jose Luis Rodriguez Zapatero said his country would send ‘a battalion of 450 soldiers’ to Afghanistan, but they would remain only ‘the time that is strictly necessary’ to guarantee security.

‘Spain is not going to enlarge the contingent’ that it currently has deployed in Afghanistan made up of 778 soldiers, so that when the electoral process is over the battalion will return home.

Zapatero also announced the sending of 40 Civil Guard agents, a contribution of five million euros ($6.7 million) towards the fund created for the Afghan elections and another four million euros ($5.4 million) for the trust fund for training the Afghan national army.

The Spaniard, after taking part in the NATO countries’ meeting of heads of state and government, said that ‘international terrorism continues to be a major threat and we have to fight it together’.

For Zapatero, the NATO summit has revealed the allies’ basic agreement on the need for a different global vision that is broader, more political and is led by the UN.

Zapatero expressed his support for the new plan suggested by Barack Obama for Afghanistan and Pakistan, saying: ‘It means a change in strategy aimed at increasing civilian and political efforts towards reconciliation and economic development, while strengthening security and our relentless fight against Taliban radicalism, against terrorist fundamentalism.’

He also stressed the need for a country like Afghanistan to be able to govern itself and guarantee its own security.

He considered the coming elections ‘critical’ for the new strategy.

About the NATO summit, Zapatero said it was a ‘great opportunity to promote transatlantic dialogue and strengthen ties between Europe and the US for the security of all.’

EU leaders strive for unity amid economic gloom

Brussels – European Union leaders meet in Brussels on Thursday and Friday to forge a common position on how to better regulate the international financial markets, whose persisting crisis is feeding into the bloc’s rapidly-deteriorating economic outlook.

The spring council meeting in Brussels is seen as a key stepping stone towards London’s Group of 20 summit on April 2, which will be called on to overhaul the global financial sector and avoid future credit crunches.

EU heads of state and government are expected to issue “agreed language” on what they will want to see discussed in London.

According to latest available drafts of the Brussels summit’s conclusions, leaders will want to “give priority to restoring the functioning of credit markets and facilitating the flow of lending to the economy.”

They will also call on any form of protectionism to be avoided, and for world trade talks to reach an “ambitious and balanced” outcome.

Restoring confidence in the international markets should be achieved by granting more resources and monitoring powers to the International Monetary Fund (IMF), improving the transparency of hedge funds, other high-risk investments and credit rating agencies, and strengthening international supervision of major banks and insurance companies that operate in several countries.

Banks should in future build up enough capital to better face the bad times, while their managers should be dissuaded from taking excessive risks by weakening the link between company bonuses and short-term profitability.

“We expect the common language which comes out of the European Council to be consistent with the preparatory discussions for the London summit,” a British diplomat said.

While the bloc’s Czech presidency expects an agreement on such common language to be reached over dinner on Thursday, one potential source of friction may come from calls to fight tax havens and other potential threats to “market integrity”.

The leaders of Austria, Belgium and Luxembourg fear being singled out by fellow heads of state and government because of their countries’ bank secrecy rules and may well drive a hard bargain over coffee and cake.

This week’s meeting comes amid fresh concerns over the poor state of the bloc’s economy, which according to latest estimates may shrink by as much as 3 per cent this year and not recover before 2011.

The EU’s economic recovery package totals about 400 billion euros (519 billion dollars), or 3.3 per cent of the bloc’s annual gross domestic product, spread over two years. About half of this amount is made up of so-called “automatic stabilizers” – non-discretionary public spending, such as for unemployment benefits, that naturally increases during a downturn.

The package has been described as insufficient by the administration of US President Barack Obama, and most recently by American economist and Nobel laureate Paul Krugman.

But officials in Brussels say it is too early to judge whether more money will be needed.

Moreover, they note that many member states are not in the position to spend more without running even bigger budget deficits, which in turn threaten the stability of the EU’s common currency, the euro.

This point was made clear by French President Nicolas Sarkozy and German Chancellor Angela Merkel in a joint letter addressed to the Czech presidency and the commission ahead of the summit.

“Excessive public indebtedness threatens long-term global stability,” the two leaders wrote. “Healthy public finances thus remain crucial for the credibility and stability of the European Union.”

At the same time, leaders will be called to discuss the need to increase the amount of capital that the European Commission is able to raise on the financial markets to help EU countries that run into financial difficulties as a result of the credit crunch.

The commission, which can currently rely on 25 billion euros, has already bailed out Latvia and Hungary, and is now in talks with Romania.

The most contentious element of the European economic recovery package involves the possible use of 5 billion euros in community funds to improve internet access in rural areas, invest in environmentally-friendly projects and strengthen energy connections between member states.

While the funds represent only a tiny part of the package, national egoism is clearly at play – with governments still unable to agree on where the money should come from, or on how it should be spent.

While “not everybody may be satisfied” by the latest list of projects put forward by the EU presidency, lack of an agreement would be “a failure for the entire EU,” Czech diplomats warned a day before the start of the meeting.

Other issues due to be discussed by leaders include preparations for an April 5 EU-US summit in Prague with Obama, the fight against climate change, and ways to strengthen the bloc’s ties to its Eastern European neighbours, including Belarus, Georgia and Azerbaijan. (dpa)

Cabinet approves IBSA MoU on Human Settlements Development

New Delhi, Feb 5 (ANI): The Union Cabinet has accorded ex-post facto approval to the Memorandum of Understanding (MoU) between India, Brazil and South Africa (IBSA) on Cooperation in the field of Human Settlements Development which has been signed between the IBSA countries on the October 15, 2008 during the 3rd IBSA summit.

The IBSA dialogue has its genesis in the discussions between the Heads of State and Government of the IBSA countries at the G-8 meeting that took place in Evian, France in 2003, and following ongoing trilateral consultations, where the Foreign Ministers of the respective countries met in Brasilia on June 6, 2003 and the launching of the IBSA Dialogue Forum was formalized through the adoption of the “Brasilia Declaration”.

The IBSA Dialogue Forum has regular consultations at Senior Officials level called Focal Point meetings; Ministerial meeting known as Trilateral Joint Commission; and Heads of State or Summit Meeting. It also facilitates interaction amongst academics, business and other members of civil society.

The fourth meeting of the Trilateral Commission of the IBSA Dialogue Forum held in New Delhi on July 4, 2007 recognized the importance of cooperation in the sector of human settlement development and called upon the focal points to consult and provide a concrete proposal for co-operation in the field of human settlement development.

Both the 1st and 2nd Working Group meetings were held in South Africa. In the 2nd Working Group meeting held at Somerset West, South Africa in May, 2008 in conjunction with the 5th IBSA Trilateral Commission Meeting and the 12th Focal Point Meeting, India had circulated a draft trilateral MOU. The draft was considered by the Working Group and it was decided that Brazil and South Africa will communicate their comments or suggestions to India in due course.

The 3rd meeting of the IBSA Working Group of Human Settlement Development ( WGHS) was hosted by Ministry of Housing and Urban Poverty Alleviation in New Delhi, India on September 8 to 9, 2008. Delegations from India, Brazil and South Africa participated in the deliberations.

The MoU is reflective of the common desire of IBSA countries to work in tandem towards the objective of providing housing and basic services to the urban poor. As the key actors in their respective regions, all three countries have an active and important role in achieving this goal.

Closer co-operation under IBSA would lead to greater articulation of developing housing and human settlement strategies relevant to developing countries. This would also assist in engaging with International role players to garner support both financial and political towards achieving the MDG identified goal for human settlement development by the three countries. (ANI)