California in 'fiscal emergency'

BBC NEWS / Americas | Story last updated at 06:53 GMT, Thursday, 2 July 2009 07:53 UK

Mr Schwarzenegger said he was proud of California despite the crisis. Photo: AP

The governor of California has declared a fiscal emergency in the US state to address a budget deficit of some $24.3bn (£14.5bn).

Governor Arnold Schwarzenegger also ordered many state offices to close for three days each month until June 2010, with staff unpaid for those days. California has been one of the US states hardest hit by the recession. The moves comes after state legislators missed a 1 July deadline to approve a budget for the coming financial year. State Controller John Chiang has said the failure to meet the deadline means the state deficit will increase by up to $6.5bn by September. Mr Chiang told the BBC that many vulnerable people had been put in harm's way by the state's failure to agree the budget and to provide "essential dollars to help these people pay their rent, to put food on the table or to pay their utility bill".

He had earlier warned that drastic measures would have to be taken to conserve cash, including delaying payments to companies working for the state and to those relying on benefits and grants. Under the emergency measures, some state offices will be closed on the first, second and third Friday of every month until June 2010, with staff not paid for those days. Mr Schwarzenegger said in a statement that although the legislature had failed to remedy the budget problems, "solving the entire deficit" remained his "first and only priority". "I will not rest until we get it done. I will not be a part of pushing this crisis down the road - the road stops here," he said. The White House said it was closely monitoring the situation in the state.

'Still proud'

On Tuesday, the Californian Senate failed to agree on Democratic proposals to shave $3.3bn from education and other programmes as a stopgap measure to address the shortfall. Democrats believe cuts should not slash vital social programmes while Republicans argued that much deeper spending cuts were needed to balance the budget. Republicans and Mr Schwarzenegger have also ruled out tax increases. California struggles to balance its budget every year, but this year has been particularly difficult. And the size of the Californian economy - it is the world's eighth largest economy and generates nearly 13% of US gross domestic product - means what happens there matters for the rest of the country.

Around a thousand people had to be evacuated from the nearby houses. Image: Google hosted news / AFP

Italian train inferno kills 16

AFP | Wednesday, July 01, 2009

By Mathieu Gorse
Originally posted June 30, 2009
VIAREGGIO, Italy (AFP) — A train carrying liquid petroleum gas derailed in an Italian seaside resort town sending a fireball that engulfed nearby houses, killed at least 16 people and injured dozens, officials said. Witnesses spoke of terrifying scenes as many of the injured in Viareggio were left with extensive burns. The driver told of his "miracle" escape after his cabin filled with the liquid gas. The local health service gave the latest toll of 16 dead and 36 injured, of whom 14 were in critical condition. Two of the dead were children, officials said. Hundreds of firefighters from across the region rushed to help with the rescue operation and ensure remaining tankers did not catch fire.

More than 1,000 people were evacuated because of the danger of more explosions, said Luca Lunardini, mayor of the city of 50,000 people, adding before the latest toll was issued that five people were still missing. Authorities declared a state of emergency and Transport Minister Altero Matteoli set up an official inquiry. Pope Benedict XVI sent a telegram expressing his "deep compassion for the pain which has touched the whole town", while Prime Minister Silvio Berlusconi visited Viareggio to "take control of the situation". One of the drivers told of his scramble to escape the inferno just before midnight on Monday. "The drivers' cabin filled with the gas, we managed to escape. We are alive, it is a miracle."

Guido Bertolaso, the chief of the civil protection services, said: "There are several bodies in the streets thrown out of the buildings by the explosion," and added that many corpses were charred beyond recognition. Another witness told of finding a burnt body in the street. "I heard the explosion and I went out into the street to find myself faced with flames and a motionless charred body lying on the ground," the witness, who works at a nearby pharmaceutical company, told Italian news agency ANSA. He called it a "terrifying scene that I will never forget". A young girl caught in the blast on her scooter threw herself to the ground to put out her burning clothes, ANSA quoted another witness as saying. One wagon in the 14-carriage train transporting liquefied petroleum gas (LPG) came off the rails in the town, which is just northwest of Pisa.

Iran's Guardian Council Affirms Vote Result

The Washington Post / World / Middle East / Iran | Tuesday, June 30, 2009

Recount of 10 Percent of Ballot Boxes Certifies Landslide Victory by Ahmadinejad

By Thomas Erdbrink and William Branigin
Washington Post Foreign Service
Tuesday, June 30, 2009
TEHRAN, June 29 -- A top supervisory body reviewing Iran's disputed June 12 election formally dismissed all opposition complaints of fraud Monday and affirmed a landslide victory for President Mahmoud Ahmadinejad, setting off shouts of protest from Tehran's rooftops but leaving opponents with few options amid an intensifying government crackdown. The decision by the Guardian Council, a 12-member panel of Shiite Muslim clerics and jurists who oversee elections and certify results, was announced about 10 p.m. Tehran time after a partial recount was conducted in an effort to mollify political opponents who charge that Ahmadinejad benefited from massive vote-rigging.

Before the announcement, security forces, including members of the pro-government Basij militia, deployed in large numbers to prevent street protests, witnesses said. But that did not stop people from taking to their rooftops to chant "Allahu akbar" (God is great) and "Death to the dictator" in a form of protest used by the popular movement that ultimately deposed the shah of Iran three decades ago. Witnesses said the chanting Monday night was louder than usual, as Tehran residents vented their anger at a government that has largely crushed street demonstrations after declaring them illegal and threatening their organizers with execution. In a letter to Interior Minister Sadegh Mahsouli, the head of the Guardian Council said members reached their "final decision" on the election results after an extended review, Iran's state television and radio network reported.

"The Guardian Council held numerous sessions and agreed that the complaints were not valid and has now approved the soundness of the 10th presidential election," said the letter from Ayatollah Ahmad Jannati. He said that "most of the complaints were not cases of vote-rigging or electoral violation or were minor violations that might happen in every election and can be ignored." He called the election "a golden page . . . of Iran's democratic history," according to an official translation. The recount of 10 percent of ballot boxes went ahead over the objections of two opposition presidential candidates, who demanded that the election be annulled on grounds of massive vote-rigging.

Arrests in Iran Raise Ire of U.K.

THE WALL STREET JOURNAL / WORLD | Monday, June 29, 2009

Iranian riot policemen stood guard outside the British embassy in Tehran on June 15. AFP / Getty Images

By JEANNE WHALEN
Iran arrested nine local employees of the British Embassy in Tehran at the weekend, drawing a terse response from the U.K. government and signaling an escalation of tensions between two countries with a history of difficult relations. Iranian media reported the arrests on Sunday, saying the employees had been detained for allegedly playing a role in post-election demonstrations in Tehran. Speaking during a visit to Greece, British Foreign Secretary David Miliband said some of the nine arrested Saturday, had been released, though he didn't say how many.

A U.K. Foreign Office spokeswoman said Sunday that some staff were still being held, but she declined to say how many. She also declined to comment on the circumstances of their arrest. "The United Kingdom is deeply concerned at the arrest and, in some cases, continued detention of some of our hard-working, locally engaged staff in Tehran," Mr. Miliband said Sunday. "This is harassment and intimidation of a kind which is quite unacceptable. "The idea that the British Embassy is somehow behind the demonstrations and protests that have been taking place in Tehran in recent weeks is wholly without foundation. We have protested in strong terms, directly to the Iranian authorities, about the arrests that took place yesterday."

Last week, Iran expelled two British diplomats from the country, accusing them of playing a role in the post-election protests. After a meeting in Greece, EU Foreign Ministers condemned the expulsion and the detention of British Embassy staff and said that any "harassment or intimidation of foreign or Iranian staff working in embassies will be met with a strong and collective EU response," according to a statement released by Britain's Foreign Office. Mr. Miliband said Britain hasn't yet had a response from Tehran. Nader Mousavizadeh, a diplomatic expert and consulting senior fellow at the International Institute for Strategic Studies in London, said the arrests show that the forces around Iran's President Mahmoud Ahmadinejad are attempting to create more antagonism with the outside world.

New Honduran leader sets curfew

BBC NEWS / Americas | Story last updated at 03:19 GMT, Monday, 29 June 2009 04:19 UK

Zelaya supporters build makeshift barricades. Click above to view. Video courtesy: BBC.co.uk

Interim President Roberto Micheletti has imposed an overnight curfew in Honduras, hours after being sworn in.

The Congress speaker took office after troops ousted elected leader Manuel Zelaya and flew him to Costa Rica. The removal of Mr Zelaya came amid a power struggle over his plans for constitutional change. Mr Zelaya, who had been in power since 2006, wanted to hold a referendum that could have led to an extension of his non-renewable four-year term. Polls for the referendum had been due to open early on Sunday - but troops instead took him from the presidential palace and flew him out of the country.

The ousting of Manuel Zelaya has been criticised by regional neighbours, the US and the United Nations. In the Honduran capital, Tegucigalpa, groups of Zelaya supporters were said to have set up barricades, while troops were at key sites. Mr Micheletti told a press conference that a nationwide curfew was being imposed for Sunday and Monday, running from 2100 (0300 GMT) to 0600 (1200 GMT) on each night.

Days of tension

The swearing in of Roberto Micheletti - constitutionally second in line for the presidency - was greeted with applause in Congress. In a speech, he said that he had not assumed power "under the ignominy of a coup d'etat". The army had complied with the constitution, he said, and he had reached the presidency "as the result of an absolutely legal transition process". Congress said he would serve until 27 January, when Mr Zelaya's term was due to expire. Presidential elections are planned for 29 November and Mr Micheletti promised these would go ahead.