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Saturday, October 2, 2010

Brazilians Set to Head to the Polls - Wall Street Journal

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See a sample reprint in PDF format.Order a reprint of this article nowThe Wall Street JournalAMERICAS NEWSOCTOBER 2, 2010, 7:25 P.M. ETBrazilians Set to Head to the Polls ArticleInteractive GraphicsCommentsmore in World »BY PAULO PRADA

SÃO PAULO—Brazilians will begin heading to the polls Sunday morning in a vote widely expected to deliver a third four-year mandate to the leftist Workers Party and catapult the first female candidate ever to the presidency of Latin America's biggest country.

Opinion polls predict that Dilma Rousseff, a former energy minister and chief of staff to President Luiz Inácio Lula da Silva, could win a landslide first-round victory in tomorrow's voting, largely on momentum from Brazil's ongoing economic boom and the stratospheric popularity of her former boss. Although Ms. Rousseff has never before run for public office, she steamed into ...

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PA decides to halt talks unless building freeze reinstated - Jerusalem Post

Jerusalem took in stride on Saturday night a Palestinian Authority statement that talks would be halted if Israel didn’t stop settlement construction, saying this was not necessarily the PA’s final word and that discussions with the US were continuing to find a “creative solution” to the stalemate.

Following a meeting of the PA leadership that issued a statement saying there could be no peace talks unless Israel halted settlement construction, Prime Minister Binyamin Netanyahu issued a statement of his own calling on PA President Mahmoud Abbas and the PA leadership to continue the talks in order to reach a “historic agreement” within a year.

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“The way to reach a historic peace agreement between our two peoples is to sit around the negotiating table continuously and with seriousness, and not to leave it, because that is the place to solve our differences,” the prime minister said.

“The Palestinians conducted direct talks with Israeli governments for the last 17 years amid building in Judea and Samaria, including during the last year of the preceding government.

I hope that also now they won’t turn their backs on peace, and will continue in the talks to reach a framework agreement within a year,” he said.

On Friday, amid reports that Netanyahu’s proposal for overcoming the current hurdle was to reach an agreement whereby Israel would build 1,200 housing units in Judea and Samaria in the next year, the prime minister said in a private meeting that “everyone knows that “moderate and restrained building” over the next year would not “impact at all on the peace map.”

The 1,200 figure would be in pace with what was being built during the 10-month moratorium, and less than the rate of construction under the Olmert government.

Netanyahu, in this meeting and in an apparent reference to the initial settlement moratorium imposed 10 months ago, said that while Israel had taken steps to enable Abbas to enter the direct talks, the Palestinians have only “hardened their positions.”

The international community needed to call on the PA to remain in the talks. “This is in the Palestinian interest, just as it is in ours,” Netanyahu said.

Defense Minister Ehud Barak, who has been intimately involved in trying to broker a compromise solution, also called on the PA on Saturday night not to bolt the talks.

“We all must show good judgment and determination in order to overcome the difficulties and continue the negotiations to achieve results,” he said in a statement.

Barak said he believed that intensive discussions between Israel, the US, the Palestinians and leaders in the Arab world could lead to a formula this week that would ensure a continuation of the direct negotiations.

The PA statement, issued on Saturday by the Palestinian leadership following a meeting to discuss the latest developments surrounding the US-sponsored direct talks, said Israel’s “insistence on combining settlement expansion with the negotiations is a clear indication that it is not serious in dealing with the peace efforts.

“This also shows that Israel is seeking to use the negotiations as a cover for pursuing the same settlement policy and changing the reality on the ground and determining its fate through occupation and aggression.”

The statement said that “in light of this, the Palestinian leadership holds the Israeli government responsible for the suspension of the negotiations and the peace process by foiling the efforts of the US administration and the international community in that regard.”

The statement stressed that the resumption of the talks required tangible steps, first and foremost the “unconditional and unrestricted” cessation of settlement construction.

Nabil Abu Rudaineh, a spokesman for Abbas, said the PA leadership made it clear that there would be no negotiations with Israel as long as the construction in the settlements continued.

He said that Abbas relayed the Palestinian leadership’s position to US special Middle East envoy George Mitchell, who met with Abbas twice over the past few days.

“The Americans asked to continue contacts with the Palestinians and we have no problem with that,” Abu Rudaineh said, referring to the Abbas-Mitchell discussions. “But if Israel is serious it must stop the settlements and take measures to convince the Palestinians and Arabs that it’s serious about a serious and just peace process.”

Abu Rudaineh said that US efforts to resume the direct talks faltered because of Israel’s decision to resume construction in the settlements. Mitchell went on Saturday to Qatar and Egypt, and was scheduled to go to Amman on Sunday.

An Arab League forum is expected to meet in Libya next Friday to discuss whether the PA should continue direct talks even though the moratorium was not extended.

In Damascus on Friday, Hamas chief Khaled Mashaal said Israel’s insistence on being recognized as a Jewish state was a conspiracy against Palestinian refugees. Mashaal was speaking at a mass wedding organized by Hamas for more than 700 couples. Family is the central element of Palestinian society and the “occupation [Israel] fears the coming generation. They fear our people in the Gaza Strip and in the West Bank as well as Palestinian territories occupied in 1948.

“They are preparing their plans after they failed to break these people who do not surrender and who pass on the mantle from one generation to another,” Mashaal said.

The belief in diplomacy as the only way the Palestinians will achieve a state of their own is “one of the biggest mistakes,” he said.

He claimed that the Palestinian leadership was “drowning in politics.”

Politics must be put aside, he said, since “resistance and jihad come from society,” he said.

On Friday, Netanyahu met with both Mitchell and EU foreign policy Chief Catherine Ashton.

Netanyahu is expected to convene his senior ministers, the forum known as the “septet,” on Sunday or Monday to discuss the recent developments, including a draft letter reportedly given by President Barack Obama spelling out US promises if Israel extended the moratorium by two months.

Due to Succot, neither the septet, the 15-member security cabinet, nor the full cabinet of 30 ministers has met in recent days to discuss that letter or the various efforts to overcome the current impasse.

Jerusalem Post staff contributed to this report.


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Details emerge on no-tax California budget pact - The Associated Press

Details emerge on no-tax California budget pactBy DON THOMPSON (AP) – 37 minutes ago

SACRAMENTO, Calif. — After a record-long impasse, California legislators are set to vote this week on a no-new-taxes budget that relies on a combination of spending cuts and optimistic financial projections to close a $19 billion deficit.

Details of the agreement between Gov. Arnold Schwarzenegger and legislative leaders began emerging Saturday ahead of a vote by rank-and-file lawmakers planned for Thursday. If approved, it would end a budget stalemate that has already stretched for 94 days.

The state would cut about $7.5 billion in spending as part of the deal, down from the $12 billion Schwarzenegger proposed earlier this year.

To make up the shortfall, the agreement counts on an improving economy and the federal government to provide more money than previously projected.

Senate President Pro Tem Darrell Steinberg, D-Sacramento, said last week that the leaders turned to some "creative" bookkeeping after Republicans refused to raise taxes and Democrats rejected deeper budget cuts.

The pact he and the others reached Friday night assumes about $5 billion will come from the federal government, up from the $3.4 billion the governor had projected, said multiple sources close to the negotiations. It uses the Legislative Analyst's Office optimistic forecast of an additional $1.4 billion flowing to the state from higher-than-projected revenues. And it counts on as much as $1.2 billion from selling 11 state properties, then leasing them back.

Legislative and administrative aides said they could not speak for attribution until details of the budget are formally released ahead of committee hearings scheduled for Wednesday, but they agreed on all the major points.

The leaders had been under increasing pressure to pass a budget this week. Controller John Chiang has said he might have to issue IOUs for just the third time since the Great Depression if the week passed with no budget. Treasurer Bill Lockyer warned an estimated $7 billion in planned public works projects could be in danger if a deal was not reached soon.

This is the longest the state has ever gone beyond the July 1 start of its fiscal year without a budget. Legislative leaders have been struggling for ways to bridge a $19 billion gap, which represents more than 22 percent of the state's $84.5 billion budget last year.

To help get there, Republicans agreed to a two-year delay of a corporate tax break that had been set to take effect Jan. 1, saving the state $1.4 billion this fiscal year. In return, they won permanent concessions to close what they described as loopholes in an earlier business incentive law.

The changes won by Republicans affect the way companies calculate taxes on things like cable television and computer software, which Democrats complained would benefit corporate giants like Comcast Corp. and Microsoft Corp.

But Democrats said they narrowed the tax breaks to cut the cost to the state from $500 million to about $140 million this year. Republicans said the cost will be much less, as low as $41 million.

Republican support is critical because Democrats are several votes short of the two-thirds majority they need to pass a budget and tax increases on their own. Senate Minority Leader Dennis Hollingsworth, R-Murrieta, said Friday that he expects enough support among Republicans to pass the budget.

Republicans also avoided proposed taxes on oil production and on property owners' insurance to pay for firefighting services, and rejected Steinberg's proposal to rebalance the way the state levies income, sales and vehicle taxes. They also blocked a proposal to divert more state prison inmates to local county jails to save the state money.

Democrats said they were able to minimize cuts to schools, child care, welfare and other social programs, without giving details even to rank-and-file lawmakers who were briefed during conference calls Friday and Saturday.

Assembly Speaker John Perez, D-Los Angeles, said the proposal protects California jobs, avoids new taxes and shields schools from massive cuts.

"This budget honors all three of those core commitments," Perez said in a statement Saturday. He called the outcome "a solid — but sober — deal for California."

However, there is no guarantee all Democrats will support the agreement, setting up the usual last-minute horse-trading for votes.

Sen. Leland Yee, D-San Francisco, wouldn't support Democratic leaders' budget proposal during an Aug. 30 test vote, and is unlikely to vote for an even harsher compromise, said spokesman Adam Keigwin.

"He's not going to support a budget that severely cuts education, social services and health care. His position is we've cut enough in those areas, people are struggling in those areas," Keigwin said.

Both sides claimed victory on one of the biggest sticking points: pension reform.

Democrats expect the Republican governor to complete negotiations within days to win pension concessions from Service Employees International Union Local 1000.

The 95,000-member local represents nine of the 15 state bargaining units that lack a contract. If it agrees to benefit rollbacks, Democrats expect the remaining bargaining units to go along.

Once they do, Democrats could meet Schwarzenegger's demand that they repeal an 11-year-old law that authorized increases in public employee benefits.

"We came to an agreement on pension reform with the Legislature," Schwarzenegger press secretary Aaron McLear said Saturday, without giving details. "He's said since January that he won't sign a budget that doesn't include comprehensive pension reform. That remains the case."

Schwarzenegger had also demanded the state create a "rainy day fund." The leaders agreed to ask voters to reconsider creating such a fund on the 2012 ballot. Last year, voters rejected a proposal to build a reserve equal to 12.5 percent of revenue. The new version would ultimately create a 10 percent reserve.

Friday's announcement came just over a week after lawmakers and the governor said they had reached a "framework" for an agreement.

Copyright © 2010 The Associated Press. All rights reserved.


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