British Prime Minster Theresa May’s Brexit deal faces a heavy defeat in parliament on Tuesday because she has so far secured no major changes from the European Union, the leaders of two major eurosceptic factions in parliament said on Sunday.

Just 19 days before the United Kingdom is due to leave the EU on March 29, May’s is scrambling – so far unsuccessfully – to secure last-minute changes to an EU exit agreement before a vote on Tuesday on whether to approve the deal.

If she fails, lawmakers are expected to force May to seek a delay to Brexit that some fear could see the 2016 decision to leave the bloc reversed. Others argue that without a delay Britain faces chaos if it leaves without a deal on March 29.

Nigel Dodds, the deputy leader of the Democratic Unionist Party (DUP) which props up May’s minority government, and Steve Baker, a leading figure in the large eurosceptic faction of her Conservative party, warned “the political situation is grim”.

“An unchanged withdrawal agreement will be defeated firmly by a sizeable proportion of Conservatives and the DUP if it is again presented to the Commons,” they wrote in the Sunday Telegraph.

The Sunday Times said May was battling to save her job as aides were considering persuading her to offer to resign in a bid to get the deal approved. The newspaper also said cabinet ministers have spoken about whether to insist she goes as early as this week.

Parliament rejected May’s deal by a record margin in January, prompting the British leader to return to Brussels in search of changes to address the so-called Irish backstop – an insurance policy designed to prevent the return of a hard border between Ireland and Northern Ireland.

UK parliament

Many British lawmakers object to the policy on the grounds that it could leave Britain subject to EU rules indefinitely and cleave Northern Ireland away from the rest of the country.

But, May’s attempts to get the clause rewritten have so far failed to yield any result, with EU negotiators unwilling to meet her demands, and Britain rejecting a compromise offer.

Britain’s opposition Labour Party should support staying in the EU if there is a second referendum, the party’s Brexit spokesman, Keir Starmer, said on Sunday.

“If there’s a public vote that would operate as a lock, if you like, on any deal that Theresa May get through. If that is the position, then in my view, the default ought to be ‘remain’,” Starmer told Sky News.

However, Starmer said the party would not be seeking to secure support in parliament for a second referendum on Tuesday.

(Source: Reuters)

A major avalanche has buried skiers on a busy slope of the Swiss resort of Crans-Montana, injuring four people, including one whose life is in danger, but there are no known fatalities so far, officials say.

Eight helicopters, 12 dogs, and more than 240 police, rescuers, and soldiers worked to find any more people enveloped in the snow as night fell.

“Rescuers arrived very quickly on the scene. They rescued four injured people, including one whose life is in danger, and three were injured more superficially,” Valais cantonal police commander Christian Varone told a news conference.

“Witnesses told us there could be more people buried under the snow, that is why we are pursuing the search with considerable means.”

He said the avalanche was 840 meters long and 100 meters wide, with 400 meters of heavy snow hitting the piste.

Frederic Favre, head of the Valais department of police and justice, said no one was known to have been killed.

Earlier, the Nouvelliste, a local newspaper, quoted the commune’s president Nicolas Feraud as saying 10 to 12 people were believed to be trapped.

The avalanche, in mid-afternoon, came after a week of warmer temperatures began melting heavy snow. But the Swiss Institute for Snow and Avalanche Research said the danger for the area had been only at level two on a scale of five on Tuesday.

Prosecutor Catherine Seppey said that an investigation had been opened. “There are two hypotheses. The first is that several skiers set off the avalanche. The second hypothesis is it was a spontaneous avalanche due to climatic conditions, and in that case it will be a question of determining responsibilities and problems of security,” she said.

Philippe Magistretti, president of the Crans-Montana ski lift company, told Reuters by telephone that army personnel who were in the resort had joined the rescue effort.

“The amount of snow is incredible, two meters deep and 300 meters long. It’s a spring avalanche, which is very compact,” the Nouvelliste quoted one unnamed rescue worker as saying. Rescue dogs had not found anyone during a first search, he added.

The avalanche coincided with school holidays in some cantons, including Geneva, as well as overseas. Britain’s Blackheath High School tweeted that all its students on a ski trip in the area were safe.

The resort is scheduled to host two World Cup women’s races this weekend.

Marius Robyr, in charge of organizing the races, was quoted in Tuesday’s Tribune de Geneve, before the avalanche, as saying there was 1 to 1.5 meters of snow on La Nationale ski piste. He said it was closed to tourists ahead of the practice sessions and downhill and combined races.

“Our only ‘enemy’ is the sun,” he said.

(Source: Reuters)

Yellow Vests demonstrators took to the streets of Paris on Sunday to continue their months-long protest.

One of the leading figures of the Yellow Vests, Ingrid Levavasseur, was described as a “traitor” and booed by several demonstrators.

The protests are taking place for the 14th week in a row, despite the French government suspending tax hikes and announcing increases to the minimum wage.

Presstv

France enjoys a reputation for having a generous social safety net that provides well for the least fortunate. But weeks of Yellow Vest unrest have highlighted that many French citizens live in lingering economic uncertainty.

France ranks among the countries that most generously redistribute resources from rich to poor, and yet great disparities in wealth persist. In many ways the working poor – embodied by the Yellow Vests – feel they are being left behind.

Since the start of the 2008 economic crisis, the median living standard has stagnated in France overall. In 2015 this amounted to €20,300 per year, slightly lower than it was in 2008.

Wages also remain relatively low compared to other Western industrialised nations. The median annual wage of the top 10 percent was €56,640 in 2015 versus the paltry €8,280 earned by the bottom 10 percent. Individuals in the highest income bracket account for only 1 percent of the population (defined as those earning at least €106,210 annually or €8,850 a month).

Disparities between those at the top and those at the bottom also remain stark. In 2014, the top 10 percent took in 33 percent of pre-tax income compared to just 23 percent received by the lowest 50 percent, according to the 2018 World Inequality Report. The top 1 percent received 11 percent of total income.

A little more than 14 percent of France’s population – one of the lowest levels in the EU – lives below the poverty line of €1,015 per month.

Unsurprisingly, the unemployed are most likely to find themselves living in poverty (at 37.3 percent). France’s unemployment rate has hovered above 9 percent for the past decade. By contrast, the unemployment for the 28 EU members averaged 6.7 percent in November, the lowest rate since before the 2008 financial crisis, according to Eurostat.

Single-parent households and young people are also among the most at-risk portions of the French population.

The ‘myth’ of French equality

French economist Thomas Piketty says the image of France as a bastion of relative economic equality is its “great national myth”.

Per capita income grew an impressive 3.7 percent on average from 1945 to 1980, known in France as the “Thirty Glorious Years” (Les Trente Glorieuses). A major trend during the “glorious” period was an increase in the income share going to the bottom 50 and middle 40 percent, with a subsequent decline in the portion going to the top 10 percent.

But the annual rise in average national income then fell to around 1 percent over the next three decades (1980-2014), with inequality increasing acutely starting around 1983.

“The fact remains that France has also experienced a sharp rise in inequality,” Piketty wrote in a blog post for Le Monde. “Between 1983 and 2015, the average income of the richest 1% has risen by 100% (above inflation) and that of the 0.1% richest by 150%, as compared with barely 25% for the rest of the population (or less than 1% per annum).”

“The richest 1% alone has siphoned off 21% of total growth, as compared with 20% for the poorest 50%.” The disparity between rich and poor in France was less extreme than that seen in the United States but was still “fairly spectacular”, he said.

And the gains show no signs of slowing for those at the very top. “[T]he higher we go at the top of the distribution, the higher the rise in top income shares.” The World Inequality Report found that, between 1983 and 2014, 21 percent of France’s total growth went to the bottom 50 percent and the same share of growth went to the top 1 percent.

Nevertheless, France ranks as one of the European nations that most generously redistributes wealth, surpassed on this score by only five other EU countries (Belgium, Denmark, Finland, Ireland and Slovenia).

France boosted its redistribution efforts in the wake of the 2008 crisis with an increase in the top income tax rate and a revalorisation of social benefits. Universal healthcare and state-funded education also help ensure that French citizens are provided with some key basic needs.

Yellow Vest unrest

Despite France’s relatively generous social safety net, economic uncertainty is acutely felt by many. This feeling has boiled over into nearly three months of weekly Yellow Vest protests, the worst unrest France has seen in decades. Initially sparked by a proposed rise in the fuel tax that critics said would hit the poorest the hardest, the movement has since broadened to include many who feel the Macron government is out of touch with the needs of the working poor.

The man critiqued as “president of the rich” has not helped dispel this image with his dismissive comments to those looking for work or by saying many of the poor are just “screwing around”. Moreover, an announced €5 per month cut to a housing benefit would affect millions of people, including many below the poverty line and hundreds of thousands of students.

At a recent town hall meeting, held as part of the “National Debate” Macron launched in January to assuage Yellow Vest anger, attendees said the poor were being squeezed while the rich safely stash their money in tax havens.

“We’re under record fiscal pressure, with the value-added tax, income tax, social charges… yet public services are disappearing, hospitals and police stations are closing, and maternity clinics are moving away,” said one attendee at a recent meeting in Trouville-sur-Mer.

“We have to go get money from the big guys…” said another woman. “Every year, we lose €60 to 80 billion to tax havens.” A report from the main union for French tax authorities actually found this number to be much higher, concluding that tax evasion cost the government between €80 and €100 billion in 2017.

As the protests continued each Saturday, Macron eventually agreed to abandon plans for raising the fuel tax and promised extra funding for minimum wage earners and tax cuts for pensioners. But the president’s reputation for being out of touch with the concerns of the people has persisted. One Yellow Vest protester told CNews he thinks Macron has failed to recognise the “urgency” of the financial troubles that low-income workers are facing.

Others have criticised Macron for standing firm on plans to end a wealth tax on households with assets above €1.3 million. Inheritance remains a major factor in wealth disparity, one that can persist from generation to generation. In 2015, the richest 1 percent received 6.8 percent of the income but 30 percent of inherited wealth, according to the National Institute of Statistics and Economic Studies (INSEE).

“Beyond inequalities in resources, there is also an inequality of opportunity in France, exemplified by insufficient social mobility,” Michael Förster, an economist specialising in inequality at the OECD, told Le Parisien.

And France’s tax practices are exacerbating the economic divide, the World Inequality Report found, noting that “effective tax rates are lower for the very rich than for the middle class, and new tax legislations will further decrease these rates for the richest”.

Given the circumstances,it is “difficult to understand” why some “think it opportune to abolish the wealth tax on financial assets, or to impose a lower tax on financial incomes than on income from employment”, Piketty wrote. “To promote mobility, it would be more judicious to lower the property tax… for the households who have borrowed to buy property.”

France leads its EU counterparts in the amount of money it collects in taxes, which accounted for48.4 percent of GDP in 2017, the highest percentage in the European Union. The average in Europe is 40.2 percent.

Another potential problem with the French taxation system is that those earning a modest €27,500 a year are taxed at the same rate – 30 percent – as those making around €73,800, a sum that goes quite far in France.

Moreover, the top income tax bracket is defined as anyone making more than €156,244, meaning those high earners are taxed at a similar rate as the ultra-rich – those making €1 million or more per year.

Piketty said it was “urgent” that France address its problems with income inequality. When populations feel resentment at being left behind economically, they become increasingly attracted to far-right politicians who offer convenient scapegoats for their ills, such as immigrants or other marginalised populations.

The “most vulnerable social groups have the impression they have been abandoned”, Piketty said, rendering them “increasingly attracted by the sirens of xenophobia”.

France 24

The European Union urged member countries on Wednesday to crack down on schemes granting “golden visas and passports” to foreign investors, warning they can bring corruption and money laundering in their wake.

The European Commission, the EU executive, published a report urging members to curb the practice of giving foreigners — often Chinese, Russians and Americans — residency or citizenship in return for investment.

“We speak about opening (a) golden gate to Europe for some privileged people who have the money to pay for citizenship or residence,” EU justice commissioner Vera Jourova said at the report’s publication.

“We are looking at it with concern,” Jourova told a news conference in Brussels. The commissioner said investor residence and citizens schemes, known as “golden visas and golden passports,” should not be a weak link in EU efforts to curb corruption and money laundering.

The report said wealthy candidates for residency or citizenship do face insufficient security and background checks to prevent them from posing a security risk, laundering money or evading taxes. EU countries set conditions for granting and withdrawing nationality but must do so with respect for EU law, enforced by the European Court of Justice, officials said.

The bloc’s laws are important as a citizen of one EU country has the right to travel to others, exercise economic activities within the 28-nation internal market, and vote in local and European elections.

“Crime has no borders,” said Jourova, a Czech politician. The Commission complained that Bulgaria, Cyprus and Malta run schemes granting foreign investors citizenship without requiring them to live in those EU countries or show “genuine connections” to them.

The investor citizenship schemes, known as “golden passports,” offer less strict requirements than those for foreigners seeking to become naturalised citizens.

– ‘Transparency and oversight’ –

The Commission also said residence permits pose serious security risks to member states. An EU residence permit gives a third-country national the right to live in the member country and to travel freely in Europe’s passport-free Schengen area.

Britain, Bulgaria, the Czech Republic, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania and Slovakia run these schemes.

The Commission said there was a lack of “transparency and oversight” of the residence schemes, including too few statistics on how many people obtain a residence permit in this way. The Commission warned “it will take necessary action as appropriate” if member countries fail to comply with EU law and rules on border checks, money laundering and tax avoidance.

It said it will set up a group of experts from member countries to improve the transparency, governance and security of the investor schemes. The aim is to develop a common set of security checks for investor citizenship schemes by the end of 2019.

The problem of “golden visas and golden passports” has been flagged by non-government organisations. In October last year, Berlin-based Transparency International and London-based Global Witness called EU citizenship and residency as “just like a luxury good” which “can be bought”.

“By their very nature, golden visa schemes are an attractive prospect for the criminal and the corrupt,” they wrote.

Several EU members have used such schemes to give passports to around 6,000 people and residency rights to around 100,000 people in the past decade, securing about 25 billion euros ($29 billion) of foreign direct investment in return, the NGOs said.

They said Spain, Cyprus, Portugal and Britain are the countries that have received the most investment in return for visas. Spain received 976 million euros annually compared to 498 million euros in Britain.

 AFP