Argentina’s Top Unions Call Strike Against Milei’s Reforms

NOT A LIBERTARIAN HE'S A FASCIST

Maria Eloisa Capurro
Thu, December 28, 2023 


(Bloomberg) -- President Javier Milei will face his first general strike after just more than a month in office as Argentina’s top unions call for a nationwide protest against his plans to deregulate the country’s economy, change its voting system and reduce social safety nets.

Workers will stop across the country on Jan. 24 to protest Milei’s measures, according to an announcement on Thursday from the CGT, one of Argentina’s oldest and most powerful union groups. They plan to take to the streets around congress in Buenos Aires to fight an “illegal” decree to deregulate the economy signed by the president last week, union leader Hector Daer said in a speech.

The strike will be the biggest test yet to Milei’s plans to reduce the hand of the state in Argentina’s crisis-prone economy. It is also the fastest called by CGT after the inauguration of a new president in the past 40 years, according to local media. The government on Wednesday sent to congress a wide-ranging bill with hundreds of proposals spanning from the elimination of Argentina’s primary elections to the privatization of 41 state-owned companies.

Read More: Milei Blitzes Argentina’s Congress With Far-Ranging Reform Bill

The bill, several hundred pages long, gives Milei additional powers to decide on economic policy throughout his term.

With less than a month in office, the new government is already facing a series of street protests after announcing the end of price controls, sharp spending cuts and a more than 50% devaluation of the Argentine peso.

The general strike by unions connected to the Peronist movement now in the opposition would also test the hard-line approach of Security Minister Patricia Bullrich, who recently announced a series of measures to limit protests and street blockades carried out without a permit.

Argentines protest against Milei's 'mega-decree' imposing austerity

Saskia O'Donoghue
Thu, December 28, 2023

Argentines protest against Milei's 'mega-decree' imposing austerity

Thousands of Argentines have taken to the streets of Buenos Aires to protest a decree of sweeping economic reform and deregulation proposed by newly-elected President Javier Milei.

Marching at the behest of labour unions, the protesters demanded the courts intervene to invalidate the mega-decree they say would carve away at worker and consumer protections.

Congress is sitting in an extraordinary session this week, at the request of ultra-libertarian Milei - in office since 20 December 10 - to consider the plan.

The decree would change or scrap more than 350 economic regulations in a country accustomed to heavy government intervention in the market.

Among others, it abolishes a price ceiling on rent, eliminates some worker protections and scraps laws shielding consumers from abusive price increases at a time annual inflation exceeds 160% and the poverty level has surpassed 40%.

Members of the Argentine Workers' General Confederation and social organisations protest against the economic reforms of Argentine President Javier Milei - Matias Baglietto/NurPhoto via Getty Images

A number of civic groups have recently filed a judicial motion to have the decree declared unconstitutional.

On Wednesday, protesters waved Argentine flags and placards reading: "The homeland is not for sale."

"We do not question the legitimacy of President Milei, but we want him to respect the division of powers. Workers need to defend their rights when there is an unconstitutionality," construction union leader Gerardo Martinez told reporters at the march.

What might happen to Argentina after Milei's mega-decree?

Milei's "chainsaw plan" to cut state spending has triggered a series of street protests against the government.

Other aspects of the decree include an end to automatic pension increases, restrictions on the right to strike - and easing away from price caps for private health services.

It also terminates some 7,000 civil service contracts.

Unless Congress scraps the plan in its entirety, the decree will enter into force on Friday.

Milei's far-right party, Freedom Advances, has 40 of the 257 deputies in Congress and seven of 72 senators.

"The decree is destructive of all labour rights," 45-year-old teacher Martin Lucero, who took part in the protest, said.

"The Argentine people chose Milei as president of the nation, not as emperor," he added.

Milei Brings His Chainsaw to Argentina's Regulatory State
Katarina Hall
Fri, December 29, 2023 at 5:15 AM MST·3 min read

Javier Milei | JUAN MABROMATA / GDA Photo Service/Newscom

A little more than two weeks after assuming office, Argentinian President Javier Milei on Wednesday presented his most extensive reform bill to Congress aimed at deregulating South America's second-largest economy.

The 351-page bill includes 664 articles aimed at deregulating and modifying laws pertaining to several sectors, including labor, commercial, real estate, aeronautics, and health. According to Milei, the omnibus bill contains two-thirds of all of his reform proposals.

"Argentina is immersed in a serious and deep economic, financial, fiscal, social, pension, security, defense, tariff, energy, health and social crisis without precedent, which affects all levels of society and the very functioning of the State," the bill states.

These crises were caused by "an innumerable number of restrictions on the exercise of constitutional rights, especially those of trading, working, and exercising lawful industry," the bill continues, adding that these restrictions "severely limit competition" and "artificially distort prices" while "burdening the real income of citizens."

The first measure in the bill calls for the declaration of "a public emergency in economic, financial, fiscal, pensions, defense, tariff, energy, health, administrative, and social matters until December 31, 2025." If approved, this would mean that Milei would have both the executive and legislative powers and would be able to decide on issues that are currently only regulated by Congress. The measure can be extended for up to two years.

An entire chapter of the bill is dedicated to privatizing several state-owned companies in order to generate "greater competition and economic efficiency, reduce the tax burden, improve the quality of services, promote private investment and professionalize management." The bill mentions 41 companies it proposes to privatize, including the flagship airline Aerolíneas Argentinas, the oil company YFP, the country's largest bank, Banco de la Nación, the news agency Télam, the water company AYSA, the Argentine mint, and the country's rail system.

Milei's proposal aims to simplify, digitalize, and de-bureaucratize the administration "to promote transparency and due administrative process…to obtain efficient regulations for market competitiveness, job creation, and everything that contributes to raising the standard of living of citizens."

The bill proposes to eliminate the primary elections and switch to a single-ballot system. It also seeks to move the chamber of deputies from a system that determines the number of representatives proportionally with the population to one of single-member constituencies.

The bill also extends the government's new anti-protest measures, increasing penalties to up to four years in prison for those who use arms to disrupt public transportation and up to five years for those who "direct, organize, or coordinate a meeting or demonstration that impedes, hinders or obstructs circulation."

Another chapter specifically addresses oil and seeks to ensure affordable oil supplies by leaving prices up to the market. Currently, the government can meddle in crude and gasoline prices, according to Bloomberg. The new bill will not allow the executive branch "to intervene, or fix, prices in the domestic market."

Other measures in the bill include the resale of sports tickets with "no limit to the number of times such operation may be carried out;" the authorization of self-driving cars for individuals, passengers, or cargo; abolishing price ceilings on rent; easing price caps for private health services; and "express divorces."

The measures will be reviewed by Congress during the extraordinary sessions that began this week and will last until January 31. But Milei's opposition, which holds the majority of seats in Congress, has vowed to not let the decree pass. Meanwhile, protests have sprung up in response to the omnibus bill. Several social organizations took to the streets in Buenos Aires, and Argentina's main labor union called for a general strike on January 24 in protest against the reforms.

Should Milei's sweeping reforms pass, Argentina would move from being one of the world's most regulated economies to a deregulated, free market economy that could reverse decades of government failure.

The post Milei Brings His Chainsaw to Argentina's Regulatory State appeared first on Reason.com.


Explainer-What is in Javier Milei's sweeping Argentina reform bill?

Lucinda Elliott and Jorgelina do Rosario
Updated Fri, December 29, 2023 

Argentine presidential candidate Javier Milei closes his political campaign in Buenos Aires

By Lucinda Elliott and Jorgelina do Rosario

(Reuters) - Argentine President Javier Milei has sent a reform bill to Congress proposing far-reaching changes to the country's tax system, electoral law and public debt management.

The push to reshape South America's second-largest economy with an omnibus bill requires approval from lawmakers in both chambers of Congress, where Milei's coalition holds a small minority of seats.

WHAT ARE THE MAJOR REFORMS IN THE BILL?

The bill has 664 articles that range from allowing the privatization of 41 public companies, eliminating the presidential primary vote and introducing a broad 15% tax on most exports.

The government also proposed raising export taxes for soy and its derivatives to 33% from 31%. Argentina is the world's No. 1 exporter of processed soy.

The bill aims to introduce tax amnesties for Argentines, allowing them to register and repatriate some undeclared assets such as stocks, cryptocurrencies and cash.

A reform to public debt management would remove limits on sovereign bonds issued overseas and eliminate some conditions on restructuring debt.

Changes to Argentina's proportional representation electoral system would raise the number of lawmakers in each district to one per 161,000 inhabitants, from one per 180,000 inhabitants. This would give more power to the populous province of Buenos Aires in the lower house of Congress, according to a note to clients by consultancy firm 1816.

Among the more controversial reforms cited, is a call to cede some legislative power to the presidency until Dec. 31, 2025, with the option to extend these for a further two years.

WHAT ABOUT MILEI'S PRESIDENTIAL DECREE?

Markets cautiously welcomed a presidential decree from Milei last week to deregulate the economy, which came into effect on Dec.29 and also introduces wide-ranging reforms such as the end to export limits.

That decree must go before a legislative commission to weigh its constitutionality. It will remain in force unless both Congress and the Senate vote it down.

Unlike the reform bill, the presidential decree does not include changes to the tax and the electoral system, which must be put to congressional debate under Argentina's constitution.

HOW LONG COULD IT TAKE TO PASS THE REFORM BILL?

Milei's government sent the bill to Congress on Wednesday and has called for extraordinary sessions to fast-track its reform agenda.

The extraordinary sessions are scheduled through Jan. 31, shortening the usual recess until March. Lawmakers will set up commissions to analyze the proposals, which may include input from experts and government officials.

Several of the measures proposed require an absolute majority, such as electoral reform, which analysts warn could slow the process down. There is no set timeline stipulated for the bill to be debated.

HOW STRONG IS THE GOVERNMENT'S POSITION IN CONGRESS?

Milei's coalition, La Libertad Avanza, controls only 15% of seats in the lower house, so must rally support to move forward.

If eventually approved by the lower house, the bill moves to the Senate, where the government is even weaker, with less than 10% of seats.

Given his lack of a strong party or a majority in either chamber, analysts warn that Milei faces an uphill battle to advance his reform agenda.

"My doubt is whether Milei is open to accepting changes, or whether he wants the bill to pass without accepting any amendments," said Ignacio Labaqui senior analyst at Medley Global Advisors in Buenos Aires. "If he goes for the second option, he is literally declaring war on the legislative branch and has a high chance of losing."

Opposition movements have organized demonstrations against Milei's agenda in several cities since he took office Dec. 10.

(Reporting by Lucinda Elliott in Montevideo and Jorgelina do Rosario in London. Editing by Brad Haynes and Alistair Bell)


Argentina formally announces it won't join the BRICS alliance in Milei's latest policy shift
Associated Press
Fri, December 29, 2023 

President-elect Javier Milei waves during a joint session of Congress to officially declare him and his running mate winners of the presidential runoff election, in Buenos Aires, Argentina, Wednesday, Nov. 29, 2023. 

(AP Photo/Natacha Pisarenko)

BUENOS AIRES (AP) — Argentina formally announced Friday that it won't join the BRICS bloc of developing economies, the latest in a dramatic shift in foreign and economic policy by Argentina's new far-right populist President Javier Milei.

In a letter addressed to the leaders of Brazil, Russia, India, China and South Africa — all members of the alliance — Milei said the moment was not “opportune" for Argentina to join as a full member. The letter was dated a week ago, Dec. 22, but released by the Argentine government on Friday, the last working day of 2023.

Argentina was among six countries invited in August to join the bloc made up of Brazil, Russia, India, China and South Africa to make an 11-nation bloc. Argentina was set to join Jan. 1, 2024.

The move comes as Argentina has been left reeling by deepening economic crisis.

Milei's predecessor, former center-left president Alberto Fernandez, endorsed joining the alliance as an opportunity to reach new markets. The BRICS currently account for about 40% of the world’s population and more than a quarter of the world’s GDP.

But economic turmoil left many in Argentina eager for change, ushering chainsaw-wielding political outsider Milei into the presidency.

Milei, who defines himself as an “anarcho-capitalist” — a current within liberalism that aspires to eliminate the state — has implemented a series of measures to deregulate the economy, which in recent decades has been marked by strong state interventionism.

In foreign policy, he has proclaimed full alignment with the “free nations of the West,” especially the United States and Israel.

Throughout the campaign for the presidency, Milei also disparaged countries ruled “by communism” and announced that he would not maintain diplomatic relations with them despite growing Chinese investment in South America.

However, in the letter addressed to his counterpart Luiz Inácio Lula Da Silva in neighboring Brazil and the rest of the leaders of full BRICS members — Xi Jinping of China, Narenda Mondi of India, Vladimir Putin of Russia and Matamela Ramaphosa of South Africa — Milei proposed to “intensify bilateral ties” and increase “trade and investment flows.”

Milei also expressed his readiness to hold meetings with each of the five leaders.

Argentina pulls out of plans to join Brics bloc
Robert Plummer - BBC News
Fri, December 29, 2023 

Mr Milei said his foreign policy "differs in many ways from that of the previous government"


Argentina's new President, Javier Milei, has withdrawn the country from its planned entry into the expanding Brics club of nations.

In a letter to the leaders of Brazil, Russia, India, China and South Africa, Mr Milei said decisions taken by the preceding government had been revised.

The Brics countries are often seen as a counterweight to the Western-led world.

Argentina had been among a much-vaunted new tranche of six countries poised to join the grouping next month.

It would have been admitted to the Brics club on 1 January, alongside Egypt, Iran, Ethiopia, Saudi Arabia and the United Arab Emirates.

What is the Brics group and which new countries are joining?

Its change of heart comes after Mr Milei, a populist right-wing outsider, won a surprise election victory in November with radical pledges to overhaul the South American nation's ailing economy.

He succeeded left-wing Peronist Alberto Fernández, whose views were more aligned with those of the bloc's existing members.

Mr Milei said in his letter that his government's foreign policy "differs in many ways from that of the previous government".

He added that although he did not consider it "appropriate" for Argentina to become a full Brics member, he was still committed to strengthening bilateral ties, particularly with the aim of increasing trade and investment flows.

Argentina begins 'shock therapy' by devaluing peso

First protests in Argentina against austerity plan

Although the Brics alliance is often portrayed as promoting a more multipolar world, it is economically dominated by China, which accounts for more than 70% of the bloc's combined GDP.

Argentina's bid for membership under Mr Fernández had the support of Beijing, but Mr Milei has strongly criticised China.

On the campaign trail, he described the Chinese government as assassins and said he would not work with communists.

Argentina's changing attitudes highlight the delicacy of its economic and political position as it struggles to reverse decades of economic mismanagement.

It is battling soaring inflation, with prices rising by about 150% over the last year. It is also struggling with low cash reserves and high government debt, while 40% of the population is living below the poverty line.

Mr Milei's administration has already devalued the country's currency by more than 50% as his plans for economic shock therapy begin to take effect.

Externally, Brics members Brazil and China are Argentina's two biggest trading partners, but the US is not far behind, making it imperative to preserve good working relations with all three.

And as a man who has contemplated replacing the Argentine peso with the US dollar, Mr Milei shows signs of inclining more towards Washington than Beijing in future.

Stones worshipped by Indian villagers turn out to be dinosaur eggs

DPA
Thu, December 28, 2023 

A stone sphere worshipped by Indian farmers for generations has turned out to be a fossilised dinosaur egg. Vishal Verma/dpa

Farmer Vesta Mandloi was surprised to learn recently that one of the "stone balls" his family had been worshipping for generations has turned out to be the fossilised egg of a giant dinosaur that lived in central India's Narmada valley millions of years ago.

Like Mandloi, many farmers of Padlya village in Madhya Pradesh's Dhar district have been worshipping these roughly palm-sized balls known locally as Kankar Bhairav or stone Shiva. The balls lie in small clusters often at the root of a fig tree in an open field and are considered the guardians of the land and livestock.

But after a group of scientists took a closer look, Mandloi found out that the stone he worshipped is in fact the egg of a titanosaur, one of the largest dinosaurs to have existed on earth.


"We were visiting the area in early December to develop a plan for a geological park when we met Mandloi and other farmers," Mahesh Thakkar of the Birbal Sahni Institute of Paleosciences (BSIP) in Lucknow said.

Scientists believe that the dinosaurs were decimated during volcanic activity around 65 million years ago leaving behind a treasure trove of fossil-rich rocks along the valley of the river Narmada, which stretches thousands of kilometres from Madhya Pradesh to Gujarat in the far west.

Large numbers of dinosaur bones, teeth, claws and eggs have been found since the early 19th century and Mandloi's Karkara Bhairav is the latest discovery.

"Many of these fossils still exist because tribal people have been worshipping and taking care of them for time immemorial," said amateur palaeontologist Vishal Verma.

Even though they are referred to as Kankar Bhairava (kankar means stone and Bhairav is another name for the Hindu god Shiva), these stones are not worshipped in the traditional Hindu way with baths of water or milk. "Once a year near Diwali, the villagers make farm animals like cows or goats walk over these stones to gain the protection of the deity," Verma said.

A high school physics teacher, Verma has been an avid fossil hunter and conservationist right from his teenage days spent in this region of rolling hills and ancient volcanic rocks where dinosaurs used to roam 145 million years ago.

In January a group of palaeontologists including Verma reported the finding of 256 eggs of herbivorous titanosaurs in several clusters in Dhar district.

Published in the PLOS One research journal, the study reveals new details about the breeding and nesting habits of the long-necked dinosaurs. The discovery of ovum-in-ovo or multishell eggs and their clustering together indicates that the titanosaurs' breeding habits were similar to those of modern-day birds, according to the report.

Thakkar and his team are helping the Madhya Pradesh government's Ecotourism Department plan a geological park in the area which will include the egg clusters. Verma says he hopes the park will also showcase the ancient traditions of the local people which have helped to preserve the dinosaur eggs.

Villagers in India's Madhya Pradesh helping a palaeontologist photograph a nest of fossilised dinosaur eggs. Vishal Verma/dpa

Venezuela oil giant says 80 percent of oil spill cleaned up

AFP
Thu, December 28, 2023 

More than 80 percent of the spill at Venezuela's El Palito oil refinery has been cleaned up, officials say (Juan Carlos HERNANDEZ)

Venezuela's state oil company said Thursday that an oil spill at a refinery on the country's western coastline was no longer "active" and that more than 80 percent of the affected area had been cleaned up.

Wednesday's spill at the El Palito facility in the northwestern state of Carabobo occurred when heavy rainfall caused fluids to overflow from lagoons at the site, PDVSA said on social media platform X.

"It is important to clarify that it is not heavy crude oil, but a discharge of hydrocarbons, wastewater or effluents that were directed to the coastal marine environment," the company said.


"At this time there is no active source of spillage, there is no rupture of pipeline or system," it went on, adding that the "situation is being controlled by highly trained personnel under current safety protocols."

The spill sloshed tarry ooze onto beaches, affecting several seaside resorts and causing environmental groups and fishermen to sound the alarm.

Work was under way Wednesday to clean up the spill.

The last oil spill recorded in the area was in July 2020, when waste from the same refinery flowed into the sea.

That accident contaminated Morrocoy National Park, a tourist area with a score of islets with white sand beaches.

Venezuela, which has one of the world's largest oil reserves, saw its production fall from 3 million barrels per day more than a decade ago to 850,000 barrels per day now, with production expected to surpass 1 million barrels later next year.

ba/dga/md/cwl

‘We’re out of step’: how post-Brexit UK is drifting from EU standards


Heather Stewart

THE GUARDIAN
Thu, 28 December 2023 

Photograph: Fabio De Paola/The Guardian

When the government announced this year it would indefinitely delay plans to force UK companies to adopt a new post-Brexit quality mark, the UKCA, Simon Blackham, of the insulation maker Recticel, was delighted. “Yes! An outbreak of common sense,” he recalls thinking.

His joy was short-lived, however. It quickly emerged that the government’s change of heart did not apply to construction products, such as the insulation panels Recticel manufactures in Stoke-on-Trent.

Within the next 18 months, the Belgian-owned firm expects to have to spend about £400,000 in the UK retesting its products to comply with the new regime.

It is an increasingly common story: three years on from Brexit, as the government celebrates leaving the EU’s complex regulatory regime, many firms are finding the practicalities of this “divergence” costly and confusing – and business groups say that it is going to get worse.

Chemicals are another case in point. Since January 2020, the UK has failed to ban 36 pesticides that are not allowed for use in the EU.

Blackham wearily explains that construction products are overseen by Michael Gove’s housing ministry, not the Business and Trade department which issued that statement back in August, saying the government would continue to recognise the EU’s CE mark for many products.

Gove’s department has opted instead to press ahead with replacing the CE mark with the UKCA, for all construction products sold in the UK from June 2025.

This new mark incorporates the same standards as the EU version – but only UK-accredited testing facilities will be able to validate it.

Blackham, Recticel’s senior technical manager in the UK, explains that means everything will need to be retested, by a UK-based lab. In Recticel’s case, he says, this would have to be done for eight products, at a cost of approximately £35,000 each. The firm will also have to repeat fire testing, at about £14,000 a product.

“It’s the same standards, to the same test method, the same everything – and it would have to be paid for, ultimately by the customer, for us to retest material to a test that we already have, to a standard we’ve already done it to,” he says.

The firm has not yet made the final decision to go ahead, in the hope that, as in so many areas relating to post-Brexit regulation, the government – or its successor – could change its mind.

“Where we are at the moment is that we’re still waiting, still hoping that there is a chink of common sense on the horizon,” he says. But with testing capacity in the UK limited, they will to have to take the plunge soon.

A spokesperson for the Department for Levelling Up, Housing and Communities confirmed that the intention was not to recognise the CE mark from June 2025, but added, “we are reforming the UK’s construction product regime, and we recognise the need to provide certainty for the sector. We are carefully considering the recommendations put forward by independent reviewers and will set out next steps in due course.”

Simon Storer, chief executive of the Insulation Manufacturers Association, says the challenges faced by Recticel are being replicated at many other firms. “The unintended consequences are significant and incredibly damaging,” he says. “Most of the companies in my sector are European-owned, and they don’t want to produce a product to a different standard than the one they do in mainland Europe.”

He adds that there are concerns about whether there is testing capacity in the UK to underpin the new regime. “I understand that there are some products that there is no test in the UK for – therefore in theory they will not be eligible to be placed on the UK market. That is the seriousness of it.”

In one sense, the experience of the construction products industry is an exception. The decision to stick with CE marking for most sectors fitted a broader push by Rishi Sunak’s government to quietly smooth over trade frictions with the EU – by negotiating the Windsor Framework governing trade with Northern Ireland, and rejoining the Horizon scientific community, for example.

Plans to impose border checks on goods coming into the UK have been repeatedly delayed – though are now due to come into force next month.

“Active divergence has more or less stopped,” says Joël Reland, who tracks regulatory changes at the thinktank UK in a Changing Europe.

He says the cost of living crisis has meant bashing Brussels is no longer seen as good politics. “What voters care about is the economy and inflation, and if you want to boost growth and control inflation, you don’t want to be pursuing much divergence because it’s disruptive to business and it potentially damages your trade.”

“We’re getting more aligned in some areas,” agrees Stephen Phipson, chief executive of the manufacturers’ group Make UK, citing the decision to rejoin the European scientific funding scheme Horizon, and the 2035 date for phasing out petrol cars, which is now the same as in the EU, after Sunak pushed it back.

However, many goods exporters have already faced a battery of new tests and requirements since the trade and cooperation agreement (TCA) with the EU came into force in May 2021; and the challenge is likely to continue, as EU regulations shift over time – what Reland and his colleagues call “passive divergence”.

Peter Kersh has just retired as managing director of the Yorkshire-based fish food maker WorldFeeds, which supplies aquariums and fish farms in more than 40 countries.

After the TCA rewrote the rules of trade with Europe, it took the firm a year before it could find a way of dealing with the checks and paperwork necessary for every shipment.

Previously, they would send small consignments via “groupage,” where a logistics firm would take a mixed shipment across to the continent made up of products from many different firms.

Carriers stopped offering the service, once every crate from the UK had to be separately checked and accounted for. “When you ship food into the EU now you have to produce a health certificate, which is a laborious matter, and you have to have a vet inspection of your products on-site before they’re shipped across. So there’s all this rigmarole to go through, and it’s costly,” Kersh says.

WorldFeeds ultimately found a solution – sending a full load to a single EU client, who then ships individual orders on to other customers. “So we’ve managed to kind of get our marketplace back. But it took a year to sort out and it’s added 30% to the cost of the product,” Kersh says.

“Our customers have been very loyal to us: it’s a very special brand, it’s the best fish food in the world and people like it. But of course you can only stretch a piece of elastic so far, and they won’t wait because they’ve got to feed their fish. So we’ve been massively prejudiced by this. And it’s just really sad.”

And like many respondents to the British Chamber of Commerce’s annual survey on the TCA earlier this month, he says that the gap between UK and EU regulation is likely to widen, as the EU’s rules shift and the UK struggles to keep up, even if it wants to.

“Food is hugely regulated. It gets into ingredients that you can and can’t use: so they could ban an ingredient in the EU that we’re still using in the UK, which means you’re going to have two separate products now, because you can’t sell the same one.”

Perhaps because of barriers such as these, the independent Office for Budget Responsibility has suggested goods trade has been hit harder by Brexit than services exports, which have performed in line with other G7 countries.

Labour has promised to align the UK more closely with EU rules – seeking new agreements on veterinary standards, for example, and mutual recognition of professional standards. But such changes appear unlikely to tackle the broader issue of the EU’s regulatory system drifting further away from the UK’s, as rules are updated over time.

“We are starting to get out of step,” says Phipson. “We don’t have the regulatory capacity to keep up: it’s not intentional but we’re lagging behind.”

Silicon Valley’s dark sustainability secret

Szu Ping Chan
Thu, 28 December 2023 

Silicon Valley

ChatGPT is thirsty. Every time you give it a command, it “drinks” the equivalent of a sip of water. Twenty tasks later and it has already consumed half a litre of the stuff.

That’s because cooling the data centres that power it and other artificial intelligence (AI) tools is a huge task, and one that risks exacerbating a looming water crisis.

It may sound implausible. After all, 75pc of the Earth is covered in water. However, freshwater accounts for just 3pc, and of that, 69pc is locked away in glaciers, 30pc is underground and around 1pc is in lakes, rivers and swamps.

In short, less than 1pc can be used to drink or to irrigate crops.

Demand for water has increased by around 40pc over the past four decades and is estimated to rise by a further 25pc by 2050. At the same time, supply has halved since 1970 as the global population continues to rise, according to the World Bank.

Bank of America (BofA) recently blamed this trend on an era of “hyper consumption”. After all, it takes more than 2,500 litres of water to make a single cotton t-shirt and 24 bathtubs to extract and wash a ton of coal.

When it comes to technology, it’s not just ChatGPT that’s leaving the world parched.

The pandemic triggered a surge in demand for data-intensive services as meetings went virtual and streaming services became regular Friday night entertainment, sparking a flurry of new centres being built by some of the world’s biggest tech companies.

The rise of the semiconductor in everything from cars to toasters has also pushed up water consumption. The average semiconductor factory uses the same amount of daily water as a town roughly the size of Loughborough or Welwyn Garden City.

Google disclosed that its global data centres alone consumed approximately 21.1bn litres of water in 2022, equivalent to the water needed to maintain 37 US golf courses.

While farming and energy are the most water intensive sectors, technology is catching up.

Data centres are the tenth largest water consumer in the US, according to BofA.

And while Google replenished enough water last year to fill 400 Olympic-sized swimming pools, that’s only 6pc of its freshwater consumption last year.

In fact, water demand is expected to almost double from just over 250m gallons per day in 2020 to almost 500m by the end of the decade.

Shaolei Ren, an associate professor of electrical and computer engineering at the University of California says solutions such as using seawater are easier said than done because the liquid used to cool these data centres must also be purified.

“If the water isn’t clean, it will contain bacteria that’s bad for the environment,” he says. “Saltwater also corrodes cooling pipes.”

BofA recently warned that the world could run out of freshwater by 2040, leaving a third of global GDP exposed to negative shocks from water scarcity and a potential 6pc decline amid increases in health risks, migration and inequality.

While economists argue that technology is ultimately the solution, not the problem, tensions are increasingly starting to arise when companies clash with local communities seeking to preserve water because of droughts.

Research by ING showed that in 2022, 23pc of Microsoft’s and 18pc of Google’s freshwater withdrawals originated in areas of water stress, where demand exceeds the available amount over a period.

In the US, which hosts about 25pc of all global data centres, a mid-sized data centre uses about 300,000 gallons (1.3 million litres) of water every day, which ING says is equal to the water consumption of 100,000 homes.

Coco Zhang, an economist at ING, said: “This means that to continue using water to cool data centres, companies need to enhance water usage efficiency and minimise the risk from droughts. They must also properly manage relationships with the local community for large amounts of water consumption.”

Research shows that 23pc of Microsoft’s freshwater withdrawals originate in areas of water stress

Ren says public awareness of the issue is rising. “I think we’re going to see more clashes as this issue becomes more public,” he says.

He adds that one of the problems is the way many companies take water out of the system.

Companies can either use expensive traditional air conditioning to cool their servers, or they can deploy evaporative cooling, using water.

The problem with the latter is that the water that is used can’t simply be recycled like water used for a shower.

“When we take a shower the technical name for that is water withdrawal because it is discharged back to the sewage system and it goes back to the public water utilities,” Ren says.

“But just like when people sweat to cool down and our body heat is released to the environment, when you use water to cool down a data centre, they use water evaporation to cool down the system and remove the heat from the data centre.

“But that means the water isn’t there in liquid form to be used again.”

Shortages mean companies are already considering restricting water usage. In the UK, Thames Water said this summer that it was considering bringing in measures that would restrict data centres’ water usage during peak times in order to ease pressure on supply during hot weather.

Companies insist they are taking action. Some decisions are based on geography. Facebook owner Meta has built data centres in the chillier climes of Oregon and Lulea, Sweden, near the Arctic Circle to take advantage of the colder temperatures.

Google is slowly taking the opposite approach. While you’d probably need to wear a jacket to visit most data centres, Ren says most people would find it more comfortable wearing a pair of shorts when inside a Google location.

Servers here operate at higher temperatures because they all serve the same master, says Ren, unlike so-called colocation facilities where hundreds of different companies can rent space and bandwidth, and where not all equipment is the same.

This allows Google to run its centres more efficiently at around 27 degrees celsius compared to a norm of 21 degrees or even lower.

Google also has 38 water replenishment projects around the world, including one in the UK that intercepts and filters water at Chinbrook Meadows park on the River Quaggy in south London before it enters the Thames.

Microsoft, which has invested billions in ChatGPT creator Open AI, has also changed the way it uses water.

For example, its data centre in Sweden harvests rainwater to use, while the servers are cooled solely with outside air. It is also adapting its data centres in Arizona to use less water after concerns were raised by local communities.

A spokesman says: “We approach our water conservation efforts in our data centres in multiple ways, including applying new technologies to measure water use, and new ways to cool the servers, including liquid cooling and adiabatic cooling, a technology that uses outside air instead of water for cooling, when temperatures are below 85 degrees fahrenheit (29C).”

Both Google and Microsoft have committed to replenishing more water than they consume by 2030, but water use is likely to keep rising in the short term.

Google’s servers operate at higher temperatures than other tech companies’ – 27 degrees compared to a usual 21 – because it says this is more efficient

 - JOHN G MABANGLO/EPA-EFE/Shutterstock

Haim Israel, a global strategist at BofA, says we need not be pessimistic. “The world can definitely meet demand. There is enough water on the planet, but up until now there has not been enough investment.”

BofA believes solving the threat of water scarcity across the globe and beyond technology will cost around $1trillion a year to 2030. It’s a big number in a world where debts are already mounting, but Israel highlights this equates to just 1pc of global GDP.

Israel says: “With urbanisation, an increasing number of people on the planet, industrialisation, consumption and now technology that’s been thrown into the equation over the past couple of years, water supply is going down very, very fast.

“We have the solutions today. We just need governments to get into crisis mode. And start investing in them.”

He says solutions are often just about getting back to basics. “Today a third of all global water is lost because of leaking pipes and ageing infrastructure, Israel adds. “It’s massive. In the US the ageing infrastructure is roughly 50 years old. In some places it’s 100 years old, and a water main breaks every two minutes, leading to the loss of 18pc of freshwater supply.”.

With artificial intelligence often touted as the key to unlocking a new wave of productivity gain, Israel adds that the cost of inaction is particularly high.

“We live in a world of scarcity,” he says. “And the world of scarcity is also the world of not enough. I don’t think that we are going to run out of anything. But there will be an imbalance of supply and demand in the coming years that could leave global GDP in jeopardy.”

Turkey’s 49% Minimum Wage Hike Balances Between Unions, Markets

Beril Akman
Thu, 28 December 2023 



(Bloomberg) -- Turkey will raise the minimum wage by 49% in the new year, close to a level that several Wall Street lenders have warned would complicate the central bank’s efforts to curb inflation.

The monthly net minimum salary will be set at 17,002 liras ($577) as part of a single adjustment, Labor Minister Vedat Isikhan said in a televised news conference in Ankara on Wednesday. Goldman Sachs Group Inc. and Morgan Stanley have suggested the central bank could further tighten policy should the hike be higher than 40%-50%.

“We fulfilled our promise not to allow our workers to be crushed by inflation,” the minister said.

The government is looking to take some of the pressure off living costs before local elections in a country where consumer price increases are on track to surpass 70% in the months ahead. For President Recep Tayyip Erdogan, the choice was a compromise between the competing demands of labor unions and investors wary of rampant inflation.

Turkey’s Labor Unions Confederation, which represented the workers during talks with the government, was asking for an increase to 18,000 liras and a two-time hike next year, according to its president, Ergun Atalay.

The challenge is how to placate a population enduring a cost-of-living crisis but without getting in the way of an effort to cut inflation almost in half by the end of next year.

Chronic inflation that last year reached the fastest in almost a quarter century is eroding the purchasing power of Turks, prompting the government to raise the lowest salaries to retain popular support. This year, two adjustments resulted in an increase of more than 100%.

The latest decision was in the spotlight of credit rating companies and investors seeking clues to the course of Turkish economic policies after a shift away from unconventional measures following May elections and with the approach of the municipal ballot in March. More than a third of the country’s workforce earns the minimum wage, which is also a reference point for wider salary agreements in the economy.

Erdogan, long a champion of cheap money, has revamped the economic leadership team after his reelection in May. The focus has since turned to cooling off domestic demand, with the central bank raising interest rates sharply to counter inflation.

The central bank predicts price growth will end this year at 65%, before peaking above 70% in May and then finishing 2024 at 36%. It’s pushed monetary policy onto a more conventional track by quintupling the benchmark to 42.5% since June and signaling it could be raised higher next month.

Governor Hafize Gaye Erkan had said the central bank took changes to the minimum wage into consideration when compiling its inflation outlook in October.

The 49% hike increases “the upside risks for inflation” but likely won’t derail it from the path projected by the monetary authority, according to QNB Finansbank economists led by Erkin Isik.

“In case of a continuation of tight monetary policy, fiscal policy and appropriate government price hikes, the central bank could achieve its 2024 year-end estimate,” they said in a note published on Thursday.

--With assistance from Baris Balci.

Minimum-wage workers in Turkey just got a 49% pay rise, but they're probably not that happy about it


Lindsay Dodgson
Thu, 28 December 2023 

A currency exchange shop in Istanbul, Turkey.Chris McGrath/Getty Images

Turkey's Labor Minister Vedat Isikhan announced the country's minimum wage will increase 49%.


It may do more harm than good in the country's effort to curb inflation.


Minimum wage hikes have occurred in tandem with Turkey's inflation increases for years.

Turkey's labor minister announced the country's minimum wage will increase by 49% in 2024 to 17,002 liras ($577) a month.

But people probably aren't that happy about it.

Minimum wage hikes have occurred in tandem with Turkey's rocketing inflation for years, and 2024 may not be any different.


The increase in salary for workers may do more harm than good in the country's effort to curb inflation, as banks warned Turkey's efforts to cut it in half next year could be complicated if the minimum wage was increased by 40%-50%, Bloomberg reported.

The decision came after Turkey's labor unions asked for an increase to 18,000 liras and two more increases next year, according to Bloomberg.

"We fulfilled our promise not to allow our workers to be crushed by inflation," Turkey's Labor Minister Vedat Isikhan said in a news conference on Wednesday, per Bloomberg.

President Recep Tayyip Erdoğan is a fan of cheap money and low-interest rates, and increasing wages in response to sky-high inflation has been a pattern of Turkey's for several years.

The country raised the minimum wage by 54% at the end of 2022, from 5,500 liras ($186) to 8,500 liras ($288).

As a result of the cycle, inflation in Turkey hit over 100% this year.

This has left people unable to buy basic household goods.

A pensioner told Global Times in September that he had developed a vitamin deficiency due to being unable to purchase meat or dairy and had to take supplements instead. Others also said they were struggling to make ends meet and had seen a dramatic decrease in what they could afford.

People told Reuters they were struggling in May, seeing "nothing but hunger" around them.

"The exchange rate is uncontrollable," said a barber named Hakim Ekinci. "We can't afford anything."

Biden administration grants Louisiana power to approve carbon capture wells

MICHAEL PHILLIS
Updated Thu, 28 December 2023 


 EPA Administrator Michael Regan stands near the Marathon Petroleum Refinery as he conducts a television interview, while touring neighborhoods that abut the refinery, in Reserve, La., Nov. 16, 2021. The Biden administration is granting Louisiana's request to administer its own permit program for wells that store carbon dioxide. It will be just the third state to take over that job from the EPA. The EPA said the Louisiana agreement includes safeguards to protect poorer, often majority-Black communities that live near those facilities. Regan said Thursday, Dec. 28, 2023, "It can be done in a way that builds in environmental justice principles that allow for the community to participate in the process and ensures that these communities are safe." 

(AP Photo/Gerald Herbert)

The Biden administration is handing Louisiana regulators new power to attract and approve carbon capture projects at a time when the state’s influential energy sector wants to make the Gulf Coast a hub for the rapidly expanding industry.

Louisiana will be able to issue permits for wells that store carbon dioxide, a critical component of carbon capture and removal technology. In all but two other states, the Environmental Protection Agency is responsible for permitting. Proponents of the change say it will speed up approvals of new projects that are critical for reducing climate-warming greenhouse gas emissions.

Environmental groups had opposed the move, doubting that a state home to a concentrated stretch of oil, gas and petrochemical plants commonly called “cancer alley” is capable of proper industry oversight and protecting residents. The EPA said the Louisiana agreement includes safeguards to protect poorer, often majority-Black communities that live near those facilities — and that those standards will serve as a model for other states.

“It can be done in a way that builds in environmental justice principles that allow for the community to participate in the process and ensures that these communities are safe,” EPA Administrator Michael Regan said Thursday.

The Biden administration has said enhancing environmental justice is a priority and that it would focus its enforcement power on communities already burdened by too much pollution. The EPA said it secured commitments from Louisiana to have a robust public participation process and to consider how new wells might harm communities near polluting sites and possibly reduce harm.

Carbon capture technology is aimed at reducing emissions from industrial sources like ethanol plants and coal-fired power plants. The captured carbon can be transported for injection in wells deep underground. It is these wells that Louisiana will now have the power to approve.

The Biden administration has increased tax breaks for developers of carbon capture projects and provided large grants, including for an ambitious plan in Louisiana to remove carbon directly from the air. Developers have responded, flooding the EPA with permit applications for new wells, but only a handful of carbon capture projects are currently operating and few wells have been approved so far.

In Louisiana, developers have proposed roughly 30 carbon capture projects, among the most of any state, according to a tracker maintained by the climate-focused group Clean Air Task Force.

Louisiana officials welcomed the EPA’s decision, saying it will help make the state a major carbon capture player and reduce industrial emissions.

“We have seen unprecedented interest in carbon sequestration projects over the past couple of years, with companies reaching out to our office to express interest in what the regulatory framework will be,” Louisiana Department of Natural Resources Commissioner of Conservation Monique Edwards said in a statement Thursday.

Louisiana Gov. John Bel Edwards and other political leaders have argued that the state's robust petrochemical industry along the Mississippi River, geology that’s well suited for carbon storage and plenty of existing infrastructure make it the perfect place for carbon capture development.

Environmental groups are doubtful the state will properly regulate carbon capture wells. Along with climate activists and some scientists, they also question the potential of carbon capture, with some arguing that it’s an excuse to delay or prevent the rapid phase-out of oil, gas and coal that is needed to halt climate change.

They point to statements like those made by Republican Louisiana Sen. Bill Cassidy, who advocated for EPA to grant permitting authority to Louisiana. Cassidy argued that producing oil and gas is vital for the state’s economy and that “many of these energy producers want to invest in carbon capture and sequestration so they can keep operating in Louisiana long into the future.”

Opponents argue that prolonging the life of a polluting industry will harm people who live nearby, which are too often poorer, minority residents.

The EPA invited public comment on the state’s request in April, when it proposed approval. Among those objecting was the environmental group Earthjustice, which said the state is “notorious for weak monitoring and enforcement” and that it hasn’t shown it will adequately protect drinking water.

Clara Potter, an attorney with the Tulane Environmental Law Clinic who represented the Sierra Club and another preservation group in opposing the EPA's move, said she was disappointed with the EPA's decision. She said carbon capture projects in Louisiana have served “as an excuse for permitting new and expanded polluting operations.”

That increased air pollution “will be born most heavily by Black and Brown communities who already face disproportionate environmental risks,” she said in a statement.

The Biden administration has focused attention on Louisiana and its pollution. Regan has visited the state, promising to do better by communities there. Last year, the EPA accepted complaints from activist groups in Louisiana that asked the agency to investigate the state's regulation of air emissions. The agency initially said there was evidence of racial discrimination, but dropped the investigation before releasing a final report.

Regan says the agency followed its legal obligation to approve the state's application to administer its own permitting program because it meets the Safe Drinking Water Act's requirements. The state standards must be at least as strict as federal rules.

“We're building in monitoring and oversight measures to ensure that the state — regardless of who is in the governor's office — complies" with the law, Regan said.

North Dakota and Wyoming are the other two states with permitting authority. North Dakota, the first state to be granted authority, issued its fourth well permit in May and an ethanol producer is currently capturing and storing carbon there.

Texas, Arizona and West Virginia also want to run their own permitting program.

___

The Associated Press receives support from the Walton Family Foundation for coverage of water and environmental policy. The AP is solely responsible for all content. For all of AP’s environmental coverage, visit https://apnews.com/hub/climate-and-environment

New Mexico proposes regulations to reuse fracking wastewater



MORGAN LEE
Thu, 28 December 2023 

FILE - Oil rigs stand in the Loco Hills field  in Eddy County near Artesia, N.M.. The state's environmental regulators have proposed a new regulatory framework for reusing wastewater with a major focus on treating and repurposing the used, salty byproducts of oil and natural gas drilling in a major U.S. petroleum production zone. The EPA announced Thursday, Dec. 28, 2023, its petition to the state Water Quality Control Commission to begin formal deliberations on the proposed rules.

 (AP Photo/Jeri Clausing, File)

SANTA FE, N.M. (AP) — New Mexico environmental officials have proposed a new regulatory framework for reusing wastewater with a focus on the used, salty byproducts of oil and natural gas drilling in a major U.S. production zone.

The Environment Department announced Thursday its petition to the Water Quality Control Commission to begin formal deliberations on the proposed rules. Public hearings could begin as soon as April.

New Mexico, the No. 2 state for oil production behind Texas, is looking to its energy sector and water-intensive fracking as a potential source of treated water for industrial applications — and to offset water demands that are depleting freshwater aquifers amid drought.


“We need to protect our fresh groundwater supplies not only from degradation or contamination but from overuse,” said John Rhoderick, director of the water protection division at the Environment Department. “We need to do everything we can to maintain those supplies because they’re not being replenished.”

He said initially rules would only allow for “closed loop” projects involving treated oil-field water, with no discharge.

“Although this identifies and encourages pilot projects and demonstration projects, they have to be non-discharging," Rhoderick said. "We feel that’s the safest way to do it.”

In a related legislative proposal from Gov. Michelle Lujan Grisham, New Mexico would underwrite development of a strategic new water source by buying treated water that originates from oil and natural gas drilling. The governor is seeking a $500 million appropriation by the Legislature for the project.

That initiative doesn't aim to provide potable water but rather a supply of treated water for emerging businesses ranging from microchip manufacturers to hydrogen fuel producers that separate the element from water in an energy-intensive process. Critics fear the plan might only spur more drilling for petroleum.

Rhoderick said New Mexico communities already reuse about 40% of residential wastewater after treatment and purification to irrigate city parks, playing fields, landscaped roadway medians and more. But broader reuse options are needed to ensure economic and population growth in the future, he said.

“We felt the need to give some clear direction and certainty to industry because we need them to invest in the technologies and the science,” said Rhoderick.

The proposed rules are an outgrowth of 2019 state legislation that encourages the oil and natural gas industry to favor water treatment, reuse and recycling over reliance on natural aquifers. Concerns about water overuse include depletion of the vast underground Ogallala Aquifer that sustains communities in eastern New Mexico and extends to the Dakotas and Wyoming.

Collaboration on the proposed rules included a public-private research consortium anchored by New Mexico State University. Private consortium sponsors include energy conglomerates Chevron and ExxonMobile, oil services provider NGL Energy Partners and infrastructure firm Tallgrass Energy, a developer of hydrogen ventures in New Mexico.

NAKBA 2 ETHNICALLY CLEANSED

Former Israeli settlers yearn to return to Gaza after war

Michael BLUM
Wed, 27 December 2023 

Nearly two decades after Israeli settlers pulled out of Gaza, some say they yearn to return to the Palestinian territory after the Israel-Hamas war (GIL COHEN-MAGEN)

"A house on the beach is not a dream!" The advertising slogan by an Israeli settlement developer is music to the ears of former Gaza settlers yearning to return to the Palestinian territory after the war.

Nearly two decades after Israeli settlers pulled out of Gaza, the real estate developer Harey Zahav sparked controversy when it posted the slogan on social media in mid-December as Israel wages a military offensive against the territory's Hamas rulers.

"This campaign expresses a desire to return (to Gaza) but we have no projects in development," said Zeev Epstein, the owner of the company, which is notorious for constructing wildcat settler outposts in the occupied West Bank without Israeli government authorisation.


Epstein made the comment to Israel's Channel 13 television as Palestinian supporters expressed outrage over what they saw as a proposal to build beachfront homes over the bombed-out ruins of Gaza.

Israel unilaterally withdrew the last of its troops and 8,000 settlers on September 11, 2005, ending a presence inside Gaza that began in 1967, but maintaining near complete control over the territory's borders.

Despite its withdrawal, Israel imposed a land, sea and air blockade on the territory and is still regarded internationally as an occupying power in the Gaza Strip.

All settlements on occupied Palestinian land are regarded as illegal under international law, regardless of whether they were approved by Israel.

No Israeli officials had suggested plans to send Jewish settlers back to the territory following the outbreak of war on October 7, when Hamas militants launched deadly attacks across southern Israel and Israel responded with a relentless military campaign.

But on Wednesday, coalition lawmaker Zvika Foghel told public radio that Israel must "take control over the territory north of the Gaza River, and establish new Jewish settlement".

- 'Paradise' -

For Hannah Picard, a 66-year-old French-Israeli who lived for 16 years in the heart of the Gaza Strip, "it's obvious that we are going to go back".

The ongoing war in Gaza, she said, was a prelude to her return.

"Deep down, we dream of going back, because it's our home," Picard said in an interview in her three-bedroom apartment in Jerusalem, which she described as her "temporary home".

Her former seaside home in central Gaza, she said, was akin to "living in paradise".

The bloodiest ever Gaza war erupted when Hamas gunmen attacked Israel and killed about 1,140 people, mostly civilians, according to an AFP tally based on Israeli figures.

They took 250 hostages of whom 129 remain inside Gaza, Israel says.

Israel's retaliatory bombardment and ground assault in Gaza has killed at least 20,915 people, mostly women and children, according to Gaza's health ministry.

The case for Gaza resettlement has gained some ground among Israelis, many of whom are traumatised and galvanised by the October 7 attacks.

- 'Govern Gaza' -

Oded Mizrahi, who works at Jerusalem's Gush Katif Museum -- named after a bloc of Israeli settlements in the Gaza Strip -- was convinced that returning to the territory would soon be possible.

"We don't know exactly how but... everyone understands that Hamas cannot stay there," he told AFP.

"We have no other choice but to govern" Gaza, he said.

While the Israeli authorities have not talked about the future of Gaza clearly, the United States insists it would be up to the Palestinians to decide.

"We do not believe that it makes sense for Israel, or is right for Israel, to occupy Gaza, reoccupy Gaza over the long term," US National Security Advisor Jake Sullivan told journalists on a recent visit to Israel.

"Ultimately the control of Gaza, the administration of Gaza and the security of Gaza has to transition to the Palestinians."

The images from 2005 of weeping Israelis leaving their homes in Gaza settlements, soldiers in tears as they carried out evacuation orders, bulldozers razing houses and synagogues set ablaze by Palestinians are etched into the collective Israeli memory.

Displayed at the Gush Katif museum were photos, maps and souvenirs from the destroyed settlements such as little bottles filled with sand from Gush Katif as well as books on Jewish history in Gaza.

T-shirts emblazoned with the words "We are going home" were on sale for 35 shekels ($10).

"People want to learn this story," Mizrahi said.

"It's in the news."

mib/ezz/ac/jd/amj/kir

OOPS, SORRY ABOUT THAT
Israel's military says it used the wrong bombs in strike on a Gaza refugee center that killed at least 86 people

Sam Fellman
Thu, 28 December 2023 

Israeli airstrikes hit a residential area in al Maghazi refugee camp, killing at least 86 people. Israel's military said Thursday this strike caused Ali Jadallah/Anadolu

The Israeli military said its Dec. 24 airstrikes on a refugee camp caused "unintended harm."


Two airstrikes hit seven buildings and killed at least 86 people.


This appears to be the IDF's first admission that it has used excessive force in its air war.

For seemingly the first time, Israel has said an attack in its air war that harmed civilians in Gaza went too far.

Israeli fighter jets launched attacks on a refugee camp in central Gaza on Sunday that killed at least 86 people, including women and children.

The Israeli military now says the bombing caused "unintended harm" to civilians.

The attacks struck the crowded Maghazi refugee camp, where thousands of displaced Palestinians gathered while fleeing Israel's ground and air war against Hamas. Associated Press journalists witnessed the immediate aftermath as survivors carried a dead baby and checked a bloodied girl for injuries.

Israel is carrying out intense bombardments of Gaza in the wake of Hamas' October 7 terrorist attacks that killed 1,200 people in Israel, some of whom were tortured and sexually assaulted.

The military's statements Thursday appear to be the first admission by the Israeli military that it had used excessive force in its air war — the leading cause of the 21,100 Palestinian deaths tallied so far by the Hamas-run Health Ministry during the war.

The UN reported that the Israeli strikes hit seven buildings in the refugee camp. The IDF said its forces were targeting Hamas operatives nearby and struck two targets.

"A preliminary investigation revealed that additional buildings located near the targets were also hit during the strikes, which likely caused unintended harm to additional uninvolved civilians," according to an IDF statement.

An unnamed Israeli military official told the Israeli public broadcaster KAN: "The type of munition did not match the nature of the attack, causing extensive collateral damage that could have been avoided."

An Israeli military official said its airstrikes caused widespread damage to the crowded Maghazi refugee center "that could have been avoided."Mahmud Hams/Getty Images

Israel's Western allies are becoming more and more critical of the bombing campaign, calling it "indiscriminate" and even saying it's at odds with Israel's long-term security by radicalizing more Palestinians.

Israel's relentless air attacks have repeatedly struck hospitals, schools, high-rises, and other essential infrastructure; Israel's military says the attacks target Hamas operatives and their extensive tunnel network.

Israel has used large or unguided bombs — certain to cause wide damage in crowded Gaza — in some of the attacks.

Researchers estimate that the damages are widespread; between 36% and 45% of all buildings in Gaza have been damaged.

Israel has struck other refugee centers in its pursuit of Hamas. A Wall Street Journal investigation published Thursday found that the Israeli military attacked the Jabalia refugee center on Oct. 31 without warning civilians. The attack used two of Israel's largest bombs.

The effort killed one Hamas battalion commander — and at least 126 civilians, more than half of whom were children.


Israeli military ‘regrets harm’ after more than 100 killed in refugee camp strike

Anthony France
Thu, 28 December 2023 

Men recover the body of someone killed in the aftermath of an Israeli strike at al-Maghazi refugee camp (AFP via Getty Images)

Israel has said it “regrets the harm” caused by airstrikes that killed dozens of civilians earlier this week.

About 131 people died when the Maghazi and Bureij refugee camps, east of Deir al-Balah, were pounded late on Sunday, according to figures by the United Nation’s human rights office.

An Israel Defense Forces spokesman told the KAN public broadcaster on Thursday: “The type of munition did not match the nature of the attack, causing extensive collateral damage that could have been avoided.”


In a later statement, the IDF said: “A preliminary investigation revealed that additional buildings located near the targets were also hit during the strikes, which likely caused unintended harm to additional uninvolved civilians.”

The IDF said it “regretted the harm” to non-combatants in the incident, saying that the strike had targeted Hamas operatives.

On Tuesday, Israeli forces expanded their ground offensive into urban refugee camps in central Gaza after bombarding crowded Palestinian communities and ordering residents to evacuate.

Despite US calls for Israel to curb civilian casualties and international pressure for a ceasefire, Israeli Prime Minister Benjamin Netanyahu said the military was deepening the fighting in retaliation for Hamas gunmen’s murderous assault on October 7.

Prime Minister Benjamin Netanyahu speaking to soldiers in the northern Gaza Strip (AP)

Israel blames Hamas for the high civilian death toll in Gaza, citing militants’ use of crowded residential areas and tunnels.

Officials say they killed thousands of the enemy, without presenting evidence.

Israel’s offensive is one of the most devastating military campaigns in recent history.

More than 20,900 Palestinians, two-thirds women and children, have been killed, according to the Health Ministry in Gaza, whose count doesn’t differentiate between civilians and combatants. The agency said 240 people were killed over the past 24 hours.

The UN human rights office said the continued bombardment of middle Gaza had claimed more than 100 Palestinian lives since Christmas Eve. The office noted that Israel had ordered some residents to move there.

Thatcher ‘utterly shattered’ by MI5 revelations in Spycatcher, files reveal

Caroline Davies and Kevin Rawlinson
Thu, 28 December 2023 

Photograph: Phil Noble/PA

Margaret Thatcher was “utterly shattered” by the revelations in Spycatcher, the memoirs of the retired MI5 officer Peter Wright, files released publicly for the first time reveal.

The files also reveal the dilemmas faced by Thatcher’s government in its futile battle to suppress the book, including whether to agree to the Australian media tycoon Kerry Packer mediating an out of court “solution”.

Allegations by Wright, a former assistant director of MI5 who retired to Tasmania, included that the security agency had bugged embassies, that a small group of agents had plotted against the prime minister Harold Wilson, and that Sir Roger Hollis, the director general of MI5 from 1956-65, had been a Soviet mole.

The book, which was banned in the UK in 1985, was first published in Australia and the US after the government lost its long-running high-profile court case against Wright in Sydney in 1987.

The documents show the government losing control in a legal game of “whack-a-mole” as extracts popped up in newspapers and books appeared in shops and on library shelves around the world.

The government insisted the allegations were not new and had previously been investigated by MI5 and no evidence found, though Thatcher wrote on one document in October 1986: “I am utterly shattered by the revelations in the book. The consequences of publication would be enormous.”

The fear was that Wright, as an “insider”, could give the allegations greater credence, with the government seeking an injunction on the grounds of his “duty of confidentiality”, having signed the Official Secrets Act.

Offers by Wright to try to settle the case were made up to, and during, the Australian trial. As Sir Robert Armstrong, who was the cabinet secretary and the government witness in the case, was mid-evidence, Wright’s lawyer, Malcolm Turnbull, who would later become Australia’s prime minister, proposed a “solution” to be mediated by the Australian media tycoon Kerry Packer, the papers released by the National Archives show.

Turnbull suggested that Thatcher would recognise the problems with “old spooks wanting to tell their stories”, and set up an inquiry to look into adopting the US system, which allowed CIA agents to seek permission to publish books, so allowing Wright to publish with permission.

In return, Armstrong reported, she would be seen as a “champion of freedom of expression and freedom of speech” and Turnbull would do his best to say that he, Armstrong, “did a splendid job”. “Very good of him, I must say,” Armstrong added.

Noting the judge’s last words that afternoon had been Timeō Danaōs et dōna ferentēs – roughly translated as “beware the Greeks even when bearing gifts” – Armstrong pondered Turnbull’s motives. There was “not much enthusiasm for starting down” the road of negotiating the terms, if “we do not trust our Greek”, he wrote. After Thatcher held a meeting of senior government ministers and officials, the offer was rejected.

When the government lost the case, the question turned to appeal. The downside, one adviser told Thatcher, was Wright, aged 70 and in ill health, might die before the appeal, and the government would be “accused of ‘killing’ him by our intransigent attitude”. But Sir Nigel Wicks, Thatcher’s principal private secretary, believed the case for appeal was “overwhelming”. She agreed, writing in the margin of his memo: “We must appeal.”

It proved largely irrelevant, though, as the government then learned a US publishing house was planning to publish, and was advised it could not succeed in legal action in the US. “Very disturbing,” wrote Thatcher.

Douglas Hurd, the home secretary, warned “seepage” could affect the Australian appeal, and other cases in which the government was seeking to uphold injunctions against the Guardian, the Observer and the Sunday Times to prevent publication of Wright’s material, as well as against the Dominion newspaper in New Zealand. The files, dense with legal analysis and advice, show other countries where action possibly might be needed included Italy, South Africa, Pakistan, Singapore and Hong Kong.

One disheartening memo, from the arts minister Richard Luce, warned of a forthcoming international library conference in the UK, “with many American librarians coming over … we know that at least one British librarian has arranged to receive a copy of Spycatcher from a colleague for his library”.

Labour MEPs read extracts of the book in the record at the European parliament, which was included in the parliament’s official journal, due to be distributed in the UK through HMSO, the government’s stationery office. It left the government looking “foolish”, Wicks told Thatcher. “Yes, we must do everything we can to ensure the one hand of the government does not distribute what the other hand is trying to stop,” she wrote. But there was nothing, legally, they could do.

The Treasury solicitor, meanwhile, was dispatched to the clerk of the Commons to ensure no MPs attempted to read extracts in parliament, which would allow newspapers to report them “in plain frustration of the purpose of the injunctions”.

The files show how Thatcher tried, and failed, to dissuade the former prime minister Jim Callaghan from calling for an inquiry, which she was determined to resist. Meanwhile, her famously blunt press secretary, Bernard Ingham, predicted any inquiry would be “doomed before it begins to eventual dismissal as a whitewash”.

He wrote: “I consider a far more effective remedy would be for the security services (who have, after all, largely got themselves into this mess) publicly to shut up and secretly to grit their teeth, pull themselves together and get on with it.”

The book was cleared for sale in the UK in 1988 after the law lords – who carried out the judicial work of the House of Lords – acknowledged it contained no secrets. Wright was barred from receiving royalties from UK sales – the one victory the government could claim. He died, aged 78 and a millionaire, in 1995.