Cliffhanger: Can They Get to 'Yes'?












There are all sorts of theories floating around Washington about what kind of deficit reduction deal Democrats and Republicans eventually cut and when and how they get there.


And, nearing the end of a week when little progress appears to have been made, one thing is certain: Americans are worried about the consequences of going over the fiscal cliff.


According to a new Quinnipiac University poll out this morning, voters by a 47 to 23 percent margin said that the consequences of falling off the cliff, which include deep spending cuts and painful tax hikes, would be bad for the economy. And even more -- 53 percent -- said lawmakers' failure to avoid the cliff would be "bad for their personal financial situation" compared to just 13 percent who said it wouldn't.


What's more, President Obama and Democrats head into the final weeks before Christmas operating from a position of relative strength, at least when it comes to public opinion.


Read: What national "fiscal cliff" polls tells us (and what they don't)


Obama's post-election job approval rating stands at 53 percent, according to the latest Quinnipiac numbers (40 percent disapprove), and 53 percent of voters also said they trust the president and Democrats more than Republicans to work out a deal in the deficit negotiations.
But the question of how that happens is another matter altogether. Some Republicans say that the best option is to simply get President Obama and House Speaker John Boehner in a room together and wait for them to hammer out a deal mano-a-mano.




In an interview this week with Bloomberg News, President Obama disagreed.


"I don't think that the issue right now has to do with sitting in a room," he told Bloomberg's Julianna Goldman. "The issue right now that's relevant is the acknowledgment that if we're going to raise revenues that are sufficient to balance with the very tough cuts that we've already made and the further reforms in entitlements that I'm prepared to make, that we're going to have to see the rates on the top two percent go up. And we're not going to be able to get a deal without it."


Related: Can the mortgage deduction survive the fiscal cliff?


Nevertheless, House Republican Whip Rep. Kevin McCarthy, R-Calif., called on the president to lead and predicted that we are entering a crucial phase of the talks -- despite the fact that some lawmakers are leaving town for a long weekend.


"If you want the answer to solving the fiscal cliff, the House has put an offer on the table and the president now has to engage," McCarthy said at a news conference yesterday. "I think the next 72 hours are critical. If he sits back and continues to play politics that will give you your answer to where we are going. This is an opportunity for this country to lead. This is an opportunity for the president to lead."


And Speaker Boehner assured that he would "be available at any moment to sit down" with the president "to get serious about solving this problem." (President Obama and Boehner spoke by telephone yesterday).


In the end, more Americans are rooting for compromise rather than collapse: By a 48 to 43 percent margin, voters surveyed in today's Quinnipiac poll predicted that President Obama and Congress would reach agreement to avoid the cliff by the end of the year.



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Military halts clashes as political crisis grips Egypt


CAIRO (Reuters) - Egypt's Republican Guard restored order around the presidential palace on Thursday after fierce overnight clashes killed seven people, but passions ran high in a struggle over the country's future.


The Islamist president, Mohamed Mursi, criticized by his opponents for his silence in the last few days, was due to address the nation later in the day, state television said.


Hundreds of his supporters who had camped out near the palace overnight withdrew before a mid-afternoon deadline set by the Republican Guard. Dozens of Mursi's foes remained, but were kept away by a barbed wire barricade guarded by tanks.


The military played a big role in removing President Hosni Mubarak during last year's popular revolt, taking over to manage a transitional period, but had stayed out of the latest crisis.


Mursi's Islamist partisans fought opposition protesters well into the early hours during dueling demonstrations over the president's decree on November 22 to expand his powers to help him push through a mostly Islamist-drafted constitution.


Officials said seven people had been killed and 350 wounded in the violence, for which each side blamed the other. Six of the dead were Mursi supporters, the Muslim Brotherhood said.


The street clashes reflected a deep political divide in the most populous Arab nation, where contrasting visions of Islamists and their liberal rivals have complicated a struggle to embed democracy after Mubarak's 30-year autocracy.


The United States, worried about the stability of an Arab partner which has a peace deal with Israel and which receives $1.3 billion a year in U.S. military aid, has urged dialogue.


The commander of the Republican Guard said deployment of tanks and troop carriers around the presidential palace was intended to separate the adversaries, not to repress them.


"The armed forces, and at the forefront of them the Republican Guard, will not be used as a tool to oppress the demonstrators," General Mohamed Zaki told the state news agency.


Hussein Abdel Ghani, spokesman of the opposition National Salvation Front, said more protests were planned, but not necessarily at the palace in Cairo's Heliopolis district.


"Our youth are leading us today and we decided to agree to whatever they want to do," he told Reuters.


UNITY APPEAL


Egypt plunged into renewed turmoil after Mursi issued his November 22 decree and an Islamist-dominated assembly hastily approved a new constitution to go to a referendum on December 15.


The Supreme Guide of the Brotherhood, to which Mursi belonged before he was narrowly elected president in June, appealed for unity. Divisions among Egyptians "only serve the nation's enemies", Mohamed Badie said in a statement.


Rival factions used rocks, petrol bombs and guns in the clashes around the presidential palace.


"We came here to support President Mursi and his decisions. He is the elected president of Egypt," said demonstrator Emad Abou Salem, 40. "He has legitimacy and nobody else does."


Opposition protester Ehab Nasser el-Din, 21, his head bandaged after being hit by a rock the day before, decried the Muslim Brotherhood's "grip on the country", which he said would only tighten if the new constitution is passed.


Another protester, Ahmed Abdel-Hakim, 23, accused the Brotherhood of "igniting the country in the name of religion".


Mursi's opponents accuse him of seeking to create a new "dictatorship". The president says his actions were necessary to prevent courts still full of judges appointed by Mubarak from derailing a constitution vital for Egypt's political transition.


Mursi has shown no sign of buckling under pressure from protesters, confident that the Islamists, who have dominated both elections since Mubarak was overthrown, can win the referendum and the parliamentary election to follow.


Mahmoud Hussein, the Brotherhood's secretary-general, said holding the plebiscite was the only way out of the crisis, dismissing the opposition as "remnants of the (Mubarak) regime, thugs and people working for foreign agendas".


As well as relying on his Brotherhood power base, Mursi may also tap into a popular yearning for stability and economic revival after almost two years of political turmoil.


The Egyptian pound sank on Thursday to its lowest level in eight years, after previously firming on hopes that a $4.8 billion IMF loan would stabilize the economy. The Egyptian stock market fell 4.4 percent after it opened.


Foreign exchange reserves fell by nearly $450 million to $15 billion in November, indicating that the Central Bank was still spending heavily to bolster the pound. The reserves stood at about $36 billion before the anti-Mubarak uprising.


(Additional reporting by Tom Perry and Yasmine Saleh; Writing by Alistair Lyon; Editing by Giles Elgood)



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OUE sets deadline for F&N takeover offer






SINGAPORE: A consortium led by property group Overseas Union Enterprise (OUE) has set a deadline for its takeover offer of conglomerate Fraser and Neave (F&N).

Its S$13.1 billion offer for F&N will close on 3 January.

OUE is controlled by Lippo Group, a major Indonesian conglomerate that was founded by tycoon Mochtar Riady. Mr Mochtar is father of OUE's executive chairman Stephen Riady.

The OUE-led consortium offered to buy out shares of F&N at S$9.08 a piece on 15 November.

It is backed by Japanese brewer Kirin Holdings, which holds a 14.8 per cent stake in F&N. Kirin is also F&N's second largest shareholder.

OUE's offer was 2.25 per cent higher than the S$8.88 per share offered by rival TCC Assets, which is controlled by Thai beverage tycoon Charoen Sirivadhanabhakdi.

Through his entities TCC and Thai Beverage, he now owns almost a third of F&N.

TCC's S$8.7 billion bid for F&N will close on 11 December.

Analysts expect both sides to battle it out for F&N given the attractiveness of its property and soft drinks business.

They say TCC, which has extended the deadline on its offer twice, could ask for yet another extension next Tuesday before making their next move.

Liu Jinshu, deputy lead analyst at SIAS Research said: "TCC can't drag this out over a prolonged period, with the OUE bid announced last month, there is pressure for them to raise the stake.

"The premium offered by OUE's offer at S$9.08 a share is not high. TCC might not find it attractive after they have invested so much resources and effort in F&N. There is potential for TCC to rope in a partner and put in a higher bid for F&N."

F&N's share price closed at S$9.39 on Thursday, leading analysts to say that shareholders are holding out for a better offer and that a bidding war could emerge.

"We are seeing steady level being held at around the S$9.40-S$9.50 share mark on the exchange traded share. At the moment we are waiting to see who would move first in terms of putting in a better offer… I think we are likely to see both sides improve before we actually get to the end of any takeover," said Head of Premium Client Management at IG Markets Jason Hughes.

F&N is expected to appoint an independent financial advisor to review OUE's offer.

- CNA/jc



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BJP is bigger evil than Cong and JD(S): Yeddyurappa

BANGALORE: A week after snapping his four decade old association with BJP, former chief minister BS Yeddyurappa came down heavily on BJP, calling it 'a bigger evil' than Congress and JD(S).

"BJP is a bigger evil than Congress or JDS. So I have decided not to return to my previous party under any circumstance" Yeddyurappa said. However, he said he cannot forget the party as it has given him everything right from the post of president of a municipality to CM.

The 70-year-old former BJP strongman, who is set to formally launch his regional outfit Karnataka Janata Party in Haveri on Sunday said he has distanced himself from RSS ideology and is now wedded to the principles of Mahatma Gandhi, BR Ambedkar and Jayaprakash Narayan.

Yeddyurappa claimed that he has the support of 50 to 55 BJP MLAs and 12 MPs. He dared BJP leadership to take action against his supporters. In the same tenor, he also took on chief minister Jagadish Shettar. "I made a mistake in making Shettar CM. But I do not want to topple it and face allegations that I was responsible for it,'' he said.

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Longer tamoxifen use cuts breast cancer deaths


Breast cancer patients taking the drug tamoxifen can cut their chances of having the disease come back or kill them if they stay on the pills for 10 years instead of five years as doctors recommend now, a major study finds.


The results could change treatment, especially for younger women. The findings are a surprise because earlier research suggested that taking the hormone-blocking drug for longer than five years didn't help and might even be harmful.


In the new study, researchers found that women who took tamoxifen for 10 years lowered their risk of a recurrence by 25 percent and of dying of breast cancer by 29 percent compared to those who took the pills for just five years.


In absolute terms, continuing on tamoxifen kept three additional women out of every 100 from dying of breast cancer within five to 14 years from when their disease was diagnosed. When added to the benefit from the first five years of use, a decade of tamoxifen can cut breast cancer mortality in half during the second decade after diagnosis, researchers estimate.


Some women balk at taking a preventive drug for so long, but for those at high risk of a recurrence, "this will be a convincer that they should continue," said Dr. Peter Ravdin, director of the breast cancer program at the UT Health Science Center in San Antonio.


He reviewed results of the study, which was being presented Wednesday at a breast cancer conference in San Antonio and published by the British medical journal Lancet.


About 50,000 of the roughly 230,000 new cases of breast cancer in the United States each year occur in women before menopause. Most breast cancers are fueled by estrogen, and hormone blockers are known to cut the risk of recurrence in such cases.


Tamoxifen long was the top choice, but newer drugs called aromatase inhibitors — sold as Arimidex, Femara, Aromasin and in generic form — do the job with less risk of causing uterine cancer and other problems.


But the newer drugs don't work well before menopause. Even some women past menopause choose tamoxifen over the newer drugs, which cost more and have different side effects such as joint pain, bone loss and sexual problems.


The new study aimed to see whether over a very long time, longer treatment with tamoxifen could help.


Dr. Christina Davies of the University of Oxford in England and other researchers assigned 6,846 women who already had taken tamoxifen for five years to either stay on it or take dummy pills for another five years.


Researchers saw little difference in the groups five to nine years after diagnosis. But beyond that time, 15 percent of women who had stopped taking tamoxifen after five years had died of breast cancer versus 12 percent of those who took it for 10 years. Cancer had returned in 25 percent of women on the shorter treatment versus 21 percent of those treated longer.


Tamoxifen had some troubling side effects: Longer use nearly doubled the risk of endometrial cancer. But it rarely proved fatal, and there was no increased risk among premenopausal women in the study — the very group tamoxifen helps most.


"Overall the benefits of extended tamoxifen seemed to outweigh the risks substantially," Dr. Trevor Powles of the Cancer Centre London wrote in an editorial published with the study.


The study was sponsored by cancer research organizations in Britain and Europe, the United States Army, and AstraZeneca PLC, which makes Nolvadex, a brand of tamoxifen, which also is sold as a generic for 10 to 50 cents a day. Brand-name versions of the newer hormone blockers, aromatase inhibitors, are $300 or more per month, but generics are available for much less.


The results pose a quandary for breast cancer patients past menopause and those who become menopausal because of their treatment — the vast majority of cases. Previous studies found that starting on one of the newer hormone blockers led to fewer relapses than initial treatment with tamoxifen did.


Another study found that switching to one of the new drugs after five years of tamoxifen cut the risk of breast cancer recurrence nearly in half — more than what was seen in the new study of 10 years of tamoxifen.


"For postmenopausal women, the data still remain much stronger at this point for a switch to an aromatase inhibitor," said that study's leader, Dr. Paul Goss of Massachusetts General Hospital. He has been a paid speaker for a company that makes one of those drugs.


Women in his study have not been followed long enough to see whether switching cuts deaths from breast cancer, as 10 years of tamoxifen did. Results are expected in about a year.


The cancer conference is sponsored by the American Association for Cancer Research, Baylor College of Medicine and the UT Health Science Center.


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Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP


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Majority Back Clinton for Presidential Bid in 2016


ap hillary clinton jp 121204 wblog Hillary Clinton Wins High Popularity, Majority Support for a 2016 Bid

Kevin Lamarque/AP Photo


Carried by a new high in personal popularity and broad approval of her work as secretary of state, Hillary Clinton closes out her diplomatic career with majority support as a candidate for president in 2016.


Fifty-seven percent in the latest ABC News/Washington Post poll say they’d back a run by Clinton to succeed Barack Obama, vs. 37 percent opposed. That includes a broad gender gap – 66 percent support for Clinton among women, dropping to 49 percent among men.


See PDF with full results, charts and tables here.


Clinton is expected to step down soon from her leadership of the State Department, a position she accepted after narrowly losing the Democratic presidential nomination to Obama in 2008. She’s demurred on the prospect of another bid for the presidency.


Clinton’s fared well during her tenure at State; 68 percent approve of her work, second only to Colin Powell among the last five secretaries of state. (He managed a remarkable 85 percent approval in 2002 and 2003.) Similarly, two-thirds in this poll, produced for ABC by Langer Research Associates, see Clinton favorably overall, numerically a new high in her long public career as first lady, U.S. Senator, presidential candidate and top U.S. diplomat.


Clinton’s recovered from personal favorability as low as 44 percent in April 2008, during her presidential run; she also dropped that low in June 2003, when she was discussed as a possible candidate in the 2004 presidential race, and in June 1996, during the Whitewater controversy. Those dips underscore the potential risks should she climb back into the political fray.


In another sign of the challenges of a political candidacy, intensity of sentiment is better for Clinton personally, and as secretary of state, than it is for her as a candidate. Her “strongly” favorable rating and strong approval of her job performance outnumber her strong negatives, in both cases, by more than 2-1 margins. Strong support for her as a candidate also outweighs strong opposition, but much more narrowly, by 9 percentage points, 36 to 27 percent.


2016 and GROUPS – Politics are comparative, so actual support for Clinton as a candidate would depend more than anything on her opponents, in the Democratic primaries and general election alike. That said, having 57 percent willing to give you a look (55 percent among registered voters) is not a bad starting point – and the differences among groups are telling.


In addition to the gender gap there are sharp differences between age and racial groups, generally similar to Obama’s support patterns. Young adults, age 18 to 29, support Clinton for president by nearly 2-1; that falls to an even split among seniors. And while she gets 52 percent support among whites, that jumps to 70 percent among nonwhites, a strongly Democratic group.


Clinton does less well among nonwhites than did Obama, who won re-election with 80 percent of their support last month. That said, while majorities of white men and married men say they’d oppose a Clinton candidacy, she’s backed by more than six in 10 white women and married women – two groups that Obama lost.


Among other groups, support for Clinton in 2016 tops out at eight in 10 Democrats and liberals, vs. 23 and 24 percent of Republicans and strong conservatives, respectively. About two-thirds of moderates and six in 10 independents say they’d support a Clinton candidacy.


It’s hard to see Clinton winning 23 percent of Republicans in an actual campaign; no Democrat has come close to that mark in exit polls dating back 36 years. That’s another sign that, while currently her numbers are positive, actually running for president can be messier than it looks from a popular perch at Foggy Bottom.


METHODOLOGY – This ABC News/Washington Post poll was conducted by landline and cell phone Nov. 28-Dec. 2, 2012, among a random national sample of 1,020 adults. Results have a margin of sampling error of 4 points. The survey was produced for ABC News by Langer Research Associates of New York, N.Y., with sampling, data collection and tabulation by SSRS/Social Science Research Solutions of Media, Pa.

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Confrontation between rival protesters looms in Egypt crisis


CAIRO (Reuters) - Egypt's Muslim Brotherhood called for a rally backing President Mohamed Mursi outside his palace on Wednesday and leftists planned a counter-demonstration, raising fears of clashes in a crisis over a disputed push for a new constitution.


Mursi returned to work at his compound a day after it came under siege from opposition protesters furious at his drive to ratify a new constitution in a snap referendum set for December 15 after temporarily expanding his powers by decree.


The Islamist president said he acted to prevent courts still full of appointees from the era of autocratic predecessor Hosni Mubarak from derailing the draft constitution meant to complete a political transition in the Arab world's most populous state.


The Brotherhood, from which Mursi emerged to narrowly win a free election in June, summoned supporters to a demonstration outside the palace in response to what it termed "oppressive abuses" by opposition parties.


Brotherhood spokesman Mahmoud Ghozlan was quoted on its Facebook page as saying opposition groups "imagined they could shake legitimacy or impose their views by force".


Leftist opposition leader Hamdeen Sabahy promptly urged his supporters to go to the streets as well, heightening the chances of confrontation between Islamists and their opponents.


A spokeswoman for Sabahy's Popular Current movement asked protesters to head to the palace to reinforce those still camped out there after Tuesday evening's protests, in which officials said 35 protesters and 40 police were wounded.


Although they fired tear gas when protesters broke through barricades to reach the palace walls, riot police appeared to handle those disturbances with restraint.


About 200 protesters camped out overnight, blocking one gate to the palace in northern Cairo, but traffic was flowing normally and riot police had been withdrawn.


"Our demands to the president: retract the presidential decree and cancel the referendum on the constitution," read a placard hung by demonstrators on a palace gate.


The rest of the Egyptian capital was calm, despite the political furor over Mursi's November 22 decree handing himself wide powers and shielding his decisions from judicial oversight.


Crowds had gathered on Tuesday for what organizers dubbed a "last warning" to Mursi. "The people want the downfall of the regime," they chanted, roaring the signature slogan of last year's uprising that ousted Mubarak.


But the "last warning" may turn out to be one of the last gasps for a disparate opposition that has little chance of stopping next week's vote on a constitution drafted over six months and swiftly approved by an Islamist-dominated assembly.


MURSI STANDS HIS GROUND


Facing the gravest crisis of his six-month-old tenure, the Islamist president has shown no sign of buckling under pressure, confident that the Muslim Brotherhood and its Islamist allies can win the referendum and a parliamentary election to follow.


Many Egyptians yearn for an end to political upheaval that has scared off investors and tourists, damaging the economy.


Ahmed Kamel, spokesman for the Congress Party led by former Arab League chief Amr Moussa, said Mursi should meet opposition demands, not call for an Islamist counter-demonstration.


Some protesters have already gone beyond opposition calls for Mursi to scrap his decree, defer the referendum and set up a "representative committee" to revise the draft constitution, instead demanding the president's overthrow.


"The demands of the street are moving faster than those of the politicians," said Elijah Zarwan, a fellow with the European Council on Foreign Relations. "Now is the time for the Egyptian liberals to negotiate without conditions."


COURT PROTEST


Dozens of pro-Mursi demonstrators, watched by equal numbers of police, waved flags outside the Supreme Constitutional Court, whose rulings have complicated the Islamists' rise to power.


"You are not a political agency," read one banner held by the demonstrators, addressing a court that in June ordered the dissolution of the Islamist-led lower house of parliament.


Mursi issued his decree temporarily putting his actions above the law to forestall any court ruling to dissolve the upper house or the assembly that wrote the constitution.


State institutions, with the partial exception of the judiciary, have mostly fallen in behind Mursi.


The army, the power behind all previous Egyptian presidents in the republic's six-decade history, has gone back to barracks, having apparently lost its appetite to intervene in politics.


In a bold move, Mursi sacked Mohamed Hussein Tantawi, the Mubarak-era army commander and defense minister, in August and removed the sweeping powers that the military council which took over after Mubarak's fall had grabbed two months earlier.


The liberals, leftists, Christians, ex-Mubarak followers and others opposed to Mursi, elected in a close result against a secular rival, have yet to generate a mass movement or a grassroots political base to challenge the Brotherhood.


Protesters have scrawled "leave" over Mursi's palace walls, but the president has made clear he is not going anywhere.


"The crisis we have suffered for two weeks is on its way to an end, and very soon, God willing," Saad al-Katatni, head of the Brotherhood's Freedom and Justice Party, told Reuters.


Investors have seized on hopes that Egypt's turbulent transition, which has buffeted the economy for two years, may soon head for calmer waters, sending stocks 1.6 per cent higher after a 3.5 percent rally on Tuesday.


The most populous Arab nation has turned to the IMF for a $4.8 billion loan to help it out of a crisis that has depleted its foreign currency reserves.


The government said on Wednesday the process was on track and Egypt's request would go to the IMF board as expected.


(Additional reporting by Tom Perry and Yasmine Saleh; Writing by Alistair Lyon; Editing by Mark Heinrich)



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AA to introduce new advanced defensive driving course






SINGAPORE: The Automobile Association of Singapore (AA) plans to introduce a new advanced defensive driving course, as part of its continuing efforts to promote safe driving and safer roads.

Speaking at the AA's 105th charity gala dinner held at the Ritz-Carlton Millenia Singapore, AA president Bernard Tay said that the association will be working with the authorities on the curriculum.

No timeline was announced for the course. AA holds defensive driving courses for the public once a year with the next one expected in June or July next year.

Some driving schools in Singapore such as the Bukit Batok driving centre currently conduct a day course on defensive driving, which includes skid planning and emergency planning. At Woodlands Driving school, defensive driving is included in their basic driving courses.

Mr Tay also announced that S$700,000 had been collected for three beneficiaries - the Singapore Road Safety Council, the Teck Ghee Citizens' Consultative Committee Community Development & Welfare Fund and the National Arthritis Foundation.

The event was graced by Prime Minister Lee Hsien Loong and Members of Parliament Cedric Foo, Hri Kumar Nair and Lam Pin Min.

Mr Lee noted the growth of the AA from 56 members in 1907 to over 83,000 members today.

"We are a completely different world but it's a world where there's still a role for AA to serve their members, to educate them on road safety, provide them with services," said Mr Lee. - TODAY



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CBI likely to file FIR in offshore mining case

NEW DELHI: CBI is likely to register a case in connection with alleged irregularities in the country's first-ever attempt of offshore mining to explore untapped mineral wealth worth thousands of crores in the sea bed.

The agency, which had registered a preliminary inquiry in September, found enough material to proceed with regular case against some of the beneficiary companies and government officials posted at Indian Bureau of Mines in Nagpur, CBI sources said.

They said at least three officials of the Indian Bureau of Mines are likely to be named in the FIR along with four companies related to family members of an Indian Revenue Services officer who grabbed nearly half of 62 blocks which were put on offer despite lacking necessary qualifications.

They said last year, the government in a first attempt to explore offshore mineral wealth, had placed 62 blocks on offer out of which 28, nearly half, were bagged by companies owned by family members of the former Enforcement Directorate official who had also served in the mines ministry.

The final award of licences had been put on hold after aggrieved parties approached the Bombay high court and the Andhra Pradesh high court seeking their cancellation.

The companies allegedly owned by the son and brother of the officer are based in the national capital, they said.

It is alleged that companies were incorporated after bids were invited from the interested parties willing to go for exploration and did not have any experience in offshore mining at the time of notification.

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Fossil fuel subsidies in focus at climate talks


DOHA, Qatar (AP) — Hassan al-Kubaisi considers it a gift from above that drivers in oil- and gas-rich Qatar only have to pay $1 per gallon at the pump.


"Thank God that our country is an oil producer and the price of gasoline is one of the lowest," al-Kubaisi said, filling up his Toyota Land Cruiser at a gas station in Doha. "God has given us a blessing."


To those looking for a global response to climate change, it's more like a curse.


Qatar — the host of U.N. climate talks that entered their final week Monday — is among dozens of countries that keep gas prices artificially low through subsidies that exceeded $500 billion globally last year. Renewable energy worldwide received six times less support — an imbalance that is just starting to earn attention in the divisive negotiations on curbing the carbon emissions blamed for heating the planet.


"We need to stop funding the problem, and start funding the solution," said Steve Kretzmann, of Oil Change International, an advocacy group for clean energy.


His group presented research Monday showing that in addition to the fuel subsidies in developing countries, rich nations in 2011 gave more than $58 billion in tax breaks and other production subsidies to the fossil fuel industry. The U.S. figure was $13 billion.


The Paris-based Organization for Economic Cooperation and Development has calculated that removing fossil fuel subsidies could reduce carbon emissions by more than 10 percent by 2050.


Yet the argument is just recently gaining traction in climate negotiations, which in two decades have failed to halt the rising temperatures that are melting Arctic ice, raising sea levels and shifting weather patterns with impacts on droughts and floods.


In Doha, the talks have been slowed by wrangling over financial aid to help poor countries cope with global warming and how to divide carbon emissions rights until 2020 when a new planned climate treaty is supposed to enter force. Calls are now intensifying to include fossil fuel subsidies as a key part of the discussion.


"I think it is manifestly clear ... that this is a massive missing piece of the climate change jigsaw puzzle," said Tim Groser, New Zealand's minister for climate change.


He is spearheading an initiative backed by Scandinavian countries and some developing countries to put fuel subsidies on the agenda in various forums, citing the U.N. talks as a "natural home" for the debate.


The G-20 called for their elimination in 2009, and the issue also came up at the U.N. earth summit in Rio de Janeiro earlier this year. Frustrated that not much has happened since, European Union climate commissioner Connie Hedegaard said Monday she planned to raise the issue with environment ministers on the sidelines of the talks in Doha.


Many developing countries are positive toward phasing out fossil fuel subsidies, not just to protect the climate but to balance budgets. Subsidies introduced as a form of welfare benefit decades ago have become an increasing burden to many countries as oil prices soar.


"We are reviewing the subsidy periodically in the context of the total economy for Qatar," the tiny Persian gulf country's energy minister, Mohammed bin Saleh al-Sada, told reporters Monday.


Qatar's National Development Strategy 2011-2016 states it more bluntly, saying fuel subsides are "at odds with the aspirations" and sustainability objectives of the wealthy emirate.


The problem is that getting rid of them comes with a heavy political price.


When Jordan raised fuel prices last month, angry crowds poured into the streets, torching police cars, government offices and private banks in the most sustained protests to hit the country since the start of the Arab unrest. One person was killed and 75 others were injured in the violence.


Nigeria, Indonesia, India and Sudan have also seen violent protests this year as governments tried to bring fuel prices closer to market rates.


Iran has used a phased approach to lift fuel subsidies over the past several years, but its pump prices remain among the cheapest in the world.


"People perceive it as something that the government is taking away from them," said Kretzmann. "The trick is we need to do it in a way that doesn't harm the poor."


The International Energy Agency found in 2010 that fuel subsidies are not an effective measure against poverty because only 8 percent of such subsidies reached the bottom 20 percent of income earners.


The IEA, which only looked at consumption subsidies, this year said they "remain most prevalent in the Middle East and North Africa, where momentum toward their reform appears to have been lost."


In the U.S., environmental groups say fossil fuel subsidies include tax breaks, the foreign tax credit and the credit for production of nonconventional fuels.


Industry groups, like the Independent Petroleum Association of America, are against removing such support, saying that would harm smaller companies, rather than the big oil giants.


In Doha, Mohammed Adow, a climate activist with Christian Aid, called all fuel subsidies "reckless and dangerous," but described removing subsidies on the production side as "low-hanging fruit" for governments if they are serious about dealing with climate change.


"It's going to oil and coal companies that don't need it in the first place," he said.


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Associated Press writers Abdullah Rebhy in Doha, Qatar, and Brian Murphy in Dubai, United Arab Emirates, contributed to this report


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Karl Ritter can be reached at www.twitter.com/karl_ritter


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