Showing posts with label minister. Show all posts
Showing posts with label minister. Show all posts

2011/10/15

New UK defense minister appointed after scandal (AP)

LONDON – Britain's defense minister quit Friday in the face of an influence-peddling scandal focused on the role of a close friend who was present on scores of overseas trips despite having no government role

Liam Fox was replaced by Philip Hammond, 55, a veteran Conservative Party lawmaker who had been transport secretary.

Fox resigned Friday evening following days of allegations about the influence-peddling of a close personal friend who joined him on key foreign visits and posed as an unofficial aide.

The outgoing Fox became the first Conservative Party lawmaker to quit Britain's Cabinet since the country's coalition government was formed following an inconclusive election in May 2010.

Hammond, who is married with three children, is seen as a steady, reliable manager who will be charged with overseeing severe budget cuts at the defense department while managing the difficult war in Afghanistan.

Fox became cornered by questions over the policy influence of his 34-year-old friend Adam Werritty, who served as the best man at Fox's 2005 wedding and with whom he had once shared an apartment. Critics demanded to know who was funding the younger man's tours across the globe to join the minister on 18 overseas visits.

Questions were also raised about whether Werritty was representing groups interested in building ties with Fox to gain defense contracts, or seeking to curry favor with the British defense establishment.

Fox, 50, had initially insisted he planned to continue in his role leading Britain's armed forces, but he was sunk by continued disclosures over Werritty's activities.

"I mistakenly allowed the distinction between my personal interest and my government activities to become blurred," Fox told Prime Minister David Cameron in his resignation letter. "The consequences of this have become clearer in recent days. I am very sorry for this."

Cameron praised Fox's work, saying he had overseen changes at the defense ministry that would ensure the armed forces were "fully equipped to meet the challenges of the modern era."

"On Libya, you played a key role in the campaign to stop people being massacred by the Gadhafi regime and instead win their freedom," Cameron wrote.

Fox also played an important role implementing controversial budget cuts throughout the military.

Though Werritty did not have an official paid role with the defense ministry, he had business cards listing him as an adviser to Fox.

Fox, who was voted in to parliament in 1992, said he had no plans to quit the House of Commons.

However, he expressed regret at leaving his position while military operations are ongoing in Afghanistan and Libya.

"I am proud also to have played a part in helping to liberate the people of Libya, and I regret that I will not see through to its conclusion Britain's role in Afghanistan, where so much progress has been made," he said.

Fox was brought up on a public housing estate in Glasgow, Scotland's largest city and studied medicine at the University of Glasgow, where he became involved in politics.

Though he married his long term girlfriend Dr. Jesme Baird in 2005, he had been the frequent subject of speculation over his sexual orientation.

Critics further pressed Fox on the relationship with Werritty after he disclosed on Monday they had met 40 times since May 2010, including on business trips and family holidays overseas.

Werritty had previously worked for Fox's Atlantic Bridge organization, a now defunct charity that promoted hawkish foreign policy views and sought to become a forum for neo-conservatives in London and Washington.

Fox, who contended for the Conservative Party leadership but came in third in a contest won by Cameron in 2005, was closely allied to Margaret Thatcher, a patron of his charity. The ex-prime minister attended his 50th birthday party last month, though she is now 86 and usually too weak to go out in public.

The departed defense minister was known for favoring closer ties to the United States and had alienated some in his party with his views.

Main opposition Labour Party lawmaker Jim Murphy said Fox's actions in allowing Werritty access to visits, and to arrange a meeting in Dubai with a potential supplier had breached rules governing the conduct of ministers.

Supporter Louise Mensch, a Conservative Party legislator, said Fox's exit was regrettable.

"He was an outstanding Secretary of State for defense and a completely dedicated minister," she wrote on Twitter.

Britain's top civil servant is continuing an inquiry aimed at determining whether Fox breached rules, and whether Werritty profited personally.

Hammond is being replaced at the transport ministry by Justine Greening, a rising legislator within Prime Minister David Cameron's party.

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Associated Press Writer Meera Selva contributed to this report.


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2011/09/04

Italy minister says no pressure on ECB over bonds (Reuters)

CERNOBBIO, Italy (Reuters) – Economy Minister Giulio Tremonti promised on Sunday to meet Italy's budget pledges after growing speculation over whether the European Central Bank may cut back its purchases of Italian government debt.

Tremonti, under mounting pressure to present a credible plan to fulfill a pledge of balancing the budget by 2013 and cutting Italy's 1.9 trillion euro debt pile, told a business conference in the northern town of Cernobbio that the target would be met.

However he admitted that a hastily put-together package of measures presented to parliament in August and now undergoing substantial revision, had been incomplete.

"When you take measures in four days you can make mistakes, it's true," he told a conference discussion.

The regular Ambrosetti conference in Cernobbio near Milan this weekend has brought growing doubts about the 45.5 billion euro austerity package to a head following a week of rising market pressure on Italian government bonds.

Both ECB President Jean-Claude Trichet and Italy's head of state, President Giorgio Napolitano issued strong calls for swift action following widespread criticism of the haphazard way in which the plan was being handled.

Marco Tronchetti Provera, chairman of tyremaker Pirelli, one of the icons of Italian industry, said Tremonti's speech to the conference had been clear but it had not eliminated doubts about the gravity of the situation.

"I repeat that anyone who is not concerned about this situation is making a mistake," he told reporters.

The head of Confindustria, Italy's largest employer federation also took aim at the government during the conference, saying the plans presented so far did not do nearly enough to stimulate the country's anaemic growth rates.

Underlining the growing concerns, the premium investors demand to hold Italian debt rather than benchmark German bonds rose on Friday to 331 basis points, the highest since the ECB started buying Italian paper in August.

Yields on 10-year Italian bonds ended the week at 5.29 percent, creeping back up toward the 7 percent level generally regarded as unmanageable.

ECB INTERVENTION

With the spreads over German debt widening ominously, there was growing speculation over whether the ECB would continue buying Italian debt, a strategy that has caused sharp divisions within the Frankfurt-based central bank.

The ECB has been buying Italy's bonds in the market to try to hold down yields and stop Rome's borrowing costs spiralling out of control, there has been a growing sense of frustration that the government has not done enough itself.

"Our biggest concern is that the ECB might halt its purchases of Italian bonds, which would cause spreads to widen again," the head of Confindustria, Emma Marcegaglia, told reporters. "In this case, Italy would have huge problems."

On Saturday, Trichet declined to comment on the bond buying programme ahead of a Governing Council meeting on Thursday.

Italy, the euro zone's third largest economy, has been dragged ever closer to an emergency that could overwhelm any existing euro zone bailout mechanisms. But there have been worries in Germany that the ECB is blurring the lines between monetary policy and governments' own fiscal responsibilities.

Italy's Foreign Minister Franco Frattini, who said on Saturday that the government was pressing the ECB to keep up the purchases, backtracked on Sunday, saying the central bank was independent and Rome was not exerting pressure.

Tremonti offered no substantial new pledges on the timing or substance of the austerity package, which has been subject of repeated changes and dispute over the past weeks.

However he repeated his longstanding call for jointly issued euro bonds, which have been rejected by Germany.

"The euro bonds will absolutely be done," he said. "Either we do euro bonds or we will have critical problems," he said.

Frattini told reporters the Senate would approve the new package by the end of next week and that approval from the Lower House would follow swiftly.

"I don't see any reason why the government should ask for a confidence vote on the budget," he added.

(Writing by James Mackenzie, editing by Rosalind Russell)


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