Nato troops killed in Afghanistan

ISAF troops in AfghanistanThe death toll among foreign troops is rising

Six foreign soldiers have been killed in an attack in southern Afghanistan, the Nato-led International Security Assistance Force (Isaf) says.

The incident happened on Sunday, Isaf said in a statement.

The alliance gave no further details about the attack, or the nationality of the soldiers killed.

The death toll is the highest for foreign soldiers in a single incident since six were shot dead by a renegade border policeman on 29 November.

Fighting has intensified in the south of the country as US troops have tried to push Taliban militants out of their strongholds in Helmand and Kandahar provinces.

More than 670 international soldiers have been killed in Afghanistan so far this year, well above the 502 killed in the whole of 2009.

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EU bail-outs to hit bond holders

Anti-bail-out protesters burn a placard with the face of Taoiseach Brian Cowen on itThe new bail-out mechanism comes too late for the Irish, who are angry at the cost of their rescue

The EU plans to make private lenders cover the losses of any future eurozone debt crisis, the BBC has learned.

The decision may significantly raise the future cost of borrowing for over-indebted eurozone governments.

It is part of a new permanent scheme – to be funded by eurozone governments, but not the UK – to replace existing bail-out funds that expire in 2013.

The new mechanism will need a treaty change, which may lead to ratification problems in the Irish Republic.

The details of the proposed European Stability Mechanism are included in a draft European Union communique obtained by the BBC.

The changes come too late for the Republic of Ireland, which was forced by European partners to foot the bill for rescuing its banks in order to get an 85bn euro bail-out.

In future, Brussels may require a crisis-stricken eurozone government to force losses on its existing private lenders – including investors in government bonds – before it would provide a bail-out package.

Analysis

The creation of the European Stability Mechanism in 2013 will formally collapse one of the founding principles of the single currency, ie the “no bail-out” clause.

Rescuing ailing economies will now be enshrined in law through what the draft communique describes as “limited treaty change”. This change may prove to be a headache for some EU member states, especially Britain, whose prime minister vowed to call a referendum if any new powers were to be ceded to Brussels.

It will also be a major issue for the Irish Republic, whose constitution demands that any EU treaty changes get the blessing of the entire electorate. Many Irish people are livid at the high rate of interest (5.83%) demanded from their European partners as part of their 85bn euro bail-out and may exact bitter revenge in a referendum.

And if a government got into trouble later down the line, it would be required to default on its other debts, while continuing to make payments on its rescue loans.

“That won’t please the markets, who thought that holding government bonds was as safe as cash deposits,” says BBC business correspondent Joe Lynam.

From June 2013, government bonds will also have to include “collective action clauses”, which would make it much easier for an insolvent government to get the consent of its lenders to any future debt write-offs.

Together, the changes mean a government’s private-sector lenders will face a much bigger risk of losing their money.

And this means they are likely to charge the more heavily indebted eurozone member states a higher interest rate.

The rhetoric in the communique comes in stark contrast to the actual bail-out of the Irish Republic in November.

In that rescue, Brussels is accused of having insisted that Dublin honour in full its guarantee of the Irish banks. Many Irish are angry that this has landed taxpayers with the bill for repaying loans made to its insolvent banks.

Irish Taoiseach Brian Cowen (left) and Finance Minister Brian Lenihan (right)Brussels is accused of making the Irish government foot the bill for bailing out its banks

However, with European banks dangerously undercapitalised, European leaders feared that a default by the Irish banks could trigger a Europe-wide banking crisis.

Separately, the EU is planning to carry out a new, and much stricter, set of stress tests on its big banks this year.

The tests will determine how much capital the banks need to absorb future losses.

The previous stress tests, held over the summer, were criticised for failing to consider the possibility of a default by a eurozone government.

The planned Lisbon Treaty amendment is short and open-ended, leaving European leaders flexibility to structure the new arrangement however they choose.

It states only that: “The Member States whose currency is the euro may establish a stability mechanism to safeguard the stability of the euro area as a whole. The granting of financial assistance under the mechanism will be made subject to strict conditionality.”

The amendment may also open the way towards a common eurozone government bond at a later date.

This was a solution to the eurozone debt crisis proposed by Luxembourg Prime Minister Jean-Claude Juncker and Italian Finance Minister Giulio Tremonti, but rejected by Germany.

Ratification of the treaty change may prove a challenge in some countries.

The Irish Republic’s constitution requires a referendum at a time when the public is angry with Europe over the harsh terms of their bail-out.

In the UK, the amendment is not expected to trigger a referendum.

The draft communique states that EU members outside the eurozone – such as the UK – may choose to participate in the new bail-out arrangement “on an ad hoc basis”.

However, right-wing members of his Conservative party may demand that Prime Minister David Cameron use the opportunity to negotiate UK opt-outs from existing treaty requirements.

The communique also said that the EU will endorse making Montenegro an official candidate to join the European Union, meaning the country can begin formal accession negotiations.

Government deficits as proportion of GDP

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Hughes Lib Dem plea: Stay with us

Danny Alexander Danny Alexander: Coalition bringing in many Lib Dem policies

The Conservative-Liberal Democrat coalition is “rock solid” and will last a full five years, Chief Secretary to the Treasury Danny Alexander has said.

He told the BBC’s Andrew Marr Show that a number of Lib Dem MPs were unhappy with the tuition fees rise, but not with the coalition as a whole.

He said it was bringing in key Lib Dem policies such as a referendum on voting and taking poor people out of taxation.

John Denham told the same show Labour “was reaching out” to unhappy Lib Dems.

The shadow business secretary said Labour was showing it was not “tribal” under Ed Miliband’s leadership

Mr Denham said Labour had worked very hard to try and head off the tuition fees rise, and would continue to work with others who were “progressive”.

However former Conservative Prime Minister Sir John Major dismissed talk that the coalition was under threat because of unhappiness amongst both Conservative and Lib Dem MPs.

Sir John said that there might be difficulties at the moment but people had to “hold their courage”, and things would come right.

He said that the Lib Dems would share credit from voters ahead of the next election for the work the coalition had done in tackling the economic situation inherited.

Sir John also dismissed the idea of a merger between the Conservatives and Lib Dems, although he repeated his belief that the coalition could continue through an election.

And he said Mr Denham’s comments earlier on the programme had “made my blood boil”.

He said the Conservatives and Lib Dems had come together in the national interest and said this was not a time “to be playing party games”.

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Presiding officer looks to future

Welsh assembly presiding officer Lord Dafydd Elis-Thomas has cast doubt on whether he’ll remain in the role if re-elected as an AM next May.

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Plan for rescue fleet to be sold

RAF helicopter

The changes will effect Prince William’s fleet

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RAF Valley in Anglesey is facing an uncertain future as plans by the UK government to sell off its search and rescue helicopter service are expected.

A government source says the sale of the helicopter service to a consortium will be given the go-ahead.

Some coastguard control centres – which coordinate UK rescue efforts – are also expected to close under government spending cuts.

The Department for Transport needs to cut spending by 15% over four years.

But it also wants to modernise the rescue service, replacing its aging fleet of helicopters.

However, there has already been concerns raised by mountain rescue teams in Wales.

Chris Lloyd from Ogwen Valley Mountain Rescue which covers Snowdonia, said in an interview for BBC Wales Today last month: “I’m not quite sure how the new contract will be set up but there are disadvantages in that we might not get any training to work with the helicopters as we have very good training with the RAF helicopters at the moment.

Prince WilliamPrince William qualified as a pilot in September at RAF Valley in north Wales

“And, also, I’m not quite sure of the flying regulations for civilianised aircraft because I know the military can operate in more difficult conditions than civilian aircraft.”

Prince William, or Ft Lt Wales, graduated as a search and rescue pilot after 19 months of training at RAF Valley, taking up post in September.

His training included day and night flying and training to provide a life-saving rescue service to both military personnel and civilians in the UK.

“While we appreciate that these cutbacks need to take place for a reason, they are going to put rescuers and casualties at greater risk.”

Mark Jones Brecon Mountain Rescue Team

It is thought the plans will not affect the Prince who will have completed his tour of duty with 22 Squadron by the time the plans are implemented in 2016.

The previous UK government proposed that private companies should take over the running of search and rescue helicopters from the RAF and that the Sea King fleet – in which Prince William learned to fly – should be scrapped.

This service is currently provided by the RAF and Royal Navy, plus civilian helicopters through the Maritime and Coastguard Agency (MCA).

In February it was announced that the 24-hour service would be run by private consortium Soteria from 2012, from 12 bases across the UK.

Aviation journalist Jim Ferguson said confirmation of the private finance initiative was expected on Tuesday.

“We were expecting a statement to the stock market on Tuesday saying a consortium – partly French, partly Canadian – based in Aberdeen – will be taking over the UK search and rescue fleet starting from 2012,” he said in an interview on BBC Radio Wales’ Sunday Supplement.

“My understanding of this is that there will be no change in unit locations so RAF Valley will remain where it is.

“There is a suggestion that (RAF) Chivenor (Devon) which covers south Wales will go from 24/7 availability to 12 hours a day – that has to be confirmed.”

Mark Jones, deputy team leader at Brecon Mountain Rescue Team, said, following a rescue in the Beacons earlier this month, that plans to downgrade the Chivenor operation should be reconsidered.

“While we appreciate that these cutbacks need to take place for a reason, they are going to put rescuers and casualties at greater risk,” he said.

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Sweden probes ‘terrorist’ attack

Car on fire

Police spokesman Ulf Goranzon says investigations are continuing

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Two explosions in Sweden’s capital Stockholm are being investigated as a “crime of terror”, officials say.

A car blew up in a busy shopping area on Saturday afternoon, followed moments later by a second explosion nearby.

Witnesses said a man found dead after the second blast had been carrying an explosive device. Two people were hurt.

Swedish PM Fredrik Reinfeldt condemned the attacks as unacceptable in an open society with a functioning democracy that respects different cultures.

“Our democracy functions well,” he told a press conference. “Those who feel frustration or anger have the opportunity to express it without resorting to violence.”

Police are investigating an e-mail sent shortly before the blasts threatening attacks because Sweden had sent troops to Afghanistan.

Sweden has some 500 soldiers deployed in Afghanistan as part of the international military force.

Police are trying to work out whether the explosions were an isolated attack or part of a larger conspiracy, says the BBC’s Steve Evans in Stockholm.

The e-mail, which was sent to the country’s security service and the TT news agency, called for “mujahideen” – or Islamist fighters – to rise up in Sweden and Europe, promising Swedes would “die like our brothers and sisters”.

It also attacked the country for caricatures of the Prophet Muhammad drawn by Swedish artist Lars Vilks.

A police forensics officer examines the area around the man killed in Stockholm, 11 DecemberA man found dead near the site of the second explosion has not been named

“The mail was about one man,” police spokesman Ulf Goranzon told a press conference on Sunday.

“He was not satisfied with developments in Sweden regarding [the fact] that we have military troops in other countries, that there had been protests and that there have been said bad things about the Prophet [Muhammad].”

While the investigation is at an early stage, the nature of the explosions does look similar to previous attempted attacks in New York, Glasgow and London, says the BBC’s defence and security correspondent, Nick Childs.

Saturday’s blasts struck as people were out Christmas shopping.

Failed car bomb attacks2 May 2010: New York police defuse improvised car bomb after vehicle loaded with propane tanks, fireworks, petrol and a clock device is left parked in New York’s Times Square30 June 2007: Jeep loaded with propane canisters driven into the glass doors of Glasgow airport and set ablaze. Driver Kafeel Ahmed dies from severe burn injuries. Passenger Bilal Abdulla, British-born Muslim of Iraqi descent, sentenced to 32 years for conspiracy to commit murder29 June 2007: Two cars containing petrol, gas cylinders and nails fail to explode in London. One device, left outside a nightclub, is defused after an ambulance crew spot smoke. The second is found after a car is towed from a nearby street where it had been parked illegally

The car exploded on the busy shopping street of Drottninggatan at 1700 (1600 GMT) and the second blast occurred 10 to 15 minutes later on a street about 300m away, police said.

The car had contained gas canisters and there were a series of minor explosions, a spokesman told the BBC.

A man found dead near the site of the second explosion has not been named.

Unconfirmed reports in Sweden’s Aftonbladet newspaper said he had been carrying pipe bombs, as well as a backpack full of nails.

Eyewitnesses saw him lying on the ground with blood coming out of his stomach.

Tweeting about the blasts, Foreign Minister Carl Bildt said a terrorist attack that could have been “truly catastrophic” had failed.

In November, Sweden raised its terror alert level from low to elevated because of a “shift in activities” among Swedish-based groups thought to be plotting attacks.

A security official said the threat level had not been raised as a result of Saturday’s attacks.

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Three killed in Bangladesh unrest

BBC map
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The police in Bangladesh have used batons and tear gas to disperse thousands of garment factory workers demanding better pay.

Nearly 20 people were injured in the clashes outside the capital Dhaka, a senior police official said.

The protests came a day after violent demonstrations shut down factories in southern Bangladesh.

The protesters say their wages have not gone up, even though hikes were due last month.

Thousands of workers gathered outside their factory in an industrial area of Dhaka early in the morning in protest against its closure as a result of the disturbances on Saturday.

Soon, the protest turned violent.

Workers blocked one of the city’s main highways and a number of vehicles were smashed.

At least two cars were set on fire. Police used batons and tear gas to disperse the workers.

On Saturday, protests by workers in the southern city of Chittagong forced a South Korean company to shut down its eleven factories there.

Labour unions say many of the factories are not implementing the new salary scale announced by a government wage board earlier this year.

From November, the factories should have been paying a wage of at least $43 (£27) a month.

Around Dhaka, workers in some factories have been protesting for a number of days, demanding increased pay.

More than three million people, mostly women, work in Bangladesh’s garment industry, which supplies many major western stores and is a key sector of the country’s economy.

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Pipe bomb left at PUP man’s home

police tapeThe home of Ken Wilkinson has been the target of a pipe bomb attack
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Damage has been caused to the home of Progressive Unionist Party spokesman, Ken Wilkinson, in a pipe bomb attack in Antrim.

The device, which was left on a window sill, went off at 0330 GMT on Sunday.

Mr Wilkinson, who lives alone, said he was lucky he was not injured.

“The front windows were done, there is damage to the inside of the house, the fascia board and soffit on the outside – they will all have to be replaced,” he said.

The incident happened in the Milltown Road area of Antrim.

Mr Wilkinson added:”We found a piece of the device 25 to 30 feet from the front of the house so you can guess how strong it was.

“I have been outspoken of late against certain incidents in the Antrim area and also on the issue of drugs, if people think this is there way of quietening me down, they have made a big mistake.”

Justice minister David Ford, who is an assembly member for South Antrim, said there had been a number of similar incidents in the town recently and that they “must end”.

“They are achieving nothing except to bring disruption and misery to the streets on Antrim,” he added.

“The local population is extremely worried where the next in this series of pipe bomb attacks is going to happen.”

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Labour ‘to reach out to Lib Dems’

John Denham

John Denham said it was crucial the Labour party was willing to “reach out to progressive people”

Labour will “reach out” to Lib Dem MPs and supporters unhappy with the coalition and its policy on things like tuition fees, Shadow Business Secretary John Denham has said.

Mr Denham told the BBC’s Andrew Marr Show Labour had to show it was not “tribal” under Ed Miliband’s leadership

He said the party had worked very hard to try and head off the tuition fees rise and would continue to work with others who were “progressive”.

He also backed a graduate tax.

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Many hurt as M40 coach overturns

More than 30 passengers were taken to hospital after a coach overturned as it left the M40 in Oxfordshire.

Police said it had turned on its side just before 2300 GMT on Saturday, at the top of the northbound exit of junction seven, near Thame.

The driver and 33 passengers were taken to hospital as a precaution. There are not thought to be any serious injures.

Two passengers received treatment at the scene. Police said no other vehicles were involved in the incident.

Those who were taken to hospital were walking around, a spokeswoman for Thames Valley Police said.

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School pupil premium set at £430

Pupil is served a school dinnerThe pupil premium policy for England was first announced in October
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The poorest pupils in England will get an extra £430 spent on them next year under the government’s pupil premium scheme, it has been revealed.

Schools will receive the money for every pupil whose parents have an annual income of less than £16,000.

Head teachers will be encouraged to spend it on reducing class sizes or more one-to-one tuition.

But critics argue the scheme will be meaningless if cuts are made elsewhere in education to fund it.

The pupil premium has long been a flagship Liberal Democrat policy and it was already known that £2.5bn would be given to schools through the scheme by 2014/15.

However, the cost to the government in 2011/12 – £625m – has been announced for the first time.

Schools will be allowed to choose exactly how the extra money should be used and it is hoped the scheme will also act as a financial incentive to encourage successful schools to take in poorer children.

Deputy Prime Minister Nick Clegg said the move would have more benefit for social mobility than keeping a cap on tuition fees.

“When money is tight, you have to be really clear about what your priorities are,” he said.

“One of mine has always been making sure that the most disadvantaged children in this country get the help they need.

“Despite the recent controversy, all the evidence shows that the best way to help bright kids from poor families get to university is to target additional resources at them when they are younger and so give them a head start in life.

“By targeting money directly at our poorest children, the coalition government is starting on the long and hard road to breaking down one of the most socially segregated education systems in the developed world.”

The government says the amount per child will rise and more pupils will be covered as the cash allocated to the policy increases in future years. Funds will also be weighted to areas of the country where they are most needed.

However, when the policy was first announced in October, Education Secretary Michael Gove admitted the scheme would lead to a cut in funding for some schools.

At the time, Labour said the Lib Dems had been “sold a pup” by the Tories over the policy.

Shadow education secretary Andy Burnham said the Conservatives had promised Mr Clegg that funding for the premium would be additional to the overall schools budget but this was not the case.

Details of the pupil premium will be confirmed on Monday by Mr Gove when he announces the schools settlement.

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Demo police in hospital dispute

Alfie MeadowsAlfie Meadows was knocked unconscious during the protest
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Police have been accused of trying to stop civilians injured during the student protests being treated at the same hospital as officers.

Protester Alfie Meadows, 20, needed brain surgery after allegedly being hit with a police baton.

His mother Susan Matthews said police objected to him being treated at Chelsea and Westminster Hospital.

She told BBC London his ambulance driver was angry about the stance. The police have refused to comment.

They said because the incident was under investigation by the Independent Police Complaints Commission (IPCC) they were unable to discuss it.

An IPCC spokesman said if a complaint was made about the issue it would look into it.

A spokesman for Chelsea and Westminster Hospital confirmed a decision had been taken to treat officers there and civilians in other hospitals.

But he said because so many protesters ended up being injured some were treated at the hospital.

He denied that any civilians were turned away.

Mr Meadows, a philosophy student, suffered bleeding on the brain.

When he arrived at Chelsea and Westminster Hospital there was a “stand-off” between police and medical staff in a corridor over where he was treated, Ms Matthews said.

The student was initially treated at Chelsea and Westminster, but was transferred to Charing Cross Hospital where there is a specialist brain injuries unit.

He is said to be recovering.

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