UK government expects to lose Brexit trigger case, making contingency plans: report

EU Lisbon Treaty near EU flag

LONDON (Reuters) – The British government expects to lose its legal battle to start the Brexit process without going through parliament, and has drafted versions of a bill to put to lawmakers after the ruling, the Guardian newspaper reported on Tuesday.

The Supreme Court is expected to rule in the next two weeks on whether the government can trigger Article 50 of the European Union’s Lisbon Treaty, the first formal step toward leaving the bloc, without first getting parliament’s approval.

Citing unnamed sources, the Guardian reported that ministers had privately conceded they were very likely to lose the case, and had drawn up at least two versions of a bill to be presented to parliament after the ruling. [http://bit.ly/2iiL6oP]

The report also said the government had asked the court for early sight of the ruling before it is made public, to allow for contingency planning.

During the Supreme Court hearing in December, government lawyer James Eadie said that if judges ruled parliament had to give its assent to the triggering of Article 50, the solution would be a “one-line” bill.

The Guardian said ministers were hoping the ruling would allow Prime Minister Theresa May to put forward a short bill or motion, narrowly focused on Article 50, to make it difficult for lawmakers to amend.

Those in favor of a clean break with the European Union are concerned that parliament, where a majority of members were in favor of remaining in the bloc, could seek to water down ministers’ plan in pursuit of a so-called “soft Brexit”.

The government’s opponents in the legal battle argued that triggering Article 50 would nullify the 1972 act of parliament that opened the way for Britain to join the EU, and therefore parliament had to give its assent for its act to be undone.

London’s High Court backed that argument, prompting the government to appeal to the Supreme Court, Britain’s highest judicial body, in December.

(Reporting by Estelle Shirbon; editing by Michael Holden)

Dollar falls against yen on risk reduction; sterling sinks

the dollar bill

By Sam Forgione

NEW YORK (Reuters) – The U.S. dollar slumped against the safe-haven yen on Monday on investors’ reduced appetite for risk, while sterling sank to more than two-month lows on talk that Britain would drastically rework trade ties with the European Union after Brexit.

A fall in U.S. Treasury yields and U.S. stocks drove the dollar down as much as 0.6 percent against the yen to a session low of 116.16 yen JPY=. The dollar remained within recent trading ranges and did not test Friday’s more than three-week low of 115.04 yen.

Analysts said there was no fundamental catalyst for the dollar’s decline against the yen, with traders probably reacting to lower U.S. yields and equities.

“There’s an optical relationship with the fact that stocks are lower,” said Shahab Jalinoos, global head of FX strategy at Credit Suisse in New York.

The dollar was last down 0.4 percent at 116.43 yen. It dipped modestly against the euro and Swiss franc, leading the dollar index .DXY, which measures the greenback against a basket of six major currencies, to stand 0.08 percent lower at 102.150.

The pound slid more than 1 percent against both the dollar GBP=D4 and the euro EURGBP=R after weekend comments from British Prime Minister Theresa May that she was not interested in keeping “bits of membership” of the European Union.

Sterling slid as low as $1.2125, its weakest against the dollar since the end of October. It fell about 1.2 percent against the euro, hitting 86.91 pence per euro, the lowest since mid-November.

“Anything that suggests a hard Brexit is more likely … is very damaging to UK growth prospects,” said Richard Franulovich, a senior currency strategist at Westpac Banking Corp in New York.

Against the dollar, sterling was last down 1 percent at $1.2156, while the euro EUR= was up 0.3 percent at 1.0562. The dollar was down 0.17 percent against the franc at 1.0162 francs CHF=.

On Wall Street, the benchmark S&P 500 stock index .SPX was down 0.13 percent, while benchmark 10-year U.S. Treasury yields US10YT=RR fell nearly four basis points on the day to 2.383 percent.

(Reporting by Sam Forgione; Additional reporting by Marc Jones in London; Editing by Lisa Von Ahn))

Hard Brexit is not inevitable, says British PM May

Britain's Prime Minister

By Elizabeth Piper

LONDON (Reuters) – A clean break with the EU’s single market is not inevitable, British Prime Minister Theresa May said on Monday, seeking to clarify comments that pushed down the pound on the possibility of a hard Brexit from the European Union.

She criticized British media for misinterpreting what she described as long-term position on EU talks but the pound failed to recover from a 10-week low and was down more than 1 percent to the dollar and 1.2 percent against the euro on the day.

May, under pressure to offer more detail on her strategy before launching divorce talks with the European Union, said on Sunday in her first televised interview of the year that Britain would not be able to keep “bits” of its membership.

Some commentators saw that as a sign she was heading for a hard Brexit, which business says would damage the economy by breaking links with the single market of 500 million consumers. May shot back that the media was using terms she did not accept.

“I’m tempted to say that the people who are getting it wrong are those who print things saying I’m talking about a hard Brexit, (that) it is absolutely inevitable there’s a hard Brexit,” she told the Charity Commission, a government department that regulates charities in England and Wales.

“I don’t accept the terms hard and soft Brexit. What we’re doing is (that we are) going to get an ambitious, good, best possible deal for the United Kingdom in terms of … trading with and operating within the single European market.”

May’s frustration was clear. The former interior minister, who was appointed as prime minister shortly after Britain voted to leave the EU at a June referendum, is increasingly concerned that Brexit will define her time in power, sources say.

In her speech on Monday, she said she wanted her government to help to heal the divisions in Britain that were deepened by the EU vote, and ensure that “everyone has the chance to share in the wealth and opportunity on offer in Britain today”.

She announced measures to boost support to those suffering from mental health problems and said she would do more on housing, education and schooling, but despite applause from the audience, two out of four questioners asked about Brexit.

May has repeatedly said she will not reveal her strategy before triggering Article 50 of the EU’s Lisbon Treaty to start some of the most complicated negotiations since World War Two, but her reticence has spurred scrutiny of her every comment.

She has largely stuck to the script that she wants Britain to regain control over immigration, restore its sovereignty and also to get the best possible trading relations with the EU, but any comment that seems to stray is pored over for signs of how May sees Britain’s future relationship with the EU.

Asked whether May had ruled out getting preferential access to the single market in her interview on Sunday, her spokeswoman said she had ruled nothing out or in.

On Monday, May again said she was ambitious before the talks with the EU, which are due to be launched before the end of March.

“But we mustn’t think of this as sort of leaving the EU and trying to keep bits of membership, what bits of membership will we keep,” she said.

“It’s a new relationship, we’ll be outside the EU, we will have a new relationship but I believe that can be a relationship which has a good trading deal at its heart.”

(Additional reporting by William James and Kylie MacLellan; editing by Jeremy Gaunt)

Italy convicts Tunisian over sinking that killed almost 700 migrants

Mohammed Ali Malek is seen at Catania's tribunal,

By Antonio Parrinello

CATANIA, Sicily (Reuters) – A Tunisian man accused of being the captain of a migrant boat that sank killing almost 700 people was found guilty of multiple manslaughter and people-smuggling on Tuesday and sentenced to 18 years in jail.

Only 28 people survived the disaster in April last year, when the small fishing boat capsized off the coast of Libya, with hundreds trapped in the hold.

Mohammed Ali Malek, 28, was one of those rescued and denied being the captain, saying he had paid for passage like everyone else, but a court in the city of Catania dismissed his defense.

The court also sentenced 26-year-old Syrian Mahmud Bikhit to five years in prison on charges of people-smuggling. Survivors said Bikhit had been Malek’s cabin boy. He had denied any wrongdoing.

Both men were also handed fines of nine million euros ($9.5 million). Their lawyers said they would appeal the convictions.

“We think we have some strong arguments and we will try and work on some of the weaker points of our defense,” said Massimo Ferrante, representing Malek.

Outrage over the incident prompted European Union leaders to bolster its own search-and-rescue mission in the Mediterranean days after the boat went down.

In the past three years, roughly half a million boat migrants have arrived on Italian shores and almost 12,000 have died in the Mediterranean trying to reach Europe, according to the International Organization for Migration.

Prosecutors had told the court that Malek mishandled the grossly overloaded fishing boat, which left from Darabli, Libya, carrying men, women and children from Algeria, Somalia, Egypt, Senegal, Zambia, Mali, Bangladesh and Ghana.

They say he caused the vessel to collide with a Portuguese merchant ship that was coming to its aid.

As passengers rushed away from the side of the boat which had struck the ship, it capsized and sank within minutes.

State prosecutor Carmelo Zuccaro said in a statement that the case showed Italy had the right to press smuggling charges over incidents in international waters.

The Italian justice system got involved this time because the survivors were brought to Italy. Italy’s navy raised the boat in June and 675 bodies were recovered.

Earlier this year another migrant boat sank in the Mediterranean killing around 500 people, with the survivors taken to Greece. A Reuters investigation found that no official body, national or multinational, has held anyone to account for the deaths or even opened an inquiry.

(Reporting by Crispian Balmer; Editing by Philip Pullella and Andrew Roche)

EU upsets China with new steel price investigation

A worker verifies a product at a steel factory in Dalian, Liaoning province, China

By Philip Blenkinsop

BRUSSELS (Reuters) – The European Union has launched a new investigation into whether Chinese manufacturers are selling steel into Europe at unfairly low prices, angering China which says Europe’s steel problems are due to the region’s own economic weakness.

The European Commission has determined that a complaint brought by EU steel makers’ association Eurofer regarding certain corrosion resistant steel merits an investigation, the EU’s official journal said on Friday.

The Commission also said it would start another anti-dumping investigation into certain cast iron products from China and India as well as determining whether existing duties on Chinese steel seamless pipes and tubes should continue for another five years.

The EU has already imposed duties on a wide range of steel grades to counter what EU steel producers say is a flood of steel sold at a loss due to Chinese overcapacity and partly the cause of 5,000 British job losses.

A China Commerce Ministry official said Beijing attached a “high degree of attention and concern” to the case and that Europe’s steel problems were due to its own weak economic growth.

Wang Hejun, the head of the trade remedies investigation department, said in a statement on the ministry’s website that Europe should rationally analyze its steel industry’s problems.

“It should not adopt mistaken trade protectionist measures that limit fair market competition,” he said.

The EU investigation begins just days before the 15th anniversary of China’s accession to the World Trade Organization, when the country says new trade defense rules are supposed to kick in.

Until now, the EU has been able to compare Chinese prices with those of another country – in the current case Canadian prices. But, Beijing insists this should no longer be possible from Dec. 11.

If the United States, European Union, and other WTO members begin to take Chinese prices as fair market value, it will be much harder for them to challenge China’s cheap exports.

The European Commission proposed last month a new way of treating China, but its proposals still await approval from the EU’s 28 members and the European Parliament.

Aegis Europe, a group of European industry federations including Eurofer, said there was no legal requirement to change the way the EU treated China on Dec. 11 and that EU’s partners the United States and Japan would not be doing so.

G20 governments recognized in September that steel overcapacity was a serious problem. China, the source of 50 percent of the world’s steel and the largest steel consumer, has said the problem is a global one.

The EU currently has 40 anti-dumping and anti-subsidy measures in place, 18 of which are on products from China. Twenty more investigations related to steel are still ongoing, including three for which provisional duties are in place.

(Reporting By Philip Blenkinsop in Brussels, Yawen Chen and Nicholas Heath in Beijing,; Editing by Greg Mahlich and Jane Merriman)

As asylum-seekers clog Italy’s courts, Europe is no help

Migrants disembark from a vessel of ONG Medecins sans Frontieres (MSF) in the Sicilian harbour of Augusta, Italy, June 24

By Steve Scherer

ROME (Reuters) – Angelo Trovato is in charge of Italy’s asylum-request system, and it shows.

In Trovato’s office near Rome’s Trevi Fountain, bulky columns of paperwork cover every inch of the bespectacled civil servant’s desk. His fixed-line and cell phones take turns ringing.

The 63-year-old manages a national network of committees that weigh who can stay in Italy and who should be sent home. In 2014, there were 10 committees, he says. Today there are 48.

“Everything has changed,” he said.

Since 2014, the number of migrants reaching Italy’s shores has spiked: Half a million came ashore over the last three years compared with 119,000 in the previous three. And Italy’s burden got heavier when a deal with Brussels last year forced it to honor its obligations and process mass arrivals.

Until this year, Rome turned a blind eye to many migrants and let them head north. Now, in line with European Union law, Brussels requires Italy to set up migrant centers called “hotspots.” Here, officials distinguish between those who say they were persecuted or faced serious harm and those who fled poverty, who are supposed to be sent home.

As a result, Italy’s asylum applications have jumped. As of Nov. 11 they were at nearly 104,000 this year, a record. That is a fraction of Germany’s total of nearly 700,000, but more than four times Sweden’s tally of around 25,000 for 2016.

Each applicant ends up in front of one of Trovato’s committees. Requests are processed in about 100 days; rejected applicants can appeal in the civil court system, with their costs usually covered by the state.

But legal appeals can take years. Judges say they are overwhelming Italy’s civil justice system, already among the slowest in Europe, and pulling them away from other cases. The government has said it will streamline the legal process, but it has not yet done so.

As part of the new policy, the EU promised to relocate 40,000 asylum-seekers to other countries over two years. But other European countries have taken in just 1,758 of them. Several states have refused to take any.

Prime Minister Matteo Renzi has demanded help, threatening to withhold Italian contributions to the EU’s budget if fellow states don’t show more solidarity. So far little help has come.

Italy has estimated that it will spend about 3.9 billion euros ($4.3 billion) next year on managing immigration, almost three times as much as in 2013. The annual bill could rise to 4.3 billion euros if arrivals increase – equivalent to a quarter of Italy’s annual spending on defense.

“We’re angry,” said Mario Morcone, the Interior Ministry official in charge of the hotspots, in October. He took a deep drag on a cigarette as images of some of the 5,000 migrants Italy had rescued from the Mediterranean that weekend rolled across the flat-screen TV in his office.

“What bothers me most is the obsession with the hotspots,” says Morcone, “as if they are a solution to the EU’s failure to come up with a real immigration policy.”

A QUESTION OF CREDIBILITY

As part of a strategy agreed in 2015, northern countries have tried to shut their borders, and now most migrants are fingerprinted at the hotspots. The records are stored in a common database. Once fingerprinted in Italy, a migrant who applies for protection in another EU country can be sent back to Italy.

Trovato’s committees are rejecting more bids for asylum as arrivals include more West Africans, and fewer Syrians escaping civil war. The share of applicants granted protection has dropped to about 39 percent from more than 60 percent two years ago.

But more rejections mean more appeals.

The story of a 21-year-old Gambian shows how messy the process can be.

Yankouba Gassama arrived in Italy in July 2014 and requested asylum a few months later. The committee that interviewed Gassama in Rome in May 2015 spoke to him – through a translator – for an hour and a half and decided his story was implausible, said Matteo Virardi, Gassama’s lawyer. It rejected him.

“Winning international protection mostly depends on whether the interviewer believes the story or not,” says Barbara Boni, a lawyer who helps run an immigration services office in Rome. “Many have no documents proving they’ve been persecuted and are from countries where there is no war or instability.”

Yankouba Gassama, 21, from Gambia, poses holding a book of Italian grammar inside his room in a shelter in Rome, Italy,

Yankouba Gassama, 21, from Gambia, poses holding a book of Italian grammar inside his room in a shelter Rome,me, Italy, November 23, 2016. REUTERS/Max Rossi

Gassama appealed the ruling. His hearing is due next April. Until then, he lives with more than 100 male asylum-seekers in a shelter, an apartment building on the outskirts of Rome. The state pays 35 euros ($37) per day to house and feed each of them.

A transcript of his interview shows that Gassama told the committee Gambian police had arrested him for being homosexual. The interviewer appears to not know that in Gambia homosexuality is a crime which carries a 14-year penalty, or life in prison if “serial offenders” have the AIDS virus.

“Homosexuality is reason for arrest in Gambia?” the interviewer asks.

Such ignorance is not unusual, says Boni. Three of the four members of each committee may have little knowledge of asylum issues, she said, though most complete training offered by Trovato’s office.

Trovato said by and large the committee system works.

Gassama says he deserves a second chance because he was anxious during his interview and forgot to tell the board he was tortured by police; and because he has since retrieved a police document that says he was arrested for homosexuality. He says he is not gay and the accusation stems from a misunderstanding.

JUDGES REDEPLOYED

Like Gassama, each rejected applicant has a right to a trial and two appeals. That can take almost eight years, according to a 2013 study by the Organisation for Economic Cooperation and Development. Some take even longer. The average across the rich world is two years.

“I have many, many cases to complete that were started before 2000,” says Concetta Potito, 48, a civil judge in the southern city of Bari and a member of the executive council of the National Association of Magistrates (ANM).

“The appeals by asylum-seekers are having a devastating effect on the court system, because there simply aren’t enough judges,” she said.

In the first four months of this year, Bari received 417 appeals from migrants who were refused international protection. Nationwide, Trovato knows of 34,000 appeals lodged since 2014, though he says the number is probably much higher.

Judges around Italy are being redeployed from other cases such as divorce, separation and property disputes. The ANM wants the government to hire more people. Bari has brought in a judge from another city to help out.

Justice Minister Andrea Orlando said in August the government would propose a reform to parliament to streamline the process, but it has not happened. The bill was sent to the prime minister’s office, a ministry spokesman said, but got held up by plans for a referendum in early December. “The ministry is aware of the problem and wants the bill sent to parliament as soon as possible,” the spokesman said.

Meanwhile, Italy has capacity to house up to 200,000 migrants. It has 25,000 spaces left, the Interior Ministry says. October alone saw 27,400 arrivals.

Gassama is waiting for his day in court, where a Justice Ministry source said about half the committees’ rejections are overturned. In his shelter, there have been 76 appeals in the past two years, the center’s director told Reuters. So far only one has been rejected.

The Gambian has studied Italian and, with help from the immigration services, taken a test that says he was capable of completing Italian middle-school. Now he works part time for a removals company, loading and unloading trucks with furniture and boxes.

“I’m hopeful,” he says. “I’d like to continue my education.”

(Reporting by Steve Scherer; Editing by Sara Ledwith and Simon Robinson)

Erdogan warns Europe that Turkey could open migrant gates

Turkish President Tayyip Erdogan speaks during a signing ceremony with Belarussian President Alexander Lukashenko in Minsk, Belarus,

By Tulay Karadeniz and Nick Tattersall

ANKARA/ISTANBUL (Reuters) – Turkish President Tayyip Erdogan threatened on Friday to unleash a new wave of migrants on Europe after lawmakers there voted for a temporary halt to Turkey’s EU membership negotiations, but behind the fighting talk, neither side wants a collapse in ties.

Europe’s deteriorating relations with Turkey, a buffer against the conflicts in Syria and Iraq, are endangering a deal which has helped to significantly reduce a migrant influx which saw more than 1.3 million people arrive in Europe last year.

“You clamored when 50,000 refugees came to Kapikule, and started wondering what would happen if the border gates were opened,” Erdogan said in a speech in Istanbul, referring to a Bulgarian border checkpoint where migrants massed last year.

“If you go any further, these border gates will be opened. Neither I nor my people will be affected by these empty threats,” he told a women’s conference, dismissing Thursday’s vote in the European Parliament in Strasbourg.

“Don’t forget, the West needs Turkey.”

The agreement struck in March with Ankara, under which it helps control migration in return for the promise of accelerated EU membership talks and aid, has reduced the influx via Turkey to a trickle. But its neighbors are still struggling to cope.

Clashes broke out at a migrant camp on the Greek island of Lesbos after a fire killed a woman and a 6-year old child late on Thursday, while Bulgaria said it would extradite hundreds of asylum seekers to their native Afghanistan next month after they clashed with riot police.

The vote by the European Parliament in favor of freezing Turkey’s EU accession talks was non-binding and Germany, France and most other EU states back continued engagement, despite their concerns about Turkey’s human rights record.

European leaders fear putting at risk Erdogan’s cooperation on migration at a time when far-right and anti-immigrant parties have seen their popularity rise, particularly with elections next year in France, Germany and Holland.

Sensing Europe’s weakness, Erdogan has repeatedly threatened in recent days that Turkey could “cut its own umbilical cord” and sever ties with the EU, playing migration as his trump card.

But Turkey also needs Europe. The EU is Turkey’s largest trading partner and its 11-year membership negotiations, though long stalled, served in their early years as an important anchor for pro-market reforms and investor confidence.

“Cutting off membership talks would harm both sides. We are aware of this,” said Yasin Aktay, a spokesman for the ruling AK Party, which was founded by Erdogan.

“We support the continuing of relations, we know this will benefit us and them. But if there is a negative step from the other side, we will not be held responsible for the consequences,” he said.

POPULIST RHETORIC

Erdogan is riding a wave of nationalist sentiment after a failed military coup in July, and his emotional criticism of Europe plays well to a domestic audience angered by what it saw as lackluster Western support for Turkey after the attempt.

The European Parliament voted for freezing talks because of what it saw as Turkey’s “disproportionate” reaction to the coup. More than 125,000 people accused of links to the plotters, from soldiers and judges to journalists and doctors, have been dismissed or detained over the past four months.

“There are millions of migrant babies across the world … but no step is being taken. What step is being taken? Debating whether or not Turkey should be in the EU,” Erdogan said.

“We are the ones who feed 3 million refugees. You have not even kept your promises.”

Turkey is home to the world’s largest refugee population, housing some 2.7 million Syrians and 300,000 Iraqis. Erdogan has repeatedly said that promised European aid has been too slow to arrive, a charge rejected by Brussels.

He has said Turkey could hold a referendum on whether or not to continue its EU membership bid, and even floated the idea of becoming a member of the Shanghai Cooperation Organisation, a security bloc dominated by China and Russia.

“This is extremely populist rhetoric,” said Sinan Ulgen, a former Turkish diplomat and analyst at Carnegie Europe.

The Shanghai grouping was formed with security, not trade, at its core and can be no substitute for the EU, he said.

“There is no diplomatic preparation to form an alternative relationship with the EU other than full membership at the moment,” he said, adding that there was a high chance of a diplomatic crisis over the migration deal by year-end.

“It is difficult for the migration agreement to continue under these circumstances,” he said.

KEEP TALKING

Under the March deal, Turkey agreed to take back illegal migrants leaving its shores for Greece in return, among other things, for visa-free travel for Turks in Europe. Such visa liberalization looks unlikely to be granted any time soon.

Several EU members nonetheless made clear on Friday they were against freezing Turkey’s negotiations to join the bloc.

“It is important that we keep talking,” German Foreign Ministry spokeswoman Sawsan Chebli told a news conference.

Croatian Foreign Minister Davor Ivo Stier said it was not in the interests of the EU, Croatia, or Slovenia, where he was on an official visit, to suspend talks with Turkey and that “we need a balanced standpoint toward Ankara”.

Before the Balkan migration route was closed in March hundreds of thousands of migrants passed through Croatia and Slovenia toward wealthier western Europe. Both want to keep their borders closed for illegal migrants.

But France criticized Erdogan for threatening Europe.

“We believe one-upmanship and controversies are counterproductive,” French foreign affairs ministry spokesman Alexandre Giorgini said at a news briefing.

(Additional reporting by Ercan Gurses and Tuvan Gumrukcu in Ankara, Daren Butler in Istanbul, Angeliki Koutantou and Renee Maltezou in Athens, Dimitar Kyosemarliev in Harmanli, Paul Carrel in Berlin, Marja Novak in Paris, Writing by Nick Tattersall, Editing by Angus MacSwan)

From soldiers to midwives, Turkey dismisses 15,000 more

Turkish air force cadets march during a graduation ceremony for 197 cadets at the Air Force war academy in Istanbul, Turkey

By Tuvan Gumrukcu and Nick Tattersall

ANKARA/ISTANBUL (Reuters) – Turkey dismissed 15,000 more state employees on Tuesday, from soldiers and police officers to tax inspectors and midwives, and shut 375 institutions and several news outlets, deepening purges carried out since a failed coup.

The dismissals, announced in two decrees, bring to more than 125,000 the number of people sacked or suspended in the military, civil service, judiciary and elsewhere since July’s coup attempt. About 36,000 have been jailed pending trial in the crackdown condemned by Western allies and rights groups.

President Tayyip Erdogan said the measures had significantly weakened the network of U.S.-based cleric Fethullah Gulen, whose followers are blamed by Ankara for infiltrating state institutions over several decades and carrying out the attempted putsch.

But he made clear the purges were not yet over.

“We know they have not been completely cleansed. They are still present in our military, in our police force, in our judiciary,” he told a conference on policing in his palace.

“We will not leave our country to them, we will not let them consume this nation. We will do whatever is necessary,” he said.

The coup and its aftermath have shaken confidence in the stability of Turkey, a NATO member key to the fight against Islamic State and a bulwark for Europe against the conflicts raging in neighbouring Syria and Iraq.

The crackdown has covered a vast range of professions – often where links to Gulen’s network are unclear – including doctors, nurses and midwives. Dismissals are announced in the Official Gazette with no reasons given beyond “membership of, or links to, terrorist organisations or groups deemed to be acting against national security interests”.

Some of the accused have been targeted for having accounts with a bank once controlled by Gulen’s followers, being members of an opposition union, or using a smartphone messaging app seen by the authorities as a Gulenist communications tool, according to Turkish media reports.

European allies have criticised the breadth of the purges, and EU parliament lawmakers called on Tuesday for a freezing of Turkey’s EU membership talks. A senior U.N. official has described the measures as “draconian” and “unjustified”.

Erdogan has rejected such criticism, saying Turkey is determined to root out its enemies at home and abroad, and could reintroduce the death penalty. He has accused Western nations of siding with coup plotters and of harbouring terrorists.

‘SOLD THEIR SOULS’

Ankara blames Gulen and his network, which it refers to as the “Gulenist Terror Organisation” (FETO), for the events of July 15, in which more than 240 people were killed as rogue soldiers commandeered tanks, fighter jets and helicopters, bombing parliament and other key buildings.

Gulen, who has lived in self-imposed exile in Pennsylvania in the United States since 1999, denies involvement.

“There is no place in this … land drenched with the blood of martyrs for those who sold their souls to Pennsylvania, the separatist terrorist organisation, or any other illegal organisation,” Erdogan said.

He frequently uses “Pennsylvania” as shorthand for the cleric’s network. The “separatist organisation” is a reference to the Kurdish PKK group, which has waged a three-decade insurgency for Kurdish autonomy in Turkey’s southeast.

Nearly 2,000 members of the armed forces, 7,600 police officers, 400 members of the gendarmerie, and more than 5,000 public workers, including nurses, doctors and engineers, were dismissed in Tuesday’s decrees for suspected links to terrorist organisations.

The Official Gazette made clear they would not be able to claim any severance or seek any other job in public service. The decrees were issued under the emergency rule imposed in the wake of the failed coup, which allows Erdogan and the government to bypass parliament.

Erdogan’s opponents say the purges go well beyond a crackdown on suspected Gulenists and are being used to crush dissent. Those accused are often unable to find other work and ostracised in their community, with Turkish media reports saying some have committed suicide before their trials can begin.

Pro-Kurdish politicians have been detained in a parallel crackdown, accused of links to the PKK, including the leaders of parliament’s second-largest opposition grouping the Peoples’ Democratic Party (HDP).

EUROPEAN OUTRAGE

On top of Tuesday’s decrees, authorities issued arrest warrants for 60 people, including air force pilots in the central city of Konya, over suspected Gulenist links. More than 300 pilots have already been detained or dismissed.

In another operation around Istanbul, 19 prison staff including the warden of Turkey’s largest jail Silivri were held on suspicion of using smartphone messaging app ByLock, which authorities say is used by Gulen’s network.

A trial also began on Tuesday of Gulen, in absentia, and 72 other people accused of trying to overthrow Turkey’s government. The case pre-dates the coup attempt, but is likely to be expanded to include charges related to the events of July 15.

Arrest warrants were also issued for 22 executives from telecoms firm Turk Telekom, the Hurriyet newspaper said. It said 12 of them had been detained in an operation spanning four provinces. Turk Telekom shares fell 0.7 percent, underperforming a 0.5 percent rise on the Istanbul stock index.

Tuesday’s decrees also announced the closure of 375 institutions or associations, including minority rights groups, lawyers’ associations and women’s groups. The decrees also shut 18 charities and nine media outlets. Turkey has closed more than 130 media outlets since July.

Guy Verhofstadt, head of the Liberals in the European Parliament, said the assembly was calling for EU officials to suspend negotiations with Turkey over membership of the bloc.

“Dozens of media outlets closed, members of parliament penalised or put in jail, there is a debate on the death penalty, there is more and more political control of the judiciary … Our relationship with Turkey becomes more and more of a liability,” he told a news conference on Tuesday.

(Additional reporting by Humeyra Pamuk in Istanbul, Jan Strupczewski in Brussels; Editing by Nick Tattersall and Pravin Char)

European lawmakers call for end to Turkey EU membership

A woman adjusts the Turkish flag next to the European Union flag at the EU Commission headquarters in Brussels

By Alissa de Carbonnel

STRASBOURG (Reuters) – The leaders of the European Parliament’s two largest groups called on Tuesday for the European Union to halt membership talks with Turkey because of its post-coup purges.

“Our message to Turkey is very clear: accession negotiations should be frozen immediately,” said Manfred Weber, the head of the largest faction in the European Parliament, the center-right European People’s Party.

He was echoed by Gianni Pitella, the leader of the socialist group, the parliament’s second biggest: “We want to freeze the accession talks.”

More than 110,000 people in Turkey – including soldiers, academics, judges, journalists and Kurdish leaders – have been suspended from their positions or dismissed over their alleged backing for the plotters of a failed military coup in July.

Some 36,000 have been arrested and media outlets have been shut.

“Turkey under Mr Erdogan is more and more drifting towards an authoritarian regime,” Pitella said, referring to Turkish President Tayyip Erdogan.

“Our political message towards Turkey is that human rights, civil rights, democracy are non negotiable if you want to be part of the EU.

Erdogan, exasperated with the EU’s intensified criticism of his rights record, has said the bloc would have to “live with the consequences” should it stop the talks and that Ankara could instead join an security alliance run by Russia and China.

The post-coup crackdown has taken the EU aback, annulling a period of warmer tone between Turkey and the bloc, which had promised as recently as last March to speed up Ankara’s accession talks in exchange for its help in keeping migrants away from European shores.

This cooperation, critical for the EU, is still going on but some in the EU worry it could eventually fall victim to the spiraling recriminations.

Erdogan, who blames the EU for not showing enough understanding for the gravity of the situation in Turkey, said he could put the EU talks to a national referendum next year.

Turkey still hopes to win visa-free travel to the EU but earlier promises of granting the privilege to Ankara by the end of the year now seem distant.

Among EU countries, Austria and Luxembourg have led calls to stop Turkey’s membership talks, which have only made very limited progress over 11 years in any case.

But Germany, France and most of the other EU states for now back continued engagement and fear putting at risk Turkey’s collaboration on migration.

All stress, however, that the talks would come to an end should Turkey reinstate the death penalty.

(Additional reporting by Tom Koerkemeier, writing by Gabriela Baczynska Editing by Jeremy Gaunt.)

Turkey could put EU talks to a referendum next year

Turkish President Tayyip Erdogan makes a speech during his meeting with mukhtars at the Presidential Palace in Ankara, Turkey, October 26, 2016.

ANKARA (Reuters) – Turkey could hold a referendum on whether to continue membership talks with the European Union next year, President Tayyip Erdogan said on Monday, and repeated his warning to Brussels that it needed to “make up its mind” on Turkish accession.

European Union foreign ministers were meeting on Monday to consider shelving membership talks with Turkey over what they see as its lurch away from democracy after a failed coup in July, although there is no consensus for such a move.

In a speech in Ankara broadcast live on television, Erdogan urged Turks to be patient until the end of the year and then said a vote could be held on EU membership.

“Let’s wait until the end of the year and then go to the people. Let’s go to the people since they will make the final call. Even Britain went to the people. Britain said ‘let’s exit’, and they left,” Erdogan said.

He lambasted European Parliament President Martin Schulz, who said this month the detention of opposition politicians and the extent of post-coup purges “call into question the basis for the sustainable relationship between the EU and Turkey”.

“What are you? Since when do you have the authority to decide for Turkey? How can you, who have not taken Turkey into the EU for 53 years, find the authority to make such a decision?” Erdogan said.

“This people makes its own decisions, cuts its own umbilical cord,” he said.

Erdogan also said he would approve reinstating the death penalty – a move that would likely end any hope of Turkish membership in the EU – if parliament passed a law on it, and said that too could be part of a referendum.

Turkey is expected to hold a national vote on constitutional changes next spring, including boosting the powers of Erdogan’s office to create a Turkish version of the presidential system in the United States or France.

(Reporting by Ece Toksabay and Tuvan Gumrukcu; Writing by Nick Tattersall; Editing by Humeyra Pamuk and David Dolan)