Tag Archives: EU

Dutch vote in test of anti-immigrant sentiment in Europe

Dutch far-right politician Geert Wilders of the PVV party surrounded by security as he votes in the general election in The Hague, Netherlands, March 15, 2017. REUTERS/Dylan Martinez

By Stephanie van den Berg and Toby Sterling

THE HAGUE (Reuters) – The Dutch tested their own tolerance for immigration and Islam on Wednesday in an election magnified by a furious row with Turkey, the first of three polls in the European Union this year where nationalist parties are seeking breakthroughs.

The center-right VVD party of Prime Minister Mark Rutte, 50, is vying with the PVV (Party for Freedom) of anti-Islam and anti-EU firebrand Geert Wilders, 53, to form the biggest party in parliament.

As many as 13 million voters began casting ballots at polling stations across the country that will close at 2000 GMT. A charged campaign, plus clear skies and sunshine meant high turnout was expected. National broadcaster NOS said that by 0930 GMT in the morning, turnout was at 15 percent, 2 percent ahead of the previous parliamentary election in 2012.

With as many as four out of 10 voters undecided a day before voting and a tight margin of just 4 percent between leading candidates, the outcome was unpredictable.

Wilders, who has vowed to “de-Islamicise” the Netherlands, has little chance of forming a government given that other leading parties have ruled out working with him. But a first place PVV finish would still send shockwaves across Europe.

The vote is the first gauge this year of anti-establishment sentiment in the European Union and the bloc’s chances of survival after the 2016 surprise victory of “America First” presidential candidate Donald Trump in the United States and Britain’s vote to exit the EU.

“Whatever the outcome of the election today the genie will not go back into the bottle and this patriotic revolution, whether today or tomorrow, will take place,” Wilders said after voting at a school in The Hague.

Wilders won over Wendy de Graaf, who dropped her children off at the same school. “I hope he can make a change to make the Netherlands better.. I don’t agree with everything he says… but I feel that immigration is a problem,” she said.

France chooses its next president in May, with far-right Marine Le Pen set to make the second-round run-off, while in September right-wing euroskeptic party Alternative for Germany, which has attacked Chancellor Angela Merkel’s open-door refugee policy, will probably win its first lower house seats.

Rutte, who has called the Dutch vote a quarter-final before a French semi-final and German final said a Wilders victory would be felt well beyond the Netherlands.

“I think the rest of the world will then see after Brexit, after the American elections again the wrong sort of populism has won the day,” he said.

Late opinion polls indicated a three percentage point lead for his party over Wilders’, with a boost from a rupture of diplomatic relations with Ankara after the Dutch banned Turkish ministers from addressing rallies of overseas Turks.

Turkish President Tayyip Erdogan accused the Dutch of behaving like Nazis, and Rutte’s government expelled a Turkish minister who had traveled to the country to address Erdogan supporters at an impromtu rally without seeking permission.

“I think Rutte did well this weekend with the Turkey row,” said Dave Cho, a 42-year-old supply manager and long-time VVD supporter.

On Wednesday morning, two major publicly subsidized voter information websites were offline, targeted by a DDoS cyber attack.

It was not clear whether Wednesday’s attack was related to the row with Turkey, which also led to the temporary defacement of numerous small websites in the Netherlands.

Separately on Wednesday, several large Twitter accounts including that of the European Parliament, Reuters Japan, Die Welt, Forbes, Amnesty International and Duke University were hijacked temporarily, apparently by Turkish activists.

NO CLEAR WINNER, WEEKS OF BARGAINING

Unlike the U.S. or French presidential elections, there will be no outright Dutch winner under its system of proportional representation. Up to 15 parties could win a seat in parliament and none are set to reach even 20 percent of the vote.

Experts predict a coalition-building process that will take many months once the final tally is known.

Rutte’s last government was a two-party coalition with the Labour Party, but with no party polling above 17 percent, at least four will be needed to secure a majority in parliament. It would be the first such multi-party alliance since three in the 1970s. Two of those fell apart within 12 months.

In a final debate on Tuesday night, Wilders clashed with Lodewijk Asscher, whose Labour party stands to lose two-thirds of its seats in its worst defeat ever on current polling.

Asscher defended the rights of law-abiding Muslims to not be treated as second-class citizens or insulted, saying “the Netherlands belongs to all of us, and everyone who does his best.” Wilders shot back: “The Netherlands is not for everyone. The Netherlands is for the Dutch.”

Front-runner Rutte, who is hoping Dutch economic recovery will help him carry the election, has been insistent on one thing – that he will neither accept the PVV as a coalition partner nor rely on Wilders to support a minority government, as he did in 2010-2012.

“Not, never, not,” Rutte told Wilders.

(Additional reporting by Phil Blenkinsop and Anthony Deutsch; Editing by Jeremy Gaunt)

EU headscarf ban ruling sparks faith group backlash

Women enter a store selling hijabs in the Brussels district of Molenbeek, Belgium, August 14, 2016. REUTERS/Francois Lenoir

By Alastair Macdonald

BRUSSELS (Reuters) – Companies may bar staff from wearing Islamic headscarves and other visible religious symbols under certain conditions, the European Union’s top court ruled on Tuesday, setting off a storm of complaint from rights groups and religious leaders.

In its first ruling on a hot political issue across Europe, the Court of Justice (ECJ) found a Belgian firm which had a rule barring employees who dealt with customers from wearing visible religious and political symbols may not have discriminated against a receptionist dismissed for wearing a headscarf.

The judgment on that and a French case came on the eve of a Dutch election in which Muslim immigration is a key issue and weeks before France votes for a president in a similarly charged campaign. French conservative candidate Francois Fillon hailed the ruling as “an immense relief” that would contribute to “social peace”.

But a campaign group backing the women said the ruling could shut many Muslim women out of the workforce. And European rabbis said the Court had added to rising incidences of hate crime to send a message that “faith communities are no longer welcome”.

The judges in Luxembourg did find that the dismissals of the two women may, depending on the view of national courts, have breached EU laws against religious discrimination. They found in particular that the case of the French software engineer, fired after a customer complaint, may well have been discriminatory.

Reactions, however, focused on the conclusion that services firm G4S in Belgium was entitled to dismiss receptionist Samira Achbita in 2006 if, in pursuit of legitimate business interests, it fairly applied a broad dress code for all customer-facing staff to project an image of political and religious neutrality.

“BACKDOOR TO PREJUDICE”

The Open Society Justice Initiative, a group backed by the philanthropist George Soros, said the ruling “weakens the guarantee of equality” offered by EU non-discrimination laws.

“In many member states, national laws will still recognize that banning religious headscarves at work is discrimination,” policy office Maryam Hmadoun said.

“But in places where national law is weak, this ruling will exclude many Muslim women from the workplace.”

Amnesty International welcomed the ruling on the French case that “employers are not at liberty to pander to the prejudices of their clients”. But, it said, bans on religious symbols to show neutrality opened “a backdoor to precisely such prejudice”.

The president of the Conference of European Rabbis, Chief Rabbi Pinchas Goldschmidt, complained: “This decision sends a signal to all religious groups in Europe”. National court cases across Europe have included questions on the wearing of Christian crosses, Sikh turbans and Jewish skullcaps.

In the Belgian case, the ECJ said: “An internal rule of an undertaking which prohibits the visible wearing of any political, philosophical or religious sign does not constitute direct discrimination.”

It was for Belgian judges to determine whether she may have been a victim of indirect discrimination if the rule put people of a particular faith at a disadvantage. But the rule could still be justified if it was “genuinely pursued in a consistent and systematic manner” to project an “image of neutrality”.

However, in the case of Asma Bougnaoui, dismissed by French software company Micropole, it said it was up to French courts to determine whether there was such a rule. If her dismissal was based only on meeting the particular customer’s preference, it saw “only very limited circumstances” in which a religious symbol could be objectively taken as reason for her not to work.

(Additional reporting by Waverly Colville in Brussels and Sudip Kar-Gupta in Paris; Editing by Catherine Evans)

Turkey says EU exercising democracy selectively, wrong to stand by Netherlands

Demonstrators gather to welcome the Turkish Family Minister Fatma Betul Sayan Kaya, who decided to travel to Rotterdam by land after Turkish Foreign Minister Mevlut Cavusoglu's flight was barred from landing by the Dutch government, in Rotterdam, Netherlands March 11, 2017. REUTERS/Yves Herman

ANKARA (Reuters) – Turkey’s foreign ministry on Tuesday said the European Union was exercising democratic values selectively and that it should not be standing by the Netherlands, which it accused of violating human rights and European values.

Ankara has suspended high-level diplomatic relations after Dutch authorities prevented its ministers from speaking at rallies of expatriate Turks, worsening a row between the NATO allies.

In a joint statement on Monday, EU’s foreign policy chief Federica Mogherini and enlargement commissioner Johannes Hahn called on Turkey to refrain from “excessive statements” to avoid further escalating the dispute.

“EU counterparts are exercising democratic values and basic rights and freedoms selectively,” the foreign ministry said in a statement. “It is very grave for the EU to hide behind member country solidarity and stand by the Netherlands, which has clearly violated human rights and European values,” it said.

Mogherini and Hahn’s statement included “inaccurate assessments”, the foreign ministry said.

“It should be understood that the EU’s statement… actually helps the cause of extremes such as xenophobia and anti-Turkish sentiment,” it said.

President Tayyip Erdogan, who is seeking Turkish voters’ support in an April 16 referendum on boosting his powers as head of state, had accused the Dutch government of acting like “Nazi remnants” for barring his ministers.

The sanctions include the banning of the Dutch ambassador and diplomatic flights from the Netherlands. They do not appear to include economic measures or travel restrictions for ordinary citizens.

Dutch Prime Minister Mark Rutte on Tuesday said that the sanctions were “not too bad” but were inappropriate as the Dutch have more to be angry about.

(Reporting by Tulay Karadeniz and Humeyra Pamuk; Editing by Daren Butler and David Dolan)

Turkish tensions with Europe risk spilling into Switzerland

European Union (L) and Turkish flags fly outside a hotel in Istanbul, Turkey May 4, 2016. REUTERS/Murad Sezer/File Photo

By Michael Shields

ZURICH (Reuters) – Neutral Switzerland risks getting swept up in Turkey’s political row with European countries as Swiss authorities weigh how to handle Turks’ requests for asylum and a call to ban a rally on Sunday by Turkey’s foreign minister.

The government was keeping a low profile on Thursday, saying only that it was reviewing a request by financial capital Zurich to block a planned weekend appearance by Foreign Minister Mevlut Cavusoglu for security reasons.

The Hilton hotel booked for the rally canceled the event, saying organizers could not ensure the safety of guests and visitors.

It comes amid a series of speaking engagements to galvanize support among the Turkish community for President Tayyip Erdogan’s bid to increase his powers in a referendum on April 16.

The foreign ministry declined to comment on media reports that several Turks with diplomatic passports, including the second-ranking envoy in Bern, had sought asylum after President Tayyip Erdogan’s crackdown in the wake of a failed coup last year.

The State Secretariat for Migration, which handles asylum requests, said it does not comment on individual requests for refugee status. It referred instead to a government response this week to a parliamentary query on the matter.

That note said 408 Turkish citizens had sought asylum since the July coup attempt, including some holders of diplomatic passports. It said it could not comment further on the “very few individual cases” among diplomats for fear it could give away their identities.

Turkish embassy officials in Bern were not immediately available by phone and did not respond to an email seeking comment.

During a visit to neighboring Germany on Wednesday, Cavusoglu accused Berlin of hostility towards his country and Islam as acrimony between the NATO allies showed no sign of abating.

On Thursday, Chancellor Angela Merkel told Turkey to stop comparing the German government to the Nazis over the cancellation of Turkish ministers’ rallies in Germany, only for Cavusoglu to repeat the comparison.

Ankara is furious over the cancellations. Germany has said the rallies can go ahead if the organizers respect local laws, but has canceled several rallies, citing security concerns.

In Austria, the interior minister said this week he wanted to change legislation to permit a ban on foreign officials making speeches in Austria if human rights or public order were threatened, a move aimed at Turkish politicians.

Swiss government statistics show around 68,000 Turkish citizens live in Switzerland, a nation of 8.3 million whose population is a quarter foreign. The Turkish embassy’s website refers to around 130,000 Turkish citizens.

(Additional reporting by Brenna Hughes Neghaiwi; Editing by Hugh Lawson)

EU tries to contain East-West schism as Brexit bites

European and national flags fly outside the European Parliament while European Commission President Jean-Claude Juncker presents a white paper on options for shoring up unity once Britain launches its withdrawal process, in Brussels, Belgium, March 1, 2017. REUTERS/Yves Herman

By Alastair Macdonald

BRUSSELS (Reuters) – As Britain hands the European Union its formal notice to quit this month, Brussels is resigned to losing part of the EU’s western flank but is increasingly stressed that upset in the east is pulling the survivors further apart.

Poland, the biggest of the ex-communist eastern states to join after the Cold War, has picked a fight over the fairly minor matter of who chairs EU summits. Symptomatic of a mounting east-west friction, the spat will overshadow a meeting this week that was meant to forge post-Brexit unity.

Brexit has not created that friction but made it worse, as leaders struggle to quell popular disaffection with the EU that is by no means confined to Britain. Westerners are talking up faster integration, even if that means leaving nationalistic easterners behind in a “multispeed Europe”.

When Chancellor Angela Merkel, raised in East Germany and a key defender of eastern allies, joined her French, Italian and Spanish peers at Versailles on Monday to ram home a message that unless some states press ahead the EU will stall and break, Polish ruling party leader Jaroslaw Kaczynski hit right back.

“The decisions made in … Versailles … aim to reinforce the process of European Union disintegration which has started with Brexit,” he said on Tuesday.

Kaczynski will not be in Brussels for Thursday’s summit but his prime minister, Beata Szydlo, will give voice to his refusal to endorse the reappointment of her centrist predecessor Donald Tusk as European Council president. Tusk and the right-wing Kaczynski are old and bitter rivals in Polish politics.

BREXIT HOLE

Brexit deprives the easterners, unwilling to see diktat from Brussels or Berlin replace rule from Moscow, of their strongest ally against EU centralization and euro zone domination.

It also leaves a big hole in the EU budget for paying the subsidies that fund a large slice of public spending in the east — cash that has kept voters there sold on EU membership and which Brussels fears London may now use to court eastern favor and divide the EU to extract better Brexit terms.

On Friday, leaders will work on plans for a March 25 summit in Rome where they hope to use 60th anniversary celebrations of the bloc’s founding treaty to pledge a new unity after Brexit.

Yet the road to Rome has been marked with division over the push by founding powers and the EU executive led by Jean-Claude Juncker for more differentiated EU integration.

“The key message of Rome must be the unity of the 27,” said a senior EU official involved in looking for compromises to ease the friction. “The political context of Brexit should not be a multispeed Europe. That would be completely out of tune.”

Neither side is pushing for a split and all insist they must pull together against challenges from Russia and uncertainty about U.S. support under President Donald Trump. For that reason, officials say, the words to come out of the Brussels and Rome summits will stress unity and soft-pedal the differences.

FRICTION GROWING

But east-west friction has heated up in the past two years.

There are rows over eastern reluctance to take in Syrian refugees and Kaczynski’s new policies that Brussels calls undemocratic. New border controls to curb migrants inside the passport-free Schengen zone have fueled eastern fears of losing travel freedoms cherished since the fall of the Berlin Wall.

And there is a brewing crisis over what eastern leaders see as hypocritical protectionism inside the EU single market by western governments trying to impose their own national minimum wages on enterprising — and cheap — eastern “posted workers”, who offer services like trucking and construction in the west.

Last week Poland and its allies demanded Brussels crack down on the “double standards” of firms that offer lower quality versions of western food brands in eastern markets.

It is not just outspoken Poland and Hungary who fret at fragmentation. The worry runs from the Baltic to the Black Sea. Eastern diplomats fear a new gap could open up along the old Iron Curtain that may never close, especially if the rich states play up to voters and refuse to fill the EU’s Brexit budget gap.

Prime Minister Robert Fico told Slovakia’s parliament on Wednesday he was skeptical of the Union’s future once Britain leaves in 2019.

“I’m afraid the EU will be divided by the money issue after 2020…In the spirit of Trump’s ‘America first’, we can expect to hear ‘Germany first’, ‘France first’ etc.”

Noting that current EU arrangements already allow for states to deepen their cooperation — the euro is just one of many examples — a senior diplomat from an eastern member state said he was suspicious of assurances from Merkel and others that any new moves would always be open to any member state to join.

“The only new thing they can mean is that this has changed,” he said. “They are saying ‘No, you are not welcome any more’.

“This is very dangerous.”

(Additional reporting by Lidia Kelly and Justyna Pawlak in Warsaw and Tatiana Jancarikova in Bratislava; Editing by Gareth Jones)

Poll sees Irish nationalist vote up in Northern Ireland election

Tellers count ballots in the Northern Ireland assembly elections, in Ballymena, Northern Ireland March 3, 2017. REUTERS/Clodagh Kilcoyne

BELFAST (Reuters) – Turnout was higher among Irish nationalist voters than pro-British unionists in elections in Northern Ireland on Thursday, an online exit poll indicated, but it was unclear if it would be enough to shift the balance of power in the British province.

Nationalists who favor a united Ireland and unionists who want Northern Ireland to remain British are jostling for position ahead of talks on Britain’s exit from the European Union, which is set to determine the province’s political and economic future.

Opinion polls ahead of the election indicated that the pro-British Democratic Unionist Party would lose votes but remain the largest party, followed by Irish nationalists Sinn Fein.

An online exit poll by Lucid Talk found that turnout appeared to be 2-3 percent higher among nationalist voters compared to an election year ago while turnout for unionist voters was unchanged.

“People seem to be more engaged on the Republican side to come out and vote,” said Bill White, managing director at Lucid Talk. “That differential turnout could come into play when last seats are in play.”

While analysts say Sinn Fein is unlikely to become the largest party for the first time – an outcome that would turn Northern Ireland politics on its head – a strong showing could help them secure concessions from the DUP.

Sinn Fein is insisting that DUP leader Arlene Foster step aside before it will consider re-entering government. While the DUP have rejected this outright, a poor result might force her to step down.

The largest unionist and nationalist parties after the election will have three weeks to form a power-sharing government to avoid devolved power returning to the British parliament at Westminster for the first time in a decade.

While no one predicts the impasse will bring a return to the violence that killed 3,600 people in the three decades before a 1998 peace agreement, some are warning of a deterioration in community relations coupled with government paralysis as Brexit talks determine the province’s political and economic future.

Sinn Fein brought on the election by collapsing the power-sharing government in January over the role of the DUP in a scandal over heating subsidies that could cost the state 500 million pounds. The DUP deny wrongdoing.

(Reporting by Ian Graham and Conor Humphries; Editing by Angus MacSwan)

EU needs common approach on testing banks’ cyber-risks: Dombrovskis

European Commission Vice-President Valdis Dombrovskis addresses a news conference on the European Semester Winter Package in Brussels, Belgium February 22, 2017. REUTERS/Francois Lenoir

BRUSSELS (Reuters) – European Union countries should test bank defenses against cyber-attacks using a common set of requirements, a senior EU official said on Tuesday, as the bloc plans measures to boost the retail market for financial products.

Cyber attacks against banks have increased in numbers and sophistication in recent years, raising questions on lenders’ capacity to protect their customers.

Seeking to reassure savers and strengthen financial stability, several EU countries are conducting tests on banks’ security systems, but EU authorities warned national initiatives may be less effective and more costly than a common EU approach.

“We want to avoid a proliferation of testing obligations that operate in different countries,” the EU commission’s vice president Valdis Dombrovskis told a conference in Brussels.

“We believe tests that meet comparable standards should be recognized across borders,” he added. This could pave the way for common stress-tests carried out at EU level, as suggested by EU officials in past weeks.

The call for higher cyber-security comes as the Commission prepares a policy action plan on retail financial services, such as insurance, loans and payments, that will be released in the coming weeks.

Dombrovskis said the plan would encourage the use of remote identification schemes, such as e-signature and e-identification, to try to boost consumers’ access to financial services and lower costs.

It will also attempt to facilitate the take-up of new technologies in the financial sector, where emerging fintech companies are challenging traditional actors in a range of services, including payments and insurance.

“Our focus should be on removing barriers to market entry and keeping our legislation proportionate,” Dombrovskis said, noting that changes may create new risks that need to be addressed with greater sharing of information among financial firms and common testing of security systems.

(Reporting by Francesco Guarascio; Editing by Keith Weir)

U.S. says Trump order will not undermine data transfer deals with EU

U.S. President Donald Trump walks after speaking during the Governor's Dinner in the State Dining Room at the White House in Washington, U.S., February 26, 2017.

By Julia Fioretti

BRUSSELS (Reuters) – An executive order signed by U.S. President Donald Trump to crack down on illegal immigration will not undermine two data transfer agreements between the United States and the EU, Washington wrote in a letter to allay European concerns.

An executive order signed by Trump on Jan. 25 aiming to toughen enforcement of U.S. immigration law rattled the European Union as it appeared to suggest Europeans would not be given the same privacy protections as U.S. citizens.

The order directs U.S. agencies to “exclude persons who are not United States citizens or lawful permanent residents from the protections of the Privacy Act regarding personally identifiable information.”

Securing equal treatment of EU citizens was key to agreeing the Umbrella Agreement which protects law enforcement data shared between the United States and the EU.

And the EU-U.S. Privacy Shield – which makes possible about $260 billion of trade in digital services – was only clinched after Washington agreed to protect the data from excessive surveillance and misuse by companies.

In the first written confirmation since the executive order stoked uncertainty over transatlantic data flows, the U.S. Department of Justice said the executive order did not affect either the Umbrella Agreement or the Privacy Shield.

“Section 14 of the Executive Order does not affect the privacy rights extended by the Judicial Redress Act to Europeans. Nor does Section 14 affect the commitments the United States has made under the DPPA (Umbrella Agreement) or the Privacy Shield,” Bruce Swartz, Deputy Assistant Attorney General, wrote to the European Commission in a letter seen by Reuters.

EU Justice Commissioner Vera Jourova, who will travel to the United States at the end of March, said she was “not worried” but remained vigilant.

The EU-U.S. Privacy Shield is used by almost 2,000 companies including Google, Facebook and Microsoft  to store data about EU citizens on U.S. servers.

Its predecessor was struck down in 2015 by the EU’s top court for allowing U.S. agents unfettered access to Europeans’ data, forcing an acceleration of difficult talks to find a replacement.

(Reporting by Julia Fioretti; Editing by Mark Potter)

UK economy picks up in late 2016 but signs of Brexit hit appear

Workers walk to work during the morning rush hour in the financial district of Canary Wharf in London, Britain, January 26, 2017. REUTERS/Eddie Keogh

By Andy Bruce and William Schomberg

LONDON (Reuters) – Britain’s economy sped up at the end of 2016, data showed, but over the whole year it was weaker than previously thought and there were signs that the Brexit vote will increasingly act as a brake on growth in 2017.

The pound fell after Wednesday’s Office for National Statistics (ONS) figures, which no longer showed Britain was the fastest-growing major advanced economy last year.

Gross domestic product rose by 0.7 percent in the fourth quarter, faster than the preliminary reading of 0.6 percent thanks to manufacturing and the strongest growth since the fourth quarter of 2015.

The figures are likely to reinforce finance minister Philip Hammond’s view that there is no case right now to borrow more to help the economy when he announces his annual budget on March 8.

But he will keep a close eye on warning signs in Wednesday’s data.

Business investment fell and slowing household spending growth raised questions about the outlook for 2017.

The ONS also trimmed its estimate for 2016 growth to 1.8 percent from 2.0 percent, due to businesses stockpiling fewer goods and materials in early 2016.

That pushed Britain’s economic growth rate slightly below Germany’s 1.9 percent.

Separate ONS data showed Britain’s dominant services sector expanded in December at the slowest pace in seven months.

Angus Armstrong, director of macroeconomics at the National Institute of Economic and Social Research, said the familiar pattern of consumers driving the economy was likely to fade.

“The UK economy needs another driver if it is not to have a significant slowdown in 2017,” he said. “The pattern of strong consumer spending and weaker business investment can only be a limited one.”

Business investment fell 1.0 percent in the fourth quarter compared with the July-September period. Investment by companies was 0.9 percent lower compared with the fourth quarter of 2015.

Firms are expected to rein in their investment plans as Britain negotiates its departure from the EU, a process that Prime Minister Theresa May is due to kick off in coming weeks.

The outlook for wages is key for spending by households who have driven Britain’s economy since the Brexit vote. Wednesday’s data showed compensation of employees edged up by 0.1 percent in the fourth quarter, the weakest rise in more than three years.

BREXIT SQUEEZE

The ONS said household spending increased 0.7 percent on the quarter, slowing from 0.9 percent in the third quarter and marking the weakest growth in a year.

Bank of England deputy governor Minouche Shafik said after the data that the central bank still expected overall economic growth this year of 2.0 percent, much stronger than most economists polled by Reuters expect.

But the bank also predicts a growing squeeze on consumers as inflation rises due to the pound’s fall since June’s vote to leave the European Union.

There are signs this has started. Data last week showed retail sales fell in each of the three months to January.

The BoE this month signaled that it is in no hurry to raise interest rates with so much Brexit-related uncertainty ahead.

The central bank expects the economy to grow at a slower pace in subsequent years than if Britain had voted to stay in the EU.

(Editing by John Stonestreet)

‘Alarming’ superbugs a risk to people, animals and food, EU warns

electronic microscope of superbug

By Kate Kelland

LONDON (Reuters) – Superbug bacteria found in people, animals and food across the European Union pose an “alarming” threat to public and animal health having evolved to resist widely used antibiotics, disease and safety experts warned on Wednesday.

A report on antimicrobial resistance in bacteria by the European Food Safety Authority (EFSA) and the European Centre for Disease Prevention and Control (ECDC) said some 25,000 people die from such superbugs in the European Union every year.

“Antimicrobial resistance is an alarming threat putting human and animal health in danger,” said Vytenis Andriukaitis, the EU’s health and food safety commissioner.

“We have put substantial efforts to stop its rise, but this is not enough. We must be quicker, stronger and act on several fronts.”

Drug resistance is driven by the misuse and overuse of antibiotics, which encourages bacteria to evolve to survive and develop new ways of beating the medicines.

Wednesday’s report highlighted that in Salmonella bacteria – which can cause the common and serious food-borne infection Salmonellosis – multi-drug resistance is high across the EU.

Mike Catchpole, the ECDC’s chief scientist, said he was particularly concerned that some common types of Salmonella in humans, such as monophasic Salmonella Typhimurium, are showing extremely high multi-drug resistance.

“Prudent use of antibiotics in human and veterinary medicine is extremely important,” he said. “We all have a responsibility to ensure that antibiotics keep working.”

Resistance to carbapenem antibiotics – usually the last remaining treatment option for patients infected with multi-drug resistant superbugs – was detected for the first time in animals and food, albeit at low levels, as part of EU-wide annual monitoring for the report.

It said very low levels of resistance were observed in E. coli bacteria found in pigs and in meat from pigs.

Resistance to colistin, another last-resort human antibiotic – was also found at very low levels in Salmonella and E. coli in pigs and cattle, the report said.

Marta Hugas, head of EFSA’s biological hazards and contaminants unit, noted geographic variations across the European Union, with countries in northern and western Europe generally having lower resistance levels than those in southern and eastern Europe and said this was most likely due to differences in the level of use and overuse of the medicines.

“In countries where actions have been taken to reduce, replace and re-think the use of antimicrobials in animals show lower levels of antimicrobial resistance and decreasing trends,” she said.

(This story is a refile to remove extraneous word in first paragraph)

(Editing by Jeremy Gaunt)