Tag Archives: Europe

Spain apologizes, tone softens in Catalonia independence crisis

Tiles with the Estelada (Catalan separatist flag) are displayed on a table covered with a Catalan flag at an arts and craft market four days after the banned independence referendum, in Barcelona, Spain October 5, 2017. REUTERS/Susana Vera

By Sam Edwards and Raquel Castillo

BARCELONA/MADRID (Reuters) – Spain apologized on Friday for a violent police crackdown on Catalonia’s independence referendum, in a conciliatory gesture as both sides looked for a way out of the nation’s worst political crisis since it became a democracy four decades ago.

Spain’s representative in northeast Catalonia, which accounts for a fifth of the national economy, made the apology just as Catalonia’s secessionist leader appeared to inch away from a plan to declare independence as early as Monday.

“When I see these images, and more so when I know people have been hit, pushed and even one person who was hospitalized, I can’t help but regret it and apologize on behalf of the officers that intervened,” Enric Millo said in a television interview.

Spanish police used batons and rubber bullets to stop people voting in Sunday’s referendum, which Madrid had banned as unconstitutional. The scenes brought worldwide condemnation and fanned separatist feeling but failed to prevent what the Catalan government described as an overwhelming yes vote.

Moments earlier, a Catalan parliament spokeswoman said the regional government’s leader, Carles Puigdemont, had asked to address lawmakers on Tuesday, in timing that appeared at odds with earlier plans to move an independence motion on Monday.

Puigdemont wanted to speak on the “political situation”.

The softer tone contrasted with remarks earlier on Friday from Catalonia’s head of foreign affairs who told BBC radio it would go ahead with an independence debate in the regional parliament.

Spanish Prime Minister Mariano Rajoy has offered all-party political talks to find a solution, opening the door to a deal giving Catalonia more autonomy. But he has ruled out independence and rejected a Catalan proposal for international mediation.

The stakes are high for the euro zone’s fourth-largest economy. Catalonia is the source of a huge chunk of its tax revenue and hosts multinationals from carmaker Volkswagen to drugs firm AstraZeneca <AZN.L>.

Secession could also fuel separatist-nationalist divisions across the rest of Spain, which only this year saw ETA guerrillas in the northern Basque region lay down their arms after a campaign lasting almost half a century.

Spanish ruling-party lawmakers say Rajoy is considering invoking the constitution to dissolve the regional parliament and force fresh Catalan elections if the region’s government goes ahead with an independence declaration.

The spokeswoman for Catalan parliament said Puigdemont would speak in the assembly next Tuesday, with parliamentary leaders to meet on Friday at 1330 GMT to decide on the exact timing.

STOCKS, BONDS SINK

The Catalan government’s head of foreign affairs, Raul Romeva, told the BBC that the crisis could only be resolved with politics, not via judicial means.

“Every threat, every menace, using the police, using … the Constitutional Court has been useless in trying to (get) people from step back away from their legitimate rights,” he said.

His remarks hit Spanish stocks and bonds, including shares in the region’s two largest banks, Caixabank <CABK.MC> and Sabadell <SABE.MC>. Sabadell decided on Thursday to move its legal base to Alicante. Caixabank <CABK.MC>, Spain’s third-largest lender, will consider on Friday whether to also transfer its legal base away from Catalonia, a source said.

The court’s suspension order further aggravated one of the biggest crises to hit Spain since the establishment of democracy on the 1975 death of General Francisco Franco.

Secessionist Catalan politicians have pledged to unilaterally declare independence at Monday’s session after staging an independence referendum last Sunday. Madrid had banned the vote and sought to thwart it by sending in riot police.

In a separate development that could raise tensions, Catalan police chief Josep Lluis Trapero appeared in Spain’s High Court on Friday to answer accusations he committed sedition by failing to enforce a court ban on holding the referendum.

Unlike national police, Catalonia’s force, the Mossos d’Esquadra, did not use force to prevent people voting. Trapero has emerged as a hero for the pro-independence movement.

Spanish Economy Minister Luis de Guindos told Reuters in an interview on Thursday the turmoil was damaging Catalonia, an industrial and tourism powerhouse which accounts for a fifth of the national economy.

In addition, the central government on Friday passed a law to make it easier for companies to move their operations around the country just as some businesses consider leaving Catalonia, potentially dealing a blow to the region’s finances.

Opinion polls conducted before the vote suggest a minority of around 40 percent of residents in Catalonia back independence. But a majority wanted a referendum to be held, and the violent police crackdown angered Catalans across the divide.

Catalan officials released preliminary referendum results showing 90 percent support in favor of breaking away.

But turnout was only about 43 percent as Catalans who favor remaining part of Spain mainly boycotted the ballot.

(Reporting by Elisabeth O’Leary, Paul Day, Andres Gonzalez and Rodrigo de Miguel; Editing by Mark Bendeich and Hugh Lawson)

Catalan leader says not afraid of arrest over independence: report

Catalan President Carles Puigdemont is seen on a TV screen at a bar during a televised statement in Barcelona, Spain, October 4, 2017. REUTERS/Yves Herman

MADRID (Reuters) – The leader of Catalonia, Carles Puigdemont, said he was not afraid of being arrested for organizing a banned referendum on the region’s independence from Spain, which went ahead on Sunday despite Madrid using force to try to stop people voting.

Spanish riot police used truncheons and rubber bullets on voters, drawing worldwide criticism and tipping Spain into its biggest constitutional crisis in decades.

Puigdemont’s government is to ask the regional parliament on Monday to declare independence, after his officials released preliminary referendum results showing 90 percent support in favor of breaking away.

Turnout was only about 43 percent as Catalans who favor remaining part of Spain mainly boycotted the ballot.

“Personally, I am not afraid of that,” Puigdemont said in an interview in the German daily Bild, published on Thursday, when asked about his possible arrest.

“And I’m not surprised anymore about what the Spanish government is doing. My arrest is also possible, which would be a barbaric step.”

Neither the Spanish government nor the judiciary has threatened to arrest Puigdemont, though Madrid accuses him of breaking the law by ignoring a Constitutional Court ruling forbidding the referendum from going ahead.

Puigdemont has said the referendum proved the will of the people was to leave Spain and has vowed to continue with secession, despite Madrid’s insistence it won’t happen.

On Wednesday, in a televised address, Puigdemont renewed his call for international mediation but said the results of the referendum would have to be applied. [nL8N1MF20E]

The confrontation has raised fears among investors of unrest in Catalonia, which accounts for a fifth of the Spanish economy. A former principality, the region has its own language and culture and has long complained that it pays more to Madrid in taxes than it receives each year from central funding.

The crisis in the euro zone’s fourth-biggest economy has hurt Spanish bond and stock markets. The nation’s borrowing costs hit a seven-month high on Thursday ahead of a government bond auction that will test investor confidence. [nL8N1MG0IB]

Prime Minister Mariano Rajoy has offered to open multi-party talks that could cut a better tax and constitutional deal for Catalonia in return for the region giving up on independence.

But his government has said the region must “return to the path of law” before negotiations can go ahead. [nL4N1MF2K8]

Sunday’s crackdown by Spanish police, Rajoy’s hardline stance and an uncharacteristically strong intervention this week by Spain’s King Felipe VI seems to have deepened Catalonia’s resolve to continue with the project.

“We will go as far as people want it. But without the use of force. We were always a peaceful movement. And I am sure that Spain will not be able to ignore the will of so many people,” Puigdemont told Bild.

Opinion polls conducted before the vote suggested a minority of around 40 percent of residents in Catalonia backed independence. But a majority wanted a referendum to be held, and the violent police crackdown angered Catalans across the divide.

(Reporting by Paul Day; Editing by Janet Lawrence)

Exclusive: European envoys take fight for Iran nuclear deal to U.S. Congress

An Iranian flag flutters in front of the International Atomic Energy Agency (IAEA) headquarters in Vienna, Austria, January 15, 2016. REUTERS/Leonhard Foeger

By Patricia Zengerle

WASHINGTON (Reuters) – As Congress faces a possible fight over the future of the Iran nuclear agreement, European ambassadors and officials from President Barack Obama’s administration are making their case for preserving the pact directly to U.S. lawmakers.

The British, French, German and European Union ambassadors to the United States will participate later on Wednesday in a meeting on Capitol Hill with Democratic senators organized by the Senate’s number two Democrat, Richard Durbin, congressional aides and embassy officials told Reuters.

Former Undersecretary of State and lead Iran negotiator Wendy Sherman will also attend and former Energy Secretary Ernest Moniz and Treasury Secretary Jack Lew will participate via videolink, an aide to Durbin and another congressional aide said.

The meeting is part of an ongoing effort by Democrats in Congress and other officials who support the nuclear pact to bolster support for the deal by spelling out the consequences of its collapse as Republican President Donald Trump faces an Oct. 15 deadline for certifying the agreement or placing its fate in the hands of Congress.

A British embassy official said Ambassador Kim Darroch was in Congress on Wednesday with his French, German and EU counterparts meeting with both Democrats and Republicans “to provide information on the European position on the JCPOA,” using an acronym for the nuclear agreement.

An EU embassy spokesman confirmed that EU Ambassador David O’Sullivan and others would attend, to explain that the deal is a multilateral agreement that is working and that the European Union will do everything it can to ensure it stays in place.

Trump has long criticized the nuclear pact, a signature foreign policy achievement of his predecessor Obama, and signed in 2015 by the United States, Britain, France, Germany, Russia, China, the European Union and Iran.

Senior White House officials have said that Trump is leaning toward a course of action that could lead to the United States abandoning the pact, despite apparent disagreement within his administration over whether that is the best way forward.

A senior administration official said the administration was considering Oct. 12 for Trump to give a speech on Iran but no final decisions have been made.

Supporters of the deal say its collapse could trigger a regional arms race and worsen Middle East tensions. Opponents say it went too far in easing sanctions without requiring that Iran end its nuclear program permanently.

The ambassadors have said the deal’s demise would be a major loss that could lead to increased enrichment by Iran and weaken international proliferation efforts as the world grapples with a growing nuclear threat from North Korea.

Defense Secretary Jim Mattis said the United States should consider staying in the deal unless it were proven that Tehran was not abiding by the agreement.

Mattis said Iran was “fundamentally” in compliance with the agreement.

Earlier on Wednesday, Secretary of State Rex Tillerson said Trump would be presented with multiple options regarding the future of the nuclear pact.

Under the deal, Iran agreed to curb its nuclear program in exchange for the suspension of international sanctions that were choking its economy. If Trump declines to certify, it could pave the way for Congress to vote to resume those sanctions, killing the deal.

Some Republicans argue that Trump can decertify because he does not believe the agreement is in the national security interest. That, they said, would increase pressure on Tehran because Congress could threaten to re-impose sanctions if Iran does not agree to a more restrictive deal.

Iran has said it may abandon the nuclear deal it reached with the major world powers if the United States decides to withdraw from it.

(Reporting by Patricia Zengerle; Editing by Yara Bayoumy and James Dalgleish)

European ambassadors to U.S. back Iran nuclear pact

FILE PHOTO - German Ambassador to the United Nations Peter Wittig speaks to the media after a U.N. Security Council meeting in New York February 4, 2012. REUTERS/Allison Joyce

By Patricia Zengerle

WASHINGTON (Reuters) – The ambassadors to Washington from Britain, France, Germany and the European Union all strongly backed the international nuclear agreement with Iran on Monday, as long as Tehran continues to comply with the pact.

U.S. President Donald Trump is weighing whether the 2015 deal serves U.S. security interests as he faces a mid-October deadline for certifying that Iran is complying with the pact, a decision that could sink an agreement strongly supported by the other world powers that negotiated it.

“We agree that the demise of this agreement would be a major loss,” David O’Sullivan, the European Union’s envoy in Washington, said at an Atlantic Council panel discussion.

German Ambassador Peter Wittig said anyone advocating walking away should consider “larger issues,” including an increased danger Iran would resume enrichment, danger of a nuclear arms race in an unstable region and impact on global nonproliferation efforts.

“What kind of signal would this send to countries like North Korea?” Wittig asked. “It would send a signal that diplomacy is not reliable, that you can’t trust diplomatic agreements, and that would affect, I believe, our credibility in the West when we’re not honoring an agreement that Iran has not violated.”

If Trump does not recertify by Oct. 16, Congress has 60 days to decide whether to reimpose sanctions suspended under the accord.

That would let Congress, which is controlled by Trump’s fellow Republicans, effectively decide whether to kill the deal. Although congressional leaders have declined to say whether they would seek to reimpose sanctions, every Republican lawmaker opposed the deal reached by Democratic President Barack Obama’s administration.

Many, like Trump, have made opposition to the agreement a campaign issue.

If Washington pulls out of the deal, the ambassadors said they would do everything possible to protect any companies based in Europe that continue to do business with Iran from reimposed U.S. sanctions.

Britain’s ambassador, Kim Darroch, said Trump and Prime Minister Theresa May had devoted about half their discussion to Iran when they met in New York last week, although Trump did not reveal his decision.

He said May had explained again why Britain supports the nuclear pact, seeing it as a matter of national security. “As long as the Iranians continue to comply with it, in the view of the IAEA, we will continue to support it,” he said, referring to the International Atomic Energy Agency.

Speaking separately at another event in Washington, White House national security adviser H.R. McMaster defended Trump’s criticism of the deal.

“I obviously agree with the president on this, I think it was the worst deal. It gave Iran all of the benefits up front,” McMaster said, adding that it had the “fatal flaw of a ‘sunset clause’.” He was speaking at an event hosted by the Institute for the Study of War.

The so-called sunset clauses are provisions under which some of the deal’s restrictions on Iran’s nuclear program expire from 2025.

French Ambassador Gerard Araud noted that the other countries that signed the pact – Russia, China and Iran – had made clear that they do not support renegotiating.

(Reporting by Patricia Zengerle Additional reporting by Phil Stewart; Editing by Lisa Shumaker and James Dalgleish)

EU must be part of U.S. Middle East peace push, Ireland says

FILE PHOTO: Ireland's Minister of Foreign Affairs Simon Carbery Coveney attends informal meeting of European Union Ministers of Foreign Affairs in Tallinn, Estonia September 7, 2017. REUTERS/Ints Kalnins/File Photo

By Robin Emmott

TALLINN (Reuters) – Israelis and Palestinians will face more unrest over the next year without a revival of a long-fractured Middle East peace process that the European Union must be part of, Ireland’s foreign minister said on Friday.

Simon Coveney, who met Israeli and Palestinian leaders less than a month after taking up his post in June, is leading the charge to involve the EU in a fresh attempt at peace talks and overcome divisions that have weakened the bloc’s influence.

Speaking to EU foreign ministers at a meeting on Middle East policy in Tallinn on Thursday, Coveney said the bloc had a duty to make its voice heard in any new U.S. initiative as the Palestinians’ biggest aid donor and Israel’s top trade partner.

“My concern is that it will be a much more difficult political challenge in a year’s time or in two years’ time,” Coveney told Reuters.

“If you look at cycles of violence in Gaza, for example, without intervention and new initiatives in my view, we are heading there again,” he said, describing the Israel-Palestinian situation as an “open sore” that could erupt at any time.

Coveney said EU governments had to pull together and keep the focus on a two-state solution.

“Now is the time for the European Union … to become more vocal,” said Coveney, who met Israeli Prime Minister Benjamin Netanyahu and Palestinian President Mahmoud Abbas in July.

Coveney has also met Jason Greenblatt, Trump’s Middle East envoy, and said it was crucial that the EU sought to influence U.S. plans that are being drawn up by Greenblatt and Trump’s son-in-law and senior adviser, Jared Kushner.

Coveney said the European Union had a right to be heard because EU governments and the European Commission spend 600 million euros ($724 million) a year on aid to the Palestinians and on projects with Israel.

“We cannot simply wait for the U.S. to take an initiative on their own, we should be supportive of them and helping them to shape it and design it in a way that is likely to have international community support,” he said, although he added he still did not know what the U.S. proposals would look like.

“In the absence of the U.S. being able to bring forward a new initiative, I think the EU will have to do that itself.”

Hurdles for the European Union include its range of positions, ranging from Germany’s strong support for Israel to Sweden’s 2014 decision to officially recognize the state of Palestine, something Ireland considered three years ago.

Coveney said the European Union is also perceived by some in Israel as being too pro-Palestinian, partly because of the EU’s long-held opposition to Israeli settlements.

But Coveney said the European Union could build trust with Israel by deepening ties in trade, science, scholarships for students and to pursue what he called “a positive agenda”.

The EU aims to hold a high-level meeting with Israel to broaden trade and other economic links later this year, although a date is still pending. It would be the first such meeting since 2012.

(Reporting by Robin Emmott; Editing by Alison Williams)

Cyber alert: EU ministers test responses in first computer war game

Cyber alert: EU ministers test responses in first computer war game

By Robin Emmott

TALLINN (Reuters) – European Union defense ministers tested their ability to respond to a potential attack by computer hackers in their first cyber war game on Thursday, based on a simulated attack on one of the bloc’s military missions abroad.

In the simulation, hackers sabotaged the EU’s naval mission in the Mediterranean and launched a campaign on social media to discredit the EU operations and provoke protests.

Each of the defense ministers tried to contain the crisis over the course of the 90-minute, closed-door exercise in Tallinn that officials sought to make real by creating mock news videos giving updates on an escalating situation.

German Defence Minister Ursula von der Leyen said the “extremely exciting” war game showed the need for EU governments to be more aware of the impact of cyber attacks on critical infrastructure in the EU.

“The adversary is very, very difficult to identify, the attack is silent, invisible,” Von der Leyen told reporters. “The adversary does not need an army, but only a computer with internet connection”.

After a series of global cyber attacks disrupted multinational firms, ports and public services on an unprecedented scale this year, governments are seeking to stop hackers from shutting down more critical infrastructure or crippling corporate and government networks.

“We needed to raise awareness at the political level,” Jorge Domecq, the chief executive of the European Defence Agency that helped organize the exercise with Estonia, told Reuters.

Especially concerned about Russia since it seized Crimea from Ukraine in 2014, Estonia has put cyber security at the forefront of its six-month EU presidency and proposed the exercise.

Estonia was hit by cyber attacks on private and government Internet sites in 2007. One of the world’s most Internet-savvy countries, with 95 percent of government services online, Estonia has a separate cyber command in its armed forces. But it is not without its vulnerabilities.

International researchers have found a security risk with the chips embedded in Estonian identity cards that could allow hackers to steal people’s identities, although officials said there was no evidence of a hack.

INCIDENT, THREAT OR ATTACK?

NATO last year recognized cyberspace as a domain of warfare and said it justified activating the alliance’s collective defense clause. The European Union has broadened its information-sharing between governments and is expected to present a new cyber defense plan.

The EU exercise made ministers consider how to work more closely with NATO, whose Secretary-General Jens Stoltenberg was there as an observer, diplomats present said.

“Over the last year, we saw a 60 percent increase in the number of cyber attacks against NATO networks,” Stoltenberg told reporters. “A timely exchange of information (with the EU) is key to responding to any cyber attacks.”

EU cyber exercises are not new, but officials said the idea of Thursday’s exercise was to put the onus on defense ministers to act by simulating a temporary loss of military operational command, even if they would have more support in a real-life situation.

Using tablet computers, ministers answered multiple-choice questions as they reacted to the situation, including some on whether they would make public statements or keep the situation secret.

“Do you announce to the whole country that you are under a cyber attack. Is it an incident, a threat or an attack? These are the questions that ministers were forced to consider, probably for the first time,” Estonian Defence Minister Juri Luik told Reuters.

(Reporting by Robin Emmott; Editing by Hugh Lawson)

Top EU court rules eastern states must take refugees

FILE PHOTO: Migrants face Hungarian police in the main Eastern Railway station in Budapest, Hungary, September 1, 2015. REUTE/Laszlo Balogh/File Photo

By Michele Sinner

LUXEMBOURG (Reuters) – The European Union’s highest court ruled on Wednesday that EU states must take in a share of refugees who reach Europe, dismissing complaints by Slovakia and Hungary and reigniting an angry row between east and west.

The government of Hungary’s nationalist Prime Minister Victor Orban was characteristically blunt about the European Court of Justice, calling its decision to uphold an EU policy drafted in the heat of the 2015 migrant crisis as “appalling” and denouncing a political “rape of European law and values”.

However, Germany, which took in the bulk of over a million people who landed in Greece two years ago, said it expected the formerly communist states, including Poland, which supported the complaint, to now fall in line and accept the ruling that the Union is entitled to impose quotas of asylum-seekers on states.

The Luxembourg-based ECJ rejected the Hungarian and Slovak claims that it was illegal for Brussels to order them to take in hundreds of mainly Muslim refugees from Syria, which they said threatened the security and stability of their societies.

“The mechanism actually contributes to enabling Greece and Italy to deal with the impact of the 2015 migration crisis and is proportionate,” the court said in statement.

Italy, now the main destination for migrants risking the Mediterranean crossing, is prominent among wealthier, Western states in threatening their eastern neighbors with cutting their EU subsidies if they do show solidarity by taking people in. Slovak Prime Minister Robert Fico said he would still not take a quota but was ready to help in other ways.

A sharp decline in numbers arriving, partly a result of the effective closure of routes from Turkey to Greece and from Greece into Macedonia and toward northern Europe, has taken some of the heat out of the arguments and diplomats expect the EU executive, the European Commission, to propose new ideas.

“We can expect all European partners to stick to the ruling and implement the agreements without delay,” German Foreign Minister Sigmar Gabriel said in a statement.

The eurosceptic AfD party, which expects to win seats in the Berlin parliament at a national election on Sept. 24, criticized the court ruling as proof that unelected “Brussels bureaucrats” were imposing on states — though in fact the Commission’s quota policy was backed by a majority of the member state governments.

EU Migration Commissioner Dimitris Avramopoulos tweeted: “Time to work in unity and implement solidarity in full.”

“RAPE OF LAW AND VALUES”

Calling the court ruling “appalling and irresponsible”, Hungarian Foreign Minister Peter Szijjarto said: “This decision jeopardizes the security and future of all of Europe.

“Politics has raped European law and values.”

EU asylum law states that people arriving in the bloc should claim asylum in the first member state they enter but that rule was exposed as unworkable when hundreds of thousands arrived in economically struggling Greece and Italy. Arguments over what to do struck at the heart of the Union’s cooperation and chaotic movements of people saw member states try to seal borders with each other, dealing a heavy blow to a key EU achievement.

The migration crisis came at a time of deep soul-searching about the Union’s future and some questioned its survival.

However, a drop in migrant numbers, to which cooperation on tightening the common external border has contributed, as well as an economic upturn and election defeats for anti-immigrant parties has steadied nerves in Brussels, despite the difficulty posed by Britain’s vote last year to exit the bloc.

The program provided for the relocation of up to 120,000 people from Greece and Italy, but less than 30,000 have so far been moved, partly through difficulties in identifying suitable candidates. A further program for resettling people directly from outside the EU has also struggled to hit targets.

Hungary and Poland have refused to host a single person under the 2015 sharing scheme, while Slovakia and the Czech Republic have each taken in only a dozen or so.

While the EU has sought in vain to come up with a compromise, the court ruling may just force Brussels’ hand.

It is a delicate balancing act as putting such a thorny issue to a vote, and possibly passing a migration reform despite opposition from several states, would cause even more bad blood.

“If we push it through above their heads, they will use it in their anti-EU propaganda at home,” another EU diplomat said of Poland and Hungary, where the nationalist-minded governments are embroiled in disputes with Brussels over democratic rules.

“But the arrivals are low, we have it more or less under control, so we have to get back to the solidarity mechanism.”

(Additional reporting and writing in Brussels by Gabriela Baczynska and Alastair Macdonald; editing by Philip Blenkinsop and Angus MacSwan)

Hackers gain entry into U.S., European energy sector, Symantec warns

Hackers gain entry into U.S., European energy sector, Symantec warns

By Dustin Volz

WASHINGTON (Reuters) – Advanced hackers have targeted United States and European energy companies in a cyber espionage campaign that has in some cases successfully broken into the core systems that control the companies’ operations, according to researchers at the security firm Symantec.

Malicious email campaigns have been used to gain entry into organizations in the United States, Turkey and Switzerland, and likely other countries well, Symantec said in a report published on Wednesday.

The cyber attacks, which began in late 2015 but increased in frequency in April of this year, are probably the work of a foreign government and bear the hallmarks of a hacking group known as Dragonfly, Eric Chien, a cyber security researcher at Symantec, said in an interview.

The research adds to concerns that industrial firms, including power providers and other utilities, are susceptible to cyber attacks that could be leveraged for destructive purposes in the event of a major geopolitical conflict.

In June the U.S. government warned industrial firms about a hacking campaign targeting the nuclear and energy sectors, saying in an alert seen by Reuters that hackers sent phishing emails to harvest credentials in order to gain access to targeted networks.

Chien said he believed that alert likely referenced the same campaign Symantec has been tracking.

He said dozens of companies had been targeted and that a handful of them, including in the United States, had been compromised on the operational level. That level of access meant that motivation was “the only step left” preventing “sabotage of the power grid,” Chien said.

However, other researchers cast some doubt on the findings.

While concerning, the attacks were “far from the level of being able to turn off the lights, so there’s no alarmism needed,” said Robert M. Lee, founder of U.S. critical infrastructure security firm Dragos Inc, who read the report.

Lee called the connection to Dragonfly “loose.”

Dragonfly was previously active from around to 2011 to 2014, when it appeared to go dormant after several cyber firms published research exposing its attacks. The group, also known as Energetic Bear or Koala, was widely believed by security experts to be tied to the Russian government.

Symantec did not name Russia in its report but noted that the attackers used code strings that were in Russian. Other code used French, Symantec said, suggesting the attackers may be attempting to make it more difficult to identify them.

(Reporting by Dustin Volz; Editing by Leslie Adler)

France says North Korea close to long-range missile capability

A new stamp issued in commemoration of the successful second test launch of the "Hwasong-14" intercontinental ballistic missile is seen in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang on August 31, 2017.

PARIS (Reuters) – France’s foreign minister said on Friday that North Korea would have capability to send long-range ballistic missiles in a few months and urged China to be more active diplomatically to resolve the crisis.

“The situation is extremely serious… we see North Korea setting itself as an objective to have tomorrow or the day after missiles that can transport nuclear weapons. In a few months that will be a reality,” Jean-Yves Le Drian told RTL radio.

“At the moment, when North Korea has the means to strike the United States, even Europe, but definitely Japan and China, then the situation will be explosive,” he said.

Le Drian, who spoke to his Chinese counterpart on Thursday, said everything had to be done to ensure a latest round of United Nations sanctions was implemented and urged China, Pyongyang’s main trade partner, to do its utmost to enforce them.

“North Korea must find the path to negotiations. It must be diplomatically active.”

 

(Reporting by John Irish, Editing by Leigh Thomas)

 

EU urges swifter Brexit talks as London seeks ‘flexibility’

Britain's Secretary of State for Exiting the European Union David Davis (L) and European Union's chief Brexit negotiator Michel Barnier talk to the media, ahead of Brexit talks in Brussels, Belgium August 28, 2017. REUTERS/Francois Lenoir

By Gabriela Baczynska and Alastair Macdonald

BRUSSELS (Reuters) – The European Union’s chief negotiator Michel Barnier said on Monday he was concerned at the slow progress of Brexit talks, while his British counterpart David Davis called for “imagination and flexibility” to move on.

British officials arrived in Brussels on Monday hoping to push the EU toward talks about their post-Brexit ties, which the bloc refuses to launch until there is agreement on London’s exit bill and other pressing “divorce” matters, including the rights of EU citizens in Britain after March 2019.

“To be honest, I am concerned. Time passes quickly,” Barnier told reporters as he welcomed Davis back for a new round of talks. The third formal session since the process began in June, it is due to wind up on Thursday.

“We must start negotiating seriously,” Barnier said. “The sooner we remove the ambiguity, the sooner we will be in a position to discuss the future relationship.”

He welcomed a series of proposals London made over the summer break, but made clear they fell short of what EU leaders want to see before they will agree to open negotiations on the future free trade agreement the British government wants.

Impatient with the structure of talks agreed among the 27 other states and now binding Barnier’s negotiators, the British position papers made frequent reference to a future relationship with the EU rather than just the immediate task of bringing legal clarity for people and business when Britain leaves.

“The UK government has published a large number of papers covering important issues related to our withdrawal and our vision for a deep and special partnership,” Davis said.

“We want to lock in the points where we agree, unpick the areas where we disagree and make further progress on the whole range of issues,” he added.

To do that would require “flexibility and imagination from both sides”, he said.

But the EU wants to settle the major separation issues of ensuring expatriate rights, agreeing a divorce bill and squaring the circle of the future Irish border before jumping into talks about post-Brexit ties with London.

“The EU 27 and the European Parliament are united. They will not accept that separation issues are not addressed properly,” Barnier said. “I am ready to intensify negotiations over the coming weeks in order to advance.”

British officials took a relaxed view of Barnier’s implied criticisms, noting it was a familiar line from the former French minister, and dismissed a suggestion talks were going badly.

 

NO BREAKTHROUGH EXPECTED

The EU has already signaled that the slow progress so far has made talks about a new accord with Britain less likely to start after an EU summit in October, as had been hoped.

The EU and Britain seem far apart on agreeing how much London should pay the bloc on departure to account for previous commitments.

The Irish issue is extremely delicate because of the history of political violence there, as well as the complex economic consequences of Brexit.

Dublin said on Monday much of the future border arrangements between Northern Ireland and Ireland could be solved before Brexit talks enter the next phase.

Neither side expects major breakthroughs this week in talks aimed at unraveling more than 40 years of union. Neither seems ready for major political concessions at this stage.

An EU official said it was “clearly worrying that we have major differences of core issues … with very little time to land all this, even if Britain moves”.

Britain’s opposition Labour Party on Sunday offered an alternative to the policy pursued by Conservative Prime Minister Theresa May by saying it would stay in the European single market for a transitional period after Brexit.

The British and German chambers of commerce together urged negotiators on Monday to start talks about future trading relations, and particularly customs arrangements, swiftly.

Writing in Le Monde in his native France, Barnier said the EU and Britain must remain allies for their common defense: “The Union of 27 and the United Kingdom will have to join forces to stand up to common threats,” he said.

“The security of our citizens cannot be haggled over.”

 

(Additional reporting by Philip Blenkinsop and Jan Strupczewski; editing by Andrew Roche)