‘No turning back’: PM May triggers ‘historic’ Brexit

The Big Ben clock tower is seen in London, Britain March 29, 2017. REUTERS/Hannah McKay

By Guy Faulconbridge and Elizabeth Piper

LONDON (Reuters) – Prime Minister Theresa May formally began Britain’s divorce from the European Union on Wednesday, saying there was “no turning back” from a decision pitching her country into the unknown and triggering years of fraught negotiations.

Nine months after Britons voted to leave, May notified EU Council President Donald Tusk in a letter that Britain was quitting the bloc it joined in 1973.

“The United Kingdom is leaving the European Union,” May later told parliament in London. “This is an historic moment from which there can be no turning back.”

The prime minister, an initial opponent of Brexit who won the top job in the political turmoil that followed the referendum vote, now has two years to settle the terms of the divorce before it comes into effect in late March 2019.

May, 60, has one of the toughest jobs of any recent British prime minister: holding Britain together in the face of renewed Scottish independence demands, while conducting arduous talks with 27 other EU states on finance, trade, security and other complex issues.

The outcome of the negotiations will shape the future of Britain’s $2.6 trillion economy, the world’s fifth biggest, and determine whether London can keep its place as one of the top two global financial centers.

For the EU, already reeling from successive crises over debt and refugees, the loss of Britain is the biggest blow yet to 60 years of efforts to forge European unity in the wake of two world wars.

Its leaders say they do not want to punish Britain. But with nationalist, anti-EU parties on the rise across Europe, they cannot afford to give London generous terms that might encourage other member states to break away.

BREXIT DIVORCE

May’s notice of the UK’s intention to leave the bloc under Article 50 of the EU’s Lisbon Treaty was hand-delivered to Tusk in Brussels by Tim Barrow, Britain’s permanent representative to the EU.

Barrow gave the letter to Tusk, the EU summit chair and former Polish prime minister, in the Council President’s offices on the top floor of the new Europa Building, according to a Reuters photographer in the room.

That moment formally set the clock ticking on Britain’s two-year exit process. Sterling, which has lost 25 cents against the dollar since the June 23 referendum, jumped to $1.25.

May signed the Brexit letter on Tuesday, pictured alone at the cabinet table beneath a clock, a British flag and an oil-painting of Britain’s first prime minister, Robert Walpole.

BREXIT DEAL?

The 6-page letter set a positive tone for the talks though it admitted that the task of extracting the UK from the EU was momentous and that reaching comprehensive agreements within two years would be a challenge.

May wants to negotiate Britain’s divorce and the future trading relationship with the EU within the two-year period, though EU officials say that will be hard given the depth of the relationship.

“We believe it is necessary to agree the terms of our future partnership alongside those of our withdrawal from the EU,” May told Tusk in her letter, adding that London wanted an ambitious free trade agreement with the EU.

“If, however, we leave the European Union without an agreement the default position is that we would have to trade on World Trade Organization terms,” she said.

May has promised to seek the greatest possible access to European markets but said Britain was not seeking membership of the ‘single market’ of 500 million people as she understood there could be no “cherry picking” of a free trade area based on unfettered movement of goods, services, capital and people.

Britain will aim to establish its own free trade deals with countries beyond Europe, and impose limits on immigration from the continent, May has said.

In an attempt to start Brexit talks on a conciliatory note, May said she wanted a special partnership with the EU though she laced that ambition with an a clear linkage of the economic and security relationship.

EU leaders will welcome assurances of a constructive approach and appreciate a commitment to remain a close partner for the EU and to encourage its development, as well as an explicit recognition that Britain cannot retain the best bits of membership after leaving.

They may be less warm to an implication that Britain could live with a breakdown of talks on trade coupled with what might be seen as a threat to disrupt the security and counter-terrorism cooperation for which Britain, as a member of the U.S.-backed Anglophone Five Eyes system, is highly valued.

“We should work together to minimize disruption and give as much certainty as possible,” May said. “Weakening our cooperation for the prosperity and protection of our citizens would be a costly mistake.”

Tusk said the EU would seek to minimize the cost of Brexit to EU citizens and businesses and that Brussels wanted an orderly withdrawal for Britain.

“We already miss you,” Tusk said. “Thank you and goodbye.”

Within 48 hours, Tusk will send the 27 other states draft negotiating guidelines. He will outline his views in Malta, where he will be attending a congress of center-right leaders. Ambassadors of the 27 will then meet in Brussels to discuss Tusk’s draft.

“DAMN NARROW TIME-FRAME”

But the course of the Brexit talks – and even their scope – is uncertain.

“The time-frame is damn narrow,” said Martin Schaefer, a spokesman for the German Foreign Ministry.

A huge number of questions remain, including whether exporters will keep tariff-free access to the single market and whether British-based banks will still be able to serve continental clients, not to mention immigration and the future rights of EU citizens in the UK and Britons living in Europe.

One major uncertainty for May is who will be leading France and Germany, which both face elections this year.

“It’s bad news for everybody. It’s a wedge pushed into the European project,” said French centrist presidential candidate Emmanuel Macron, who has made clear he would ensure Britain gains no undue advantages outside the Union.

UNITED KINGDOM?

At home, a divided Britain faces strains that could lead to its break-up. In the Brexit referendum, England and Wales voted to leave the EU but Scotland and Northern Ireland voted to stay.

Scottish nationalists have demanded an independence referendum that May has refused. In Northern Ireland, rival parties are embroiled in a major political crisis and Sinn Fein nationalists are demanding a vote on leaving the UK and uniting with the Republic of Ireland.

May said she knew that triggering Brexit would be a day of celebration for some and disappointment for others.

“Now that the decision to leave has been made and the process is under way, it is time to come together,” she said.

(Additional reporting by Alastair Macdonald, Jan Strupczewski and Yves Herman in Brussels, Michel Rose in Paris and Kylie MacLellan, William James, Estelle Shirbon, Kate Holton, Paul Sandle and Anjuli Davies in London; Writing by Guy Faulconbridge; Editing by Mark Trevelyan, Peter Millership and Giles Elgood)

Wary of Trump, China launches EU charm offensive: diplomats

FILE PHOTO: European Commission President Jean-Claude Juncker, left and Chinese President Xi Jinping shake hands before a meeting held at the Diaoyutai State Guesthouse in Beijing, China, Tuesday, July 12, 2016. REUTERS/Ng Han Guan/Pool/File Photo

By Robin Emmott and Ben Blanchard

BRUSSELS/BEIJING (Reuters) – China has launched a charm offensive with the European Union since U.S. President Donald Trump took office, shifting its stance on trade negotiations and signaling closer cooperation on a range of other issues, European diplomats say.

European envoys in Brussels and Beijing sense a greater urgency from China to find allies willing to stand up for globalization amid fears Trump could undermine it with his protectionist “America First” policies.

“Trump is pushing China and Europe together,” said one Beijing-based diplomat, citing Chinese support for trade, combating climate change and the United Nations, all areas where the new U.S. president is seeking a change of tack.

Four senior EU diplomats and officials in close contact with the Chinese told Reuters they also see a chance for a breakthrough on business issues that have been moving slowly for years, including a special treaty to increase investment flows.

EU business groups are more skeptical, expressing growing dissatisfaction, like their U.S. counterparts, with limited market access in China and pressing for a firmer response.

Diplomats say one of the clearest outward signs of a change in tone in private diplomatic meetings has been China’s decision to drop its public campaign to be recognized by the European Union as an economy directed by the market, not the state.

The case is now being dealt with out of the limelight at the World Trade Organisation in Geneva, in what the diplomats said was a recognition by Beijing that too much pressure could provoke a protectionist backlash in Europe.

Market economy status would make it harder for the European Union to impose punitive tariffs on Chinese imports that Brussels judges as unfairly cheap.

“The market economy status issue, if it is raised at all now, is being discussed at a very low working level,” the diplomat said. “That is part of the charm offensive.”

Chinese Foreign Ministry spokeswoman Hua Chunying said the issue was still a priority for Beijing, while also noting China’s interest in having the EU as a strong partner.

“We hope that the EU can genuinely place an importance on China’s reasonable concerns and interests,” Hua said.

China has told European officials it wants to bring forward its annual summit with the European Union from its usual July date, Reuters reported in February. The diplomats said efforts to find a suitable early date were continuing.

The summit is a way, they said, for China to press home President Xi Jinping’s message at the World Economic Forum in Davos in January, a vigorous defense of open trade and global ties.

INVESTMENT TEST

European companies doing business in China say they have yet to see the change of style translating into less protectionism from Beijing.

But it contrasts sharply with a tense 2016 in which an EU-China summit, overshadowed by an international court ruling that China’s claims to the South China Sea were unlawful, ended without the usual joint statement.

Trump has changed China’s calculations, diplomats said.

During his presidential campaign, Trump frequently accused China of keeping its currency artificially low against the dollar to make Chinese exports cheaper, “stealing” American manufacturing jobs.

He also aims to reverse former President Barack Obama’s anti-fossil fuel strategy that China backed as it seeks to deal with a devastating smog crisis at home.

The Trump administration has said Xi is expected to meet Trump on April 6-7 at the U.S. leader’s Mar-a-Lago resort in the United States, although Beijing has not confirmed the talks. A Chinese diplomat said Beijing was looking for “predictability” from Trump.

The European Union remains cautious about the direction of its second-largest trading partner, concerned by China’s massive steel exports, its militarization of islands in the South China Sea and a turn toward greater authoritarianism under Xi.

But it is looking to a bilateral investment treaty to make it easier for European companies to do business in China and remove onerous rules forcing them to share know-how.

Chinese direct investment in the European Union jumped by 77 percent last year to more than 35 billion euros ($38 billion), compared to 2015, while EU acquisitions in China fell for the second consecutive year, according to the Rhodium Group.

That illustrates the imbalance in investment between the world’s two largest markets, including, on the EU side, Britain, where the government is pinning its hopes on a free trade deal with China as it splits from the rest of the bloc.

An investment treaty would go some way to quiet criticism in Europe of such unequal ties but the talks, which started in 2013, require Beijing to open sensitive sectors like technology and financial services to private firms free of the state.

China’s central bank governor Zhou Xiochuan indicated on Sunday a substantial number of sectors would be opened up while adding “we want China to get fair treatment overseas”.

One Chinese diplomat said the European Union was being “too ambitious”. Formal mention of the proposed China-EU treaty has been struck from Premier Li Keqiang’s work report this year, which diplomats said risked confusing Beijing’s message.

“We had hoped President Xi’s speech in Davos would elevate us from rhetoric about equal treatment toward a tangible commitment to walk the talk,” said Joerg Wuttke, president of the European Union Chamber of Commerce in China.

Duncan Freeman, a China expert at the College of Europe university in Belgium, said the treaty touched on the fundamentals of how the economy worked. “That makes it very, very difficult for the Chinese side to discuss,” he said.

(Additional reporting by Michael Martina in Beijing; editing by Philippa Fletcher)

Austria says wants exemption from EU migrant relocation system

Migrants wait to cross the border from Slovenia into Spielfeld in Austria, February 16, 2016. REUTERS/Leonhard Foeger

VIENNA (Reuters) – Austria will seek an exemption from having to accept more asylum-seekers under an EU relocation system, it said on Tuesday, arguing that it has already taken in its fair share during Europe’s migration crisis.

The move is a new blow to the system that would cover only a fraction of migrant arrivals to the European Union and that has barely been implemented because of opposition led by Eastern European countries including Poland and Hungary.

It also coincides with a tightening of security and immigration rules by the centrist coalition government in Austria, where a wave of arrivals that began in 2015 helped fuel a rise in support for the far-right Freedom Party, which still leads in opinion polls.

“We believe an exception is necessary for Austria for having already fulfilled its obligation. We will discuss that with the European Commission,” Chancellor Christian Kern told reporters after a weekly cabinet meeting. “We will send a letter as quickly as possible and then begin discussions.”

Fewer than 14,500 asylum-seekers have been relocated from Greece and Italy, the first EU countries that many refugees and migrants from the Middle East and Africa set foot in, under the two-year EU plan that was supposed to cover 160,000 people and which expires in September.

“We are of the opinion … that the people in question here already sought an asylum application or arrived in Italy or Greece,” Kern said. “We must check whether we have already fulfilled our quota and discharged our obligation.”

Austria took in roughly 90,000 asylum seekers in 2015, more than 1 percent of its population. More than a million migrants arrived in Germany that year, most of them having passed through Austria after crossing the Balkans from Greece.

Austria has repeatedly called on other EU countries to take their fair share, and has even backed the idea of financial penalties for those that do not.

The Commission granted Austria a temporary exception because of the large number of people it had taken in, but that has since expired.

“Austria is now expected to fulfill its legal obligation … to start relocating,” Commission spokeswoman Natasha Bertaud said.

The government has been seeking to erode support for the Freedom Party with a series of law-and-order measures and stricter immigration rules.

An “integration bill” agreed in cabinet on Tuesday would ban face-veils in public places and oblige unemployed refugees to perform jobs “of public utility” for no pay beyond their normal benefit payments.

(Reporting by Francois Murphy; additional reporting by Waverly Colville in Brussels; Editing by Catherine Evans and Robin Pomeroy)

EU says summons Turkish ambassador over Erdogan comments

Turkish President Tayyip Erdogan makes a speech during a meeting in Istanbul, Turkey, March 19, 2017. REUTERS/Murad Sezer

BRUSSELS (Reuters) – The European Commission said on Thursday it had summoned the Turkish ambassador to explain comments by President Tayyip Erdogan that Europeans would not be able to “walk safely on the streets” if they kept up their current attitude toward Turkey.

Turkey’s relations with the European Union have become particularly strained after two member states canceled planned campaign rallies on their territory by Turkish ministers ahead of an April 16 referendum on boosting Erdogan’s powers.

Germany and the Netherlands cited security concerns for their decision, but Erdogan has accused them of using “Nazi methods” and of trampling on free speech.

On Wednesday Erdogan said: “If Europe continues this way, no European in any part of the world can walk safely on the streets. Europe will be damaged by this. We, as Turkey, call on Europe to respect human rights and democracy.”

The Commission, the EU’s executive arm, is seeking an explanation from Turkey’s envoy to the 28-nation bloc, a spokeswoman said.

“On these specific comments, we have actually asked the Turkish foreign delegate to the EU to come to the EEAS (the Commission’s foreign policy service) today for a meeting,” the spokeswoman said.

Turkey’s mission to the EU had no immediate comment.

(Reporting by Gabriela Baczynska and Waverly Colville; Editing by Robin Emmott and Gareth Jones)

Erdogan says Bulgaria’s pressure on Turks ‘unacceptable’

Turkish President Tayyip Erdogan makes a speech during a meeting in Istanbul, Turkey, March 19, 2017. REUTERS/Murad Sezer

ANKARA (Reuters) – Turkish President Tayyip Erdogan slammed Bulgaria on Thursday for “putting pressure” on expatriate Turks living there ahead of a parliamentary election amid rising tension between the two neighbors.

Bulgaria votes in parliamentary elections on Sunday. Last week, its caretaker government summoned Turkey’s envoy to Sofia and also recalled its ambassador to Turkey for consultations.

Prime Minister Ognyan Gerdzhikov said this was to “prevent any attempts by Turkey to influence an election”.

Bulgaria also expelled a Turkish citizen and banned two others from entering the country, after reports a Turkish minister had campaigned for the DOST party that represents Bulgarian Turks, the country’s largest ethnic minority.

“I am calling on Bulgaria. I am calling to our kin and brothers there … It seriously upsets us to see and hear that pressure is being exerted there,” Erdogan said at a conference in Ankara.

Bulgaria’s ethnic Turks are estimated to total more than half a million in a total population of 7.2 million. More than 400,000 Bulgarian nationals live in Turkey, most of them Bulgarian Turks descended from Ottoman-era Turkish settlers in the Balkans.

“On the one hand you say democracy, on the other you are putting pressure on Turks. This is unacceptable. On the one hand you talk of the EU legal acquis, on the other you do the exact opposite. This cannot be,” Erdogan said, using the European Union’s term for its body of existing laws.

Bulgaria called Sunday’s early parliamentary elections after former Prime Minister Boiko Borisov resigned in November following his party’s loss in presidential polls.

Erdogan’s comments come on the heels of an escalating row between Turkey and its European allies over the barring of campaigning among Turkish expatriates in Germany and the Netherlands to drum up support for a referendum in April that would increase his powers.

Erdogan has angered the Germans and Dutch after repeatedly accusing his them of “Nazi methods” over the bans, leading to a sharp deterioration in ties with the European Union, which Turkey still officially aspires to join.

(Reporting by Tuvan Gumrukcu; Editing by Ece Toksabay and Tom Heneghan)

EU leaders to meet for special Brexit summit on April 29: EU’s Tusk

European Council President Donald Tusk takes part in a news conference after being reappointed chairman of the European Council during a EU summit in Brussels, Belgium, March 9, 2017. REUTERS/Yves Herman

By Waverly Colville

BRUSSELS (Reuters) – The European Union’s 27 leaders will meet on April 29 to agree their negotiating lines for Brexit talks after London sends in a formal notification that it wants to leave the bloc, the chairman of the summit, Donald Tusk, said on Tuesday.

The meeting is a necessary step before the negotiations between Britain and the 27 remaining EU states can start formally. London said on Monday it would send in its exit notification on March 29.

“In view of what was announced in London yesterday, I’d like to inform you that I will call a European Council on Saturday, the 29th of April, to adopt the guidelines for the Brexit talks,” Tusk told reporters.

“You know I personally wish the UK hadn’t chosen to leave the EU, but the majority of British voters decided otherwise. Therefore we must do everything we can to make the process of divorce the least painful for the EU.”

The unprecedented talks are due to run for two years, though many diplomats and officials admit it would probably take longer.

“Our main priority for the negotiations must be to create as much certainty and clarity as possible for all citizens, companies and member states that will be negatively affected by Brexit, as well as our important partners and friends around the world,” Tusk added.

(Writing by Jan Strupczewski and Gabriela Baczynska)

Alabama waits for U.S. verdict on bird flu; importers limit trade

By Tom Polansek

CHICAGO (Reuters) – U.S. trading partners on Friday limited shipments of poultry from Alabama, a top producer of chickens for meat, over bird flu concerns as the state’s wait for federal confirmation of two suspected cases stretched past a week.

The European Union, Kazakhstan and French Polynesia restricted shipments from Alabama counties with presumed cases of the disease, according to the U.S. Department of Agriculture’s website. The moves came a day after the state reported the agency’s national animal-health laboratories had confirmed a separate case of bird flu there.

Belarus blocked shipments from the entire state.

Alabama officials and poultry producers have been waiting since March 8 for the National Veterinary Services Laboratories (NVSL) to confirm the two suspected cases, which involve a commercial chicken farm and a backyard flock, according to the state. The facility in Ames, Iowa, is the only one in the United States that officially confirms cases of avian flu.

Swift confirmation is important for U.S. trading partners, some of which restrict shipments from geographic areas with infected flocks, and for state officials, who want to know which strain of the virus they are battling.

Highly pathogenic, or lethal, bird flu led to the deaths of about 50 million birds, mostly egg-laying hens, in the United States in 2014 and 2015.

Another widespread outbreak could be a financial blow for poultry operators, such as Tyson Foods Inc or Pilgrim’s Pride Corp, because it could kill more birds or require flocks to be culled.

The national labs must determine the strain and pathogenicity of the disease in order to officially confirm an infection, according to the USDA. The process often takes just a day.

A rapid test can be made when poultry samples contain sufficient genetic material, USDA spokeswoman Lyndsay Cole said on Thursday. But the samples from Alabama’s two suspected cases contained low levels, meaning scientists had to start a testing process that can take 14 days, she said.

Tests by a USDA-approved lab in Alabama and the national labs have already identified the H7 subtype of the virus from samples in the two suspected cases, she said.

“Our department respects the science behind the testing and is patiently waiting for accurate results,” said Amy Belcher, spokeswoman for Alabama’s agriculture department.

Alabama authorities presume the suspected cases are not highly lethal, or pathogenic, bird flu because the animals did not show signs of being sick. Still, officials have been checking birds at nearby farms for infections and the owners of the suspect flocks culled the birds, according to Alabama’s state veterinarian.

The United States must alert the World Organisation for Animal Health (OIE) if Alabama’s suspected cases are confirmed as positive, a step that could trigger more trade restrictions.

The OIE said “it is more important for the laboratory to be sure of its analysis than to be fast with it.”

(Additional reporting by Sybille de La Hamaide in Paris; Editing by Matthew Lewis)

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)