France’s government faces nationwide protests over labor reform

By Brian Love

PARIS (Reuters) – France’s government faced nationwide protests and a no confidence vote in parliament on Thursday after opting to bypass widespread opposition and impose labor reforms that will make hiring and firing easier.

As crowds gathered in cities across France for another day of demonstrations, the CGT labor union called for weekly rolling strikes at the SNCF state rail company from Tuesday night until Friday morning.

Prime Minister Manuel Valls’ Socialist administration was expected to survive the confidence vote.

But a series of strikes and waves of street protests that have shown no sign of easing since they began in late March suggest popular discontent over a reform that pollsters say three out of four people oppose is becoming more entrenched.

“It’s time to move up a gear,” Philippe Martinez, head of the CGT union, said. The main objection to the reform from unions is that it would allow firms to adopt in-house terms on pay and conditions instead of complying with national standards.

The official reason for the rail strike call is a standoff with management over conditions, but its timetable dovetails with the broader protests against government policy.

As crowds gathered in cities across France, government spokesman Stephane Le Foll said there was no question of withdrawing the reform.

But it has left an already deeply unpopular President Francois Hollande, who narrowly survived a rebellion by dissenters in his own party on Wednesday, in an uncomfortable position a year from elections.

The reform is also under fire from a rolling youth protest movement known as Nuit Debout, or ‘Night Uprising’.

Since the protests began, several hundred police have been injured in clashes, often with hooded youths hurling stones and petrol bombs. On Thursday, news television channels showed footage of secondary-school pupils blocking schools entrances with garbage bins.

The interior ministry advised motorists to stay away from central Paris ahead of an afternoon march and also reported traffic halted by road blockages in some places.

Paris Mayor Anne Hidalgo, a prominent Socialist, added her voice to the dissenters, declaring on Europe 1 radio: “This law does just nothing for social justice.”

Hollande has several other problems piling up.

Media speculation is rife that his youthful economy minister Emmanuel Macron could run for president in the election scheduled for May 2017.

His government has also been caught up in a controversy over sexual harassment in the corridors of power.

After the resignation a politician accused of harassing female colleagues, Finance Minister Michel Sapin, a close Hollande ally, on Wednesday admitted behaving inappropriately toward a female journalist.

(Reporting By Brian Love; Editing by Andrew Callus and John Stonestreet)

U.S. Bullet train proposals shun public funds, favor private cash

China Railway High-speed Harmony bullet trains are seen at a high-speed train maintenance base in Wuhan

By Robin Respaut

(Reuters) – It took years of lawsuits and political battles for California to finally break ground last year on the nation’s first bullet train, which aims to connect San Francisco to Los Angeles by 2029.

High-speed rail advocates had hoped the line, supported by more than $13 billion in state and federal money, would inspire similar government-financed projects. Instead, its many delays have left rail groups wary of accepting public funds for projects they are proposing in three other states.

Companies in Texas, Minnesota and Nevada all plan to tap private cash from investors globally, with help from foreign train makers and governments eager to export train technology. The projects would rely on partnerships with Japanese or Chinese firms that face saturated train markets at home.

“The United States is the Holy Grail of deployment for Japan, China, France, Germany and Spain,” said Tim Keith, Texas Central CEO.

California’s example shows that taking taxpayer money opens the door to political and legal challenges that can drag out planning, bidding and approvals for years, private rail advocates said. Companies now see a quicker – even cheaper – path by largely avoiding such headaches.

“All the rules relating to public engagement start the day you take public funding,” said Wendy Meadley, chief strategy officer for North American High Speed Rail Group’s project in Minnesota. With private financing, she said, opponents “can’t make thousands of public records requests and run the project over.”

The company said last year it would seek money from Chinese investors. Now, it said it is considering two foreign partners for the $4.2 billion project, which seeks to connect the twin cities of Minneapolis and St. Paul to the internationally renowned Mayo Clinic in Rochester, Minnesota, by 2022.

Texas Central is paying for engineering studies with $75 million from Texas investors, $40 million from a state-backed Japanese development fund and about $130 million in design work from two firms. The Dallas-to-Houston rail line is projected to cost $12 billion and be completed by 2021.

In Nevada, privately financed XpressWest plans to link Las Vegas to Southern California. Started by Las Vegas developer Marnell Companies, the company formed a joint venture last fall with a consortium of Chinese firms, infusing $100 million into the project expected to break ground as soon as this year.

XpressWest officials declined to comment.

GOVERNMENT JUMPSTART

Some experts remain skeptical that bullet trains can work without government money to finance initial legs of construction.

Rail lines are generally profitable once in operation, said Jim Steer, director of UK-based high-speed rail research organization Greengauge 21. But operating profits are unlikely to be enough to repay massive construction costs.

“No private party is actually going to stump up the kind of money needed to create these things,” said Steer.

Supporters of the new rail lines said investors can expect solid returns based on ticket sales and profits from high-end real estate developments near stations.

Current economic trends also make private financing for infrastructure projects easier to secure. Interest rates at historic lows have created global demand for stable, long-term investments, igniting interest in infrastructure projects from banks and major investors, such as pension funds.

The number of institutional investors in infrastructure, such as roads, airports and rail, more than doubled since 2011, according to Preqin, an alternative investments research firm.

“There’s a lot of money swimming around the world that doesn’t know where to go,” said Dr. Alexander Metcalf, president of TEMS, Inc., a transportation consulting firm. “We’ve seen huge increases in institutional money that is willing to go into transportation.”

Longstanding U.S. skepticism of expensive train projects does not necessarily extend to foreign investors, Meadley said.

“People outside of this country believe this will happen more than Americans believe this will happen,” she said.

POLITICAL PERILS

The U.S. is decades behind Europe and Asia in building fast trains.

In the early 1990s, French and German companies made plays to construct a high-speed network across Texas. But the project relied in part on taxpayer money, and the proposal collapsed when local political support waned.

Texas train officials now see private financing as the faster, cheaper – and only – avenue. If their project relied on public subsidies, “we’d end up pulling the plug,” said Robert Eckels, a director at Texas Central.

Project officials say they have avoided U.S. federal funding in part because it includes a requirement that American workers manufacture the trains – even though no such U.S. factory currently exists.

Since 2009, the government has spent $10 billion to improve passenger rail service in the U.S. California was the only recipient constructing a high-speed rail line, and the money will only go so far. The state will likely need private money to finance much of the project’s estimated $64 million cost.

State rail officials overseeing the California project, considered the most ambitious planned in the U.S. and the farthest along, say there’s growing interest from foreign governments and international firms to finance the second leg to Los Angeles.

In February, the state announced the opening of the train’s first leg, a 250-mile line from the rural Central Valley to Silicon Valley, would be pushed back by three years to 2025.

The progress has been measured in decades rather than years. California Governor Jerry Brown first signed legislation to study high-speed rail during a previous tenure in office – in 1982.

“Everything big runs into opposition,” Brown said at the rail line’s groundbreaking in January 2015.

(Additional reporting by Brenda Goh in Shanghai and Tim Kelly in Tokyo; Editing by Brian Thevenot)

EU proposes scheme to share out asylum seekers

Migrants line up to receive personal hygiene goods distributed by the United Nations High Commissioner for Refugees (UNHCR), outside the main building of the disused Hellenikon airport

By Gabriela Baczynska

BRUSSELS (Reuters) – The European Commission proposed a system to distribute asylum seekers across the EU on Wednesday that aims to ease the load on states like Greece and Italy but drew immediate condemnation from governments in Eastern Europe.

The European Union executive published legislative proposals to reform the so-called Dublin system of EU asylum rules that includes a “fairness mechanism” under which each of the 28 states would be assigned a percentage quota of all asylum seekers in the bloc that it would be expected to handle.

The quotas would reflect national population and wealth and, if a country found itself handling 50 percent more than its due share, it could relocate people elsewhere in the bloc. States could refuse to take people for a year — but only if they paid another country 250,000 euros per person to accommodate them.

“There is no a la carte solidarity in this Union,” First Vice President Frans Timmermans told reporters. “This is a way to be able to show solidarity in a situation where … you are not able to take the refugees which were allocated to you.”

But at a meeting in Prague, ministers from Poland, Hungary and the Czech Republic all repeated their opposition to the idea of relocation: “It makes no sense, it violates EU member states’ rights,” Polish Interior Minister Mariusz Blaszczak told reporters. Hungary’s foreign minister called it “blackmail”.

A two-year emergency relocation scheme was set up last year as Greece struggled to cope with the chaotic arrival of nearly a million people, many of them Syrian refugees, most of whom reached Germany. It was agreed over the furious objections of several central and eastern states, two of whom, Hungary and Slovakia, are contesting the quota system in the EU courts.

In fact, only 1,441 asylum seekers have been relocated out of the 160,000 allowed for under the current temporary scheme.

The proposals, which also include measures to speed up the process of handling asylum claims and tighter controls on the movements of migrants themselves, need backing from governments and the European Parliament — a process that officials expect to be an uphill battle and involve many amendments.

Germany, the bloc’s main paymaster and destination for the bulk of migrants crossing the Mediterranean, has pushed hard for a permanent relocation system and has voiced frustration with the refusal of governments in the east who benefit the most from EU subsidies to take in asylum seekers.

Poland, Hungary and other formerly communist states say immigration, especially from the Muslim cultures of the Middle East, would disrupt their homogeneous societies. Governments also object to paying as an alternative to taking people in.

A similar proposal last year to set a payment of 0.002 percent of GDP was not taken up in the temporary scheme. The Commission did not issue its quota figures. Last year’s tables gave Germany a roughly 18 percent share, France 14 percent, Poland 5.6 percent and Hungary 1.8 percent.

“CONTROVERSIAL”

Any reform of the system, from which Britain, Ireland and Denmark are exempt, will require majority approval by EU governments. But senior officials say EU leaders will try to avoid forcing a deal through over strong minority objections, as happened with the temporary relocation scheme last September.

Even the authors of the proposal admit it is “sensitive” and “controversial” but hope it bridges diverging expectations from member states, EU sources said.

Splits between east and west, north and south over migration have posed one of the biggest challenges the European Union has faced and leaders’ main hope is that a new deal with Turkey to hold down the numbers arriving can take the heat out of a debate that has seen nationalist parties surge in polls across Europe.

Italy has led a push for reform of a Dublin system that gives responsibility for handling asylum claims to the first country migrants arrive in. The Commission last month floated a possibility of scrapping that in favor of a central EU system but has now favored the relocation system.

Chaotic movements of migrants, including many allowed by Italy and Greece to head north without being registered, have thrown the bloc’s cherished Schengen system of open borders into disarray, with governments putting up new barriers to travel.

EU officials hope that the deal with Turkey, from where the bulk of 1.3 million people reached Europe last year, will stem the flow and allow the Union to regain control of its external borders and hence restore order in the Schengen area.

Also on Wednesday, Brussels was expected to confirm a lifting of visa restrictions on Turks as part of the deal with Ankara. The EU is offering to take in refugees directly from Turkey, which hosts 2.7 million Syrians, and such resettlements would be taken into account in countries’ quotas for relocation.

(Editing by Alastair Macdonald)

Iran, France concerned with Syria violence

Residents inspect damages after an airstrike on the rebel held al-Maysar neighborhood in Aleppo

By Tom Perry, John Irish and Bozorgmehr Sharafedin

BEIRUT/PARIS/DUBAI (Reuters) – France and Iran voiced concern over escalating violence in Syria on Tuesday, echoing warnings from the United States and Russia as fighting near the city of Aleppo put more pressure on a fragile truce agreement.

The already widely violated “cessation of hostilities” agreement brokered by Russia and the United States has been strained to breaking point by an upsurge in fighting between Syrian government forces and rebels near Aleppo.

The escalation underlines the already bleak outlook for peace talks set to reconvene this week in Geneva. The United Nations says the talks will resume on Wednesday. The government delegation has said it is ready to join the talks from Friday.

With President Bashar al-Assad buoyed by Russian and Iranian military support, the Damascus government is due to hold parliamentary elections on Wednesday, a vote seen by Assad’s opponents as illegitimate and provocative.

Iran said an increase in ceasefire violations could harm the political process a day after Russia said it had asked the United States to stop a mobilization of militants near Aleppo, Syria’s biggest city until the conflict erupted in 2011.

Iranian Deputy Foreign Minister Hossein Amir-Abdollahian, speaking after a meeting with U.N. Special Envoy Staffan de Mistura in Tehran, blamed the “increasing activities of armed groups” for the violations.

France, which backs the opposition, also expressed concern, but blamed the other side. “It warns that the impact of the regime and its allies’ offensives around Aleppo and Eastern Ghouta are a threat to the cessation of hostilities,” government spokesman Romain Nadal said. The Eastern Ghouta is an opposition-held area near Damascus.

Syria’s civil war has killed more than 250,000 people, created the world’s worst refugee crisis, allowed for the rise of Islamic State and drawn in regional and international powers. The intervention of Russia swung the war in Assad’s favor.

WASHINGTON “VERY, VERY CONCERNED”

The United States, which also backs rebels fighting Assad, on Monday said it was “very, very concerned” about increased violence and blamed the Syrian government for the vast majority of truce violations.

Both the government and a large number of rebel groups had pledged to respect the cessation of hostilities agreed in February with the aim of allowing a resumption of diplomacy towards ending the five-year-long war. Jihadist groups including the Nusra Front and Islamic State were not part of the deal.

A senior official close to the Syrian government said the truce had effectively collapsed.

“On the ground the truce does not exist,” said the official, who is not Syrian and declined to be named because he was giving a personal assessment. “The level of tension in Syria will increase in the coming months.”

The eruption of fighting on the front lines south of Aleppo marks the most serious challenge yet to the truce.

The Syrian Observatory for Human Rights, a British-based organization that tracks the war, said dozens of government fighters had been killed in a big offensive to take the town of Telat al-Eis near the Aleppo-Damascus highway on Tuesday.

A rebel fighting in the area said the assault launched at dawn was backed by Russian air strikes and Iranian militias, adding that the attackers had suffered heavy losses. The Syrian military could not be reached for comment.

Iranian Revolutionary Guards and Lebanon’s Hezbollah have both deployed in the southern Aleppo area in support of the government, while the Nusra Front is also fighting in close proximity to other rebels.

The Syrian prime minister was quoted on Sunday as saying government forces were preparing a major operation in the region with Russian support.

Further south in Homs province, Russia said one of its attack helicopters had crashed in the early hours of Tuesday, killing both pilots. It said the helicopter had not been shot down and the cause of the crash was being investigated.

“PROVOCATIVE” ELECTION

De Mistura, speaking in Tehran, said he and Amir-Abdollahian had agreed on the importance of the cessation continuing, that aid should reach every Syrian and that “a political process leading to a political transition is now crucially urgent”.

De Mistura, whose two predecessors quit, has said he wants the next round of Geneva talks to be “quite concrete” in leading towards a political transition.

Ahead of the first round of talks, Damascus had ruled out any discussion of the presidency, calling it a red line.

A senior Iranian official on Saturday rejected what he described as a U.S. request for Tehran’s help to make Assad leave power, saying he should serve out his term and be allowed to run in a presidential election “as any Syrian”.

Some members of the main Syrian opposition alliance, the High Negotiations Committee (HNC), arrived in Geneva on Tuesday, and U.N. spokesman in Geneva Ahmad Fawzi said the talks were expected to begin on Wednesday.

De Mistura is working according to a U.N. Security Council resolution approved in December that sets out a political process including elections after the establishment of “credible” governance and the approval of a new constitution.

The Syrian government says it is holding Wednesday’s elections in line with the existing timetable that requires a vote every four years. Russia has said the vote does not go against the peace talks and is in line with the constitution.

French President Francois Hollande last month, however, said the idea was provocative and “totally unrealistic”.

(Additional reporting by Tom Miles in Geneva, and Samia Nakhoul and Laila Bassam; Writing by Tom Perry; Editing by Peter Millership and Giles Elgood)

U.S. frustration simmers over Belgium’s struggle with militant threat

By Mark Hosenball

WASHINGTON (Reuters) – Shortly after last November’s attacks on Paris by a Brussels-based Islamic State cell, a top U.S. counter-terrorism official traveling in Europe wanted to visit Brussels to learn more about the investigation.

When the official tried to arrange meetings, however, his Belgian counterparts were not welcoming, according to U.S. officials familiar with the events. The Belgians indicated it was a bad time to speak to foreign officials as they were too busy with the investigation, said the officials, who asked not to be identified.

Belgian officials declined to comment on the incident.

The brush-off was one small sign of mounting U.S. frustration over Brussels’ handling of its worsening Islamic militant threat.

Concern that the small European nation’s security and intelligence officials are overwhelmed — and that its coordination with allies falls short — have again come to the fore following the Islamic State-claimed attacks on Tuesday that killed at least 31 people.

Several U.S. officials say that security cooperation has been hampered by patchy intelligence–sharing by Brussels and wide differences in the willingness of different agencies to work with foreign countries, even close allies.

One U.S. government source said that when American investigators try to contact Belgian agencies for information, they often struggle to find which agency or part of an agency might have relevant information.

Belgium has ordered a sharp increase in security budgets following the Paris attacks, despite being under steady pressure to limit its debt levels under euro zone rules. The government has promised to recruit around 2,500 more federal police, who pursue major crimes, to make up for a shortfall of close to a fifth of the full-strength force of 12,500.

It also says it thwarted a major attack in January 2015, and is eager to cooperate with European and U.S. counterparts.

“These attacks show that more coordination with the United States is clearly desirable,” Guy Rapaille, the president of the committee that provides oversight of Belgium’s security and intelligence services, told Belgium’s state broadcaster RTBF.

“But you have to remember that big powers guard their intelligence very closely.”

U.S. officials acknowledge the recent Belgian efforts to step up funding and recruitment.

Yet they say Belgian security services are outmatched by the threat in a country that, per capita, has supplied the highest number of foreign fighters to Syria of any European nation.

“They’re way behind the ball and they’re paying a terrible price,” Rep. Adam Schiff, ranking Democrat on the House Intelligence Committee, told Reuters.

Asked on Wednesday whether Belgium was too complacent over the threat posed by Islamic militancy, State Department spokesman Mark Toner said:

“I want to stay clear of saying that Belgium was somehow caught by surprise or not aware. You know, we collaborate, we work with Belgium closely.”

Some U.S. counter-terrorism officials say much of the gap between Washington and Belgium — and some other European countries — is cultural. Europeans’ deeper commitment to personal privacy sometimes prevents or delays sharing of information such as travel data — that is taken for granted in the United States.

After the September 11, 2001 attacks, the U.S. government radically reshaped its counter-terrorism agencies. It broke down walls between law enforcement and intelligence authorities, and created new coordinating institutions such as the Director of National Intelligence and National Counterterrorism Center.

Belgium, by contrast, is a patchwork country divided between French and Dutch speakers and with multiple levels of government.

Belgian security chiefs have repeatedly complained that they cannot handle up to 900 home-grown Islamist militants, among the highest per-capita rates in Europe. Belgium does not divulge the exact number of personnel in its security services and military intelligence, but security experts say they appear under-resourced compared to European counterparts.

“Add to that the problem of two languages (French and Flemish), lack of Arabic speakers, and weak coordination between national and local government, you have a huge discrepancy between threat and response,” said former CIA official and White House advisor Bruce Riedel, now at the Brookings Institution.

(Additional reporting by David Brunnstrom and Jonathan Landay in Washington, Robin Emmott and Alastair Macdonald in Brussels; Writing by Warren Strobel; editing by Don Durfee and Stuart Grudgings)

Captured Paris attacks suspect ‘worth weight in gold’ to police, lawyer says

BRUSSELS (Reuters) – The only suspected participant in Nov. 13 Paris attacks to be captured alive has been cooperating with police investigators and is “worth his weight in gold”, his lawyer said on Monday.

Belgium’s Interior Minister Jan Jambon said the country was on high alert for a possible revenge attack following the capture of 26-year-old Salah Abdeslam in a flat in Brussels on Friday.

“We know that stopping one cell can …push others into action. We are aware of it in this case,” he told public radio.

French investigator Francois Molins told a news conference in Paris on Saturday Abdeslam had admitted to investigators he had wanted to blow himself up along with others at the Stade de France on the night of the attack claimed by Islamic State; but he later backed out.

Abdeslam’s lawyer Sven Mary said he would sue Molins for making the comment public, calling it a violation of judicial confidentiality.

Mary said Abdeslam was now fully cooperating with investigators.

“I think that Salah Abdeslam is of prime importance for this investigation. I would even say he is worth his weight in gold. He is collaborating. He is communicating. He is not maintaining his right to remain silent,” Mary told Belgian public broadcaster RTBF.

MORE OPERATIONS PLANNED?

As the only suspected participant or planner of the Paris attack in police custody, Abdeslam would be seen by investigators as a possible major source of information on others involved, in support networks, finance and links with Islamic State in Syria. There would also be urgent interest in finding out what further attacks might be planned.

Belgian prosecutors said in a statement they were looking for Najim Laachraoui, 25, using the false name of Soufiane Kayal. His DNA had been found in houses in Belgium used by the Paris attackers.

Belgian Foreign Minister Didier Reynders said on Sunday that Abdeslam may have been plotting more operations drawing on a weapons discovered in the Forest district of Brussels and a network of associates.

Jambon said he could not confirm that, but it was a possibility.

“After 18 months of dealing with this terrorist issue, I have learned that when the terrorists and weapons are in the same place, and that’s what we saw in Forest, we are close to an attack. I’m not saying it is evidence. But yes, there are indications,” he said.

Reynders said Belgium and France had so far found around 30 people involved in the gun and bomb attacks on bars, a sports stadium and a concert hall in the French capital.

(Reporting By Jan Strupczewski and Barbara Lewis; editing by Ralph Boulton)

France carries out biggest ever attack drill ahead of soccer championships

PARIS (Reuters) – France has staged a mock chemical weapons attack on a soccer “fan zone” as it prepares for the Euro 2016 soccer championships in June, less than a year after Islamist militants killed 130 people in attacks in and around the French capital.

More than a thousand police and firemen took part in the attack response drill in the southern city of Nîmes, the largest ever carried out in France.

The exercise was designed to simulate a chemical attack in a “fan zone”, a closed perimeter area where soccer fans will be able to monitor the competition on giant outdoor screens when not attending matches in one of the 10 stadiums.

A Reuters witness saw dozens of police and military officers taking part in the drill, some of them equipped with gas masks.

French anti-terrorism police arrested a group with Islamist militant ties on Wednesday, suspecting one of them may have been planning another attack in the capital.

“In Nîmes, it was about a chemical or bacteriological threat,” Interior Minister Bernard Cazeneuve was quoted as saying in daily newspaper 20 minutes.

“We don’t believe there is a genuine risk of this type of attack but we must envisage every hypothesis.”

It will be the third time that France hosted the UEFA European Championship after having been chosen for the 1960 inaugural tournament and the finals in 1984.

(Reporting by Matthias Blamont; Editing by Toby Chopra)

Fugitive from Paris attacks arrested in Brussels shootout

BRUSSELS (Reuters) – The most-wanted fugitive from November’s Paris attacks was arrested after a shootout with police in Brussels on Friday, Belgium’s prime minister said.

Charles Michel described the capture of 26-year-old French suspect Salah Abdeslam and two others as “a very important result in the battle for democracy”. French President Francois Hollande said he was confident they had links to Syria and to Islamic State which claimed the attacks that killed 130 people.

“The threat level is very high,” said Hollande, who was in Brussels for an EU summit. He added that it was now clear many more people had been involved in the Paris attacks on a sports stadium, bars and cafes and concert hall than had been realized.

Michel said Abdeslam was wounded — local media said he was shot in the leg — in the operation launched as EU leaders met on the other side of the city to discuss Europe’s migration crisis. U.S. President Barack Obama sent his congratulations.

Television footage showed armed security forces dragging a man with a sack on his head out of a building and into a car.

“We got him,” Belgian government minister Theo Francken said on Twitter.

Hollande said France wanted to extradite Abdeslam, who was born and raised in Brussels to a Moroccan immigrant family, and hoped he would yield more clarity about an operation mounted by Syria-based Islamic State in which all the known attackers died.

Several bursts of gunfire rang out earlier in the capital’s Molenbeek area – Abdeslam’s home neighborhood and the scene of past investigations into the Paris attacks – and police officers surrounded an apartment block there from around 4 p.m. (1500 GMT).

Two explosions were heard after the arrest, though it was unclear whether they were part of a new operation or the clear-up. Some four hours later, the main police presence had stood down but crime scene investigators were still at work.

There had long been speculation about whether Abdeslam had stayed in Belgium or managed to flee to Syria. Security services will be seeking information from Abdeslam on Islamic State plans and structures, his contacts in Europe and Syria and support networks and finance.

Hollande said he was sure Abdeslam, whose elder brother blew himself up at a Parisian cafe on Nov. 13, had also been in the city that night and had helped plan the attack.

FINGERPRINTS

Belgian police had found fingerprints belonging to Abdeslam at the scene of an apartment raided on Tuesday, prosecutors said.

The Belgian federal prosecutor’s office also said an Algerian killed during that earlier operation was probably one of the people French and Belgian investigators were seeking in relation to the attacks in Paris.

Public broadcaster RTBF said it had information that Abdeslam, whose elder brother blew himself up in Paris, was “more than likely” one of two men who police had said evaded capture at the scene before a sniper shot dead 35-year-old Belkaid as he aimed a Kalashnikov.

It said Belkaid was the man known to police as Samir Bouzid who has been sought since December when police issued CCTV pictures of him wiring cash from Brussels two days after the Paris attacks to a woman who was then killed in a shootout with police in the Paris suburb of St. Denis.

She was a cousin of Abdelhamid Abaaoud, a Belgian who had fought in Syria and is suspected of being a prime organizer of the attacks in which 130 people were killed. Both died in the apartment in St. Denis on Nov. 18.

France’s BFM television said the fingerprints were found on a glass in the apartment, where four police officers, including a Frenchwoman, were wounded when a hail of automatic gunfire hit them through the front door as they arrived for what officials said they had expected to be a relatively routine search.

Abdeslam’s elder brother was among the suicide bombers who killed themselves in Paris. The younger Abdeslam was driven back to Brussels from Paris hours later.

Belgian authorities are holding 10 people suspected of involvement with him, but there had been no report of the fugitive himself being sighted.

Investigators believe much of the planning and preparation for the November bombing and shooting rampage in Paris was conducted in Brussels by young French and Belgian nationals, some of whom fought in Syria for Islamic State.

The attack strained relations between Brussels and Paris, with French officials suggesting Belgium was lax in monitoring the activities of hundreds of militants returned from Syria.

Hollande and Michel took pains to exchange mutual compliments to their security services and cross-border cooperation.

Brussels, headquarters of the European Union as well as Western military alliance NATO, was entirely locked down for days after the Paris attacks for fear of a major incident there. Brussels has maintained a high state of security alert since then, with military patrols a regular sight.

(Additional reporting by Francesco Guarascio and Jan Strupczewski; Writing by Alastair Macdonald and Andrew Heavens; Editing by Ralph Boulton and Alastair Macdonald)

Algerian named as dead Brussels gunman, manhunt goes on

BRUSSELS (Reuters) – Belgian prosecutors on Wednesday named a 35-year-old Algerian as the man shot dead by police on Tuesday during a police raid on a Brussels apartment in the hunt for clues to bloody attacks in Paris last November.

Police found an Islamic State flag in the apartment used by Mohamed Belkaid and two others suspected of being with him after officers were met with a barrage of automatic weapons fire as they arrived to search the flat.

Belkaid, who was living in Belgium illegally and had a police record for theft but was not on security watchlists, was killed by a special forces sniper after a three-hour siege. A manhunt for the two other suspects continued on Wednesday.

The government held its alert status steady at Level Three, one step below the maximum.

The prosecutors said a radical Islamic text was found next to Belkaid’s body and a cache of ammunition was also discovered. It was not clear if he had any links to the Paris suspects.

Two people detained overnight on suspicion of links to the shootout in the suburb of Forest were released without charge.

Investigators believe much of the planning and preparation for the Nov. 13 shooting and bombing rampage in Paris that killed 130 people was conducted in Brussels by young French and Belgian nationals, some of whom fought as militants in Syria.

Ten people are being held in Belgian custody on a variety of charges relating to the four-month investigation, though prime suspects, including Salah Abdeslam, a brother of one of the Paris suicide bombers, are suspected of having fled the country.

SHOOTOUT

On Tuesday, six Belgian and French police officers arrived to search the flat and came under automatic fire through a door from at least two people barricaded inside. Four officers, one of them a Frenchwoman, were wounded, none very seriously.

Ministers said the police visit to the apartment had not been expected to provide much new evidence and that the presence of French officers did not imply a major break in the case.

Prime Minister Charles Michel said he was holding the state of alert steady after a meeting of security and intelligence chiefs in Belgium’s national security council .

Brussels, headquarters of the European Union as well as Western military alliance NATO, was entirely locked down for days shortly after the Paris attacks because of fears of a major incident there. The city has maintained a high state of security alert since then, with military patrols a regular occurrence.

Belgium, with a Muslim population of about 5 percent among its 11 million people, has Europe’s highest rate of citizens joining Islamist militants in Syria.

People living in the quiet neighborhood of Forest suffered hours of lockdown on Tuesday and voiced shock at the events.

Schoolboy Maxime, 11, was at home sick when he heard gunfire and helicopters and saw masked commandoes on a rooftop. “They had a huge weapon,” he said, adding he was “very, very scared”.

(Additional reporting by Miranda Alexander-Webber; Editing by Alastair Macdonald and Tom Heneghan)

Germany, France criticize Israel for seizing West Bank land

BERLIN/PARIS (Reuters) – Germany and France on Wednesday criticized Israel’s decision to appropriate large tracts of land in the occupied West Bank, saying the move violated international law and contradicted a two-state solution to the Israeli-Palestinian conflict.

Israeli Army Radio said on Tuesday the land was near the Dead Sea and the Palestinian city of Jericho.

Israel says it intends to keep large settlement blocs in any future peace agreement with the Palestinians. Palestinians, who seek to establish a state in the West Bank and Gaza Strip, fear Israeli settlement expansion will deny them a viable country.

“This decision sends a wrong signal at the wrong time,” the German Foreign Ministry said in a statement.

“Especially in the current tense situation, both parties in the Middle East conflict are called on to take steps for a de-escalation and to find ways that lead to an urgently needed resumption of peace negotiations,” it said.

In Paris, Foreign Ministry spokesman Romain Nadal said France was “extremely concerned” by the Israeli decision.

“Settlements constitute a violation of international law and contradict commitments made by Israeli authorities in favor of a two-state solution,” the spokesman said.

Palestinians have cited Israeli settlement activity as one of the factors behind the collapse of U.S.-brokered peace talks in 2014, and a surge of violence over the past five months has dimmed hopes negotiations could be revived any time soon.

Germany, which has forged close relations with Israel in the decades since the Holocaust, has repeatedly criticized Israel for its settlement plans.

“All people in Israel and Palestine have a right to live in peace and security. Only a clear political perspective for a sustainable two-state solution can guarantee this in the long term,” the ministry said.

Paris is lobbying for an international peace conference before May that would outline incentives and give guarantees for Israelis and Palestinians to resume face-to-face talks before August and try to end the decades-long conflict.

Palestinian chief negotiator Saeb Erekat on Tuesday called on the international community to press Israel to stop land confiscations. Most countries view Israeli settlement activity in the West Bank and East Jerusalem as illegal and an obstacle to peace.

Israel’s Peace Now movement, which tracks and opposes Israeli settlement in territory captured in the 1967 war, said the reported seizure of 579 acres represented the largest land confiscation in the West Bank in recent years.

(Reporting By John Irish in Paris and Michael Nienaber in Berlin; Editing by Janet Lawrence)