The Jim Bakker Show

Health agency reports U.S. babies with Zika-related birth defects

Mosquito under microscope, studying Zika

By Bill Berkrot

(Reuters) – Three babies have been born in the United States with birth defects linked to likely Zika virus infections in the mothers during pregnancy, along with three cases of lost pregnancies linked to Zika, federal health officials said on Thursday.

The six cases reported as of June 9 were included in a new U.S. Zika pregnancy registry created by the Centers for Disease Control and Prevention. The agency said it will begin regular reporting of poor outcomes of pregnancies with laboratory evidence of possible Zika virus infection in the 50 states and the District of Columbia.

Zika has caused alarm throughout the Americas since numerous cases of the birth defect microcephaly linked to the mosquito-borne virus were reported in Brazil, the country hardest hit by the current outbreak. The rare birth defect is marked by unusually small head size and potentially severe developmental problems.

The U.S. cases so far involve women who contracted the virus outside the United States in areas with active Zika outbreaks, or were infected through unprotected sex with an infected partner. There have not yet been any cases reported of local transmission of the virus in the United States. Health experts expect local transmission to occur as mosquito season gets underway with warmer weather, especially in Gulf Coast states, such as Florida and Texas.

The CDC declined to provide details of the three cases it reported on Thursday, but said all had brain abnormalities consistent with congenital Zika virus infection. Two U.S. cases of babies with microcephaly previously were reported in Hawaii and New Jersey.

The poor birth outcomes reported include those known to be caused by Zika, such as microcephaly and other severe fetal defects, including calcium deposits in the brain indicating possible brain damage, excess fluid in the brain cavities and surrounding the brain, absent or poorly formed brain structures and abnormal eye development, the CDC said.

“The pattern that we’re seeing here in the U.S. among travelers is very similar to what we’re seeing in other places like Colombia and Brazil,” Dr. Denise Jamieson, co-leader of the CDC Zika pregnancy task force, said in a telephone interview.

Authorities in Brazil have confirmed more than 1,400 cases of microcephaly in babies whose mothers were exposed to Zika during pregnancy.

Lost pregnancies include miscarriage, stillbirths and terminations with evidence of the birth defects. The CDC did not specify the nature of the three reported lost pregnancies, citing privacy concerns about pregnancy outcomes.

The CDC established its registry to monitor pregnancies for a broad range of poor outcomes linked to Zika. It said it plans to issue updated reports every Thursday intended to ensure that information about pregnancy outcomes linked with the Zika virus is publicly available.

The CDC said the information is essential for planning for clinical, public health and other services needed to support pregnant women and families affected by Zika.

“We’re hoping this underscores the importance of pregnant women not traveling to areas of ongoing Zika virus transmission if possible, and if they do need to travel to ensure that they avoid mosquito bites and the risk of sexual transmission,” Jamieson said.

(Reporting by Bill Berkrot; Editing by Will Dunham)

Islamic State to change tactics in coming months: CIA’s Brennan

WASHINGTON (Reuters) – The director of the U.S. Central Intelligence Agency, John Brennan, said on Thursday that the United States and its allies have made gains against Islamic State, but he expects the group to change its tactics to make up for lost territory.

“To compensate for territorial losses, ISIL (Islamic State) will probably rely more on guerrilla tactics, including high-profile attacks outside territory it holds,” Brennan testified to the Senate Intelligence Committee.

(Reporting by Patricia Zengerle; Editing by Paul Simao)

Housing, medical care support U.S. underlying inflation

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. consumer prices moderated in May, but sustained increases in housing and healthcare costs kept underlying inflation supported, which could allow the Federal Reserve to raise interest rates this year.

While another report on Thursday showed an increase in the number of Americans applying for unemployment benefits last week, the trend remained consistent with a healthy labor market. The data came a day after the Fed downgraded its assessment of the jobs market and gave a mixed view of the economy.

The Labor Department said its Consumer Price Index increased 0.2 percent last month, slowing from April’s 0.4 percent rise. Gasoline prices rose modestly and the cost of food fell.

In the 12 months through May, the CPI gained 1.0 percent after advancing 1.1 percent in April.

Stripping out the volatile food and energy components, the so-called core CPI, increased 0.2 percent after a similar gain in April. That took the year-on-year core CPI rise to 2.2 percent from 2.1 percent in April.

Economists polled by Reuters had forecast the CPI gaining 0.3 percent last month and the core CPI rising 0.2 percent.

The Fed has a 2 percent inflation target and tracks an inflation measure which is currently at 1.6 percent. The U.S. central bank on Wednesday kept interest rates unchanged and said it expected inflation to remain below its target through 2017.

While the Fed signaled it still planned two rate hikes this year, there was less conviction, with six officials expecting only a single increase, up from one in March. The Fed raised its benchmark overnight interest rate in December for the first time in nearly a decade.

The dollar extended losses against the yen on the data, while prices for U.S. government debt were little changed.

FOOD PRICES FALL

Last month, gasoline prices rose 2.3 percent after surging 8.1 percent in April. Food prices fell 0.2 percent, reversing the prior month’s increase.

Within the core CPI basket, housing and medical costs maintained their upward trend. Owners’ equivalent rent of primary residence rose 0.3 percent after rising by the same margin in April.

Medical care costs increased 0.3 percent after a similar gain in April. The cost of hospital services shot up 0.7 percent after rising 0.3 percent the prior month. Doctor visit costs rose 1.0 percent, but the cost of prescription medicine fell 0.4 percent after increasing 0.7 percent in April.

Apparel prices rose 0.8 percent. The cost of used cars and trucks dropped 1.3 percent, the biggest fall since March 2009. Prices for new motor vehicles fell 0.1 percent.

In a second report, the Labor Department said initial claims for state unemployment benefits increased 13,000 to a seasonally adjusted 277,000 for the week ended June 11.

The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, slipped 250 to 269,250 last week.

Jobless claims have now been below 300,000, a threshold associated with a strong job market, for 67 straight weeks, the longest streak since 1973. The Fed said on Wednesday “the pace of improvement in the labor market has slowed while growth in economic activity appears to have picked up.”

The U.S. central bank also noted that while the unemployment rate had declined, “job gains have diminished.”

But with job openings near record highs, both economists and Fed officials expect job growth to pick up after the economy added only 38,000 jobs in May, the smallest increase since September 2010.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci)

Islamic State-linked account posts photo purported to be Orlando nightclub shooter

Police and fire trucks in front of Pulse night club

CAIRO (Reuters) – A Twitter account associated with Islamic State on Sunday posted a photo purported to be Omar Mateen, identified by U.S. authorities as the shooter who killed at least 50 people in a massacre at a gay nightclub in Orlando, Florida.

“The man who carried out the Florida nightclub attack which killed 50 people and injured dozens,” the caption accompanying the photo read. There was no official Islamic State statement.

It was not possible to verify whether the picture was in fact of Mateen. Other Twitter accounts linked to Islamist militancy also carried photos of the same individual, and Islamic State supporters posted messages of praise for the attack.

(Reporting by Ali Abdelaty; Writing by Ahmed Aboulenein; Editing by Kevin Liffey)

Wendy’s says it finds more unusual card activity at restaurants

(Reuters) – U.S. burger chain operator Wendy’s Co <WEN.O> said it had discovered additional instances of unusual credit card activity at some of its franchise-operated restaurants, widening the scope of an earlier cyber attack on the company.

The company in January said it was investigating reports of unusual activity with payment cards used at some of its restaurants.

Wendy’s said it recently discovered a variant of a malware that was discovered and reported in May. The new malware was used to target a point-of-sales system that was earlier believed to be unaffected.

The company said the new variant of the malware had been disabled in cases where it was detected.

Wendy’s expects the number of franchise restaurants that will be impacted by the cybersecurity attacks is now “considerably higher” than the 300 restaurants already affected.

“To date, there has been no indication in the ongoing investigation that any company-operated restaurants were impacted by this activity,” Wendy’s said on Thursday.

The new discoveries are a result of the company’s continuing investigation into unusual credit card activity at its restaurants.

Large retailers such as Target Corp <TGT.N> and Home Depot Inc <HD.N> have been victims of security breaches in recent years.

(Reporting by Narottam Medhora in Bengaluru; Editing by Shounak Dasgupta)

U.S, Iraqi officials can’t confirm report Islamic State leader wounded

Iraqi security forces firing at Islamic State

BAGHDAD/FALLUJA (Reuters) – U.S. and Iraqi officials said on Friday they could not confirm a report by an Iraqi TV channel that Islamic State leader Abu Bakr al-Baghdadi had been wounded in an air strike in northern Iraq.

A spokesman for the U.S.-led coalition fighting the radical Islamist militants, Colonel Chris Garver, said in an email that he had seen the reports but had “nothing to confirm this at this time”.

Brett McGurk, the U.S. envoy to the coalition, told a daily briefing at the White House in Washington that there was no reason to believe that Baghdadi was not alive “even though we haven’t heard of him since late last year.”

“We presume that he’s still alive,” he added. “It’s really a matter of time for him.”

Kurdish and Arab security officials in northern Iraq said they also could not confirm the report.

Al Sumariya TV cited a local source in the northern province of Nineveh saying that Baghdadi and other Islamic State leaders were wounded on Thursday in a coalition air strike on one of the group’s command headquarters close to the Syrian border.

The channel has good connections with Shi’ite politicians and Iraqi forces engaged in the battle against Islamic State.

There have been several reports in the past that Baghdadi, whose real name is Ibrahim al-Samarrai, was killed or wounded after proclaiming himself caliph of all Muslims two years ago.

In the last audio message, posted at the end of December on Twitter accounts that had published Islamic State statements previously, Baghdadi said the air strikes carried out by Russia and the U.S.-led coalition had failed to weaken the group.

The ultra-hardline Sunni group is under increased pressure in both Iraq and Syria, and the territory under its control has shrunk significantly since 2014, limiting the potential for its leaders to move around or seek shelter.

The U.S. earlier this year announced an intensification of the war on Islamic State with more air strikes and more American troops on the ground to advise and assist allied forces.

The U.S.-led coalition has regularly flown raids out of Erbil, the capital of Iraq’s Kurdistan region, in operations aimed at killing and capturing Islamic State leaders.

A Kurdish intelligence official and an Arab from the Baaj area west of Mosul said the U.S.-led coalition had conducted such a raid there earlier this week. The coalition did not confirm this raid.

Kurdish Peshmerga forces are positioned in an arc around the north and east of Mosul while the Iraqi army is trying to capture Falluja, 50 km (30 miles) west of Baghdad.

The army’s elite Counter Terrorism Service was battling on Friday in al-Shuhada, a southern district of Falluja, a Reuters photographer reported from the scene.

Loud explosions and bursts of gunfire were heard from the district, while aircraft believed to belong to the U.S.-led coalition flew overhead.

Al-Shuhada marks the first advance of the army inside the built-up area of Falluja, after two weeks of fighting on the outskirts to complete the encirclement of the city.

The encirclement was completed with help from Iran-backed Shi’ite militias. They deployed behind the army’s lines and did not take part directly in the assault on the city to avoid inflaming sectarian feelings.

A government official said Islamic State militants are putting up a tough fight defending the city that stands as a symbol of the Sunni insurgency that followed the U.S. occupation of Iraq, in 2003.

Prime Minister Haider al-Abadi said the troops are progressing cautiously in order to protect tens of thousands of civilians trapped in Falluja.

The United Nations says 90,000 civilians may have remained in Falluja, under “harrowing” conditions with little access to food, water and healthcare, and no safe exit routes.

The insurgents have dug a network of tunnels to move around without being detected and planted thousands of mines and explosive devices to delay the army’s advance.

Finance Minister Hoshiyar Zebari said a week ago that the battle of Falluja “will take time”.

The Iraqi army is also massing tanks and troops south of Mosul, in preparation for an offensive planned later this year to retake the largest city under the control of the militants.

In Syria, Russian- and Iranian-backed Syrian government forces and U.S.-backed Syrian opposition and Kurds are separately trying to advance on Raqqa, the group’s capital in Syria.

(Reporting by Maher Chmaytelli and Isabel Coles; Additional reporting by Tim Gardner in Washington; Editing by Dominic Evans and Hugh Lawson)

Mexico, U.S. Canada to launch heroin fight at Three Amigos Summit

Paulo Carreno, Mexican deputy foreign minister in charge of North America, speaks during an interview in Mexico City

By Dave Graham and Ana Isabel Martinez

MEXICO CITY (Reuters) – Mexico, the United States and Canada will unveil a plan to combat increased opium poppy cultivation and heroin use across North America at a summit later this month, a senior Mexican official said on Thursday.

Leaders of the three nations are due to meet in Ottawa on June 29, amid growing concern about the rising North American death toll from opioids such as heroin and fentanyl, and a surge in poppy cultivation in Mexico by violent drug gangs.

In a phone call last month, U.S. President Barack Obama and his Mexican counterpart Enrique Pena Nieto agreed to intensify the fight against heroin production, and government officials say the problem has been under discussion for months.

Paulo Carreno, Mexican deputy foreign minister in charge of North America, said in an interview that Canada’s Prime Minister Justin Trudeau was also committed to the plan due to be launched at the so-called Three Amigos summit later this month.

“This isn’t just about destroying (plantations), it’s about finding solutions for people forced to cultivate poppies, and there will be an important announcement in this context at the summit on a new cooperation plan between the three countries to deal with problems that obviously concerns us all,” he said.

Carreno declined to offer details but said additional resources would devoted to all parts of the problem.

“To combating it, to eradicating it, but also to reducing demand significantly and addressing the social aspect,” he said.

Pena Nieto took office in December 2012 pledging to bring Mexico’s drug cartels to heel, but sickening gang violence has been a blight on his administration and cultivation of opium poppies used to make heroin has surged.

Between 2012 and 2015, the area under poppy cultivation in Mexico, which officials say is the most important supplier of heroin to the United States, rose from 10,500 hectares to 28,000 hectares, according to figures published by the White House.

At the same time, fatal heroin overdoses in the United States have risen steeply, with some 10,574 deaths reported in 2014, a rise of 26 percent from the previous year, according to the Centers for Disease Control and Prevention.

That figure is six times higher than the total in 2001, the U.S. National Institute on Drug Abuse says.

“Right now there’s a lot of concern here in the United States because we are suffering from a major, major heroin epidemic,” said Mike Vigil, a former head of global operations for the U.S. Drug Enforcement Administration.

A large part of the Mexican increase in cultivation has been in the violent southwestern state of Guerrero, where 43 trainee teachers were abducted by a drug gang and corrupt police in September 2014, then murdered, according to the government.

To cut gang violence, Guerrero’s governor has floated the idea of regulating poppy production for medicinal purposes, an option which the Mexican government has studied.

Speaking on condition of anonymity, one senior Mexican official said the United States was prepared to offer Mexico more material support to tackle heroin production.

However, a U.S. official said the two sides were still discussing which measures to adopt. One subject under discussion is finding alternative crops for opium poppy farmers to grow.

(Reporting by Dave Graham; Editing by Bernard Orr)

No constitutional right to concealed guns: U.S. appeals court

By Alex Dobuzinskis

LOS ANGELES (Reuters) – Firearm owners have no constitutional right to carry a concealed gun in public, a divided U.S. appeals court in California ruled on Thursday, upholding the right of officials to only grant permits to those facing a specific danger.

The decision by the 9th U.S. Circuit Court of Appeals, a victory for gun control advocates which sets a legal precedent in western states, was seen as unlikely to be reviewed by the U.S. Supreme Court in the near future.

The San Francisco-based court, in a 7-4 decision, found California’s San Diego and Yolo counties did not violate the Second Amendment of the U.S. Constitution, which protects the right to bear arms, when they denied some applicants a concealed firearm license.

“We hold that the Second Amendment does not protect, in any degree, the carrying of concealed firearms by members of the general public,” Judge William Fletcher wrote in a 52-page opinion.

Sheriffs in the two California counties had limited their permits to applicants showing “good cause” to be armed, such as documented threats or working in a wide range of risky occupations.

The ruling places the 9th Circuit Court in line with other U.S. appellate courts that have upheld the right of officials in the states of New York, Maryland and New Jersey to deny concealed carry applications in certain cases.

The U.S. Supreme Court in 2013, in the middle of a raging national debate on guns, declined to weigh in on whether firearm owners have a constitutional right to carry concealed guns.

The 9th Circuit Court’s opinion noted the Supreme Court had not answered the question of whether the Second Amendment ensures a right to carry firearms openly, as opposed to concealed under clothing.

In a dissenting opinion, Judge Consuelo Callahan wrote that her colleagues on the 9th Circuit had gone too far. “The Second Amendment is not a ‘second class’ amendment,” she wrote.

Under California’s concealed carry law, more than 70,000 residents or less than 1 percent of the state’s population had active permits last year, according to the Center for Investigative Reporting.

California Attorney General Kamala Harris applauded the ruling while Chuck Michel, president of gun rights group the California Rifle and Pistol Association, criticized it.

“This decision will leave good people defenseless, as it completely ignores the fact that law-abiding Californians who reside in counties with hostile sheriffs will now have no means to carry a firearm outside the home for personal protection,” Michel said in a statement.

If plaintiffs appeal, the Supreme Court may refrain from reviewing the case because other U.S. circuit courts have also upheld certain requirements for concealed carry permits, said University of California, Los Angeles, law professor Adam Winkler in an email.

The decision by the full 9th Circuit reversed a 2-1 decision in 2014 by a panel of the appellate court that found California residents have an inherent right to a concealed weapon for self defense.

(Reporting by Alex Dobuzinskis; Editing by Richard Chang and Tom Brown)

U.S. allies tighten grip around Islamic State stronghold in Syria

Syrian Democratic Forces manning anti-aircraft weapon

By John Davison and Ahmed Rasheed

BEIRUT/BAGHDAD – (Reuters) – U.S.-backed militia drew within firing distance of the last road into an Islamic State stronghold in northern Syria on Thursday, part of a wave of new offensives putting unprecedented pressure on the self-declared caliphate.

The effective encirclement of Manbij by a militia called the Syria Democratic Forces is part of an assault launched last week, backed by U.S. air power and American special forces, to seal off the last stretch of Syrian-Turkish frontier.

It marks the most ambitious advance by a group allied to Washington in Syria since the United States launched its military campaign against Islamic State two years ago.

Simultaneously, Russia is backing a separate advance by forces of the government of Syrian President Bashar al-Assad against Islamic State in another part of the country.

And in Iraq, at the opposite end of Islamic State territory, the Baghdad government has sent forces to try to storm the Islamic State bastion of Falluja, an hour’s drive from Baghdad.

Islamic State has also lost territory in recent weeks to Kurds in northern Iraq and anti-Assad rebels in Syria as its disparate enemies attack on a number of fronts.

But it demonstrated on Thursday it can still mount deadly attacks deep inside the territory of its foes. It claimed responsibility for two suicide bombings that killed at least 24 people in Baghdad, and was presumed to be behind a suicide bombing that killed a Western-backed rebel leader in southern Syria.

A five-year-old multi-sided civil war in Syria and a weak government in Iraq have made it impossible to wage a single coordinated campaign against the militants. But Washington and other powers hope this year will see the tide turn against Islamic State, which has ruled over millions of people in Iraq and Syria since declaring its caliphate in 2014.

SDF SEIZES ALL ROADS INTO MANBIJ

In Syria, Washington has long lacked capable proxies on the ground, but has found its first strong allies in the Syria Democratic Forces (SDF), formed last year by recruiting Arabs to join forces with a powerful Kurdish militia.

The SDF launched its new offensive last week against the city of Manbij, Islamic State’s main bastion near the Syria-Turkish border west of the Euphrates River.

The overall aim is to shut the Turkish-Syrian frontier, which has served for years as Islamic State’s only major route to the outside world for manpower and material, and more recently for followers returning to Europe to carry out attacks.

An SDF spokesman said on Thursday his group had reached the last road into Manbij from the west, having previously cut off supply routes from north, south and east.

“We have reached the road that links Manbij and Aleppo, from the west,” Sharfan Darwish, spokesman for the Syria Democratic Forces-allied Manbij Military Council, told Reuters.

A monitoring group, the Syrian Observatory for Human Rights, confirmed that the SDF had advanced to within firing distance of the western road, positioned within a kilometer of it, and were now in effective control of all routes into the city. Civilians in the city and surrounding countryside were fleeing.

Darwish would not comment on whether the SDF was planning an assault on the city itself. He told Reuters on Wednesday forces was poised to enter, but were being cautious due to the civilian presence there.

In southern Syria, where a range of anti-Assad rebel groups include Western-backed nationalists, one of the founders of a rebel alliance called the Free Syrian Army’s Southern Front was killed by a suicide bomber suspected to belong to Islamic State.

Saleem Bakour, a colonel in the Syrian army who defected to the rebels, had led rebels in battle against Islamic State fighters who pushed south after being driven out of the city of Palmyra by Russian-backed government forces in March.

“The martyr was one of the toughest leaders who fought Daesh (Islamic State). We are committed to fighting them to the end,” Southern Front spokesman Issam el-Rayyes said.

BAGHDAD BOMBINGS

In Iraq, Islamic State claimed responsibility for two suicide bombings that killed at least 24 people in Baghdad on Thursday. Such bombings have become frequent again in the capital in recent weeks, after months in which security there had improved despite Islamic State’s control of swathes of territory in the provinces.

The deteriorating security in the capital prompted Prime Minister Haider al-Abadi to order an assault on Falluja, Islamic State’s closest bastion to the capital, two weeks ago. It began in earnest last week with troops sweeping into southern rural districts, and they entered the built-up areas of the city for the first time this week.

The Iraq assault on Falluja has the support of U.S. air power, but veers from Washington’s battle plan, which called for the government to focus its forces on Mosul, Islamic State’s de facto Iraqi capital further north.

Falluja, where U.S. forces fought the heaviest battles of their own 2003-2011 occupation of Iraq, has long been a stronghold of Sunni Muslim insurgents opposed to the Shi’ite-led government in Baghdad.

Washington fears a sustained campaign in Falluja could bog down the army in hostile territory and delay the recapture of Mosul.

(Additional reporting by Suleiman al-Khalidi in Amman; writing by Peter Graff; editing by Andrew Roche)

U.S. may turn to Canada for help with new NATO force

NATO flag flies at the Alliance headquarters in Brussels during a NATO ambassadors meeting o

By Robin Emmott and Wiktor Szary

BRUSSELS/WARSAW (Reuters) – The United States could turn to Canada to help it establish a new NATO force in eastern Europe as a deterrent against Russia because it is struggling to win support from its European allies, diplomats say.

Despite its show of force with a military exercise across eastern Europe this month that involved more than 20 NATO and partner countries, the alliance is moving slowly in its efforts to build a rotating force of 4,000 troops on its eastern flank in Poland and the Baltics.

Only Britain and Germany have said they are willing to contribute, by providing a battalion of about 1,000 troops each. The United States will provide a third battalion, leaving NATO requiring one more country to provide a fourth.

“European allies have reasons why they can’t come forward. They’re thinly stretched, at home, in Africa, in Afghanistan. They just don’t have the money,” said a senior NATO diplomat involved in the discussions.

The reluctance of some European governments to help the military build-up, the biggest since the end of the Cold War, reflects internal doubts over whether the alliance should be more focused on combating militant groups and uncontrolled flows of migrants, mainly from the Middle East and North Africa.

“There are divisions within NATO,” said Sophia Besch, a European defense expert at the London-based Centre for European Reform think tank. “Some allies feel the focus should be on the south.”

Unity is crucial for NATO as Moscow and Washington accuse one another of intimidation close to the NATO-Russia border. NATO and Russia feel threatened by each other’s large military drills and are at odds over the crisis in Ukraine.

Any sense in the United States that Europe is unwilling to pay for its own defense could be damaging. U.S. President Barack Obama has suggested European powers were “free riders” during the 2011 Libya air campaign, and U.S. presidential candidate Donald Trump has accused them of not paying their fair share.

A senior Polish diplomatic source familiar with the negotiations said NATO would not allow the build-up to fail as it had already been announced, and because Russia might exploit it as a sign that NATO is unwilling to defend Poland.

“The summit in Warsaw will be President Obama’s last (NATO summit) and the U.S. wants it to be a success. It will ensure that the fourth framework country is found, possibly by leaning on Canada,” the source said. “Washington will bend over backwards here.”

“PERSISTENT” PRESENCE

Former communist states in NATO want to bolster its eastern defenses without stationing large forces permanently, worried since Russia’s 2014 annexation of Crimea from Ukraine that Moscow could invade Poland or the Baltic states in days.

Russian Foreign Minister Sergei Lavrov dismissed such an idea this week, saying he saw no threats in the region that would justify the area’s militarization.

Russia has also said the North Atlantic Treaty Organisation’s large-scale military exercise in eastern Europe undermines trust and security, and that it is concerned by the movement of NATO’s military infrastructure towards its border.

NATO defense ministers will next week formally agree on the plan for four battalions to be involved in the new force, part of a deterrent made up of forces on rotation and warehoused equipment ready for a rapid response force in case of attack.

That force includes air, maritime and special operations units of up to 40,000 personnel.

While saying they seek to avoid a return to the Cold War, when 300,000 U.S. service personnel were stationed in Europe, NATO generals describe it as a “persistent” but not a “permanent” presence to avoid breaking a 1997 agreement with Moscow limiting the deployment of combat forces.

Britain is likely to deploy to Estonia, Germany to Lithuania and the United States to Latvia. The United States will also supply an armored brigade to rove around the eastern flank. Only Poland appears to be left out at this stage.

While the United States is increasing its military spending in Europe to $3.4 billion in 2017, defense cuts in Italy, Belgium and France during the euro zone debt crisis complicate military planning.

France says it is focused on fighting militants in Syria and Mali, while there are also tensions with Poland’s new right-wing government, which is seeking to rescind on a $3 billion helicopter tender with Airbus <AIR.PA>, diplomats say. Airbus was provisionally selected by the previous administration.

Spain is leading NATO’s special “spearhead” force that can deploy in less than a week. Smaller countries such as Denmark say they do not have the resources to deploy a battalion.

Italy, a major buyer of gas from Russia — on which the European Union depends heavily for energy supplies — is wary of taking a tough line on Moscow.

Rome is also upset with central and eastern European states for not showing more willingness to take refugees fleeing North Africa across the Mediterranean and into Italy.

That leaves Canada, which has 220 armed forces personnel in Poland.

“Canada is actively considering options to effectively contribute to NATO’s strengthened defense and deterrence posture,” said a spokesperson for the Canadian Department of National Defence.

Polish Defence Minister Antoni Macierewicz told reporters in Warsaw on Thursday he expected any problems with the NATO plan to be “resolved in a positive manner.”

(Additional reporting by Sabine Siebold in Berlin and Pawel Sobczak in Warsaw, Editing by Timothy Heritage)

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