Knight Frank partners share £73m bonus pool

 

PARTNERS in the upmarket estate agent Knight Frank have landed a £73m payout after profits rose by 10 per cent in the last financial year, buoyed by foreign investors flocking to London’s luxury property market. The firm, which advises on both residential and commercial property deals, saw pre-tax profits rise to £101.9m in the year to March – its highest level since the credit crisis – while turnover increased seven per cent to £308.4m. “Equity rich buyers” seeking property in London helped boost the firm’s residential arm, which has instructed on deals including the sale of St John’s Wood Barracks in northwest London. The bonus pool is more than double the amount awarded in 2009, although it is now shared by more people as Knight Frank has extended its partnership. Nick Thomlinson, senior partner and chairman of Knight Frank, conceded he remained cautious about the outlook for the year ahead but said the group had strengthened its balance sheet and was focusing on growth in key markets like Asia. The firm also opened new offices in Dubai, South Africa, Austria and Switzerland.

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Failure to solve Europe's debt crisis will cost UK taxpayers billions

 

Britain has already injected £1.88bn into the European Investment Bank (EIB) and pledged another £35.7bn, equivalent to close to 2pc of UK GDP, to be drawn down as required. Although the EIB, which is the world's largest non-government borrower, ranks above other unsecured creditors, thanks to its "privileged relationship" status under the EU treaty, it could face huge losses in the event of a euro break-up. If the UK's stake in the European Bank for Reconstruction and Development (EBRD) is included then the total capital commitment for the taxpayer could rise by a further several billion pounds. On top of this the country could also be called on to stump up some of the cost of the EU's emergency funding facility the European Financial Stability Mechanism. "What the public doesn't realise is the quite simply staggering amounts of taxpayer money that has already been committed if things get significantly worse. This may be a doomsday scenario, but recent history has proven that many events thought extremely unlikely have a funny habit of coming to pass," said one London-based credit analyst. The EIB's most recent accounts reveal huge sovereign credit risk exposures to the endangered periphery states. Some €14.2bn of loans were made to, or guaranteed by, the Greek government. Another €7.7bn is backed by the Portuguese sovereign.

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full brutality of former Libyan tyrant Muammar Gaddafi's regime has been revealed in chilling video footage of prison torture sessions.

The full brutality of former Libyan tyrant Muammar Gaddafi's regime has been revealed in chilling video footage of prison torture sessions.

And the fallen dictatorship's former foreign minister, Musa Kusa - who was released by the British authorities six months ago after he defected to the UK in March - is facing fresh allegations that he was directly involved in the beating of political prisoners.

The footage - obtained by the BBC's Panorama programme - was reportedly shot at the notorious Abu Salim prison in Tripoli. It shows crouching inmates, blindfolded and wearing blue uniforms, being repeatedly whipped and kicked by interrogators. 

Brutal: A still from footage of a prisoner being whipped inside the Abu Salim prison during Gaddafi's rule

Last month the remains of more than 1,200 prisoners were found in a mass grave outside the prison's walls.  

 

 

More...

• Now the hunt for justice begins: Libya's secret files on Yvonne Fletcher, Lockerbie bombing and IRA weapons to be made public 'within months'
• Finally free: Libya officially declares its liberation after 42 years of brutal rule

     

 

The Panorama team tracked down Kusa to a luxury resort in Qatar during its investigation into his role in alleged war crimes. He declined to be interviewed for the programme.

Kusa was head of Gaddafi's intelligence agency from 1994 and a senior intelligence agent when PanAm flight 103 was blown up over Lockerbie.

Inhumane: An inmate is kicked in the head by one official as a prison guard looks on

 

Back in the spotlight: Torture suspect Musa Kusa defected to Britain in April but moved to Qatar just weeks later

The Boeing 747 jumbo jet was en route from London to New York when it exploded over the Dumfriesshire town, killing 243 passengers, 16 crew and 11 residents.

There have also been calls for Kusa to be quizzed in relation to the murder of PC Yvonne Fletcher, who was shot during a protest outside London's Libyan Embassy in 1984.

Kusa made a high-profile defection to Britain in March and was interviewed by police and Scottish prosecutors investigating the Lockerbie attack.

But within weeks he was allowed to leave the UK following an EU decision to lift sanctions against him, meaning he no longer faces travel restrictions or an asset freeze.

No comment: Panorama reporter Paul Kenyon is blocked by a bodyguard while attempting to question Kusa

The Foreign Office said Kusa was a 'private individual' who had been interviewed voluntarily.

But the ruling was condemned by one Tory MP who said Britain had become 'a transit lounge for alleged war criminals'.

And Britain is now under fresh pressure to interview Kusa in relation to the allegations.

Dr Jim Swire, whose 23-year-old daughter Flora died in the Lockerbie bombing, said that if anyone could offer any insight into the 'huge questions still unanswered' on Libya's role in Lockerbie, it would be Mr Kusa.

High profile: Kusa was less reluctant about speaking to the press following his defection to London earlier this year

He said: 'When I met Musa Kusa in Libya in 1991 it was clear to me he was the guy who was central to the Gaddafi administration.

'He could tell us just as much as Gaddafi about Lockerbie as he was at the core of the regime.

'He was a very, very key figure and we need answers as to why he was allowed to fly back. Any probing over his crimes should be done by the International Criminal Court.'

Pamela Dix, who lost her 35-year-old brother Peter in the atrocity, said she was 'incensed' after Mr Kusa was allowed to leave Britain in the first place.

She said: 'We cannot turn a politically pragmatic blind eye.

'I do not know what Musa Kusa knows or does not know about Lockerbie but he needs to come back to answer those questions.

'I condemn the attitude of the UK Government in the strongest possible terms. A political hands-off attitude is inappropriate.'

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The slain Libyan leader Moamer Kadhafi secretly spirited out of Libya and invested overseas more than $200 billion

 

The slain Libyan leader Moamer Kadhafi secretly spirited out of Libya and invested overseas more than $200 billion -- double the amount that Western governments previously had suspected, The Los Angeles Times reported late Friday. Citing unnamed senior Libyan officials, the newspaper said US administration officials were stunned last spring when they found $37 billion in Libyan regime accounts and investments in the United States. They quickly froze the assets before Kadhafi or his aides could move them, the report said. Governments in France, Italy, England and Germany seized control of another $30 billion or so. Earlier, investigators estimated that Kadhafi had stashed perhaps another $30 billion elsewhere in the world, for a total of about $100 billion, the paper noted. But subsequent investigations by US, European and Libyan authorities determined that Kadhafi secretly sent tens of billions more abroad over the years and made sometimes lucrative investments in nearly every major country, including much of the Middle East and Southeast Asia, The Times said. Most of the money was under the name of government institutions such as the Central Bank of Libya, the Libyan Investment Authority, the Libyan Foreign Bank, the Libyan National Oil Corporation and the Libya African Investment Portfolio, the paper pointed out. But investigators said Kadhafi and his family members could access any of the money if they chose to, the report said. The new $200 billion figure is about double the prewar annual economic output of Libya, The Times noted. Kadhafi, who lorded over the oil-rich North African nation for 42 years, met a violent end on Thursday after a NATO air attack hit a convoy, in which he was trying to escape from his hometown of Sirte. He survived the air strike but was apparently captured and killed after a shootout between his supporters and new regime fighters.

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Various stories about how Al Qathafi lived his last moments have emerged

 

An image captured off a cellular phone camera showing Muammar Al Qathafi during his last moments Various stories about how Al Qathafi lived his last moments have emerged with the most plausible being that the got out of a hole near a road not far from the city of Sirte only to find himself face-to-face with the same Libyan rebels whom he once called rats. Al Qathafi seems to have been wounded in a hole before he was captured by the rebels. Video shots aired by Al Soumoud TVchannel ishow Al Qathafi held by two rebels, one on each side of him as they helped him walk for a few steps. He had a bloodied face. He was then carried by fightes and placed over the front body of a yellow pick-up truck. Al Qathafi looked disoriented as blood covered most of his face. When he was laid down on the car a rebel seemed to put his hand on his seemingly wounded abdomen. According to Ibrahim Mahjoub, one of the rebels who played a part in the last moments of Al Qathafi's life, the former Libyan leader escaped to a farm and hid under a rain water hole under a road bridge. “He was already wounded,” Mahjoub said. Mahjoub went on to say: “We were above that small bridge when one of Al Qathafi troops carrying a green flag got out of the hole and said 'my master is inside'”. Moments later Al Qathafi himself got out of the hole saying, “what is going on?”  Mahjoub continued to say: “We held Al Qathafi by the hand. He was holding a gun in his hand, a small black bag and also a number of mascots.” Al Qathafi tried to escape out of Sirte towards the east on Wednesday night but his convoy faced heavy fire from the rebels and was forced to retreat to the city. He tried again to escape Thursday morning but his convoy was surrounded and bombed. There is a possibility that after his convoy came under fire Al Qathafi was injured he ran away for cover under the road only to be captured by the rebels and die as a result of the wounds he was carrying.

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Qaddafi Is Dead, Libyan Officials Say

 

Col. Muammar el-Qaddafi, the former Libyan strongman who fled into hiding after rebels toppled his regime two months ago in the Arab Spring’s most tumultuous uprising, was killed Thursday as fighters battling the vestiges of his loyalist forces wrested control of his hometown of Surt, the interim government announced. Multimedia Slide Show Muammar el-Qaddafi: 42 Years as the Face of Libya Photographs Battle for Libya Interactive Feature Timeline: Col. Muammar el-Qaddafi Related Battle for a Holdout City Stalls Healing in Libya (October 19, 2011) Times Topic: Libya — Revolution (2011) Related in Opinion  Nicholas D. Kristof, a Columnist for The New York Times, on the Implications of Muammar el-Qaddafi's Death in Libya and Beyond on The Takeaway Radio Program Connect With Us on Twitter Follow @nytimesworld for international breaking news and headlines. The New York Times More Photos » Al Jazeera television showed what it said was Colonel Qaddafi’s corpse as jubilant fighters in Surt fired automatic weapons in the air, punctuating an emphatic and violent ending to his four decades as a ruthless and bombastic autocrat who basked in his reputation as the self-styled king of kings of Africa. Libyans rejoiced as news of his death spread. Car horns blared in Tripoli as residents poured into the streets to celebrate. Mahmoud Shammam, the chief spokesman of the Transitional National Council, the interim government that replaced Colonel Qaddafi’s regime after he fled Tripoli in late August, confirmed that Colonel Qaddafi was killed, though he did not provide other details. "A new Libya is born today," he said.  "This is the day of real liberation. We were serious about giving him a fair trial.  It seems God has some other wish."   Abdul Hakim Belhaj, the leader of the Tripoli military council, said on Al Jazeera that anti-Qaddafi forces had Colonel Qaddafi’s body. It was not clear precisely how he died. Mohamed Benrasali, a member of the national council’s Tripoli Stabilization Committee, said fighters from Misurata who were deployed in Surt told him that Colonel Qaddafi was captured alive in a car leaving Surt.  He was badly injured, with wounds in his head and both legs, Mr. Benrasali said, and died soon after.   . Colonel Qaddafi had defied repeated attempts to corner and capture him, taunting his enemies with audio broadcasts denouncing the rebel forces that felled him as stooges of NATO, which conducted a bombing campaign against his military during the uprising under the auspices of a Security Council mandate to protect Libyan civilians. Libya’s interim leaders had said they believed that some Qaddafi family members including the colonel himself and some of his sons had been hiding in Surt or in Bani Walid, another loyalist bastion that the anti-Qaddafi forces captured earlier this week. There was no immediate comment on the news of his death from American officials. . Victoria Nuland, the State Department spokeswoman, traveling with Secretary of State Hillary Rodham Clinton in Afghanistan, said the department was aware of the reports “on the capture or killing of Muammar Qaddafi.” There was also no immediate comment from Mustafa Abdel-Jalil, the interim government’s top official. But he had said that the death or capture of Colonel Qaddafi would allow him to declare the country liberated and in control of its borders, and to start a process that would lead to a general election for a national council within eight months. Libyan fighters said earlier on Thursday that they had routed the last remaining forces loyal to Colonel Qaddafi from Surt, ending weeks of fierce fighting in that Mediterranean enclave east of Tripoli. A military spokesman for the interim government, Abdel Rahman Busin, said, “Surt is fully liberated.” The battle for Surt was supposed to have been a postscript to the Libyan conflict, but for weeks soldiers loyal to Colonel Qaddafi, fiercely defended the city, first weathering NATO airstrikes and then repeated assaults by anti-Qaddafi fighters. Former rebel leaders were caught off guard by the depth of the divisions in western Libya, where the colonel’s policy of playing favorites and stoking rivalries has resulted in a series of violent confrontations. Surt emerged as the stage for one of the war’s bloodiest fights, killing and injuring scores on both sides, decimating the city and leading to fears that the weak transitional leaders would not be able to unify the country. The battle turned nearly two weeks ago, when the anti-Qaddafi fighters laid siege to an enormous convention center that the pro-Qaddafi troops had used as a base. The interim leaders had claimed that the ongoing fighting had prevented them from focusing on other pressing concerns, including the proliferation of armed militias that answered to no central authority.

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Libya: 'Gaddafi dies from wounds' suffered in Sirte capture

 

National Transitional Council official Abdel Majid Mlegta said that Gaddafi was captured and wounded in both legs at dawn on Thursday as he tried to flee in a convoy which Nato warplanes attacked. Gaddafi was shot in both legs and "also hit in his head", the official said. "There was a lot of firing against his group and he died." There was no independent confirmation of his remarks. In the early hours of the morning, at least five cars carrying loyalist fighters attempted to escape the city. Libyan rebels then moved into the city's Number Two residential neighbourhood, which was the last pocket of pro-Gaddafi resistance left in the war-torn country. "Sirte has been liberated. There are no Gaddafi forces any more," said Col Yunus Al Abdali, head of operations in the eastern half of the city. "We are now chasing his fighters who are trying to run away." However, there were reports that Gaddafi loyalists had ditched their military uniforms and were firing indiscriminately at civilians. The final assault on the remaining pro-Gaddafi positions began around 8am (7am GMT) on Thursday and was over after about 90 minutes. Civilians, whose city has been under siege since Gaddafi was removed from power at the end of August, were making their way to the centre to celebrate. The Telegraph, witnessing scenes in the centre of the city said there were scenes of relief, jubilation and intense celebratory gunfire among National Transitional Council (NTC) forces. The new national flag was raised above a large utilities building in the Mediterranean city, which had been under siege for nearly two months. A rebel commander confirmed that loyalist fighters in the city had been rounded up. "This is the last day of the fight," Lieutenant Colonel Hussein Abdel Salam of the Misurata Brigade told AFP. The fate of the city has become entwined with the immediate political future of Libya after the National Transitional Council said a full interim government could not be named until Sirte had fallen.

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Enabling drug addicts

 

Recently, the Supreme Court ruled in favour of Vancouver’s Insite program, where addicts can “fix” in a “safe” environment.   As a result of this ruling, other Canadian cities may follow suit, to the delight of some and the significant uneasiness of others. So as not to be close-minded about the idea, a friend of mine suggested maybe Ottawa should be next in line for an Insite, and proposed an ideal location: an underused spacious building in the Ottawa city core on Wellington Street where Insite could be opened on the same floor as offices that are in temporary use. The building is called the Supreme Court of Canada. This way, our cabal of esteemed justices can experience first-hand the profoundly beneficial societal effects of their latest decision. Wishful thinking, no doubt. Most of us realize the next Insite will be in some neighbourhood far removed from the environs of the Supreme Court offices. The true and practical repercussions on a community will no doubt be some average working stiff’s problem. Like it or not, addicts are responsible for inordinate amounts of crime. Any recovered addict will openly tell you, drug addiction dehumanizes to the point where there is no concern for oneself, and thus no empathy or concern for anyone else. The only purpose and urge is to obtain the next fix, the next high, through any means necessary. It doesn’t matter who gets hurt. This very point is made every day in courtrooms across this country, in support of leniency for those claiming to be under the influence of various chemical intoxicants when committing their crimes. Insite, and programs like it, enables addicts to fix more frequently in an environment that protects from arrest, ensures medical treatment will be on hand to deal with overdose, and provide the necessary mechanics to inject (needles, etc.). The program reduces negative consequence to extremely dangerous behaviour and it becomes much more comfortable to be an addict. Does anyone seriously think this will somehow cause addicts to surrender their addictions? Hardly. We intuitively understand addictions will be attenuated. The only thing accomplished is fostering an environment that implies a societal acceptance of drug addiction. Addicts are now more comfortably able to destroy themselves by degrees. If this is where we are headed, why not just remove the middle man and have taxpayers supply the drugs, too? I seriously wonder if this isn’t the ultimate goal. Most recovering addicts I have spoken to only changed because they had finally realized there was no lower to go: it was rehab or death. Given the limited resources in these challenging economic times, why not use our funds to create greater rehab opportunities? Funding true rehabilitation seems to me to be an altogether better idea, benefitting both society and addict. In the meanwhile, we’re left to wonder where the next Insite will arrive, thanks to the ruling of judges that will never get anywhere near being confronted by the street level consequences of their decision.

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Eminem talks addiction, says 'The bigger the crowd, the bigger my habit got'

Eminem hasn’t exactly avoided the topic of his relationship with a variety of illicit chemicals. After all, his last two albums were calledRelapse and Recovery. But the man born Marshall Mathers has rarely been as candid about his struggles with addiction in the press.

In the pages of GQ, where he was named a “God of Rock” next to the likes of Keith Richards and Robert Plant, Em let the world know exactly why he is so prone to addiction. “I’m very much a creature of habit,” he told GQ. “If I’m used to waking up in the morning and having [a Red Bull], I could do it every morning for the next ten years straight until I find something else to move on to. So if I’m used to taking a Vicodin when I wake up in the morning because I’m hungover from ­drinking or taking pills … The bigger the crowd, the bigger my habit got.”

Eminem also explained that his drug problems could be traced over the course of his discography, noting that The Slim Shady LP was written almost entirely sober, the dark experiments on The Marshall Mathers LP were the result of more experimentation with substances, and Encore was hampered both artistically and practically thanks to his addiction to prescription medication (including Valium and Ambien).

After a failed stint in rehab (“Every addict in rehab feels like everyone’s staring at them. With me? Everyone was staring at me”), he had a traumatic overdose experience and finally made the decision to get clean when he realized he was killing himself. “I had a feeling in my arm that was weird, man,” he said. “Like, it really freaked me out. So I went to some people I trust and said, ‘Look, I know I need help. I’m ready now.’ I got a room in the same hospital where I overdosed, and I detoxed.”

His revelations fueled Recovery, which returned him to the top of the sales mountain and ranks among his finest work. The most revealing part of the interview involves his moment of clarity. “Sometimes [sobriety] sucks, and I wish I was wired like a regular person and could go have a f—in’ drink,” he told GQ. “But that’s the biggest thing about addiction: When you realize that you cannot f— around with nothing ever again. I never understood when people would say it’s a disease. Like, ‘Stop it, d—head. It’s not a disease!’ But I finally realized it really is.”

It’s refreshing to hear a star as huge as Eminem talking about his drug woes so frankly. And it’s refreshing to know that the reason why Encore is such a mess is because Ambien, as he puts it, was “[eating] a hole through my brain.” That certain explains this.

What do you think of Eminem’s thoughts on addiction? Where do you rank Recovery in his discography? Sound off in the comments!

 

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¡Ole! Spain drives legality into mobile services with Sybase 365

 

Spain was one of the first countries to start to lay down laws relating to old non-registered pay-as-you-go SIM cards for anti-terrorism reasons i.e. you MUST tell the authorities your name and address and get a new SIM if you had one of the old anonymous ones. Following on from this "mobile legality" theme, news this week bubbles of Sybase subsidiary company Sybase 365 working with Spanish mobile operator Yoigo. The two firms have joined forces to offer registered SMS, a new service allowing companies to send customers confirmation text messages with the same legal standing as registered mail. According to Sybase, "Officially certified by the Spanish Real Casa de la Moneda (The Royal Mint of Spain) the Sybase 365 and Yoigo service recognises an SMS confirmation as legal proof of delivery of important documents and information. These certificates can then be used as evidence in judicial proceedings in Spain for enterprises wishing to demonstrate correspondence with their customers. This will enable companies and their customers to resolve disputes in a timely manner, avoiding the cost of court proceedings." With registered SMS, financial institutions, utility companies and enterprises will be able to use SMS where previously they would have used registered mail. Developers working to build in legally approved services into mobile (or desktop for that matter) applications should perhaps take note of Sybase 365's suggestion that an SMS provides a number of advantages over registered mail including five times better response rate over traditional mail and is read 288 times faster than email. "No other communication medium has the ability to reach more people than SMS, said Howard Stevens, senior vice president, global telco and international operations, Sybase 365. "Consumer acceptance and enterprise adoption of the mobile channel is fuelling the growth in volume, availability and sophistication of mobile services and the registered SMS services we're launching confirms this trend."

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Catholic Church Child Trafficking Network

 

Spain is reeling from an avalanche of allegations of baby theft and baby trafficking. The trade began at the end of the Spanish civil war and continued for 50 years – hundreds of thousands of babies are thought to have been traded by nuns, priests and doctors up to the 1990s. This World reveals the impact of Spain’s stolen baby scandal through the eyes of the children and parents who were separated at birth, and who are now desperate to find their relatives. Exhumations of the supposed graves of babies and positive DNA tests are proof that baby theft has happened. Across Spain, people are queuing up to take a DNA test and thousands of Spaniards are asking ‘Who am I?’ Katya Adler has been meeting the heartbroken mothers who are searching for the children whom they were told died at birth, as well as the stolen and trafficked babies who are now grown up and searching for their biological relatives and their true identities.

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Spain’s property bust is only getting worse.

AFP

Cranes erecting the Pelly tower under construction in Seville.

Spain’s property bust is only getting worse. The wonder is that the country’s economy and banks are still this resilient.

The Spanish government said Tuesday that housing prices remained in free-fall in the third quarter, dropping 5.5% from a year earlier, the biggest decline since 2009.

This makes Spain, in many senses, the worst case of a property bust in the developed world—the country is already deep in its third consecutive year of falling prices, with no rebounds.

Last year, the pace of decline slowed significantly, signalling some light at the end of the tunnel, but another metaphor is called for instead: that last year’s respite was nothing more than a dead cat’s bounce.

The good news should be the overall amount of the decline, since Spain’s government says prices are only down 18%, in nominal terms, since their peak in early 2008.

But that doesn’t include the effect of Spain’s persistent inflation, one of the highest in the euro zone, which makes the real drop closer to 30%—Spain’s government didn’t provide real price data in today’s release.

After earlier predictions of a short-term correction have been smashed, some analysts now say prices may keep falling for the next two years, eroding Spain’s household wealth and banking balance sheets.

Meanwhile, banks are struggling to keep up with the loss in value of the collateral against €400 billion worth of loans to construction and real estate firms, an amount that remains unchanged since 2008.

For Luis Garicano, a professor of economics and strategy at the London School of Economics, this number is perhaps the most dangerous of those related to the bust, since it indicates the banking sector exposure to such loans hasn’t diminished.

He estimates that a possible explanation is that banks have exchanged some non-performing loans for property that they now own, but not enough to offset the rising interest on the loans.

Many, if not most of these loans, are being rolled over to keep zombie developers in business, in the hope that the market will recover.

All the same, banks have also turned into property developers now.

Walk into any Spanish bank branch, looking for a mortgage, and you will see that is much easier to get it if you’ll just take one of the many, many houses the bank acquired from a bankrupt developer. But many will say why worry? The same house will be even cheaper next month.

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MAN ARRESTED FOR ASSAULTING POLICE OFFICER

 

Police have arrested a man identified as DFM, accused of assaulting a police officer and of driving his car whilst under the influence of alcohol in Roquetas de Mar. Command sources indicated to Europa Press that the incident occurred on Sunday when, at around 20.00hrs the 27 year-old man came by car to the Guardia Civil headquarters in Roquetas de Mar in an evident state of drunkenness to formulate a complaint against his former partner. At that time, and as a result of the attitude displayed by the man, agents requested the presence of local police officers who, once arrived at the barracks, were asked to carry out a breath test to the individual, yielding a rate of 0.83 milligrams of blood alcohol per litre of air breathed. As a result the man was arrested. He tried to fight of the agents and the arrest, struggling to get free of the police and came to attack one of them causing a bruise to the officer's head, resulting in the man being charged with assaulting an officer. The detainee, whose steps were performed at the same time, has also made a complaint to the Court for an alleged crime of abuse of authority. He is due in Court of Instruction No. 1 of Roquetas de Mar.

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Israeli soldier Gilad Schalit has been moved from the Gaza Strip to Egyp

 

Israeli soldier Gilad Schalit has been moved from the Gaza Strip to Egypt, Palestinian officials in Gaza said. The move begins an elaborate prisoner swap deal in which hundreds of Palestinian inmates are to be freed in return for the captured tank crewman. The officials said buses of Palestinian prisoners are now moving from Israel into Egypt en route to Gaza. Israel's Army Radio station, citing anonymous Israeli officials, confirmed the report. In all, Israel is slated to release 1,027 prisoners for Schalit, now 25, who had been held in Gaza since he was captured more than five years ago by Palestinian militants in a cross-border raid. Before dawn, convoys of white vans and trucks transported hundreds of Palestinian prisoners to the locations in the West Bank and on the Israel-Egypt border where they were to be freed. In Gaza, the Red Cross confirmed that the prisoners slated for release had arrived at the nearby border crossing. The exchange, negotiated through Egyptian mediators because Israel and Hamas will not talk directly to each other, is going ahead despite criticism and court appeals in Israel against the release of the prisoners. Nearly 300 of them were serving lengthy sentences for involvement in deadly attacks. The exchange involves a delicate series of staged releases, each one triggering the next. The Red Cross and Egyptian officials are involved in facilitating the movement of prisoners. A Gaza militant leader said the Palestinians were waiting until all 477 prisoners were moved into Palestinian territory before turning Schalit over to the Egyptians. In the meantime, he said armed men would remain with him in Egypt. When Tuesday's exchange is complete, 477 Palestinians held in Israeli jails, including 27 women, will have been released, several of them after decades behind bars. The other 550 are set to be released in two months. Schalit will be brought to an Israeli military base along the Egypt border, where he will be issued a new military uniform and given another medical examination, according to the Israeli military. Schalit will then be flown by helicopter to an air force base in central Israel, where he will meet his parents, as well as Prime Minister Benjamin Netanyahu, the defence minister and military chief of staff.

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Celebrities and millionaires living on one of Britain’s most exclusive estates have become the targets of a crime wave.

Celebrities and millionaires living on one of Britain’s most exclusive estates have become the targets of a crime wave.

A diplomat’s wife and son became the latest victims after they were tied up and held at gunpoint during a £100,000 robbery.

St George’s Hill in Surrey has been dubbed the British ‘Beverly Hills’ and is home to Russian oil tycoons, hedge fund managers and City financiers.

Exclusive: The St George's Hill estate in Surrey has been hit by a crime wave in recent months. It lists oil tycoons and hedge fund managers among its residents

Bollywood actress Shilpa Shetty and Chelsea footballer Didier Drogba are also residents.

The estate is hidden behind security gates and guarded around the clock by security guards and CCTV cameras.

But that has failed to protect the residents from falling foul of a string of crimes since April.

Police have warned them to be on their guard after the latest incident last month was a gunpoint £100,000 robbery in which a diplomat’s wife and son were tied up.

One resident said homeowners, who paid up to £10million for the privilege, are ‘living in fear’ of becoming the next victim.

The neighbourhood, a favourite with Russian oil tycoons, hedge fund traders and City financiers, has been dubbed the British ‘Beverley Hills’.

Among the high-profile names to own a home there are Dragons’ Den star Theo Paphitis, Bollywood actress Shilpa Shetty and Chelsea footballer Didier Drogba.

Other include Scottish TV actress Hannah Gordon, former Chelsea player Jimmy Floyd Hasselbaink and the BSkyB chief executive Jeremy Darroch.

While former residents on the 420-home estate include Ringo Starr, Kate Winslet, Cliff Richard, Jenson Button and Sir Elton John.

Surrey Police admitted the tranquil Weybridge neighbourhood, known as ‘The Hill’ to locals, has been hit by a string of crimes since April.

Celebrity residents: Bollywood star Shilpa Shetty and Chelsea striker Didier Drogba are among the people who live in St George's Hill, Surrey

They included two violent robberies, a burglary, two thefts, the theft of a car, vandalism and a violent attack.

Detectives are still hunting the masked gunman behind the terrifying robbery where the victims were tied up and threatened with a sawn-off shotgun.

The woman, aged in her 30s, and her teenage son escaped unhurt as he made off with cash and jewellery worth £100,000.

Police suspect their attacker may have had an accomplice in a car outside but the pair managed to dodge security on the estate.

One local, who did not want to be named, said all householders had been warned about the recent crimes and been told to ‘be vigilant’.

He said: ‘There has been a lot of talk about the crime rate in the past six months.

‘Although it might not seem particularly high compared to most of the country, the simple fact is that people pay a lot of money to live here and do not expect to be living in fear.

‘There are private security guards, CCTV cameras, barriers and all sorts, so this kind of thing is very out of the ordinary for people who live here.

‘We have been told to be vigilant and to report any suspicious behaviour to the police and to the security team here.’

Elmbridge councillor Peter Harman said: ‘They’ve got their own security on the estate and they have cameras that monitor traffic going in and out, and all the cars are recorded, so it should be easy to trace people.’

The residents’ association boasts it is a ‘unique location’ for successful high achievers looking for a ‘secure and private location.’

Each house is required to have ‘at least’ one acre of land and boundaries cannot be marked by fences or walls, only hedges and bushes.

The 964-acre estate boasts its own golf club and 15 tennis courts, four squash courts, state-of-the-art gym, 20m swimming pool and sauna, bar and restaurants and its own beauty spa.

According to estate agents Savills, the the area is ‘internationally renowned as one of the most sought-after private estates in England.’

But it is not the first time the estate has had problems with unwanted intruders and people ignoring the law.

In May, peace at the gated community was punctured when squatters moved into an empty property 200 yards from the members-only tennis club that forms its social hub.

Residents were sent a letter saying those responsible were ‘known to police’ and they should be on their guard.

But the unwelcome neighbours managed to stay for several weeks at the £3million empty property which was at the centre of a long-running legal dispute.

A Surrey Police spokesman confirmed the crimes took and said officers continue to appeal for witnesses over the armed robbery.

A spokesman for St George’s Hill Residents’ Association declined to comment.

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Mexico opposition may work with criminals

 

Mexican President Felipe Calderon has said politicians in the main opposition party may consider deals with criminals, opening an inflammatory new front in the nation's presidential election campaign. Calderon's blunt remarks about the centrist Institutional Revolutionary Party (PRI), which is favored to win the July 1, 2012 election, are unusual in a country where the president is expected to stay largely aloof from party politics. Centering on the policy that has dominated his presidency -- an aggressive army-led crackdown on drug cartels -- his comments risk polarizing opinion on how to restore stability to Mexico, where the drug war has killed 44,000 in five years. Leading members of Calderon's conservative National Action Party (PAN), other PRI opponents and political analysts have accused the once-dominant party of making secret deals with drug cartels in the past to keep the peace in Mexico. In a weekend New York Times interview published a day after he said a state governed by the PRI had been left in the hands of a drug gang, Calderon was asked whether the opposition party might pursue a corrupt relationship with organized crime. "There are many in the PRI who think the deals of the past would work now. I don't see what deal could be done, but that is the mentality many of them have," said Calderon, whom the law prevents from seeking a second six-year term. Calderon's office later issued a statement saying the newspaper had expressly noted when posing the question that the PRI had a reputation for making deals with organized crime. His office underlined that the president recognized many in the PRI did not favor this approach and supported his policy. Analysts say Calderon is bitterly opposed to the PRI, which dominated Mexico for seven decades until PAN won the presidency in 2000 under its candidate Vicente Fox. The tide of drug war killings has eroded support for the PAN, and the PRI's main hopeful, the telegenic former governor of the State of Mexico, Enrique Pena Nieto, has around twice the support of his nearest rival. NAMING NAMES The PRI has attacked Calderon for the spiraling death toll, and analysts said the president's remarks were tailored for the election, putting in jeopardy any hope of passing many pending reforms that have been stalled in Congress. "This is really serious," Javier Oliva, a political scientist at the National Autonomous University of Mexico (UNAM), said of Calderon's comments about the PRI. "The president has an obligation to prove this now. To name names." "The president is regressing into a negative stance of being president of the PAN, and not president of Mexico." The Times noted that Calderon "looked disgusted at the mere mention of the PRI" during the interview. The statement issued by his office said Calderon mentioned the ex-PRI governor of Nuevo Leon state, Socrates Rizzo, as someone who had pointed to the existence of such pacts. Rizzo's comments, which were reported early this year, were rejected by leading PRI figures at the time. The PRI's national chairman, Humberto Moreira, told El Universal's Sunday newspaper his party did not want to make deals with organized crime and that Calderon was trying to exploit the issue of public security for political ends.

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Mexico’s military says soldiers freed 61 men being held captive by the Zetas drug cartel for use as forced labor

 

Mexico’s military says soldiers freed 61 men being held captive by the Zetas drug cartel for use as forced labor. The army says the men were found guarded by three Zetas kidnappers in a safe house in the border city of Piedras Negras on Saturday. Soldiers made the discovery during a security sweep in the area that also turned up an abandoned truck filled with 6 tons of marijuana. Loading... Comments Weigh InCorrections? In a press conference Sunday, Gen. Luis Crescencio Sandoval Gonzalez said one of the captives was from Honduras and others were from various parts of Mexico. He said the three kidnappers were arrested. Piedras Negras sits across the border from Eagle Pass, Texas, in the Mexican state of Coahuila, which has been the scene of ongoing battles between drug gangs.

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Four former members of the Colombian army's special forces are training members of Los Zetas

 

Four former members of the Colombian army's special forces are training members of Los Zetas, considered Mexico's most violent drug cartel, the Bogota daily El Tiempo reported Sunday. The retired soldiers - two captains and two sergeants - served time in Colombia for human rights violations. "The identities of the soldiers have not been released because charges have not been filed against them," El Tiempo said, adding that the U.S. Drug Enforcement Administration, Mexican police and Colombian police were tracking their movements.

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You shoot a police officer, you’re going to get shot back at

 

A little before dawn on a sticky summer night in June, one of Texas Gov. Rick Perry’s Ranger Reconnaissance Teams was running a clandestine operation along the Rio Grande when its surveillance squad came across a Dodge Durango pickup truck loaded with bales of Mexican marijuana. Bad idea, messing with Texas. 37 Comments Weigh InCorrections? inShare Gallery  The Texas governor is seeking the 2012 GOP presidential nomination. Gallery  Mexico's ongoing drug war continues to claim lives and disrupt order in the country. More On This Story Read more on PostPolitics.com Rick Perry a hawk on Texas border security Perry and Romney dominate GOP fundraising Cain defends ‘9-9-9’ tax overhaul plan View all Items in this Story The lawmen chased the truck along the river, with a Texas Department of Public Safety helicopter swooping overhead and Texas game wardens roaring down the Rio Grande in boats, state authorities said. In minutes, the traffickers had ditched the truck in the muddy water and were rafting the dope back to Mexico. Then the shooting started. Alone among his Republican rivals running for president, the Texas governor has a small army at his disposal. Over the past three years, he has deployed it along his southern flank in a secretive, military-style campaign that his supporters deem absolutely necessary and successful and that his critics call an overzealous, expensive and mostly ineffective political stunt. A hawk when it comes to Mexican cartels, Perry said in New Hampshire this month that as president he would consider sending U.S. troops into Mexico to combat drug violence there and stop it from spilling into the United States. The June incident along the Rio Grande was typical of Perry’s border security campaign: a lot of swagger, with mixed results. The initial news release said the Texas Rangers team came “under heavy fire” by members of the Gulf cartel, though officials later said it was “four to six shots.” The Texas Rangers and their multi-agency task force, which included U.S. Border Patrol agents, returned fire — big time — lighting up the Mexican riverbank with 300 rounds. “You shoot a police officer, you’re going to get shot back at,” said Steven McCraw, Perry’s homeland security chief and director of the Texas Department of Public Safety.

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Frightening 'Drug Threat Assessment' for the USA and Mexico

 

The National Drug Intelligence Center, a branch of the U.S. Department of Justice, recently released a document entitled the "National Drug Threat Assessment 2011."  You can read the document online here.  The document paints a gloomy picture for both the U.S. and Mexico. The Assessment's Executive Summary begins: "The illicit trafficking and abuse of drugs present a challenging, dynamic threat to the United States.  Overall demand is rising, largely supplied by illicit drugs smuggled to U.S. markets by major transnational criminal organizations (TCOs).  Changing conditions continue to alter patterns in drug production, trafficking, and abuse. Traffickers are responding to government counterdrug efforts by modifying their interrelationships, altering drug production levels, and adjusting their trafficking routes and methods. Major Mexican-based TCOs continue to solidify their dominance over the wholesale illicit drug trade as they control the movement of most of the foreign-produced drug supply across the U.S. Southwest Border. "The estimated economic cost of illicit drug use to society for 2007 was more than $193 billion...." One of the contributing factors is the high demand for drugs in the United States. This high demand finances the drug cartels, allowing them to spend more and expand their operations.   According to the 2011 Assessment, that demand is growing. The document reports that "The abuse of several major illicit drugs, including heroin, marijuana, and methamphetamine, appears to be increasing, especially among the young."  Elsewhere it says that "Overall drug availability is increasing."  One exception to this tendency is cocaine - its availability and use are down.   The document states that "The Southwest Border remains the primary gateway for moving illicit drugs into the United States.  Most illicit drugs available in the United States are smuggled overland across the Southwest Border...."  The Southwest Border is comprised of the southern borders of California, Arizona, New Mexico and Texas with Mexico. Then there is the tunneling: "Despite enhanced detection efforts and better countermeasures, Mexican drug traffickers will continue to build tunnels under the Southwest Border." In the U.S., Mexican cartels have cornered the market.  The 2011 Assessment states that "Mexican-based TCOs [transnational crime organizations] dominate the supply, trafficking, and wholesale distribution of most illicit drugs in the United States."  Elsewhere, it predicts that "Major Mexican-based TCOs and their associates are solidifying their dominance of the U.S. wholesale drug trade and will maintain their reign for the foreseeable future." The Mexican cartels are active in many urban areas.  The Assessment calculates that "Mexican-based TCOs were operating in more than a thousand U.S. cities during 2009 and 2010...." And, "Mexican-based trafficking organizations control access to the U.S.-Mexico border, the primary gateway for moving the bulk of illicit drugs into the United States.  The organizations control, simultaneously use, or are competing for control of various smuggling corridors that they use to regulate drug flow across the border. The value they attach to controlling border access is demonstrated by the ferocity with which several rival TCOs are fighting over control of key corridors, or ‘plazas.'" The document says that seven major Mexican drug cartels are supplying the United States, but that "... the Sinaloa Cartel is preeminent - its members traffic all major illicit drugs of abuse, and its extensive distribution network supplies drugs to all regions of the United States." U.S.-based gangs are involved in the distribution north of the border: "The threat posed by gang involvement in drug trafficking is increasing, particularly in the Southwest Region. With gangs already the dominant retail drug suppliers in major and midsized cities, some gang members are solidifying their ties to Mexican TCOs to bolster their involvement in wholesale smuggling, internal distribution, and control of the retail trade." The Assessment reports that "Criminal gangs - that is street, prison, and outlaw motorcycle gangs - remain in control of most of the retail distribution of drugs throughout much of the United States, particularly in major and midsize cities." The document predicts that "Collaboration between U.S. gangs and Mexican-based TCOs will continue to increase, facilitating wholesale drug trafficking into and within the United States.  Most collaboration occurs in cities along the U.S.-Mexico border, although some occurs in other regions of the country. Some U.S.-based gangs in the Southwest Border region also operate in Mexico, facilitating the smuggling of illicit drugs across the border." The 2011 Assessment paints a gloomy picture of the drug trafficking situation, drug cartels, and the safety and security of both the U.S. and Mexico.

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RBS staff told to pay for their own Christmas party

 

Another day, another downgrade. Reduced to surviving on two pints of lager and pack of crisps at recent Christmas parties, misery was heaped on Royal Bank of Scotland's highly-paid investment bankers on Friday as they were told that they would have to fund this year's bash entirely out of their own pocket.

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HMRC clamps down on Swiss account holders

 

6,000 Britons who hold money in the Swiss arm of HSBC will soon receive a letter telling them that they need to own up to unpaid tax. The bank is acting on information received last year under a tax treaty. This revealed that more than 6,000 individuals, companies, trusts and other bodies held accounts and investments with HSBC Geneva. HMRC has already begun criminal and serious fraud investigations into more than 500 individuals and organisations holding these accounts. HMRC will shortly be writing to those who have not yet come forward, or are not under investigation. They will be offered a chance to contact HMRC and disclose all their tax liabilities, HMRC said. Fines of up to 200 per cent of any tax may, in certain circumstances, be imposed on people not coming forwards during this window for disclosure. "This is not an amnesty. There are no special rates of penalty or interest for those who come forward voluntarily," said HMRC's Dave Hartnett. "This is an opportunity for those who have made errors in past returns to correct them. The net is closing on offshore evaders. Don't wait for HMRC to contact you."

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FORMER policeman lived the high life in Marbella by running a £300million VAT fraud

 

 – the biggest ever uncovered in the UK. Nigel Cranswick, 47, tried to cheat the taxman by claiming back tax on £2billion worth of bogus sales made by his mobile phone firm I2G. The “phenomenal” turnover was generated in eight months, HMRC said. Advertisement >> Meanwhile Cranswick lived it up in his rented villa in Marbella. “Despite this phenomenal turnover... I2G operated from a small office in Sheffield,” HMRC said. The scam was smashed after a five-year police probe, Newcastle crown court was told. Cranswick, from Sheffield, admitted conspiracy to cheat HMRC, as did accomplices Brian Olive, 56, of Doncaster, and Darren Smyth, 42, from Rotherham. Claire Reid, 45, also from Rotherham, admitted false accounting. The four will be sentenced next month

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Rich Brits plot escape to France

 

 wealthy Britons are planning to flee what they believe to be an over-taxed and crime-ridden UK, with France the most favoured destination, according to a survey published by British bank Lloyds TSB. The survey, published on Monday, found that 17 percent of those with more than £250,000 ($391,025) in savings and investments wanted to move abroad in the next two years, up from 14 percent six months earlier. The most popular destination for the rich exiles was France (21 percent), followed by Spain (15 percent) and the US (11 percent).  Three-quarters of those questioned (73 percent) thought that crime was a bigger problem in Britain than other developed countries. "Sadly, it seems August's riots, tax increases and a rising cost of living have cast a pall over life in the UK for some wealthy people," said Nicholas Boys-Smith, managing director of Lloyds TSB International Wealth in a statement. "It may reignite fears of a 'wealth drain' from our economy as rich people seek pastures new," he said. 42 percent of those questioned named tax as a reason for leaving, up from 35 percent six months ago. Cost of living was a factor for 52 percent, up from 31 percent. Research in January 2011 suggested that 4.6 percent of the UK population have over £250,000 in savings and investments, which equals around 2.8 million people.

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A poorly designed, over-extended and ill-disciplined monetary union is in danger of falling apart

Illustration by Matt Kenyon

What if it falls apart? For all my adult life, I have been what in England is called a pro-European or Europhile. For most of that time, European history has been going our way. Now it may be on the turn. Soon, it could be heading the Eurosceptics' way. What then?

Over the last half-century, the institutional organisation of Europe has progressed from a common market of six west European states to a broader and deeper union of 500 million individual Europeans and 27 countries, from Portugal to Estonia and Finland to Greece; 17 of them share a single currency, the euro. There are no border controls between 25 European countries in the Schengen area. Enveloping it all is the fragile skin of the European convention on human rights (now under facile attack from some British Conservatives) which allows any individual resident of no less than 47 countries, including Russia, to contest a violation of their inalienable human rights all the way to a European court of human rights in Strasbourg.

Never has Europe been so united as this. Never have more of its people been more free. Never before have most European countries been democracies, joined as equal members in the same economic, political and security community. Our continent still has a grotesque amount of poverty, injustice, intolerance and outright persecution. (Try living as a Roma or Sinti in eastern Europe for a taste of all that.) I prettify nothing. But – to adapt a famous remark about democracy by that great pro-European British conservative, Winston Churchill – I do say that this is the worst possible Europe, apart from all the other Europes that have been tried from time to time.

Now all this is under threat. A poorly designed, over-extended and ill-disciplined monetary union is in danger of falling apart, bringing bitter recriminations and lasting divisions. More fundamentally, the past emotional motivators and political engines of European unification are no longer there. The peoples of Germany, the Netherlands and other core countries of the European Union are loth to take steps of further integration which many of the creators of monetary union thought would be necessary to sustain it.

I blame politicians like Angela Merkel for not showing more leadership in this respect, but such leadership would involve a heroic, uphill struggle to persuade reluctant publics in what are still (contrary to what Eurosceptics claim) largely sovereign national democracies. If these were not sovereign national democracies, the whole financial world – from Washington to Beijing – would not this week have been waiting with bated breath on the vote of one small party in the parliament of Slovakia.

I note in passing that many of the current difficulties of the eurozone were predicted back in the 1990s, and I was a sceptic about monetary union at that time. This is what I wrote in 1998: "The rationalist, functionalist, perfectionist attempt to 'make Europe' or 'complete Europe' through a hard core built around a rapid monetary union could well end up achieving the opposite of the desired effect. One can all too plausibly argue that what we are likely to witness in the next five to 10 years is the writing of another entry for [Arnold] Toynbee's index [to his A Study of History], under 'Europe, unification of, failure of attempts at'." But I am not now going to hide behind that testament to my own earlier scepticism about one element of a larger project.

As a pro-European, I stand by the whole project, warts and all. I recently contributed to an appeal – which you too can sign – arguing that the eurozone can only be saved by further fiscal integration and a strategy for growth. Remarkably, even the Eurosceptic prime minister David Cameron recently told the Financial Times that Germany and France need to fire a "big bazooka" to convince financial markets and hence preserve the eurozone. That is a bit like the Duke of Wellington wishing Napoleon success in consolidating his continental empire – but extraordinary times do produce such delicious moments.

Beyond this, however, I'm not going to add a single word to the 537 newspaper columns you have already read explaining how the eurozone must and can, or must not and can not, be saved. You decide which economic commentator you believe.

Instead, I want to ask what happens if the eurozone does fail, one way or another – and that failure begins a much larger process of gradual disintegration. Suppose that the EU in 2030 has become something like the Holy Roman Empire in, say, 1730: still extant on paper, but more origami than political reality. What then?

For us pro-Europeans, what happens then will be, first of all, a paradoxical kind of liberation. Rather like the supporters of a long-term incumbent government, for decades now we have felt some obligation to defend the existing state of affairs, with all its obvious flaws. Eurosceptics, by contrast, have enjoyed the glorious irresponsibility of opposition – and, heaven knows, the Brussels institutions furnish endless easy targets for the sceptic and the satirist.

Now the boot will be on the other foot. For a few years, like an incoming government, Eurosceptics will be able to blame current problems on the preceding regime (overhasty monetary union led to German-Greek loathing, etc), but that only lasts so long. Sooner or later it will become clear that it is their kind of Europe we are living in, not mine.

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More German travelers have been using foreign airports since a flight tax was imposed early this year.

 

 

Consider two small airports in the middle or Europe. At Maastricht Aachen Airport, business is booming thanks to an influx of German passengers who are fleeing a national aviation tax introduced on January 1, 2011. Meanwhile, just 80 kilometers across the border, Germany's Weeze Airport has been steadily losing customers.

A few years ago, things were exactly the opposite. The Netherlands had its own, yearlong experiment with an aviation tax, but revoked it in July 2009 after it saw Dutch hubs like Maastricht Aachen Airport lose passengers to rivals in neighboring countries, including Germany.

The levy cost Dutch airports, airlines, and related businesses between 1.2 and 1.3 million euros in lost revenue, according to a study by Amsterdam Aviation Economics, a research institute affiliated with the University of Amsterdam.

Hans van Mierlo, a professor of public finance at the University of Maastricht, said the abundance of transportation options in Europe means travelers can and will seek out alternatives whenever one country unilaterally imposes an air passenger tax.

"The [Dutch] crowd went to Germany; now the German crowd comes to us," he told Deutsche Welle. "I am surprised that the German government didn't learn from the Dutch failure."

Maastricht-Aachen Airport may be small, but traffic is growing rapidlyHefty rates

The German aviation tax runs at a rate of eight euros per one-way flight within Europe, 25 euros for medium-haul services to the Middle East and Sub-Saharan Africa, and 45 euros for long-haul flights. The tariff only applies to flights originating in Germany. The German Finance Ministry reported the duty raised 434 million euros in revenues in the first half of 2011.

However, for travelers, the tax can double the total cost of a bargain ticket. That has driven Irish budget carrier Ryanair to cancel some of its services from Weeze Airport and add flights at Maastricht. Meanwhile, rival airline Germanwings has launched a service linking Maastricht to Berlin 12 times per week.

Those moves helped drive Maastricht Aachen Airport's whopping 70 percent increase in passengers so far this year. That is quite a comeback from the time of the Dutch aviation tax, when it lost 25 percent of its customers.

Maastricht's airport has new routes to Bucharest, Tenerife, and other spotsAmong the new clientele is Ne Pham from Jülich, Germany. She told Deutsche Welle that she used to fly out of Cologne or Dusseldorf to destinations like Italy, the United States and her native Vietnam.

"It's cheaper to fly from [Maastricht] than from Germany," she said. "It's easy to find, has lots of parking spaces, and a very fast check-in. It's small but nice."

Maastricht makeover

To accommodate new passengers, Maastricht Aachen Airport has renovated its main waiting area and sole restaurant. A new bus line runs from Cologne directly to the Dutch airport, where travelers are greeted by a row of flags from seven European countries. Airport staff members are required to speak German and English in addition to Dutch, and a number of them speak French as well.

Marion Schramm and her husband, from Geilenkirchen, Germany, echoed Pham's reasons for choosing Maastricht Aachen Airport. But they were not as impressed by the small airport's recent makeover.

"It's obviously dinky," Marion Schramm told Deutsche Welle, "You see everything right away. But it's a lot cheaper than Germany at the moment."

Customers have mixed reviews for the small Dutch airport's facilities

Weeze's woes

The German Airport Association, which represents German air hubs, has called for an immediate end to the national flight tax. It reported a tepid growth rate of 3.2 percent at airports throughout the country this July, compared with the same month last year.

Weeze Airport, near Dusseldorf, had 22.8 percent fewer customers in the same time period. Ludger van Bebber, the airport's managing director, said many of the hub's clients used to come from the Netherlands.

"The aviation tax destroys the level playing field for us," he told Deutsche Welle. "That is the main issue we have here at Weeze."

Meanwhile, Berlin's two hubs are seeing travelers hop across the border to nearby Polish airports. And people in Munich do not have to drive far to reach a number of alternative airports in Austria and the Czech Republic.

The chairman of the Maastricht airport's board is planning for growth to continueDutch chairman confident

While the German Finance Ministry has denied recent media reports that it might lower the aviation tax rates, the ministry is scheduled to evaluate the levy's effects on small and medium-sized airports in June 2012.

The chairman of Maastricht Aachen Airport, Jan Tindemans, said he is not worried about his business in the short term - even if Berlin ends up decreasing or revoking the tax.

He told Deutsche Welle that winning back market share in the wake of the Dutch tax experiment was very difficult. He does not expect things to be any easier for German hubs.

"No bakery wants its customers to go for one or two times to another bakery, because they always think [the customers] will stay there," he said. "There will be some people who will go back, but I don't think there will be much of an effect."

Tindemans said Maastricht Aachen Airport is seeking to add more airlines and destinations to its roster. He added that his airport could double annual traffic to almost one million passengers over the coming years if economic conditions remain stable.

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