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Case for UK tax cuts is stronger, says IFS

he argument for the chancellor to cut taxes to boost the economy is stronger than it was a year ago, according to the Institute for Fiscal Studies (IFS).

Its Green Budget said the government could safely cut taxes temporarily, without worrying that the Bank of England would raise rates in response.

But the IFS warned a big tax cut would risk undermining investor confidence.

It also warned that the current risks to the economy meant that there was little scope for long-term tax cuts.

It cited the pressure on health and pensions spending caused by the ageing population as putting long-term strain on the public finances.

The IFS predicted that government departments would borrow about £2.9bn less in the current financial year than the latest official forecasts suggested, but warned that risks to the economy from dangers such as a growing crisis in the eurozone could mean that borrowing has to be increased.

The IFS releases its Green Budget every year before the actual Budget. It suggests measures that the think tank considers should be included in the chancellor's plans.

George Osborne is due to deliver his Budget on 21 March.
Room for manoeuvre

"The chancellor faces his third budget with the economy and public finances in considerably weaker shape than he had hoped a year ago," said Paul Johnson, director of the IFS.
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The IFS also shows how different local services have been affected by cuts. Spending on planning and libraries has been slashed, but spending on rubbish collection has actually grown slightly.”

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image of Stephanie Flanders Stephanie Flanders Economics editor, BBC News

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"His room for manoeuvre is further curtailed by risks that the economy might do even worse than expected, especially if the eurozone should break up."

The Green Budget also includes forecasts from Oxford Economics, which predicts that the UK economy will grow by 0.3% in 2012, less than the Office for Budget Responsibility's projection of 0.7%.

But it warned that "a eurozone crisis would see the UK back into deep recession", with the economy contracting in both 2012 and 2013.
Means testing

The IFS criticises the government's plans to withdraw child benefit from households with a higher-rate taxpayer from 2013, on the grounds that it would create a "cliff-edge" that would mean 170,000 families could increase their income by earning less.

The think tank suggests that the government should instead gradually reduce child benefit as household income rises, using the existing means-testing system that is used to pay child tax credit.

It says that the current public sector pay freeze and planned two years of 1% increases will return public sector pay to the same position it was relative to private sector pay before the recession.

But it also suggests that there is a strong argument for moving towards more regional differentiation in public sector pay.

The IFS says that in some regions, public sector workers are paid on average 18% more than their private sector counterparts.

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The IMF will seek $ 500 billion of additional resources

The International Monetary Fund, IMF, to help stabilize the global economy $ 500 billion more resources to increase the said work.
Additional resource, available for eurozone countries are forced to pay the public debts.

However, the IMF, the 'future years' of up to $ 1 trillion might need additional sources said.

500 billion dollars in question, the European countries that recently committed to the IMF, including 150 billion dollars has been saved.

Organization in a statement, "according to our estimations, in future years to $ 1 trillion will be needed for the global economy. The IMF aims to find additional resources of up to $ 500 billion at the moment." the statement said.

The IMF currently has 590 billion dollars in borrowing capacity. A record level of $ 250 billion of the fund alacaklarıysa.

An important part of the European countries to provide $ 500 billion, the IMF additional resources to complete the remaining portion of the other member states will need to call.

EU summit last December, the IMF, the embattled countries such as Greece, the euro area for the 200 billion euro rescue fund to contribute to providing additional resources had been committed.

However, the United Kingdom, has chosen not to participate in the euro area countries to support the plan.

This is why the EU countries did not reach the promised amount

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Penalty of $ 18 billion Ecuador oil giant Chevron'a

he appellate court on the grounds contaminated by oil giant Chevron in Ecuador Amazon'ları upheld the decision to pay compensation of $ 18.2 billion.
Ecuadorian President Rafael Correa has said it welcomes the decision, said that justice is manifested.
Texaco merged with Chevron in 2001, Ecuadorian Amazon was accused of shaking toxic substance.
The company in February last year, resulting in the lower court case, was sentenced a penalty of $ 5.9 billion.
This figure is almost three times removed from the final decision.
Amazonlardaki court in the city of Lago Agrio, 14 February 2011, the court approved of the decision just announced.
In Chevron, Ecuador, and corruption in the judiciary, is infected argues that political decisions.
The appellate court decision, Chevron, the long-running legal fight between the Ecuadorian complainants is the last link.
Ecuadorian lawsuit filed on behalf of 30 thousand years continued.
Indigenous groups in Ecuador, Texaco from 1972 to 1992, and in pits of 18 billion gallons of toxic substances Amazonlardaki river shed, he says.
Cleaned up the polluted region in the 1990s that spending $ 40 million in Chevron, Ecuador reached agreement in 1998 and all liability arındırıldığını says.
U.S. appeals court's decision in September, with the company stopped taking the penalty

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Google's patent attack

Internet giant Google, the technology giant IBM has acquired hundreds of additional patents.
Google, in the summer but last summer it had bought the patent from IBM about a thousand.
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Economics
Purchased 187 new patents and 36 applications (apps) reported that the majority of social networking systems.
One of the purchased patents from the United States in particular,''''communications networks allows users to identify areas of common interest.
Lawyers specializing in patent and intellectual property rights in England Vicki Salmon, the steps of the stage of planning the future of Google's existing technology exceeds the protection phase, he said.
Google, the competition last year to prevent the development of their own android operating systems accused in buying bogus patents.
However, some observers now, Google also followed a similar path, driverless cars on the technologies of IBM patents bought records there were.

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Hungary again the door of the IMF

Thus, the IMF is a European Union country knocked on the door to the discovery of the debt claim to the financial crisis that swept the European Union for some time was embodied in the.
For a while struggling with financial problems, and the foreign debt payment difficulties, as is known in Hungary and the IMF, the European Union economic policy imposed on it by the application in December refused to cut off talks with the IMF and the International Monetary Fund delegation had left Budapest.
Behind the debate in December, as the Hungarian Central Bank, the problem lay in the concrete.
The government was planning a new law to change the status of the Hungarian Central Bank.
Status of the central bank
In Brussels, this new law will eliminate completely the structure of an autonomous central bank, with a deeper sense of this economic chaos in the country sürükleyebileceğini stressed.
The Hungarian government, the law of the Central Bank, the EU Commission President Barroso's special instructions of the IMF delegation vazgeçmeyince fled Budapest, in the interviews is specifies a date has been lost.
The Hungarian government also failed to take a step back, such a law passed in parliament in late December and has changed the status of the Central Bank's management.
Independent observers, thanks to this law, the Hungarian government, the Central Bank reserves of 40 billion euros diktiğini eye, you want to use this resource in order to implement economic policy stressed.
In those days, and was sure of self-government by the government "without IMF financing in Hungary can provide its own resources," done by way of explanation.
Constitutional debates coup
Tensions between Budapest and in Brussels on 1 January, criticized for not being democratic and the new constitution, culminating with the advent of new legislation regulating the activities of the Central Bank.
"The Constitution, no" coming together of the opposition demonstrations and fifty thousand people rally, seemed to mark Budapest expect of a hot spring.
Observers, Hungary intensified pressures on the government's dayanmayacağını Budapest, Hungary, especially economic and current problems, such as Greece vurguluyorlardı you might be a process.
According to observers, the Achilles heel of the crisis and the Hungarian forint forintiydi signs began to decline as expected.
For months the value has already lost 10 per cent depreciation of the forint in the last two days was the last straw bardaktaki and the Hungarian government on Thursday announced that sit on the table with the IMF for a standby agreement.
What happens is that as a result of the government to give in to the EU and the IMF?
What will be asked to surrender, then the conflicts have been sitting down with the Hungarian government and national government line, but proud of Budapest, in front of the image without losing fans realize how much of these claims?
Answer to this question will be crucial in fulfilling the objectives of performance.

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Surrendered to the financial crisis, Bosnia's cultural heritage

National Library in Sarajevo, as he could not pay the heating bills, staff salaries can not also. Therefore, the temperature is slightly above zero in these days the library is closed heating system.
Some of the city's other cultural institutions in the ongoing dispute over how to meet the costs of the shut down entirely. This Week in History Museum closing its doors, the National Gallery was closed in early autumn.
At the National Museum, and the energy loss due to ödenemeyen invoices, section by section in the coming weeks is expected to begin closure.
Bosnia-Herzegovina, the central government and the government has no ministry of culture, a part of the country's national heritage institutions accepted the necessity of providing the funds do not carry.
Dayton Peace Agreement that ended the 1992-95 war between the country with a weak central government in Bosnia's divided.
Bosnian Serbs, the central government's control over cultural institutions and Serbian politicians are opposed to each ethnic group in the country wants to be responsible for their own cultural heritage.
Because of the deep divisions in Bosnia-Herzegovina, 2010, in October the central government, the establishment of a new election in the hosting country, lasted 14 months.
National Museum Director Adnan Busulaciç, told the Associated Press news agency, "except for your own irademiz, we found ourselves in a political war and we have become a political issue." he said.
Bosnian-Croat Federation, Minister of Culture Salmir Kaplan, the National Museum's commitment to meet the unpaid bills, but where it was stated that only a temporary solution.

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Israel, the former prime minister accused of taking bribes

Olmert about the case before it was opened there are three other corruption.
Jerusalem, which was built in the 90s of indictment prepared by prosecutors on the site of a luxury.
A luxury apartment overlooking Jerusalem's Holyland during the construction of the city's mayor, Ehud Olmert.
Prosecutors, mütehaitlerin development between 1993 and 2003 for permission to Olmert who was the mayor and other officials claim that millions of dollars in bribes.
Olmert has denied the accusations.
Ehud Olmert, the prime minister's term lasts three years, until his resignation in 2009 had been the shadow of corruption allegations.
Former prime minister before it opened about a bribery investigation, there is another.
Olmert is also a member of the cabinet before becoming prime minister in 2006 and while serving as mayor of Jerusalem, overseas funds to charitable organizations to find the tickets twice accused of faturalamakla.
Rejects all the allegations, Ehud Olmert, Kadima Party leader, was prime minister in the center continues, has decided to resign and clear the name of the çıkaracağını said.

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