George Osborne's Economic Policies Are Not Working

The UK is heading back into recession and will be among the slowest of the world’s largest economies to recover in the first half of this year, according to a study by the Paris-based thinktank, the OECD.

Only Italy will struggle over a longer period to return to growth, highlighting the difficult situation confronting the British government as it battles to boost confidence and get the economy back on track.

In recent weeks surveys have shown the business and consumer sentiment falling back after an initial boost earlier this year.

The Office for National Statistics added to the gloomy prognosis for the economy on Wednesday when it reported a bigger fall in output in the final three months of 2011 than first estimated. It said a previous 0.2% drop in output had underestimated the size of the fall, which further analysis found to be 0.3%.

The OECD, which produces quarterly figures showing year-on-year growth, said that UK output declined at an annual rate of 1.2% in the final quarter of 2011 and will decline at an annual rate of 0.4% in the first three months of 2012.

The OECD also warned that the eurozone remained in a fragile state and would struggle to grow for the rest of the year.

Germany and France will race ahead of the UK in the first half of the year but are forecast to slow down as the year ends.

Read more at the Guardian…

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Dominique Strauss-Kahn under investigation again

Former IMF chief Dominique Strauss-Kahn has been put under formal investigation by a French court over his alleged role in a prostitution ring.

Richard Malka, a lawyer for Strauss-Kahn, said he has been handed preliminary charges after investigating judges questioned him for several hours on Monday.

Under French law, preliminary charges mean authorities have reason to believe a crime was committed but allow more time for investigation.

The move is an esclatation of the case against the Socialist ex-finance minister but falls short of a formal charge.

Strauss-Kahn has denied the allegations against him, arguing that he was unaware women he met at parties organised by business associates in Lille, Paris and Washington were prostitutes.

Richard Malka said Strauss-Kahn denies wrongdoing and it is wrong to prosecute him for “simple libertine activity.”

Prosecutors said that the 62-year-old one-time presidential favourite had been released on $135,000 (100,000 euros) bail following Monday’s charges for an offence that could carry as many as 20 years in prison if convicted.

“Dominique Strauss-Kahn was placed under judicial control and was forbidden from contacting defendants, civil plaintiffs, witnesses and the press regarding the procedures,” prosecutors said in a statement.

Strauss-Kahn’s name came up as police were investigating a pimping operation that saw sex workers from brothels over the Belgian border being brought to France for orgies in high-class hotels in Lille and Paris.

Hiring sex workers is not illegal in France, but prosecutors are seeking proof that Strauss-Kahn was aware the parties were arranged by an organised pimping ring and paid for by other guests misusing company funds.

Several Lille-based businessmen and police officers have been accused of taking part in the ring. Read more at Aljazeera.com

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A gunman has shot dead a teacher and three children at a Jewish school in the French city of Toulouse.

He opened fire on the Ozar Hatorah school in the north-east of the city, also seriously injuring a teenage boy.

The attacker fled on a scooter, in similar style to the killer of three soldiers in two separate incidents in the same part of France last week.

Police say the same .45 calibre gun was used in all three attacks. The search for the killer is now under way.

A special service in memory of the victims will be held at one of the synagogues in Toulouse at 17:00 (16:00 GMT). There will also be a silent march in Paris at 20:00.

President Nicolas Sarkozy, who flew to Toulouse, described the attack as a “national tragedy”. He has called for all schools in France to observe a minute’s silence on Tuesday and vowed to hunt down the killer. Read more at the BBC….

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