Obama Warns of 'Scrooge Christmas' Without Deal

President Barack Obama gestures as he speaks at the Rodon Group, which manufactures over 95% of the parts for K' NEX Brands toys, Nov. 30, 2012, in Hatfield, Pa. (Susan Walsh/AP Photo)

HATFIELD, Pa. — President Obama today accused Republicans of putting Americans at risk of a “Scrooge Christmas” if they fail to extend middle class tax cuts, telling workers in Pennsylvania that a tax increase would be like a “lump of coal.”

“This is not some run-of-the-mill debate. This isn’t about which political party can come out on top in negotiations. We’ve got important decisions to make that are going to have a real impact on businesses and families all across the country,” the president said.

Obama made his remarks about the negotiations to avert the impending “fiscal cliff” as he stood before piles of toys at the Rodon Group factory, which manufactures Lincoln Logs, K’Nex and Angry Bird toys.

“I’ve been keeping my own naughty and nice lists for Washington. So you should keep your eye on who gets K’NEX this year,” he quipped. “There are going to be some members of Congress who get them, and some who don’t.” One day after the fiscal cliff talks between the White House and House Republicans took a turn for the worse, the president admitted there are going to be “some prolonged negotiations” to get the deficit under control because “you know, in Washington, nothing’s easy.”

“We’ve got some disagreements about the high-end tax cuts, right?” he said of his insistence on raising taxes on the top 2 percent as part of a broader deficit reduction deal. “That’s a disagreement that we’re going to have and we’ve got to sort out. But we already all agree, we say, on making sure middle-class taxes don’t go up. So let’s get that done. Let’s go ahead and take the fear out for the vast majority of American families so that they don’t have to worry about $2,000 coming out of their pockets starting next year.”

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Shortly after the president spoke, House Speaker John Boehner told reporters on Capitol Hill, “There’s a stalemate. Let’s not kid ourselves. I’m not trying to make this more difficult. If you’ve watched me over the last three weeks, I’ve been very guarded in what I had to say, because I don’t want to make it harder for me or the president or members of both parties to be able to find common ground.”

As Americans head out to shop for the holidays, the White House has warned consumer spending would take a hit of $200 billion in 2013, or roughly 1.4 percent of the GDP, if Congress could not reach a budget deal by the end of the year. As he did earlier this week, the president enlisted the help of Americans to pressure lawmakers to act on middle class tax cuts and said he’s ready to do his part. “If we can just get a few House Republicans on board, we can pass the bill in the House, it will land on my desk, and I am ready. I’ve got a bunch of pens ready to sign this bill… There are no shortage of pens in the White House,” he joked.

On Thursday, the White House put forth a proposal of $1.6 trillion in tax increases over the next 10 years, $50 billion in new stimulus spending, $400 billion in unspecified Medicare cuts, and a measure to effectively end Congress’s ability to vote on the debt limit. The offer, which closely mirrors the president’s previous deficit-reduction plans, lacked concessions to Republicans including detailed spending cuts and was strongly rejected.

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Factories like the Rodon Group’s will see a tax increase if a deal is reached in Democrats’ favor. But K’Nex CEO Michael Araten told ABC News his third-generation company wouldn’t be forced to change practices and had planned several years in advance to compensate for any tax increase.

“If on an individual basis we have some taxes we’ll deal with that,” he said. “But we don’t think that an incremental difference of 2 or 3 percent will meaningfully move our budgets in a way that impacts our hiring or investment plans. Everyone who has a job is going to have a job on Jan. 1 whether we go over the cliff or not.”

Striking into the Obama tour’s territory, today Majority Whip. Rep. Kevin McCarthy circulated a video of another Pennsylvania small business owner, Jerry Gorski of Gorski Engineering, explaining how the tax increase on the top 2 percent of income earners would harm his establishment.

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Strauss-Kahn, maid don't have deal yet: lawyers

NEW YORK: Lawyers for Dominique Strauss-Kahn, the disgraced former IMF chief, shot down reports Friday that he was ready to pay $6 million to a Manhattan maid accusing him of sexual assault -- but confirmed that he was negotiating.

In a statement seeking to dampen media speculation over an out-of-court settlement of the maid's civil suit, the lawyers stressed that Strauss-Kahn was talking, but had yet to ink a deal.

"The parties have discussed a resolution but there has been no settlement. Mr Strauss-Kahn will continue to defend the charges if no resolution can be reached," attorneys William Taylor and Amit Mehta said in a brief statement.

The attorneys repeated an earlier denial of a report in French daily Le Monde specifying that Strauss-Kahn, once seen as France's likely next president, was prepared to pay off Sofitel room cleaning lady Nafissatou Diallo.

"Media reports that Dominique Strauss-Kahn has agreed to pay $6 million to settle the civil case are flatly false," Taylor and Mehta said.

According to Le Monde, Strauss-Kahn was to raise the money by borrowing $3 million from a bank and the rest from his estranged wife, Anne Sinclair, a well-known former newsreader who inherited a fortune from her art dealer father.

Diallo's legal team did not comment, but an earlier statement from Strauss-Kahn's legal team had already called the Le Monde report "imaginary and mistaken."

The latest statement did make official that Strauss-Kahn is negotiating with Diallo to end the sordid 18-month legal saga, a development first reported late Thursday by The New York Times, quoting unidentified sources.

Until now, Strauss-Kahn's lawyers repeatedly said they would not agree to a deal, while Diallo's legal team insisted she wanted her day in court to confront her alleged abuser.

Judge Douglas McKeon, who is presiding over the civil case in New York, told AFP "there may be a court session as early as next week," but declined to comment further.

Diallo's allegation of attempted rape in May 2011 triggered a stunning fall from grace for Strauss-Kahn, who had been seen as close to announcing he would run in an upcoming French presidential election.

Criminal charges were thrown out when Manhattan prosecutors said Diallo's testimony wouldn't stand up in court. She then filed her own civil lawsuit in a Bronx court, alleging that the 63-year-old leapt on her, naked, and forced her into oral sex.

Strauss-Kahn, who says a hurried but consensual sex act took place in his luxury room, returned immediately to France after the criminal case disintegrated.

However, by then Strauss-Kahn's career was in tatters, his marriage was on the rocks and he soon faced a string of other sex-related investigations by French authorities.

In France, Strauss-Kahn will learn December 19 if he is to face further investigation into pimping charges arising from allegations that he and associates arranged sex parties with prostitutes in the northern French city of Lille.

His lawyers have filed a request for the charges to be dismissed.

French prosecutors last month dropped an investigation into Strauss-Kahn's alleged participation in a gang rape after the woman involved said she had consented and was not pressing charges.

Strauss-Kahn has also been accused by 32-year-old author Tristane Banon of trying to rape her in 2002.

French investigating magistrates questioned Strauss-Kahn and his accuser and concluded that while there appeared to be evidence of a sexual assault, the alleged attack had occurred too long ago to be prosecuted.

-AFP/ac

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Palestinians win implicit U.N. recognition of sovereign state

UNITED NATIONS (Reuters) - The 193-nation U.N. General Assembly on Thursday overwhelmingly approved the de facto recognition of a sovereign Palestinian state after Palestinian President Mahmoud Abbas called on the world body to issue its long overdue "birth certificate."

There were 138 votes in favor, nine against and 41 abstentions. Three countries did not take part in the vote to upgrade the Palestinian Authority's observer status at the United Nations to "non-member state" from "entity."

The assembly approved the upgrade despite threats by the United States and Israel to punish the Palestinians by withholding funds for the West Bank government. U.N. envoys said Israel might avoid harsh retaliation as long as the Palestinians did not seek to join the International Criminal Court.

The much-anticipated vote came after Abbas denounced Israel for its "aggressive policies and the perpetration of war crimes" from the U.N. podium, remarks that elicited a furious response from the Jewish state.

"Sixty-five years ago on this day, the United Nations General Assembly adopted resolution 181, which partitioned the land of historic Palestine into two states and became the birth certificate for Israel," Abbas told the 193-nation assembly after receiving a standing ovation.

"The General Assembly is called upon today to issue a birth certificate of the reality of the State of Palestine," he said.

Israeli Prime Minister Benjamin Netanyahu responded quickly, condemning Abbas' critique of Israel as "hostile and poisonous," and full of "false propaganda."

"These are not the words of a man who wants peace," Netanyahu also said in a statement released by his office in Israel.

At least 17 European nations voted in favor of the Palestinian resolution, including Austria, France, Italy, Norway and Spain. Abbas had focused his lobbying efforts on Europe, which supplies much of the aid the Palestinian Authority relies on. Britain, Germany and others chose to abstain.

The Czech Republic was unique in Europe, joining the United States, Israel, Canada, Panama and tiny Pacific Island states likes Nauru, Palau and Micronesia in voting against the move.

After the vote, U.S. Ambassador to the United Nations Susan Rice called for the immediate resumption of peace talks.

"The Palestinian people will wake up tomorrow and find that little about their lives has changed save that the prospects of a durable peace have only receded," she said.

"The United States calls upon both the parties to resume direct talks without preconditions on all the issues that divide them and we pledge that the United States will be there to support the parties vigorously in such efforts," Rice said.

She added that both parties should "avoid any further provocative actions in the region, in New York or elsewhere."

(Andrew Quinn in Washington, Noah Browning in Ramallah, Jeffrey Heller in Jerusalem, Michelle Nichols in New York, Robert Mueller in Prague, Gabriela Baczynska and Reuters bureau in Europe and elsewhere; Editing by Peter Cooney)

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White paper on irrigation a dud, Maharashtra skirts corruption

MUMBAI: The much-awaited white paper on irrigation, which was placed before the state cabinet on Thursday, has turned out to be a dud. As expected, it skirts the core issue of corruption and irregularities in the water resources department, and merely collates data on projects approved in the last decade.

Addressing a news conference on Thursday night, chief minister Prithviraj Chavan said the two-volume report, which was not discussed in the cabinet meeting — with observers saying it was part of a Congress strategy — will be uploaded on the state government's website by Friday. The first volume addresses issues pertaining to land brought under irrigation, while the second sheds light on big and medium projects executed by five state irrigation corporations.

NCP leader Ajit Pawar, who resigned as deputy chief minister last September following a series of exposes in TOI, is believed to be desperate to make a comeback in the government based on the findings of the white paper, which many in official circles described as a "whitewash". Pawar was the state's water resources minister between 1999 and 2010, when most of the dubious contracts were awarded to select contractors. Political sources said infighting between rival groups in the NCP may scuttle Pawar's re-entry plans.

According to an estimate, as much as Rs 35,000 crore may have been siphoned off by the politician-bureaucrat-contractor nexus in dud irrigation projects in the past ten years.

Government sources said only a criminal investigation will unravel the extent of the scam, described as the largest in Maharashtra's history.

"If there is an independent judicial inquiry, the Democratic Front government will collapse, considering the involvement of powerful politicians and officials," they said.

As reported by TOI on Thursday, the white paper has justified irrigation project cost escalations, blaming them on delays in relief and rehabilitation, land acquisition and environmental clearances. It says the escalations were commensurate with hikes approved for similar projects in other states.

Debunking the claim that Rs 70,000 crore was spent on irrigation projects in the past ten years, the document puts the figure at just Rs 42,000 crore. The paper, prepared by the state water resources department, claims that of this amount, Rs 30,000 crore was spent towards relief and rehabilitation; Rs 5,000 crore is shown under administrative expenses. The paper adds that over 30% of the relief and rehabilitation cost went towards projects that are yet to be completed. It is pertinent to note that departments controlled by the Congress are responsible for relief and rehabilitation and land acquisition.

The paper says 69 ongoing mega projects and 189 medium projects were taken up under the Accelerated Irrigation Benefit Programme (AIBP) and bore approvals of the Central Water Commission and the Planning Commission. It says the central agencies ratified the cost escalations.

The paper says the scheduled rates for materials used by the department while awarding contracts (department scheduled rates) were lower than those used for similar projects in other states and also less than rates used by other agencies in Maharashtra like the public works department and the MMRDA.

The paper claims that the scope of project work was often increased on account of demand from local politicians. The document gives status reports for mega projects, including details like original cost, escalations and their reasons.

Of the state's 226 lakh hectares of cultivable land, the white paper says irrigated land stood at 48.5 lakh hectares in 2010, which it says is a 28% increase from 2001 when the area was 37 lakh hectares. The paper says the cropped irrigated area (the ratio of irrigation potential generation to land under irrigation) grew by 5.17% during the ten-year period.

According to the economic status report (ESR), the cropped irrigated area only rose by 0.1% during this period (from 17.8% in 2001 to 17.9% in 2010). The chief minister had cited ESR data while asking the department to prepare the white paper in May this year.

The paper also refuted allegations that the department had created liabilities worth Rs 70,000 crore. It said that while projects worth Rs 80,000 crore were in the pipeline, liabilities had been booked only for Rs 35,000 crore.

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Clinton releases road map for AIDS-free generation

WASHINGTON (AP) — In an ambitious road map for slashing the global spread of AIDS, the Obama administration says treating people sooner and more rapid expansion of other proven tools could help even the hardest-hit countries begin turning the tide of the epidemic over the next three to five years.

"An AIDS-free generation is not just a rallying cry — it is a goal that is within our reach," Secretary of State Hillary Rodham Clinton, who ordered the blueprint, said in the report.

"Make no mistake about it, HIV may well be with us into the future but the disease that it causes need not be," she said at the State Department Thursday.

President Barack Obama echoed that promise.

"We stand at a tipping point in the fight against HIV/AIDS, and working together, we can realize our historic opportunity to bring that fight to an end," Obama said in a proclamation to mark World AIDS Day on Saturday.

Some 34 million people worldwide are living with HIV, and despite a decline in new infections over the last decade, 2.5 million people were infected last year.

Given those staggering figures, what does an AIDS-free generation mean? That virtually no babies are born infected, young people have a much lower risk than today of becoming infected, and that people who already have HIV would receive life-saving treatment.

That last step is key: Treating people early in their infection, before they get sick, not only helps them survive but also dramatically cuts the chances that they'll infect others. Yet only about 8 million HIV patients in developing countries are getting treatment. The United Nations aims to have 15 million treated by 2015.

Other important steps include: Treating more pregnant women, and keeping them on treatment after their babies are born; increasing male circumcision to lower men's risk of heterosexual infection; increasing access to both male and female condoms; and more HIV testing.

The world spent $16.8 billion fighting AIDS in poor countries last year. The U.S. government is the leading donor, spending about $5.6 billion.

Thursday's report from PEPFAR, the President's Emergency Plan for AIDS Relief, outlines how progress could continue at current spending levels — something far from certain as Congress and Obama struggle to avert looming budget cuts at year's end — or how faster progress is possible with stepped-up commitments from hard-hit countries themselves.

Clinton warned Thursday that the U.S. must continue doing its share: "In the fight against HIV/AIDS, failure to live up to our commitments isn't just disappointing, it's deadly."

The report highlighted Zambia, which already is seeing some declines in new cases of HIV. It will have to treat only about 145,000 more patients over the next four years to meet its share of the U.N. goal, a move that could prevent more than 126,000 new infections in that same time period. But if Zambia could go further and treat nearly 198,000 more people, the benefit would be even greater — 179,000 new infections prevented, the report estimates.

In contrast, if Zambia had to stick with 2011 levels of HIV prevention, new infections could level off or even rise again over the next four years, the report found.

Advocacy groups said the blueprint offers a much-needed set of practical steps to achieve an AIDS-free generation — and makes clear that maintaining momentum is crucial despite economic difficulties here and abroad.

"The blueprint lays out the stark choices we have: To stick with the baseline and see an epidemic flatline or grow, or ramp up" to continue progress, said Chris Collins of amFAR, the Foundation for AIDS Research.

His group has estimated that more than 276,000 people would miss out on HIV treatment if U.S. dollars for the global AIDS fight are part of across-the-board spending cuts set to begin in January.

Thursday's report also urges targeting the populations at highest risk, including gay men, injecting drug users and sex workers, especially in countries where stigma and discrimination has denied them access to HIV prevention services.

"We have to go where the virus is," Clinton said.

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Obama Lunches With Romney as 'Cliff' Talks Falter

President Obama and Mitt Romney met face to face today for the first time since the election, breaking bread at the White House as talks over the looming "fiscal cliff" appeared to be faltering on Capitol Hill.

"I bet it was and is quite tasty," Obama spokesman Jay Carney said of the lunch as it was underway, "because [the chefs] know how to prepare very fine meals."

The menu included white turkey chili and Southwestern grilled chicken salad, the White House said in a written statement following the meal. The discussion was said to center on "America's leadership in the world and the importance of maintaining that leadership position in the future."

The former rivals concluded their 70-minute encounter with a visit to the Oval Office, the symbolic center of American power to which Romney has long tried to accede, shaking hands before the iconic "Resolute" presidential desk.

"Governor Romney congratulated the President for the success of his campaign and wished him well over the coming four years," the White House said. "They pledged to stay in touch, particularly if opportunities to work together on shared interests arise in the future."

The lunch took place in an elegant private dining room in the West Wing overlooking the manicured gardens of the White House South Lawn. Romney was seen coming and going from a side entrance in a black SUV. The former GOP nominee arrived without fanfare or entourage, opening his own car door both times.

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President Obama said during a news conference earlier this month that he was interested in speaking with Romney about his ideas on jobs and economic growth, noting that his rival had "presented some ideas during the course of the campaign that I actually agree with."

Administration officials said there was no formal agenda for today's lunch or a "specific ask" or assignment for the governor.

Romney, who has kept a relatively low profile since losing the election on Nov. 6, has not publicly addressed Obama's post-election overtures or the prospect of working together. Both men have little personal history and had a chilly relationship during the campaign.

Senior Romney campaign strategist Eric Fehrnstrom called Obama's lunch invitation "gracious" and said that Romney was "glad to accept." The governor also met earlier Thursday in Washington with former running mate Rep. Paul Ryan of Wisconsin.

The Obama-Romney detente came as talks between the White House and congressional Republicans to prevent the economy from going over the "fiscal cliff" of mandatory spending cuts and tax increases set for Jan. 1 appeared to hit a snag.

Treasury Secretary Timothy Geithner, the lead White House negotiator in the talks, and White House legislative chief Rob Nabors held a flurry of meetings today with congressional leaders of both parties in the House and Senate.

But following sessions, top Republicans poured cold water on what had been budding optimism of progress toward a deal.

"No substantive progress has been made over the last two weeks," said House Speaker John Boehner at a press conference.

"We know what the menu is. What we don't know is what the White House is willing to do to get serious about solving our debt crisis," he said, accusing the administration of failing to detail plans for significant spending cuts to correspond with desired tax revenue increases.

Obama and Boehner spoke by phone Wednesday night, sources told ABC News, their second conversation in four days. Boehner described it as "direct and straightforward," but suggested "disappointment" with Obama's reticence to waver on hiking tax rates on the wealthy.

Senate Minority Leader Mitch McConnell, R-Ky., in advance of his meeting with Geithner, said everything the White House has put down on the table so far has been "counterproductive," and he hopes that the Treasury Secretary brings "a specific plan from the president" with him today.

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Long hard road for Spain in recession: OECD

MADRID: Spain is engulfed in a long recession with little hope of a quick recovery and its towering unemployment rate will soar further, the OECD club of industrialised nations said Thursday.

Spain must quickly fix its banks to avert the "substantial risk" of being cut off from external financing and plunging into an even deeper recession, the body warned in a report.

"The economy is undergoing a prolonged recession," the Organisation for Economic Cooperation and Development said in a report, citing the 2008 global financial crisis and the bust of a Spanish housing boom.

"The prospect of an immediate recovery remains remote," the OECD said, noting that people and businesses were struggling to repay loans and the nation was stuck in a debt crisis.

OECD secretary-general Angel Gurria called for Spain's European partners to make a declaration that they would support Madrid in any bailout request, though it has staunchly resisted making such a call over recent months.

Addressing Spain's 25-percent unemployment rate, the OECD urged drastic labour market changes, on top of much-protested reforms already taken by conservative Prime Minister Mariano Rajoy that make it cheaper to fire staff.

It called for cutting compensation for unfair dismissal, considering abolishing an extension of industry-wide collective bargaining, and more training and job-search help for the young.

Gurria highlighted the level of youth unemployment -- more than 52 percent among 16 to 24-year-olds. The OECD forecast the overall jobless rate would reach 26.9 percent in 2013.

Spain's economy has been shrinking for 15 months, with output slumping 0.3 percent in the third quarter, according to official data, and the recession is expected to last right through 2013.

Spain's "immediate policy priority" is to restore trust in banks by fixing weak balance sheets, making orderly resolution of non-viable banks, and shifting bad assets into a new bad bank, the body said.

"In the short-term, there is a substantial risk that the economy, notably the banks, will remain cut off from external funding," it said.

"This would deepen the recession, especially if measures taken at the European level provide ineffective in easing tensions in interbank and sovereign markets."

Spain's banks are struggling with loans turned sour after the property crash.

Eurozone powers agreed in June to extend to Madrid an emergency rescue loan of up to 100 billion euros ($129 billion) to fix their balance sheets and reform the sector.

Now, Spain also is pondering whether to apply to the eurozone's bailout fund for a sovereign rescue, which would open the way for the European Central Bank to buy Spanish bonds and curb Madrid's borrowing costs.

"The thing we need now is to ask that Spain's European partners, given its performance, make an unequivocal declaration that in case Spain asks for support, that this support will be given," Gurria told a news conference.

The ECB's offer to make unlimited purchases of stricken states' bonds if they accept strict conditions has brought down Spain's interest rates even before Madrid decides whether to seek the help.

On another sensitive reform that has fuelled mass street protests, the OECD urged the Spanish government to broaden a hike in sales tax to more goods and services and increase tax on fuel.

The Madrid stock exchange strengthened Thursday, with the IBEX-35 index closing 1.74 higher as tensions eased over Greek debt. Banks' shares picked up after sharp losses Wednesday linked to their restructuring.

-AFP/ac

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Egypt assembly seeks to wrap up constitution

CAIRO (Reuters) - The assembly writing Egypt's constitution said it could wrap up a final draft later on Wednesday, a move the Muslim Brotherhood sees as a way out of a crisis over a decree by President Mohamed Mursi that protesters say gives him dictatorial powers.

But as Mursi's opponents staged a sixth day of protests in Tahrir Square, critics said the Islamist-dominated assembly's bid to finish the constitution quickly could make matters worse.

Two people have been killed and hundreds injured in countrywide protest set off by Mursi's decree.

The Brotherhood hopes to end the crisis by replacing Mursi's controversial decree with an entirely new constitution that would need to be approved in a popular referendum, a Brotherhood official told Reuters.

It is a gamble based on the Islamists' belief that they can mobilize enough voters to win the referendum: they have won all elections held since Hosni Mubarak was toppled from power.

But the move seemed likely to deepen divisions that are being exposed in the street.

The Muslim Brotherhood and its Islamist allies called for protests on Saturday in Tahrir Square, setting the stage for more confrontation with their opponents, who staged a mass rally there on Tuesday.

The constitution is one of the main reasons Mursi is at loggerheads with non-Islamist opponents. They are boycotting the 100-member constitutional assembly, saying the Islamists have tried to impose their vision for Egypt's future.

The assembly's legal legitimacy has been called into question by a series of court cases demanding its dissolution. Its popular legitimacy has been hit by the withdrawal of members including church representatives and liberals.

"We will start now and finish today, God willing," Hossam el-Gheriyani, the assembly speaker, said at the start of its latest session in Cairo, saying Thursday would be "a great day".

"If you are upset by the decree, nothing will stop it except a new constitution issued immediately," he said. Three other members of the assembly told Reuters there were plans to put the document to a vote on Thursday.

ENTRENCHING AUTHORITARIANISM

Just down the road from the meeting convened at the Shura Council, protesters were again clashing with riot police in Tahrir Square. Members of the assembly watched on television as they waited to go into session.

"The constitution is in its last phases and will be put to a referendum soon and God willing it will solve a lot of the problems in the street," said Talaat Marzouk, an assembly member from the Salafi Nour Party, as he watched the images.

But Wael Ghonim, a prominent activist whose online blogging helped ignite the anti-Mubarak uprising, said a constitution passed in such circumstances would "entrench authoritarianism".

The constitution is supposed to be the cornerstone of a new, democratic Egypt following Mubarak's three decades of autocratic rule. The assembly has been at work for six months. Mursi had extended its December 12 deadline by two months - extra time that Gheriyani said was not needed.

The constitution will determine the powers of the president and parliament and define the roles of the judiciary and a military establishment that had been at the heart of power for decades until Mubarak was toppled. It will also set out the role of Islamic law, or sharia.

The effort to conclude the text quickly marked an escalation, said Nathan Brown, a professor of political science at George Washington University in the United States.

"It may be regarded with hostility by a lot of state actors too, including the judiciary," he said.

Leading opposition and former Arab League chief figure Amr Moussa slammed the move. He walked out of the assembly earlier this month. "This is nonsensical and one of the steps that shouldn't be taken, given the background of anger and resentment to the current constitutional assembly," he told Reuters.

Once drafted, the constitution will go to Mursi for approval, and he must then put it to a referendum within 15 days, which could mean the vote would be held by mid-December.

COURTS DECLARE STRIKE

Deepening the crisis further on Wednesday, Egypt's Cassation and Appeals courts said they would suspend their work until the constitutional court rules on the decree.

The judiciary, largely unreformed since the popular uprising that unseated Mubarak, was seen as a major target in the decree issued last Thursday, which extended his powers and put his decisions temporarily beyond legal challenge.

"The president wants to create a new dictatorship," said 38-year-old Mohamed Sayyed Ahmed, an unemployed man, in Tahrir.

Showing the depth of distrust of Mursi in parts of the judiciary, a spokesman for the Supreme Constitutional Court, which earlier this year declared void the Islamist-led parliament, said it felt under attack by the president.

In a speech on Friday, Mursi praised the judiciary as a whole but referred to corrupt elements he aimed to weed out.

"The really sad thing that has pained the members of this court is when the president of the republic joined, in a painful surprise, the campaign of continuous attack on the Constitutional Court," said the spokesman Maher Samy.

Senior judges have been negotiating with Mursi about how to restrict his new powers.

Mursi's administration insists that his actions were aimed at breaking a political logjam to push Egypt more swiftly towards democracy, an assertion his opponents dismiss.

The West worries about turbulence in a nation that has a peace treaty with Israel and is now ruled by Islamists they long kept at arms length.

Trying to ease tensions with judges, Mursi said elements of his decree giving his decisions immunity applied only to matters of "sovereign" importance, a compromise suggested by the judges.

A constitution must be in place before a new parliament can be elected, and until that time Mursi holds both executive and legislative powers. An election could take place in early 2013.

(Additional reporting by Tom Perry and Marwa Awad; Writing by Edmund Blair and Tom Perry; Editing by Will Waterman and Giles Elgood)

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Indira Gandhi lent Indian politics the dynastic shift: Ramachandra Guha

BANGALORE: The Congress led by Indira Gandhi fostered a generation of hero worship and dynasty politics after 1969. This inspired many others like Muthuvel Karunanidhi, who started off with noble intentions to fight against caste discriminations, to do the same and has led to a centralization of politics in present India, said Ramachandra Guha, on Wednesday.

He was speaking during the launch of his latest book, Patriots and Partisans.

The 54-year-old historian went on to add that Jawaharlal Nehru, one of the most charismatic leaders of Indian politics, has been slowly losing his popularity because of the Congress's dynastic politics.

"Sins of seven successive generations have been bestowed on Nehru," he said light-heartedly.

The highest paid non-fiction writer of the country also slammed the phenomenon called the 'Congress chamchagiri'. "I saw a long queue of Congress party members waiting outside Rahul Gandhi's house during his birthday, a couple of years ago, braving scorching sun. Nevertheless, Rahul didn't come out to greet them while the 100 kilogram cake they had brought for him disintegrated leaving a trail from the Congress general secretary's house till the Indira Gandhi circle," he said.

He said that scientific institutions in Delhi couldn't achieve the success of ones in other parts of the country as officials chosen in the capital-based institutions are often selected on the recommendation of politicians.

Guha went on to add that massacre of Muslims in Hyderabad during the annexation of the state by the Indian army happened before the constitution came into being in 1950, but it is sad that the perpetrators of 1984 Sikh massacre and 2002 Muslim massacre in Gujarat, which were initiated by Congress and BJP, respectively, haven't still been punished.

He slammed right and left wing politicians, saying that the citizens have allowed the Hindu rightists' claims to be truly patriots of the country because the left is often considered anti-patriotic because their fatherland has always been a different country - depending upon the prevalence of Marxists movements in these countries, like China, the USSR, Cuba and currently Venezuela - and also due to the high decibel levels and angry outbreaks of the saffron brigade.

"Violence unleashed by left ( Naxalites) and right (Hindu fundamentalists) is against democracy, liberalism, religious plularism and tolerance, the idea that our Constitution promotes. Citizens should protect the country from these extremisms," he said.

TOO EARLY

Guha had a word of advice for the Arvind Kejriwal-launched Aam Aadmi Party, saying that it's too early for them to participate in the 2014 general elections. "Their current economic policies are a bit naive," he added.

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Simple measures cut infections caught in hospitals

CHICAGO (AP) — Preventing surgery-linked infections is a major concern for hospitals and it turns out some simple measures can make a big difference.

A project at seven big hospitals reduced infections after colorectal surgeries by nearly one-third. It prevented an estimated 135 infections, saving almost $4 million, the Joint Commission hospital regulating group and the American College of Surgeons announced Wednesday. The two groups directed the 2 1/2-year project.

Solutions included having patients shower with special germ-fighting soap before surgery, and having surgery teams change gowns, gloves and instruments during operations to prevent spreading germs picked up during the procedures.

Some hospitals used special wound-protecting devices on surgery openings to keep intestine germs from reaching the skin.

The average rate of infections linked with colorectal operations at the seven hospitals dropped from about 16 percent of patients during a 10-month phase when hospitals started adopting changes to almost 11 percent once all the changes had been made.

Hospital stays for patients who got infections dropped from an average of 15 days to 13 days, which helped cut costs.

"The improvements translate into safer patient care," said Dr. Mark Chassin, president of the Joint Commission. "Now it's our job to spread these effective interventions to all hospitals."

Almost 2 million health care-related infections occur each year nationwide; more than 90,000 of these are fatal.

Besides wanting to keep patients healthy, hospitals have a monetary incentive to prevent these infections. Medicare cuts payments to hospitals that have lots of certain health care-related infections, and those cuts are expected to increase under the new health care law.

The project involved surgeries for cancer and other colorectal problems. Infections linked with colorectal surgery are particularly common because intestinal tract bacteria are so abundant.

To succeed at reducing infection rates requires hospitals to commit to changing habits, "to really look in the mirror and identify these things," said Dr. Clifford Ko of the American College of Surgeons.

The hospitals involved were Cedars-Sinai Medical Center in Los Angeles; Cleveland Clinic in Ohio; Mayo Clinic-Rochester Methodist Hospital in Rochester, Minn.; North Shore-Long Island Jewish Health System in Great Neck, NY; Northwestern Memorial Hospital in Chicago; OSF Saint Francis Medical Center in Peoria, Ill.; and Stanford Hospital & Clinics in Palo Alto, Calif.

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Online:

Joint Commission: http://www.jointcommission.org

American College of Surgeons: http://www.facs.org

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AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner

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