Boehner rejects Democrats' push for immediate vote on gun bill









WASHINGTON -- House Speaker John A. Boehner rejected calls from Democrats to schedule a vote on new gun restrictions before the end of the year, saying he wants to wait for recommendations from a newly formed White House task force before committing to a legislative response to the mass shooting at a Connecticut school.

“When the vice president's recommendations come forward, we'll certainly take them into consideration,’’ Boehner (R-Ohio) said Thursday in his first public comments on calls for new gun legislation since the slaying of 20 students and six adults at Sandy Hook Elementary School. “But at this point I think our hearts and souls ought to be to think about those victims in this horrible tragedy.”


President Obama on Wednesday said he had asked Vice President Joe Biden to lead a task force to come up with initiatives to stem gun violence by the end of next month. House Democratic Leader Nancy Pelosi of San Francisco and fellow Democrats have pressed for an immediate vote on a long-stalled bill that would ban ammunition magazines containing more than 10 rounds.





Obama has outlined a slightly slower pace for action, urging Congress to hold a vote “in a timely manner” in the new year.


Both Obama and Democrats on Capitol Hill say they are trying to seize on what appears to be a burst of momentum behind gun legislation in the wake of the Newtown, Conn., tragedy. Similar efforts initiated after other high-profile shootings faltered after national attention veered elsewhere.


Biden held the first meeting of the task force Thursday, gathering several cabinet members and White House officials with a group of local law enforcement leaders. In remarks before the meeting, the vice president noted his work on the 1994 crime bill, which banned the sale of some assault weapons, and said he would again be working closely with police groups to craft proposals.


“What I think the public has learned about you is you have a much more holistic view of how to deal with violence on our streets and in our country that you’re ever given credit for,” Biden told the law enforcement officials. “I want to hear your views because, for anything to get done, we’re going to need your advocacy.”


richard.simon@latimes.com


Twitter: @richardsimon11


kathleen.hennessey@latimes.com


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Net Neutrality, Data-Cap Legislation Lands in Senate



A proposal forbidding internet service providers from turning the data-cap meter off to grant a so-called internet fast lane to preferential online services was introduced Thursday in the Senate.


The bill by Sen. Ron Wyden (D-Oregon) comes a week after a report found that the institutionalization of data caps by ISPs is geared toward profiteering rather than the stated goal of managing traffic congestion.


“A covered internet service provider may not, for purposes of measuring data usage or otherwise, provide preferential treatment of data that is based on the source or the content of the data,” (.pdf) Wyden’s bill reads.


Ars Technica noted that Comcast had not counted its Xbox video-streaming app against its data caps. Comcast, however, no longer enforces its data caps.


“Data caps create challenges for consumers and run the risk of undermining innovation in the digital economy if they are imposed bluntly and not designed to truly manage network congestion,” Wyden said in a statement.


Among other things, the proposal demands a standardized method for measuring data and also questions data caps altogether. That’s because it grants the Federal Communications Commission with regulatory power over data-cap pricing.


“The commission shall evaluate a data cap proposed by an internet service provider to determine whether the data cap functions to reasonably limit network congestion in a manner that does not unnecessarily discourage use of the internet,” according to the proposal.


That means internet companies might have to explain why the caps are imposed at low-traffic times, such as in the middle of the night.


The proposal was immediately applauded by the digital rights group Public Knowledge.


“Data caps create an artificial scarcity in the broadband market that limits consumer choice and hinders the creation of new competitive content online,” Christopher Lewis, the group’s vice president, said in a statement.


For the moment, the proposal is going nowhere as lawmakers are expected to adjourn for the year in the coming days.



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Putin offers French tax row actor Depardieu a Russian passport






MOSCOW (Reuters) – President Vladimir Putin offered French actor Gerard Depardieu a Russian passport on Thursday, saying he would welcome the 63-year-old celebrity who is embroiled in a bitter tax row with France‘s socialist government.


Weighing into a dispute over a hike in taxes, Putin heaped praise on Depardieu, making the offer of citizenship in response to a question during his annual televised press conference.






“If Gerard really wants to have either a residency permit in Russia or a Russian passport, we will assume that this matter is settled and settled positively,” Putin said.


French daily Le Monde reported on Tuesday that Depardieu had told his close friends he was considering three options to escape France’s new tax regime: moving to Belgium, where he owns a home, relocating to Montenegro, where he has a business, or fleeing to Russia.


“Putin has already sent me a passport,” Le Monde quoted the actor as jokingly saying.


Depardieu is well-known in Russia where he has appeared in many advertising campaigns, and in 2012 he was one of several Western celebrities invited to celebrate the birthday of Ramzan Kadyrov, Chechnya’s Kremlin-backed leader.


He also worked in Russia last year on a film about the life and times of the eccentric Russian monk Grigory Rasputin.


He has already inquired about how to obtain Belgian residency rights and said he plans to hand in his French passport and social security card.


In what has become an ugly public dispute, France’s Prime Minister Jean-Marc Ayrault criticized Depardieu’s announcement as “pathetic” and unpatriotic. The actor hit back, accusing France of punishing success and talent.


But Putin said he thought the feud was the result of a “misunderstanding”.


The 60-year-old former KGB spy said he was very friendly with Depardieu, saying he thought the actor considered himself a Frenchman who loved the culture and history of his homeland.


Belgian residents do not pay a wealth tax, which in France is now levied on those with assets over 1.3 million euros ($ 1.7 million). Nor do they pay capital gains tax on share sales.


Hollande is also pressing ahead with plans to impose a 75-percent super tax on income over 1 million euros.


Russia has a flat income tax rate of 13 percent.


(Reporting by Alexei Anishchuk; Additional reporting by John Irish in Paris; Writing by Gabriela Baczynska; Editing by Alissa de Carbonnel and Andrew Osborn)


Celebrity News Headlines – Yahoo! News





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The Consumer: Grapefruit and Drugs Often Don't Mix

The patient didn’t overdose on medication. She overdosed on grapefruit juice.

The 42-year-old was barely responding when her husband brought her to the emergency room. Her heart rate was slowing, and her blood pressure was falling. Doctors had to insert a breathing tube, and then a pacemaker, to revive her.

They were mystified: The patient’s husband said she suffered from migraines and was taking a blood pressure drug called verapamil to help prevent the headaches. But blood tests showed she had an alarming amount of the drug in her system, five times the safe level.

Did she overdose? Was she trying to commit suicide? It was only after she recovered that doctors were able to piece the story together.

“The culprit was grapefruit juice,” said Dr. Unni Pillai, a nephrologist in St. Louis, Mo., who treated the woman several years ago and later published a case report. “She loved grapefruit juice, and she had such a bad migraine, with nausea and vomiting, that she could not tolerate anything else.”

The previous week, she had been subsisting mainly on grapefruit juice. Then she took verapamil, one of dozens of drugs whose potency is dramatically increased if taken with grapefruit. In her case, the interaction was life-threatening.

Last month, Dr. David Bailey, a Canadian researcher who first described this interaction more than two decades ago, released an updated list of medications affected by grapefruit. There are now 85 such drugs on the market, he noted, including common cholesterol-lowering drugs, new anticancer agents, and some synthetic opiates and psychiatric drugs, as well as certain immunosuppressant medications taken by organ transplant patients, some AIDS medications, and some birth control pills and estrogen treatments. (The full list is online; your browser must be configured to handle PDF files.)

“What drove us to write this paper was the number of new drugs that have come out in the last four years,” said Dr. Bailey, a clinical pharmacologist at the Lawson Health Research Institute, who first discovered the interaction by accident in the 1990s.

How often such reactions occur, however, and how often they are triggered in people consuming regular amounts of juice is debated by scientists. Dr. Bailey believes many cases are missed because doctors don’t think to ask if patients are consuming grapefruit or grapefruit juice.

Even if such incidents are rare, Dr. Bailey argued, they are predictable and entirely avoidable. Many hospitals no longer serve juice, and some prescriptions carry stickers warning patients to avoid grapefruit.

“The bottom line is that even if the frequency is low, the consequences can be dire,” he said. “Why do we have to have a body count before we make changes?”

For 43 of the 85 drugs now on the list, consumption with grapefruit can be life-threatening, Dr. Bailey said. Many are linked to an increase in heart rhythm, known as torsade de pointes, that can lead to death. It can occur even without underlying heart disease and has been seen in patients taking certain anticancer agents, erythromycin and other anti-infective drugs, some cardiovascular drugs like quinidine, the antipsychotics lurasidone and ziprasidone, gastrointestinal agents cisapride and domperidone, and solifenacin, used to treat overactive bladders.

Taken with grapefruit, other drugs like fentanyl, oxycodone and methadone can cause fatal respiratory depression. The interaction also can be caused by other citrus fruits, including Seville oranges, limes and pomelos; one published case report has suggested that pomegranate may increase the potency of certain drugs.

Older people may be more vulnerable, because they are more likely to be both taking medications and drinking more grapefruit juice. The body’s ability to cope with drugs also weakens with age, experts say.

Under normal circumstances, the drugs are metabolized in the gastrointestinal tract, and relatively little is absorbed, because an enzyme in the gut called CYP3A4 deactivates them. But grapefruit contains natural chemicals called furanocoumarins, that inhibit the enzyme, and without it the gut absorbs much more of a drug and blood levels rise dramatically.

For example, someone taking simvastatin (brand name Zocor) who also drinks a small 200-milliliter, or 6.7 ounces, glass of grapefruit juice once a day for three days could see blood levels of the drug triple, increasing the risk for rhabdomyolysis, a breakdown of muscle that can cause kidney damage.

Estradiol and ethinyl estradiol, forms of estrogen used in oral contraceptives and hormone replacement, also interact with grapefruit juice. In one case in the journal Lancet, a 42-year-old woman taking the birth control pill Yaz developed a very serious clot that threatened her leg several days after she started eating just one grapefruit a day, said Dr. Lucinda Grande, a physician in Lacey, Wash., and an author of the case report.

But Dr. Grande also noted that the patient had other risk factors and the circumstances were unusual. “The reason we published it as a case report was because it was so uncommon,” she said. “We need to be careful not to exaggerate this.”

Some drugs that have a narrow “therapeutic range” — where having a bit too much or too little can have serious consequences — require vigilance with regard to grapefruit, said Patrick McDonnell, clinical professor of pharmacy practice at Temple University. These include immunosuppressant agents like cyclosporine that are taken by transplant patients to prevent rejection of a donor organ, he said.

Still, Dr. McDonnell added, most patients suffering adverse reactions are consuming large amounts of grapefruit. “There’s a difference between an occasional section of grapefruit and someone drinking 16 ounces of grapefruit juice a day,” he said.

And, he cautioned, “Not all drugs in the same class respond the same way.” While some statins are affected by grapefruit, for instance, others are not.

Here is some advice from experts for grapefruit lovers:

¶ If you take oral medication of any kind, check the list to see if it interacts with grapefruit. Make sure you understand the potential side effects of an interaction; if they are life-threatening or could cause permanent injury, avoid grapefruit altogether. Some drugs, such as clopidogrel, may be less effective when taken with grapefruit.

¶ If you take one of the listed drugs a regular basis, keep in mind that you may want to avoid grapefruit, as well as pomelo, lime and marmalade. Be on the lookout for symptoms that could be side effects of the drug. If you are on statins, this could be unusual muscle soreness.

¶It is not enough to avoid taking your medicine at the same time as grapefruit. You must avoid consuming grapefruit the whole period that you are on the medication.

¶In general, it is a good idea to avoid sudden dramatic changes in diet and extreme diets that rely on a narrow group of foods. If you can’t live without grapefruit, ask your doctor if there’s an alternative drug for you.


Readers may submit comments or questions for The Consumer by e-mail to consumer@nytimes.com.

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Madoff's Younger Brother Sentenced to 10 Years







NEW YORK (Reuters) - Peter Madoff will serve 10 years in prison for his role in his older brother's multibillion-dollar Ponzi scheme, a U.S. judge said on Thursday.




Peter Madoff, 67, pleaded guilty in June to criminal charges including conspiracy to commit securities fraud for falsifying the books and records of the investment advisory company founded by his brother, Bernard Madoff.


He agreed at the time not to oppose a request by prosecutors for a maximum 10-year prison sentence and agreed to an order requiring him to forfeit a symbolic $143.1 billion. U.S. District Court Judge Laura Taylor Swain approved the sentence on Thursday.


"I am deeply ashamed of my conduct," Peter Madoff said at the sentencing. "I accept full responsibility for my actions."


Of 13 individuals charged criminally in connection with the fraud, Peter Madoff is the only one, other than his brother, who was a member of the Madoff family. Bernard Madoff, 74, was sentenced in 2009 to a 150-year prison term and was ordered to forfeit $170.8 billion.


Customers lost about $20 billion, according to the trustee charged with recovering money for the victims.


Peter Madoff, a lawyer, had been chief compliance officer and a senior managing director at the firm, Bernard L. Madoff Investment Securities.


Prosecutors say Peter Madoff helped create false and misleading documents designed to make it appear that the firm had an effective compliance program. If the firm had such a program, prosecutors said it would have shown that no real trades were taking place.


Peter Madoff also transferred millions of dollars within the Madoff family to avoid tax payments to the Internal Revenue Service and also put his wife on the firm's payroll in a no-show job.


In court papers filed on Monday, John Wing, a lawyer for Peter Madoff, said his client only learned Bernard Madoff had participated in a Ponzi scheme days before it became public.


He argued his client had accepted responsibility and, as a result of the forfeiture, will be "penniless for the rest of his life."


"Peter's life has been shattered by his brother's Ponzi scheme as well as his own conduct and guilty plea, and he will almost certainly live out his remaining days as a jobless pariah, in or out of prison," Wing wrote.


Letters from dozens of friends, family members and business acquaintances in support of Peter Madoff were included in a 190-page filing to the judge. The letters and filing by his lawyers depict him as a younger sibling who looked up to his older brother.


Peter Madoff "idolized his brother more like a father figure" and "never really seemed to be able to stand up to his brother," Karen Binder-Brynes, Peter Madoff's psychologist of nine years, wrote.


Binder-Brynes said her client was "traumatized" by the revelation of the Ponzi scheme after the news became public.


The case is U.S. v. O'Hara et al, U.S. District Court, Southern District of New York, No. 10-cr-00228.


(Reporting by Nate Raymond; Additional reporting by Nick Brown; Editing by Eddie Evans and Tim Dobbyn)


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Army seeks death for Sgt. Robert Bales in Afghan shooting rampage









SEATTLE -- The commanders at Joint Base Lewis-McChord have decided to refer the case against Army Staff Sgt. Robert Bales for a general court-martial on charges that he murdered 16 civilians in a late-night shooting rampage outside a remote Army outpost in southern Afghanistan.


Army officials also announced they would seek the death penalty against Bales, a veteran of four combat deployments who is also charged with wounding six other civilians after a night of drinking on top of steroid use at what defense lawyers say was a dysfunctional special operations outpost.


The report from investigating officer Col. Lee Deneke was not made public, but attorneys said the commanding officer’s referral matched Deneke’s own recommendation after a weeklong preliminary hearing in November, during which a parade of witnesses testified about what happened in the early morning hours of March 11 outside Camp Belambay.





DOCUMENT: Court martial statement


Bales allegedly was seen returning to the base after the shootings with his clothing, boots and weapon covered with blood; DNA evidence provided a match between that blood and blood found at one of the shooting scenes.


Additionally, Bales’ fellow soldiers testified that the 39-year-old staff sergeant as much as admitted that he had killed people that night outside of the base, though they initially didn’t believe him.


"He said he’d just been to Al-Kozai, shot some people ... shot some military-age males. And I said, "No you didn’t,' " Sgt. Jason McLaughlin testified, adding that Bales told him he was heading to the second village where attacks occurred, Najiban, and would be back at 5 a.m.


Defense lawyers say Bales clearly wasn’t in his right mind. He had not only suffered a concussive head injury in an earlier incident, but was suffering from post-traumatic stress disorder from several previous emotional incidents in which he had been involved -- a colleague’s legs were blown off by a homemade bomb shortly before the shootings.


In addition, they said, Bales was called to duty at the remote special operations base and found a culture of widespread alcohol use. He had, with the encouragement of special forces troops at the base, been taking steroids, which have been linked to incidents of aggression, and was also supplied with alcohol by the special forces troops.


"I think the general's decision is understandable, but totally irresponsible. I think the Army is not taking responsibility for the soldiers in general, and ... is trying to take the focus off the considerable errors they made as far as Sgt. Bales is concerned, as far as a lot of other soldiers are concerned: It's a system failure," Bales' civilian defense lawyer, John Henry Browne, told the Los Angeles Times.


"The Army is trying to deflect criticism by not taking responsibility in my view, and it's a shame," Browne said.


Bales’ wife, Kari, said her wish from the start was for her husband to obtain a fair trial, and emphasized that he must be presumed innocent until all the evidence comes out.

“I no longer know if a fair trial for Bob is possible, but it very much is my hope, and I will have faith,” she said in a statement.


“My husband is an American soldier. He is a citizen of the USA, and he is very much loved by me and by our children,” she added. “I am so happy that my children and I can visit Bob every weekend and that for a few hours, I can see and feel the love that flows between my children and their father.”


A legal dispute has delayed an official mental health evaluation for Bales, known as a sanity board. His civilian defense team is challenging standard military legal procedures in which Army prosecutors are given access to the psychiatrists’ report, even before the defense announces any plans to assert an insanity defense.


“The military system is very unique in the way they do that. That’s not the way it’s done in the civilian world. It is extremely damaging to his due process rights, and it’s a big problem,” said Emma Scanlan, civilian co-counsel for Bales.


The defense team still has not decided whether it will attempt to have Bales found not guilty by a military jury by reason of insanity -- a verdict that is almost never returned in military cases.


Instead, they may seek to raise Bales’ mental health issues as mitigation during sentencing in order to take the death penalty off the table.


But Scanlan said it may not get that far.


“The [prosecution] team has to prove beyond reasonable doubt that he acted with premeditated intent,” she said. “That’s a high burden, considering the situation here.”


Military prosecutors do not comment on ongoing cases. Lt. Col. Gary Dangerfield, spokesman at Joint Base Lewis-McChord, said the next step is for Bales to be arraigned on the charges. No date has been set.


ALSO:


Sandy Hook: Firefighters salute Daniel, 7


FBI stays mostly mum about Sikh temple shooter


Authorities identify suspect, victims in Colorado shootings





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Cosmo Strikes Again, Taking Over Another Westboro Twitter Account











It feels a little bit like hacker Groundhog Day. After hijacking a Westboro Baptist Church leader’s Twitter account on Monday, Wired has confirmed that the 15-year-old hacker known as Cosmo the God took over another account belonging to one of the of the same church members on Wednesday, using much the same method.


A source with direct knowledge of the attack who spoke on condition of anonymity confirmed to Wired that Cosmo had in fact taken possession of Fred Phelps Jr.’s Twitter account. Phelps Jr. is the son of church leader Fred Phelps Sr. Cosmo took over the @WBCFredJR Twitter account via Phelps’ Hotmail account, which he gained entry to by forwarding the password-reset phone number on the Hotmail account to the phone number he controlled, according to Wired’s source.


Previously, Cosmo had control of church spokesperson and attorney Shirley Lynn Phelps-Roper’s @DearShirley Twitter account for about 24 hours before the account was suspended. During that time, Wired’s source also claims that Cosmo remotely recorded gay porn to her DVR, before canceling her internet service.


Westboro Baptist Church is notorious for picketing funerals of American soldiers killed in action in Iraq and Afghanistan. Last week the organization apparently announced its intention to protest at the funerals of the children killed at Sandy Hook Elementary in Newtown, Connecticut. Following the church’s announcement, the hacker collective Anonymous and others have targeted WBC members online, especially in ways that affect their ability to communicate and operate.


Cosmo and his group UG Nazi took part in many of the highest-profile hacking incidents of 2012, including taking down websites for NASDAQ, CIA.gov, and UFC.com, redirecting 4Chan’s DNS to point to its own Twitter feed, and defeating CloudFlare CEO Matthew Prince’s Google two-step authentication. He was arrested in June, as part of a multi-state FBI sting and was recently sentenced to probation until his 21st birthday, during which time he is prohibited from using the internet without supervision and prior consent.


Clearly, the account takeovers in the past few days would violate those terms.






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“Ai Weiwei: Never Sorry,” “Bully” first theatrical releases to win duPont awards






LOS ANGELES (TheWrap.com) – Two documentary films were among the 14 winners of the 2013 Alfred I. duPont-Columbia University Award, making them the first theatrical releases to be honored with the prize. USA Today also won its first duPont award.


“Ai Weiwei: Never Sorry,” Alison Klayman‘s profile of the Chinese artist-activist, and Emmy-winning filmmaker Lee Hirsch‘s tale of schoolyard torment, “Bully,” won alongside reporting from Current TV, CBS News, NPR, PBS’s “Frontline” and USA Today.






USA Today was honored for multimedia reporting on abandoned lead factories, and NPR’s “StoryCorps” will win its first silver baton.


Five awards will go to local television and radio stations: KCET in Southern California, KLAS-TV in Las Vegas, WVUE-TV in New Orleans, Detroit’s WXYZ-TV and partnerships with WHYY and NPR.


“This exceptional group of journalists represents the best of broadcast, documentary and digital news reporting today,” Bill Wheatley, the outgoing duPont Jury chair and the former executive vice president of NBC News, said in a statement. “These groundbreaking stories set the standard for excellent reporting; journalists gained access and insight into critical issues in the public interest, and they are telling these important stories in new ways.”


Christiane Amanpour, CNN’s chief international correspondent and a global affairs anchor for ABC News will present the awards with CBS News’s Byron Pitts on Tuesday, January 22, 2013 at Columbia’s Low Memorial Library.


Movies News Headlines – Yahoo! News





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F.D.A. and States Meet About Regulation of Drug Compounders


Mary Calvert/Reuters


Margaret Hamburg, the F.D.A. commissioner, testified on the fungal meningitis outbreak before Congress in November. Dr. Hamburg addressed the need for greater federal oversight of large compounding pharmacies, which mix up batches of drugs on their own, often for much lower prices than major manufacturers charge.







SILVER SPRING, Md. – The Food and Drug Administration conferred with public health officials from 50 states on Wednesday about how best to strengthen rules governing compounding pharmacies in the wake of a national meningitis outbreak caused by a tainted pain medication produced by a Massachusetts pharmacy.




It was the first public discussion of what should be done about the practice of compounding, or tailor-making medicine for individual patients, since the F.D.A. commissioner, Dr. Margaret Hamburg, last month testified in Congress about the need for greater federal oversight of large compounding pharmacies. So far, 620 people in 19 states have been sickened in the outbreak, and 39 of them have died.


Pharmacies fall primarily under state law, and the F.D.A. convened the meeting to get specifics from states on gaps in the regulatory net and how they see the federal role. Large-scale compounding has expanded dramatically since the early 1990s, driven by changes in the health care system, including the rise of hospital outsourcing.


“It is very clear that the health care system has evolved and the role of the compounding pharmacies has really shifted,” Dr. Hamburg said in a telephone interview on Tuesday. She said the laws have not kept pace. “We need legislation that reflects the current environment and the known gaps in our state and federal oversight systems.”


Under current law, compounders are not required to give the F.D.A. access to their books, and about half of all the court orders the agency obtained over the past decade were for pharmacy compounders, though compounders are only a small part of the agency’s regulatory responsibilities.


The F.D.A.'s critics argue that the agency already has all the legal authority it needs to police compounders. They say many compounders have been operating as major manufacturers, shipping to states across the country, and that the F.D.A. should be using its jurisdiction over manufacturers to regulate those companies’ activities.


“There should be one uniform federal standard that is enforced by one agency – the F.D.A.,” said Michael Carome, deputy director of Public Citizen’s Health Research Group, a nonprofit consumer organization, who has been a critic of the agency’s approach. “They have been lax in enforcing that standard.”


But Dr. Hamburg contends that the distinction is not so simple. Lumping large compounders in with manufacturers would mean they would have to file new drug applications for every product they make, a costly and time-consuming process that is not always necessary for the products they make, which may include IV feeding tube bags. Dr. Hamburg has proposed creating a new federal oversight category for large-scale compounders, separate from manufacturers.


“What concerns me is the idea that we could assert full authority over some of these facilities as though they were manufacturers, as though there were an on-off, black-white option,” Dr. Hamburg said. “That is a heavy-handed way to regulate a set of activities that can make a huge positive difference in providing necessary health care to people.”


Large-scale compounders play an important role in the health care supply chain when they produce quality products, F.D.A. officials say. They fill gaps during shortages and supply hospitals with products that can be made more safely and cost-effectively in bulk than in individual hospitals. Officials said they wanted to make sure the products made by such suppliers were safe, but were also concerned about disrupting that supply.


Carmen Catizone, head of the National Association of Boards of Pharmacy, said states are not equipped to regulate the large-scale compounders and that the F.D.A. needs to find a middle path for regulating them.


“Either hospitals are not going to like the solution, or the manufacturers aren’t going to like the fact that these guys get a shorter path,” he said. “But something’s got to give.”


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Challenging France to Do Business Differently


Pool photo by Bertrand Langlois


President Francois Hollande, at the Élysée Palace this week, turned to the prominent industrialist Louis Gallois for advice on how to put corporate France on a more competitive footing with the rest of Europe.










PARIS — Louis Gallois, one of France’s most influential industrialists, knew he was about to make waves for the country’s Socialist president.




It was late October, and President François Hollande, faced with an alarming deterioration in the economy, had turned to Mr. Gallois for advice on how to put corporate France on a more competitive footing with the rest of Europe.


Mr. Gallois didn’t sugar-coat the message. His report called for a “competitiveness shock” that would require politicians to curb the “cult of regulation” he said was choking business in France.


The report said that unless France relaxed its notoriously rigid labor market, the country would continue on an industrial decline that had destroyed more than 750,000 jobs in a decade and helped shrink France’s share of exports to the European Union to 9.3 percent, from 12.7 percent, during that period. The report also called for cuts to a broad range of business taxes used to pay for big government and France’s expensive social safety net.


But some wonder whether those measures, even if they can be adopted, would suffice. For them, there is a larger question: Can France be fixed?


While the European crisis has made the French acutely aware of the need to modernize the economy, the country may be running short on time. And there are mixed signals on whether the Hollande government is willing to heed the advice.


As details of the report leaked, the French news media went into a frenzy over whether their country — so resistant to change that the government still controls the price of a baguette of bread — was prepared for such upheaval.


Mr. Hollande quickly provided an answer: a competitiveness “pact” between business and government would better suit French society.


As Mr. Hollande’s finance minister, Pierre Moscovici, hastened to explain, “A shock causes trauma, whereas a pact reassures.”


But many observers say reassurance may no longer be an option.


Even the Germans are alarmed: Behind closed doors, Chancellor Angela Merkel and officials in her entourage are said to be worried that a failure by Mr. Hollande to improve competitiveness could ricochet back to the weakening German economy, further stalling what had long been twin engines of growth for Europe.


“The concern is not just that France could be the next candidate affected by turbulence” from the euro crisis, said Lars P. Feld, an economics professor at the University of Freiburg and an adviser to the German government. “The fear is that it doesn’t manage to cope with the loss of competitiveness and therefore produces little growth or perhaps even stagnation for the next few years,” Mr. Feld said. “And that after that, it could become the new sick man of Europe.”


France still has much working in its favor. Second only to Germany as Europe’s biggest economy, and the fifth-largest in the world, France is a wealthy country with a high savings rate, large foreign direct investment and world-class research and development capabilities.


And the interest rate on French 10-year bonds is only about 2 percent. That is much closer to Germany’s rate than to those of the euro zone’s staggering giants, Italy and Spain, which are above 4 percent and 5 percent respectively, as they struggle to clean up their economies.


Yet, last week the French central bank warned that growth would shrink 0.1 percent in the last three months of 2012, after stagnating for most of the year. Last month Moody’s Investors Service followed Standard & Poor’s in stripping France of its triple-A credit rating, saying the government was failing to ignite competitiveness fast enough.


Meanwhile, an ambitious effort Mr. Hollande began shortly after his election in May to cut the deficit to 3 percent next year from 4.5 percent through tax increases and spending cuts may dampen growth further and ratchet up unemployment, which recently neared 11 percent, twice the rate in Germany.


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