Cyprus Urged To Protect Savings Under 100k

Eurozone finance ministers have urged Cyprus to protect savers with less than 100,000 euros (£86,000) in their accounts from a proposed tax on bank deposits.

Under a bailout deal agreed with the EU, Cyprus planned to impose a levy of 6.7% on all savings below that level.

The scheme was then changed to a 6.7% tax on all savings between 20,000 and 100,000 euros and 9.9% on all savings over 100,000 euros.

But the finance ministers, known as the Eurogroup, said they favoured a higher, 15.6% tax on richer savers in order to protect those with smaller deposits.

A statement from the group's president Jeroen Dijsselbloem said: "The Eurogroup continues to be of the view that small depositors should be treated differently from large depositors and reaffirms the importance of fully guaranteeing deposits below 100,000 euros."

Sparing more modest savers in favour of the higher rate on bigger deposits, would not impact on the overall amount of the bailout - 10bn euros (£8.6bn) - the group said.

Protesters gathered outside the parliament in Nicosia

On Saturday the Eurogroup told debt-ridden Cyprus it would not give it a bailout unless it recouped some of the money it needed from savers.

The scheme had the potential to affect thousands of Britons who had either moved to Cyprus to live or had money saved in Cypriot accounts.

Russia, whose citizens are thought to have up to $30bn of their cash tied up in Cypriot accounts, was left furious by the proposal.

Cyprus may still ignore the advice from the Eurogroup and its parliament is expected to vote on a plan to save its economy on Tuesday.

Foreign Secretary William Hague said Britain had been "separated" from contributing towards the bailout, adding that 3,000 Britons in the country would not suffer in the proposed raid on bank savings.

Large numbers of Russian millionaires have stashed savings in Cypriot banks

It is believed, however, that many British Cypriots may have millions in accounts that are not protected by UK rules.

It was also unclear whether British troops serving in Cyprus who had set up large savings accounts would be able to escape the tax.

Cyprus had been due to vote on the levy on Sunday but it was first pushed back until Monday and then Tuesday.

Banks were closed in the country on Monday because of a bank holiday, which prevented people withdrawing their money but cash machines across the island were emptied.

Branches will stay shut for another two days - Tuesday and Wednesday - to prevent people removing all their cash while the authorities decide what to do.

A large amount of cash was withdrawn from Cypriot banks on Monday

The decision to target bank accounts stunned Cypriots, and police sealed off parliament as about 400 people staged a noisy protest outside, aggrieved that their small island of one million people should be singled out for such treatment.

It is the first time within the EU that it has been proposed to tax savers in a country to pay for the failings of their government.

The euro and stock markets fell on concern that developments in tiny Cyprus could reignite the financial crisis in the 17-nation eurozone.

If Cyprus does tax large savers heavily there are fears that money could flood out of the country as two thirds of deposits are from abroad.

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Pope Francis Inauguration Draws Huge Crowds

Pope Francis is touring St Peter's Square in an open-top car at the start of his inauguration as leader of the world's Catholics.

The pope waved to the tens of thousands of pilgrims, who carried flags from around the world and shouted "Long live the pope!"

Heads of state, royalty and religious leaders will be among the guests at a two-hour ceremony in St Peter's Square, although the Queen and Prime Minister David Cameron will be absent.

An estimated 300,000 people listened to Pope Francis's first Angelus prayer

Large crowds are also expected in Buenos Aires in the Pope's native Argentina, where big screens have been erected outside the city's main cathedral.

The Vatican said the Mass would be a simplified version of events in 2005 that brought Pope Benedict XVI to the papacy.

Pope Francis will wear the Fisherman's Ring

The service will make several gestures towards Eastern Rite Catholics and Orthodox Christians, with the Gospel chanted in Greek not Latin and Eastern Rite prelates joining the Pope at an initial prayer at the tomb of St Peter under the Basilica's main altar.

The Vatican also released details of the coat of arms and official ring Pope Francis will receive during the Mass. Both are in keeping with his simple style.

The coat of arms is the same Jesuit-inspired one he used as Archbishop of Buenos Aires, while the ring was once offered to Pope Paul VI, who presided over the second half of the Second Vatican Council, the church meetings that modernised the church.

Argentina's President Cristina Kirchner will be among those present for the inauguration.

She met the Pope at the Vatican on Monday in what had the potential to be a tense discussion.

She and her predecessor and late husband, Nestor Kirchner, defied church teaching to push through a series of measures with popular backing in Argentina, including mandatory sex education in schools, free distribution of contraceptives in public hospitals and the right for transsexuals to change their official identities on demand.

Pope Francis meets the Argentine president

In 2010, Argentina became the first Latin-American country to legalise same-sex marriages.

But today those differences appear to have been brushed aside. President Kirchner gave the Pope a mate gourd and straw to hold the traditional Argentine tea that the new leader of the Catholic church loves. To her surprise, she got a kiss in return.

"Never in my life has a Pope kissed me!" she said afterwards.

A worker makes final preprations for the inauguration Mass in Vatican City

Britain will be represented at the ceremony by HRH The Duke of Gloucester, as well as cabinet minister Kenneth Clarke and Baroness Warsi, the Minister for Faith and Communities.

Zimbabwe's President Robert Mugabe also arrived in Rome for the inaugural Mass.

He is the subject of a travel ban by European nations in protest at his human rights record but it does not affect his trips to the Vatican through Italy.

Former Pope Benedict XVI will not attend the Mass and is likely to be watching on television at the papal retreat at Castel Gandolfo outside Rome.

He is due to greet Pope Francis in an unprecedented meeting at the retreat next Saturday.

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Father And Son Killed In Alps Hiking Trip Named

A British father and his 12-year-old son who died while hiking in the Alps have been named by the Foreign Office.

Peter and Charlie Saunders were killed on a walking trip in the Chamonix valley in France after flying there for a short weekend adventure, the FCO said in a statement issued on behalf of their family.

Mr Saunders tumbled to his death as he tried to search for his son who had fallen 300 metres, French police believe.

"Charlie was always full of life, had a really happy temperament and loved spending time with his father. Peter was fantastic at making things happen, resourceful, with a positive approach to life. They will both be sorely missed by friends and family alike," it said.

"We would like to take this opportunity to thank the French rescue services for all their efforts."

Rescue services in Chamonix were called by 48-year-old Mr Saunders at 2pm local time on Saturday.

He apparently said his son had fallen into a crevasse near Mont Blanc and that they were lost.

Captain Patrice Ribes, a French police officer, told Sky News that emergency services tried to trace the mobile phone call and launched a rescue mission.

But the rescuers lost contact and had to launch their search with little information about the pair's location.

The Saunders were said to be exploring a 'dangerous' mountain trail

A helicopter eventually spotted their bodies on Sunday morning at an altitude of 1,600m.

Capt Ribes said: "We think the father tried to find his son after he called us and asked for rescue. We believe he fell as he tried to find his son. Their bodies were found together this morning at 7.40am."

The father and son, reportedly from Buckinghamshire, had ventured into the Glacier des Bossons area of the Mont Blanc mountain range.

Capt Ribes said they had inadequate equipment and were exploring a "dangerous, deep, snowy" mountain trail.

Richard Mansfield, a mountain guide who has worked in the area for 20 years and lives near the Bossons glacier, said: "I don't know exactly where the accident happened but all the trails on the north side of the valley are covered in snow at the moment.

"The footpaths usually don't get that many people out at this time of year because they are much more difficult to navigate, although yesterday was a beautiful sunny day."

Mr Mansfield described a "number of footpaths which weave in and out of indentures in the mountainside" and this "is where they may have slipped off".

The valley, which boasts five ski resorts, receives a lot of British tourists throughout the year, with many owning holiday homes in the area.

According to reports, no less than 10 off-piste skiers and mountaineers had already been killed in the area this month.

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Press Regulation: Politicians 'Reach' A Deal

Politicians have reached a deal on plans to regulate the press, Labour's Deputy Leader Harriet Harman has told Sky News.

However, a Downing Street source insisted cross-party agreement was "very close" but there would be further talks this morning.

The Conservatives, Labour and the Liberal Democrats are understood to have held talks for more than five hours.

David Cameron - faced with a possible defeat in a House of Commons vote on the issue - was not present but was represented by Oliver Letwin, who has been the key figure for the party in recent negotiations.

The eleventh-hour talks came after Culture Secretary Maria Miller hinted at a "Labour climb-down", claiming Ed Miliband's party was now "much closer" to the Tories' position.

But Labour claimed the deal would be based on their plans for a Royal Charter underpinned by law.

Mr Cameron has been clear that he is very uncomfortable with the idea of setting anything down in law because it could be seen as politicians meddling with the press.

However, it is understood a compromise has been reached to include three lines of Statute - a clause in the legislation to ensure that the Royal Charter can not be amended in the future without two-thirds majorities in both Houses of Parliament.

There will be no industry veto of who sits on the regulator, and there will be a specific rule to ensure apologies are proportionate.

A senior Labour source told PA the party was in "lock-step" with the Lib Dems, adding: "We are clear we are not going to accept their Royal Charter. Any agreement must be on the basis of our Royal Charter."

Mr Cameron, who last week pulled out of talks about implementing Lord Justice Leveson's recommendations, previously warned that legislation would endanger press freedom.

Labour leader Ed Miliband, Deputy Prime Minister Nick Clegg and shadow culture secretary Harriet Harman attended the talks.

An agreement is not yet thought to have been signed, although Labour said it expects details to be announced in the Commons later.

Actor Hugh Grant, who is leading the Hacked Off campaign for tighter controls in the wake of the hacking scandal, accused the Prime Minister of turning his back on victims of press intrusion.

"For him, politically, it was more important to suck up to the newspapers than to fulfil the promise that he made under oath," he told Sky News.

"(He said) that what mattered as an outcome to all this was that those victims should never be subject to those kind of abuses again."

Harry Potter author JK Rowling also spoke out, saying Mr Cameron's actions had left her feeling "hung out to dry".

"Monday's vote will make history one way or another," she said.

"I am merely one among many turning their eyes towards Ed Miliband and Nick Clegg and hoping that they have the courage to do what Mr Cameron promised, but which he failed to deliver."

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Cyprus Politicians Decide On Bailout Demands

Cyprus's parliament will decide later today whether savers must pay a levy on bank deposits under terms for an international bailout to avert bankruptcy.

The eurozone demand that savers pay up to 10% of deposits as a condition for the 10bn euro (£8.6bn) bailout has drawn criticism and anger in the eastern Mediterranean island.

Queues of people gathered at its cash machines on Saturday as they tried to withdraw their money ahead of the move.

And the country's cooperative banks had to shut their doors after seeing a rush of savers keen to protect their money.

Savers could apparently withdraw money but were not able to carry out electronic transfers.

Newly-elected Cypriot President Nicos Anastasiades said refusing the bailout would have led to the collapse of the island's two largest banks, badly burnt by their exposure to bailed out neighbour Greece.

The tax on deposits in Cyprus, which accounts for only 0.2% of the eurozone's economy, is expected to raise up to 6bn euros (£5bn) as a condition for the bailout, mainly needed to recapitalise banks.

Those affected will include rich Russians with deposits in Cyprus and Europeans who have retired to the island as well as Cypriots themselves.

The size of foreign deposits in Cyprus - estimated at 37% of the total - was one reason the eurozone agreed to the tax on savings, to take effect when banks reopen on Tuesday.

Nicos Anastasiades with Angela Merkel in Brussels

The tax will apply to all deposits held in banks within Cyprus, including an estimated 2bn euros (£1.75bn) of British money, according to the European Central Bank.

However, it will not affect deposits held in the UK branches of Cypriot banks, such as Bank of Cyprus, whose UK subsidiary is regulated by the Financial Services Authority.

The country has a large British expatriot community, among them David Symonds who lives in Limassol.

He told Sky News: "Everybody was surprised. We were assured only a few days ago that the haircut on the deposits was a red line for the government.

"When we learned that it might become a possibility we were told it would only be on deposits above 100,000 euros. Now of course we know it affects everybody."

Cyprus was badly hit by the Greek financial crisis because of its close links to the country.

Its two largest banks saw combined losses of 4.5bn euros (£3.8bn) - equal to a quarter of the island's gross domestic product.

The rescue package was agreed after 10 hours of talks in Brussels and was significantly less than the 17bn euros (£14.7bn) asked for.

As part of the deal, the government will also have to hike corporate tax to 12.5% from 10% and sell off state assets to help balance the public finances.

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Chancellor Warns Of 'More Tough Choices'

George Osborne has warned the country of "more tough choices" and says there are no "miracle cures" for the UK economy, as he prepares to deliver Wednesday's Budget.

The Chancellor is under mounting pressure to change course and kick start growth as the UK faces an increased risk of falling into a triple-dip recession.

An opinion poll suggests most voters - including more than a quarter of Conservative supporters - think his policies are failing.

But Mr Osborne dismissed calls for extra borrowing to cut taxes or finance a "spending spree" and insisted that abandoning his austerity programme would be a "disaster".

Writing in The Sun on Sunday, Mr Osborne hinted he would do more to help homebuyers, business start-ups, apprentices and people saving for retirement.

Helping create jobs would mean "cutting tax rates and red tape, backing scientific advance, building new roads and broadband" and making the UK an attractive investment option, he said.

However he warned of "more tough choices" to be made on further slashing public spending from 2015 - with the scale of the squeeze to be unveiled in his statement.

"It won't be easy," he warned, amid rows between ministers over where the axe should fall.

Hopes the economy could grow in this quarter and thus avoid returning to recession were dealt a blow this week by a 1.5% fall in manufacturing output in January.

The Chancellor will deliver his Budget on Wednesday

Former cabinet minister Liam Fox is leading Tory calls for a change of course - suggesting Corporation Tax be reduced to zero and far bigger cuts to public spending, notably welfare.

Other prominent backbench demands include cancelling a fuel duty rise due in the autumn and scrapping the beer duty escalator that automatically ups the price of a pint.

Mr Osborne is tipped to announce extra investment in housebuilding and road projects - called for by leading business groups - and help for people to buy homes.

But he will not abandon "Plan A" by increasing borrowing to fund it - a move being mooted within the coalition by Liberal Democrat Business Secretary Vince Cable.

Shadow chancellor Ed Balls said he would welcome extra borrowing to fund a cut in the basic rate of income tax to put more money into people's pockets.

But Mr Osborne hit back: "I think the British people know there are no easy answers in today's world. They aren't fooled by the miracle cures peddled by the same snake oil politicians who got us into this mess.

"Labour's answer to Britain's borrowing problems is to borrow even more - that simply doesn't make sense. If there were easy options and miracle cures then of course I would take them, but sadly there aren't."

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L/Cpl James Ashworth Awarded Victoria Cross

A soldier killed protecting his comrades in Afghanistan is to be awarded the Victoria Cross - the UK's top bravery medal, according to Sky Sources.

Lance Corporal James Ashworth's courage was hailed as "beyond words" by friends who served with him until his death last June.

The 23-year-old died in a grenade attack during a fierce battle with the Taliban in Helmand's Nahr-e Saraj district.

He was on foot patrol and battling his way through compounds against enemy fighters when he was fatally wounded.

It is expected that the rare VC award to the soldier from Kettering, Northamptonshire, will be officially announced later this month.

The VC has been awarded 10 times to British soldiers since World War Two and only once for bravery in Afghanistan.

At the time of L/Cpl Ashworth's death, his family said: "We are devastated by the loss of our son, brother, uncle and boyfriend. He meant the world to everyone and has left an irreplaceable hole in our hearts."

The cross was first bestowed during the Crimean War

His father Duane was also a Grenadier Guard, while his younger brother Coran is also a soldier.

He also left behind his mother Kerryann, sisters Lauren and Paige, brother Karl and four-year-old niece Darcy, as well as his girlfriend, Emily.

His company commander, Captain Mike Dobbin, praised the soldier's actions.

He said: "Lance Corporal Ashworth was killed while fighting his way through compounds, leading his fire team from the front, whilst trying to protect his men and he showed extraordinary courage to close on a determined enemy.

"His professionalism under pressure and ability to remain calm in what was a chaotic situation is testament to his character."

Johnson Beharry is the last living recipient of a medal

Guardsman Jordan Loftus also paid tribute to his friend's bravery.

He said: "Selfless, brave, courageous ... words like these don't come close to what Ash demonstrated that day. He will be missed by all as a commander, but most of all a good mate."

L/Cpl Ashworth's Commanding Officer in the 1st Battalion Grenadier Guards, Lieutenant Colonel James Bowder said: "Lance Corporal Ashworth was an outstanding soldier whose loss has moved us all. A real self-starter, he excelled in everything that he undertook.

"Fit, strong and brilliant at his job, he set the bar very high. Indeed, such was his calmness under pressure, his charisma, and his selflessness that he made an exemplary junior leader."

The previous recipient of the VC in Afghanistan was 29-year-old Corporal Bryan Budd of 3rd Battalion the Parachute Regiment, who died when he single-handedly stormed a Taliban position in Sangin in 2006.

The last living recipient was L/Cpl Johnson Beharry of 1st Battalion the Prince of Wales's Royal Regiment, who twice saved the lives of colleagues under enemy fire in Iraq in 2004.

The medal is the British military's highest bravery award and was first bestowed on troops during the Crimean War in 1854-55.

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