Germans prefer the austerity of tax cuts: survey (AFP)

BERLIN (AFP) - an overwhelming majority of Germans would prefer to see more austerity to reduce the debt instead of tax cuts promised by the Government, according to a survey published Friday.

Requested A "do you think it is more important to cut taxes or reduce new public debt?", 70% of respondents say that they preferred austerity compared with 24%, opt for tax cuts, in a poll by the Infratest-Dimap independent research firm opinion.

The survey reveals deep scepticism on the promise of Chancellor Angela Merkel to reduce the tax of an amount not specified in 2013, the year of the next scheduled general election and the general malaise may be over the eurozone debt crisis.

Forty - nine percent said that plans were not based on the State of German public finances, with 48% in support of tax relief.

Only a minority--36 percent - said they were convinced that tax cuts would be effectively implemented over the next two years while 62% said that they do not believe the promise of the Government.

Even if the tax cuts are approved, only two per cent thought that they would provide "significant relief" for their own household, against 52% thought that they would be "light relief" and 45 percent, which provided "no remedy".

In Germany, the largest contributor of bailouts of debt in the eurozone as its economy at the top of the page, on Wednesday forecast an unexpectedly strong reduced its public deficit in a draft budget for 2012 with solid economic growth.

Falling unemployment reduced payroll, and the national deficit should fall to 27.2 billion euros ($38.9 billion) from the previous estimate of EUR 31.5 billion.

The German deficit will wheelie by more than 17 billion euros in two years to a peak in 2010 resulting in large part of the rescue plans necessary to overcome the economic crisis.

But despite the booming economy and finance public relatively in good health, the Merkel Government sank in the polls because of quarrels internal coalition and the perception that the Chancellor has failed to carry out a clear on issues ranging from energy policy of the euro-zone debt crisis.

The Infratest dimap survey, 1,005 people Monday and Tuesday, with a 1.4 to 3.1% error margin, showed coalition under Merkel failing to win a majority with only 37% of support.

A potential alliance of the opposition of Social Democrats and Greens would win 49 percent of the vote, the survey.

Rise in price of the British real estate in June: survey (AFP)

London (AFP) - house prices UK increased by 1.2% in June to the level in may, a major home-loan provider data showed on Wednesday.

However they declined by 3.5% in June compared with 12 months earlier, according to figures from the mortgage lender Halifax.

"Low interest rates, the increase in the number of persons in employment and some tightening of the conditions of the market earlier this year are likely to have been the main factors behind the recent improvement in price trends", Halifax housing Economist Martin Ellis said in a statement.

"However, the market is likely to continue to address significant turbulence which should limit the demand for housing." Growth of low income, higher taxes and a relatively high inflation continue to put pressure on household finances, "he added in a statement."

Halifax, which is part of the Group of banks Lloyds rescued by the State, said that the average home in Britain price amounted to £ 163,049 ($261,147, 181,733 euros) in June.

The Bank of England should keep interest rates at a record low of 0.50% Thursday and maintain the status quo in the year next due to the recovery of flagging of Great Britain, economists.

Survey of State funds happened very quiet (latimes)

Almost four years ago, authorities expelled top-level public accident insurance company officers, redesigned operation and has launched a criminal investigation into reports of conflicts of interest, embezzlement and misappropriation of $1billion.

Today, probe involving public compensation insurance fund continues in silence as prosecutors face possible limitations statutes that would bar of criminal charges and civil prosecution.

The last event publicly occurred at 18 months, when a search warrant has been issued to a former member of the Board of Directors in Redding, about 150 miles north of Sacramento.

"Seems to have fallen off the coast of the face of the Earth", said Mark Webb, Vice President for the Pacific Compensation Insurance Co. in the hills of Agoura rival. "When you think about how this exhausted publicly, it seems that there is at least enough take it to the grand jury."

Legislators also begin to ask questions about the case of funds.

"It is time that the legislature of check to the district prosecutor's Office" and the funds, said the Chairman of the Committee of Insurance House Jose Solorio (Santa Ana - D). "Everyone merit if this case is being solved or if it is still under consideration."

Former Senator Mike Machado, now member of the Fund of the State, says "the length of time" and apparent lack of activity was frustrated by the investigation. He refused to comment further on the matter.

President of the company, Jeanne Cain said only that "funds has long moved past events" of 2007.

The investigation led by San Francisco the Atty Kamala Harris, whose Office has established a working group which included the California Highway patrol and the State Insurance Department.

But Harris leaves in two weeks for his new job in the California Attorney General. Erica Derryck, a spokesman for the district prosecutor's Office said only that "is an investigation and active by the Working Group".

Insurance Commissioner Steve Poizner, the Bureau has published an audit though some funds three years ago stated that staff had concluded its work on the case and that he could not discuss the status of the investigation.

$ 21 Billion company is an essential element of the California economy, because it is the insurer of last resort, especially for small and medium-sized companies who cannot obtain comp coverage affordable workers, which requires the State. This year, the national fund is expected to write from 1.1 billion in premiums for 150 000 employers in California.

Disorders in the Fund began in the fall of 2006, when the Office of the Governor pressure two members of the Board to resign on potential conflicts of interest. Less than six months later, guiding the Fund of the State, after having conducted an internal review, ousted President of the company, James Tudor and a vice President, Renee Koren.

Examination discovered practical financial bad involving sale of political discount by associations outside with links to some members of the Board.

An audit of insurance issued in December 2007 revealed that while Frank DelRe and Kent Dagg was the Board of Directors, DelRe Long beach administrators assurance received 140 million dollars in funds of fresh marketing and the construction trades associations connected with Dagg received $ 125 million.

Audit said conflict potential interest has occurred Dagg participated in decisions raise commissions paid to companies - including their own - administered at discounted price strategies Group associations like employers, such as contractors and restaurants and DelRe.

Confidential State funds Council minutes indicated that the two men had no conflict of interest, the audit said. But "the fact that the jury members may have gained financially from the decision of the Fund creates the appearance of a potential conflict", said Auditors.

Since then, the investigation has been largely quiet.

Legal experts said time could be missed.

Laws more felony in the State, including fraud, require the prosecution within three years of the crime alleged, that the prosecutors have flexibility in some cases. Civil law carry limits for four years. Some criminal charges, such as the misappropriation of public funds, have no limitation.

"It comes to complex cases and take some time, said Robert Fellmeth, Director of the Center for Public Interest Law at the school of the University of San Diego law and a former San Diego County assistant district attorney."

"But if you have the Department of insurance, road patrol of California and the Attorney for district of San Francisco all resources that contribute to an investigation, they should know where they stand after four years," he said. "These three organizations have much power."

If evidence is not strong enough, investigators must say the public and their targets suspected that the probe has officially ended, he said.

"Perhaps they are not likely to cause or it turns out that this is just the circumstances of the bad markets, stupidity or perhaps there is no law covering" situation, said Fellmeth. "" "" And then, fine, they should stop wasting resources on investigation or at least tell people that it is more and there is no grand jury from. "We're just".

Sam Sorich, President of the California insurance companies, the insurance industry trade group said it is flabbergasted that nothing has happened publicly in the investigation.

"It seems a little odd that was there was no action on the case," said Sorich. "The allegations were very disturbing."

Marc.lifsher@LAtimes.com

USAID suspends based district DEA non-profit contracts in the middle of the survey (Washington Post)

Agency for international development, United States said Wednesday that it suspended from a non-profit receive new contracts due to an ongoing investigation of questionable practices government organization.

Office of the Inspector General of the USAID studied at the Academy of development education (EDA), which is based in the district. The 49-year contracts with the United States Government agencies and others to run programmes of economic and social development, education, non-profit group of health in approximately 150 countries.

AED is also one of USAID Afghanistan contractors, oversee programme of higher education of the Government agency in the war-torn country. For the past three years, she received the 109 million USAID Afghanistan work contracts.

First results by Office of the Inspector General "reveal evidence of serious misconduct, poor management and lack of internal controls and raise serious concerns business integrity," according to a statement from USAID.

AED has 65 USAID contract award approximately 640 million dollars, according to an official of the USAID.

The Agency said it provides complete "an immediate review internal"of "each program associated DEA." ""

Lars Anderson, a spokesman for the USAID said the suspension of the DEA "prevents from bidding on or to receive an additional of the Government of the United States price until the suspension is lifted or proceedings are instituted against the organization."

USAID said he decided to suspend the DEA after investigation of the Inspector General has begun in spring 2009 and "evidence of misconduct by DEA.

Investigation of the Inspector General involved work in two programs development and education in Pakistan, according to a statement, and Afghanistan DEA society published Wednesday.

"EDA cooperates with investigation [IG] and is committed to working with USAID on their general and specific concerns" DEA statement said.

The organization said that he made of the significant steps towards the strengthening of its project-monitoring, personnel and resources."

USAID has recently completed a $ 150 million in five years, with the EDA cooperation agreement after its Inspector General found evidence of fraud related to a program in Pakistan that has been designed to provide disaster relief, development of infrastructure, education and agricultural services, according to a recent report to Congress who do identify themselves by name society. A close source investigation confirmed that the company in the report of the EDA.

In this program of Pakistan, investigation of the Inspector General found report "proof of collusion between vendors and staff... too - from" for certain goods, according to the organization.

USAID has completed its work with the AED program and the group returned more than $92,000.

AED recently lost some of its top management page. Robert Murphy has replaced Deanna Trotter, who retires after 22 years with the group as Chief Financial Officer. And last month, Stephen f. Moseley, who had served as a DEA, President and Chief Executive for 23 years and is well-known worldwide non-profit, stated that he was going to retire next year.

hedgpethd@washpost.com boakj@washpost.com