Penalty could keep smokers out of health overhaul

WASHINGTON (AP) — Millions of smokers could be priced out of health insurance because of tobacco penalties in President Barack Obama's health care law, according to experts who are just now teasing out the potential impact of a little-noted provision in the massive legislation.

The Affordable Care Act — "Obamacare" to its detractors — allows health insurers to charge smokers buying individual policies up to 50 percent higher premiums starting next Jan. 1.

For a 55-year-old smoker, the penalty could reach nearly $4,250 a year. A 60-year-old could wind up paying nearly $5,100 on top of premiums.

Younger smokers could be charged lower penalties under rules proposed last fall by the Obama administration. But older smokers could face a heavy hit on their household budgets at a time in life when smoking-related illnesses tend to emerge.

Workers covered on the job would be able to avoid tobacco penalties by joining smoking cessation programs, because employer plans operate under different rules. But experts say that option is not guaranteed to smokers trying to purchase coverage individually.

Nearly one of every five U.S. adults smokes. That share is higher among lower-income people, who also are more likely to work in jobs that don't come with health insurance and would therefore depend on the new federal health care law. Smoking increases the risk of developing heart disease, lung problems and cancer, contributing to nearly 450,000 deaths a year.

Insurers won't be allowed to charge more under the overhaul for people who are overweight, or have a health condition like a bad back or a heart that skips beats — but they can charge more if a person smokes.

Starting next Jan. 1, the federal health care law will make it possible for people who can't get coverage now to buy private policies, providing tax credits to keep the premiums affordable. Although the law prohibits insurance companies from turning away the sick, the penalties for smokers could have the same effect in many cases, keeping out potentially costly patients.

"We don't want to create barriers for people to get health care coverage," said California state Assemblyman Richard Pan, who is working on a law in his state that would limit insurers' ability to charge smokers more. The federal law allows states to limit or change the smoking penalty.

"We want people who are smoking to get smoking cessation treatment," added Pan, a pediatrician who represents the Sacramento area.

Obama administration officials declined to be interviewed for this article, but a former consumer protection regulator for the government is raising questions.

"If you are an insurer and there is a group of smokers you don't want in your pool, the ones you really don't want are the ones who have been smoking for 20 or 30 years," said Karen Pollitz, an expert on individual health insurance markets with the nonpartisan Kaiser Family Foundation. "You would have the flexibility to discourage them."

Several provisions in the federal health care law work together to leave older smokers with a bleak set of financial options, said Pollitz, formerly deputy director of the Office of Consumer Support in the federal Health and Human Services Department.

First, the law allows insurers to charge older adults up to three times as much as their youngest customers.

Second, the law allows insurers to levy the full 50 percent penalty on older smokers while charging less to younger ones.

And finally, government tax credits that will be available to help pay premiums cannot be used to offset the cost of penalties for smokers.

Here's how the math would work:

Take a hypothetical 60-year-old smoker making $35,000 a year. Estimated premiums for coverage in the new private health insurance markets under Obama's law would total $10,172. That person would be eligible for a tax credit that brings the cost down to $3,325.

But the smoking penalty could add $5,086 to the cost. And since federal tax credits can't be used to offset the penalty, the smoker's total cost for health insurance would be $8,411, or 24 percent of income. That's considered unaffordable under the federal law. The numbers were estimated using the online Kaiser Health Reform Subsidy Calculator.

"The effect of the smoking (penalty) allowed under the law would be that lower-income smokers could not afford health insurance," said Richard Curtis, president of the Institute for Health Policy Solutions, a nonpartisan research group that called attention to the issue with a study about the potential impact in California.

In today's world, insurers can simply turn down a smoker. Under Obama's overhaul, would they actually charge the full 50 percent? After all, workplace anti-smoking programs that use penalties usually charge far less, maybe $75 or $100 a month.

Robert Laszewski, a consultant who previously worked in the insurance industry, says there's a good reason to charge the maximum.

"If you don't charge the 50 percent, your competitor is going to do it, and you are going to get a disproportionate share of the less-healthy older smokers," said Laszewski. "They are going to have to play defense."

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Online:

Kaiser Health Reform Subsidy Calculator — http://healthreform.kff.org/subsidycalculator.aspx

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Mars Rover Celebrates Milestone on Red Planet

It was never supposed to last this long. When the Mars rover Opportunity settled on the Martian surface nine years ago today, mission managers at NASA said they would be pleased if it lasted for 90 days.

Instead, it's been 3,201 days, and still counting. The rover has driven 22.03 miles, mostly at a snail's pace, from one crater to another, stopping for months at a time in the frigid Martian winters. The six motorized wheels, rated to turn 2.5 million times, have lasted 70 million, and are all still working.

"Opportunity is still in very good health, especially considering what it's gone through," said John Callas, manager of NASA's Mars Exploration Rover project. The surface of Mars is a pretty tough place; there can be temperature fluctuations of a hundred degrees each day. That's pretty hard on the hardware."

Video: '7 Minutes of Terror: A Landing on Mars

When Opportunity and its twin rover, Spirit, reached Mars in January 2004, there was a fair bit of sniping that NASA, with all that 90-day talk, was playing down expectations. It escalated when Steve Squyres of Cornell University, the principal investigator for the missions, said things like, "We're on Sol 300 of a 90-Sol mission." (A Sol is a day on Mars, and lasts 24 hours, 39 minutes.) Callas and others have insisted that the prediction was based on engineering, not a nod to public relations.

"There was an expectation that airfall dust would accumulate on the rover, so that its solar panels would be able to gather less electricity," said Callas. "We saw that on Pathfinder," a small rover that landed on Mars in 1997." The cold climate was also expected to be hard on the rovers' batteries, and changes in temperature from night to day would probably pop a circuit or two.

Instead, the temperatures weren't quite as tough as engineers had expected, and the rovers proved tougher. They did become filthy as the red Martian dust settled on them, reducing the sunlight on the solar panels -- but every now and then a healthy gust came along, surprising everyone on Earth by cleaning the ships off.

Click Here for Pictures: Postcards From Mars

Spirit, in hilly territory on the other side of the planet, finally got stuck in crusty soil in 2009, and its radio went silent the next year. But Opportunity, though it's had some close calls, is -- well, you remember those commercials about the Energizer bunny.

So what do you do with an aging rover on a faraway planet? You keep using it. In its first weeks, NASA said Opportunity found chemical proof that there had once been standing water on the surface of Mars -- good news if you're looking for signs that the planet could once have been friendly to life. Since then, it's been sent to other places, with rocks and soil that are probably older, and with clay that may have been left by ancient rivers.

About 20 NASA staff members still work full-time on Opportunity at the Jet Propulsion Laboratory in Pasadena, Calif. Another 60 split their time between Opportunity and other projects, such as the Curiosity rover that landed last August. About 100 scientists, doing research on Mars, pop in and out.

In a few months, Callas said, Opportunity will head to an area nicknamed Cape Tribulation. The clay there could be rich in the minerals suggestive of past life.

They haven't done much to mark the ninth anniversary or the 3,200th Martian day, just a get-together earlier this week during a previously scheduled science conference. After that, Callas said, it was back to work.

"It's like keeping your car going," he said, "without ever having a chance to change the oil."

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North Korea to target U.S. with nuclear, rocket tests

SEOUL (Reuters) - North Korea said on Thursday it would carry out further rocket launches and a nuclear test that would target the United States, dramatically stepping up its threats against a country it called its "sworn enemy".

The announcement by the country's top military body came a day after the U.N. Security Council agreed to a U.S.-backed resolution to censure and sanction North Korea for a rocket launch in December that breached U.N. rules.

North Korea is not believed to have the technology to deliver a nuclear warhead capable of hitting the continental United States, although its December launch showed it had the capacity to deliver a rocket that could travel 10,000 km (6,200 miles), potentially putting San Francisco in range, according to an intelligence assessment by South Korea.

"We are not disguising the fact that the various satellites and long-range rockets that we will fire and the high-level nuclear test we will carry out are targeted at the United States," North Korea's National Defence Commission said, according to state news agency KCNA.

North Korea is believed by South Korea and other observers to be "technically ready" for a third nuclear test, and the decision to go ahead rests with leader Kim Jong-un, who pressed ahead with the December rocket launch in defiance of the U.N. sanctions.

China, the one major diplomatic ally of the isolated and impoverished North, agreed to the U.S.-backed resolution and it also supported resolutions in 2006 and 2009 after Pyongyang's two earlier nuclear tests.

Thursday's statement by North Korea represents a huge challenge to Beijing as it undergoes a leadership transition, with Xi Jinping due to take office in March.

China's Foreign Ministry called for calm and restraint and a return to six-party talks, but effectively singled out North Korea, urging the "relevant party" not to take any steps that would raise tensions.

"We hope the relevant party can remain calm and act and speak in a cautious and prudent way and not take any steps which may further worsen the situation," ministry spokesman Hong Lei told reporters at a regular press briefing.

North Korea has rejected proposals to restart the talks aimed at reining in its nuclear capacity. The United States, China, Russia, Japan and the two Koreas are the six parties involved.

"After all these years and numerous rounds of six-party talks we can see that China's influence over North Korea is actually very limited. All China can do is try to persuade them not to carry out their threats," said Cai Jian, an expert on Korea at Fudan University in Shanghai.

Analysts said the North could test as early as February as South Korea prepares to install a new, untested president or that it could choose to stage a nuclear explosion to coincide with former ruler Kim Jong-il's Feb 16 birthday.

"North Korea will have felt betrayed by China for agreeing to the latest U.N. resolution and they might be targeting (China) as well (with this statement)," said Lee Seung-yeol, senior research fellow at Ewha Institute of Unification Studies in Seoul.

U.S. URGES NO TEST

Washington urged North Korea not to proceed with a third test just as the North's statement was published on Thursday.

"Whether North Korea tests or not is up to North Korea," Glyn Davies, the top U.S. envoy for North Korean diplomacy, said in the South Korean capital of Seoul.

"We hope they don't do it. We call on them not to do it," Davies said after a meeting with South Korean officials. "This is not a moment to increase tensions on the Korean peninsula."

The North was banned from developing missile and nuclear technology under sanctions dating from its 2006 and 2009 nuclear tests.

A South Korean military official said the concern now is that Pyongyang could undertake a third nuclear test using highly enriched uranium for the first time, opening a second path to a bomb.

North Korea's 2006 nuclear test using plutonium produced a puny yield equivalent to one kiloton of TNT - compared with 13-18 kilotons for the Hiroshima bomb - and U.S. intelligence estimates put the 2009 test's yield at roughly two kilotons

North Korea is estimated to have enough fissile material for about a dozen plutonium warheads, although estimates vary, and intelligence reports suggest that it has been enriching uranium to supplement that stock and give it a second path to the bomb.

According to estimates from the Institute for Science and International Security from late 2012, North Korea could have enough weapons grade uranium for 21-32 nuclear weapons by 2016 if it used one centrifuge at its Yongbyon nuclear plant to enrich uranium to weapons grade.

North Korea has not yet mastered the technology needed to make a nuclear warhead small enough for an intercontinental missile, most observers say, and needs to develop the capacity to shield any warhead from re-entry into the earth's atmosphere.

North Korea gave no time-frame for the coming test and often employs harsh rhetoric in response to U.N. and U.S. actions that it sees as hostile.

The bellicose statement on Thursday appeared to dent any remaining hopes that Kim Jong-un, believed to be 30 years old, would pursue a different path from his father, Kim Jong-il, who oversaw the country's military and nuclear programs.

The older Kim died in December 2011.

"The UNSC (Security Council) resolution masterminded by the U.S. has brought its hostile policy towards the Democratic Peoples Republic of Korea (North Korea) to its most dangerous stage," the commission was quoted as saying.

(Additional reporting by Christine Kim in SEOUL, Ben Blanchard and Sui-Lee Wee in Beijing; Writing by David Chance; Editing by Raju Gopalakrishnan and Ron Popeski)

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British PM reaches out to Europe at Davos

DAVOS: British Prime Minister David Cameron insisted Thursday he was not turning his back on Europe as he came face to face with world leaders for the first time since unveiling plans for an EU referendum.

The global elite gathered at the World Economic Forum in Davos and discussed issues ranging from the civil war in Syria and the conflict in Mali to the need to counter tax avoidance by multinational corporations.

But the hot topic at the snowy Swiss ski resort was Cameron's relations with his European Union partners one day after he unveiled his controversial proposal to let the British public vote whether to stay in the bloc.

Cameron held talks with German Chancellor and EU powerbroker Angela Merkel and the prime ministers of Ireland, Italy and the Netherlands at the annual forum as he tried to win their backing for his plans.

"This is not about turning our backs on Europe -- quite the opposite," Cameron told the audience of business leaders, top politicians and journalists.

"It's about how we make the case for a more competitive, open and flexible Europe, and secure the UK's place within it."

His announcement on Wednesday that he wants to renegotiate Britain's relationship with Brussels and then hold an "in-or-out" referendum on membership by the end of 2017 has delighted his increasingly anti-EU party at home.

European leaders in Davos called on Britain to stay in the 27-nation group and made encouraging noises in public, but there were signs he has a mountain to climb to convince them of his case.

Dutch premier Mark Rutte warned that without the EU, Britain would be "an island somewhere in the middle of the Atlantic Ocean, somewhere between the United States and Europe".

Irish Prime Minister Enda Kenny said the EU would be "stronger if Britain is part of it."

Merkel meanwhile sidestepped the topic but reached out to Cameron by vowing more action on one of the key reforms he wants for Europe -- boosting competitiveness.

"I say this expressly to my colleague David Cameron. You too have addressed competitiveness, see this as a central issue to ensure Europe's prosperity for the future," she said.

Former US secretary of state Henry Kissinger told the forum that the "idea of European unity needs to be resolved" for the continent to fully recover from the three-year eurozone debt crisis.

But Cameron rejected any idea of a European superstate or of Britain ever adopting the euro and added that he did not agree that "there should be a country called Europe".

Cameron said in his speech that Britain's presidency of the Group of Eight leading world economies -- Britain, Canada, France, Germany, Italy, Japan, Russia and the United States -- would focus on tackling tax avoidance.

He said multinational corporations must "pay their fair share" of taxes and that too many businesses were abusing tax schemes.

Looking farther afield, UN Secretary General Ban Ki-moon urged members of the Security Council to "overcome the deadlock" and find a solution to the bloodshed in Syria, where 60,000 people have died in the past 22 months.

Russia and China have blocked three previous resolutions threatening sanctions against Syrian President Bashar al-Assad but Ban said letting the conflict go on was an "abdication of our collective responsibility to protect."

Ban also called for the world to help end the crisis in Mali, where a French-led military offensive against Islamist militants is under way.

Davos lived up to its reputation as a venue where deals are sewn up on the sidelines as Ukraine and global oil giant Royal Dutch Shell signed a US$10-billion shale gas deal.

The invitation-only meeting is also known for its lavish cocktail parties -- but with the glitzy guest list comes tight security, with around 5,000 police and military guarding the venue and helicopters buzzing overhead.

- AFP/jc

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Rs 5 lakh MHA reward for CRPF to secure IAF chopper and rescue Chhattisgarh cop

NEW DELHI: The home ministry announced cash reward for CRPF men who secured an Indian Air Force helicopter and rescued a state police wireless operator abandoned after crash landing in Maoist heartland at south Chhattisgarh's Timilwada.

The CRPF men involved in the rescue operations will get Rs 5 lakh from the MHA. The CRPF has already rewarded them Rs 1.5 lakh.

Last Friday, six IAF personnel left behind a light machine gun (LMG) and a pistol when they abandoned the injured Chhattisgarh policeman in the helicopter after Maoists fired at it.

The rebels had fired 19 bullets at the helicopter while it was descending near Timilwada camp of the Chhattisgarh Police to fly two policemen, injured in an encounter with rebels, to hospital. Sources said the chopper was hit by 7.62 mm bullets fired from factory-made automatic guns like self-loading rifle (SLR) and landed about two km from Timilwada camp.

It is a heavily forested area and a traditional stronghold of the Maoists in Chhattisgarh. With no inkling about the location of the chopper, CRPF officers first located forest clearings where choppers can land. Soon after, the CRPF and CoBRA men fanned out in the forests trying to locate the chopper.

"Such a large number of men on the ground seem to have deterred the Maoists from approaching the chopper," said an officer.

By 9.30pm on Saturday — four hours after it crash landed — the chopper was found and soon secured by the security forces, he said.

The Maoists had managed to hit choppers five times before around that area between Sukma and Dantewada districts of Chhattisgarh. "Except this time, in all the five cases the chopper could fly away to safety," said an officer.

Ahead of the Republic Day, the home ministry has alerted Maoist-hit states to step up security, especially, in the districts grappling with violence by the rebels. In Maoist parlance, it is called fake republic day. Going by past incidents, security agencies suspect Maoists may hoist black flags, desecrate the national flag and stoke violence in their strongholds in Chhattisgarh, Jharkhand, Bihar, Odisha and Maharashtra. Maoists have directed schools in Jharkhand's Giridih and several districts of Chhattisgarh to boycott R-Day celebrations, said an MHA official. Security agencies fear Maoists could target railway tracks and blast IEDs to disrupt traffic on roads.

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US hit by new stomach bug spreading around globe

NEW YORK (AP) — A new strain of stomach bug sweeping the globe is taking over in the U.S., health officials say.

Since September, more than 140 outbreaks in the U.S. have been caused by the new Sydney strain of norovirus. It may not be unusually dangerous; some scientists don't think it is. But it is different, and many people might not be able to fight off its gut-wrenching effects.

Clearly, it's having an impact. The new strain is making people sick in Japan, Western Europe, and other parts of the world. It was first identified last year in Australia and called the Sydney strain.

In the U.S., it is now accounting for about 60 percent of norovirus outbreaks, according to report released Thursday by the Centers for Disease Control and Prevention.

Norovirus — once known as Norwalk virus — is highly contagious and often spreads in places like schools, cruise ships and nursing homes, especially during the winter. Last month, 220 people on the Queen Mary II were stricken during a Caribbean cruise.

Sometimes mistakenly called stomach flu, the virus causes bouts of vomiting and diarrhea for a few days.

Every two or three years, a new strain evolves — the last was in 2009. The Sydney strain's appearance has coincided with a spike in influenza, perhaps contributing to the perception that this is a particularly bad flu season in the U.S.

Ian Goodfellow, a prominent researcher at England's University of Cambridge, calls norovirus 'the Ferrari of viruses' for the speed at which it passes through a large group of people.

"It can sweep through an environment very, very quickly. You can be feeling quite fine one minute and within several hours suffer continuous vomiting and diarrhea," he said.

Health officials have grown better at detecting new strains and figuring out which one is the culprit. They now know that norovirus is also the most common cause of food poisoning in the U.S.

It's spread by infected food handlers who don't do a good job washing their hands after using the bathroom. But unlike salmonella and other foodborne illnesses, norovirus can also spread in the air, through droplets that fly when a sick person vomits.

"It's a headache" to try to control, said Dr. John Crane, a University of Buffalo infectious disease specialist who had to deal with a norovirus outbreak in a hospital ward a couple of years ago.

Each year, noroviruses cause an estimated 21 million illnesses and 800 deaths, the CDC says.

For those infected, there's really no medicine. They just have to ride it out for the day or two of severe symptoms, and guard against dehydration, experts said.

The illness even got the attention of comedian Stephen Colbert, who this week tweeted: "Remember, if you're in public and have the winter vomiting bug, be polite and vomit into your elbow."

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Online:

CDC report: http://www.cdc.gov/mmwr

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Exterminator Charged in Pa. Doctor's Murder

An exterminator named Joseph Smith was arrested and charged today in the strangling and burning death of Philadelphia pediatrician Melissa Ketunuti.

Smith, 36, had been sent to Ketunuti's home on a service call where the two got into "some kind of argument" in Ketunuti's basement on Monday, Capt. James Clark of the Philadelphia police department said this morning.

"At her home they got into an argument. It went terribly wrong. He struck her, and knocked her to the ground," Clark said. "Immediately he jumped on top of her, started strangling her. She passed out, and then he set her body on fire."

Clark said Smith burned the woman's body "to hide evidence like DNA." He said "at some point, he bound her up." The doctor was found with her hands and feet tied behind her back.

The captain said that before today's arrest Smith's record consisted of only "minor traffic offenses."

Philadelphia Police Department/AP Photo

Pa. Doctor Killing: Person of Interest in Custody Watch Video

Philadelphia Doctor's Murder Leaves Police Baffled Watch Video

Police received a call from Ketunuti's dog-walker about the house fire around 12:30 p.m. Monday, and once inside found Ketunuti with her hands and feet bound. They believe Smith hit her and strangled her with a rope, causing her to pass out, and then bound her body and set fire to it in order to destroy evidence, including DNA evidence.

Ketunuti, 35, was fully clothed and police do not believe she was sexually assaulted.

She was a doctor at Children's Hospital of Philadelphia and had lived alone in the Graduate Hospital neighborhood of the city for about three years.

Clark said that homicide detectives scoured the neighborhood for surveillance videos from nearby stores and businesses, and through the video identified the suspect.

Smith was spotted on video getting out of the vehicle and following Ketunuti to her home. The man left her home after an hour and was seen on video circling her home.

Detectives drove to Clark's home in Levittown, Pa., outside of Philadelphia where he lives with a girlfriend and her child, on Wednesday night and brought him back to the Philadelphia police station.

A silver Ford truck was towed from Smith's home, which was the same truck spotted on surveillance video Monday in Ketunuti's neighborhood, sources told ABC News affiliate WPVI.

There, he gave statements that led police to charge him with the murders, Clark said.

Smith will face charges of murder, arson, and abuse of a corpse.

Ketunuti's hospital issued a statement Tuesday that she was "a warm, caring, earnest, bright young woman with her whole future ahead of her," adding that she will be deeply missed.

"[She was] super pleasant, really nice," one neighbor said. "Just super friendly."

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Cameron promises Britons vote on EU exit

LONDON (Reuters) - Prime Minister David Cameron promised Britons a vote on quitting the European Union, rattling London's biggest allies and some investors by raising the prospect of uncertainty and upheaval.

Cameron announced on Wednesday that the referendum would be held by the end of 2017 - provided he wins a second term - and said that while Britain did not want to retreat from the world, public disillusionment with the bloc was at "an all-time high".

"It is time for the British people to have their say. It is time for us to settle this question about Britain and Europe," Cameron said in a speech, adding that his Conservative party would campaign for the 2015 parliamentary election on a promise to renegotiate the terms of Britain's EU membership.

"When we have negotiated that new settlement, we will give the British people a referendum with a very simple in or out choice to stay in the European Union on these new terms; or come out altogether. It will be an in-out referendum."

A referendum would mark the second time British voters have had a direct say on the issue. In 1975, they decided by a wide margin to stay in, two years after the country had joined.

Most recent opinion polls have shown a slim majority would vote to leave amid bitter disenchantment, fanned by a hostile press, about the EU's perceived influence on the British way of life. However, a poll this week showed a majority for staying.

Cameron's position is fraught with uncertainty. He must come from behind to win the next election, secure support from the EU's 26 other states for a new British role, and hope those countries can persuade their voters to back the changes.

He also avoided saying exactly what he would do if he failed to win concessions in Europe, as many believe is likely.

Critics, notably among business leaders worried about the effect on investment, say that for years before a vote, Britain may slip into a dangerous and damaging limbo that could leave it adrift or effectively pushed out of the EU.

The United States, a close ally, is also uneasy about the plan, believing it will dilute Britain's international clout. President Barack Obama told Cameron last week that Washington valued "a strong UK in a strong European Union" and the White House said on Wednesday it believed Britain's membership of the EU was mutually beneficial.

Some of Britain's European partners were also anxious and told Cameron on Wednesday his strategy reflected a selfish and ignorant attitude. However, Angela Merkel, the leader of EU paymaster Germany, was quick to say she was ready to discuss Cameron's ideas.

FRENCH "NON"

French Foreign Minister Laurent Fabius was less diplomatic: "If Britain wants to leave Europe, we will roll out the red carpet," he quipped, echoing words Cameron used recently to urge France's rich to escape high taxes and move to Britain.

French President Francois Hollande repeated his refusal of special deals: "What I will say, speaking for France, and as a European, is that it isn't possible to bargain over Europe to hold this referendum," he said. "Europe must be taken as it is.

"One can have it modified in future but one cannot propose reducing or diminishing it as a condition of staying in."

Italian Prime Minister Mario Monti was more positive. He said he agreed with Cameron on the need to make the EU more innovative and welcomed the idea of a British referendum, saying he thought Britons would ultimately vote to stay in the bloc.

Billed by commentators as the most important speech of Cameron's career, his referendum promise ties him firmly to an issue that has bedeviled a generation of Conservative leaders.

In the past, he has been careful to avoid bruising partisan fights over Europe, an issue that undid the last two Conservative prime ministers, John Major and Margaret Thatcher.

His speech appeared to pacify a powerful Euroskeptic wing inside his own party, but deepen rifts with the Liberal Democrats, the junior partners in his coalition. Their leader, Deputy Prime Minister Nick Clegg, said the plan would undermine a fragile economic recovery.

Sterling fell to its lowest in nearly five months against the dollar on Wednesday as Cameron was speaking.

"BREXIT"?

Cameron said he would take back powers from Brussels, saying later in parliament that, when it came to employment, social and environmental legislation, "Europe has gone far too far".

But such a clawback - still the subject of an internal audit to identify which specific powers he should target for repatriation to London - is likely to be easier said than done.

If Cameron wins re-election but then fails to renegotiate Britain's membership of the EU, a 'Brexit' could loom.

Business leaders have warned that years of doubt over Britain's EU membership would damage the $2.5 trillion economy and cool the investment climate.

"Having a referendum creates more uncertainty and we don't need that," Martin Sorrell, chief executive of advertising giant WPP, told the World Economic Forum in Davos. "This is a political decision. This is not an economic decision.

"This isn't good news. You added another reason why people will postpone investment decisions."

Cameron has been pushed into taking such a strong position partly by the rise of the UK Independence Party, which favors complete withdrawal from the EU and has climbed to third in the opinion polls, mainly at the expense of the Conservatives.

"All he's trying to do is to kick the can down the road and to try and get UKIP off his back," said UKIP leader Nigel Farage.

Euroskeptics in Cameron's party, who have threatened to stir up trouble for the premier, were thrilled by the speech.

Conservative lawmaker Peter Bone called it "a terrific victory" that would unify 98 percent of the party. "He's the first prime minister to say he wants to bring back powers from Brussels," Bone told Reuters. "It's pretty powerful stuff".

Whether Cameron holds the referendum remains as uncertain as the Conservatives' chances of winning the election. They trail the opposition Labour party in opinion polls, and the coalition is grappling with a stagnating economy as it pushes through unpopular public spending cuts to reduce a large budget deficit.

Labour leader Ed Miliband said on Wednesday his party did not want an in-or-out referendum.

EU REFORM

Cameron said he would campaign for Britain to stay in the EU "with all my heart and soul", provided he secured the reforms he wants. He made clear the Union must become less bureaucratic and focus more on free trade.

It was riskier to maintain the status quo than to change, he said: "The biggest danger to the European Union comes not from those who advocate change, but from those who denounce new thinking as heresy," he said.

Asked whether, if he did not succeed in his renegotiation strategy, would recommend a vote to take Britain out, he said only: "I want to see a strong Britain in a reformed Europe.

"We have a very clear plan. We want to reset the relationship. We will hold that referendum. We will recommend that resettlement to the British people."

Cameron said the euro zone debt crisis was forcing the bloc to change and that Britain would fight to make sure new rules were fair to the 10 countries that do not use the common currency, of which Britain is the largest.

Democratic consent for the EU in Britain was now "wafer thin", he said:

"Some people say that to point this out is irresponsible, creates uncertainty for business and puts a question mark over Britain's place in the European Union. But the question mark is already there: ignoring it won't make it go away."

A YouGov opinion poll on Monday showed that more people wanted to stay in the EU than leave it, the first such result in many months. But it was unclear whether that result was a blip.

Paul Chipperfield, a 53-year-old management consultant, said he liked the strategy: "Cameron's making the right move because I don't think we've had enough debate in this country," he said.

"We should be part of the EU but the EU needs to recognize that not everybody's going to jump on the same bandwagon."

Asked after the speech whether other EU countries would agree to renegotiate Britain's membership, Cameron said he was an optimist and that there was "every chance of success".

"I don't want Britain to leave the EU," he told parliament later. "I want Britain to reform the EU."

In the 1975 referendum, just over 67 percent voted to stay inside with nearly 33 percent against.

(Additional reporting by Paul Taylor in Davos, Alexandra Hudson in Berlin, Brenda Goh in London, Jeff Mason in Washington and James Mackenzie in Rome; Editing by Guy Faulconbridge, David Stamp and Alastair Macdonald)

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White House lifts hold on general for NATO job

WASHINGTON: President Barack Obama will go ahead with his nomination of General John Allen to command NATO after he was cleared in a saga related to the sex scandal that felled CIA director David Petraeus, officials said Wednesday.

"The investigation is now complete and General Allen's nomination to serve as the next Supreme Allied Commander Europe will proceed. We hope the Senate will consider it in a timely manner," White House spokesman Jay Carney said.

The Defense Department's inspector general exonerated Allen, currently the top general in Afghanistan, over emails sent to Florida socialite Jill Kelley, who threw parties for top brass at US Central Command.

The FBI came upon the emails from Allen in its probe of Petraeus, and defense officials had said the tone of the messages had been potentially "inappropriate" and possibly violated rules applying to military officers.

The scandal, over an affair with a biographer, prompted Petraeus to resign abruptly in November from his CIA post, ending a storied career marked by his tenure as military commander in the wars in Iraq and Afghanistan.

Initially, officials had said there were 25,000 to 30,000 pages of correspondence between Allen and Kelley, raising questions that his emails could reflect a distracted commander.

But officials later said the inquiry was only focused on a few hundred messages.

The scandal broke after Allen was nominated to take over as NATO's supreme allied commander, and his confirmation hearings before the US Senate were put on hold.

- AFP/jc

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Justice Verma panel suggests amendments to AFSPA

NEW DELHI: Taking strong cognizance of sexual offences committed by armed forces personnel in conflict zones, Justice J S Verma committee report has not only recommended amendments to the Armed Forces Special Powers Act (AFSPA) but even questioned its continuance in such areas.

The report has recommended that the Act's provision of seeking sanction from the central government before initiating any legal action against an armed forces personnel should be done away with in case of sexual crimes. These would include crimes such as outraging the modesty of a woman and rape.

While making this recommendation Justice Verma has observed that "There is an imminent need to review the continuance of AFSPA and AFSPA-like legal protocols in internal conflict areas as soon as possible. This is necessary for determining the propriety of resorting to this legislation in the area(s) concerned."

The north-east and Jammu & Kashmir have seen massive protests over the years against AFSPA specially due to the protection given to armed forces personnel against legal action that people believe allows the men in uniform get away with heinous crimes. While, J&K CM Omar Abdullah has recommended removal of AFSPA from certain areas of the state, home minister Sushilkumar Shinde has repeatedly said that time isn't ripe yet.

With respect to amendments in the Act to ensure safety of women, Justice Verma has noted: "At the outset, we notice that impunity for systematic or isolated sexual violence in the process of Internal Security duties is being legitimized by the Armed Forces Special Powers Act, which is in force in large parts of our country. It must be recognized that women in conflict areas are entitled to all the security and dignity that is afforded to citizens in any other part of our country."

To ensure protection of women in conflict areas, the report has also made several recommendations that include bringing sexual violence against women by uniformed men under the purview of ordinary criminal law and appointment of special commissioners for safety of women in conflict areas.

"These commissioners must be chosen from those who have experience with women's issues, preferably in conflict areas. In addition, such commissioners must be vested with adequate powers to monitor and initiate action for redress and criminal prosecution in all cases of sexual violence against women by armed personnel," the report states.

The committee has also recommended reorientation of training of armed forces to include laws and issues related to women's safety.

Full text of Justice (retired) JS Verma Committee report

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