Prayers for Ajmal Kasab at mosque: Police launch probe

KOCHI: Police have launched an investigation into the offering of prayers at a mosque here for Ajmal Kasab, who was hanged for carrying out the Mumbai terror attack in 2008.

The prayers were reportedly offered by an imam on November 23 after the Friday namaz at the mosque at nearby Trikkakara. After the namaz, prayers were offered for departed souls and the priest had reportedly included the name of Kasab.

When the incident leaked out, police began a probe and questioned the mosque's authorities and those who had participated in the prayers.

The managing committee of the mosque removed the imam from the post after learning about the incident, committee sources said.

Investigation is on, police said. Kasab was hanged in Yerawada jail in Pune on November 21.

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Kenya hospital imprisons new mothers with no money


NAIROBI, Kenya (AP) — The director of the Pumwani Maternity Hospital, located in a hardscrabble neighborhood of downtown Nairobi, freely acknowledges what he's accused of: detaining mothers who can't pay their bills. Lazarus Omondi says it's the only way he can keep his medical center running.


Two mothers who live in a mud-wall and tin-roof slum a short walk from the maternity hospital, which is affiliated with the Nairobi City Council, told The Associated Press that Pumwani wouldn't let them leave after delivering their babies. The bills the mothers couldn't afford were $60 and $160. Guards would beat mothers with sticks who tried to leave without paying, one of the women said.


Now, a New York-based group has filed a lawsuit on the women's behalf in hopes of forcing Pumwani to stop the practice, a practice Omondi is candid about.


"We hold you and squeeze you until we get what we can get. We must be self-sufficient," Omondi said in an interview in his hospital office. "The hospital must get money to pay electricity, to pay water. We must pay our doctors and our workers."


"They stay there until they pay. They must pay," he said of the 350 mothers who give birth each week on average. "If you don't pay the hospital will collapse."


The Center for Reproductive Rights, which filed the suit this month in the High Court of Kenya, says detaining women for not paying is illegal. Pumwani is associated with the Nairobi City Council, one reason it might be able to get away with such practices, and the patients are among Nairobi's poorest with hardly anyone to stand up for them.


Maimouna Awuor was an impoverished mother of four when she was to give birth to her fifth in October 2010. Like many who live in Nairobi's slums, Awuor performs odd jobs in the hopes of earning enough money to feed her kids that day. Awuor, who is named in the lawsuit, says she had saved $12 and hoped to go to a lower-cost clinic but was turned away and sent to Pumwani. After giving birth, she couldn't pay the $60 bill, and was held with what she believes was about 60 other women and their infants.


"We were sleeping three to a bed, sometimes four," she said. "They abuse you, they call you names," she said of the hospital staff.


She said saw some women tried to flee but they were beaten by the guards and turned back. While her husband worked at a faraway refugee camp, Awuor's 9-year-old daughter took care of her siblings. A friend helped feed them, she said, while the children stayed in the family's 50-square-foot shack, where rent is $18 a month. She says she was released after 20 days after Nairobi's mayor paid her bill. Politicians in Kenya in general are expected to give out money and get a budget to do so.


A second mother named in the lawsuit, Margaret Anyoso, says she was locked up in Pumwani for six days in 2010 because she could not pay her $160 bill. Her pregnancy was complicated by a punctured bladder and heavy bleeding.


"I did not see my child until the sixth day after the surgery. The hospital staff were keeping her away from me and it was only when I caused a scene that they brought her to me," said Anyoso, a vegetable seller and a single mother with five children who makes $5 on a good day.


Anyoso said she didn't have clothes for her child so she wrapped her in a blood-stained blouse. She was released after relatives paid the bill.


One woman says she was detained for nine months and was released only after going on a hunger strike. The Center for Reproductive Rights says other hospitals also detain non-paying patients.


Judy Okal, the acting Africa director for the Center for Reproductive Rights, said her group filed the lawsuit so all Kenyan women, regardless of socio-economic status, are able to receive health care without fear of imprisonment. The hospital, the attorney general, the City Council of Nairobi and two government ministries are named in the suit.


___


Associated Press reporter Tom Odula contributed to this report.


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NYC Subway Pusher Held For Hate-Crime Murder













A woman who allegedly told New York City police she pushed a man onto the subway tracks because she hated Hindus and Muslims has been charged with murder as a hate crime.


Erica Menendez, 31, allegedly told police that she "pushed a Muslim off the train tracks because I hate Hindus and Muslims ever since 2001 when they put down the twin towers I've been beating them up."


Menendez was taken into custody this morning after a two-day search, and when detectives were interviewing her she allegedly made the statements implicating herself in Thursday night's subway-platform death.


"The defendant is accused of committing what is every subway commuter's worst nightmare -- being suddenly and senselessly pushed into the path of an oncoming train," Queen District Attorney Richard A. Brown said. "The victim was allegedly shoved from behind and had no chance to defend himself. Beyond that, the hateful remarks allegedly made by the defendant and which precipitated the defendant's actions can never be tolerated by a civilized society."


Menendez was due to be arraigned this evening. She could face 25 years to life in prison if convicted of the second degree murder charge.


On Thursday night, a woman shoved a man from a subway platform at Queens Boulevard, and the man was crushed beneath an oncoming train. Police had searched the area for her after the incident.










New York City Subway Pusher Charged With Murder Watch Video







The victim was Sunando Sen, identified by several media outlets as a graphic designer and Indian immigrant who opened a print shop, Amsterdam Copy, on Manhattan's Upper West Side. Sen was struck by the No. 7 train after the unidentified woman allegedly pushed him from the northbound platform at 40th Street and Queens Boulevard at 8:04 p.m. on Thursday.


Witnesses told police they had seen the woman mubling to herself, pacing along the platform. She gave Sen little time to react, witnesses said.


"Witnesses said she was walking back and forth on the platform, talking to herself, before taking a seat alone on a wooden bench near the north end of the platform. When the train pulled into the station, the suspect rose from the bench and pushed the man, who was standing with his back to her, onto the tracks into the path of the train," NYPD Deputy Commissioner Paul J. Browne said earlier today. "The victim appeared not to notice her, according to witnesses."


READ: What to Do If You Fall on the Subway Tracks


Police released brief surveillance video of the woman fleeing the subway station, and described the suspect as a woman in her 20s, "heavy set, approximately 5'5" with brown or blond hair."


It was New York's second death of this kind in less than a month. On Dec. 3, 58-year-old Ki-Suck Han of Queens was shoved onto the tracks at New York's Times Square subway station. Two days later, police took 30-year-old Naeem Davis into custody.


On Friday, New York City Mayor Michael Bloomberg was asked whether the attack might be related to the increase of mentally ill people on the streets following closures of institutions over the past four decades.


"The courts or the law have changed and said, no, you can't do that unless they're a danger to society. Our laws protect you," Bloomberg said on his weekly radio show.



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Body of India rape victim arrives home in New Delhi


NEW DELHI (Reuters) - The body of a woman whose gang rape provoked protests and rare national debate about violence against women in India arrived back in New Delhi early on Sunday and was quickly cremated at a private ceremony.


The unidentified 23-year-old medical student died from her injuries on Saturday, prompting promises of action from a government that has struggled to respond to public outrage.


She had suffered brain injuries and massive internal injuries in the attack on December 16, and died in hospital in Singapore where she had been taken for treatment.


She and a male friend had been returning home from the cinema, media reports say, when six men on a bus beat them with metal rods and repeatedly raped the woman. The friend survived.


Six suspects were charged with murder after her death.


A Reuters correspondent saw family members who had been with her in Singapore take her body from the airport to their Delhi home in an ambulance with a police escort.


Ruling party leader Sonia Gandhi was seen arriving at the airport when the plane landed and Prime Minister Mannmohan Singh's convoy was also there, the witness said.


The body was then taken to a crematorium and cremated. Media were kept away but a Reuters witness saw the woman's family, New Delhi's chief minister, Sheila Dikshit, and the junior home minister, R P N Singh, coming out of the crematorium.


Security in the capital remained tight after authorities, worried about the reaction to the news of her death, had on Saturday deployed thousands of policemen and closed some roads and metro stations.


Protesters still gathered, in New Delhi and other cities, to keep the pressure on Singh's government to get tougher on crime against women. Last weekend, protesters fought pitched battles with police.


On Sunday, lines of policemen in riot gear and armed with heavy wooden sticks stood in front of metal barricades closing off roads in New Delhi. Morning traffic was light.


DOUBTS


The outcry over the attack caught the government off-guard. It took a week for Singh to make a statement, infuriating many protesters.


Issues such as rape, dowry-related deaths and female infanticide rarely enter mainstream political discourse in India.


Analysts say the death of the woman dubbed "Amanat", an Urdu word meaning "treasure", by some Indian media could change that, although it is too early to say whether the protesters calling for government action to better safeguard women can sustain their momentum through to national elections due in 2014.


Newspapers raised doubts about the commitment of both male politicians and the police to protecting women.


"Would the Indian political system and class have been so indifferent to the problem of sexual violence if half or even one-third of all legislators were women?" the Hindu newspaper asked.


The Indian Express acknowledged the police force was understaffed and poorly paid, but there was more to it than that.


"It is geared towards dominating citizens rather than working for them, not to mention being open to influential interests," the newspaper said. "It reflects the misogyny around us, rather than actively fighting for the rights of citizens who happen to be female."


Most sex crimes in India go unreported, many offenders go unpunished, and the wheels of justice turn slowly, according to social activists, who say that successive governments have done little to ensure the safety of women.


Commentators and sociologists say the rape has tapped into a deep well of frustration many Indians feel over what they see as weak governance and poor leadership on social issues.


New Delhi has the highest number of sex crimes among India's major cities, with a rape reported on average every 18 hours, according to police figures. Government data show the number of reported rape cases in India rose by nearly 17 percent between 2007 and 2011.


For a link to the poll, click http://www.trust.org/trustlaw/news/special-coverage/g20women/


(Additional reporting by Ross Colvin and Diksha Madhok; Writing by Louise Ireland; Editing by Kevin Liffey and Robert Birsel)



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Scuffles erupt at Hong Kong pro-government march






HONG KONG: Scuffles broke out on Sunday as thousands marched in support of Hong Kong's scandal-plagued leader Leung Chun-ying, ahead of a mass pro-democracy rally planned for New Year's day.

Around 2,500 people took to the cold and windy streets waving Chinese flags and shouting slogans in favour of Leung, who faces possible impeachment proceedings over illegal alterations to his luxury home.

Leung was chosen to lead the city in March by a pro-Beijing election committee, promising to improve governance and uphold the rule of law in the former British colony of seven million people.

But in his first sixth months in power, Leung has seen his popularity ratings slide and faced a no-confidence vote in the city's legislature.

"We welcome people to support the government and to support the stability and prosperity of Hong Kong citizens," said Caring Hong Kong Power, the organisers of Sunday's march which began at the city's Victoria Park and ended at the government headquarters.

But scuffles erupted mid way between pro-Leung supporters and anti-government campaigners who arrived carrying colonial Hong Kong flags.

Some participants were also seen punching two reporters from a local television station, according to an AFP photographer.

"I am not comfortable with the increasing power of groups that create turmoil in Hong Kong," Stan Ngan, a 63-year-old retiree at the event told AFP, referring to increasingly vocal pro-democracy groups.

Pro-democracy campaigners plan to hold a rally on January 1 to demand the resignation of Leung and ask for universal suffrage, with organisers saying they hope to see 100,000 people at the rally.

Hong Kong returned to China in 1997 as a semi-autonomous territory with its own political and legal system.

Leung survived a vote of no confidence in the legislature earlier this month over illegal structures in his home, including a wooden trellis and a glass enclosure.

But he faces a planned impeachment motion scheduled for early January, with 27 pro-democracy lawmakers in the 70-member legislature saying they would support the motion.

- AFP



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Congress anti-rape draft bill proposes 30 years jail, chemical castration

NEW DELHI: Imprisonment of upto 30 years for rape convicts has been proposed by Congress in a draft bill for a tougher law to check crimes against women which could also include chemical castration in rare cases.

The final draft of the Congress' bill, which is to be submitted to Justice J S Verma-led Committee set up by the Centre in the wake of the horrific gang rape of the 23-year-old girl, who died yesterday, has not been readied yet, sources said today.

Some of the provisions of this tougher law includes imprisonment up to 30 years for rape convicts and setting up of fast track-courts to decide the cases within 3 months were discussed in the presence of Congress chief Sonia Gandhi on December 23 when she met a group of people protesting against the gang-rape incident a week earlier.

There is also a suggestion to re-define the Juvenile Act and lower their age.

One of the accused in the rape case is a juvenile and aged a few months less than 18 years. A view has been expressed by a section that only those below 15 years should be described as juvenile.

Sonia Gandhi-led National Advisory Council, which has framed and helped frame many landmark legislations like RTI is likely to be involved in the whole exercise.

Sources said the Women and Child Development Ministry, headed by Krishna Tirath, held a marathon meeting with stakeholders on this issue on Friday during which several suggestions have been made.

The ministry will prepare a summary of suggestions received and will submit it to the Justice Verma-headed three-member committee set up to review existing laws and make recommendations for changes in them to effectively check crimes against women.

"There is no government draft till now. The summary that we submit to J S Verma Committee will be the first written document on which the new law will be based," sources told.

At the meeting with the protestors at her 10 Janpath residence, Gandhi had favoured fast track courts for trying rape cases with a 90-day cap while party spokesperson Renuka Chowhdary made a strong pitch for chemical castration to rape convicts. Chowdhary such a punishment is already in vogue in various countries and that it had a deterrent effect, sources said. PTI

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Kenya hospital imprisons new mothers with no money


NAIROBI, Kenya (AP) — The director of the Pumwani Maternity Hospital, located in a hardscrabble neighborhood of downtown Nairobi, freely acknowledges what he's accused of: detaining mothers who can't pay their bills. Lazarus Omondi says it's the only way he can keep his medical center running.


Two mothers who live in a mud-wall and tin-roof slum a short walk from the maternity hospital, which is affiliated with the Nairobi City Council, told The Associated Press that Pumwani wouldn't let them leave after delivering their babies. The bills the mothers couldn't afford were $60 and $160. Guards would beat mothers with sticks who tried to leave without paying, one of the women said.


Now, a New York-based group has filed a lawsuit on the women's behalf in hopes of forcing Pumwani to stop the practice, a practice Omondi is candid about.


"We hold you and squeeze you until we get what we can get. We must be self-sufficient," Omondi said in an interview in his hospital office. "The hospital must get money to pay electricity, to pay water. We must pay our doctors and our workers."


"They stay there until they pay. They must pay," he said of the 350 mothers who give birth each week on average. "If you don't pay the hospital will collapse."


The Center for Reproductive Rights, which filed the suit this month in the High Court of Kenya, says detaining women for not paying is illegal. Pumwani is associated with the Nairobi City Council, one reason it might be able to get away with such practices, and the patients are among Nairobi's poorest with hardly anyone to stand up for them.


Maimouna Awuor was an impoverished mother of four when she was to give birth to her fifth in October 2010. Like many who live in Nairobi's slums, Awuor performs odd jobs in the hopes of earning enough money to feed her kids that day. Awuor, who is named in the lawsuit, says she had saved $12 and hoped to go to a lower-cost clinic but was turned away and sent to Pumwani. After giving birth, she couldn't pay the $60 bill, and was held with what she believes was about 60 other women and their infants.


"We were sleeping three to a bed, sometimes four," she said. "They abuse you, they call you names," she said of the hospital staff.


She said saw some women tried to flee but they were beaten by the guards and turned back. While her husband worked at a faraway refugee camp, Awuor's 9-year-old daughter took care of her siblings. A friend helped feed them, she said, while the children stayed in the family's 50-square-foot shack, where rent is $18 a month. She says she was released after 20 days after Nairobi's mayor paid her bill. Politicians in Kenya in general are expected to give out money and get a budget to do so.


A second mother named in the lawsuit, Margaret Anyoso, says she was locked up in Pumwani for six days in 2010 because she could not pay her $160 bill. Her pregnancy was complicated by a punctured bladder and heavy bleeding.


"I did not see my child until the sixth day after the surgery. The hospital staff were keeping her away from me and it was only when I caused a scene that they brought her to me," said Anyoso, a vegetable seller and a single mother with five children who makes $5 on a good day.


Anyoso said she didn't have clothes for her child so she wrapped her in a blood-stained blouse. She was released after relatives paid the bill.


One woman says she was detained for nine months and was released only after going on a hunger strike. The Center for Reproductive Rights says other hospitals also detain non-paying patients.


Judy Okal, the acting Africa director for the Center for Reproductive Rights, said her group filed the lawsuit so all Kenyan women, regardless of socio-economic status, are able to receive health care without fear of imprisonment. The hospital, the attorney general, the City Council of Nairobi and two government ministries are named in the suit.


___


Associated Press reporter Tom Odula contributed to this report.


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Obama Still Hopeful in Final Days Before 'Cliff'


Dec 29, 2012 6:00am







ap obama cliff lt 121229 wblog President Obama Still Hopeful in Final Days Before Cliff

AP Photo/ Evan Vucci


Three days remain for Congress to pass a federal budget agreement that would avoid the so-called “fiscal cliff” and today President Obama said he believes the House and Senate leadership can squeak out a deal in time.


In his weekly address, released this morning, the president said allowing the package of perilous tax increases and budget cuts set to take effect in the New Year “would be the wrong thing to do for our economy.”


“Congress can prevent it from happening if they act now,” he said. “Leaders in Congress are working on a way to prevent this tax hike on the middle class, and I believe we may be able to reach an agreement that can pass both houses in time.”


The president was referring to Senate Majority Leader Harry Reid, D-Nev., and Minority Leader Mitch McConnell, R-Ky., who were attempting to quickly fashion a deal that can pass both chambers of Congress. Although not mentioned specifically in the video, the two leaders and their House counterparts, Speaker John Boehner, R-Ohio, and Rep. Nancy Pelosi, D-Calif., met with the president and his staff at the White House Friday that left both parties’ leadership cautiously optimistic in public statements following the meeting.


INFOGRAPHIC: Fiscal Cliff: Why It Matters


Largely repeating remarks he made following the meeting, the president noted that should the last-minute wrangling fail he has asked Reid to deliver a basic proposal to the Senate floor for a simple up-or-down vote.


“We believe such a proposal could pass both houses with bipartisan majorities -as long as these leaders allow it to come to a vote.  If they still want to vote no and let this tax hike hit the middle class, that’s their prerogative – but they should let everyone vote.  That’s the way this is supposed to work,” he said. “We just can’t afford a politically self-inflicted wound to our economy.”


Reid’s backup legislation would reflect the Democrats’ side in this quagmire, demanding a tax boost for household incomes greater than $250,000 and an extension of unemployment benefits for roughly 2 million Americans that is set to expire without their reauthorization.


Fiscal Cliff: By The Numbers


“You meet your deadlines and your responsibilities every day,” Obama said. “The folks you sent here to serve should do the same.”


The president’s statement came a day before what could be a critical turning point in the “cliff” ordeal. On Sunday, the House of Representatives returns from holiday recess, the same day McConnell and Reid could offer up a hypothetical deal for a vote. Meanwhile, NBC’s “Meet the Press” will air a televised interview with Obama that morning.



SHOWS: Good Morning America World News







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Indian gang rape victim dies; protesters defy lock-down


NEW DELHI/SINGAPORE (Reuters) - A woman whose gang rape sparked protests and a national debate about violence against women in India died of her injuries on Saturday, prompting a security lockdown in New Delhi and an acknowledgement from India's prime minister that social change is needed.


The six suspects held in connection with the December 16 attack on the 23-year-old medical student on a New Delhi bus were charged with murder following her death, police said. The maximum penalty for murder is death.


Earlier, bracing for a new wave of protests, Indian authorities deployed thousands of policemen, closed 10 metro stations and banned vehicles from some main roads in the heart of New Delhi, where demonstrators have converged since the attack to demand improved women's rights.


Despite efforts to cordon off the city centre, more than 1,000 people gathered for peaceful protests at two locations. Some protesters shouted for justice, others for the death penalty for the rapists.


The woman severely beaten, raped and thrown out of a moving bus, had been flown to Singapore in a critical condition by the Indian government on Thursday for treatment.


The intense media coverage of the attack and the use of social media to galvanize protests, mostly by young middle-class students, has forced political leaders to confront some uncomfortable truths about the treatment of women in the world's largest democracy.


Most sex crimes in India go unreported, many offenders go unpunished, and the wheels of justice turn slowly, according to social activists who say that successive governments have done little to ensure the safety of women.


"The need of the hour is a dispassionate debate and inquiry into the critical changes that are required in societal attitudes," Prime Minister Manmohan Singh said in a statement.


"I hope that the entire political class and civil society will set aside narrow sectional interests and agenda to help us all reach the end that we all desire - making India a demonstrably better and safer place for women to live in."


Hundreds of protesters took to the streets in the northern Indian city of Lucknow. In Hyderabad, in southern India, a group of women marched to demand severe punishment for the rapists. Protests were also held in the cities of Chennai, Kolkata and Mumbai.


The demonstrations were peaceful, unlike last weekend, when police used batons, water cannon and teargas in clashes with protesters.


Sonia Gandhi, the powerful leader of the ruling Congress party, directly addressed the protesters in a rare broadcast on state television, saying that as a mother and a woman she understood their grievances.


"Your voice has been heard," Gandhi said. "It deepens our determination to battle the pervasive and the shameful social attitudes that allow men to rape and molest women with such impunity."


The Indian government has chartered an aircraft to fly the student's body back to India on Saturday, along with members of her family, T.C.A. Raghavan, the Indian high commissioner to Singapore, told reporters.


The body was taken to a Hindu casket firm in Singapore for embalming. Indian diplomats selected a gold and yellow coffin to transport her home, staff at the firm told reporters.


"She was courageous in fighting for her life for so long against the odds but the trauma to her body was too severe for her to overcome," Kelvin Loh, chief executive officer of the Mount Elizabeth Hospital in Singapore said in a statement announcing her death from multiple organ failure.


The victim and a male friend were returning home from the cinema by bus when, media reports say, six men on the bus beat them with metal rods and repeatedly raped the woman. Media said a rod was used in the rape, causing internal injuries. Both were thrown from the bus. The male friend survived.


Six suspects, from a slum in south Delhi, are in custody.


The attack has put gender issues centre stage in Indian politics arguably for the first time. Issues such as rape, dowry-related deaths and female infanticide have rarely entered mainstream political discourse.


Analysts say the death of the woman dubbed "Amanat", an Urdu word meaning "treasure," by some media could change that, although it is too early to say whether the protesters calling for government action to better safeguard women can sustain their momentum through to national elections due in 2014.


WORST PLACE


The outcry over the attack caught the government off-guard and it was slow to reach. It took a week for Singh to make a statement on the attack, infuriating many protesters who saw it as a sign of a government insensitive to the plight of women.


The prime minister, a stiff 80-year-old technocrat who speaks in a low monotone, has struggled to channel the popular outrage in his public statements and convince critics that his eight-year-old government will now take concrete steps to improve the safety of women.


"The Congress managers were ham-handed in their handling of the situation that arose after the brutal assault on the girl. The crowd management was poor," a lawmaker from Singh's ruling Congress party said on condition of anonymity.


Commentators and sociologists say the rape has tapped into a deep well of frustration many Indians feel over what they see as weak governance and poor leadership on social issues.


A global poll by the Thomson Reuters Foundation in June found that India was the worst place to be a woman because of high rates of infanticide, child marriage and slavery.


New Delhi has the highest number of sex crimes among India's major cities, with a rape reported on average every 18 hours, according to police figures. Government data show the number of reported rape cases in the country rose by nearly 17 percent between 2007 and 2011.


For a link to the poll, click http://www.trust.org/trustlaw/news/special-coverage/g20women/


(Additional reporting by Devidutta Tripathy, Satarupa Bhattacharjya, Diksha Madhok, Shashank Chouhan and Suchitra Mohanty in Delhi, Sharat Pradhan in Lucknow, Sujoy Dhar in Kolkata, Anupama Chandrasekaran in Chennai, Kevin Lim, Saeed Azhar, Edgar Su and Sanjeev Miglani in Singapore; Editing by Mark Bendeich and Robert Birsel)



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French 75% tax rate on rich struck down






PARIS: France's top constitutional body on Saturday struck down a 75 per cent upper income tax rate, dealing a major blow to Socialist President Francois Hollande who had made it his centrepiece tax measure.

The government vowed to push ahead with the tax rate, which would apply to incomes over a million euros (US$1.3 million) a year, and propose a new measure that would conform with the constitution.

The tax rate had angered business leaders and prompted some wealthy French citizens to seek tax exile abroad, including actor Gerard Depardieu who recently took up residency in Belgium.

The Constitutional Council said in its ruling that the temporary two-year tax rate, due to start next year, was unconstitutional because, unlike other forms of income tax, it applied to individuals instead of whole households.

As a result, the council said, the tax rate "failed to recognise equality before public burdens".

Though largely symbolic -- it would have applied to only about 1,500 individuals -- the Socialists said the tax rate was aimed at making the ultra-rich contribute more to tackling France's budget deficit.

It was a flagship promise of the election campaign that saw Hollande defeat right-winger Nicolas Sarkozy in May.

"The government will propose a new system that conforms with the principles laid down by the decision of the Constitutional Council. It will be presented in the framework of the next Finance Act," Prime Minister Jean-Marc Ayrault said in a statement after the ruling.

The Constitutional Council also rejected new methods for calculating the wealth tax, striking down a provision that would have increased the amount of taxable revenues and capital gains.

A source close to the government said the council's decisions would have a minimal effect, reducing revenues by only 500 million euros in the 300 billion euro 2013 budget.

Other new measures in the budget were approved, however, including an increase in some upper tax rates to 45 per cent and the addition of capital gains to taxable income.

The council also approved a 20 billion euro business tax credit included in the 2012 budget as a way of promoting economic growth and competitiveness.

France is struggling to plug a 37 billion euro hole in its public finances to meet its target of reducing the budget deficit to the EU ceiling of three percent in 2013.

The 2013 budget included 12.5 billion euros in spending cuts and 20 billion euros in new taxes on individuals and businesses.

Critics have said the new tax measures will stifle economic growth, with the French economy already expected to contract by 0.2 per cent in the final quarter of this year.

The 2013 budget is based on a government forecast of 0.8 per cent economic growth next year -- a figure many economists consider too optimistic.

Hollande, who has pushed policies of economic growth over austerity, has seen his popularity plummet in recent months as the economy stagnates and unemployment mounts.

- AFP/xq



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