Beaches, bombs and gangsters - Corsica becomes victim of its own success as vacation paradise

The bombs exploded across hundreds of miles of Corsican coastline, gutting two dozen villas nearly simultaneously on some of Europe's most beautiful — and valuable — land. Elsewhere on the same French island off the Mediterranean coast, a young man was shot to death in his car, his stepson wounded beside him.
The night of violence in early December epitomized the problems of Napoleon's native island today: Organized crime is gaining ground, spreading beyond the usual vices on the mainland to real estate, tourism and politics back home. And separatists, who extinguished themselves in a spasm of deadly infighting in the late 1990s, have come back with a vengeance, as they wage a desperate battle to prevent mob-dominated mass tourism from dooming their dreams of self-rule.
Corsican coastal land prices have risen as much as five times in as many years, and the number of tourists also has shot up as a once-exclusive haven for the wealthy and their yachts and private vacation homes became a destination for cruise ships and budget flights. Corsican mobsters — infamous in mainland France and the United States for their ties to gambling, nightclubs and drugs — saw a killing to be made back home.
Gang warfare over Corsican spoils and the separatist bombing campaign have created a climate of lawlessness, although the combatants have been careful not to turn the violence on the tourists themselves.
"The state has completely failed," said Dominique Bianchi, a former nationalist leader who recently stepped down as mayor of the southern village of Villanova. "In this world, there's only one thing that counts: how to divide the loot."
Shaken by the bombings, and the recent assassinations of a defence lawyer and community leader, the Paris government is making new promises to clean things up on an island where separatist sentiment has simmered ever since France officially took charge in 1769. Corsica has emerged as a jewel of French mass tourism only recently: More than 4.2 million tourists visited the island last year, compared to 2.4 million in 1992. The 2013 Tour de France, the world's premier cycling competition, will begin here — adding to the sense that Corsica has joined the big leagues as a top travel destination.
Complicating the challenge for France is what mainland officials describe as a code of silence — known as "omerta" — that also runs through areas of mafia-plagued southern Italy. Locals say it's fear, not omerta, that keeps people silent.
Of the 85 gangland killings and attempted assassinations in Corsica in the past eight years, only one case — a plot against a former nationalist turned president of Corsica's biggest soccer team — has ended in conviction.
Both the mob violence and the bombings claimed by militant nationalists have the same root, Corsicans say: the land.
Three-quarters of the coastline is untouched, the beaches and Mediterranean views achingly empty of a human presence just a 90-minute flight from Paris — as developers were scared off by gangland warfare and separatist militancy. "Where else could you go and have this kind of virgin land? It doesn't exist anymore," said Dominique Yvon, who is part of an anti-corruption group on Corsica.
Through the 1990s, the island was rocked by more than 1,000 separatist bombings of vacation homes and construction sites. For mainstream investors, France's Cote d'Azur, much more stable despite its own mob presence, was the place to be.
Then the separatists imploded in the late 1990s. And organized crime came home, seeing an opening to make new profits laundering drug money, much of it during three decades of heroin sales in the United States — spearheading the so-called "French Connection" drug ring — and on the Cote d'Azur, according to Thierry Colombie, who has written a book about the Corsican mob.
Most of the tourists who stayed overnight on the island in 2012 stayed in villas, many of them suspected of links to mob money, that popped up on the coastline when the bombing wave of the 1980s and 1990s finally ended. The number of cruise ship day visitors has also risen from 298,000 in 2001 to 1.1 million in 2011; they spend money in stores, restaurants and clubs before returning to their ships.
Each summer, the population of Corsica doubles from its 300,000 residents. Visitors pay a premium for ocean views and spend money in restaurants and nightclubs. They fly in by plane or sail into harbours like Ajaccio, outfitted for yachts and cruise ships. They come despite a murder rate about eight times higher than the rest of France, largely thanks to the fact that no tourists have been killed in Corsican gangland or separatist violence.
For most of the 20th century, the French government's driving focus was on ending nationalist sentiment, even as Corsica's problem with feeding the global criminal underworld grew. The "French Connection" brought hundreds of millions of dollars worth of heroin into the United States. And Corsican mobsters dominated the gambling and prostitution houses of Paris.
When the latest wave of gangland killings started, in 2006, the French government looked the other way, hoping the criminals would implode the way the nationalists had.
Then, at the end of 2012, when score-settling reached beyond established criminals to Corsica's mainstream political class, the government began to pay serious attention. First, a prominent defence lawyer was killed as he made his usual stop at a gas station on his way to work in Ajaccio. Next, a former nationalist with a uniquely powerful post as head of the chamber of commerce was shot as he closed up shop.
As president of the chamber of commerce, Jacques Nacer was in charge of the air- and seaports that are the island's link to the outside world, and the government money that keeps both up and running. Authorities have not said why they think he was gunned down, beyond noting that it was a professional killing.
More than 15 years ago, the chamber's president used the airport as a helicopter base for drug running between Africa and Europe. His successor was convicted in a fraud scheme involving government contracts.
The slain defence lawyer, Antoine Sollacaro, was best known for representing the nationalist who killed the island's highest ranking official, prefect Claude Erignac, in 1998. Police have offered no theories on his death, beyond noting that it had the same professional hallmarks as all of Corsica's gangland murders.
These killings finally caught the attention of France's top security and justice officials, who stood before the cameras to vow that this time, things would be different. "In Corsica, those who give the orders are known. Everyone knows and no one speaks," said French Interior Minister Manuel Valls.
Of course they don't speak, counters Raphael Vallet, a police investigator in Corsica. Most people can offer only rumours, and those who might know more can't look to the state's shield in France — which, unlike Italy and the United States, has no robust witness protection program for mobster turncoats.
"If you're dealing with someone who is capable of killing you at any moment and we say 'we can't protect you,' would you talk?" said Vallet. "Corsicans are no less brave than anyone else."
The Corsican city of Ajaccio was the birthplace of Napoleon Bonaparte, who left the island as a youth after deciding that greatness couldn't be attained there. Many others have made similar bets about their future on an island with few resources beyond its natural beauty. Among them, a preferred path has been criminal empire.
French government policy was — and remains — that Corsica is an integral part of the nation. Islanders, meanwhile, call the rest of France "the continent" and proudly speak their own Italian-inflected language that the Paris government once tried unsuccessfully to wipe out.
The bombings of Dec. 7 struck at 31 villas, all of them with absentee homeowners away on "the continent."
The nationalist FLNC, which announced its resurrection in a theatrical news conference in July complete with masks and guns, claimed responsibility on Dec. 19 and denied any collusion with organized crime, saying gangsters had "prospered in the shadow of the French state for decades."
The explosions appeared to have no links to the hit on the young man, whose death is believed to be the latest professional killing to go unsolved.
Bianchi, the former mayor, was once jailed for his links to the group and has since publicly renounced violence. But he, like many Corsicans, couldn't bring himself to condemn the bombings in a place they consider their homeland.
"Even if I don't approve, I understand. I understand because in the current climate of Corsica, where there is enormous land speculation, there is a revolt," he said. "We don't want their country ... to become a place just for rich retirees in the next 10 or 15 years. We don't want it to become another Cote d'Azur.
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Jaguar to add 800 new UK jobs on soaring Chinese demand

LONDON (Reuters) - Jaguar Land Rover plans to create 800 new jobs at its Solihull factory in central England as demand for its premium cars rockets in China and elsewhere.
For the first time, demand from China outstripped that of British carmaker JLR's home market, with sales in China in 2012 rising more than 70 percent to 71,940 cars.
JLR, owned by India's Tata Motors , said on Sunday that total global sales rose 30 percent to over 350,000 vehicles.
JLR said earlier this month that its outlook for 2013 was positive after UK vehicle sales rose almost 20 percent in 2012.
Its next biggest markets are the U.S., Russia and Germany.
The expansion at the Solihull plant would support the introduction of new models in 2013, the company said.
Last week, Japanese carmaker Honda cut around 800 jobs at its plant near Swindon due to falling demand for its vehicles across mainland Europe.
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Goldman may delay UK bonuses until top tax rate falls

REUTERS/Brendan McDermid
NEW YORK (Reuters) - Goldman Sachs Group Inc is considering delaying bonus payments in the U.K. until after April 6, when the top rate of income tax in the country will drop to 45 percent, from 50 percent, a person familiar with the bank's operations said on Sunday.
The strategy relates to bonuses that were deferred from 2009, 2010 and 2011, the person said. The Financial Times reported the news earlier today.
Goldman recently brought forward payments of deferred stock to executives in the U.S. to 2012, in order to beat tax hikes implemented for top earners in 2013.
The investment bank made the payments weeks earlier than usual, disclosing about $65 million of stock awards to 10 executives including Chief Executive Lloyd Blankfein in filings with the U.S. Securities and Exchange Commission on the last day of December.
About 24 hours after the grants, the U.S. Congress agreed to raise the top tax rate for individuals with more than $400,000 in taxable income to 39.6 percent in 2013 from 35 percent last year, and to raise capital gains taxes.
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Soccer-La Liga top scorers

Jan 11 (Infostrada Sports) - Top scorers of the La Liga on Friday
27 Lionel Messi (Barcelona)
17 Radamel Falcao (Atletico Madrid)
16 Cristiano Ronaldo (Real Madrid)
11 Aduriz (Athletic Bilbao)
10 Ruben Castro (Real Betis)
9 Piti (Rayo Vallecano)
Roberto Soldado (Valencia)
8 Iago Aspas (Celta Vigo)
Helder Postiga (Real Zaragoza)
Alvaro Negredo (Sevilla)
7 Tomer Hemed (Real Mallorca)
Gonzalo Higuain (Real Madrid)
Carlos Vela (Real Sociedad)
Oscar (Real Valladolid)
6 Riki (Deportivo Coruna)
Obafemi Martins (Levante)
Leonardo Carrilho Baptistao (Rayo Vallecano)
Jorge Molina (Real Betis)
Manucho (Real Valladolid)
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Soccer-La Liga summaries

Jan 11 (Infostrada Sports) - Summaries from the La Liga matches on Friday
Athletic Bilbao 1 Mikel San Jose 77
Rayo Vallecano 2 Alhassane Bangoura 48, Piti 65pen
Red Card: Alejandro Galvez 89
Halftime: 0-0; Attendance: 35,000
- - -
Next Fixtures (GMT):
Saturday, January 12
Real Valladolid v Real Mallorca (1500)
Espanyol v Celta Vigo (1700)
Osasuna v Real Madrid (1900)
Valencia v Sevilla (2100)
Sunday, January 13
Real Betis v Levante (1100)
Real Sociedad v Deportivo Coruna (1600)
Atletico Madrid v Real Zaragoza (1800)
Malaga v Barcelona (2000)
Monday, January 14
Getafe v Granada CF (1900)
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Soccer-La Liga results and standings

Jan 11 (Infostrada Sports) - Results and standings from the La Liga matches on Friday
Friday, January 11
Athletic Bilbao 1 Rayo Vallecano 2
Standings P W D L F A Pts
1 Barcelona 18 17 1 0 61 19 52
2 Atletico Madrid 18 13 2 3 38 18 41
3 Real Madrid 18 11 3 4 45 20 36
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4 Malaga 18 9 4 5 28 13 31
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5 Real Betis 18 10 1 7 28 29 31
6 Rayo Vallecano 19 10 1 8 27 34 31
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7 Levante 18 9 3 6 24 25 30
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8 Valencia 18 8 3 7 25 27 27
9 Real Sociedad 18 7 4 7 27 24 25
10 Getafe 18 7 3 8 22 28 24
11 Real Valladolid 18 6 4 8 24 24 22
12 Sevilla 18 6 4 8 23 26 22
13 Real Zaragoza 18 7 1 10 21 26 22
14 Athletic Bilbao 19 6 3 10 23 39 21
15 Celta Vigo 18 5 3 10 19 23 18
16 Real Mallorca 18 4 5 9 17 30 17
17 Granada CF 18 4 4 10 14 27 16
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18 Espanyol 18 3 6 9 19 30 15
19 Deportivo Coruna 18 3 6 9 22 39 15
20 Osasuna 18 3 5 10 14 20 14
1-3: Champions League / EC I
4: Champions League preliminary round
5-6: Europa League
7: Europa League depending on domestic cup
18-20: Relegation
Next Fixtures (GMT):
Saturday, January 12
Real Valladolid v Real Mallorca (1500)
Espanyol v Celta Vigo (1700)
Osasuna v Real Madrid (1900)
Valencia v Sevilla (2100)
Sunday, January 13
Real Betis v Levante (1100)
Real Sociedad v Deportivo Coruna (1600)
Atletico Madrid v Real Zaragoza (1800)
Malaga v Barcelona (2000)
Monday, January 14
Getafe v Granada CF (1900)
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Kremlin: Adoptions deal with US valid until 2014

MOSCOW (AP) — The Kremlin said Thursday that an adoption deal with the U.S. will remain valid until 2014 despite a new Russian law banning the practice, but no new adoptions will be permitted and only those already cleared by Russian courts before the ban will be allowed to complete.
Last month, President Vladimir Putin signed a law banning Americans from adopting Russian children, part of a harsh response to a U.S. law targeting Russians deemed to be violating human rights.
Putin's spokesman Dmitry Peskov said on independent Dozhd (Rain) TV that the adoptions agreement will remain in force until Jan. 1, 2014 due to its provision that it should be valid for a year after one of the parties terminates it, which Russia did on Jan. 1. But he added that all new adoptions and also those which hadn't been completed before the new law took effect will be banned.
"In cases when certain judicial procedures haven't been completed, a complete ban on adoptions by U.S. parents will be enforced," Peskov said. "The agreement isn't a mechanism that obliges Russia to provide its children for adoptions. It regulates the regime for our children there, the monitoring mechanism."
Peskov said that those Russian children whose adoption by U.S. families had been cleared by Russian courts will be allowed to leave.
More than 50 Russian children were preparing to join their new families in the U.S. when the ban on adoptions was passed, but it wasn't immediately clear how many of them already got a court order allowing them to leave Russia by the time the ban was introduced.
"With regard to those who had failed to leave even though all formalities had been completed, and if there are some local abuses, we will naturally consider those cases," Peskov said.
Russian and U.S. diplomats have been in intense talks over the issue.
"We are very hopeful that we will be able to complete the cases of adoption that had been begun before the law was passed. So that's something that we will be working on with the Russian government," U.S. State Department spokeswoman Victoria Nuland said Thursday.
She said that in response to the State Department's request for information from American families who were trying to adopt, it had received e-mails from some 950 people and was evaluating where each party stood in the process.
Nuland added that U.S. officials would prefer not to get into specifics because "we want to see as many children be able to have the future that we'd like for them as possible, and we don't want to be putting people in different categories." She also said there are privacy concerns with regard to both the Americans and the children.
Although some top Russian officials including the foreign minister openly opposed the bill, Putin signed it into law in less than 24 hours after receiving it from the parliament, which overwhelmingly passed it.
Peskov's statement ended the controversy over the length of the agreement's validity. Russian rights ombudsman Pavel Astakhov had earlier claimed that the agreement became void on Jan. 1.
The ban on U.S. adoptions has sparked outrage in Russia, where some Kremlin critics compared Putin to King Herod. A protest against the law, expected to draw tens of thousands, is planned in Moscow on Sunday.
In one case that received wide publicity in Russia, some media reported that 14-year-old Maxim Kargopoltsev, who has long hoped that he would be adopted by a U.S. couple, has written a letter to Putin asking him for permission to join his new parents.
In an apparent media counteroffensive, Russian state television and RIA Novosti on Thursday interviewed the boy, who said he hadn't written such a letter and would like to stay in Russia. The state TV also interviewed a parliament member claiming he wants to take care of the boy, whom he took shopping for a new phone and notebook.
State television also showed photographs of Maxim with the American couple, Dianna and Mil Wallen, of Woodstock, Virginia, who have been trying to adopt him for more than a year.
Reached by telephone, Mil Wallen said he had talked to Maxim five times that day and, although the boy was thrilled by the attention, he was still hoping to be adopted.
Peskov insisted that the boy hadn't sent a letter to Putin, but promised to have a look at why the U.S. couple hadn't been allowed to adopt the boy.
According to U.N. estimates, there are about 740,000 children not in parental custody in Russia, while only 18,000 Russians are now waiting to adopt a child. Russian officials claim that they want to encourage more Russians to adopt Russian orphans.
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Just Explain It: Why taxes for most are rising while others don’t pay any federal income tax

The fiscal cliff has been averted, but at a cost. Most Americans will pay higher taxes this year.
According to the Tax Policy Center, 77% of American households will face higher federal taxes in 2013.
Here’s how it breaks down. If you’re an individual making over $400,000 a year, or a family pulling in more than $450,000 -- your taxes will increase by almost 5%.
Tax rates on capital gains and dividends for wealthier households will go from 15% to 20% under the agreement.
Every worker will see an increase in taxes. That’s because Congress let the payroll tax cut expire on December 31st. So for every $100 you earn in 2013, up to $113,700, you’ll take home $2 less than you did last year.
The debate over taxes was a major part of last year’s presidential election. President Obama did what he said and raised taxes on the wealthy. The question of who should bear more of the tax burden was a hotly contested topic. Is our tax system fair? And are the wealthy asked to do more while others contribute nothing?
It has often been quoted that almost half of Americans don’t pay federal income taxes. In fact, former Republican Presidential nominee Mit Romney created controversy last year when he described those that don't pay federal income taxes as "victims... who are dependent upon government."
The truth is most Americans pay taxes in some form or another, but not everyone pays the federal income tax. Bob Williams, a Senior Fellow at the Tax Policy Center, says “the income tax was set up in a way that allows people not to pay it by doing particular things.” Williams authored a report that found 46% of Americans in 2011 (47% in 2010) didn’t pay federal income tax because they took credits and deductions for things like, going to school, retirement savings plans, childcare and mortgages.
Here’s a look at how a family might end up not paying any federal income taxes.
If a couple earning $51,000 with childcare expenses of three thousand dollars a year for their two kids under 13. At that income level, the family would have a basic tax liability of almost $2,600. But after standard deductions, credits for childcare, this family's net tax bill would be -$12. The family wouldn't have to pay federal income tax at all in 2012.
In certain cases wealthy Americans who earn over $1 million don’t have to pay federal income taxes either. For example, if your business losses offset positive income or, if you’re given credit for foreign taxes to avoid double taxation.
Billionaire investor Warren Buffett believes the rich don’t pay enough in taxes. Buffett said his 2010 tax bill was $6.9 million. That was about 17.4% of his income. Even though that’s a lot of money, he was taxed at a much lower rate than 20 other people in his office. An average of 36% of their income went to taxes.
If all of this seems complicated to you, you’re not alone. Income taxes have been a point of contention in this country since Abe Lincoln and Congress introduced them 150 years ago. About the only thing Americans agree on is that the tax code has to be simplified.
Did you learn something? Do you have a topic you’d like explained? Give us your feedback in the comments below or on Twitter using #justexplainit.
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Holmes Can Face Trial for Aurora Shooting

In a ruling that comes as little surprise, the judge overseeing the Aurora, Colo., theater massacre has ordered that there is enough evidence against James Holmes to proceed to a trial.
In an order posted late Thursday, Judge William Sylvester wrote that "the People have carried their burden of proof and have established that there is probable cause to believe that Defendant committed the crimes charged."
The ruling came after a three-day preliminary hearing this week that revealed new details about how Holmes allegedly planned for and carried out the movie theater shooting, including how investigators say he amassed an arsenal of guns and ammunition, how he booby-trapped his apartment to explode, and his bizarre behavior after his arrest.
PHOTOS: Colorado 'Dark Knight Rises' Theater Shooting
Holmes is charged with 166 counts, including murder, attempted murder and other charges related to the July 20 shooting that left 12 people dead and 58 wounded by gunfire. An additional 12 people suffered non-gunshot injuries.
One of the next legal steps is an arraignment, at which Holmes will enter a plea. The arraignment was originally expected to take place Friday morning.
Judge Sylvester indicated through a court spokesman that he would allow television and still cameras into the courtroom, providing the outside world the first images of Holmes since a July 23 hearing. Plans for cameras in court, however, were put on hold Thursday afternoon.
"The defense has notified the district attorney that it is not prepared to proceed to arraignment in this case by Friday," wrote public defenders Daniel King, Tamara Brady and Kristen Nelson Thursday afternoon in a document objecting to cameras in court.
A hearing in the case will still take place Friday morning. In his order, Judge Sylvester said it should technically be considered an arraignment, but noted the defense has requested a continuance. Legal experts expect the judge will grant the continuance, delaying the arraignment and keeping cameras out of court for now.
Sylvester also ordered that Holmes be held without bail.
Holmes' attorneys have said in court that the former University of Colorado neuroscience student is mentally ill. The district attorney overseeing the case has not yet announced whether Holmes, now 25, can face the death penalty.
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U.S. charges three Swiss bankers in offshore account case

(Reuters) - Three Swiss bankers accused of conspiring with American clients to hide more than $420 million from the tax-collecting U.S. Internal Revenue Service were indicted, the U.S. Attorney's Office in Manhattan said on Wednesday.
The indictment named Stephan Fellmann, Otto Huppi and Christof Reist, all former client advisers with an unnamed Swiss bank. None of the bankers have been arrested, authorities said.
Their attorneys were not immediately known.
The indictment said the unnamed bank did not have offices in the United States.
Banking secrecy is enshrined in Swiss law and tradition, but it has recently come under pressure as the United States and other nations have moved aggressively to tighten tax law enforcement and demanded more openness and cooperation.
In April, two Swiss financial advisers were indicted on U.S. charges of conspiring to help Americans hide $267 million in secret bank accounts.
In January, prosecutors charged three Swiss bankers with conspiring with wealthy taxpayers to hide more than $1.2 billion in assets from tax authorities.
UBS AG, the largest Swiss bank, in 2009 paid a $780 million fine as part of a settlement with U.S. authorities who charged the bank helped thousands of wealthy Americans hide billions of dollars in assets in secret Swiss accounts.
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