Conrad Black gets new trial

The US Supreme Court just sent Conrad Black’s case back to a lower court to be reheard to determine if part of his conviction should be overturned. The court found that the US government over-reached in its application of the Honest Services addendum to statute. It was argued before the court in December and March that prosecutors have applied the law too broadly and its application could lead to large sentences for minor mistakes.

Here is the Supreme Court’s decision:

When heard in the lower court, part of Black’s sentence could be overturned, however, he was also convicted on obstruction of justice.

Also gaining from today’s decision is ex-Enron chief Jeff Skilling who was partially convicted under the same application of the so-called honest services law.

UK Conservatives unveil budget

The problem:
– $1.3 trillion debt.
– Budget deficit is 11% of GDP

The planned solution:
– Increase VAT from 17.5% to 20% by January
– Axe treasury department looking into adopting the Euro as the common currency
– Public sector pay freeze
– Child tax benefit freeze for 3 years
– SMB tax rate from 21 to 20%
– plan to reduce corporate tax rate to 24%
– bank levy to be introduced by January
– 28% on capital gains

The UK is facing hard times. Its budget deficit to GDP is second only to Ireland in Europe. Its domestic demand was -1% during 2009 while that of Canada was +2.6%. The Harper government also plans to cut the corporate tax rate to 15% by 2012 while Michael Ignatieff has said that he would freeze corporate taxes at 18%. In October 2009, the IMF had predicted the UK’s net debt to increase to over 90% of GDP while Canada’s net debt position stands under 30% of GDP (and debt-to-GDP ratio about 35%). Canada’s absolute debt stands at $529 Billion and this country’s deficit stands at $56 Billion.

Here is the UK budget released today:

What’s on the agenda for G8/G20?

China
Prior to the G8, Prime Minister Harper will hold bilateral with President Hu from China on June 24th who is in Canada for a state visit. The visit will mark 40 years of diplomatic relations between Canada and China. Bilateral trade now stands at $50 Billion between the two countries. It is expected that PM Harper will raise the importance of China’s role in helping to bring stability and security to the Korean peninsula as one of the few nations that talks to North Korea and as a permanent member nation of the UN security council.

India
On June 27th, PM Harper will host bilateral with Indian PM Singh in Toronto. PM Harper will look to build upon agreements signed during last meeting in India which addressed economic partnership and energy cooperation.

Focus of the G8 for the government of Canada:
– focus on achieving 2015 United Nations Millennium Development Goals (halving extreme poverty levels, cutting the spread of HIV/AIDS)
– nuclear non-proliferation and continuing work achieved at non-proliferation treaty review conference in NYC and Nuclear Security Summit in DC. Focus specifically on keeping nuclear arms out of the hands of terrorists.
– Recognition that Iran and North Korea continue to pose threats to global security.
– International cooperation on fighting Latin American, Caribbean, West African and Asian transnational criminal networks.
– Muskoka Initiative on maternal, newborn and child health.
– Progress in Afghanistan, in Pakistan and in the Middle East on combatting terrorism and its link to organized crime and drug trafficking
– G8 leaders will join seven African leaders as well as the leaders of Colombia, Haiti and Jamaica in order to discuss the interlinkages of crime and terror networks.

G20 priorities for Canada:
– G20 should restore public finance while maintaining economic growth in order to achieve global economic recovery.
– Canada implores G20 nations to tackle fiscal consolidation, reduce debt, reduce deficits and for countries to return to balanced budgets
– address root causes of global economic crisis
– fully implement stimulus plans
– prepare fiscal consolidation measures
– resist protectionism
– promote open markets
– continue reforms to financial and regulatory systems
– continue governance reforms to international financial institutions and multilateral development banks
– call upon the international financial institutions and multilateral development banks