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IHT Quick Read: Dec. 8

NEWS Germany's economy is slowing and will probably stagnate in 2013, the country's central bank said Friday, sharply cutting its forecast for growth. Considering “the difficult economic situation in some euro area countries and widespread uncertainty, economic growth will be lower than previously assumed,” said the Bundesbank, which now expects G.D.P. to expand by just 0.4 percent next year. David Jolly reports.

The secretary of Italy's largest political party said Friday that the technocratic government of Prime Minister Mario Monti had run its course, paving the way toward early elections. Angelino Alfano told the lower house of Parliament that his People of Liberty party would not bring down the government, but he made clear that it would no longer support Mr. Monti, who has headed an emergency government for more than a year. Elisabetta Povoledo reports from Milan.

The death toll in the southern Philippines from Typhoon Bopha rose past 450 on Friday with more than 500 still missing, amid assertions that climate change, deforestation, poor planning and other factors had worsened the catastrophe. Floyd Whaley reports from Manila.

European data protection officials are drafting plans to censure Google over its online privacy policy if the company does not meet the demands of regulators to revise it. In a meeting this week of the E.U.'s 27 national data protection officials, the group mapped a preliminary strategy, including the possibility of testing Google's compliance with national privacy laws in countries like I reland, Belgium and Finland, where the company operates data centers. Kevin J. O'Brien reports.

WINE Some wine glasses look good on the shelf, others double as vases, and a small but growing number excel at the job for which they were intended: maximizing the enjoyment of wine. For this trend we can largely thank an Austrian glass maker named Riedel, which pioneered the concept of designing glasses for different kinds of wine. Eric Pfanner reports from Kufstein, Austria, where he visited the company.

ARTS The sensational show “Bernini: Sculpting in Clay” at the Metropolitan Museum of Art was inspired by three scholars who pooled their expertise to study 52 models that served as preliminary steps to the execution of some of the 17th-cent ury sculptor's most famous works. The exhibition and the book that tells the scholars' story break entirely new ground. Souren Melikian reports from New York.

SPORTS With the prominent performances of Germany's three Bundesliga participants in this season's UEFA Champions League, speculation about where this conglomerate of contemporary continental challengers came from has been rife. Admiration from the four corners of the sport has ascended upon the league like never before. Stefan Bienkowski reports.



How to Save Egypt\'s Dying Chance at Democracy

NEW YORK - The return of protests, tanks and death to the streets of Cairo this week is harrowing. So is the power of the rampant conspiracy theories that cause both Muslim Brotherhood members and their secular opponents to sincerely believe that they are the defenders of Egypt's revolution.

Criticisms of President Mohamed Morsi's power grab and rushed constitutional process are legitimate. So are complaints that the country's secular opposition is poorly organized, lacks majority support and refuses to compromise.

Barring a surprising change in direction, Egypt's experiment with democracy seems to be headed toward failure. The country's flawed constitution will likely be ratified in a referendum on Dec. 15. A frustrated and distrustful opposition will boycott subsequent Parliamentary elections. Mr. Morsi will lead a “soft authoritarian” government similar to that of former President Hosni Mubarak. Small opposition parties will exist, but the Muslim Brother hood's dominance of the state, politics and society will never be in doubt.

U.S. officials - ever eager for stability in the Middle East - will turn a blind eye and establish a “working relationship” with Mr. Morsi.

“I think the impulse of most American administrations is to show up in an Arab country and say, ‘Take me to your leader,' ” Nathan J. Brown, a George Washington University professor and leading expert on Egypt, told me in a bleak interview this week. “I don't think we have many alternatives. The United States is not in the position to back a military coup or the opposition.”

Mr. Brown is correct. Yes, the United States has some economic leverage in Cairo, but in general America remains radioactive in post-Mubarak Egypt. After 40 years of the U.S. backing Egyptian strongmen who made peace with Israel, Washington is hugely mistrusted.

A September 2012 Gallup Poll found that 82 percent of Egyptians opposed the country's government accepting any economic aid from the United States. By comparison, 42 percent of Egyptians surveyed - roughly half that number - opposed the country's peace treaty with Israel.

For those who think more “American leadership” is the answer: a U.S.-backed military coup - which it is doubtful the U.S. could engineer - would radicalize Islamists across the region and be an enormous gift to al Qaeda. Similarly, if Washington openly backs the country's secular opposition, those opponents will be viewed as American stooges and lose popular support.

“A much more effective strategy for the United States is to call for a dialogue between Morsi's government and the opposition behind closed doors,” said Dalia Mogahed, the American scholar who conducted the Gallup survey. “The U.S. coming out publicly on the side of the opposition will be used against them.”

The only small cause for hope is that Egypt's struggles are not unprecedented. Other countries have undergone agonizing and turbulent transitions as well. Thomas Carothers, an expert on transitions to democracy at the Carnegie Endowment for International Peace, said that what is occurring today in Egypt is typical when a long-disenfranchised group gains power. Distrustful and insular after years of struggles, it is often reluctant to share power and still views itself as deeply vulnerable.

Mr. Carothers said Egypt's struggle mirrors the difficult transition still under way in Bolivia. Seven years after Evo Morales was elected that country's first president of indigenous descent, a tense “fundamental rebalancing of political power” is still playing out in Bolivia. The country's traditional elite and the indigenous movement still struggle to trust each other and sh are power. Bigoted arguments that democracy does not work in the Arab world do not apply in Egypt.

“There is nothing particularly Arab about what is happening,” Mr. Carothers said. “It's not an Islamist issue per se.”

There is another international comparison that should give the Brotherhood pause, according to Mr. Carothers. South Africa's African National Congress gained a monopoly on power after the country's first post-apartheid elections in 1994. With no viable opposition, the ANC grew increasingly corrupt as opportunistic figures flocked to the only patronage show in town.

“The party just became a self-sustaining machine,” Mr. Carothers said. “People start joining your party out of sheer opportunism.”

That may not matter to the Brotherhood. Its fear of being forced from power it has finally attained may lead it to become the kind of governing party its members once loathed.

The stark picture painted by Shady Humid, the dire ctor of research at the Brookings Doha Center, in this excellent piece in Foreign Policy this week, may prove to be true. There may be no common vision in Egypt, as Humid argues; there may be no consensus on what the Egyptian nation should be.

If there is a common ground, the surest way to reach it is for there to be more democracy in Egypt, not less. Yes, the flawed draft constitution is likely to be ratified on Dec. 15. But the opposition should not boycott the vote or subsequent legislative elections.

In a best-case scenario, the “no” vote could reach as high as 30 percent, according to Mr. Brown, the George Washington University professor. The opposition could then run in subsequent legislative elections. It would not win a majority, but perhaps it would win enough seats to be a viable opposition to the Brotherhood. Two groups that loathe each other would be forced t o sit in Parliament together.

Time and a desire to win elections might make them compromise and save Egypt's fading chances at democracy.

David Rohde is a columnist for Reuters, former reporter for The New York Times and two-time winner of the Pulitzer Prize. His forthcoming book, “Beyond War: Reimagining American Influence in a New Middle East” will be published in March 2013.



Taxes Are the New Sex as Campaigns Target Multinationals

LONDON - An attempt by Starbucks to buy its way out of a consumer boycott with a voluntary payoff to the British taxman may have backfired.

The Seattle-based global coffee chain has offered to pay the British government £20 million, or $32 million, over the next two years after it emerged that the company had paid only £8.6 million since 1998 on sales of £3 billion in Britain.

But politicians, newspapers and coffee-drinkers called the offer a public relations stunt that made a joke of the tax system.

Richard Murphy, a British accountant, posted:

And the satirical News Thump joked:

A tax pressure group said it planned to go ahead with sit-ins at 40 of the company's stores this weekend.

With Britain and other European states in the grip of an austerity regime stemming from the debt crisis, taxes are replacing sex as the daily staple of the popular press amid a backlash against corporations and indiv iduals accused of not paying their fair share.

Rendezvous reported on Wednesday on international moves to squeeze the owners of bank accounts in Switzerland who are accused of using the country's banking secrecy laws to squirrel away fortunes in unpaid taxes.

Across Europe, governments have launched a crackdown on Internet giants, including Google and Amazon, by moving to close loopholes that allow them to pay minimal tax on their operations in the Continent.

No one is accusing the multinationals of breaking the law. The accusation is that they are taking advantage of clever tax avoidance methods to minimize their contributions to European treasuries.

The Associated Press wrote this week: “Thanks to the way the European Union is run, companies operating in Europe can base themselves in any of the 27 member countries, allowing them to take advantage of a particular country's low tax rates.”

Business lobbyists have argued that a populist campaign against alleged multinational tax avoiders is anti-business. Others have argued that the way forward is for politicians to reform tax law at the European level.

Kris Engskov, who heads Starbuck's British unit, acknowledged on Thursday that “tax has become an important subject of debate over the past several weeks and I think it's important to share that the emotion of the issue has taken us a bit by surprise.”

He said the company would pay around £10 million annually in tax over the next two years, whether its British operation, which includes 760 retail stores, was profitable or not.

Executives of Starbucks, Google and Amazon last month faced a fierce grilling on taxes by British legislators. After the session of Parliament's Public Accounts Committee, one observer wrote: “By the end, Starbucks management had been plucked, roasted, ground and sprayed with hot steam.”

The committee this week accused the companies of “immorally” avoiding paying their fair share of taxes.

Margaret Hodge, the opposition Labour Party politician who chairs the committee, said, “Global companies with huge operations in the U.K. generating significant amounts of income are getting away with paying little or no corporation tax here.”

< p>As the tax issue became the favorite talking point among customers and baristas, Starbucks opted to offer its voluntary payment under threat of a consumer boycott.

Political reaction was cautious at best. Ms. Hodge said it was a “first step in the right direction” and she hoped Google and Amazon would follow suit.

Stephen Williams, Treasury spokesman for the Liberal Democrats, part of the coalition running the government, was quoted saying, “It is extraordinary. People have been joking that some of these multinationals seem to think that paying tax is voluntary. Well, Starbucks have just confirmed the joke really.”

Prem Sikka, a professor of accountancy at Essex University, was among those who rejected the concept of a “private sweetheart deal” with the taxman, telling the BBC: “We need to get Starbucks to p ay proper tax.”

The company's £20 million offer put it on a potential collision course with investors, according to the Financial Times, since the payment would come from its parent group.

“Its plan is yet to be accepted by the U.K. tax authorities, which were not consulted in advance,” the business daily reported, “and it sends a troubling signal to other companies under attack over their U.K. taxes, including Amazon and Google.”



Art Basel Miami Beach: The Art Party in Full Swing

Our colleague Patricia Cohen has a warm-weather assignment this week reporting from Miami Beach, where Art Basel Miami Beach stretches out through Sunday.

She reports on our sister blog ArtsBeat about her lesson in how to look at art as if she were a newly minted multimillionaire, from an art adviser, Liz Klein, and a curator, Lily Siegel of the High Museum of Art in Atlanta. After perusing work by the pedigreed, pricey Gerhard Richter and Anish Kapoor, here's what she learned about considering an up-and-coming artist:

With time running out, we made one final stop, at the Friedrich Petzel gallery to look at Dana Schutz's painting “Getting Dressed All at Once.” Ms. Schutz, who is in her mid-30s, currently has a show at the Denver Art Museum. Figurative painting has been out of fashion, Ms. Klein said, bu t Ms. Schutz offers something fresh. The idea of getting dressed all at once communicates a sense of the frenetic pace of contemporary life. “You get a sense of movement, with the figure butting up against the edges of the canvas,” Ms. Klein said. The artist also employs weird sculptural forms that make the limbs look as if they have no musculature, she said.

My advisers noted that her work referenced Picasso's portraits of his mistress Marie-Thérèse from the 1930s and de Kooning's undone women. “There is a very contemporary sensibility and use of color that successfully bridges the past and present,” Ms. Siegel said. It was priced at $125,000.

Read more of Ms. Cohen's report here.

And enjoy the party photos in this slide show, assembled by our colleagues in the Styles department.