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Sunday, 21 March 2010 - Iran president suggests referendum on subsidy cuts |
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    Edition: U.S. Article Save Email Print Reprints Most Popular Most Shared Wal-Mart to slash grocery prices 19 Mar 2010 US states sue EPA to stop greenhouse gas rules 19 Mar 2010 House Democrats see momentum on health bill | Video 9:49am EDT Massive sandstorm turns Beijing's streets yellow | Video 8:23am EDT New password-stealing virus targets Facebook 17 Mar 2010 New password-stealing virus targets Facebook 17 Mar 2010 Wal-Mart to slash grocery prices 19 Mar 2010 US states sue EPA to stop greenhouse gas rules 19 Mar 2010 Insurer targeted HIV patients to drop coverage 17 Mar 2010 FDA issues warning for high doses of Zocor 19 Mar 2010 Iran president suggests referendum on subsidy cuts TEHRAN Sat Mar 20, 2010 2:19pm EDT Iranian President Mahmoud Ahmadinejad speaks during a news conference in Kabul March 10, 2010. Credit: Reuters/ Omar Sobhani TEHRAN (Reuters) - Iran's President Mahmoud Ahmadinejad has suggested holding a referendum to approve subsidy cuts that the Islamic Republic's parliament has repeatedly blocked, a news agency said Saturday. World Parliament this month passed a state budget for the next Iranian year starting March 21 that did not contain radical cuts in subsidies sought by Ahmadinejad. Delegates had said the cuts could stoke inflation, while analysts say they could also provoke unrest in a country already plagued by tension after street protests by opponents of Ahmadinejad over the past year. Any such referendum could risk more unrest. "The solution is to ask people if they want this law to be implemented or not and to hold a referendum on this issue," Ahmadinejad said in an interview on state television Friday evening and carried on state news agency IRNA. "We should not require the government to do something that hurts people. The government would not do anything that hurts the people ... Scaring people over implementing a subsidy bill that is a necessary reform is treacherous." The government proposed saving $40 billion by reforming the Islamic Republic's costly subsidy system but parliament only approved half of that amount. The Guardian Council signed off the budget last week. Parliament first stymied the government's subsidy reform plans last year by approving the general outlines but linking the plan to the state budget to enforce parliamentary oversight of how the money saved is spent. Three prominent members of parliament issued a statement attacking Ahmadinejad over the referendum idea, calling him to a public debate on the issue on television, Fars news agency said. "The president doesn't have the right to disobey a law which has been approved by parliament," said the statement by Gholamreza Mesbahi-Moghaddam, Ahmadi Tavakoli and Elias Naderan, seen as experts in economic affairs. Analysts say Ahmadinejad hopes the subsidy cut will make Iran less vulnerable to any U.N. sanctions on its gasoline imports and it would allow the president to channel some of the cash saved directly to constituents who support him. Iran is the world's fifth-largest crude exporter. But while oil prices have surged, Iran's economy has slowed as a result of the global economic downturn, political isolation and sanctions over its nuclear energy program. (Reporting by Andrew Hammond and Ramin Mostafavi; Editing by Jon Hemming) World More from Reuters Cloud lifts for healthcare investors The healthcare bill will mean business as usual for investors, but what will happen in the long-term is unclear.  Full Article | Video  Democrats see momentum in health bill Q&A: What does healthcare reform mean for Obama? 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So why is Gloria Steinem still unsettled?  Full Article | Video  The week in review for women Slideshow: The gender gap LIFESTYLE © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index   Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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