Obama praises 'extraordinary' Clinton in joint interview

WASHINGTON: US President Barack Obama Friday heaped praise on outgoing Secretary of State Hillary Clinton in a rare joint interview set to renew speculation that she will run for president in 2016.

The joint sit-down interview with CBS television, which was filmed at the White House, was apparently Obama's idea.

"I just wanted to have a chance to publicly say thank you, because I think Hillary will go down as one of the finest secretaries of state we've had," Obama said in an excerpt shown on CBS ahead of Sunday's "60 Minutes" program.

"It has been a great collaboration over the last four years. I'm going to miss her," he added, saying he wished she was staying on.

Many people were surprised when Obama named Clinton to be his secretary of state, after the two fought a long and bitter battle for the Democratic Party's presidential nomination in the 2008 elections.

Clinton was just beaten by Obama in the historic race, which went down to the wire, and many observers believe she could well try again to become the nation's first woman president in the 2016 elections.

A public endorsement by the sitting president would give added weight to her candidacy -- although she is already riding high in the popularity stakes with an approval rating of around 65 per cent.

"I want the country to appreciate just what an extraordinary role she's played during the course of my administration and a lot of the successes we've had internationally because of her hard work," Obama added.

Clinton, who is tapped to be replaced in the coming days by Senator John Kerry, acknowledged that it would have seemed "improbable" that she would have joined forces with Obama a few years ago.

But she said she had used her 2008 defeat as a useful lesson about the workings of democracy in her travels.

"I think it helps them understand. I say, look, in politics and in democracy, sometimes you win elections; sometimes you lose elections," she said.

"I worked very hard but I lost and then President Obama asked me to be secretary of state and I said yes and why did he ask me and why did I say yes? Because we both love our country."

Obama rarely sits down for joint interviews with anyone other than his wife, Michelle. An exception was one he gave with former French president Nicolas Sarkozy in November 2011 on the sidelines of a G20 summit in Cannes.

- AFP/jc

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Bihar 'imports' babus as IAS shortfall hits work

PATNA: Bihar's IAS cadre strength is 326, but only 198 IAS officials are there in the state of over 100 million people as 95 posts are vacant while 30 officials are on central deputation and three on interstate deputation. To overcome the crisis, the state government through ads a few years ago invited officials of other cadres to work in Bihar. Quite a few came, and some of these "outsiders" ended up causing huge embarrassment to the "sushasan" that has of late earned global appreciation for Bihar.

The story of "imported" babus assumes significance in view of the recent episode involving J&K cadre IPS officer, Alok Kumar, who had to be unceremoniously removed from the post of Saran range DIG after he was accused of demanding Rs 10 crore from a liquor firm's representative. "The state government should do something about these outsiders who are bringing a bad name to the 'sushasan'," wrote a netizen on a social networking site.

Almost all these "imported" officials happen to hail from Bihar. They are on deputation for a tenure of five or three years. Besides IAS and IPS officials, all-India services officials like D K Srivastava, J K P Singh, P K Rai, Sanjeevan Sinha and Awadhesh Kumar are also working with the Bihar government. Indian Railway Service's Srivastava, Singh and Rai are posted as director (tourism), Bihar State Text-book Corporation MD and Bihar State Power Holding Company Limited CMD respectively while Indian Post & Telecommunication Accounts and Finance Service's Sinha and Kumar are Bihar State Infrastructural Development Agency MD and Bihar State Tourism Development Corporation MD respectively.

Bihar State Warehousing Corporation and Beltron have also one "imported" official each. Five Indian Forest Service officials - M K Sharma, Satyendra, Ashutosh Kumar, P K Gupta and Arvinder Singh - are also serving on key positions in the state.

Among five IAS officials on interstate deputation to Bihar, Pankaj K Pal, Manish K Verma and Abhijit Sinha are currently DMs of Bhojpur, Purnia and East Champaran. Odisha cadre's Sanjay Kumar Singh has been made special secretary to CM after two stints as DM - in Gaya and Patna.

A 2002-batch IAS official, Pal was Gopalganj DM when a woman college principal allegedly slapped him. He was shunted out of Gopalganj and posted in the agriculture department after the killing of a jail doctor inside the Gopalganj jail by the prisoners in 2011. Eighteen months on, he is back in the saddle as the Bhojpur DM.

Yet another MT-cadre IAS official J K Sinha, who once got the coveted post of Patna DM, had to be relieved from his post in the CM secretariat and repatriated to his parent cadre almost overnight after the government received some adverse reports about his conduct. Officially, however, his hasty repatriation was never explained.

Explaining the state government's position, a senior official said states did not have a decisive say in deciding interstate deputations. The Centre's DoPT (department of personnel and training) clears such applications, he said and added not all such officers were bad and that most of them had delivered during their field postings.

Also, the state government will not come to the rescue of any official doing any wrong. "The then Saran DIG Alok Kumar's is a case in point in which the law is taking its own course," the official said and pointed out Bihar was the only state to come up with a law in 2010 to confiscate properties of corrupt babus.

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'Hot' Guns Fueling Crime, US Study Says

Christmas is the one day of the year that Wal-Mart is closed, but for a group of four New Mexico burglars, it was the perfect time to stop in for some firearms.

Video surveillance cameras caught the masked burglars red-handed, stealing rifle after rifle. Police arrested the four men, and were able to recover the guns. But all too often, stolen weapons end up in the hands of criminals.

The New Mexico caper is part of a flood of gun thefts nationwide. And it's not only commercial gun dealers vulnerable to theft.

Guns are a top target for home burglars looking for something they can easily sell on the street.

An estimated 230,000 guns per year are stolen in home burglaries and property crimes, according to a study by the Department of Justice.

"Any burglar that goes in a house and finds guns, their eyes are going to light up," says former ATF Assistant Director Mike Bouchard. "That's the first thing they're going to take."

The statistics for commercial thefts show that nearly 25,000 guns per year are lost or stolen from gun dealers.

According to the Bureau of Alcohol Tobacco and Firearms (ATF), more than 4,000 gun stores and retailers have been targeted in the last three years, with 74,000 guns reported stolen or lost. And criminals will use any method possible to get their hands on some weapons, either for their own use, or to sell on the black market.

Minnesota Public Radio, Jeffrey Thompson/AP Photo

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Recently, thieves have taken to using a stolen vehicle to ram down the front doors of a gun store. In North Charleston, S.C., for example, burglars smashed a stolen truck right through Guns and Gold Trading Post, stealing $4,500 worth of guns before making a quick getaway.

"Gun stores are like candy stores for criminals," says Mike Bouchard.

2012 was a record year for gun sales, with more than 19.5 million background checks run for gun purchases, up almost 20% from the previous year. But while legitimate sales skyrocket, huge numbers of illegal guns are hitting the streets.

According to the Justice Department, more than 1.4 million guns were stolen or lost between 2005 and 2010.

Former ATF Assistant Director Bouchard says crooks have easy access to cheap stolen guns on the street.

"If you talk to any criminal, they can find a gun within an hour or two. Cheaper guns that were stolen can be sold for $50. On the street, a typical good handgun will run you $200 to $300," Bouchard said.

Some thieves have even targeted gun shipments, stealing the weapons before they get to market.

Last November, for example, a rogue truck driver allegedly stole a shipment of 111 guns he was supposed to deliver from the Smith and Wesson factory in Springfield, Mass.

When police caught him, they recovered 28 of the stolen guns, but some had already been used in crimes.

When police arrested the alleged stick-up robber known as the Black Jacket Bandit, they found one of the stolen guns was allegedly used by him in a convenience store robbery within weeks of the delivery heist.

In November, more than 100 powerful AK-47s were stolen from a rail yard in Atlanta. The guns were in a box car containing more than 1,000 guns being shipped from an overseas manufacturer to a major U.S. distributor, authorities say.

A few of the weapons have been recovered, but police are deeply concerned about having scores of new assault rifles falling into the wrong hands.

Given all the gun thefts, police say it is critical for gun owners to secure their weapons in gun safes or locked cases. And authorities are urging gun retailers to fortify their buildings, to try to prevent "smash and grab" type robberies.

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Penalty could keep smokers out of health overhaul

WASHINGTON (AP) — Millions of smokers could be priced out of health insurance because of tobacco penalties in President Barack Obama's health care law, according to experts who are just now teasing out the potential impact of a little-noted provision in the massive legislation.

The Affordable Care Act — "Obamacare" to its detractors — allows health insurers to charge smokers buying individual policies up to 50 percent higher premiums starting next Jan. 1.

For a 55-year-old smoker, the penalty could reach nearly $4,250 a year. A 60-year-old could wind up paying nearly $5,100 on top of premiums.

Younger smokers could be charged lower penalties under rules proposed last fall by the Obama administration. But older smokers could face a heavy hit on their household budgets at a time in life when smoking-related illnesses tend to emerge.

Workers covered on the job would be able to avoid tobacco penalties by joining smoking cessation programs, because employer plans operate under different rules. But experts say that option is not guaranteed to smokers trying to purchase coverage individually.

Nearly one of every five U.S. adults smokes. That share is higher among lower-income people, who also are more likely to work in jobs that don't come with health insurance and would therefore depend on the new federal health care law. Smoking increases the risk of developing heart disease, lung problems and cancer, contributing to nearly 450,000 deaths a year.

Insurers won't be allowed to charge more under the overhaul for people who are overweight, or have a health condition like a bad back or a heart that skips beats — but they can charge more if a person smokes.

Starting next Jan. 1, the federal health care law will make it possible for people who can't get coverage now to buy private policies, providing tax credits to keep the premiums affordable. Although the law prohibits insurance companies from turning away the sick, the penalties for smokers could have the same effect in many cases, keeping out potentially costly patients.

"We don't want to create barriers for people to get health care coverage," said California state Assemblyman Richard Pan, who is working on a law in his state that would limit insurers' ability to charge smokers more. The federal law allows states to limit or change the smoking penalty.

"We want people who are smoking to get smoking cessation treatment," added Pan, a pediatrician who represents the Sacramento area.

Obama administration officials declined to be interviewed for this article, but a former consumer protection regulator for the government is raising questions.

"If you are an insurer and there is a group of smokers you don't want in your pool, the ones you really don't want are the ones who have been smoking for 20 or 30 years," said Karen Pollitz, an expert on individual health insurance markets with the nonpartisan Kaiser Family Foundation. "You would have the flexibility to discourage them."

Several provisions in the federal health care law work together to leave older smokers with a bleak set of financial options, said Pollitz, formerly deputy director of the Office of Consumer Support in the federal Health and Human Services Department.

First, the law allows insurers to charge older adults up to three times as much as their youngest customers.

Second, the law allows insurers to levy the full 50 percent penalty on older smokers while charging less to younger ones.

And finally, government tax credits that will be available to help pay premiums cannot be used to offset the cost of penalties for smokers.

Here's how the math would work:

Take a hypothetical 60-year-old smoker making $35,000 a year. Estimated premiums for coverage in the new private health insurance markets under Obama's law would total $10,172. That person would be eligible for a tax credit that brings the cost down to $3,325.

But the smoking penalty could add $5,086 to the cost. And since federal tax credits can't be used to offset the penalty, the smoker's total cost for health insurance would be $8,411, or 24 percent of income. That's considered unaffordable under the federal law. The numbers were estimated using the online Kaiser Health Reform Subsidy Calculator.

"The effect of the smoking (penalty) allowed under the law would be that lower-income smokers could not afford health insurance," said Richard Curtis, president of the Institute for Health Policy Solutions, a nonpartisan research group that called attention to the issue with a study about the potential impact in California.

In today's world, insurers can simply turn down a smoker. Under Obama's overhaul, would they actually charge the full 50 percent? After all, workplace anti-smoking programs that use penalties usually charge far less, maybe $75 or $100 a month.

Robert Laszewski, a consultant who previously worked in the insurance industry, says there's a good reason to charge the maximum.

"If you don't charge the 50 percent, your competitor is going to do it, and you are going to get a disproportionate share of the less-healthy older smokers," said Laszewski. "They are going to have to play defense."

___

Online:

Kaiser Health Reform Subsidy Calculator — http://healthreform.kff.org/subsidycalculator.aspx

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North Korea to target U.S. with nuclear, rocket tests

SEOUL (Reuters) - North Korea said on Thursday it would carry out further rocket launches and a nuclear test that would target the United States, dramatically stepping up its threats against a country it called its "sworn enemy".

The announcement by the country's top military body came a day after the U.N. Security Council agreed to a U.S.-backed resolution to censure and sanction North Korea for a rocket launch in December that breached U.N. rules.

North Korea is not believed to have the technology to deliver a nuclear warhead capable of hitting the continental United States, although its December launch showed it had the capacity to deliver a rocket that could travel 10,000 km (6,200 miles), potentially putting San Francisco in range, according to an intelligence assessment by South Korea.

"We are not disguising the fact that the various satellites and long-range rockets that we will fire and the high-level nuclear test we will carry out are targeted at the United States," North Korea's National Defence Commission said, according to state news agency KCNA.

North Korea is believed by South Korea and other observers to be "technically ready" for a third nuclear test, and the decision to go ahead rests with leader Kim Jong-un, who pressed ahead with the December rocket launch in defiance of the U.N. sanctions.

China, the one major diplomatic ally of the isolated and impoverished North, agreed to the U.S.-backed resolution and it also supported resolutions in 2006 and 2009 after Pyongyang's two earlier nuclear tests.

Thursday's statement by North Korea represents a huge challenge to Beijing as it undergoes a leadership transition, with Xi Jinping due to take office in March.

China's Foreign Ministry called for calm and restraint and a return to six-party talks, but effectively singled out North Korea, urging the "relevant party" not to take any steps that would raise tensions.

"We hope the relevant party can remain calm and act and speak in a cautious and prudent way and not take any steps which may further worsen the situation," ministry spokesman Hong Lei told reporters at a regular press briefing.

North Korea has rejected proposals to restart the talks aimed at reining in its nuclear capacity. The United States, China, Russia, Japan and the two Koreas are the six parties involved.

"After all these years and numerous rounds of six-party talks we can see that China's influence over North Korea is actually very limited. All China can do is try to persuade them not to carry out their threats," said Cai Jian, an expert on Korea at Fudan University in Shanghai.

Analysts said the North could test as early as February as South Korea prepares to install a new, untested president or that it could choose to stage a nuclear explosion to coincide with former ruler Kim Jong-il's Feb 16 birthday.

"North Korea will have felt betrayed by China for agreeing to the latest U.N. resolution and they might be targeting (China) as well (with this statement)," said Lee Seung-yeol, senior research fellow at Ewha Institute of Unification Studies in Seoul.

U.S. URGES NO TEST

Washington urged North Korea not to proceed with a third test just as the North's statement was published on Thursday.

"Whether North Korea tests or not is up to North Korea," Glyn Davies, the top U.S. envoy for North Korean diplomacy, said in the South Korean capital of Seoul.

"We hope they don't do it. We call on them not to do it," Davies said after a meeting with South Korean officials. "This is not a moment to increase tensions on the Korean peninsula."

The North was banned from developing missile and nuclear technology under sanctions dating from its 2006 and 2009 nuclear tests.

A South Korean military official said the concern now is that Pyongyang could undertake a third nuclear test using highly enriched uranium for the first time, opening a second path to a bomb.

North Korea's 2006 nuclear test using plutonium produced a puny yield equivalent to one kiloton of TNT - compared with 13-18 kilotons for the Hiroshima bomb - and U.S. intelligence estimates put the 2009 test's yield at roughly two kilotons

North Korea is estimated to have enough fissile material for about a dozen plutonium warheads, although estimates vary, and intelligence reports suggest that it has been enriching uranium to supplement that stock and give it a second path to the bomb.

According to estimates from the Institute for Science and International Security from late 2012, North Korea could have enough weapons grade uranium for 21-32 nuclear weapons by 2016 if it used one centrifuge at its Yongbyon nuclear plant to enrich uranium to weapons grade.

North Korea has not yet mastered the technology needed to make a nuclear warhead small enough for an intercontinental missile, most observers say, and needs to develop the capacity to shield any warhead from re-entry into the earth's atmosphere.

North Korea gave no time-frame for the coming test and often employs harsh rhetoric in response to U.N. and U.S. actions that it sees as hostile.

The bellicose statement on Thursday appeared to dent any remaining hopes that Kim Jong-un, believed to be 30 years old, would pursue a different path from his father, Kim Jong-il, who oversaw the country's military and nuclear programs.

The older Kim died in December 2011.

"The UNSC (Security Council) resolution masterminded by the U.S. has brought its hostile policy towards the Democratic Peoples Republic of Korea (North Korea) to its most dangerous stage," the commission was quoted as saying.

(Additional reporting by Christine Kim in SEOUL, Ben Blanchard and Sui-Lee Wee in Beijing; Writing by David Chance; Editing by Raju Gopalakrishnan and Ron Popeski)

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Japan's inflation slips in 2012

TOKYO: Japan's inflation rate slipped 0.1 per cent in 2012, data showed Friday just days after the Bank of Japan set a new target to beat the deflation that has haunted the world's third-largest economy for years.

The figures marked the fourth straight annual price decline. The core index, which excludes volatile prices of fresh food, slipped 0.2 per cent in December alone, meeting the market's expectation.

Deflation is bad for the economy because it encourages consumers to put off spending in the belief their intended purchases will be cheaper in the future, softening demand and hurting producers and their own capital investment plans.

On Tuesday, Japan's central bank adopted a two-per cent inflation target and set out plans for indefinite monetary easing in a bid to turn the economy around, although analysts have been mixed on whether it would stoke growth.

Switching from an inflation "goal" to a more explicit "target" was driven by the "importance of flexibility in the conduct of monetary policy in Japan", the Bank of Japan said.

However, two of the nine BoJ policy board members voted against the new inflation target demanded by the country's hawkish new Prime Minister Shinzo Abe, who swept to power last month on a promise to heap pressure on the bank for more aggressive policy action as part of his plan to fix the long-suffering economy.

- AFP/fa

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Panel to probe sexual harassment charge against UP magistrate

LUCKNOW: The chief judicial magistrate of Gonda district of Uttar Pradesh on Thursday constituted an inquiry panel to probe complaints of harassment of two girls against the additional chief judicial magistrate.

CJM Umesh Chandra set up the committee on the instructions of the Allahabad high court's senior judge Justice and administrative judge Sudhir Agarwal in response to a letter written by Gonda district police chief Navneet Kumar Rana. The committee would be exploring all possible aspects related to the case including "authenticity" of the complaint.

The ACJM has been accused of molesting two girls while recording their statements. The report would likely be submitted by Saturday evening and based on the findings further action would be taken. Justice Agarwal said, "I have told the district judge to get in touch with the complainants to record their statements on camera. The statement of the accused judge should also be on camera."

In separate incidents, the two girls had allegedly eloped with their lovers but their families claimed they had been kidnapped. The police found the girls and they were produced before the judicial officer on Monday. Both girls complained to the police that he took them to his room and locked it from inside before touching them inappropriately to "determine whether they were minors or adult".

Rana said that FIR against a judicial officer can be lodged only after taking permission from the administrative judge. Thus, he met the district judge and communicated to him about the matter in writing. "I wrote to him to take cognizance of the matter and direct me on further action," he said, adding he was told about inquiry panel by the district judge on Thursday evening.

Sources in the state government said the matter had been brought before senior officials in the department of home affairs. They have reportedly written to the registrar general of the Allahabad High Court as well. Sources said that the administrative judge had agreed to visit Gonda to take stock of the situation if need be.

On Wednesday lawyers affiliated to the bar association of Gonda had boycotted work and vandalized the chamber of the judicial officer and demanded impartial inquiry with adequate action.

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Will Women Register for Selective Service?

Jan 24, 2013 5:53pm

Defense Secretary Leon Panetta today lifted the ban on women serving in combat positions, opening the door to more than 200,000  new military posts and raising a number of important questions, including: Will women eventually be eligible for the draft?

By law, all male U.S. citizens and permanent residents must register with the Selective Service System within 30 days of their 18th birthday. Registration puts those “male persons” on the list the government uses if ever the draft returns and conscription in the military is deemed necessary in a time of war.

As of a 1994 review, women were still exempt from registering because they did not serve in combat positions. Today’s change in Pentagon policy, however, could ultimately result in a change to the law.

But it will take more than just the stroke of the defense secretary’s pen for the Selective Service Act to include mention of women.

With any change to personnel policies, the Defense Department  is “required to provide an analysis of its impact on the Selective Service Act,” said a senior Pentagon official said on the condition of anonymity.  “So that will be part of the notification to Congress.”

But what comes next is  unclear.

“With regard to what will happen from there, I can’t say,” said the official.

Defense Secretary Leon Panetta later admitted to reporters that he, too, did not know the potential impact of the change to the Selective Service Act.

“That’s not our operation,” said Panetta.

Known for his use of colorful language, Panetta then said, “I don’t know who the hell controls Selective Service, if you want to know the truth.”

“But, you know,” Panetta added. “Whoever does, they’re going to have to exercise some judgment based on what we just did.”

The Selective Service System is a federal agency independent of the Department of Defense.

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AP Interview: UN wants better family planning

DAVOS, Switzerland (AP) — The U.N.'s top population official wants governments to do more to ensure that women have access to family planning.

The U.N. says the world will add a billion people to its current population of some 7 billion within a decade, further straining the planet's resources.

Babatunde Osotimehin, executive director of the U.N. Population Fund, says more than 220 million women in the developing world want family planning but aren't getting it.

Speaking to The Associated Press at the World Economic Forum in Davos, he said many women want to have fewer children and that "30 percent of those who die giving birth we can prevent with family planning."

He also called for providing girls with "comprehensive sexuality education."

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Cameron promises Britons vote on EU exit

LONDON (Reuters) - Prime Minister David Cameron promised Britons a vote on quitting the European Union, rattling London's biggest allies and some investors by raising the prospect of uncertainty and upheaval.

Cameron announced on Wednesday that the referendum would be held by the end of 2017 - provided he wins a second term - and said that while Britain did not want to retreat from the world, public disillusionment with the bloc was at "an all-time high".

"It is time for the British people to have their say. It is time for us to settle this question about Britain and Europe," Cameron said in a speech, adding that his Conservative party would campaign for the 2015 parliamentary election on a promise to renegotiate the terms of Britain's EU membership.

"When we have negotiated that new settlement, we will give the British people a referendum with a very simple in or out choice to stay in the European Union on these new terms; or come out altogether. It will be an in-out referendum."

A referendum would mark the second time British voters have had a direct say on the issue. In 1975, they decided by a wide margin to stay in, two years after the country had joined.

Most recent opinion polls have shown a slim majority would vote to leave amid bitter disenchantment, fanned by a hostile press, about the EU's perceived influence on the British way of life. However, a poll this week showed a majority for staying.

Cameron's position is fraught with uncertainty. He must come from behind to win the next election, secure support from the EU's 26 other states for a new British role, and hope those countries can persuade their voters to back the changes.

He also avoided saying exactly what he would do if he failed to win concessions in Europe, as many believe is likely.

Critics, notably among business leaders worried about the effect on investment, say that for years before a vote, Britain may slip into a dangerous and damaging limbo that could leave it adrift or effectively pushed out of the EU.

The United States, a close ally, is also uneasy about the plan, believing it will dilute Britain's international clout. President Barack Obama told Cameron last week that Washington valued "a strong UK in a strong European Union" and the White House said on Wednesday it believed Britain's membership of the EU was mutually beneficial.

Some of Britain's European partners were also anxious and told Cameron on Wednesday his strategy reflected a selfish and ignorant attitude. However, Angela Merkel, the leader of EU paymaster Germany, was quick to say she was ready to discuss Cameron's ideas.

FRENCH "NON"

French Foreign Minister Laurent Fabius was less diplomatic: "If Britain wants to leave Europe, we will roll out the red carpet," he quipped, echoing words Cameron used recently to urge France's rich to escape high taxes and move to Britain.

French President Francois Hollande repeated his refusal of special deals: "What I will say, speaking for France, and as a European, is that it isn't possible to bargain over Europe to hold this referendum," he said. "Europe must be taken as it is.

"One can have it modified in future but one cannot propose reducing or diminishing it as a condition of staying in."

Italian Prime Minister Mario Monti was more positive. He said he agreed with Cameron on the need to make the EU more innovative and welcomed the idea of a British referendum, saying he thought Britons would ultimately vote to stay in the bloc.

Billed by commentators as the most important speech of Cameron's career, his referendum promise ties him firmly to an issue that has bedeviled a generation of Conservative leaders.

In the past, he has been careful to avoid bruising partisan fights over Europe, an issue that undid the last two Conservative prime ministers, John Major and Margaret Thatcher.

His speech appeared to pacify a powerful Euroskeptic wing inside his own party, but deepen rifts with the Liberal Democrats, the junior partners in his coalition. Their leader, Deputy Prime Minister Nick Clegg, said the plan would undermine a fragile economic recovery.

Sterling fell to its lowest in nearly five months against the dollar on Wednesday as Cameron was speaking.

"BREXIT"?

Cameron said he would take back powers from Brussels, saying later in parliament that, when it came to employment, social and environmental legislation, "Europe has gone far too far".

But such a clawback - still the subject of an internal audit to identify which specific powers he should target for repatriation to London - is likely to be easier said than done.

If Cameron wins re-election but then fails to renegotiate Britain's membership of the EU, a 'Brexit' could loom.

Business leaders have warned that years of doubt over Britain's EU membership would damage the $2.5 trillion economy and cool the investment climate.

"Having a referendum creates more uncertainty and we don't need that," Martin Sorrell, chief executive of advertising giant WPP, told the World Economic Forum in Davos. "This is a political decision. This is not an economic decision.

"This isn't good news. You added another reason why people will postpone investment decisions."

Cameron has been pushed into taking such a strong position partly by the rise of the UK Independence Party, which favors complete withdrawal from the EU and has climbed to third in the opinion polls, mainly at the expense of the Conservatives.

"All he's trying to do is to kick the can down the road and to try and get UKIP off his back," said UKIP leader Nigel Farage.

Euroskeptics in Cameron's party, who have threatened to stir up trouble for the premier, were thrilled by the speech.

Conservative lawmaker Peter Bone called it "a terrific victory" that would unify 98 percent of the party. "He's the first prime minister to say he wants to bring back powers from Brussels," Bone told Reuters. "It's pretty powerful stuff".

Whether Cameron holds the referendum remains as uncertain as the Conservatives' chances of winning the election. They trail the opposition Labour party in opinion polls, and the coalition is grappling with a stagnating economy as it pushes through unpopular public spending cuts to reduce a large budget deficit.

Labour leader Ed Miliband said on Wednesday his party did not want an in-or-out referendum.

EU REFORM

Cameron said he would campaign for Britain to stay in the EU "with all my heart and soul", provided he secured the reforms he wants. He made clear the Union must become less bureaucratic and focus more on free trade.

It was riskier to maintain the status quo than to change, he said: "The biggest danger to the European Union comes not from those who advocate change, but from those who denounce new thinking as heresy," he said.

Asked whether, if he did not succeed in his renegotiation strategy, would recommend a vote to take Britain out, he said only: "I want to see a strong Britain in a reformed Europe.

"We have a very clear plan. We want to reset the relationship. We will hold that referendum. We will recommend that resettlement to the British people."

Cameron said the euro zone debt crisis was forcing the bloc to change and that Britain would fight to make sure new rules were fair to the 10 countries that do not use the common currency, of which Britain is the largest.

Democratic consent for the EU in Britain was now "wafer thin", he said:

"Some people say that to point this out is irresponsible, creates uncertainty for business and puts a question mark over Britain's place in the European Union. But the question mark is already there: ignoring it won't make it go away."

A YouGov opinion poll on Monday showed that more people wanted to stay in the EU than leave it, the first such result in many months. But it was unclear whether that result was a blip.

Paul Chipperfield, a 53-year-old management consultant, said he liked the strategy: "Cameron's making the right move because I don't think we've had enough debate in this country," he said.

"We should be part of the EU but the EU needs to recognize that not everybody's going to jump on the same bandwagon."

Asked after the speech whether other EU countries would agree to renegotiate Britain's membership, Cameron said he was an optimist and that there was "every chance of success".

"I don't want Britain to leave the EU," he told parliament later. "I want Britain to reform the EU."

In the 1975 referendum, just over 67 percent voted to stay inside with nearly 33 percent against.

(Additional reporting by Paul Taylor in Davos, Alexandra Hudson in Berlin, Brenda Goh in London, Jeff Mason in Washington and James Mackenzie in Rome; Editing by Guy Faulconbridge, David Stamp and Alastair Macdonald)

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