Pa. governor sues NCAA over Penn State sanctions


STATE COLLEGE, Pa. (AP) — In a bold challenge to the NCAA's powers, Pennsylvania's governor claimed in a lawsuit Wednesday that college sports' governing body overstepped its authority and "piled on" when it penalized Penn State over the Jerry Sandusky child molestation scandal.


Gov. Tom Corbett asked that a federal judge throw out the sanctions, which include an unprecedented $60 million fine and a four-year ban on bowl games, arguing that the measures have harmed students, business owners and others who had nothing to do with Sandusky's crimes.


A small number of top NCAA officials inserted themselves "into an issue they had no authority to police under their own bylaws and one that was clearly being handled by the justice system," Corbett said at a news conference.


The case, filed under federal antitrust law, could define just how far the NCAA's authority extends. Up to now, the federal courts have allowed the organization broad power to protect the integrity of college athletics.


In a statement, the NCAA said the lawsuit has no merit and called it an "affront" to Sandusky's victims.


Penn State said it had no role in the lawsuit. In fact, it agreed not to sue as part of the deal with the NCAA accepting the sanctions, which were imposed in July after an investigation found that football coach Joe Paterno and other top officials hushed up sexual-abuse allegations against Sandusky, a former member of Paterno's staff, for more than a decade for fear of bad publicity.


The penalties include a cut in the number of football scholarships the university can award and a rewriting of the record books to erase 14 years of victories under Paterno, who was fired when the scandal broke in 2011 and died of lung cancer a short time later.


The lawsuit represents a reversal by the governor. When Penn State's president consented to the sanctions last summer, Corbett, a member of the Board of Trustees, embraced them as part of the university's effort to repair the damage from the scandal.


Corbett said he waited until now to sue over the "harsh penalties" because he wanted to thoroughly research the legal issues and did not want to interfere with the football season.


The deal with the NCAA has been unpopular with many fans, students and alumni. Corbett, who is up for re-election next year, deflected a question about whether his response has helped or hurt him politically.


"We're not going to get into the politics of this," he said.


An alumni group, Penn Staters for Responsible Stewardship, applauded the lawsuit but said Corbett should have asked questions when the NCAA agreement was made.


"If he disapproved of the terms of the NCAA consent decree, or if he thought there was something illegal about them, why didn't he exercise his duty to act long before now?" the group said.


Paterno's family members said in a statement that they were encouraged by the lawsuit. Corbett "now realizes, as do many others, that there was an inexcusable rush to judgment," they said.


Corbett's lawsuit accuses the NCAA of cynically exploiting the Sandusky case, saying its real motives were to "gain leverage in the court of public opinion, boost the reputation and power of the NCAA's president" and "enhance the competitive position of certain NCAA members." It said the NCAA has not cited a rule that Penn State broke.


Corbett charged that the NCAA violated the Sherman Antitrust Act, which prohibits agreements that restrain interstate commerce. Legal experts called it an unusual case whose outcome is difficult to predict.


The NCAA has faced antitrust litigation before, with a mixed record of success. In 1984, the Supreme Court ruled against the NCAA's exclusive control over televised college football games. And in 1998, the Supreme Court let stand a ruling that said the NCAA's salary cap for some assistant coaches was unlawful price-fixing.


But federal courts have consistently rejected antitrust challenges to NCAA rules and enforcement actions designed to preserve competitive balance, academic integrity and amateurism in college athletics.


In this case, the courts might not be as sympathetic to the NCAA, said Matthew Mitten, director of the National Sports Law Institute at Marquette University Law School.


"It's difficult to justify the sanctions as necessary to protect the amateur nature of college sports, preserve competitive balance or maintain academic integrity," he said.


Joseph Bauer, an antitrust expert at the University of Notre Dame law school, said of Corbett's line of reasoning: "I don't think it's an easy claim for them to make, but it's certainly a viable claim."


Sandusky, 68, was convicted in June of sexually abusing 10 boys over a 15-year period, some of them on Penn State's campus. He is a serving a 30- to 60-year prison sentence.


Michael Boni, a lawyer for one of the victims, said he does not consider the lawsuit an affront. But he said he hopes Corbett takes a leading role in pushing for changes to state child-abuse laws.


"I really question who he's concerned about in this state," Boni said.


Michael Desmond, a businessman who appeared with Corbett at the news conference, said business at his five State College eating establishments was down about 10 percent during Penn State home game weekends this year.


"The governor's actions are going to be immensely popular with all Penn State alumni," Desmond said.


Corbett, a Republican, said his office did not coordinate its legal strategy with state Attorney General-elect Kathleen Kane, who is scheduled to be sworn in Jan. 15. Instead, the current attorney general, Linda Kelly, granted the governor authority to pursue the matter.


Kane, a Democrat, ran on a vow to investigate why it took prosecutors nearly three years to charge Sandusky. Corbett was attorney general when his office took over the case in 2009.


Kane had no comment on the lawsuit because she was not consulted about it by Corbett's office.


State and congressional lawmakers have objected to use of the NCAA fine to finance child-abuse prevention efforts in other states. Penn State has already made the first $12 million payment, and an NCAA task force is deciding how it should be spent.


___


Associated Press writer Peter Jackson in Harrisburg, Pa., contributed.


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Cosmic Pancake Spotted Around Andromeda Galaxy






A giant pancake-like structure made of dwarf galaxies has been spotted orbiting the Andromeda galaxy, the nearest neighbor of our own Milky Way, researchers say.


A similar galactic disk, which current galaxy formation models have trouble explaining, may even exist around the Milky Way, too, scientists added.






The Andromeda galaxy, named after a mythological princess, is a spiral galaxy much like the Milky Way. At about 2.5 million light-years away in the Andromeda constellation, it is the nearest spiral galaxy, and is the most distant object in the sky that one can see with the unaided eye.


Andromeda and Milky Way are each surrounded by a swarm of smaller galaxies. These dwarf galaxies, which seem rich in mysterious, invisible dark matter, appear to each be about 10 million to 100 million times the mass of the sun, while the Andromeda and Milky Way each total nearly 1 trillion (that’s 1 million million) times the mass of the sun.


“These dwarf galaxies shine from a few hundred to millions of times fainter than large spiral galaxies like Andromeda or the Milky Way,” said study author Nicolas Martin, an astronomer at the Astronomical Observatory of Strasbourg in France. [Andromeda's Collision With Our Milky Way (Gallery)]


Now Martin and his colleagues find that about half of Andromeda’s 27 known dwarf galaxies are apparently arranged in a disk around it spinning in the same direction as Andromeda. These 13 ball-shaped dwarf galaxies make up a pancake-like structure less than 42,000 light-years thick that extends at least 1.3 million light-years away from Andromeda.


Satellites of Andromeda


The astronomers detected the disk using the Canada-France-Hawaii Telescope in Hawaii as part of the Pan-Andromeda Archaeological Survey.


So far, it remains uncertain if current models of galaxy formation and evolution can explain the existence of this vast disk.


Dwarf satellite galaxies are thought to be remnants of the material that came together to form the giant galaxies they surround. While it makes sense that a disk of such dwarfs might emerge early after they formed, after a few orbits these dwarfs should veer off and live relatively independently, dispersing the disk in the process.


“Either something about how these galaxies formed or subsequently evolved must have led them to trace out this peculiar, coherent structure,” Martin told SPACE.com. “Either way, we do not understand the reason for this structure, making it very exciting.”


“The presence of this thin, rotating disk of dwarf galaxies around Andromeda suggests a strong connection between the host galaxy Andromeda and its satellites,” Martin added. “There is currently no satisfactory scenario that can explain all the properties of the satellites in the disk, but they all require a strong interplay between Andromeda and the satellites themselves.”


Astronomical illusion or reality?


Critics might wonder if these dwarf galaxies are coincidentally moving together, and only seem to make up a disk.


“It could be argued that we are seeing a statistical fluke, but this would be an exceedingly rare statistical fluke indeed — about one chance in 10,000,” Martin said.


Other mysteries abound regarding this new discovery. For instance, this disk of dwarves appears tilted at about a 50-degree angle in relation to Andromeda’s disk. It is unknown why that is.


“It may relate to the dynamics of the process responsible for the creation of this rotating disk,” Martin said.


Intriguingly, the Milky Way’s pole apparently lines up with Andromeda’s disk of dwarf galaxies. It remains unclear why that is as well.


“It may indicate that the Milky Way is somehow involved in the shaping of this plane of dwarf galaxies, but it could also be a chance alignment,” Martin said.


In addition, about half the remaining dwarfs orbiting Andromeda, which lie above the spiral galaxy, also seem to make up another disk. This one seems tilted by about 13 degrees in relation to Andromeda’s disk, said Brent Tully at the University of Hawaii, who did not participate in this study.


The researchers now hope to investigate the properties of dwarf galaxies in this disk to look for any differences from dwarf galaxies outside the disk that could enlighten them on the disk’s origin. They would also like to see if similar disks exist around other galaxies to check if they are common features of galaxy formation.


The scientists detailed their findings in the Jan. 3 issue of the journal Nature.


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Time to rebrand in Lincoln's image?




Wade Henderson thinks the modern Republican Party should look to Abraham Lincoln for some inspiration.




STORY HIGHLIGHTS


  • Wade Henderson: January 1 is 150th anniversary of the Emancipation Proclamation

  • He says GOP should look to Lincoln, a canny politician who led moral fight on civil rights

  • He says GOP has history of civil rights support that it has largely abandoned in recent years

  • Henderson: In 2012, election minority voters unimpressed; GOP should return to roots




Editor's note: Wade Henderson is the president and CEO of The Leadership Conference on Civil and Human Rights and The Leadership Conference Education Fund.


(CNN) -- On January 1, the nation will commemorate the 150th anniversary of the Emancipation Proclamation, which legally freed slaves in the secessionist Southern states. Meanwhile, thousands of theaters will still be presenting the film "Lincoln," portraying the soon-to-be-martyred president's efforts in January 1865 to persuade the House of Representatives to pass the 13th Amendment, outlawing slavery throughout the nation.


Coming at a time when many Republicans are seeking to rebrand their party, these commemorations of the first Republican president raise this question: Why not refashion the Grand Old Party in the image of the Great Emancipator?


Steven Spielberg's historical drama, as well as the biography upon which it is based, Doris Kearns Goodwin's "Team of Rivals: The Political Genius of Abraham Lincoln," both remind today's Americans that Lincoln was not only a moral leader but also a practical politician. The political identity that Lincoln forged for the fledgling Republican Party -- uniting the nation while defending individual rights -- was a winning formula for half a century, with the GOP winning 11 of 13 presidential elections from 1860 through 1908.



Wade Henderson

Wade Henderson



Moreover, support for civil rights persisted in the party throughout the last century. Among the Republican presidents of the 20th century, Theodore Roosevelt famously hosted Booker T. Washington at the White House. Dwight Eisenhower ordered federal troops to Little Rock, Arkansas, to enforce school desegregation. Richard Nixon expanded affirmative action. And George H. W. Bush signed the Americans with Disabilities Act into law.


Brazile: A turning point for freedom in America, 150 years later




In the U.S. Senate, such prominent Republicans as Edward Brooke of Massachusetts (the first African-American senator since Reconstruction), Jacob Javits of New York and Everett Dirksen of Illinois were strong supporters of civil rights, as were governors such as Nelson Rockefeller in New York, George Romney in Massachusetts and William Scranton in Pennsylvania.


Former California Gov. Earl Warren served as chief justice when the Supreme Court issued its decision in Brown v. Board of Education, ordering the desegregation of the nation's schools. As recently as 1996, the Republican national ticket consisted of two strong civil rights advocates, former Kansas Sen. Bob Dole and former New York Rep. Jack Kemp.



Unfortunately, by 2012, the Republican Party had veered far from its heritage as the party of Lincoln. Prominent Republicans supported statewide voter suppression laws that hit hardest at vulnerable minorities or called for the "self-deportation" of immigrants and their families.


While some Republican senatorial nominees needlessly offended women, leading moderates such as Maine Sen. Olympia Snowe and Ohio Rep. Steven LaTourette opted for retirement. In what I hope was rock bottom, 38 Senate Republicans rebuffed their former presidential nominee Bob Dole -- a wheelchair-bound war hero -- to block an international civil and human rights treaty for people with disabilities.


150 years later, myths persist about the Emancipation Proclamation


Not surprisingly, the GOP in the presidential race lost the black vote by 87 points, the Asian-American vote by 47 points, the Latino vote by 44 points and the women's vote by 11 points, according to CNN exit polls. As Republicans reflect on their path forward with minority voters and persuadable whites, there are opportunities to advance civil rights.










While the GOP has increasingly promoted diverse candidates, it has not yet begun to reflect the values of our diverse nation. Fiscally conservative officeholders can fight for civil and human rights.


Just a few years ago, Alabama Sen. Jeff Sessions championed a reduction in the sentencing disparity between people charged with possession of crack and powder cocaine. These are two forms of the same drug, but crack cocaine is used more by minorities and carried much harsher punishments for possession. Working with Sessions, civil rights advocates pushed to reduce this disparity significantly -- among the greatest advances in criminal justice reform in decades.


Looking forward to the 113th Congress, there are several civil rights initiatives that would fit conservative values. They need congressional champions. Conservative lobbyist Grover Norquist and conservative strategist Richard Viguerie have called for criminal justice reforms that would reduce the number of prisoners in U.S. prisons.


The U.S. Chamber of Commerce has joined the civil rights coalition's call for federal initiatives to narrow the educational achievement gap between minority and white students. And more Republicans are joining Jeb Bush's support for comprehensive immigration reform that provides a pathway to citizenship for long-term, law-abiding residents.


Most importantly, the GOP must embrace one of Lincoln's most enduring legacies, the 15th Amendment, which guaranteed the right to vote regardless of race. The GOP must stop trying to suppress voters and begin to champion electoral reform that shortens lines and helps more people to vote.


Opinion: What Obama can learn from Lincoln


I don't expect another Abraham Lincoln or Frederick Douglass from the modern Republican Party -- I'll settle for a few more Jeff Sessions. When Republicans consider the consequences for their party's narrow appeal, they'll try to return to their roots.


I'm happy to help.


Follow @CNNOpinion on Twitter


Join us at Facebook/CNNOpinion


The opinions expressed in this commentary are solely those of Wade Henderson.






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Judge: No 'credible evidence' Chief Keef moved to Northbrook









A Cook County judge ruled today that South Side rapper Chief Keef could remain free despite new allegations he violated his juvenile probation by moving to Northbrook without telling authorities.

Prosecutors asked Juvenile Court Judge Carl Anthony Walker to have the 17-year-old emerging rap star, whose real name is Keith Cozart, locked up pending a full hearing later this month.

But after hearing testimony from Cozart's probation officer, the judge said he had not been presented "any credible evidence" that the teen had moved from his Dolton home.

Cozart's attorney said the rapper was spending a lot of time recording songs in the Northbrook home of his manager, where they have set up a studio.

Prosecutors said that in addition to failing to tell his probation officer of his change in address, Cozart had not been heard from since his debut album "Finally Rich" went on sale on Dec. 18.

Several attempts by authorities to contact Cozart by phone were unsuccessful, so officials went to the Dolton home where Cozart was supposed to be living with his grandmother, but he was not there, Assistant State's Atty. Jullian Brevard said.

Cozart appeared in court today in a black coat with a fur-lined hood and tan jeans. Accompanied by two managers and several family members, the lanky teen held his arms in the air on the way out of the Near West Side courthouse and exclaimed, "Why they got a problem with my address?"

The court appearance was the latest legal trouble for Cozart, who is on probation after a juvenile conviction for pointing a gun at a police officer.

Last year, prosecutors alleged he violated his probation by taking part in a video interview at a gun range in New York during which he reportedly is shown holding a rifle.

Chicago police have been looking into whether Chief Keef and his allies played a role in the Sept. 4 slaying of aspiring rapper Lil Jojo.

The slaying garnered national attention after Chief Keef sent a taunting tweet about the slain 18-year-old, whose real name was Joseph Coleman, hours after the killing. Chief Keef received mostly negative feedback from his more than 200,000 Twitter followers before he claimed his account had been hacked.

Walker set a formal hearing on the probation violation allegations for Jan. 28.

jmeisner@tribune.com



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Central African Republic rebels halt advance, agree to peace talks


DAMARA, Central African Republic (Reuters) - Rebels in Central African Republic said they had halted their advance on the capital on Wednesday and agreed to start peace talks, averting a clash with regionally backed troops.


The Seleka rebels had pushed to within striking distance of Bangui after a three-week onslaught and threatened to oust President Francois Bozize, accusing him of reneging on a previous peace deal and cracking down on dissidents.


Their announcement on Wednesday gave the leader only a limited reprieve as the fighters told Reuters they might insist on his removal in the negotiations.


"I have asked our forces not to move their positions starting today because we want to enter talks in (Gabon's capital) Libreville for a political solution," said Seleka spokesman Eric Massi, speaking by telephone from Paris.


"I am in discussion with our partners to come up with proposals to end the crisis, but one solution could be a political transition that excludes Bozize," he said.


Bozize on Wednesday sacked his Army Chief of Staff and took over the defense minister's role from his son, Jean Francis Bozize, according to a decree read on national radio, a day after publicly criticizing the military for failing to repel the rebels.


The advance by Seleka, an alliance of mostly northeastern rebel groups, was the latest in a series of revolts in a country at the heart of one of Africa's most turbulent regions - and the most serious since the Chad-backed insurgency that swept Bozize to power in 2003.


Diplomatic sources have said talks organized by central African regional bloc ECCAS could start on January 10. The United States, the European Union and France have called on both sides to negotiate and spare civilians.


Central African Republic is one of the least developed countries in the world despite its deposits of gold, diamonds and other minerals. French nuclear energy group Areva mines the country's Bakouma uranium deposit - France's biggest commercial interest in its former colony.


RELIEF IN BANGUI


News of the rebel halt eased tension in Bangui, where residents had been stockpiling food and water and staying indoors after dark.


"They say they are no longer going to attack Bangui, and that's great news for us," said Jaqueline Loza in the crumbling riverside city.


ECCAS members Chad, Congo Republic, Gabon and Cameroon have sent hundreds of soldiers to reinforce CAR's army after a string of rebel victories since early December.


Gabonese General Jean Felix Akaga, commander of the regional force, said his troops were defending the town of Damara, 75 km (45 miles) north of Bangui and close to the rebel front.


"Damara is a red line not to be crossed ... Damara is in our control and Bangui is secure," he told Reuters. "If the rebellion decides to approach Damara, they know they will encounter a force that will react."


Soldiers armed with Kalashnikovs, rocket propelled grenade launchers and truck-mounted machineguns had taken up positions across the town, which was otherwise nearly-abandoned.


Some of the fighters wore turbans that covered their faces and had charms strung around their necks and arms meant to protect them against enemy bullets.


Chad's President Idriss Deby, one of Bozize's closest allies, had warned the rebels the regional force would confront them if they approached the town.


Chad provided training and equipment to the rebellion that brought Bozize to power by ousting then-president Ange Felix Patasse, who Chad accused of supporting Chadian dissidents.


Chad is also keen to keep a lid on instability in the territory close to its main oil export pipeline and has stepped in to defend Bozize against insurgents in the past.


A CAR government minister told Reuters the foreign troop presence strengthened Bozize's bargaining position ahead of the Libreville peace talks.


"The rebels are now in a position of weakness," the minister said, asking not to be named. "They should therefore stop imposing conditions like the departure of the president."


Central African Republic is one of a number of countries in the region where U.S. Special Forces are helping local soldiers track down the Lord's Resistance Army, a rebel group which has killed thousands of civilians across four nations.


France has a 600-strong force in CAR to defend about 1,200 of its citizens who live there.


Paris used air strikes to defend Bozize against a rebellion in 2006. But French President Francois Hollande turned down a request for more help, saying the days of intervening in other countries' affairs were over.


(Additional reporting by Paul-Marin Ngoupana in Bangui and Jon Herskovitz in Johannesburg; Writing by Richard Valdmanis; Editing by Andrew Heavens and Janet Lawrence)



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"Fiscal cliff" moves to House, timing and outcome uncertain


WASHINGTON (Reuters) - Washington's last-minute scramble to step back from a "fiscal cliff" ran into trouble on Tuesday as Republicans in the House of Representatives balked at a deal to avert a budget crisis.


Republican leaders in the House said they might try to change the bill approved by the Senate which voted to raise taxes on the wealthy in a late-night show of unity.


That would set up a high-stakes game of chicken between the two chambers and risk a stinging rebuke from financial markets that are due to open in Asia in six hours.


The bill drew overwhelming support from Republicans and Democrats alike in the Senate when it passed by a vote of 89 to 8. But Majority Leader Eric Cantor, the No. 2 Republican in the House, told reporters after huddling with other Republicans that he does not support the measure.


Republicans said they might try to add more spending cuts to the bill, which contains over $600 billion in tax increases but only around $12 billion in spending cuts.


With the Senate adjourned until Thursday, it appeared possible that Congress could push the country over the "fiscal cliff" after all, despite months of effort.


Republicans could face a backlash if they scuttle the deal. Income tax rates technically rose back to 1990s levels for all Americans at midnight, and across-the-board spending cuts on defense and domestic programs are due to kick in on Wednesday.


Economists say the $600 billion combination of tax cuts and spending cuts could push the economy into recession, and public opinion polls show Republicans would shoulder the blame.


Lingering uncertainty over U.S. fiscal policy has unnerved investors and depressed business activity for months.


Financial markets have staved off a steep plunge on the assumption that Washington would ultimately avoid pushing the country off the fiscal cliff into a recession.


With financial markets closed for the New Year's Day holiday, lawmakers have only Tuesday to close the deal before Wall Street has time to weigh in.


"My district cannot afford to wait a few days and have the stock market go down 300 points tomorrow if we don't get together and do something," Representative Steve Cohen, a Democrat from Tennessee, said on the House floor.


The bill passed by the Democratic-led Senate at around 2 a.m. would raise income taxes on families earning more than $450,000 per year and limit the amount of deductions they can take to lower their tax bill.


Low temporary rates that have been in place for less affluent taxpayers for the past decade would be made permanent, along with a range of targeted tax breaks put in place by President Barack Obama in the depths of the 2009 recession.


However, workers would see up to $2,000 more taken out of their paychecks annually as a temporary payroll tax cut was set to expire.


(Additional reporting by Thomas Ferraro; Writing by Andy Sullivan; Editing by Alistair Bell and Jackie Frank)



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No. 21 Northwestern ends drought in Gator Bowl


JACKSONVILLE, Fla. (AP) — Behind huge interceptions early and late, No. 21 Northwestern beat Mississippi State 34-20 in the Gator Bowl on Tuesday and snapped college football's longest postseason losing streak.


The Wildcats (10-3) won their first bowl game since 1949, snapping a nine-game losing streak that was tied for the longest in NCAA history. They also celebrated double-digit victories for the first time since the 1995 Rose Bowl season.


Quentin Williams returned an interception 29 yards for a touchdown on the third play of the game and Nick Vanhoose set up a late touchdown with a 39-yard interception return. Those plays were the difference in a back-and-forth game that featured more interceptions (seven) than touchdowns (six).


In between, Northwestern's two-quarterback system kept the Bulldogs (8-4) off balance most of the day.


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Europe Tackling Big Space Projects in 2013






LONDON — The European Space Agency has some ambitious resolutions for the New Year. The year 2013 will include the agency’s first spaceflight for its newest class of astronauts, the launch of its latest robot cargo ship Albert Einstein, and the development of new rockets and spacecraft, including a reusable space plane and work on NASA’s new Orion spacecraft.


January and February should see agreements and contracts signed for the new rockets, Ariane 5 Mid-Life Evolution (ME) and Ariane 6, and for ESA’s participation in NASA’sOrion space capsule. ESA is providing the service module for the Orion capsule, which NASA plans to use to fly astronauts on future deep-space missions.  






With deadlines in 2014 for the rocket work, and 2017 for an unmanned Orion test flight, ESA officials know 2013 will see lots of activity right from the start.


“The Orion service module funding has been approved, so now the usual work process starts. I think [the NASA-ESA agreement signing] is in January. It should be rather early from what I’ve heard, it is something to be done towards the beginning of the year,” Franco Bonacina, spokesman for ESA’s director-general, Jean-Jacques Dordain, told SPACE.com. [Meet the European Space Agency (Video)]


Powerhouse for NASA’s Orion


ESA will provide one service module for Orion’s 2017 test launch. The module’s preliminary design review, or PDR, is planned for July 2013. The PDR is a major milestone for spaceflight projects, allowing managers to check a spacecraft’s design progress.


The ESA service module’s previous review, the system design review, occurred in September 2012, and the next major design review is not until 2015. The service module will provide propulsion, avionics, heat control and energy from solar arrays. It will also store water, oxygen and nitrogen for life support.


ESA’s Orion module is being delivered as an in-kind contribution for International Space Station (ISS) operations, for the period 2017 to 2020. The module is expected to cost ESA several hundred million dollars.


Europe’s new rockets


Before the Orion work shifts into gear, a pair of two-year studies is due to begin at the start of 2013 for the agency’s Ariane 5ME and Ariane 6 rockets. This is so ESA can make a decision about the future of its launchers in late 2014.


Operated by the company Arianespace, the workhorse Ariane 5 rocket launches ESA missions and commercial satellites. The rocket launches from the South American territory of French Guiana and is able to launch two spacecraft at a time. It first flew in 1997 and can launch up to 22,000 pounds (10,000 kilograms) into orbit.


The new Ariane 5 version, the Ariane 5ME, has already been in development for many years and it had been planned to be operational from 2016. It will be the same height, excluding the nose cone, and weight as its predecessor, but will be able launch an additional 2,540 pounds (1152 kg) of payload, with a maximum payload of 24,640 pounds (11,176 kg) for geostationary orbits.


The Ariane 5ME will use a new upper stage and rocket engine, the Vinci, and has a larger nose cone. If approved in 2014, the Ariane 5ME could be operational towards the end of this decade.


However, ESA has concluded that it needs a simpler rocket that can launch more frequently with only one payload onboard. This is the planned Ariane 6, which was originally called Next Generation Launcher (NGL).


The Ariane 6 rocket has been the subject of numerous studies that have evaluated NGL versions that either only have solid rocket motors or only liquid fuel engines. According to Bonacina, for Ariane 6, the two year studies will determine, “what shape and configuration it will have and what kind of money will be needed over what timeframe”. Neither Ariane 5ME nor Ariane 6 will launch astronauts.


A decision on Ariane 6 was supposed to take place in 2012, but disagreement between France and Germany, the largest ESA budget contributors, saw a compromise. France was in favor of Ariane 6, while Germany wanted Ariane 5ME to go ahead.


“It was a heavy compromise between Germany and France. They all had their interesting points of view and a solution has been found,” Bonacina said. “The good thing is that Ariane 6 has started and Ariane 5ME continues in parallel.”


In April of this year, ESA expects to hit two rocket milestones. They include second launch of its latest rocket, Vega, which uses solid rocket motors for its first, second and upper stages. The Vega rocket will launch the Earth observation satellite, Proba-V. The V in Proba-V stands for vegetation because the satellite will monitor the Earth’s plant life. [Europe’s Vega Rocket 1st Launch (Photos)]


Then in mid or late April, the latest version of the Ariane 5 — the Ariane 5 ES — is due make its next launch. The Ariane 5 ES has an upper stage whose engine can reignite. This allows it to launch ESA’s robotic Automated Transfer Vehicle cargo ships.


Europe’s ATV spacecraft deliver supplies to the International Space Station and propellant to raise the station’s orbit when needed. The ATV to be launched in April, called Albert Einstein, will be the fourth ESA’s five planned ATV missions to the space station.


Satellites galore


Europe’s other launches in the second half of 2013 include satellites for the European Union’s space-based navigation system, Galileo. The Galileo satellites will be launched by a Russian Soyuz 2 rocket from the Soyuz launch site in French Guiana.


Also launched in the latter half of 2013 by Soyuz rockets will be ESA’s Gaia mission and the Sentinel-1A satellite. The Gaia spacecraft will operate beyond the Moon, over 600,000 miles (965,606 kilometers) from Earth, and its goal is to create the largest and most precise three-dimensional map of the galaxy.


The Sentinel-1A is a polar orbit satellite that uses synthetic aperture radar. It is the first dedicated satellite for the Global Monitoring for Environment and Security constellation, a joint venture between ESA and the European Union. A constellation of two satellites, GMES’ Sentinel-1B is expected to launch in 2015.


An Ariane 5 will also launch Alphasat this year. This high bandwidth telecommunications satellite will provide commercial services and test various communications technologies including lasers.


Europe’s astronauts and robot arm


In May, a Russian Soyuz spacecraft will launch ESA’s Italian born astronaut Luca Parmitano from Baikonur Cosmodrome in Kazakhstan. Parmitano is launching on a six-month mission to the International Space Station and is slated to return to Earth in November.


Parmitano was selected to join ESA’s astronaut corps in May 2009 as one of six candidates. The five others hailed from France, Germany, Italy, Denmark and the United Kingdom. Of those, Parmitano is the first bound for the space station.


The 35-year old former Italian Air Force test pilot will be a flight engineer on the station crew. While Albert Einstein and Parmitano are headed to the orbiting laboratory in 2013, a new robotic arm for the orbiting laboratory will likely slip to 2014.


The station’s new European Robotic Arm, or ERA, will launch on a Proton rocket from Baikonur Cosmodrome, ESA’s ERA will be attached to Russia’s multipurpose laboratory module.


The robotic arm consists of two end-effectors, two wrists, two limbs and one elbow joint, together with electronics and cameras. Both end-effectors act as either a hand or the base from which it can operate. ERA will be used in the assembly and servicing of the Russian segment of the station, and its infrared cameras will allow it to carry out inspections of the station’s exterior.


The arm will also be able to transport astronauts, like a cherry picker crane, from one external location to another. This saves time and effort during spacewalk activities. ERA is also compatible with the new Russian airlock, so it can transfer small payloads between the station’s interior and the vacuum of space quickly. This will also reduce the crew’s space walk set-up time and allow ERA to work with astronauts outside the station.


Space plane under development


Like ERA, ESA’s space plane prototype, the Intermediate Experimental Vehicle (IXV), was to have been launched in 2013. It will now fly on ESA’s Vega rocket in 2014. The IXV vehicle is designed to test re-entry technologies during a suborbital flight launching from French Guiana and splashing down in the Pacific Ocean using parachutes.


ESA has now approved funds for IXV’s possible follow-on, Innovative Space Vehicle (ISV), under the Program for Reusable In-orbit Demonstrator in Europe.


The ISV would be Europe’s civilian equivalent of the U.S. Air Force’s unmanned X-37B Orbital Test Vehicle, a robotic miniature space shuttle that has flown on three missions since 2010. The unmanned European space plane would be much smaller than the Air Force vehicle, however.


Giorgio Tumino, IXV program manager told SPACE.com: “We did not get all what we asked, but enough to go ahead and keep the planning.”


Follow SPACE.com @Spacedotcom. We’re also on Facebook and Google+.


Copyright 2013 SPACE.com, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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13 key stories to watch for in 2013




Among the few virtual certainties of 2013 is the ongoing anguish of Syria and the decline of its president, Bashar al-Assad.




STORY HIGHLIGHTS


  • Look for more unrest amid power transitions in the Middle East

  • Disputes and economic worries will keep China, Japan, North Korea in the news

  • Europe's economy will stay on a rough road, but the outlook for it is brighter

  • Events are likely to draw attention to cyber warfare and climate change




(CNN) -- Forecasting the major international stories for the year ahead is a time-honored pastime, but the world has a habit of springing surprises. In late 1988, no one was predicting Tiananmen Square or the fall of the Berlin Wall. On the eve of 2001, the 9/11 attacks and the subsequent invasion of Afghanistan were unimaginable. So with that substantial disclaimer, let's peer into the misty looking glass for 2013.


More turmoil for Syria and its neighbors


If anything can be guaranteed, it is that Syria's gradual and brutal disintegration will continue, sending aftershocks far beyond its borders. Most analysts do not believe that President Bashar al-Assad can hang on for another year. The more capable units of the Syrian armed forces are overstretched; large tracts of north and eastern Syria are beyond the regime's control; the economy is in dire straits; and the war is getting closer to the heart of the capital with every passing week. Russian support for al-Assad, once insistent, is now lukewarm.


Amid the battle, a refugee crisis of epic proportions threatens to become a catastrophe as winter sets in. The United Nations refugee agency says more than 4 million Syrians are in desperate need, most of them in squalid camps on Syria's borders, where tents are no match for the cold and torrential rain. Inside Syria, diseases like tuberculosis are spreading, according to aid agencies, and there is a danger that hunger will become malnutrition in places like Aleppo.


The question is whether the conflict will culminate Tripoli-style, with Damascus overrun by rebel units; or whether a political solution can be found that involves al-Assad's departure and a broadly based transitional government taking his place. U.N. envoy Lakhdar Brahimi has not been explicit about al-Assad's exit as part of the transition, but during his most recent visit to Damascus, he hinted that it has to be.









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"Syria and the Syrian people need, want and look forward to real change. And the meaning of this is clear to all," he said.


The international community still seems as far as ever from meaningful military intervention, even as limited as a no fly-zone. Nor is there any sign of concerted diplomacy to push all sides in Syria toward the sort of deal that ended the war in Bosnia. In those days, the United States and Russia were able to find common ground. In Syria, they have yet to do so, and regional actors such as Turkey, Qatar, Saudi Arabia and Iran also have irons in the fire.


Failing an unlikely breakthrough that would bring the regime and its opponents to a Syrian version of the Dayton Accords that ended the Bosnian war, the greatest risk is that a desperate regime may turn to its chemical weapons, troublesome friends (Hezbollah in Lebanon and the Kurdish PKK in Turkey) and seek to export unrest to Lebanon, Iraq and Jordan.


The Syrian regime has already hinted that it can retaliate against Turkey's support for the rebels -- not by lobbing Scud missiles into Turkey, but by playing the "Kurdish" card. That might involve direct support for the PKK or space for its Syrian ally, the Democratic Union Party. By some estimates, Syrians make up one-third of the PKK's fighting strength.


To the Turkish government, the idea that Syria's Kurds might carve out an autonomous zone and get cozy with Iraq's Kurds is a nightmare in the making. Nearly 800 people have been killed in Turkey since the PKK stepped up its attacks in mid-2011, but with three different sets of elections in Turkey in 2013, a historic bargain between Ankara and the Kurds that make up 18% of Turkey's population looks far from likely.


Many commentators expect Lebanon to become more volatile in 2013 because it duplicates so many of the dynamics at work in Syria. The assassination in October of Lebanese intelligence chief Brig. Gen. Wissam al-Hassan -- as he investigated a pro-Syrian politician accused of obtaining explosives from the Syrian regime -- was an ominous portent.


Victory for the overwhelmingly Sunni rebels in Syria would tilt the fragile sectarian balance next door, threatening confrontation between Lebanon's Sunnis and Hezbollah. The emergence of militant Salafist groups like al-Nusra in Syria is already playing into the hands of militants in Lebanon.


Iraq, too, is not immune from Syria's turmoil. Sunni tribes in Anbar and Ramadi provinces would be heartened should Assad be replaced by their brethren across the border. It would give them leverage in an ever more tense relationship with the Shia-dominated government in Baghdad. The poor health of one of the few conciliators in Iraqi politics, President Jalal Talabani, and renewed disputes between Iraq's Kurds and the government over boundaries in the oil-rich north, augur for a troublesome 2013 in Iraq.


More worries about Iran's nuclear program


Syria's predicament will probably feature throughout 2013, as will the behavior of its only friend in the region: Iran. Intelligence sources say Iran continues to supply the Assad regime with money, weapons and expertise; and military officers who defected from the Syrian army say Iranian technicians work in Syria's chemical weapons program. Al-Assad's continued viability is important for Iran, as his only Arab ally. They also share sponsorship of Hezbollah in Lebanon, which, with its vast supply of rockets and even some ballistic missiles, might be a valuable proxy in the event of an Israeli strike against Iran's nuclear program.


Speaking of which, there are likely to be several more episodes in the behind-closed-doors drama of negotiations on Iran's nuclear sites. Russia is trying to arrange the next round for January. But in public, at least, Iran maintains it has every right to continue enriching uranium for civilian purposes, such as helping in the treatment of more than 1 million Iranians with cancer.


Iran "will not suspend 20% uranium enrichment because of the demands of others," Fereydoun Abbasi-Davani, head of Iran's Atomic Energy Organization, said this month.


International experts say the amount of 20% enriched uranium (estimated by the International Atomic Energy Agency in November at 297 pounds) is more than needed for civilian purposes, and the installation of hundreds more centrifuges could cut the time needed to enrich uranium to weapons-grade. The question is whether Iran will agree to intrusive inspections that would reassure the international community -- and Israel specifically -- that it can't and won't develop a nuclear weapon.


This raises another question: Will it take bilateral U.S.-Iranian talks -- and the prospect of an end to the crippling sanctions regime -- to find a breakthrough? And will Iran's own presidential election in June change the equation?


For now, Israel appears to be prepared to give negotiation (and sanctions) time to bring Iran to the table. For now.


Egypt to deal with new power, economic troubles


Given the turmoil swirling through the Middle East, Israel could probably do without trying to bomb Iran's nuclear program into submission. Besides Syria and Lebanon, it is already grappling with a very different Egypt, where a once-jailed Islamist leader is now president and Salafist/jihadi groups, especially in undergoverned areas like Sinai, have a lease on life unimaginable in the Mubarak era.



The U.S. has an awkward relationship with President Mohamed Morsy, needing his help in mediating with Hamas in Gaza but concerned that his accumulation of power is fast weakening democracy and by his bouts of anti-Western rhetoric. (He has demanded the release from a U.S. jail of Sheikh Omar Abdel Rahman, convicted of involvement in the first bombing of the World Trade Center in 1993.)


The approval of the constitution removes one uncertainty, even if the opposition National Salvation Front says it cements Islamist power. But as much as the result, the turnout -- about one-third of eligible voters -- indicates that Egyptians are tired of turmoil, and more concerned about a deepening economic crisis.


Morsy imposed and then scrapped new taxes, and the long-expected $4.8 billion loan from the International Monetary Fund is still not agreed on. Egypt's foreign reserves were down to $15 billion by the end of the year, enough to cover less than three months of imports. Tourism revenues are one-third of what they were before street protests erupted early in 2011. Egypt's crisis in 2013 may be more about its economy than its politics.


Libya threatens to spawn more unrest in North Africa


Libya's revolution, if not as seismic as anything Syria may produce, is still reverberating far and wide. As Moammar Gadhafi's rule crumbled, his regime's weapons found their way into an arms bazaar, turning up in Mali and Sinai, even being intercepted off the Lebanese coast.


The Libyan government, such as it is, seems no closer to stamping its authority on the country, with Islamist brigades holding sway in the east, tribal unrest in the Sahara and militias engaged in turf wars. The danger is that Libya, a vast country where civic institutions were stifled for four decades, will become the incubator for a new generation of jihadists, able to spread their influence throughout the Sahel. They will have plenty of room and very little in the way of opposition from security forces.


The emergence of the Islamist group Ansar Dine in Mali is just one example. In this traditionally moderate Muslim country, Ansar's fighters and Tuareg rebels have ejected government forces from an area of northern Mali the size of Spain and begun implementing Sharia law, amputations and floggings included. Foreign fighters have begun arriving to join the latest front in global jihad; and terrorism analysts are seeing signs that al Qaeda in the Islamic Maghreb (AQIM) and groups like Boko Haram in Nigeria are beginning to work together.


There are plans for an international force to help Mali's depleted military take back the north, but one European envoy said it was unlikely to materialize before (wait for it) ... September 2013. Some terrorism analysts see North Africa as becoming the next destination of choice for international jihad, as brigades and camps sprout across a vast area of desert.


A bumpy troop transition for Afghanistan


The U.S. and its allies want to prevent Afghanistan from becoming another haven for terror groups. As the troop drawdown gathers pace, 2013 will be a critical year in standing up Afghan security forces (the numbers are there, their competence unproven), improving civil institutions and working toward a post-Karzai succession.



In November, the International Crisis Group said the outlook was far from assuring.


"Demonstrating at least will to ensure clean elections (in Afghanistan in 2014) could forge a degree of national consensus and boost popular confidence, but steps toward a stable transition must begin now to prevent a precipitous slide toward state collapse. Time is running out," the group said.


Critics have also voiced concerns that the publicly announced date of 2014 for withdrawing combat forces only lets the Taliban know how long they must hold out before taking on the Kabul government.


U.S. officials insist the word is "transitioning" rather than "withdrawal," but the shape and role of any military presence in 2014 and beyond are yet to be settled. Let's just say the United States continues to build up and integrate its special operations forces.


The other part of the puzzle is whether the 'good' Taliban can be coaxed into negotiations, and whether Pakistan, which has considerable influence over the Taliban leadership, will play honest broker.


Private meetings in Paris before Christmas that involved Taliban envoys and Afghan officials ended with positive vibes, with the Taliban suggesting they were open to working with other political groups and would not resist girls' education. There was also renewed discussion about opening a Taliban office in Qatar, but we've been here before. The Taliban are riven by internal dissent and may be talking the talk while allowing facts on the ground to work to their advantage.


Where will North Korea turn its focus?


On the subject of nuclear states that the U.S.-wishes-were-not, the succession in North Korea has provided no sign that the regime is ready to restrain its ambitious program to test nuclear devices and the means to deliver them.



Back in May 2012, Peter Brookes of the American Foreign Policy Council said that "North Korea is a wild card -- and a dangerous one at that." He predicted that the inexperienced Kim Jong Un would want to appear "large and in charge," for internal and external consumption. In December, Pyongyang launched a long-range ballistic missile -- one that South Korean scientists later said had the range to reach the U.S. West Coast. Unlike the failure of the previous missile launch in 2009, it managed to put a satellite into orbit.


The last two such launches have been followed by nuclear weapons tests -- in 2006 and 2009. Recent satellite images of the weapons test site analyzed by the group 38 North show continued activity there.


So the decision becomes a political one. Does Kim continue to appear "large and in charge" by ordering another test? Or have the extensive reshuffles and demotions of the past year already consolidated his position, allowing him to focus on the country's dire economic situation?


China-Japan island dispute to simmer


It's been a while since East Asia has thrown up multiple security challenges, but suddenly North Korea's missile and nuclear programs are not the only concern in the region. There's growing rancor between China and Japan over disputed islands in the East China Sea, which may be aggravated by the return to power in Japan of Shinzo Abe as prime minister.


Abe has long been concerned that Japan is vulnerable to China's growing power and its willingness to project that power. Throughout 2012, Japan and China were locked in a war of words over the Senkaku or Diaoyu islands, with fishing and Coast Guard boats deployed to support claims of sovereignty.


In the days before Japanese went to the polls, Beijing also sent a surveillance plane over the area, marking the first time since 1958, according to Japanese officials, that Bejing had intruded into "Japanese airspace." Japan scrambled F-15 jets in response.


The islands are uninhabited, but the seas around them may be rich in oil and gas. There is also a Falklands factor at play here. Not giving in to the other side is a matter of national pride. There's plenty of history between China and Japan -- not much of it good.


As China has built up its ability to project military power, Japan's navy has also expanded. Even a low-level incident could lead to an escalation. And as the islands are currently administered by Japan, the U.S. would have an obligation to help the Japanese defend them.


Few analysts expect conflict to erupt, and both sides have plenty to lose. For Japan, China is a critical market, but Japanese investment there has fallen sharply in the past year. Just one in a raft of problems for Abe. His prescription for dragging Japan out of its fourth recession since 2000 is a vast stimulus program to fund construction and other public works and a looser monetary policy.


The trouble is that Japan's debt is already about 240% of its GDP, a much higher ratio than even Greece. And Japan's banks hold a huge amount of that debt. Add a shrinking and aging population, and at some point the markets might decide that the yield on Japan's 10-year sovereign bond ought to be higher than the current 0.77%.


Economic uncertainty in U.S., growth in China


So the world's third-largest economy may not help much in reviving global growth, which in 2012 was an anemic 2.2%, according to United Nations data. The parts of Europe not mired in recession hover close to it, and growth in India and Brazil has weakened. Which leaves the U.S. and China.


At the time of writing, the White House and congressional leadership are still peering over the fiscal cliff. Should they lose their footing, the Congressional Budget Office expects the arbitrary spending cuts and tax increases to be triggered will push the economy into recession and send unemployment above 9%.



A stopgap measure, rather than a long-term foundation for reducing the federal deficit, looks politically more likely. But to companies looking for predictable economic policy, it may not be enough to unlock billions in investment. Why spend heavily if there's a recession around the corner, or if another fight looms over raising the federal debt ceiling?


In September, Moody's said it would downgrade the U.S. sovereign rating from its "AAA" rating without "specific policies that produce a stabilization and then downward trend in the ratio of federal debt to GDP over the medium term." In other words, it wants action beyond kicking the proverbial can.


Should the cliff be dodged, most forecasts see the U.S. economy expanding by about 2% in 2013. That's not enough to make up for stagnation elsewhere, so a great deal depends on China avoiding the proverbial hard landing.


Until now, Chinese growth has been powered by exports and infrastructure spending, but there are signs that China's maturing middle class is also becoming an economic force to be reckoned with. Consultants PwC expect retail sales in China to increase by 10.5% next year -- with China overtaking the U.S. as the world's largest retail market by 2016.


Europe's economic outlook a little better


No one expects Europe to become an economic powerhouse in 2013, but at least the horizon looks a little less dark than it did a year ago. The "PIGS' " (Portugal, Ireland/Italy, Greece, Spain) borrowing costs have eased; there is at least rhetorical progress toward a new economic and fiscal union; and the European Central Bank has talked tough on defending the Eurozone.


Mario Draghi, president of the European Central Bank, fended off the dragons with the declaration in July that "Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough."



Draghi has promised the bank has unlimited liquidity to buy sovereign debt, as long as governments (most likely Spain) submit to reforms designed to balance their budgets. But in 2013, the markets will want more than brave talk, including real progress toward banking and fiscal union that will leave behind what Draghi likes to call Europe's "fairy world" of unsustainable debt and collapsing banks. Nothing can be done without the say-so of German Chancellor Angela Merkel, renowned for a step-by-step approach that's likely to be even more cautious in a year when she faces re-election.


Elections in Italy in February may be more important -- pitching technocrat Prime Minister Mario Monti against the maverick he replaced, 76-year old Silvio Berlusconi. After the collapse of Berlusconi's coalition 13 months ago, Monti reined in spending, raised the retirement age and raised taxes to bring Italy back from the brink of insolvency. Now he will lead a coalition of centrist parties into the election. But polls suggest that Italians are tired of Monti's austerity program, and Berlusconi plans a populist campaign against the man he calls "Germano-centric."


The other tripwire in Europe may be Greece. More cuts in spending -- required to qualify for an EU/IMF bailout -- are likely to deepen an already savage recession, threatening more social unrest and the future of a fragile coalition. A 'Grexit' from the eurozone is still possible, and that's according to the Greek finance minister, Yannis Stournaras.


Expect to see more evidence of climate change


Hurricane Sandy, which struck the U.S. East Coast in November, was the latest indicator of changing and more severe weather patterns. Even if not repeated in 2013, extreme weather is beginning to have an effect -- on where people live, on politicians and on the insurance industry.


After Sandy, New York Gov. Andrew Cuomo said that after "the last few years, I don't think anyone can sit back anymore and say, 'Well, I'm shocked at that weather pattern.' " The storm of the century has become the storm of every decade or so, said Michael Oppenheimer, professor of geosciences at Princeton.


"Climate change will probably increase storm intensity and size simultaneously, resulting in a significant intensification of storm surges," he and colleagues wrote in Nature.


In the U.S., government exposure to storm-related losses in coastal states has risen more than 15-fold since 1990, to $885 billion in 2011, according to the Insurance Information Institute. The Munich RE insurance group says North America has seen higher losses from extreme weather than any other part of the world in recent decades.


"A main loss driver is the concentration of people and assets on the coast combined with high and possibly growing vulnerabilities," it says.


Risk Management Solutions, which models catastrophic risks, recently updated its scenarios, anticipating an increase of 40% in insurance losses on the Gulf Coast, Florida and the Southeast over the next five years, and 25% to 30% for the mid-Atlantic and Northeastern states. Those calculations were done before Sandy.



Inland, eyes will be trained on the heavens for signs of rain -- after the worst drought in 50 years across the Midwest. Climatologists say that extended periods of drought -- from the U.S. Midwest to Ukraine -- may be "the new normal." Jennifer Francis at the Institute of Marine and Coastal Sciences at Rutgers University has shown that a warmer Arctic tends to slow the jet stream, causing it to meander and, in turn, prolong weather patterns. It's called Arctic amplification, and it is probably aggravating drought in the Northwest United States and leading to warmer summers in the Northern Hemisphere, where 2012 was the hottest year on record.


It is a double-edged sword: Warmer temperatures may make it possible to begin cultivating in places like Siberia, but drier weather in traditional breadbaskets would be very disruptive. The U.N. Food and Agriculture Organization reports that stocks of key cereals have tightened, contributing to volatile world markets. Poor weather in Argentina, the world's second-largest exporter of corn, may compound the problem.


More cyber warfare


What will be the 2013 equivalents of Flame, Gauss and Shamoon? They were some of the most damaging computer viruses of 2012. The size and versatility of Flame was unlike nothing seen before, according to anti-virus firm Kaspersky Lab.



Gauss stole online banking information in the Middle East. Then came Shamoon, a virus that wiped the hard drives of about 30,000 computers at the Saudi oil company Aramco, making them useless. The Saudi government declared it an attack on the country's economy; debate continues on whether it was state-sponsored.


Kaspersky predicts that in 2013, we will see "new examples of cyber-warfare operations, increasing targeted attacks on businesses and new, sophisticated mobile threats."


Computer security firm McAfee also expects more malware to be developed to attack mobile devices and apps in 2013.


U.S. Defense Secretary Leon Panetta is more concerned about highly sophisticated attacks on infrastructure that "could be as destructive as the terrorist attack on 9/11."


"We know that foreign cyber actors are probing America's critical infrastructure networks. They are targeting the computer control systems that operate chemical, electricity and water plants and those that guide transportation throughout this country," he said in October.


Intellectual property can be stolen, bought or demanded as a quid pro quo for market access. The U.S. intelligence community believes China or Chinese interests are employing all three methods in an effort to close the technology gap.


In the waning days of 2012, the interagency Committee on Foreign Investment in the United States said "there is likely a coordinated strategy among one or more foreign governments or companies to acquire U.S. companies involved in research, development, or production of critical technologies."


It did not name the country in its unclassified report but separately noted a growing number of attempts by Chinese entities to buy U.S. companies.


Who will be soccer's next 'perfect machine'?



There's room for two less serious challenges in 2013. One is whether any football team, in Spain or beyond, can beat Barcelona and its inspirational goal machine Lionel Messi, who demolished a record that had stood since 1972 for the number of goals scored in a calendar year. (Before Glasgow Celtic fans start complaining, let's acknowledge their famous win against the Spanish champions in November.)


Despite the ill health of club coach Tito Vilanova, "Barca" sits imperiously at the top of La Liga in Spain and is the favorite to win the world's most prestigious club trophy, the European Champions League, in 2013. AC Milan is its next opponent in a match-up that pits two of Europe's most storied clubs against each other. But as Milan sporting director Umberto Gandini acknowledges, "We face a perfect machine."


Will Gangnam give it up to something sillier?



Finally, can something -- anything -- displace Gangnam Style as the most watched video in YouTube's short history? As of 2:16 p.m. ET on December 26, it had garnered 1,054,969,395 views and an even more alarming 6,351,871 "likes."


Perhaps in 2013 the YouTube audience will be entranced by squirrels playing table tennis, an octopus that spins plates or Cistercian nuns dancing the Macarena. Or maybe Gangnam will get to 2 billion with a duet with Justin Bieber.







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Fiscal cliff bill moves to House, timing and outcome uncertain










WASHINGTON (Reuters) - Washington's last-minute scramble to step back from a recession-inducing "fiscal cliff" shifted to the Republican-controlled House of Representatives on Tuesday after the Senate approved a bipartisan deal to avoid steep tax hikes and spending cuts.

In a rare late-night show of unity, the Senate voted 89 to 8 to raise some taxes on the wealthy while keeping income taxes low on more moderate earners.

The bill's prospects were less certain in the House, where a vote had not yet been scheduled.

Republicans, unhappy that the bill contained over $600 billion in tax increases but only around $12 billion in spending cuts, said they may change it more to their liking and send it back to the Senate. Party leaders planned to take the temperature of rank-and-file lawmakers over the afternoon before deciding on a course of action.

"My recommendation would be not to take a package put together by a bunch of sleep-deprived octogenarians on New Year's Eve," said Representative Steve LaTourette, a moderate Republican from Ohio who is a close ally of House Speaker John Boehner.

Republicans could face a backlash if they scuttle the deal. Income tax rates technically rose back to 1990s levels for all Americans at midnight, and public opinion polls show Republicans would shoulder the blame if Congress fails to act.

Many conservative Republicans have rejected tax increases on any Americans, no matter how wealthy. Some liberal Democrats were also upset with the complex deal, which they thought gave away too much.

Lingering uncertainty over U.S. tax and spending policy has unnerved investors and depressed business activity for months, and lawmakers had hoped to reach a deal before Tuesday, when a broad range of automatic tax increases and spending cuts would begin to punch a $600 billion hole in the economy.

Financial markets have avoided a steep plunge on the assumption that Washington would ultimately avoid pushing the country off the fiscal cliff into a recession.

With financial markets closed for the New Year's Day holiday, lawmakers have one more day to close the deal.

"My district cannot afford to wait a few days and have the stock market go down 300 points tomorrow if we don't get together and do something," Representative Steve Cohen, a Democrat from Tennessee, said on the House floor.

LATE-NIGHT DRAMA

The bill passed by the Senate at around 2 a.m. would raise income taxes on families earning more than $450,000 per year and limit the amount of deductions they can take to lower their tax bill.

Low temporary rates that have been in place for less affluent taxpayers for the past decade would be made permanent, along with a range of targeted tax breaks put in place by President Barack Obama in the depths of the 2009 recession.

However, workers would see up to $2,000 more taken out of their paychecks annually as a temporary payroll tax cut was set to expire.

The bill would also delay an across-the-board spending cut in domestic and military programs for two months, and extend jobless benefits for 2 million long-term unemployed people who otherwise would see them run out.

The bill would raise taxes on less than 1 percent of the population, according to the nonpartisan Tax Policy Center.

However, that may be too much for conservative Republicans in the House, who last month scuttled an effort by Boehner to limit tax increases to those who earn more than $1 million. He has faced insurrections from his conservative wing in other budget showdowns over the past two years.

Republicans had hoped to include significant spending cuts in the deal to narrow trillion-dollar budget deficits. Conservatives were already looking forward to the next battle over the debt ceiling, in late February, to extract deficit reduction measures from the Democratic president.

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