Police were in dark over foreign axe killer living in UK

 

COPS did not know an East European axe murderer was living in the UK until he caused a killer car crash, a court heard yesterday. Intars Pless, 34, hacked through a friend's throat in his native Latvia, then moved to Britain after he got out of jail. But Lincoln Crown Court heard police can only check a foreign national's record if they break the law here. So Pless's horrific crime came to light only after he drove into moped rider Valentina Planciunene, 37, while over twice the limit. Stuart Lody, prosecuting, told the court: "On the night of Valentine's Day he decided it would be a perfectly good idea to drink a very large quantity of whisky. Surprised "He and a friend spent a considerable period of time drinking whisky and driving around. "During the driving he was possibly drinking whisky as well. An empty whisky bottle was found in the boot of the car. "At the time of the collision he was heavily under the influence of alcohol. His ability to drive would have been severely impaired." Pless was convicted of causing death by dangerous driving after the jury heard he left her dead in the road in Wyberton Fen, Lincs. He was told he faces a long jail term. The judge also called for his deportation.

UK press in dock over phone-hacking, lawyer says

 

Britain's entire press stands in the dock at an inquiry into media standards, said a lawyer representing victims of press intrusion and phone-hacking by Rupert Murdoch's News of the World. David Sherborne, who is representing 51 "core participants" at an inquiry set up as the hacking scandal engulfed News Corp's British arm, said Wednesday that "tawdry" tabloids were guilty of blackmail, bribery and vilification. He said his clients had endured lies, harassment and other "despicable" actions from the press and that phone-hacking might only be the tip of the iceberg. "It is the whole of the press, and in particular the tabloid section of it, which we say stands in the dock," he said. "It is time we had change and by that I mean real change." The Leveson inquiry, due to last a year, will make recommendations which could have a huge impact on the industry and lead to tighter regulation and, at the least, an overhaul of the current system of self-regulation. Lawyers for Britain's major newspaper groups have already pleaded for the essence of that system to remain and said that if anything, the press needed more freedoms. But in a scathing and detailed attack on newspapers, particularly the notoriously aggressive tabloid press, Sherborne said: "We are here not just because of the shameful revelations which have come out of the hacking scandal, but also because there has been a serious breakdown of trust in the important relationship between the press and the public." "The press is a powerful body. They have a common interest and a self-serving agenda," he told the inquiry. Sherborne said revelations that a private detective, jailed for phone-hacking in 2007 along with the News of the World's former royal reporter, had carried out more than 2,000 tasks for the paper suggested that there were about 10 stories in the tabloid every week from the illegal practice. He listed details of some of those who had been targeted, starting with the parents of Milly Dowler, a missing schoolgirl who was later found murdered. It was the revelation that her phone had been hacked while she was missing that changed attitudes to the issue. Within days, News Corp withdrew its bid to buy the 61 percent of broadcaster BSkyB it did not already own and its British newspaper arm News International closed down the 168-year-old News of the World. It also prompted Prime Minister David Cameron to order the inquiry.

Brussels is stifling City of London, Cameron claims

 

David Cameron signalled new European battles ahead as he pledged to resist alleged attempts by Brussels to shackle the City of London in red tape. The Prime Minister echoed claims that the emergence of a two-tier Europe following the financial crisis could result in a wave of EU directives that would harm the Square Mile. The Government has said it is determined to prevent the 17 members of the eurozone acting as a bloc to thwart the interests of the 10 EU states, including Britain, that have retained their own currencies.

Ruth Madoff reveals suicide pact after £40bn fraud

 

Come what may, Mrs Madoff is still managing to keep up appearances. But behind her designer outfit and reassuringly expensive haircut, she's anxious to remind the world that life as the spouse of a $65bn (£40bn) conman isn't always plain sailing. In her first interview since her husband Bernie oversaw the collapse of the family investment house almost two years ago, Ruth revealed the couple attempted suicide in the immediate aftermath of his arrest. It was the night before Christmas 2008. The Madoffs, once the toast of New York society, were confined to their Manhattan penthouse, coming to terms with the fact that his Ponzi scheme had wiped out the life savings of several thousand investors, including many close friends and family members. "I don't know whose idea it was, but we were both so saddened by everything that had happened that we decided to kill ourselves," she recalled. "It was so horrendous what was happening. Terrible phone calls, hate mail – just beyond anything. And I said, 'I just can't go on any more'." They decided to overdose on the sedative Ambien. But they apparently under-estimated the amount needed and found themselves still alive to face the music on Christmas Day. "We were both in agreement," she told CBS's 60 Minutes – which will air interviews with her and her son Andrew on Sunday. "I don't remember what we said very much. We were figuring out how many pills to take. "I think we were both sort of relieved to leave this place. It was very, very impulsive, is all I can say. And I was glad to wake up the next morning." The show will tell how the family learnt of their sudden elevation to global pariah status and explain what they have been doing since. Mrs Madoff, 68, met her husband, now 73, when she was 14 and married him two years later. At the height of their powers she kept an office at the headquarters of the family investment firm and was listed as a director of several companies he controlled. She has always maintained she had no idea the firm was overstating profits and defrauding investors. After his arrest she struck a deal with prosecutors that saw her give up all her assets except for $2.5 million. Many of Madoff's victims angrily insisted she should have been left with nothing. Shortly after the deal was announced, The New York Times dubbed her "the loneliest woman in New York". She later left the city to live in Florida. Judging by CBS interview footage released yesterday, the months since have been tough on a woman who was once the toast of Manhattan. She has retained her petite figure, well-groomed blonde hair and elegant dress sense but has aged considerably. Although she admits being initially supportive of her husband, visiting him in prison, she says she decided to break off contact last December. That was when their second son, Mark, 46, hanged himself on the anniversary of his father's arrest using a dog leash. It remains to be seen whether the TV interview will repair her tattered reputation. People who believe she helped cover up her husband's fraud now suspect her claim about their joint suicide bid was invented to win sympathy. Their former bodyguard Nick Casale, who was with them that Christmas Eve, cast doubt on the story yesterday. Bernie has also granted a first interview, it emerged last night. He spoke to the veteran TV interviewer Barbara Walters at the prison in North Carolina where he is currently serving a 150-year sentence for fraud. No cameras were allowed but a transcript suggests he expressed remorse for his crimes and understands why people think he "robbed widows and orphans". But he insisted: "I made wealthy people wealthier." And on life behind bars, he added: "Ruth not communicating is the hardest thing... Ruth doesn't hate me. She has no one. It's not fair to her. She lost her first so. She's a devoted wife and didn't care about the money."

Libya: Col Gaddafi buried at dawn

 

Officials said earlier that the ousted Libyan leader would be buried in a secret desert grave, ending a wrangle over his rotting corpse that led many to fear for the country's governability. Transitional government forces had put the body on show in a cold store in Misurata while they argued over what to do with it, until its decay forced them on Monday to end the display. His son Mutassim is thought to have been buried in the same ceremony. A few relatives and officials were in attendance, according to a Misurata military council official. Yesterday, the government bowed to international pressure and announced a commission to determine how Gaddafi died after he was cornered in a drain while trying to flee Sirte, his besieged home town. Mustafa Abdul Jalil, the chairman of the NTC, and other officials have said Gaddafi was killed in crossfire. Mr Jalil said: "In response to international calls, we have started to put in place a commission tasked with investigating the circumstances of Muammar Gaddafi's death in the clash with his circle as he was being captured."

Pop legend Madonna today told a court of her 'alarm and distress' after a delusional fan, who believes the star loves him, broke into her £10million London home and rifled through her bedding.

Grzegorz Matlok, 30, burgled a mews house linked to the singer's luxury townhouse in Marylebone, central London, and stole a can of Red Bull after wandering through two bedrooms and a living room.

Southwark Crown Court heard Matlok was discovered holding the drink and playing with a kitchen light switch at around 4.40am on March 12 by Madonna's former gardener-turned film director Nathan Rissman, 39, who was staying in the mews at the time.

When he was quizzed over what he was doing and told Madonna was not staying there, he said: 'I'm sorry. Arrest me, arrest me'.

He later told police he had been given permission by the singer and had found a welcome note from her.

A map with a large 'M' scrawled over Madonna's home and a bag containing a safety knife, nail scissors, a coach ticket from Poland and Matlok's passport were found in a bag outside the property.

A year ago Matlok sneaked into the Wiltshire estate Madonna used to share with ex-husband Ritchie and was caught putting on his clothes.  

The 'Music' star was heard to be 'distressed and unsettled' by Matlok's two successful break-ins and said she feared for the safety of herself, her four children and her staff.

Prosecutor Philip Stott said: 'It appears that the defendant took a route, by examination of the lights he had turned on, through the lounge and kitchen and into a bedroom and dressing area and then gone through an inter connecting door where again he had gone into a bedroom and dressing room, where he disturbed some bed clothes.'

 

 

Matlok had broken into the house after smashing a window with a stone and using a rope and scaffolding to enter one of the three properties by a first floor window.

The court heard he had travelled to England from Poland by coach a few days before the burglary on March 12.

Mr Stott said that in interview Matlok told Madonna's security manager he was there 'To see Madonna' and afterwards told police she had okayed his visit.

Country house: A year ago Matlok sneaked into the Wiltshire estate (pictured) Madonna used to share with ex-husband Guy Ritchie

'He told the police he had permission to stay in the flat and that Madonna knew he was coming,' said the barrister.

'He said he had found a note saying welcome and he went inside.

'He said he had been at the address two or three days earlier, but no one had answered the doorbell.

'He said he was not there to steal anything - he said he had sent messages to Madonna over the internet to say he was going to turn up.' 

In a victim impact statement read to the court Madonna said: 'I do not know the defendant, I've not had any form of relationship with the defendant nor have I had any form of contact by phone or by email, or by any other way, with the defendant.

'In particular I've never given the defendant permission to enter the premises or any of my other premises.

'I feel very alarmed and distressed by the actions of the defendant.

When Matlok broke into Wiltshire home, he was restrained by Guy Ritchie (pictured)

'It is extremely unsettling to know that despite the extensive security I have he has been able to break into two of my residential properties.

'I'm worried about my children's safety as well as the safety of my staff. I'm also naturally worried about my own safety.' 

The court heard that Matlok suffered from 'delusions that Madonna loved him' but, according to consultant psychiatrist Dr Nadji Kahtan, his schizophrenia could be controlled by medication.

'In hospital he's fully compliant and has expressed no wish to stop taking it [his medication] and he says he wishes to still take it because he recognises that he has a mental illness,' he said.

'We feel that the best way to manage his illness is for him to continue to be treated at a hospital in England until he can be moved to a hospital in Poland.' 

The court heard however that Matlok had attacked someone in his cell and had been 'rather aggressive' to women, including nurses.

When Matlok broke into the Wiltshire home of Guy Ritchie he was found by a housekeeper cowering under the bed of an 'outhouse'.

Mr Stott said he had to be restrained by Mr Ritchie, a gamekeeper and 'The Football Factory' director Nick Love.

'He had taken cash from Mr Ritchie and Mr Love and had put on a pair of Mr Ritchie's jeans,' he said.

Batteries, a torch, a bottle of shampoo and three credit cards had also been moved, according to Mr Ritchie, but no further action was taken and Matlok was deported in August 2010.

In June Matlok reportedly attempted suicide by setting fire to his cell and was said to have been dragged to safety by prison guards.

Madonna, 53, was not in the property at the time, having taken her four children - Lourdes, 14, Rocco, 10, Mercy, 6, and David, 5 -  to Michigan in the U.S. to pay her respects to her late grandmother Elsie Mae Fortin.

Southwark Crown Court heard Matlok was discovered holding the drink and playing with a kitchen light switch at around 4.40am on March 12

The Pole, who is being held at a secure psychiatric unit, was flanked by hospital staff and assisted by an interpreter at Southwark Crown Court today.

Matlok has admitted burgling the office in Marylebone but denied two charges of burglary relating to a house connected to it, both of which are owned by 'Madonna Ciccone'.

The two charges he denied were ordered to lie on the court file after prosecutors accepted Matlok's plea.

The burglary took place six months after Madonna was targeted by a man who was arrested outside her New York apartment carrying two knives.

Judge Deborah Taylor was expected to order Matlok's detention under the Mental Health Act, 1983, this afternoon.

Knight Frank partners share £73m bonus pool

 

PARTNERS in the upmarket estate agent Knight Frank have landed a £73m payout after profits rose by 10 per cent in the last financial year, buoyed by foreign investors flocking to London’s luxury property market. The firm, which advises on both residential and commercial property deals, saw pre-tax profits rise to £101.9m in the year to March – its highest level since the credit crisis – while turnover increased seven per cent to £308.4m. “Equity rich buyers” seeking property in London helped boost the firm’s residential arm, which has instructed on deals including the sale of St John’s Wood Barracks in northwest London. The bonus pool is more than double the amount awarded in 2009, although it is now shared by more people as Knight Frank has extended its partnership. Nick Thomlinson, senior partner and chairman of Knight Frank, conceded he remained cautious about the outlook for the year ahead but said the group had strengthened its balance sheet and was focusing on growth in key markets like Asia. The firm also opened new offices in Dubai, South Africa, Austria and Switzerland.

The slain Libyan leader Moamer Kadhafi secretly spirited out of Libya and invested overseas more than $200 billion

 

The slain Libyan leader Moamer Kadhafi secretly spirited out of Libya and invested overseas more than $200 billion -- double the amount that Western governments previously had suspected, The Los Angeles Times reported late Friday. Citing unnamed senior Libyan officials, the newspaper said US administration officials were stunned last spring when they found $37 billion in Libyan regime accounts and investments in the United States. They quickly froze the assets before Kadhafi or his aides could move them, the report said. Governments in France, Italy, England and Germany seized control of another $30 billion or so. Earlier, investigators estimated that Kadhafi had stashed perhaps another $30 billion elsewhere in the world, for a total of about $100 billion, the paper noted. But subsequent investigations by US, European and Libyan authorities determined that Kadhafi secretly sent tens of billions more abroad over the years and made sometimes lucrative investments in nearly every major country, including much of the Middle East and Southeast Asia, The Times said. Most of the money was under the name of government institutions such as the Central Bank of Libya, the Libyan Investment Authority, the Libyan Foreign Bank, the Libyan National Oil Corporation and the Libya African Investment Portfolio, the paper pointed out. But investigators said Kadhafi and his family members could access any of the money if they chose to, the report said. The new $200 billion figure is about double the prewar annual economic output of Libya, The Times noted. Kadhafi, who lorded over the oil-rich North African nation for 42 years, met a violent end on Thursday after a NATO air attack hit a convoy, in which he was trying to escape from his hometown of Sirte. He survived the air strike but was apparently captured and killed after a shootout between his supporters and new regime fighters.

Banks Raided in EU Antitrust Probe Over Euribor Derivatives

 

European Union regulators raided banks that offer financial derivatives linked to the Euro Interbank Offered Rate, saying they were investigating possible collusion. The European Commission said it had “concerns that the companies concerned may have violated EU antitrust rules that prohibit cartels and restrictive business practices.” It didn't name the businesses involved. The EU probe adds to earlier inquiries by the commission, U.K. and U.S. financial regulators into the possible breach of rules governing the Libor benchmark borrowing rate. Barclays Plc, HSBC Holdings Plc and Royal Bank of Scotland Group Plc have said they were quizzed by the EU earlier this year. Joaquin Almunia, the EU's competition commissioner, has made financial markets one of his priorities and said last month that they required “really close scrutiny.” In April, he started a separate probe into Goldman Sachs Group Inc., JPMorgan Chase & Co. and 14 other investment banks over agreements in the market for credit-default swaps that may harm competition. “All the products we are talking about belong to the category of interest rate derivatives in euros,” said Amelia Torres, a spokeswoman for the commission. ‘A Few' Raided Banks including Deutsche Bank AG and RBS were visited by EU officials yesterday, according to two people familiar with the probe. Deutsche Bank, RBS, UBS AG, Barclays, HSBC, BNP Paribas SA declined to comment today. Cedric Quemener, the manager at Euribor-EBF responsible for setting the euro interbank lending rate, said only “a few” of the 44 banks involved in Euribor were visited by EU officials yesterday. He said it would be “almost impossible” to manipulate the rate. “You would need to have an agreement between so many different banks from so many different countries that there's no way someone could do that,” Quemener said in a telephone interview from Brussels. “We have high monitoring and very clear transparency in the way we are defining Euribor.” Libor and Euribor rates are used as benchmarks for trillions of dollars worth of financial products ranging from mortgages to student loans. The EU probe may include how derivatives contracts between banks could give them an incentive to manage the Euribor rate. “Keeping funding costs down by some untoward activity, you are able to fund derivatives activity more cheaply and so boost margins,” said Richard Reid, director of research for the International Centre for Financial Regulation, who isn't involved in the investigation. Special Agreements There are “a lot of special agreements between financial institutions to share information, also for commercial use to increase revenues,” said Diego Valiante, a research fellow at the European Capital Markets Institute in Brussels. Antitrust regulators are “trying to understand if these special agreements are forbidding new players to enter the market,” Valiante said. Several of the banks involved in Libor, including Banco Bilbao Vizcaya Argentaria SA, Nordea Bank AB and Natixis SA, said they weren't involved in the latest probe. “We have nothing to hide,” Guido Ravoet, chief executive officer the European Banking Federation and member of the steering committee of Euribor-EBF said in an e-mailed statement. “We feel there is perhaps not enough understanding of the elaboration of the benchmarks themselves in the European Commission.” The Wall Street Journal reported the EU raids yesterday.  

RBS staff told to pay for their own Christmas party

 

Another day, another downgrade. Reduced to surviving on two pints of lager and pack of crisps at recent Christmas parties, misery was heaped on Royal Bank of Scotland's highly-paid investment bankers on Friday as they were told that they would have to fund this year's bash entirely out of their own pocket.

HMRC clamps down on Swiss account holders

 

6,000 Britons who hold money in the Swiss arm of HSBC will soon receive a letter telling them that they need to own up to unpaid tax. The bank is acting on information received last year under a tax treaty. This revealed that more than 6,000 individuals, companies, trusts and other bodies held accounts and investments with HSBC Geneva. HMRC has already begun criminal and serious fraud investigations into more than 500 individuals and organisations holding these accounts. HMRC will shortly be writing to those who have not yet come forward, or are not under investigation. They will be offered a chance to contact HMRC and disclose all their tax liabilities, HMRC said. Fines of up to 200 per cent of any tax may, in certain circumstances, be imposed on people not coming forwards during this window for disclosure. "This is not an amnesty. There are no special rates of penalty or interest for those who come forward voluntarily," said HMRC's Dave Hartnett. "This is an opportunity for those who have made errors in past returns to correct them. The net is closing on offshore evaders. Don't wait for HMRC to contact you."

Rich Brits plot escape to France

 

 wealthy Britons are planning to flee what they believe to be an over-taxed and crime-ridden UK, with France the most favoured destination, according to a survey published by British bank Lloyds TSB. The survey, published on Monday, found that 17 percent of those with more than £250,000 ($391,025) in savings and investments wanted to move abroad in the next two years, up from 14 percent six months earlier. The most popular destination for the rich exiles was France (21 percent), followed by Spain (15 percent) and the US (11 percent).  Three-quarters of those questioned (73 percent) thought that crime was a bigger problem in Britain than other developed countries. "Sadly, it seems August's riots, tax increases and a rising cost of living have cast a pall over life in the UK for some wealthy people," said Nicholas Boys-Smith, managing director of Lloyds TSB International Wealth in a statement. "It may reignite fears of a 'wealth drain' from our economy as rich people seek pastures new," he said. 42 percent of those questioned named tax as a reason for leaving, up from 35 percent six months ago. Cost of living was a factor for 52 percent, up from 31 percent. Research in January 2011 suggested that 4.6 percent of the UK population have over £250,000 in savings and investments, which equals around 2.8 million people.

A poorly designed, over-extended and ill-disciplined monetary union is in danger of falling apart

Illustration by Matt Kenyon

What if it falls apart? For all my adult life, I have been what in England is called a pro-European or Europhile. For most of that time, European history has been going our way. Now it may be on the turn. Soon, it could be heading the Eurosceptics' way. What then?

Over the last half-century, the institutional organisation of Europe has progressed from a common market of six west European states to a broader and deeper union of 500 million individual Europeans and 27 countries, from Portugal to Estonia and Finland to Greece; 17 of them share a single currency, the euro. There are no border controls between 25 European countries in the Schengen area. Enveloping it all is the fragile skin of the European convention on human rights (now under facile attack from some British Conservatives) which allows any individual resident of no less than 47 countries, including Russia, to contest a violation of their inalienable human rights all the way to a European court of human rights in Strasbourg.

Never has Europe been so united as this. Never have more of its people been more free. Never before have most European countries been democracies, joined as equal members in the same economic, political and security community. Our continent still has a grotesque amount of poverty, injustice, intolerance and outright persecution. (Try living as a Roma or Sinti in eastern Europe for a taste of all that.) I prettify nothing. But – to adapt a famous remark about democracy by that great pro-European British conservative, Winston Churchill – I do say that this is the worst possible Europe, apart from all the other Europes that have been tried from time to time.

Now all this is under threat. A poorly designed, over-extended and ill-disciplined monetary union is in danger of falling apart, bringing bitter recriminations and lasting divisions. More fundamentally, the past emotional motivators and political engines of European unification are no longer there. The peoples of Germany, the Netherlands and other core countries of the European Union are loth to take steps of further integration which many of the creators of monetary union thought would be necessary to sustain it.

I blame politicians like Angela Merkel for not showing more leadership in this respect, but such leadership would involve a heroic, uphill struggle to persuade reluctant publics in what are still (contrary to what Eurosceptics claim) largely sovereign national democracies. If these were not sovereign national democracies, the whole financial world – from Washington to Beijing – would not this week have been waiting with bated breath on the vote of one small party in the parliament of Slovakia.

I note in passing that many of the current difficulties of the eurozone were predicted back in the 1990s, and I was a sceptic about monetary union at that time. This is what I wrote in 1998: "The rationalist, functionalist, perfectionist attempt to 'make Europe' or 'complete Europe' through a hard core built around a rapid monetary union could well end up achieving the opposite of the desired effect. One can all too plausibly argue that what we are likely to witness in the next five to 10 years is the writing of another entry for [Arnold] Toynbee's index [to his A Study of History], under 'Europe, unification of, failure of attempts at'." But I am not now going to hide behind that testament to my own earlier scepticism about one element of a larger project.

As a pro-European, I stand by the whole project, warts and all. I recently contributed to an appeal – which you too can sign – arguing that the eurozone can only be saved by further fiscal integration and a strategy for growth. Remarkably, even the Eurosceptic prime minister David Cameron recently told the Financial Times that Germany and France need to fire a "big bazooka" to convince financial markets and hence preserve the eurozone. That is a bit like the Duke of Wellington wishing Napoleon success in consolidating his continental empire – but extraordinary times do produce such delicious moments.

Beyond this, however, I'm not going to add a single word to the 537 newspaper columns you have already read explaining how the eurozone must and can, or must not and can not, be saved. You decide which economic commentator you believe.

Instead, I want to ask what happens if the eurozone does fail, one way or another – and that failure begins a much larger process of gradual disintegration. Suppose that the EU in 2030 has become something like the Holy Roman Empire in, say, 1730: still extant on paper, but more origami than political reality. What then?

For us pro-Europeans, what happens then will be, first of all, a paradoxical kind of liberation. Rather like the supporters of a long-term incumbent government, for decades now we have felt some obligation to defend the existing state of affairs, with all its obvious flaws. Eurosceptics, by contrast, have enjoyed the glorious irresponsibility of opposition – and, heaven knows, the Brussels institutions furnish endless easy targets for the sceptic and the satirist.

Now the boot will be on the other foot. For a few years, like an incoming government, Eurosceptics will be able to blame current problems on the preceding regime (overhasty monetary union led to German-Greek loathing, etc), but that only lasts so long. Sooner or later it will become clear that it is their kind of Europe we are living in, not mine.

More German travelers have been using foreign airports since a flight tax was imposed early this year.

 

 

Consider two small airports in the middle or Europe. At Maastricht Aachen Airport, business is booming thanks to an influx of German passengers who are fleeing a national aviation tax introduced on January 1, 2011. Meanwhile, just 80 kilometers across the border, Germany's Weeze Airport has been steadily losing customers.

A few years ago, things were exactly the opposite. The Netherlands had its own, yearlong experiment with an aviation tax, but revoked it in July 2009 after it saw Dutch hubs like Maastricht Aachen Airport lose passengers to rivals in neighboring countries, including Germany.

The levy cost Dutch airports, airlines, and related businesses between 1.2 and 1.3 million euros in lost revenue, according to a study by Amsterdam Aviation Economics, a research institute affiliated with the University of Amsterdam.

Hans van Mierlo, a professor of public finance at the University of Maastricht, said the abundance of transportation options in Europe means travelers can and will seek out alternatives whenever one country unilaterally imposes an air passenger tax.

"The [Dutch] crowd went to Germany; now the German crowd comes to us," he told Deutsche Welle. "I am surprised that the German government didn't learn from the Dutch failure."

Maastricht-Aachen Airport may be small, but traffic is growing rapidlyHefty rates

The German aviation tax runs at a rate of eight euros per one-way flight within Europe, 25 euros for medium-haul services to the Middle East and Sub-Saharan Africa, and 45 euros for long-haul flights. The tariff only applies to flights originating in Germany. The German Finance Ministry reported the duty raised 434 million euros in revenues in the first half of 2011.

However, for travelers, the tax can double the total cost of a bargain ticket. That has driven Irish budget carrier Ryanair to cancel some of its services from Weeze Airport and add flights at Maastricht. Meanwhile, rival airline Germanwings has launched a service linking Maastricht to Berlin 12 times per week.

Those moves helped drive Maastricht Aachen Airport's whopping 70 percent increase in passengers so far this year. That is quite a comeback from the time of the Dutch aviation tax, when it lost 25 percent of its customers.

Maastricht's airport has new routes to Bucharest, Tenerife, and other spotsAmong the new clientele is Ne Pham from Jülich, Germany. She told Deutsche Welle that she used to fly out of Cologne or Dusseldorf to destinations like Italy, the United States and her native Vietnam.

"It's cheaper to fly from [Maastricht] than from Germany," she said. "It's easy to find, has lots of parking spaces, and a very fast check-in. It's small but nice."

Maastricht makeover

To accommodate new passengers, Maastricht Aachen Airport has renovated its main waiting area and sole restaurant. A new bus line runs from Cologne directly to the Dutch airport, where travelers are greeted by a row of flags from seven European countries. Airport staff members are required to speak German and English in addition to Dutch, and a number of them speak French as well.

Marion Schramm and her husband, from Geilenkirchen, Germany, echoed Pham's reasons for choosing Maastricht Aachen Airport. But they were not as impressed by the small airport's recent makeover.

"It's obviously dinky," Marion Schramm told Deutsche Welle, "You see everything right away. But it's a lot cheaper than Germany at the moment."

Customers have mixed reviews for the small Dutch airport's facilities

Weeze's woes

The German Airport Association, which represents German air hubs, has called for an immediate end to the national flight tax. It reported a tepid growth rate of 3.2 percent at airports throughout the country this July, compared with the same month last year.

Weeze Airport, near Dusseldorf, had 22.8 percent fewer customers in the same time period. Ludger van Bebber, the airport's managing director, said many of the hub's clients used to come from the Netherlands.

"The aviation tax destroys the level playing field for us," he told Deutsche Welle. "That is the main issue we have here at Weeze."

Meanwhile, Berlin's two hubs are seeing travelers hop across the border to nearby Polish airports. And people in Munich do not have to drive far to reach a number of alternative airports in Austria and the Czech Republic.

The chairman of the Maastricht airport's board is planning for growth to continueDutch chairman confident

While the German Finance Ministry has denied recent media reports that it might lower the aviation tax rates, the ministry is scheduled to evaluate the levy's effects on small and medium-sized airports in June 2012.

The chairman of Maastricht Aachen Airport, Jan Tindemans, said he is not worried about his business in the short term - even if Berlin ends up decreasing or revoking the tax.

He told Deutsche Welle that winning back market share in the wake of the Dutch tax experiment was very difficult. He does not expect things to be any easier for German hubs.

"No bakery wants its customers to go for one or two times to another bakery, because they always think [the customers] will stay there," he said. "There will be some people who will go back, but I don't think there will be much of an effect."

Tindemans said Maastricht Aachen Airport is seeking to add more airlines and destinations to its roster. He added that his airport could double annual traffic to almost one million passengers over the coming years if economic conditions remain stable.