“Hobbit” may bring a Hollywood ending to 2012 box office

LOS ANGELES (Reuters) – It took more than a decade, two directors and a lawsuit before “The Hobbit” made it to the big screen. Hollywood executives are crossing their fingers that the culmination of that journey will help smash movie box office records this year.

The film, which opens on December 14, is expected to contribute to the first annual box office increase in North America in three years, a sign that big movie studios have made more films enticing enough to get people into theaters and away from their TVs, games and the Internet.

“The Hobbit” follows this year’s other big box office successes “The Avengers,” which became the industry’s third-largest film with $ 623 million in U.S. sales, and “The Dark Knight Rises” and “The Hunger Games” which both passed $ 400 million.

Hollywood analysts predict the two months of the year that include “The Hobbit” and the finale of the “Twilight” vampire series may lift U.S. and Canadian ticket sales above the $ 10.6 billion record set in 2009.

“The fourth quarter is just gangbusters,” said box office watcher Phil Contrino, editor of the boxoffice.com website. “One movie after the other is exceeding expectations.”

Annual receipts are on track to end 5 percent above last year at $ 10.8 billion or more, projects Paul Dergarabedian, box office analyst for Hollywood.com. Ten films have already passed $ 200 million in ticket sales, compared to seven last year, when no film passed the $ 400 million mark.

That would be the first yearly box office increase in three years, and would be from a jump in admissions rather than a hike in ticket prices that traditionally fuel box office growth. Ticket prices are averaging $ 7.94, a penny increase from last year, according to the National Association of Theatre Owners.

Hollywood has raked in $ 9.7 billion so far in ticket sales and sold more than 1.2 billion tickets in the North American (U.S. and Canadian) market, 5.5 percent up on a year ago.

The industry thought it had a record in sight last year, only to see underwhelming performances from holiday releases such as thriller “The Girl with the Dragon Tattoo” and animated movie “Hugo,” which left ticket sales at a three-year low.

OFF THE COUCH

Studios face a difficult entertainment landscape in which consumers have an array of competing outlets for movie watching that includes DVR recordings, game players and movies streamed over computers and mobile phones.

Services like Netflix Inc have also made a dent in trips to the theater by offering cheap monthly rentals that make it easier to stay on the couch.

What has got people out of their homes, Hollywood moguls say, is a rise in the quality and variety of what is on screen.

This year, studios offered up a rush of big-budget blockbusters including “Skyfall,” the highest grossing of the 23 James Bond films that is still selling well with $ 227 million in domestic sales.

“Ted,” about a foul-mouthed stuffed bear, was a surprise winner with $ 219 million. Several mid-sized hits that won critical acclaim, including Steven Spielberg’s historical drama “Lincoln” and the Iran hostage thriller “Argo,” became box office darlings.

“There is something for everyone,” said Chris Aronson, president of domestic distribution at News Corp’s 20th Century Fox studio. “When we achieve that as an industry and the movies are of good quality, that’s when good things happen.”

Sony oiled up its Spider-Man franchise and collected $ 262 million by rebooting it with new stars Andrew Garfield and Emma Stone in “The Amazing Spider-Man.” Disney’s Pixar unit struck it big again with the animated movie “Brave.”

Hollywood did not escape some box office bombs. Two big-budget bets – board-game inspired thriller “Battleship” and outer space adventure “John Carter” – ranked among the most costly flops in movie history.

The mass killing at a Colorado movie theater in July marred the release of Batman film “The Dark Knight Rises.” But the film eventually grossed $ 448 million domestically, ranking as the year’s second-biggest.

Hollywood also overcame summer doldrums. The season that accounts for the bulk of yearly sales slumped 5 percent behind 2011. The second weekend in September produced the lowest-grossing weekend since 2001.

The pace quickened at the start of the holidays – the second-biggest movie going period – with “Twilight” finale “Breaking Dawn – Part 2″ and James Bond movie “Skyfall” leading record Thanksgiving sales of $ 291 million over five days.

“FOUR QUADRANT” FILM

That has got the industry’s hopes up for the Christmas season when families gather and shoppers fill malls. Comcast Corp’s Universal Pictures is releasing the musical adaptation “Les Miserables,” and The Weinstein Company offers up the Leonardo DiCaprio thriller “Django Unchained.” A street-brawling Tom Cruise returns in “Jack Reacher” from Viacom Inc’s Paramount Pictures.

But it is the dwarves and wizards from “The Hobbit: An Unexpected Journey,” that Hollywood is banking on to generate movie going mania. Set 60 years before the Oscar-winning “Lord of the Rings” trilogy, the movie is the kind that studios love – a “four quadrant” film that appeals to male, female, young and old, said Contrino of Boxoffice.com. He projects $ 137 million in opening weekend domestic sales, rising to $ 475 million through its theatrical run.

The film, based on the fantasy novel by J.R.R. Tolkien about the travels of hobbit Bilbo Baggins, almost did not make it to the screen at all. Director Peter Jackson made the “Lord of the Rings” trilogy when producers could not get “The Hobbit” rights that were held by MGM’s United Artists unit.

“The Hobbit“, also a trilogy, has been produced by MGM and Time Warner Inc but only after Jackson settled a lawsuit against Time Warner’s New Line Cinema unit in a dispute over profits from the “Rings” trilogy.

Now all the film has to do is delight fans with a new hobbit adventure across Middle Earth and deliver a record year for Hollywood.

(Reporting By Lisa Richwine. Editing by Jane Merriman)

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Investigation underway into N.J. train derailment, chemical leak

PHILADELPHIA (Reuters) – Federal transportation investigators have begun interviewing the crew of a train that was carrying hazardous materials when it derailed on a railroad bridge in New Jersey, officials said on Saturday.

National Transportation Safety Board Chairwoman Deborah Hersman said the agency would spend the next two weeks preparing a preliminary report on Friday’s accident in the industrial town of Paulson

A bridge collapse derailed seven of the 82 Conrail freight train cars, and a tanker car that fell into Mantua Creek leaked vinyl chloride into the waterway, which feeds into the Delaware River near Philadelphia.

More than 12,000 gallons (45,425 liters) of the highly toxic and flammable industrial chemical vinyl chloride leaked from a gash in the tanker car’s side following the derailment on Friday morning.

Twenty-two people were examined at a nearby hospital, but air monitors in the area did not register any problem, officials have said. Exposure to vinyl chloride can cause a burning sensation in the eyes or respiratory discomfort.

Investigators are in the process of obtaining records from Conrail on inspections of the bridge over the Mantua Creek. They are also examining a derailment on the bridge in 2009, as well as any possible impact on the bridge from the high winds and rising waters that accompanied Superstorm Sandy.

“We are continuing to question the crew to get additional information,” Hersman said at a press briefing. “We still have some work to do.”

State Senator Steve Sweeney, whose district includes Paulsboro, told Reuters on Saturday that 106 residents who live close to the crash scene were evacuated from the area on Friday night in case any more of vinyl chloride escaped into the air or water.

“What it really was was just to be cautious,” Sweeney said. The residents will be out of their homes for several days, and are staying with friends and relatives or hotels, he said.

Conrail is jointly owned by rail operators CSX Corp and Norfolk Southern Corp.

(Editing by Paul Thomasch and Sandra Maler)

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Police: Kansas City Chiefs player kills girlfriend, takes own life

Chiefs and Panthers will play at regularly scheduled time on Sunday:
The Kansas City Chiefs announced that Sund... http://t.co/Ah1nFJf4

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Oliver Stone, Benicio del Toro visit Puerto Rico

SAN JUAN, Puerto Rico (AP) — Benicio Del Toro didn’t wait long to collect on a favor that Oliver Stone owed him for working extra hours on the set of his most recent movie, “Savages”, released this year.

The favor? A trip to Del Toro‘s native Puerto Rico, which Stone hadn’t visited since the early 1960s.

“I told him, you owe me one,” Del Toro said with a smile as he recalled the conversation during a press conference Friday in the U.S. territory, where he and Stone are helping raise money for one of the island’s largest art museums.

Del Toro, wearing jeans, a black jacket and a black T-shirt emblazoned with the name of local reggaeton singer Tego Calderon, waved to the press as he was introduced.

“Hello, greetings. Is this a press conference?” he quipped as he and Stone awaited questions.

Both men praised each other’s work, saying they would like to work with each other again.

“I deeply admire him as an actor, the way he thinks, the way he expresses himself,” Stone said. “Of all the actors I’ve worked with, he’s the most interesting.”

Stone said Del Toro always delivers surprises while acting, even when it’s as something as subtle as certain gestures between dialogue.

“I think Benicio is the master of keeping you watching,” he said.

Stone said he enjoys meeting up with Del Toro off-set because he’s one of the few actors in Hollywood who can talk about something other than movies.

“He is very interested in the world around him,” Stone said, adding that the conversations sometimes center around politics and other topics.

Del Toro declined to answer when asked what he thought about Puerto Rico’s referendum earlier this month, which aimed to determine the future of the island’s political status. He said the results did not seem to point to a clear-cut outcome.

Del Toro then said he would like the island’s movie business to grow, especially in a way that would encourage learning.

“I’m talking about movies in an educational sense, as a way to discover other parts of the world,” he said. “Create a film class. You’ll see, kids won’t skip it.”

Del Toro also shared his thoughts on being a father after having a daughter with Kimberly Stewart in August 2011.

He said the girl is learning how to swim and is discovering the world around her.

“She has her own personality,” Del Toro said. “She’s not her mother. She’s not me.”

Both Del Toro and Stone are expected to remain in Puerto Rico through the weekend to raise money for the Art Museum of Puerto Rico, which is hosting its annual movie festival and will honor Stone’s movies.

Museum curator Juan Carlos Lopez Quintero said the money raised will be used to enhance the museum’s permanent collection, especially with Puerto Rican paintings from the 19th century and early 20th century.

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Korean pop rides “Gangnam Style” into U.S. music scene

LOS ANGELES (Reuters) – “Gangnam Style,” the catchy Korean song by rapper Psy, may have danced its way into the American charts but the Korean pop industry isn’t horsing around when it comes to capitalizing on the singer’s phenomenal U.S. success.

With “Gangnam Style” topping the current Billboard Digital Songs chart and becoming the most-watched video on YouTube ever with more than 800 million views, fellow Korean pop, or K-pop, artists are positioning themselves for similar U.S. breakthroughs.

Korea’s pop music industry is thriving. Over the past two years, a handful of K-pop acts including girl group 2NE1, boy band Super Junior and nine-piece band Girls Generation have embarked on mini-promotional tours around the United States to build their audience.

“Psy has opened doors and is shining a spotlight on K-pop. People are paying attention to what’s being done there,” Alina Moffat, general manager at YG Entertainment group, which manages Psy, told a recent entertainment industry conference in Los Angeles.

Psy’s vibrant music video, featuring his invisible pony-riding dance, also featured K-pop artists Kim Hyun-a of girl band 4Minute, and Deasung and Seungri of boy band Big Bang, all of whom are attempting to crack the U.S. market.

“YouTube has really changed the awareness of K-pop. Both American kids and second-generation Korean American kids are discovering it,” Kye Kyoungbon Koo, director of the Korea Creative Content Agency, told a panel at a Billboard and Hollywood Reporter conference in Los Angeles in October.

MARKETING THE NEXT BIG THING

For U.S. companies looking to invest, K-pop is being marketed as the next big thing, boasting young, stylish and influential artists who command devoted fan followings.

Moffat said car companies and mobile phone brands were among those being courted at KCON, a convention held in October in Irvine in Southern California that showcased K-pop artists.

“Kids are coming, they’re engaged, they want to spend money and sponsors saw that,” Moffat said.

Whether Psy or other K-pop artists can command a global following to rival Lady Gaga, Justin Bieber or Rihanna remains to be seen, but John Shim, senior producer at MTV World, believes it is the right genre to compete with pop music’s biggest names.

“K-pop admittedly is a very niche genre but I also think it’s the best equipped of Asian pop to cater to the U.S. audience,” Shim told Reuters.

Psy has helped to break down language barriers, keeping “Gangnam Style” in its original Korean form instead of adapting it to English when it became an international hit.

The singer told Reuters he was persuaded to keep it that way by his manager Scooter Braun, the talent scout responsible for Justin Bieber’s success, who signed Psy to his record label.

“I thought, ‘Should I translate this or not?’ because (the fans) have got to know what I’m talking about, and lyrics are a huge part,” Psy said.

CHATTING IN ENGLISH

But industry executives say at least one member of each K-Pop group is usually taught to be fluent in conversational English.

“The investment in language is costly, but effective,” said Ted Kim, president of South Korean music television channel Mnet. “It really matters that Psy can go on the Ellen DeGeneres TV show and have a conversation.”

Psy said he was proud his song succeeded in Korean, but he now wants to branch out into English.

“‘Gangnam Style’ is not the sort of thing that’s going to happen twice. I’ve definitely got to make something in English so I can communicate with my fans right now,” the singer said.

In Korea, bands such as SM Entertainment’s Super Junior and Girls Generation have became branding powerhouses, scoring endorsements ranging from cosmetics, fashion, video games, electronics and beverages.

In the United States, companies such as Samsung have already jumped on the K-pop train, sponsoring Korean boy band Big Bang’s U.S. tour.

But while the genre is gaining steam in the charts, it has yet to spill into ticket sales for tours, according to Gary Bongiovanni, editor in chief at Pollstar.com, which tracks concert sales.

“Psy may be able to sell out arenas in Asia, but not yet here. For the American audience, he has to prove that he’s more than a novelty act,” Bongiovanni said.

“K-pop has to prove itself before large companies spend money on it,” he added.

(Editing by Jill Serjeant and Eric Walsh)

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New Jersey bridge collapse derails freight train; chemical leaks

PAULSBORO, New Jersey (Reuters) – A railroad bridge collapsed on Friday over a creek in southern New Jersey, causing a Conrail freight train to derail and spill hazardous chemicals into the air and water, authorities said.

Seven of the 82 cars derailed, and a tanker car that fell into Mantua Creek leaked vinyl chloride into the waterway, which feeds into the Delaware River near Philadelphia, said Deborah Hersman, chairwoman of the National Transportation Safety Board.

More than 12,000 gallons (45,425 liters) of the highly toxic and flammable industrial chemical leaked from a gash in the car’s side, local officials said.

Twenty-two people were examined at a nearby hospital as a precaution and were doing fine, said Larry Ragonese, a spokesman for the New Jersey Department of Environmental Protection.

Ragonese said the health danger and environmental impact were minimal.

“Initially there was a release of gas into the air that affected some nearby residents and people working right in that area,” he said.

Air quality monitors in the area did not register any problem, said Lawrence Hajna, also with the DEP. “All the levels are coming in within our safety range.”

Exposure to vinyl chloride can cause a burning sensation in the eyes or respiratory discomfort, the DEP said.

The accident took place at about 7 a.m. EST (1200 GMT) in Paulsboro. Area residents initially were told to stay indoors, with windows shut, and local schools were closed.

The leak was contained and no longer posed a threat, and authorities were using booms to trap the chemical in the water, Ragonese said.

At the scene, one of the freight cars was nearly vertical, nose-down and partly submerged in the creek. Other cars lay jumbled on the collapsed bridge and the embankment.

“It’s part of living in Paulsboro, with refineries and trains. We accept it,” said resident John Diamond, 53, who was taking photographs.

The area is thick with chemical plants, and two refineries, PBF Energy’s Paulsboro and NuStar’s Asphalt, are nearby.

TANK “BREACHED”

The head of the Gloucester County, New Jersey, Office of Emergency Management, Tom Butts, said the leaking tanker car in the water had a tear in it, and the tank was “breached.”

About half of its contents leaked out, he said.

The tank was carrying some 25,000 gallons (94,635 liters) of the chemical, said John Burzichelli, a state assemblyman and former mayor of Paulsboro.

“When you live between two oil refineries, you have a sense that these things can happen,” he said.

Locals fish and go crabbing and jet-ski in the creek in the warm months, Diamond said.

Jeff Tittel, director of the New Jersey Sierra Club, said improved safety procedures, inspection, enforcement and oversight are needed to help prevent such accidents.

“This time it was … vinyl chloride. What if it was chlorine?” he said, referring to a chemical that is extremely dangerous if inhaled and has the potential to explode.

Also, he said there is no mechanism to alert communities to what kinds of chemicals trains are carrying through the states.

He questioned the integrity of the bridge, which is owned and operated by Conrail, since Superstorm Sandy slammed into New Jersey on October 29, causing surges in area waterways.

The cause of the accident was undetermined. The National Transportation Safety Board is investigating, and members of the agency arrived at the scene mid-afternoon.

NTSB’s chairwoman said four out of the five train cars that were on the bridge when it collapsed landed in the creek, and two other cars rolled onto the embankment.

“We have requested a great deal of information from the railroad” as part of the investigation, Hersman said.

Conrail said the train consisted of two locomotives, 82 rail cars and one caboose.

“We very much regret the impact on the local community,” said Conrail spokesman John Enright, who was at the scene. “We will be working very closely with federal investigators to determine the cause.”

The bridge underwent extensive repairs after getting damaged in a 2009 derailment of a coal freight train, Burzichelli said.

“That bridge is very old. It’s not a good day for Conrail,” Burzichelli said, adding that the bridge carries three major freight trains daily.

New Jersey State Senate President Steve Sweeney, also on the scene, said a nearby homeowner reported hearing a “loud bang” from the bridge about two days ago. Burzichelli said Conrail had come out to examine it in response.

Conrail is jointly owned by rail operators CSX Corp and Norfolk Southern Corp.

(Additional reporting by Edith Honan and Ellen Wulfhorst; Writing by Ellen Wulfhorst; Editing by Vicki Allen and Xavier Briand)

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Pelosi vows to force tax rate vote

House Minority Leader Nancy Pelosi (Mark Wilson/Getty Images)

WASHINGTON—House Minority Leader Nancy Pelosi will try to force a vote on the House floor to extend current tax rates for the middle class next week if Republicans do not act, the California Democrat announced on Friday.

During a press conference on Capitol Hill, Pelosi called on House Republicans, who control the chamber, to hold another floor vote on whether to extend current tax rates for individuals who earn $200,000 or less and families making $250,000 or less. If they don't, Pelosi vowed to file a "discharge petition" that would force a vote if 218 House members sign it, which is unlikely.

The bill Pelosi wants to see put to a vote is identical to a measure passed in the Democrat-controlled Senate in July that extends the rates for middle-income earners for one year. House Republicans responded by rejecting the bill and passing their own measure that extends current tax rates for all income brackets.

"We're calling upon the Republican leadership in the House to bring this legislation to the floor next week. We believe that not doing that would be holding middle-income tax cuts hostage to tax cuts for the rich. Tax cuts for the rich, which do not create jobs, just increase the deficit, keeping mountains of debt for generations," Pelosi said. "To that end ... if it is not scheduled, then on Tuesday we will introduce a discharge petition."

Discharge petitions, which allow individual members of Congress to put a bill to a vote without committee or leadership approval, are rarely successful. In this case, Pelosi would need Republican support. But when asked if any Republicans had signaled that they would sign a discharge petition to force a vote, Pelosi responded, "No."

Pelosi said she wanted the bill passed so Congress will have more time to negotiate broader tax reform in 2013.

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Noisy city: Cacophony in Caracas sparks complaints

CARACAS, Venezuela (AP) — This metropolis of 6 million people may be one of the world’s most intense, overwhelming cities, with tremendous levels of crime, traffic and social strife. The sounds of Caracas‘ streets live up to its reputation.

Stand on any downtown corner, and the cacophony can be overpowering: Deafening horns blast from oncoming buses, traffic police shrilly blow their whistles and sirens shriek atop ambulances stuck in bumper-to-bumper traffic.

Air horns routinely used by bus drivers are so powerful they make pedestrians on crosswalks recoil, and can even leave their ears ringing. Loud salsa music blares from the windows of buses, trucks with old mufflers rumble past belching exhaust, and “moto-taxis” weave through traffic beeping high-pitched horns.

Growing numbers of Venezuelans are saying they’re fed up with the noise that they say is getting worse, and the numbers of complaints to the authorities have risen in recent years.

One affluent district, Chacao, put up signs along a main avenue reading: “A honk won’t make the traffic light change.”

“The noise is terrible. Sometimes it seems like it’s never going to end,” said Jose Santander, a street vendor who stands in the middle of a highway selling fried pork rinds and potato chips to commuters in traffic.

Prosecutor General Luisa Ortega recently told a news conference that officials have started “putting an increased emphasis on promoting peaceful coexistence” by punishing misdemeanors such as violations of anti-noise regulations and other minor crimes. That effort has translated into hundreds of noise-related cases in recent years.

Some violators are ordered to perform community service. For instance, two young musicians who were recently caught playing loud music near a subway station were sentenced to 120 hours of community service giving music lessons to students in public schools.

Others caught playing loud music on the street have been charged with disturbing the peace after complaints from neighbors. Fines can run as high as 9,000 bolivars, or $ 2,093.

On the streets of their capital, however, Venezuelans have grown used to living loudly. The noisescape adds to a general sense of anarchy, with many drivers ignoring red lights and blocking intersections along potholed streets strewn with trash.

“This is something that everybody does. Nobody should be complaining,” said Gregorio Hernandez, a 23-year-old college student, as he listened to Latin rock songs booming from his car stereo on a Saturday night in downtown Caracas. “We’re just having fun. We’re not hurting anybody.”

Adding to the mess is the country’s notoriously divisive politics, which regularly fill the streets with marches and demonstrations.

On many days, the shouts of protesters streaming through downtown can be heard from blocks away, demanding pay hikes or unpaid benefits.

And the sporadic crackling of gunfire in the slums can be confused for firecrackers tossed by boisterous partygoers.

It’s difficult to rank the world’s noisiest cities because many, including Venezuela’s capital, don’t take measurements of sound pollution, said Victor Rastelli, a mechanical engineering professor and sound pollution expert at Simon Bolivar University in Caracas. But Rastelli said he suspects Caracas is right up there among the noisiest, along with Sao Paulo, Mexico City and Mumbai.

Excessive noise can be more than simply an annoyance, Rastelli said. “This is a public health problem.”

Dr. Carmen Mijares, an audiologist at a private Caracas hospital, said she treats at least a dozen patients every month for hearing damage caused by prolonged exposure to loud noises.

“Many of them work in bars or night clubs, and their maladies usually include temporary hearing loss and headaches,” Mijares said. For others, she said, the day-to-day noise of traffic, car horns and loud music can exacerbate stress and sleeping disorders.

Several cities have successfully reduced noise pollution, said Stephen Stansfeld, a London psychiatry professor and coordinator of the European Network on Noise and Health.

One of the most noteworthy initiatives, Stansfeld said, was in Copenhagen, Denmark, where officials used sound walls, noise-reducing asphalt and other infrastructure as well as public awareness campaigns to fight noise pollution.

But such high-tech solutions seem like a remote possibility in Caracas, where streets are literally falling apart and aging overpasses regularly lack portions of their guard rails. Prosecutors, angry neighbors and others hoping to fight the noise will have to persuade Venezuelans to do nothing less than change their loud behavior.

For Carlos Pinto, however, making noise is practically a political right.

The 26-year-old law student and his friends danced at a recent street party to house music booming from woofers in his car’s open trunk, with neon lights on the speakers that pulsed to the beat.

When asked about the noise, he answered: “We will be heard.”

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AP freelance video journalist Ricardo Nunes contributed to this report.

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Christopher Toothaker on Twitter: http://twitter.com/ctoothaker

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“Homeland” in, “Boardwalk Empire” out in PGA TV nominations

LOS ANGELES (Reuters) – Emmy-winning dramas “Homeland”, “Mad Men” and British period piece “Downton Abbey” will compete for the annual Producers Guild Awards for the top shows on U.S. television, organizers announced on Wednesday.

But last year’s winner – HBO’s lavish Prohibition-era gangster drama “Boardwalk Empire” – failed to make the cut this year with the Producers Guild of America, one of the leading professional guilds in Hollywood.

Instead, the producers of popular fantasy drama “Game of Thrones” and drug underworld show “Breaking Bad” round out the nominees for the top PGA prize in television.

The PGA also nominated the producers of comedies “Modern Family”, “The Big Bang Theory”, “Louie”, “30 Rock” and Larry David’s wry “Curb Your Enthusiasm” as contenders for its 2013 awards on the small screen.

In the reality genre, singing contest “The Voice” will go head to head with fashion show “Project Runway”, “Top Chef”, “Dancing with the Stars” and Emmy darling “The Amazing Race”.

Hollywood‘s guilds represent professionals in their respective industries, and recognition by peers can go a long way toward boosting a producer’s career.

The PGA will announce nominees in its closely watched movie category in early January, and hand out its awards for film and television at a ceremony in Hollywood on January 26.

(Reporting by Jill Serjeant; Editing by Dale Hudson)

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Health officials tell Greece to act fast to control HIV

LONDON (Reuters) – A spiraling outbreak of HIV in debt-stricken Greece could run out of control if urgent action is not taken, European health officials said on Friday.

The European Centre for Disease Prevention and Control (ECDC) said infections with the AIDS-causing virus among drug users and other high-risk groups were rising fast, and that a failure to act would mean far higher costs in future.

ECDC director Marc Sprenger will meet Greek officials this week to say that free needles, syringes and opioid substitution projects must be stepped up, and testing and treatment for the human immunodeficiency virus made available to all.

“Immediate concerted action is needed in order to curb and eventually stop the current outbreak,” he told Reuters as the ECDC published a report on Greece’s HIV problem.

Since 2009, recession in Greece has reduced economic output by a fifth and sent unemployment to a record high.

The healthcare system is under extreme pressure, making it harder for the poor, unemployed or homeless to get treatment.

While Greece has only 7.4 HIV infections per 100,000 people, compared to 10 per 100,000 in Britain or 27.3 in Estonia, rates have soared since 2011 in high-risk groups such as drug users.

From 2007 to 2010, there were only 10 to 15 cases a year of HIV infection in injecting drug users.

But during 2011, there were 256 such cases – or 27 percent of the total. Another 314 were reported between January and August 2012, most of them in the capital.

Combination drugs can give patients with HIV near-normal life expectancy, but the drugs must be taken for life, and cost 10,000 to 22,000 euros ($ 13,000 to $ 28,500) a year. Sprenger said Greece’s costs were at risk of running out of control.

“If a scale-up (in prevention and testing) is not achieved, it’s likely that HIV transmission among people who inject drugs in Athens will continue and even accelerate – and could eventually spread,” he said.

“The cost of prevention … will be significantly less than the provision of treatment to those who become infected.”

The ECDC said it was unclear how much Greece’s debt crisis has contributed to HIV outbreak.

Rates of other health problems such as depression and suicide have been rising in Greece, which is also battling the re-emergence of mosquito-borne diseases such West Nile Virus and malaria.

(Reporting by Kate Kelland; Editing by Kevin Liffey)

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