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The US federal agency says it will not play an immigration role at February's event in Milan-Cortina.
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The long-awaited deal comes as both Delhi and Brussels contend with economic and geopolitical pressure from the US.
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The process will be available to foreign nationals without a criminal record who can prove they lived in Spain for five months prior to 31 December 2025.
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Critics say the proposal could see even younger children becoming offenders as well as breaching children's rights.
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Firefighters in Victoria are battling at least six major fires amid a record-breaking heatwave.