EU hits back at Geithner on regulation - by Nikki Tait

Top European Union officials hit back on Thursday at criticism from Tim Geithner, US Treasury secretary, who has accused Brussels of pushing ahead with rules to regulate managers of hedge funds and other alternative investment funds that could be protectionist.

A spokesman for Michel Barnier, the new EU internal market commissioner who is responsible for financial services regulation and to whom Mr Geithner addressed his concerns, said that the EU decision to act on hedge funds was in line with a G20 decision to reinforce transparency in the financial system.

The hedge fund rules will also need approval from the European Parliament, as well as individual member states.

For more: FT.com / Brussels / Business regulation - EU hits back at Geithner on regulation

EU financial rift with Anglo-Saxons: UK, US lash out at France, Germany over hedge fund regulation

There is no case for emergency action to crack down on naked selling of credit default swaps, as called for by France and Germany, British authorities said on 10 March. At the same time, the US warned that EU plans to regulate hedge funds could cause a transatlantic rift.

Greece, Germany, France and Luxembourg have called for speedy action to limit or even ban naked credit default swap (CDS) contracts, whereby the buyer has no stake in the underlying asset being insured against default. Greece has blamed naked CDS contracts on its sovereign debt for amplifying its bond market woes as it grapples with a huge budget deficit. "We need to think about it and think about it clearly but, given that, it is not the key driver of what has gone on with perceptions of Greek risk," Britain's Financial Services Authority chairman, Adair Turner, told reporters. European Union finance ministers will discuss possible action in the CDS market on 16 March after the bloc's executive said on Tuesday it would consider a ban on naked selling.

Note EU-Digest: Has Mr. Adair  Turner suddenly forgotten which role Goldman Sachs has played in the Greek Financial drama? Its high time to ban the Wall Steet bandits from the EU. If the Commission does not act the EU Parliament should.

For more: UK, US lash out at France, Germany over hedge fund regulation | EurActiv

Alternative Energy: Canada's largest Supermarket Chain to Install Solar Panels on 100+ Stores in Ontario - by Michael Graham Richard

Canada's supermarket chain Loblaw has announced that it will put solar panels on the roof of 4 supermarkets in a pilot program, with the ultimate goal of installing solar arrays on more than 100 stores in Ontario. This is not surprising considering how insanely generous the feed-in tariffs for solar power are in the province (between 53.9 and 80.2 ¢/kWh, with 20-year contracts).

For more: Canada's Largest Supermarket Chain to Install Solar Panels on 100+ Stores in Ontario : TreeHugger

Alternative Energy USA: Wine-Sipping Hypocrites Preach Gospel Of Renewable Energy...As Long As It Doesn't Wreck The View - by Henry Blodget

As the nation's first major offshore wind farm, Cape Wind would also help make the United States less of a laggard in the race to develop significant sources of renewable energy.  To a small extent, it would also lessen the country's dependence on the kindness of foreign strangers.

When everyone in Massachusetts heard about this plan they were delighted? Nope ! Why not? Well, according to the official logic of the well-funded and vocal opposition groups that began fighting Cape Wind even before it had been formally announced, the plan was found to be lousy for many reasons, including:

• Wind power costs more than fossil-fuel power (ex. subsidies)
• Consumers don't want to pay more for wind power
• Cape Wind would not lower the cost of electricity for consumers
• Onshore wind power is cheaper than offshore wind power

Of course, those arguments are debatable, at best.  More likely, it seems, people will instantly get used to the windmills.  In time, some will likely come to be proud of them: "See that?  That's our power source.  Where does YOUR power come from." 

So one suspects that what is really going on is that the fierce opposition to Cape Wind, which has now lasted more than 9 years, boils down to a handful of rich beachfront homeowners don't want anything impinging on their view.

For more: CAPE WIND: Wine-Sipping Hypocrites Preach Gospel Of Renewable Energy...As Long As It Doesn't Wreck The View

Its time toget rid of Wall Street Power Politics - Big business is not bad, but simply vampiric - by Jonah Goldberg

The lesson here is fairly simple: Big business is not "right wing," it's vampiric. It will pursue any opportunity to make a big profit at little risk. Getting in bed with politicians is increasingly the safest investment for these "crony capitalists." But only if the politicians can actually deliver.

For years, the GOP defended big business in the spirit of free enterprise while businesses never showed much interest in the principle themselves. Now that their bet on the Democrats has crapped out, it'd be nice if they stopped trying to game the system and focused instead on satisfying the consumer.

For more: Jonah Goldberg: Big business is not bad, but simply vampiric | News for Dallas, Texas | Dallas Morning News | Opinion: Viewpoints

Europe Finally Recognizes Wall Street is a Pariah

Wall Streets is headed toward international pariah status thanks to two recent actions by the European Union (EU).  On Tuesday, the EU announced that it was banning Wall Street banks from the lucrative government bond business in Europe. They didn't express official concern or fire off a warning shot. They simply banned Wall Street from financing government bond deals like the one Goldman Sachs sold to Greece. The Guardian pointed out that Wall Street bond business from European governments has gone down over the last two years. Now the business is gone period. In effect, the EU has labeled Wall Streets business tactics as too dangerous for their governments to handle.

Then on Wednesday, the President of the European Commission said that the EU was considering a ban on government debt speculation through Credit Default Swaps (CDS) President José Manuel Barroso announced that, "the Commission will examine closely the relevance of banning purely speculative naked sales on Credit Default Swaps of sovereign debt." While not an outright ban, the threat of banning CDS on national debt would be a major loss for the world's financial speculators, particularly those in the United States and Great Britain.  These two hostile moves toward Wall Street by Europe were discussed by officials in the context of the current Greek debt crisis. Wall Street firm Goldman Sachs has been implicated in helping the Greek government hide the true nature and size of the debt. Discovery of this sleight-of-hand action exacerbated an already challenging crisis.

In January, public opinion polls in Iceland showed opposition to the bailout in the mid 50% range. The 93% opposition vote Saturday was a startling and bold statement of citizen opposition to subsidies for the private sector. It has becomes increasingly difficult to explain socialism for the financial elite and survival of the fittest for the rest of us. Despite promises of trickle down benefits from policies that benefit only those at the top, the record since the 1970’s has been one of declining living standards and benefits for those who produce the wealth through their hard work. Merkel and Sarkozy are hardly heroes of working men and women. They're reacting to the excesses of Wall Street as those excesses threaten the Euro currency and its beneficiaries, not their people. To a greater degree, no doubt, their actions reflect fear among the European elite that the entire continent might rise up in a rage if they continue policies that turn the vast majority of citizens into indentured servants.

For more: Economic Warfare? Europe versus Wall Street

EU-US tanker contract spat to have 'consequences': France

Claims the Pentagon skewed bidding rules for a tanker jet contract in favor of an American manufacturer will have serious consequences for EU-US relations, a French minister said Wednesday.


"This is a serious matter," Pierre Lellouche, France's minister for Europe, told reporters after a meeting of President Nicolas Sarkozy's cabinet. "Naturally, we're talking about the arms market, so it's not a classic matter of international law and the World Trade Organisation, but we're going to respond," he said, without saying what France's response would be. "I can assure you that there will be consequences. The president will act on the matter at the appropriate time. This matter is in no way finished.

For more: SGGP English Edition- EU-US tanker contract spat to have 'consequences': France

When America looks at Greece it reflects the future for America

The Greek prime minister is in Washington this week as part of a world tour seeking help for his beleaguered homeland. Greece is broke, its government on the verge of default. As Papandreou landed in Washington, there were strikes in the streets of Athens over his tax increases, his wage cuts for government workers and his scaling back of retirement benefits.

As he and Secretary of State Hillary Clinton faced the cameras Monday, she spoke of the weekend's election in Iraq. "Greece is the birthplace of democracy, so anytime there's a democratic election anywhere in the world, Greece should get a royalty, Prime Minister," Clinton said.cratic election anywhere in the world, Greece should get a royalty, Prime Minister," Clinton said.

To pull Greece back from the edge, Papandreou has promised to cut the deficit to 3 percent of GDP by 2012. For the U.S. government to make an equivalent cut, it would have to shut down the Pentagon and a few other agencies: the departments of Agriculture, Commerce, Education, Health and Human Services, Energy, Homeland Security, Housing and Urban Development, the Interior, Justice, Labor, State, Transportation, the Treasury, and Veterans Affairs, plus the Environmental Protection Agency and NASA -- and even then we'd come up a few dollars short. Greece had to hit bottom before it acted. The United States seems determined to do the same.

For the complete report: Dana Milbank - From Greece, an economic cautionary tale for the U.S. - washingtonpost.com

Israel agrees United Nations secretary general and the European Union's foreign policy commissioner to visit occupied Gaza Strip

Israel has agreed to grant United Nations secretary general and the European Union's foreign policy commissioner entry visas to their occupied Gaza Strip, the first time it has acceded to such a request from international officials since Operation Cast Lead in December 2008.

The Foreign Ministry announced on Monday that the two unusual entry permits were granted to the United Nations Secretary General Ban Ki-moon and the European Union's foreign policy commissioner Catherine Ashton.

"In response to the unique requested submitted by the UN chief, Mr. Ban Ki-moon, and the EU Foreign Policy commissioner, Lady Catherine Ashton, Israel has decided to permit their entrance into the Gaza Strip for close inspection of humanitarian aide work," the Ministry's statement wrote. Israel has agreed to grant United Nations secretary general and the European Union's foreign policy commissioner entry visas into the occupied Gaza Strip, the first time it has acceded to such a request from international officials since Operation Cast Lead in December 2008.

EU urges US to join in action against speculators - by Aofi White

European officials urged the U.S. to join in a crackdown on speculators who bet against Europe's currency union, warning they might ban some credit default swaps — opaque financial instruments blamed for worsening the world financial crisis.

German Chancellor Angela Merkel said Tuesday that "quick action is needed," calling on the U.S. to "make a gesture" and curb the trades. Greek Prime Minister George Papandreou, in Washington, DC to meet with President Barack Obama, is also calling for curbs on speculation which he blames for making his country's debt crisis worse.

The European Commission threatened to ban "purely speculative naked sales on credit default swaps of sovereign debt" and said it would ask for a similar move globally at the Group of 20 summit of leading and emerging economies in June. Papandreou on Monday compared the practice of selling naked credit default swaps to buying insurance on a neighbor's house and then burning it down to collect.

Note EU-Digest: when is the EU Commission finally going to realize that talking about the issue to the US makes no more sense, because the US has basically caved in to accepting the financial industry and Wall Street's financial manipulations. Instead the EU needs to act immediately and unilaterally ban "purely speculative naked sales on credit default swaps of sovereign debt".

For more: The Associated Press: EU urges US to join in action against speculators

AIRBUS: Europe sounds warning bell over US refuelling tanker deal

The European Union's executive sounded a warning over US military procurement policies on Tuesday after a part-European consortium pulled out of the running to supply the US with a new refuelling aircraft, amidst claims of American prejudice. European military giant EADS and US partner Northrop-Grumman had won a 35-billion-dollar tender in 2008 to build the next generation of aerial refuellers for the US air Force. But the award was cancelled after intensive lobbying from rival Chicago-based company Boeing. On Monday, EADS and Northrop-Grumman pulled out of the repeat bidding process, arguing that the new tender terms favoured Boeing. "The European Commission would be extremely concerned if it were to emerge that the terms of tender were such as to inhibit open competition for the contract ... (and) will be following further developments in the case very closely," a commission statement said.

For more: Europe sounds warning bell over US refuelling tanker deal : Business

The Netherlands: Security Measures Amsterdam Schiphol Airport Inadequate - by Doreen Carvajal

A Dutch investigative journalist breached security checks at Schiphol Airport in Amsterdam, smuggling a refilled liquor bottle aboard passenger jets bound for London and Washington, prompting airport officials to impose new restrictive measures. Alberto Stegeman, a television reporter, has boasted of a history of exposing security flaws at Schiphol, where Umar Farouk Abdulmutallab boarded a flight to Detroit on Dec. 25, allegedly with explosives hidden in his underwear. This time airport security guards recognized him, Mr. Stegeman said, and ordered him to show them what he had filmed with his camera. But he said they overlooked his sealed bag with a Bacardi bottle from a duty-free shop in the airport.

Mr. Stegeman, whose report was broadcast on Sunday, said he purchased a bottle of rum, emptied it and refilled it with water before returning it to the store. Then he returned to the same shop and “bought” the refilled bottle, which the shop sealed in a bag with a receipt, allowing him to take it through security checks and on to a plane that landed in London, where he transferred to a flight to Washington. “This was a real big security gap, and the system failed,” said Mr. Stegeman, who was recognized by security staff because of his previous stories where he had posed as a worker for three months and then passed through security unchecked.

“When they recognized me, they had a lot of extra security guards and asked a chief to come and look at me. Still, they didn’t look inside the bag. They looked at the bag, checked the flight number, but that was it,” Mr. Stegeman said.

For more: New Security Breach at Amsterdam Airport - NYTimes.com

Real Estate: Don’t balk at the Balkans - by Sally Howard

The former Yugoslav republic of Bosnia-Herzegovina doesn’t feature on the list of favourite destinations for British overseas property buyers. Mentions of the capital, Sarajevo, and Mostar, the second city, instead trigger memories of the devastating civil war in the 1990s, which killed 100,000 people and displaced 2m. Fifteen years on, however, a small and intrepid band of pioneering Britons is moving in, attracted by improving transport links, government attempts to boost tourism and property prices half those in neighbouring Croatia.

Among them is Philip Lilleyman, 61, a former colonel from Rotherham, who in 2004 bought a ruined 18th-century Ottoman customs officer’s house in Trebinje, a handsome Venetian-style town straddling the glassy Trebisnjica River, 15 miles inland from the Croatian city of Dubrovnik. Lilleyman was stationed in Bosnia with the British army in the 1990s, and decided to build his dream property there when he retired.

The country remains politically volatile, and since the end of the war has been divided between two entities: the largely Serb Republika Srpska and the mainly Muslim and Croat Federation of Bosnia and Herzegovina. A further reminder of its troubled past was provided by the arrest last week at Heathrow airport of the former president, Ejup Ganic, accused over ambushing a Yugoslav army column in Sarajevo. Yet Paul Bradbury, British director of Agent, an estate agency that sells and develops property in Bosnia, insists the country has potential for buyers with mettle. “There are bargains everywhere — city three-beds for £70,000 and rural three-beds at £50,000,” he says.

For more: Don’t balk at the Balkans - Times Online

Marriott to Double Properties in Europe - by Alexandra Berzon

Marriott International plans to more than double the number of its properties in Europe in the next few years.

If successful, that would mean 40,000 more hotel rooms on the Continent would have Marriott brand names. The company now has 174 hotels in 24 countries in Europe that operate under the Marriott, Ritz Carlton and Renaissance brands, among others.

Marriott is to announce its new target Tuesday at the Hotel Investment Forum, a conference in Berlin. The company's first hotel in Europe opened 35 years ago in Amsterdam.

For more: Marriott to Double - WSJ.com

Greece will come through crisis without bailout, IMF head says

The head of the International Monetary Fund believes Greece will resolve its debt crisis without an IMF bailout, and today dismissed fears that other European nations will be engulfed by the crisis.

Dominic Strauss-Kahn insisted this morning that other eurozone countries with large public deficits would not be forced into the same predicament as Greece. Speaking to Reuters in Nairobi, Strauss-Kahn said the wider European econo,my was still strong - despite fears that Greece might default on its debts. While the IMF is poised to assist Greece if needed, Strauss-Kahn remains confident that Europe's leaders could resolve the issue.

"The eurozone wants to deal with the problem itself, and I can understand that," he said. "I think they can do it … and we're just here to help."

For more: Greece will come through crisis without bailout, IMF head says | Business | guardian.co.uk

US and Armenia: Provoke China, not Turkey - by James Davis

"If the US Congress is responsible for punishing or shaming foreign regimes for evil acts, why are we not condemning China for its current actions toward the government and people of Tibet? Why are we not passing resolutions condemning the daily cyber attacks against U.S. commercial and governmental computer systems conducted by the Chinese? Why is there no bipartisan condemnation of the numerous shell corporations that have been formed in the U.S. with the fact concealed that these corporations are operatives of the Chinese military? (Now these corporations can contribute as they see fit to U.S. political races thanks to the recent U.S. Supreme Court decision.) No resolutions are in the works about China's manipulation of the value of its currency to the immediate detriment of the U.S. and other countries.

Oh, I forgot that China is the US banker. It allows us in America to continue down the road to our own economic ruin. Without China, our politicians would have to deal with our debt albatross without the option of pushing the pain onto future generations.

This may explain the resolution against the Ottoman Empire. It no longer exists. Congress can cloak itself with the halo of moral outrage without risking its catnip of borrowed money or campaign contributions."

For more: Provoke China, not Turkey » The Commercial Appeal

Geert Wilders and Nigel Farage abusing the liberties of free speech

Nigel Farage has been fined 10 days' MEP allowances – about £2,700 – following his attack on the credentials of the European council president, Herman van Rompuy, last week.

The Ukip MEP was today summoned to see the European parliament's president, Jerzy Buzek, who demanded that he apologise to Belgium, its people and its former prime minister for his remarks.

When Farage refused, Buzek said he was considering sanctions, including possible suspension from the chamber, against him.

Note EU-Digest: Geert Wilders and Nigel Farage are abusing the liberties free speech provides to them and as such show their contempt for the democratic system they claim to protect. They consider the ability to make personal and public insults about peoples appearances, customs and religion a part of free speech. In that respect it is not much different from the days of Adolf Hitler and his followers, who continuously ridiculed and warned against the Jewish race in the Reichstag (German Parliament), public gatherings and in the press. We all know how that ended...

For the complete report from the Guardian click on this link

Lamfalussy says euro zone stable despite Greece

The euro zone is stable despite the financial woes of Greece, which are far more serious than economic challenges faced by any other member states, economist Alexandre Lamfalussy said on Sunday. Lamfalussy was founding president of the European Monetary Institute, which became the European Central Bank. He reacted to concerns voiced by investors including billionaire Gyorgy Soros who has said the euro currency's future was in question even if Greece is rescued as Spain, Italy, Portugal and Ireland also had economic problems.

"No other (euro zone member) state is in a situation comparable to Greece," said Lamfalussy, who was born in Hungary like Soros.

Lamfalussy says euro zone stable despite Greece | Reuters

Germany praises deal on financing of Airbus A400M

Germany's Defense Minister is praising the agreement on the financing of the troubled Airbus A400M military transport plane as "good news."  Karl-Theodor zu Guttenberg told broadcaster MDR on Saturday the deal will close a gap in crucial military equipment and secure many jobs in the German industry.

The A400M is to replace Germany's aging fleet of Transall transport planes, whose increasing maintenance costs Guttenberg called "exorbitant." "This is good news, especially as it helps secure many jobs," Guttenberg added.

The seven nations that ordered the A400M and manufacturer EADS struck a deal on the financing on Friday in Berlin.

For More:Germany praises deal on financing of Airbus A400M - BusinessWeek

Ultra-modern Chopin museum opens in Poland

A high-tech museum dedicated to the Polish composer and pianist Frederic Chopin opened in Warsaw on Monday to mark the bicentenary of his birth. "It is among the world's most modern museums," Poland's Culture Minister Bogdan Zdrojewski told reporters at the opening ceremony.

Located in Warsaw's revamped 17th century Ostrogski Palace, perched on a hill near the Vistula River, the museum is designed to plunge visitors into Chopin's universe via cutting-edge audiovisual and interactive technologies.

For More: Ultra-modern Chopin museum opens in Poland - News, Art - The Independent

Turkey: From the Bosphorus: Straight - Returning to ties between Turks, Armenians

It is interesting to imagine what might have ensued had the alliance forged in 1907 between the nationalist “Young Turks” and the nationalist Armenian “Dashnaks” not broken down in 1912.

Had neutral Turkey’s entry into the World War I not been precipitated by bungling over the delivery of gunships commissioned from England, and the “gift” of the re-flagged German cruiser Goeben, who knows how very different the history of the early 20th Century might have been.

The recitation of such events is, however, just an empty exercise in historical nostalgia. The list of the mistakes by ignorant political leaders is a long one. But much shorter is the list of errors knowingly made in the face of warnings, pleadings and the best advice available.

We cannot imagine, for example, that six weeks before the April 10, 1998, “Good Friday Agreement” peace brokered between the long-warring factions in Northern Island, that the U.S. Congress’s Foreign Affairs Committee would have weighed in with an incendiary decree on the political factors behind the Irish Potato Famine of 1845.

But that is exactly what Democrat Howard Berman of California did. It took years of quiet diplomacy, ceaseless efforts by academics and journalists in Turkey and Armenia and earnest exchanges by artists and musicians to lead us to the edge of a historic normalization protocol. It took just moments for Berman to effectively kill it. Armenia is likely to remain economically and geographically isolated for another decade. Nationalists on both sides will feast on the fallout.

Note EU-Digest: Unfortunately the Armenian Diaspora needs to keep this conflict with Turkey alive in order to finance their existence and to force nationalists on both sides to continue going at each others throat. In the process of this exercise they have done so many ridiculous acts that they have lost most of their credibility, even among their own supporters.

For more: From the Bosphorus: Straight - Returning to ties between Turks, Armenians - Hurriyet Daily News and Economic Review

Germany Backs European Version of IMF - by Marcus Walker and Bob Davis

Germany expressed support for creating a "European Monetary Fund" that could bail out indebted nations in the euro zone, showing how Greece's debt crisis is forcing Europe to rethink the institutional design of its common-currency area.

German Finance Minister Wolfgang Schäuble said he would "present proposals soon" for a new euro-zone institution that has "comparable powers of intervention" to the International Monetary Fund.

In an interview with German newspaper Welt am Sonntag, Mr. Schäuble said the euro zone should draw lessons from the Greek crisis, which has exposed the region's lack of tools for dealing with a member country at risk of defaulting.

For more: Germany Backs European Version of IMF - WSJ.com

Cinema/documentaries: The Virtual Revolution: Enemy of the state

Dr.Aleks Krotoski continues her investigation into how the world-wide-web is transforming our lives. In this second film in the series, she charts how, for better and for worse, the web is reshaping our relationship to authority and forging a new brand of politics.

Featuring stories from the digital front line in China, Iran and Eastern Europe and interviews with some of the web's biggest names – including its inventor Tim Berners-Lee (from Britain), Martha Lane Fox, Al Gore and the founders of Twitter and PayPal – this film presents the definitive guide to how the web is redrawing the political landscape and unleashing a battle of ideas across the world.

For more: BBC World Service - Documentaries - The Virtual Revolution: Enemy of the state

A Farewell to Europe? Not So Fast - by paul J. Lim

It may be tempting to ditch European stocks. After all, Europe is expected to be one of the slowest-growing areas of the world in the next several years. (Its economy is expected to grow just 1 percent in 2010, compared with 3 percent for that of the United States.)

Moreover, stock markets in that region have become highly correlated with the Standard & Poor’s 500-stock index, thanks to the increasingly interconnected global economy. That means European stocks aren’t likely to zig when domestic stocks zag.

Nevertheless, many market strategists warn that jettisoning stocks from such a big chunk of the world, which represents more than a quarter of global stock market value, would be a big mistake.

For more: Fundamentally - A Farewell to European Stocks? Not So Fast - NYTimes.com

China: A New Economic Model? - The Curious Capitalist - by Michael Schuman

A few days ago on Curious Capitalist, I asked whether China was headed for trouble due to the potential damage done to its banking system by the government's giant stimulus program. One of our readers, identified as tanboontee, was kind enough to write a very interesting comment. Here's an excerpt:

Excessive debts in the west support lavish lifestyles, not necessarily so in China. Do not forget that capitalism is already malfunctioning. What's wrong with introducing a new paradigm?

This has become a common view, not just out here in Asia, but around the world. Many observers believe China has developed a “new paradigm,” a superior economic model that challenges the dominance of Western ideas about economies. But I have a question for tanboontee, and for anyone else who wants to jump in on this discussion – what exactly is this “new paradigm?” From what I can tell, China is employing economic tools that many other countries have tried in the past, with both good and bad results.

But what we've learned from historic examples is that the state-led aspects of "mixed" economies can create as much harm as good. Bureaucratic meddling was a key factor behind Japan's Lost Decade(s) and the Asian financial crisis of 1997. The sickest part of the “mixed” economies in Europe and India was state-controlled industry. And you can make the case that the same is true in China today. The major troubles facing the Chinese economy right now – ballooning property prices and a looming bad loan problem – are a result of bureaucrats thinking they can turn on and off the banking sector like a desk lamp.

For more: China: A New Economic Model? - The Curious Capitalist - TIME.com

US Economy: National debt to be higher than White House forecast, CBO says- by Lori Montgomory

President Obama's proposed budget would add more than $9.7 trillion to the national debt over the next decade, congressional budget analysts said Friday. Proposed tax cuts for the middle class account for nearly a third of that shortfall. The 10-year outlook released by the nonpartisan Congressional Budget Office is somewhat gloomier than White House projections, which found that Obama's budget request would produce deficits that would add about $8.5 trillion to the national debt by 2020.

The CBO and the White House are in relative agreement about the short-term budget picture, with both predicting a deficit of about $1.5 trillion this year -- a post-World War II record at 10.3 percent of the overall economy -- and $1.3 trillion in 2011. But the CBO is considerably less optimistic about future years, predicting that deficits would never fall below 4 percent of the economy under Obama's policies and would begin to grow rapidly after 2015.

Deficits of that magnitude would force the Treasury to continue borrowing at prodigious rates, sending the national debt soaring to 90 percent of the economy by 2020, the CBO said. Interest payments on the debt would also skyrocket by $800 billion over the same period.

For more: National debt to be higher than White House forecast, CBO says - washingtonpost.com

Future of Airbus A400M is safe for now

A tentative agreement has been reached in the fight over additional financing for the much-delayed military transport plane A400M, the Spanish defense minister said on Wednesday.

"We reached an agreement in principle between the seven nations in the project and EADS," said Carme Chacon, referring to the European Aeronautic Defense and Space Company, parent company of A400M manufacturer Airbus. "The Airbus project will be a success for Europe."

Chacon did not give any details as to how the countries would resolve the financing dispute surrounding the late and over-budget project, but added that more information would be released on Thursday, following an EU defense meeting in Mallorca.

For more: Future of Airbus A400M is safe for now | Europe | Deutsche Welle | 24.02.2010

Battle Lines Drawn Over CDS In Europe

European governments are pushing forward with a proposal to limit credit default swaps (CDS) on sovereign debt, but it remains to be seen if financial institutions will push back on the measure.

The European Commission summoned representatives from banks, hedge funds, crediting rating agencies and regulatory bodies to a meeting in Brussels Friday, to discuss the measures needed to rein in speculation in the derivatives markets.

"A ban on sovereign debt CDS may not be a panacea in putting an end to speculative bets against the external debt of a country, but it can be a helpful step in cooling the current strong negative sentiment against the most heavily indebted Eurozone countries," according to Anthony Karydakis, an economics professor at NYU's Stern Business School.

Note EU-Digest: Its high time something gets done to put some clarity into the nebulous financial markets.

For more: Battle Lines Drawn Over CDS In Europe - Forbes.com

Too Much Sex? No Such Thing -- Why Sex Addiction Is Total B.S.

American befuddlement over matters of sex is on the increase, in spite of the fact that one can hardly imagine the subject becoming more befuddling to the people of the US than it already is. Sex addiction has of course been a malaprop from its first usage. Addiction was originally and properly defined as a physiological dependence on a substance to which the body had grown accustomed, such as alcohol, nicotine, heroin and various other drugs.

Sex addiction has of course been a malaprop from its first usage. Addiction was originally and properly defined as a physiological dependence on a substance to which the body had grown accustomed, such as alcohol, nicotine, heroin and various other drugs.

For more: Too Much Sex? No Such Thing -- Why Sex Addiction Is Total B.S. | | AlterNet

Foreigners visiting the US will now have to pay a $ 10.00 tax for the "priviledge"

President Barack Obama signed a bill Thursday that imposes a $10 fee on foreign travelers to the U.S. The funds will be combined with a $100 million private-sector fund raising campaign to market and advertise international tourism.

U.S. Rep. Harry Mitchell, a Democrat representing Scottsdale and Tempe, and the U.S. Travel Association backed the Travel Promotion Act. They hope the foreign tourist tax and private-sector contributors will help market the U.S as a tourist destination.

Post-9/11 travel rules, anti-American sentiment stemming from the Bush administration and the poor global economy all have discouraged travel to the U.S. in recent years.

Note EU-Digest: the name this bill carries does not reflect its main purpose which is to collect money up front from foreigners for the "priviledge" to visit the USA. It certainly will not be considered an incentive by foreign tourists.

For more: Obama signs Travel Promotion Act - Phoenix Business Journal:

Germany passes budget with record debt

The first budget passed by Germany's new ruling coalition of Christian Democrats and Free Democrats - doubles the record debt set in 1996.

The original plan for the 2010 budget foresaw 85.8 billion euros in net debt, but assumed economic growth of just 1.2 percent, and higher jobless numbers. The budget that passed calculated 1.4 percent growth and fewer jobless. Altogether, Berlin has set its sights on spending 319.5 billion euros in 2010, with 28.3 billion of it going to new investment.

Germany passes budget with record debt | Germany | Deutsche Welle | 05.03.2010

Greece is reaping what it has sown - by Kat Christofer

Despite 75% of Greeks saying that drastic cuts are necessary and that they oppose strikes during a crisis, protesters took to the streets of Athens within hours of austerity measures being announced on Wednesday. This predictably escalated to another strike today that has disrupted travel and public services. There is also no denying a need to clean up government mismanagement and a black economy estimated at 30% GDP, but the most obvious bulge in the budget concerns a Greek public sector administration that wastes €18bn annually and ranks least efficient of 23 OECD countries. The International Labour Organisation logged 1,022,100 employees in 2008, accounting for 22.3% of the total workforce, while other countries do the same job with just 14%. Greek civil servants often get jobs through connections and admit IT illiteracy , yet salaries and pensions increased 30% and the public sector wage income bill jumped 88% since 2001, far above the rate of GDP growth or productivity. Public sector employees cannot be fired, so the government's only option was to reduce salaries and supplements.

It is true that the whole world has problems, but Greeks like to point out that they work to live, while the rest of us live to work. This alone is enough to anger nations like Germany, which funded the majority of EU subsidies collected by Greece as top beneficiary; and America, whose tourists spend the most money per trip.

Note EU-Digest: Its time to tighten your belt Greece. You can't have your cake and eat it too...

Greece is reaping what it has sown | Kat Christofer | Comment is free | guardian.co.uk

The Financial Market Swindle Continues: Banks' Record Profits Are a Political Matter - by Thomas Piketty

The profits of the ten largest European banks approached 50 billion euros in 2009. When we add in the ten biggest American banks, total profits reach 100 billion euros. Where do these profits come from, when the entire region was in recession in 2009? The most obvious explanation is that, during the crisis, central banks lent banks money at very low interest rates, money the banks used to lend on at higher rates to other actors: households, companies and, most especially, governments.

Let's attempt a small calculation, approximate and imperfect, but that at least has the merit of illustrating the magnitude of the sums in play. Between September and December 2008, the European Central Bank (ECB) and the American Federal Reserve (Fed) created close to two trillion euros of new money (close to ten percent of American and European GDP). This money was loaned to banks at rates of around one percent, for three to six month periods. The loans were more or less renewed throughout 2009: the February 2010 balance sheets of the ECB and the Fed are barely reduced from the record levels achieved at the beginning of 2009. Let's suppose that these 2 trillion euros loaned to the banks brought in an average return of 5 percent, either because they loaned the money at 5 percent to other actors or because that allowed them to reimburse debts that would have cost them 5 percent - which amounts to the same thing. The gross margin realized would be 80 billion euros (4 percent of 2,000), or the equivalent of 80 percent of the profits earned by the banks in 2009. Even allowing for a lesser margin, this would explain a good part of the total profits.

As long as governments now succeed in imposing strict financial regulations allowing the repetition of similar disasters to be avoided, succeed in demanding an accounting (and taxes) from banks ... and, incidentally, succeed in getting rid of the debt they've contracted with the banks.

In the absence of which citizens are likely to quite logically conclude that this whole sequence is an economic absurdity: bank profits and bonuses take off, jobs and salaries remain at half-mast and now we have to tighten our belts to repay public debt, itself created to soak up the bankers financial follies ... bankers who, moreover, have returned to speculating, this time at the expense of governments, with interest rates of close to 6 percent imposed on Irish and Greek taxpayers. Greek taxpayers, who, moreover, have unknowingly paid 300 million euros in fees to Goldman Sachs for dressing up their own public accounts.

For more: Banks' Record Profits Are a Political Matter | NewsClick

Failure is Not an Option For Europe - by Georges Ugeux

All eyes are on Europe to see how it responds to the crisis in Greece. This provides a valuable opportunity for the Eurozone countries to act with solidarity especially since Greece is not asking for money from Germany but rather its political support. The Eurozone's sixteen countries are bound by a written pact, a common currency and central bank but above all a pact a solidarity.

Angela Merkel's challenge now is to manage German public opinion while helping Greece alter its behaviors. However if she does not accomplish this, the other Eurozone countries will not act. It is even more complicated given that much of Greece's debt is in the hands of European banks and default on this debt brings even more strain on these already battered banks. Disengagement with Greece is not an option. This leaves Germany and Greece only one path - forward.

On the market front, the $ 7 billion issue launched yesterday was well received. However it only represents a stabilization of the market perception: at 6.25%, Greece pays twice as much as Germany. Since only a few shorters try to spread the unrealistic rumor that Greece might be in default, the 3% spread is definitely a good remuneration for investors and the highest paid by Greece.

For the complete report: Georges Ugeux: Failure is Not an Option For Europe

Striking a blow for wind power

Nineteen miles off the coast of mainland Denmark, 91 turbines reach 114 meters above the turbulent waters of the North Sea. Together they form Horns Rev 2, the world's biggest offshore wind farm, which can generate enough electrify to power 200,000 homes.

Anders Eldrup is CEO of Dong Energy, which operates Horns Rev 2. He told CNN that Denmark's trailblazing efforts in wind power are the result of the country's energy crisis during the 1970s.

"The Danes were totally dependant on oil imported from the Middle East. Suddenly there was an embargo, so no oil. We learnt the lesson the hard way that you have to have diversified supplies of energy."

Danish company Vestas is the world's biggest supplier of wind turbines. Its president for Northern Europe, Klaus Mortensen, told CNN, "We are very focused on providing the lowest cost of energy. With the present system we are competitive with oil at $50 a barrel."

For more: Striking a blow for wind power - CNN.com

Soccer: U.S. soccer team listless in loss to Netherlands 2-1 - by Graham e L.Jones

Unless someone pokes a sharp stick in them, the Americans remain a team that can be taken, a team that all too often sleepwalks its way through games. This is especially true when it plays in Europe, where the U.S. has won only four of 26 games in the last dozen years. Despite the fact that several starters were playing for the opportunity to make the final U.S. World Cup roster that will go to South Africa in June, far too many players failed to rise to the challenge presented by a Dutch side that itself did not appear especially interested in the game.

The Netherlands did just enough to ensure that it won, accomplishing the feat on a penalty-kick goal by Liverpool's Dirk Kuyt five minutes before halftime and a second goal by AC Milan's Klaas-Jan Huntelaar in the 73rd minute.

With Inter Milan's Wesley Sneijder orchestrating things from the center, the Dutch controlled play, maintaining possession with apparent ease and leaving the U.S. to chase shadows.

For more: U.S. soccer team listless in loss to Netherlands - latimes.com

Three eight meter high waves slam into cruise ship in the Mediterranean

Freak waves that smashed into a Mediterranean cruise ship flooded cabins, broke windows in a restaurant and terrified many travelers in an ordeal that claimed two lives, a passenger said Thursday.

Claude Cremex, 73, of Marseille, France said he was in his cabin resting because of the rough seas when walls of water hit the Cypriot-owned cruise ship Louis Majesty, which was carrying 1,350 passengers and 580 crewmembers off the coast of northeastern Spain.

The company Louis Cruise Lines said the ship was struck Wednesday by three "abnormally high" waves up to 26 feet (8 meters) that broke glass windshields in the forward section.

For more : The Associated Press: Passenger on cruise ship: Wave ordeal terrifying

Why France is selling Warships to Russia - by Bruce Crumley

As Russian President Dmitri Medvedev wound up a three-day state visit to Paris on Wednesday, he had to be pleased with the results. After all, he virtually cinched an unprecedented military deal, bagged a significant gas contract and watched his French host, President Nicolas Sarkozy, dismiss American and European misgivings about his embrace of Moscow by treating Medvedev like his newest best friend forever. There wasn't a whole lot for the Russian leader not to love.

But what's behind Sarkozy's Russophile display? Most observers agree that it marks a rapid acceleration of the pragmatism that has been steadily influencing French policy toward Moscow and that it's a signal that Paris is ready to interact with Russia without the usual qualifiers. Gone are Sarkozy's early promises to make a respect of human rights and democracy central to all French foreign relations. Also gone is Sarkozy's former mocking of realpolitik as a political cop-out of cynical diplomats without principles. France is now eager to work with Russia on common security and economic interests — and it doesn't want to hear any sniping or criticism from other countries, s'il vous plaît.

For more: France-Russia Talks: Europe Wary Over Warship Sale - TIME

Russia and France lose their “ideological border” - RT

President Dmitry Medvedev and his French host President Nicolas Sarkozy stressed their consistency on such burning issues as Iran’s nuclear program, European security reforms and global warming. Medvedev and Sarkozy addressed the media after their bilateral meeting in Paris Monday and summarized the results of the talks.

For more: Russia and France lose their “ideological border” - RT

German Bunds Advance as ECB Holds Key Rate, Stimulus Measures - by Anna Rascouet

German bunds advanced for the first time this week after the European Central Bank kept its key interest rate at a record low and maintained some stimulus measures it had introduced to boost economic growth.

The gains sent the yield to within 2 basis points of its lowest in five months. The ECB will keep offering banks unlimited funds at a fixed rate for maturities of seven days and one month until at least Oct. 12. President Jean-Claude Trichet said the recovery from the worst recession since World War II is “likely to remain uneven.” The ECB cut the main refinancing rate to 1 percent in May.

For the complete report: German Bunds Advance as ECB Holds Key Rate, Stimulus Measures - BusinessWeek

Court jails four Islamists for failed bomb plot in Germany

Two German converts to Islam were jailed Thursday for 12 years each for leading an Islamist conspiracy by four men aimed at blowing up US army bases. Police arrested the four plotters in September 2007 and seized nearly a ton of materials to make bombs before the group could act. The four admitted association with a group called the Islamic Jihad Union (IJU), an affiliate of al-Qaeda, during a 10-month trial in a heavily guarded courthouse in Dusseldorf. Fritz Gelowicz, 31, and Daniel Schneider, 24, both Germans who were brought up as Christians but converted to Islam, were given 12 years, avoiding a maximum 15-year term because they gave detailed evidence about the IJU.

Read more: http://www.earthtimes.org/articles/show/312494,court-jails-four-islamists-for-failed-bomb-plot-in-germany.html#ixzz0hFKEb6Hw

For more: Court jails four Islamists for failed bomb plot in Germany - Summary : Legal General

Technorati Tags: Terrorism, EU, Germany

The Netherlands: Right -Wing anti - Islam Geert Wilders gets 21.6 % of the vote in Almere and ends second in the Hague

Returns posted by the NOS state broadcaster showed Geert Wilders' Freedom Party winning in the town of Almere and coming in second in The Hague, the only two races it ran out of 394 cities and towns that elected local councils. If the outcome is any indication of the parliamentary vote in June, Wilders could emerge as a king-maker on the national stage. The Freedom Party, which Wilders founded four years ago, had not previously put up candidates in municipal elections.

"We're going to take the Netherlands back from the leftist elite that coddles criminals and supports Islamization," said Wilders, who campaigned in Almere for banning Muslim women from wearing headscarves in public.

Political analysts said the results indicated a deadlocked electorate. Unless voters swing in the next few months, no combination of parties is likely to be able to form a working majority in the next parliament. That result would leave Wilders in potent position to push his platform, possibly in exchange for a promise to support a minority Cabinet without actually joining it.

Wilders, 46, faces criminal charges for inciting hatred. He has denounced Islam as antidemocratic and compared the Quran with Hitler's manifesto "Mein Kampf." He has proposed imposing a tax on clothing commonly worn by Muslims, such as headscarves, because they "pollute" the nation.

EU-Digest

Eren Keskin looks at the Armenian and Turkish opinion on genocide

Eren Keskin is vice-president of the Turkish Human Rights Association (IHD) and former president of its Istanbul branch. In 2005, she was awarded the Esslingen-based Theodor Haecker Prize for Civic Courage and Political Integrity. In a column for the Armenian weekly she wrote: " In 2005, there was a conference in Istanbul. The intellectuals who organized this conference, known as “the Armenian Conference,” wrote in the call for papers: “The orders that led to the uprooting of hundreds of thousands of people, and the death and murder of many of them in and after 1915 were, after all, given and executed by a government of the Ottoman Empire (which is not identical to the present Turkish Republic).”

I think that the crucial difference in mentality lies in the parantheses above. I believe that the ideology of the perpatrators of the Armenian Genocide, the Committee of Union and Progress, and its special organization Teskilat-i Mahsusa, are the “founding ideology” of the Turkish Republic. For years I have been arguing that the main problem in Turkey is militarism; that the “red lines” and thereby the fear it creates in society leads to totalitarianism; that miltarism is the biggest obstacle to the de-militarization of “internal and external” politics; and that the legislative, executive, and judicial institutions are wholly under the influence and coercion of militarism. I, and a few other people who agree on this, have been under constant pressure because of our thoughts.

Just when the “normalization of the relationships” between Turkey and Armenia were being discussed, the Turkish High Court made a decision that showed how difficult it was to change things: It ruled that anybody who “suffered mentally” because of what writer Orhan Pamuk had said in an interview—namely, that “we killed 1.5 million Armenians”—could sue Pamuk for pain and suffering. That ruling revealed once again the real stance of the Turkish Republic—that it is still dependent on militarism."

US Justice Department probes Hedge Funds manipulations against euro

The Wallstreet Journal reported that the US Justice Department has asked hedge funds including SAC Capital Advisors LP, Greenlight Capital Inc., Soros Fund Management LLC and Paulson & Co. to retain trading records and emails relating to the euro.The letter requested that the funds "preserve all documents" and electronic communications relating to agreements to trade the euro or communications about agreements to trade currencies, the source said.The Justice Department's letter said the antitrust division "has opened an investigation into agreements among various hedge funds that trade euro contracts," the newspaper quoted a source as saying.

The euro has come under selling pressure during the Greek debt crisis, losing over 10 percent since November, and the newspaper said the request, dated February 26, coincided with its article describing gatherings of hedge fund managers where the euro was discussed.

One of the questions investigators are likely to examine is whether such information-sharing amounts to collusion, the Journal quoted the sources as saying.

The reported Justice Department probe comes at a time when financial institutions are facing scrutiny over their role in the Greek financial crisis.

NOTE EU-Digest: With the proper regulations in place this could not happen. When will these regulations be in place which have been promised by political leaders around the globe since last year.

For the complete report: U.S. probes hedge fund bets against euro: report | Reuters

Soccer: Netherlands - USA: Last chance for US players to impress Bradley

American players hoping to make an impression on U.S. coach Bob Bradley before he picks his World Cup roster have one last chance Wednesday night in Amsterdam playing the Netherlands.

In its final match before the World Cup team gathers in mid-May, the United States plays an exhibition at the Netherlands Amsterdam Ajax stadium, against the world's third-ranked team. The Dutch and Spain were the only teams in European qualifying with perfect records -- the Netherlands was 8-0 and outscored opponents 17-2 in coasting to first place in Group Nine. Even with Robin van Persie still sidelined after tearing ankle ligaments in November, Dutch coach Bert van Marwijk could start Klaas-Jan Huntelaar, Arjen Robben and Dirk Kuyt up front in a stiff test for the U.S. defensive line and goalkeeper Tim Howard.

"My last memory playing Netherlands in Amsterdam Arena was not the best," midfielder Landon Donovan said. "I think we chased the ball for probably 90 minutes, so it's hopefully a little different this time. Hopefully, we have a little more of the game. It's really our last chance against a top, top, team before the World Cup and so we want to make the most of it."

After this game, the Americans gather in mid-May and play exhibitions against the Czech Republic (May 25, possibly in East Hartford, Conn.) and Turkey (May 29 at Philadelphia), with a June 5 exhibition against Australia in Johannesburg also possible. After playing England, the U.S. meets Slovenia on June 18 before finishing the first round five days later against Algeria.

For more: Last chance for US players to impress Bradley - USATODAY.com

AIRBUS: Pentagon launches contest for aerial tanker contract

The Pentagon on Wednesday officially launched a competition to replace its aging, aerial refueling tankers. It released the requirements needed to fulfill a contract potentially worth $35 billion.

Two aerospace giants were expected to vie for the contract to build 179 tankers -- Chicago-based Boeing Co. and a team composed of Century City-based Northrop Grumman Corp. and Airbus parent European Aeronautic Defense & Space Co. The companies have 75 days to submit bids.

In recent weeks, however, Northrop threatened to stay out of the competition, arguing that the requirements may favor Boeing.

For more: Pentagon launches contest for aerial tanker contract - Los Angeles Times

Eurozone inflation drops to 0.9 percent in Feb

Inflation in the 16 countries that use the euro fell in February, official figures showed Tuesday, in a further sign that price pressures remain subdued in the wake of the recession.

Eurostat, the EU's statistics office, said that eurozone prices are estimated to have risen by 0.9 percent in February from the year before. That rate is down from the 11-month high of 1 percent recorded in January.

The decline was unexpected — the consensus in the markets was for inflation to hold steady at 1 percent. No further details were provided, but more information will come when Eurostat publishes its full release on March 16.

For more: The Associated Press: Eurozone inflation drops to 0.9 percent in Feb

EU unemployment rates hold steady

Unemployment in the 27-member European Union held steady in January, the region's statistical office said Monday. The rate of 9.5 percent in January, the region's statistical office said Monday.

The rate of 9.5 percent in January, was unchanged from December, Eurostat said.

In the eurozone, which is made up of the 16 countries that share the euro as currency, unemployment held steady at 9.9 percent in January, the European Union's statistical office said.

For more clickhere : EU unemployment rates hold steady - UPI.com

Greece Set to Outline New Austerity Measures Wednesday - WSJ.com

The Greek government is expected to outline Wednesday a new austerity package of about €4 billion ($5.42 billion) in an effort to cut its huge budget deficit by four percentage points this year, government officials said Tuesday.

"The new package will most likely be announced on Wednesday. First there will be a cabinet meeting to seal the measures and an announcement will follow," one official said.

Another official said Greece's debt management agency is preparing a 10-year bond hoping to raise between €3 billion and €5 billion, taking advantage of the expected positive market reaction after the measures are announced.

For more: Greece Set to Outline New Austerity Measures Wednesday - WSJ.com

Germany's Merkel: Euro Helped Euro Zone Through Crisis

The strength of the euro helped European countries that share the common currency overcome the economic crisis, Germany's Chancellor Angela Merkel said Monday.

"The euro brought us through the crisis," Merkel told attendees of a technology fair in Hannover.

Merkel added that euro zone nations must support the strength of their currency with responsible fiscal policies, and mentioned that Greece, in the midst of a budget crisis, must make tough decisions to steer toward responsibility.

Greece has been under intense pressure from the EU and financial markets since revealing late last year that its 2009 budget deficit was forecast to reach 12.7% of gross domestic product--four times above EU limits.

For more: Germany's Merkel: Euro Helped Euro Zone Through Crisis - WSJ.com

UK's Prudential buys AIG's Asian unit for $35.5B

British insurer Prudential PLC said Monday it will buy the Asian unit of bailed out American International Group Inc. in a deal worth $35.5 billion that will allow AIG to pay back some of the money it owes U.S. taxpayers.

AIG, which was kept alive by a $182.5 billion rescue by the U.S. government in September 2008, will get $25 billion in cash — $20 billion of that from a Prudential rights issue — and $10.5 billion in new shares and securities for the sale of AIA Group Ltd.

The combined group will be the leading life insurer in Hong Kong, Singapore, Malaysia, Indonesia, Vietnam, Thailand and the Philippines, as well as the biggest foreign life insurer in China and India, Prudential said.

AIG said it would use cash from the sale to redeem $16 billion worth of preferred interests held by the Federal Reserve Bank of New York and to repay about $9 billion to a Fed credit facility. Prudential securities would be sold over time to make additional payments on debt, AIG said.

For more: UK's Prudential buys AIG's Asian unit for $35.5B - Yahoo! News

The EU approves emergency aid of three million Euros for Chile

The European Commission (EC) has approved three million euros of emergency aid in response to the situation caused by the earthquake that shook Chile on Saturday and has caused over 300 deaths.

“As an act of solidarity with the Chilean people, we have immediately earmarked three million euros for the organisations working on the ground there, so that they can provide help in the first and most critical days after the earthquake”, the EU Humanitarian Aid Officer, Kristalina Georgieva said in a press release.

For more go to: PENKI.LT::News: News: Abroad

EU Urges New Greek Cuts - by Ingrid Melander and Harry Papachristou

The European Union urged Greece on Monday to agree additional austerity measures within days to tackle a fiscal crisis that has shaken the euro zone and promised to help Athens overcome its debt problems.

EU Economic and Monetary Affairs Commissioner Olli Rehn said after a day of talks with Greek leaders that financial markets would be convinced the country will meet its deficit-reduction targets once they saw precise new measures.

Hours after Rehn's comments, the office of Greek Prime Minister George Papandreou announced a cabinet meeting for Wednesday to "take decisions about the economy."No further details about the meeting were provided, but the announcement appeared to signal that Athens is poised to take new savings measures in the hopes of winning EU support, most likely in the form of guaranteed debt purchases.

For the complete report: EU Urges New Greek Cuts - ABC News

StreetInsider.com - Buffett Says U.S. Economic Recovery "Very, Very Slow"; Talks With CNBC for 3 Hours

The "Oracle of Omaha" Warren Buffett said on Monday that the economy is slowly improving, but as consumer spending remains low, so will job growth.

"It's getting better, but at a very, very slow rate," Buffett said. "The jobs will come back, but it won't be fast."

Buffett, the CEO of Berkshire Hathaway Inc. (NYSE: BRK.A) (NYSE: BRK.B) appeared on CNBC for three hours Monday morning, where he tackled a variety of topics from the economic recovery to health care reform. The billionaire investor also talked about the eventual successors at his company.

For the complete report: StreetInsider.com - Buffett Says U.S. Economic Recovery "Very, Very Slow"; Talks With CNBC for 3 Hours

Americans Prefer Online News After TV, Report Finds - by Ian Paul

According to the authors of a study, Pew Research Center's Pew Internet & American Life Project, the Internet is now the third most popular news platform, behind local television news and national television news.

For more: Americans Prefer Online News After TV, Report Finds - PCWorld

Almere Municipal Elections - test case of what lies ahead for Netherlands Politics

by- Rick Morren

The latest political poll published in the Netherlands shows left and right wing parties would each control about 50% of the vote if a general election was held today. Obviously this would mean a prolonged cabinet formation requiring several parties to form a coalition government. In another poll taken right after the fall of the Balkenende coalition government on February 20, the results also showed that the neo-conservative PVV ( Party For Freedom) had become the Netherlands largest party.

Since general elections won't be held until June 9 this year it won't become immediately apparent what this has done to the Dutch political landscape. This means that all eyes are now fixed on Wednesday's Dutch municipal elections, where the controversial far-right PVV of “Muslim hater” Geert Wilders will participate in the cities of the Hague and Almere.

Wilders chose Almere and the Hague because these two cities, in addition to Rotterdam and Amsterdam, have the largest concentrations of immigrants. In the case of Almere ( population 170.000 plus) the population is composed of 38 percent Suriname immigrants, 10 percent Turkish, 8 percent Moroccan, 3 percent from the Netherlands Antilles, 2 percent immigrants from other countries and 39 percent of Dutch origin. Together these immigrants come from some 181 nations, making Almere not only one of the most modern, because of its avant-garde architecture, but also one of the most culturally diverse cities in Europe.

Wilders immediately went on the attack when he recently spoke in Almere , “dear people, first, a general notice. If people from the PvdA (Labour party) are present here tonight: here is a message for you. At the end of the speech, I will hand out my speech in Arabic and Turkish so that you can understand what I have said, because the party of Wouter Bos speaks mainly Arabic and Turkish. By now you will certainly have read about the PvdA election pamphlet being distributed in Arabic and Turkish. But do you also know what it says? Have you been able to read it? Probably not. Well, I have tried to translate it for you, and it says something like this: “immigrants bring over your whole family, because money grows on trees here” and he went on, “the PvdA takes good care of its voting-cattle.” Wilders also announced in Almere that if his party wins there he will forbid the wearing of headscarves in public buildings, forbid the building of new Mosques and cut the municipal civil service staff budget by 15 percent.

Obviously, with such large concentrations of immigrants in Almere and the Hague, Mr. Wilders is taking a calculated risk by expecting that the immigrants will not turn out in mass to vote against his party. Right now all the bets seem to be in his favor. Statistics from past elections show that most immigrants have stayed away from the voting booth when it comes to election time. If this happens again during the March 3 municipal elections, preliminary polls show that the PVV of Wilders' will win 30 percent of the vote in Almere, followed by the Labour Party ( Socialist) with 20 percent. In case, however, if the D66 (Democrats 66) and the CDA (Christian Democrats) together get the expected 35 percent of the vote, they could probably still stop Geert Wilders in getting a foothold in the Almere's municipal council, by forming a coalition with the PvdA Labour Party. But nothing is certain.

The word that must go out to all immigrants in the Netherlands, and specifically those in Almere and the Hague is that they have to use their democratic right to vote this Wednesday. Immigrants have chosen to live in the Netherlands, where everyone's vote is counted. No one is excluded. By using their right to vote, legal immigrants by their numbers and convictions can participate in stopping any onslaught of double standards and fear in the Dutch political system. John Kennedy once said: "The great enemy of truth is very often not the lie, deliberate, contrived and dishonest; but the myth, persistent, persuasive and realistic".

EU-Digest

EU Royalty - Isn't it time to close down those costly symbols of the past?

Meetings between the Spanish king and government officials are usually kept under wraps - but recently the royal palace has embarked on a campaign of openness in an attempt to cement support for the monarchy. Spaniards previously knew little about whom 72-year-old King Juan Carlos received at his office, with the Zarzuela palace only releasing information on high-level royal activities with photo opportunities. However, the monarchy's position is deemed by some to have become weaker in recent years, and now "Juan Carlos wants all Spaniards to know about his work," as new palace communications chief Ramon Iribarren told the daily El Pais. Media have consequently been able to report on the recent meetings held between the king and Economy Minister Elena Salgado, as well as with bank and trade union representatives.

Note EU-Digest: Given the political changes and economic realities being realized by the EU, one should seriously start looking at the effectiveness versus the taxpayer investments, to sustain the nine remaining EU member state monarchies in the EU. Isn't it time to retire all these royals who basically produce very little return on the money invested in them by the taxpayer?

For more: Spain's royal palace opens up to improve image - Feature : Europe World