Germany, France Find Need For Economic Governance In EU27

German Chancellor Angela Merkel and French President Nicolas Sarkozy agreed that more integrated economic governance is needed in the 27 nations of Europe. Both Germany and France expressed determination to speak with one voice.

Two leaders also noted that creating new institutions will not solve the problem. Merkel and Sarkozy talked to media after a summit on Monday, which was initially supposed to start in Berlin a week ago.

Merkel and Sarkozy in a joint letter will urge the chairman of G20 meeting to speed up reforms in financial regulation. They will also seek support for a financial transaction tax and bank levy. If a nation impose tax unilaterally, banks will move to other nations that have no such taxes.

For more: Germany, France Find Need For Economic Governance In EU27 | Daily Markets

U.S. once again cast as world's consumer of last resort

As Europe cuts spending and China again floods the globe with low-cost goods, Americans are once more being cast as the world's consumers of last resort.

With U.S. unemployment still near 10% and workers' incomes largely flat, that may be a prescription for fresh trouble. One factor keeping the world out of balance, the Obama administration and many experts contend, has been China's policy of keeping the value of its currency artificially low, allowing the Asian giant to keep churning out exports.

In a surprise move Saturday praised by President Obama, Beijing said it would allow more flexibility in exchange rates. But the Chinese statement, which was light on details, suggested that any change would be gradual. How fast the global economy can evolve will also turn on how much spending patterns change in the biggest economies, especially America's.

For more: U.S. once again cast as world's consumer of last resort - Los Angeles Times

Sarkozy whirls among European powers to coordinate stance

Within a week, French President Nicolas Sarkozy made a whirlwind visit to Germany, Britain, Russia and Brussels where EU leaders just had their summit, trying to tune up and harmonize European voices on international economic governance.

The attempt was made right before the G20 and G8 summits on economic governance.

Regarding bilateral issues of political ties, security consensus and business contracts, the French president got almost all he wanted, but in terms of Europe-wide economic governance and global financial regulation, Sarkozy had both gains and losses.

For more: Sarkozy whirls among European powers to coordinate stance

Italy alerts Europe over blue German mozzarellas

Mozzarella cheese imported from Germany has turned up blue in some shops in the north of the country, triggering a Europe-wide alert by the health ministry. The ministry alerted European and German authorities after police seized about 70,000 mozzarellas in northern Italy which had been made at a German factory, it said in a statement.

The blue mozzarellas could be caused by bacteria, newspapers said today, quoting tests by a Venice specialist institute. The bacteria does not appear to be hazardous to health, they added.

For more: Italy alerts Europe over blue German mozzarellas | WORLD News

Does anyone have a view on how Norway fits into the global picture?

Here in Norway, the crisis is over, and never really started. We’ve divested ourselves of most parts of our industrial-export companies over the last decades, and are currently mainly selling oil and fish, produced at competitive production costs. The state is a net buyer of foreign debt, and government deficit spending is financed by over-consuming the interest from the 0.5 trillion USD ‘oil fund’, at a few ten-billion USD a year. Hardly a critical situation as I see it for now.

Privately held debt is fairly high, with the banks being the prime debtors (bank-issued debt is at about USD50k pr citizen - source http://www.ssb.no/brutgjeld/tab-2010-06-…). At the peak of the crisis, the banking-sector was bailed out as ‘too big to fail’, so that’s certainly a risk factor.

I’d also worry about the energy-dependency of the fish-industry, but I have not yet had any chance to investigate what’ll happen there if oil-production drops significantly.

For more: Does anyone have a view on how Norway fits into the global picture? | The Market Financial | Stock Market & Wall Street News

Estonia Wins EU Clearance to Switch to Euro in January

Estonia won the go-ahead to become the 17th country using the euro starting in January, as European Union leaders set aside the central bank’s concerns that the Baltic state risks higher inflation.

The decision to admit Estonia, a former Soviet republic that entered the EU in 2004, reflects the EU’s determination not to let the Greece-fueled debt crisis in western Europe derail plans to widen the currency bloc to the east.

EU leaders lauded Estonia’s economic management, hailing “the convergence it has achieved, based on sound economic and financial policies,” according to a statement prepared for today’s Brussels summit.

For more: Estonia Wins EU Clearance to Switch to Euro in January - BusinessWeek

EU to Push Levies on Banks, Financial-Transaction Tax at G-20

European Union leaders vowed to push for global taxes on banks and financial transactions, setting the stage for a conflict over worldwide regulation at next week’s Group of 20 meeting.

With Germany, Britain and France pledging to impose levies on their own banks and to clamp down on financial speculation, the EU called for global taxes that have run into opposition from G-20 powers such as China.

“We want a system of levies and taxes for financial institutions to ensure fair burden-sharing and rein in systemic risks,” German Chancellor Angela Merkel told reporters after an EU summit in Brussels yesterday. “We also want a global system.”

EU to Push Levies on Banks, Financial-Transaction Tax at G-20 - BusinessWeek

France, Russia vow to promote global role of G-20

French President Nicolas Sarkozy said Saturday that he wanted to work with Russia to give developing nations a larger say in how to regulate the global economy.

Global financial institutions such as the World Bank and International Monetary Fund — created at the Bretton Woods conference in New Hampshire 1944 — are outdated and must be replaced, Sarkozy told an economic forum in St. Petersburg hosted by Russian President Dmitry Medvedev.

"We all need to think about the foundations for a new international financial system. We've been based on the Bretton Woods institutions of 1945, when our American friends were the only superpower," Sarkozy said. "My question is: Are we still in 1945? The answer here is, 'no,'" he said.

For more: The Associated Press: France, Russia vow to promote global role of G-20

Key US economic index shows slower recovery

A key index tracking the US economy rose slightly in May after being flat a month earlier but recovery from recession is expected to slow, the Conference Board said on Thursday.

The business research firm's forward-looking leading economic index (LEI) rose 0.4 percent after April's 0.1 percent decline was revised to no change.

The financial components made the largest positive contributions to the index, more than offsetting the substantial negative contributions from stock prices and building permits, the board said.

Note EU-Digest: the underlying problem of the US economy is that it is still based on being consumer driven and that no-one is seriously addressing that problem.

For more: Channel NewsAsia - Key US economic index shows slower recovery - channelnewsasia.com

Time to Get Serious About Energy - by Dirk van Dijk

In his speech on Tuesday night, President Obama called for the country to move towards more renewable sources of energy and for limiting our dependence on oil. That call has a “Groundhog Day” quality to it, as every president since Richard Nixon has essentially made the same plea, and the same promise to do something about it. However, ever since the days of Nixon, our use of oil, and particularly imported oil, has done nothing but go up.

The simple fact is that we use carbon-based fuels because they are the cheapest form of energy around. Cheap if you only count the direct costs of extraction and getting the energy to the consumer. There are, however, vast costs that are not captured in the price. The recent and ongoing BP (BP - Analyst Report) oil spill disaster in the Gulf of Mexico is simply one aspect of it. The gains from drilling for oil in deepwater go mostly to the companies that drill for it, and indirectly to consumers of the fuel. The costs are largely borne by the wider society.

If the price of a gallon of gas were high enough, people would start to buy more fuel efficient cars, and the automakers would rush to build ever more efficient vehicles. If there were a significant price on carbon, you would not have to tell utility executives not to build new coal fired plants and build wind farms instead -- they would do so because it would be in the clear self interest of their shareholders.

For more: Time to Get Serious About Energy - Zacks.com

Netherlands' social democrats renew push for purple coalition

The social democratic Labour Party (PvdA) on Friday renewed its calls for a centre-left "purple" coalition to govern the Netherlands, after efforts to create a new right-leaning government featuring the far-right Islamophobe Geert Wilders failed on Thursday.Such a centre-left government would feature the PvdA and the liberal Party for Freedom and Democracy (VVD) as main partners, along with the smaller left-liberal Democrats 66 and GreenLeft parties.

For more: Netherlands' social democrats renew push for purple coalition | Earth Times News

Spain optimism and stress tests boost euro assets

International Monetary Fund (IMF) Managing Director Dominique Strauss-Kahn gave the Spanish government a vote of confidence, saying on a visit to Madrid that its reform plans went "absolutely in the right direction."

The comments and Spain's readiness to make public resilience tests for its banks allayed concerns the country might have to tap a 500 billion euro ($613.2 billion) safety net set up to halt contagion in the euro area after a bailout of Greece.

The euro held near a three-week high against the dollar close to $1.24, well above the four-year low of $1.1876 it hit on June 7 and good for a weekly gain of about 2 percent -- its biggest since May 2009.

For more: Spain optimism and stress tests boost euro assets | Reuters

Euro steadies near 3-week highs, dollar on backfoot

The euro retained gains near $1.24 as investors liquidated short positions after a robust response to Spanish bond auctions, which also encouraged some investors to shift funds back to euro zone bonds from safe-haven U.S. Treasuries, traders said.

Peripheral European debt markets calmed after the auction, whetting investors' appetite for riskier assets and supporting higher-yielding currencies like the Australian and New Zealand dollars which hovered near one-month highs.

For more: Euro steadies near 3-week highs, dollar on backfoot | Reuters

EU calls for tough new rules on 'economic governance' .

European Union leaders on Thursday agreed to bring in tough new rules on policing one another's economies, in a bid to prevent further crises of the kind which has hit Greece.The EU has been in full crisis-fighting mode since the beginning of the year as it scrambled to shore up the euro and fight off market pressure on members such as Greece and Spain. Leaders are now keen to restore the bloc's reputation for economic strength."Everybody now acknowledges that economic decisions in one member state concern us all," the President of the Council of EU member states, Herman Van Rompuy, said after the meeting.

For more: EU calls for tough new rules on 'economic governance' - Summary | Earth Times News

Euro Surges as Spanish Bond Sales Draw Higher Investor Demand

The euro strengthened above $1.24 for the first time in almost three weeks as increased demand at Spain’s bond auction eased concern about Europe’s debt crisis.

The common currency pared gains as stocks retreated after a report showed the Federal Reserve Bank of Philadelphia’s factory index slumped in June. The dollar reached the lowest level versus the yen in three weeks as the number of Americans seeking jobless benefits last week unexpectedly rose. The Swiss franc strengthened against the euro after the nation’s central bank said deflationary risks have “largely disappeared.”

Note EU-Digest: basically the dollar is overvalued and has just a shadow of its past strength.

For more: Euro Surges as Spanish Bond Sales Draw Higher Investor Demand - BusinessWeek

Netherlands: Finance experts join right-wing coalition talks; Wilders, Rutte keep mum

Finance experts, including the president of the Dutch central bank, have been invited for talks with the negotiator putting together a new coalition government, the Telegraaf reports on Wednesday.

The paper says Coen Teulings of the government's macro-economic policy unit, caretaker finance minister Jan Kees de Jager and the central bank's Nout Wellink will meet Uri Rosenthal on Wednesday morning.

They will be ask to detail the difficult financial and economic situation facing the Netherlands, which queen Beatrix referred to when she appointed Rosenthal to the job. The negotiator is looking to put together a right-wing coalition made up of the VVD, anti-Islam PVV and CDA. The VVD emerged as the biggest party in last week's general election by just one seat and the PVV made the most gains.

Support for the CDA almost halved. But Wilders needs to get Verhagenfrom the Christian Democrats on board if he is to be in government. The other parties have all ruled out a coalition with the PVV which wants an end to non-western immigration and a ban on the Koran.

For more: DutchNews.nl - Finance experts join coalition talks; Wilders, Rutte keep mum

Soccer and Nationalism: Why I'm glued to the World Cup - by Scott Herhold

Every four years, during the World Cup, I adopt the garb and the gab of a soccer fanatic. I was glued to the Ghana-Serbia match. I got up early to watch Japan and Cameroon. I've watched endless reruns of the England-USA tie.

And I find myself getting deeply immersed in the details. Was that handball on the Serbian player properly called in the penalty box? (It was.) Are the refs ignoring the scourge of diving? (No.). Where did the Germans get those moves? (OK, the Australians were bad, but the German coach has style.)
Why is that I'm indifferent to soccer most of the time but passionate during the World Cup? Why do I turn from a mild-mannered Dr. Jekyll to a howling Mr. Hyde once I hear the air horns in the stadium.


For more: Herhold: Why I'm glued to the World Cup - San Jose Mercury News

The Euro Is Safer than Ever – Here's Why - Jacob Funk Kirkegaard

There has been little love by financial markets for European leaders these days. But one has to wonder about the level of disdain reflected in recent surveys of City of London economists and global investors showing agreement about the likelihood of a breakup of the euro-zone. How can a majority of 25 City of London economists conclude that “a euro break-up of greater or lesser proportions during the next Parliamentary term” – within five years , in other words – is likely?

In reality, there is next to no chance that the euro-zone will break up as a result of the current economic crisis in Europe, or as a result of a probable Greek sovereign default. There are several reasons why. First, leaving the euro would impose a catastrophic cost on any nation that tries to do so out of economic weakness. Even euro-zone countries that default on their debts would be far better off inside the euro-zone than outside (crucially, euro-zone members cannot be kicked out), because in the longer-term they would still have access to the deep liquid euro-zone financial markets.

Any euro-denominated interest rate imposed by financial markets even after a default would be a lot lower than interest rates on, say, new drachma-denominated bonds. Moreover, under the Lisbon Treaty (which will not be revised in even the medium term) leaving the euro zone cannot be done without quitting the EU entirely. Such a move would entail a nearly complete regional political isolation and probably exposure to the EU’s external trade barriers as well.

For more: Kirkegaard: The Euro Is Safer than Ever – Here's Why - CNBC

Turkish Gaullism and Turkey’s “Balancing Role”

Thomas Friedman manages to write an entire column on the deterioration of U.S.-Turkish relations and never once mentions the Iraq war, the PKK (which has revived since the start of the Iraq war), the weak U.S. response to the flotilla raid, or the Tehran nuclear deal that he and the administration both dismissed with contempt. If we’re apportioning blame for what has encouraged Turkey on its more independent course, we can assign quite a bit to both the Bush and Obama administrations, but that is not the only thing that interests me here. Friedman passes over U.S. mistakes in silence, because this makes it easier to portray Erdogan as the sole culprit responsible for wrecking U.S.-Turkish relations and it helps the misleading “the Islamists are coming!” narrative take hold.

A useful counterpoint to Friedman is a recent column by Ömer Taspinar, who provides what seems to me to be one of the more persuasive explanations for why the Turkish government has been acting as it has over the last several years. Taspinar starts by questioning the handy, potentially misleading Islamic/secular distinction that practically every Western observer, including myself, has used at one time or another:

For more: Eunomia

EU leaders to sign up to tougher economic discipline - by Simon Taylor

EU leaders will tomorrow (17 June) seek to agree new measures to enforce better economic discipline when they meet in Brussels for a one-day summit.

They are expected to agree on the need for tougher sanctions for countries that fail to respect the limits on public deficits and debts. They will also agree to provide details about their national budget plans to the European Commission and to each other for review.

The focus on improving economic governance follows the recent sovereign debt crisis that started in Greece and spread to other eurozone countries as investors shunned government bonds because of fears they might default. Angela Merkel, Germany's chancellor, has called for a new “stability culture” where governments keep deficits under control in order to support the euro.

For more: EU leaders to sign up to tougher economic discipline | Policies | EU governance | Council of Ministers | European Voice

France To Raise Retirement Age To 62 To Help Cut Debt

The French government Wednesday outlined pension reforms, including an increase in the retirement age to 62 from 60 and tax increases, in a bid to balance the books of France's pension scheme by 2018. The move will test the resolve of Nicolas Sarkozy's government to pass a number of structural reforms.

For more: UPDATE: France To Raise Retirement Age To 62 To Help Cut Debt - WSJ.com

EU Economy: Three more EU members asked to cut deficit

The European Union (EU) Tuesday asked three more member states to reduce their deficits below the 3-percent ceiling set by the bloc's budget rules.

The European Commission, the EU's executive arm, said that Cyprus, Denmark and Finland ran excessive deficits and recommended different deadlines for the three countries to bring their deficits and debt levels down according to the EU's Stability and Growth Pact.

European Commissioner for Economic and Monetary Affairs Olli Rehn said: "The entry into the excessive deficit procedure of these countries, which until recently had surpluses, shows the severity of the economic and financial crisis we have gone through. "

For more: Three more EU members asked to cut deficit

EU demands 'extra' 2011 deficit measures of Spain

Europe on Tuesday told Spain it must introduce "extra" measures in its 2011 budget if it is to restore its public deficit to the EU limit of three percent of GDP by a 2013 target. "For 2011, Spain will need to specify concrete measures of about 1.75 percent of GDP to reach the deficit target of six percent in 2011," the EU's economic and monetary affairs commissioner Olli Rehn said in Strasbourg, France, at the European parliament. So far Spain's deficit busting measures for next year only amount to 1.00 percent of output, according to Rehn's spokesman.

"Extra measures" need to be "specified in the 2011 budget," he stressed.

Spain was one of 12 countries, including Portugal, whose existing deficit reduction plans were considered, and broadly approved, by the EU Commission.

For more: AFP: EU demands 'extra' 2011 deficit measures of Spain

Turkey and the West: Everybody Take a Valium - by Doug Sarro

Yes, Ankara condemned Israel's raid on an aid flotilla bound for Gaza, and yes, Turkey voted against imposing a new round of sanctions on Iran. But this doesn't mean Turkey and the West have parted ways.

First things first -- Turkey's stance on Gaza hardly splits it off from the West. British Prime Minister David Cameron called the raid "completely unacceptable," and he, along with the presidents of France and the United States, wants an investigation into the raid and has called on Israel to loosen its Gaza blockade.

It's true that Turkey has been strongly critical of Israel since its 2008-09 incursion into Gaza, but this doesn't mean it or its leadership is anti-Israel. In fact, Prime Minister Recep Tayyip Erdogan doggedly pursued Middle East peace before the Gaza incursion, working for two years to try and stage-manage a rapprochement between Israel and Syria. This effort had to be shelved after Israeli troops entered Gaza.

Note EU-Digest: the Netanyahu government is a coalition of pretty hard line radicals just like Hamas is on the other side of spectrum . Mr. Erdogan regardless of his shortcomings has at least given this very explosive situation, which can never be solved by endless and fruitless negotiations supported by the US and the EU into a more aggressive confrontational mode and force the US and the EU to change course on this issue.


For more: Doug Sarro: Turkey and the West: Everybody Take a Valium

Offshore floating wind turbines raise environmental, technical questions

The strategy here is to create a network of floating wind farms 10 to 50 miles offshore, where the winds are strong and -- here's the rub -- the water is very deep. A floating turbine that is sited in water that is thousands of feet deep has never been engineered, much less built and tested.

While there are thousands of offshore wind turbines in northern Europe, they are anchored (not floating) in water that, at most, is hundreds of feet deep, not thousands. Is a sustainable deepwater floating wind turbine possible? Maybe. Maybe not.

A journalistic hard look at this proposal would have also included what little is known about the potential environmental impacts of a flotilla of offshore wind turbines. These turbines, in addition to generating electricity, will generate underwater noise and vibration.

For more: Maine Voices: Offshore floating wind turbines raise environmental, technical questions | The Portland Press Herald / Maine Sunday Telegram

Offshore Windparks:: Vestas introduces its newest product to the Chinese offshore market

Vestas China is proud to once again co-sponsor Offshore Wind China 2010 in Shanghai and to participate in China’s development of offshore wind energy.

Vestas is ready to develop China’s rich offshore wind resources with its abundant experience in offshore wind energy projects and cutting-edge technology.

This readiness and commitment is underlined by being the co-sponsor of Offshore Wind China 2010 Conference and Exhibition which takes place at the Shanghai International Exhibition Center.

Vestas introduces its newest product to the Chinese offshore market - Metal Supply

US discovers $1 trillion in untapped mineral deposits in Afghanistan - Telegraph

Afghanistan has up to $1trillion worth of untapped mineral resources which could revolutionise the country's economy and perhaps even the war, American officials have said.

Afghan officials believe the mining sector will eventually become the backbone of the now tiny Afghan economy and provide hundreds of thousands of jobs.

The economy is currently dominated by aid money and drug smuggling, raising fears the coalition's investments in building the Afghan army and state are ultimately unsustainable.

For more: US discovers $1 trillion in untapped mineral deposits in Afghanistan - Telegraph

Soccer - the Netherlands: Van Persie shows glimpses of old form as Netherlands beat Denmark at World Cup

Netherlands striker Robin van Persie showed enough of his old form in Monday's victory over Denmark to prove that he has fully recovered from a right ankle injury.

In front of a near capacity crowd at Soccer City, the 26-year-old Dutchman was a consistent thorn in the side of the Danish team. And it was his cross that led to the own goal that broke the deadlock a minute into the second half of the 2-0 win.

For more: The Canadian Press: Van Persie shows glimpses of old form as Netherlands beat Denmark at World Cup

Merkel, Sarkozy meeting in Berlin ahead of EU summit

Chancellor Angela Merkel is holding talks with French President Nicolas Sarkozy in Berlin before a European Union summit later this week. The two leaders were meeting Monday to co-ordinate their strategies as the continent considers how to curb the eurozone debt crisis.

Despite recent tension over bailout packages for Greece and the eurozone, the two wrote a joint letter last week urging the European Commission to speed up efforts to regulate financial markets. Merkel and Sarkozy say the bloc should consider prohibiting the naked short selling of some shares and bonds.

For more: The Canadian Press: Merkel, Sarkozy meeting in Berlin ahead of EU summit

Euro strengthens amid upbeat data

The euro climbed above 1.22 dollars on Monday as recent upbeat data sparked hope that the eurozone debt crisis will not derail the global economy, analysts said. Sterling meanwhile rallied after the new British government cut state borrowing forecasts, which helped to offset a slashing of growth estimates.

The European single currency rose to 1.2232 dollars from 1.2106 dollars in New York late on Friday. Against the Japanese unit, the dollar increased to 91.88 yen from 91.61 yen.

For more: AFP: Euro strengthens amid upbeat data

Int’l law expert Aral: Israel not as untouchable as before

Berdal Aral, an international law expert who teaches at İstanbul’s Fatih University, has said that Israel has been increasingly criticized by the world community and that it is more vulnerable than before because of its actions.

For more: Int’l law expert Aral: Israel not as untouchable as before

EU ready to intensify pressure on Israel to lift Gaza blockade

The European Union is expected to intensify pressure on Israel to ease its blockade of the Gaza Strip when its foreign ministers meet in Brussels tomorrow amid calls to adopt a robust position.

Spain, which currently holds the EU's rotating presidency, will press for a vigorous approach with support from France, Italy and the UK. José Luis Zapatero, Spain's prime minister, called at the weekend for a "strong joint EU position on the siege".

Zapatero said his foreign minister, Miguel Ángel Moratinos, would argue at the meeting that the EU should "stand up for the end of the blockade on Gaza and that it extends all its political and diplomatic capacity to reach that goal".

For more: EU ready to intensify pressure on Israel to lift Gaza blockade | World news | The Guardian

The Netherlands are a bellwether for Europe - by Keith Knutson:

The Netherlands is a small corner of the European continent, but it has made big contributions to developments in the modern world.

In the 17th century Dutch strength in trade and finance, shipping and technology, made the small republic a major power. This was based upon the population's remarkable innovative capacities. I was reminded of this society's ingenuity in the Rijks (state) museum, viewing the works of their greatest artists - and Europe's as well? - Rembrandt, Reubens and Vermeer. Artists may not be fundamental to achieving political and economic greatness, but great societies inevitably produce them. The Dutch were the first in Europe to legalize egalitarianism, even before the French Revolution. Their lack of deference to either monarchy or aristocracy led to an absence of the social hierarchy in other great powers of the time. And the weakness of ecclesiastical authority led to societal curiosity and openness that others envied.

Whereas political life in Holland was once a model of stability, in the 21st century the country has been convulsed. In 2002 the anti-immigration politician Pim Fortuyn was assassinated. Then in 2004, Theo Van Gogh, descendent of the renowned artist, and producer of a documentary critical of Islam, was viciously murdered. Afterward, the mayor of Amsterdam, Job Cohen, a secular Jew, engaged in an outreach effort to the Muslim community that was very similar to that of "Three Cups of Tea" author Greg Mortenson, who visited Viterbo University this past school year. Cohen focused the city government's integration policy on lending a sympathetic ear to the Muslim community, even the most insular and orthodox. And when Dutch elections were called this spring, Cohen led the Labor Party ticket, with number two Nebehat Albayrak, who is Turkish.

For more: Keith Knutson: The Netherlands are a bellwether for Europe

Oil leak tension between Britain and US spills over

What started as an oil leak in the Gulf of Mexico in late April has threatened to become a stain on relations between Britain and the US.

While Barack Obama’s US administration last week denied that the disastrous oil spill had damaged relations, it has caused early difficulties for the new British prime minister, David Cameron. With reports that the broken BP pipe is leaking twice as much oil as initially thought, the president and the American people are desperate to find someone to blame.

What Cameron described as an ‘‘environmental catastrophe’’ could also turn out to be a political disaster. There is certainly great political and public anger directed towards BP. A ‘‘seize BP’’ campaign is conducting demonstrations in major US cities, calling on Obama’s government to grab the British company’s US assets, while a ‘‘boycott BP’’ group is encouraging consumers to shun the oil company’s network of service stations

For more: Oil leak tension between Britain and US spills over | The Post

EU denies responsibility for Turkey-Israel tension

The European Union on Wednesday rejected a US charge that its failure to accept Turkey as a member was partly responsible for the deterioration of relations between Ankara and Israel.

"The EU has very good relations with both Turkey and Israel," and "the bilateral relations between these two countries are not linked with the bilateral relations between the EU and each of these countries," insisted Maja Kocijancic, spokeswoman for the bloc's foreign affairs chief Catherine Ashton.

She added that "as far as Turkey is concerned, progress in accession negotiations depends on the progress in reforms taking place" there.The European Union on Wednesday rejected a US charge that its failure to accept Turkey as a member was partly responsible for the deterioration of relations between Ankara and Israel.

For more: EU denies responsibility for Turkey-Israel tension | Jordan Times

Turkey: US 'inciting conflict to trigger war'

After voting against the fourth round of sanctions on Iran over its nuclear activities, Turkish Prime Minister Recep Tayyip Erdogan called it a matter of honor for Ankara.

“If we had not said 'no', it would have been self-denial... It would have been a lack of self-respect,” Erdogan was quoted as saying at a Turkey-Arab forum currently being held in Istanbul, AFP reported. The comment came after Turkey had brokered a deal with Iran last month for the exchange of 1,200 kilogram's of Iranian low enriched uranium with highly enriched uranium. The enriched uranium, Iran says, is to be used as research reactor to make medical isotopes.

Russia's interests will also go unaffected as the Russian foreign minister Sergei Lavrov says the country will ensure "absolute protection for all significant channels of trade and economic cooperation existing between Russia and Iran," and that Russian companies would just "adapt" to the new sanctions.

For more: US 'inciting conflict to trigger war'

Soccer: Britain - USA : 1-1

Clint Dempsey scored on a blunder by British goalkeeper Robert Green in the 40th minute, and the United States came from behind to tie England 1-1 in the Americans' World Cup opener Saturday.

Steven Gerrard had put England ahead in the fourth minute, blowing past Ricardo Clark to beat goalkeeper Tim Howard from inside the 6-yard box. But Dempsey tied the score when his 25-yard shot skipped off the grass twice and bounced in off Green's hand, yet another in a long line of shocking gaffes by England goalkeepers. It made Dempsey only the second American to score in two World Cups, joining Brian McBride.

For more: U.S. set for finest hour

EU to open market fully to Palestinian exports

The European Commission plans to open European Union markets fully to Palestinian exports in the coming months to help strengthen the Palestinian economy, the EU trade chief said on Thursday. The 27-country bloc has an agreement with the Palestinian Authority that allows Palestinian industrial goods duty-free access to the EU, and requires the Palestinian territories to phase out tariffs on EU exports over five years.

The EU decision to accelerate bilateral trade was announced after a meeting between EU Trade Commissioner Karel De Gucht and Palestinian Economy Minister Hasan Abu-Libdeh.

For more:EU to open market fully to Palestinian exports - Israel Business, Ynetnews

Israel must apologize and pay compensation, says Turkey

Turkey continues to hound Israel over its navy commando raid on a flotilla of aid ships bound for Gaza.

The Turksh President Abdullah Gul has said the attack on ships manned by activists attemtping to break the Gaza blockade, was a crime and was something one would expect from a group like al-Qaeda, rather than a sovereign state. Gul has also said Israel should apologize for the attack and pay compensation. Nine activists were killed in the attack.

Speaking to the French daily newspaper Le Monde, the Turkish president hinted his country would terminate diplomatic ties unless the Jewish state changed its attitude.

For more: Israel must apologize and pay compensation, says Turkey

Italy's Senate Approves Wiretap Bill

Italian Prime Minister Silvio Berlusconi advanced a draft law through the senate that restricts the use of wiretaps by prosecutors and introduces fines and prison sentences for journalists who issue reports on tapped conversations.

The draft law's passage on Thursday by the senate prompted a torrent of criticism from Italian prosecutors, newspapers and opposition lawmakers. Mr. Berlusconi, a media magnate, says the bill aims to protect the privacy of Italians. Critics say the draft legislation, which still faces a vote in the lower house of Parliament, is an attempt by Mr. Berlusconi to weaken the judiciary branch's investigative powers and muzzle criticism of the prime minister in Italian media.

"The massacre of freedom has begun," said Anna Finocchiaro, a senator in the center-left Democratic Party.

For the complete report: Italy's Senate Approves Wiretap Bill - WSJ.com

Bundesbank's brighter German outlook

Germany's central bank has raised its forecast for German growth this year and next as the biggest economy in Europe cashes in on gradual global recovery.

The Bundesbank said in its twice-yearly outlook that it expected German gross domestic product (GDP) to expand 1.9% in 2010, instead of the 1.6% it had expected in December.

Next year, the economy is seen as growing 1.4%, against the 1.2% previously estimated.

For more: RTÉ Business: Bundesbank's brighter German outlook

Euro continues to strengthen against dollar due to recovery optimism » WireUpdate Local | Local Breaking News | Local Breaking Wire -

The Euro continued to strengthen against the U.S. dollar as investors and markets found more confidence and optimism in Europe's economic recovery, the European Central Bank (ECB) announced.

The recovery was possible due to backing comments, the latest made by ECB President Jean-Clue Trichet who confirmed that the ECB will continue to offer three-month emergency loans until September. The Euro finished Thursday on 1.2095 dollars, rising from 1.1986 on Wednesday.

"Decisions were taken recently, which were difficult to foresee by observers and markets only a few months or weeks ago: a negotiated fully-fledged adjustment program for a member state, a €80 billion support loan by member states for that program, and a €440 billion financial stability facility, on top of a €60 billion existing facility," Trichet said.

For more: Euro continues to strengthen against dollar due to recovery optimism » WireUpdate Local | Local Breaking News | Local Breaking Wire -

Soccer World cup: France 0 Uruguay 0 final

Final score 0-0, shots 3-3, 20-13 fouls to France, 3 yellow cards each, 1 red card for Uruguay, France with 53 % possession.

For more: World Cup live blog: France 0 Uruguay 0 final

Turkey: The New Wannabe Ottomans - Victor Davis Hanson

A Turkish Islamic group -- the "Humanitarian Relief Foundation," often associated by Western intelligence agencies with terrorist sponsorship -- orchestrated the recent Gaza flotilla. It was hoping for the sort of violent, well-publicized confrontation with the Israeli navy that later followed.

Turkish Prime Minister Recep Tayyip Erdogan, immediately issued veiled threats to Israel. He then badgered the United States, Turkey's NATO patron ally, to condemn the Israeli interdiction.

For more: RealClearPolitics - The New Wannabe Ottomans

Swiss central bank emerges as key supporter of euro

Investors may wonder why the euro is not trading even lower given the almost universal bearish sentiment on the single currency. The answer could lie in Switzerland.

The Swiss National Bank shocked the market on Tuesday by announcing that, as a result of its intervention in the foreign exchange markets, its currency reserves leapt more than 50 per cent last month from $145.6bn in April to $261.9bn in May.

As a result, the SNB is now the seventh-largest holder of reserve assets globally - ahead of Hong Kong, Brazil, India and the European Central Bank.

For more: FT.com / UK - Swiss central bank emerges as key supporter of euro

US Defence Secretary Gates blames EU for Turkey 'drift'

Robert Gates said Turkey may have been "pushed by some in Europe" away from the EU and into closer partnerships with states like Iran.Turkey has been put on the path to EU membership, but countries like France and Germany are openly opposed.

"The deterioration in the relationship between Turkey and Israel over the past year-or-so is a matter of concern," Mr Gates said during a visit to London. "I think the two had a pretty constructive relationship and one that contributed to stability in the region, and I hope that, over time, that kind of constructive relationship can be re-established," he added.

"I personally think that if there is anything to the notion that Turkey is, if you will, moving eastward, it is, in my view, in no small part because it was pushed, and pushed by some in Europe refusing to give Turkey the kind of organic link to the West that Turkey sought."

Note EU-Digest: this is not very clever talk by Mr. Gates. Turkey obviously is playing all its cards to force the EU to accept Turkey into the Union without having to live up to some basic EU requirements which includes a variety of issues. The most important being the Cyprus question.
The US can not be allowed to influence EU policies on EU membership requirements and Mr. Gates should know so or be told so..


For more: BBC News - US Defence Secretary Gates blames EU for Turkey 'drift'

Netherlands: Dutch election gives austerity-minded Liberals headed by Mark Rutte slim win

Parliamentary elections in the Netherlands have resulted in a razor-sharp race between two major parties. With 96.5 percent of the votes counted, the pro-business Liberals, the VVD, held 31 out of 150 seats in parliament. Those results broke an hours-long tie the party had with the social democratic Labor party, which according to the latest count has 30 seats.

The far-right Party for Freedom, led by anti-Islam activist Geert Wilders, increased its seats from nine to 24 to put it as the third-largest party. It had been expected to gain about nine seats, in an election where immigration issues have taken a backseat to concerns about budget deficits and austerity plans.
Wilders proclaimed his party, which wants to ban immigration from all Muslim countries and cut social spending, "the biggest winner today."

For more: Dutch election gives austerity-minded Liberals slim win | Europe | Deutsche Welle | 10.06.2010

Dutch May Face Months of Coalition Talks After Tied Election

Dutch political leaders may face months of talks to form a coalition government after projected election results showed the Labor Party led by former Amsterdam Mayor Job Cohen and Mark Rutte’s Liberals tied for first place.

Labor took 31 of the 150 seats yesterday, down from 33 in the last vote in 2006, national newswire ANP reported with more two thirds of the votes counted, citing its own calculations. The Liberal Party, which led in pre-election opinion polls, also had 31 seats, up from 22. Geert Wilders’s anti-immigrant Freedom Party more than doubled its vote to take third place. Prime Minister Jan Peter Balkenende stepped down as Christian Democrat leader after his party’s support was cut in half.

For more: Dutch May Face Months of Coalition Talks After Tied Election - BusinessWeek

No More Naked: Germany and France Call for an EU Ban on Financial Speculation

There was much speculation about tensions between France and Germany after a planned bilateral summit between German Chancellor Angela Merkel and French President Nicolas Sarkozy on Monday was postponed at very short notice, with pundits postulating that the Franco-German partnership -- the European Union's famous "motor" -- was deeply divided over how to tackle the euro crisis.

But now, perhaps with that speculation in mind, the two leaders have joined forces to push for a EU-wide ban on certain kinds of speculative financial transactions, in a reaction to recent turbulence on the markets. In a joint letter released Wednesday, Chancellor Angela Merkel and French President Nicolas Sarkozy urged the European Commission to "speed up" its work to introduce stricter controls on short-selling and credit default swaps (CDS) on sovereign bonds.

For more: No More Naked: Germany and France Call for an EU Ban on Financial Speculation - SPIEGEL ONLINE - News - International

Europe's Debtor's Prison

"IT'S a $2.6 trillion mystery. That's the amount that foreign banks and other financial companies have lent to public and private institutions in Greece, Spain and Portugal, three countries so mired in economic troubles that analysts and investors assume that a significant portion of that mountain of debt may never be repaid. The problem is, alas, that no one - not investors, not regulators, not even bankers themselves - knows exactly which banks are sitting on the biggest stockpiles of rotting loans within that pile. And doubt, as it always does during economic crises, has made Europe's already vulnerable financial system occasionally appear to seize up. Early last month, in an indication of just how dangerous the situation had become, European banks - which appear to hold more than half of that $2.6 trillion in debt - nearly stopped lending money to one another.

For more: Europe's Debtor's Prison | Before It's News

Shift in Risk Sentiment Could Drive Euro to 1.2153

Appetite for risk is helping to drive the U.S. Dollar lower ahead of the New York trading session. Firm trading action overnight in the global equity markets drove up demand for higher risk currencies leading to this morning’s call for a higher opening.

There seems to be a shift in market sentiment taking place that is centering on the Euro. With Bernanke supporting the actions by the European Union and the EU continuing to develop measures to support the Euro and back the struggling nations, watch for the start of a short-covering rally. A rally in the Euro should take some of the pressure off the commodity-linked currencies which have been beaten up lately because of trader aversion to risk.

For more: Shift in Risk Sentiment Could Drive Euro to 1.2153 - ForexHound.com the Forex Trading Portal

Euro rises vs US dollar-Forex-Markets-The Economic Times

The euro is trading higher against the U.S. dollar as European countries move ahead with a bailout fund for the 16-nation eurozone. The euro bought $1.1965 in morning European trading Wednesday, up from $1.1925 late in New York the night before. The British pound is up to $1.4420 from $1.4382 in New York, while the dollar is up slightly to 91.36 Japanese yen from 91.29 the night before.

For more: Euro rises vs US dollar-Forex-Markets

EU economy: It's Angela Merkel's euro-party, and she'll cry if she wants to

As EU finance ministers agreed and approved the last details of the €440 billion mutual defence fund whose creation they agreed in principle last month. This will see the 16 countries that share the euro offfer loan guarantees to a huge "Special Purpose Vehicle", designed to rescue any member of their club that comes under market attack. As the largest economy in the eurozone and the EU, Germany will pay the largest share of the bill for this mutual defence mechanism, and you might think Germany would have an interest in letting the SPV rule the headlines for one day, to highlight the political will of big EU governments to keep the euro from harm.

For more: The euro crisis: It's Angela Merkel's euro-party, and she'll cry if she wants to | The Economist

EU Hopes For Economic Growth Despite Austerity Plans

EU finance ministers at their monthly meeting Tuesday pledged to cut their budget deficits aggressively. Some plans have already started while others begin in 2011. Even Germany, the 27-nation bloc's largest economy with one of the stronger budget positions, unveiled a plan to begin cutting its deficit in 2011. "The German program of fiscal consolidation, which is focusing on expenditure, seems to confirm and substantiate the consolidation strategy of the federal government," Rehn said at a press conference after the meeting.

Despite these cuts, the European Commission, the EU's executive arm, expects the EU economy to grow at 1% this year and 1.75% in 2011, Rehn said. "There are some risks, particularly related to financial stability, but on the other hand we are benefiting from the strong rebound in global trade," Rehn said. Spanish finance minister, Elena Salgado, backed Germany's move to trim deficits.

"As a member state we can only respect fellow member states' decisions, all the more so, when by doing so, they fulfill the criteria of the stability and growth pact," she said.

For more: 2nd UPDATE: EU Hopes For Economic Growth Despite Austerity Plans - WSJ.com

Gold Climbs in Asia, Nears Record as Europe Boosts Haven Demand

Gold gained to within 0.9 percent of a record as concern about Europe’s debt crisis grew after Fitch Ratings called the U.K.’s fiscal challenge “formidable,” boosting the appeal of the metal as a haven.

Bullion for immediate delivery rose as much as 0.4 percent to $1,240.85 an ounce, after hitting an all-time high of $1,252.11 yesterday, and traded at $1,238.97 at 8:50 a.m. in Singapore.

Gold climbed to a record in euros, pounds and Swiss francs yesterday as investors sought to preserve their wealth against declining currencies. The precious metal also advanced to a 15- month high in New Zealand dollar terms and to the highest level since February 2009 in Australian dollars.

For more: Gold Climbs in Asia, Nears Record as Europe Boosts Haven Demand - BusinessWeek

Norway stalls all deep-water drilling

No drilling on deep waters will be conducted before the circumstances around the accident in the Gulf of Mexico have been clarified, Norway’s Minister of Petroleum and Energy said at a conference today. "I will not allow new deep-water drilling before we have good knowledge about what happened with the Deepwater Horizon and what this will mean for Norwegian legislation", Minister Terje Riis-Johansen said at a conference in Svolvær, Norway, today.

For more: Norway stalls all deep-water drilling - BarentsObserver

US Economy - Housing, Banks and Global Credit: The Next Leg Down Awaits

The next leg down for riskier assets is now upon us and investors should prepare themselves for further, significant declines going forward. Global equities markets will continue to descend toward their 2009 lows, as the global economy almost certainly faces a severe contraction in the coming months.

For more: Housing, Banks and Global Credit: The Next Leg Down Awaits -- Seeking Alpha

Eastern states keep faith in euro - by Neil Buckley

For a decade, central and east European countries saw euro membership as a prize – a safe haven worth making sacrifices to reach. Now, with the eurozone mired in a crisis that threatens to set back their own nascent recovery, they could be forgiven for losing the faith.

Yet, while one or two seem more lukewarm, most aspiring members on the eurozone’s eastern borders remain committed to membership – eventually. They say it could take longer than planned: they may have to do more to get themselves ready, and the eurozone must set its own house in order first.

For more: FT.com / Global insight - Eastern states keep faith in euro

Budget cutbacks in Britain, Europe spell more trouble for U.S. economy - by Don Lee, Henry Chu and Tom Petruno

The European debt crisis sent more shock waves rumbling toward the U.S. economy Monday as British Prime Minister David Cameron announced drastic cutbacks in government spending and Germany pressed ahead with its own austerity plans — steps that are almost certain to impede America's recovery.

The European policy decisions are likely to have a negative effect on the creation of new U.S. jobs, the United States' competitiveness overseas and the strength of the global economy overall.

In Britain, Cameron warned that spending cuts would be felt "for years, perhaps even decades." And German Chancellor Angela Merkel, who presides over Europe's biggest economy, announced similar plans for spending cuts, higher taxes and other belt-tightening measures.

For more: Budget cutbacks in Britain, Europe spell more trouble for U.S. economy - San Jose Mercury News

Soccer: Netherlands - Robben injury mars preparations - by Anthony Williams

The Netherlands showcased their impressive form in front of goal by notching up a 6-1 win in their final World Cup warm up friendly over poor Hungary, but at what cost? In-form winger Arjen Robben limped off of the pitch with a hamstring injury after scoring two goals for the Dutch side. The Bayern Munich player has been in sensational form this season and was tipped to star for the Oranje during the tournament in South Africa. Now Holland Coach Bert van Marwijk faces a sweat over Robben, who has been known as an injury player in the past which earned him the ‘Glass Man’ nickname. The Dutch Coach was cursing his player’s bad luck with injuries: “I would rather lose this match and have Arjen stay fit. He felt a sharp pain. That does not bode well.

Netherlands Camp Focus - Robben injury mars preparations

EU finance ministers vow to reduce debt, approve Estonia to adopt euro

All European Union governments have vowed to start debt reduction efforts by next year in a bid to regain credibility with markets and rein in the region's debt crisis.

EU finance ministers also approved Estonia's bid to join Europe's troubled currency union next year after the Baltic nation promised it would take action to avoid the soaring wages and inflation that have hit new euro members.

It will enter a currency union facing sweeping budget cuts and desperately seeking ways to coordinate member economies to curb mounting debt across the continent.

For more: TODAYonline | Breaking News | EU finance ministers vow to reduce debt, approve Estonia to adopt euro

EU finance ministers seek European bank tax

A consensus is growing in Europe that banks should be charged for the costs of financial crises but although the bloc is moving slowly toward taking such measures to reduce bank profits, there is disagreement over how this should be done.


Finance ministers from the Group of 20 countries ditched plans for a global bank levy at the weekend in the face of opposition from Japan, Canada and Brazil, whose lenders sailed through the credit storm unharmed.

This throws down the gauntlet to the European Union to go it alone. Many of the EU's leaders have promised they will do so, but European diplomats said their differences were unlikely to be settled on Tuesday.


For more: EU finance ministers seek European bank tax | Reuters

UK, Germany, France and US to go ahead with tax on banks

Britain's George Osborne, chancellor, is to press ahead with plans for a levy on UK-based banks, in spite of the G20 finance ministers at the weekend scrapping worldwide plans for a banking tax.

Mr Osborne is expected to outline his thinking on a unilateral British bank tax in his Budget on June 22, undeterred by the hostile reaction to the idea from some ministers at the G20 meeting at Busan in South Korea.

The main proponents of a global banking levy – the UK, Germany, France, the US and the International Monetary Fund – were surprised at the degree of hostility from opponents. They had thought an agreement would be possible by the end of the year.

For more: FT.com / UK / Politics & policy - Osborne to go ahead with tax on UK ban

Europe and US clash over timing of austerity measures

The weekend's meeting of G20 finance ministers and central bankers saw heated exchanges between US and European representatives, with division centering on the speed at which government budget deficits should be reduced.

US treasury secretary Timothy Geithner argued the case for fiscal consolidation over the "medium term," while Europeans, rattled by the region's ongoing debt crisis, called for faster cutbacks. "Stronger domestic demand in Japan and in the European surplus countries" is needed, Mr Geithner told reporters in Busan, South Korea, on Saturday (5 June). European representatives said greater emphasis should be placed on restoring healthy public finances. "For the vast majority, addressing finances, budget consolidation, is priority No. 1," said French finance minister Christine Lagarde.

Translating words into action, German cabinet ministers appeared close on Sunday evening to agreeing on changes to welfare provision and a big reduction in the size of its armed forces.

For more EUobserver / Europe and US clash over timing of austerity measures

EU Economy: Sarkozy and Merkel to seek coordinated economic governance

French President Nicolas Sarkozy is to visit Berlin on Monday for a meeting with German chancellor Angela Merkel when they are expected to seek economic coordination within the European Union (EU) and the eurozone in particular.

European Council President Herman van Rompuy aired this expectation when he addressed in Luxembourg an EU ministerial workshop on economic governance which gathered 27 EU financial ministers. Sarkozy and Merkel should coordinate their European politics, the EU chief said.

Today's meeting between Sarkozy and Merkel is viewed as a prelude to the scheduled June 17 EU summit which is to further discuss the issue of economic governance.

For more: Sarkozy, Merkel to seek coordinated economic governance

G20 Failure - no agreement on recovery strategy

At a weekend meeting of the Group of 20 (G20) finance chiefs in Busan, South Korea, US treasury secretary Timothy Geithner said the world cannot again bank on the cash-strapped US consumer to drive growth and urged other nations to stimulate their own demand.

However, European Central Bank (ECB) president Jean-Claude Trichet said fiscal tightening in “old industrialised economies” would aid the expansion by shoring up investor confidence.

British chancellor of the exchequer George Osborne will this week follow moves enacted in Ireland last year by announcing details of a review of government spending, as he seeks to cut Britain’s record deficit. Mr Osborne is seeking support for cuts that will be the deepest since Margaret Thatcher was prime minister in the 1980s and will last longer than any other cuts since the second World War.

For more: G20 chiefs fail to agree on strategy for recovery - The Irish Times - Mon, Jun 07, 2010

A German government official attending the Group of 20 meeting of finance ministers and central bank governors in Busan, South Korea, said members are concerned about growing financial market risks even while they’re relieved that crisis management in the European Union works.

The euro stabilization package, which includes a special- purpose vehicle to help troubled euro member countries, will be finalized at a meeting of euro region finance ministers in Luxembourg on June 7, he said. The German official spoke on condition of anonymity.

For more: German Official Sees Euro Stabilization Package Finalized June 7 - BusinessWeek

Russia wants to scrap visas for EU Citizens - by Nataliya Vasilyeva

Russia will press the European Union to scrap visas for its citizens and seek the EU's help in modernizing its economy at a two-day summit beginning tomorrow.
Russian President Dmitry Medvedev is hosting top EU officials for talks in Rostov-on-Don. The EU is Russia's biggest trading partner, and EU nations account for some 80 per cent of investment in Russia.

For more: Russia seeks scrapping of EU visas for its citizens - Scotsman.com News

Private SSector is not hiring

The US employment report was the most anticipated economic info for the week.  Non-farm payrolls rose by 431,000 in May, lower than the consensus forecast for a 540,000 rise, but at least the unemployment rate fell to 9.7%. As the Bureau of Labor Statistics reports. In reality then, this is a rather gloomy employment report.  Stripping the over 400,000 temporary jobs for the Census 2010, things haven’t really improved. 

The US needs to create about 150,000 new jobs each month just to keep up with the (still) growing demographics; so in real terms, this represents a net loss of jobs for the month of May.  Looking ahead then, with several million new graduates entering the labor force this summer, employment still presents a major uphill battle for the US economy.

For more: Two Reasons Why You Shouldn't Bank On A Private Sector Jobs Rebound

As world berates Israel on flotilla, Turkey true aggressor VOX POP

With so much coverage of this story, and most of it attacks on Israel, the media failed to report on the real story behind the "freedom flotilla" and that is Turkey, which used to be the most advanced, modern Islamic country. Turkey knows about the Israeli naval blockade of Gaza. They know that Israel and Hamas are in a state of war. They have willfully sent these ships to challenge Israel, knowing full well that some of the people on the ships will be in harm's way.

Turkey is doing what every other Arab country has done for over 60 years: Attack Israel, incite its people against Israel to hide problems within the country itself. It worked miracles for every Arab country in their efforts to control the masses.

The media, reporters, columnists and commentators fail to see what is happening as they are so busy focusing on Israel alone. Turkey is the aggressive hostile country and not Israel. Turkey has no business getting involved in a dispute far away from their land, not involving their people. Now it threatens Israel that it will send military escort for the next wave of ships attempting to break the blockade.

Now Ireland is threatening Israel not to harm Irish citizens aboard another vessel on its way towards Gaza. Welcome to a new reality game. Turkey, Ireland and maybe other countries are deliberately and willfully committing acts of treason against Israel and expect it not to respond and defend itself.

For more: As world berates Israel on flotilla, Turkey true aggressor | Comment | London Free Press

EURO zone Economny up

The euro zone economy (GDP) grew 0.2 per cent in the first quarter of 2010 compared to the final quarter of last year, statistics office Eurostat said today.

The gross domestic product of the 27 EU states also rose by .0.2 per cent, the same growth rate as the fourth quarter of 2009.

Seasonally adjusted GDP in the euro area rose 0.6 per cent compared with the first quarter of 2009, and by 0.5 per cent in the wider EU area, compared with falls of 2.1 per cent and 2.3 per cent respectively for the previous quarter.

Euro zone economy rises 0.2% - The Irish Times - Fri, Jun 04, 2010

Netherlands: upcoming elections will be all about how much the Dutch population will be squeezed

The election was called in February when the government led by Jan Peter Balkenende’s Christian Democratic party (CDA) collapsed. Back then the Dutch still grumbled about immigration and ranked crime and health care their top concerns. Many therefore expected the election to be a showdown between a revitalised Labour Party—now led by Job Cohen, a former mayor of Amsterdam committed to the model of a tolerant, immigrant-friendly Dutch society—and an anti-immigrant populist, Geert Wilders, whose far-right Freedom Party had shaken up Dutch politics over the previous year.

But everything changed in March. First Centraal Planbureau (CPB), an influential think tank, issued a report warning of the dangers of the growing national debt and urging spending cuts. Soon afterwards a specially commissioned study group said that the next government would need to make savings of €15 billion-18 billion ($18.4 billion-22.1 billion) in its first term.

The parties adjusted their message in response. On some specifics they agree: health-care costs must be brought down, and the retirement age lifted from 65 to 67. But beyond this there is a serious debate over how much reform the Netherlands needs. The liberal VVD party has gone furthest, pledging cuts that should bring the budget into surplus within two terms. Along with the CDA, it proposes widespread cuts to the Dutch social-security system, while lowering taxes for households and companies. Both parties emphasise the need to pursue growth and to create jobs. Labour, on the other hand, is calling for tax increases on the wealthy and relatively minor tweaks to the social-security system.

The Dutch election: Preparing to be squeezed | The Economist

Dow Plungesr Below 10.000 with bad US Jobs Report and Hungarian financial problems

Growing doubts about the world's economic recovery pummeled financial markets Friday, following a weaker-than-expected jobs report for the United States and fresh worries about European debts
For more: Dow plunges below 10000 amid bad news on euro and US jobs - CSMonitor.com

Hungary Vows to Avert Greece-Like Crisis

Hungary's new government Friday failed to calm financial markets that were roiled by a senior official's warning that the country faces a Greece-style fiscal meltdown.

The Hungarian forint tanked in currency markets, where the euro was also coming under pressure, on remarks Thursday by the vice president of the Fidesz party, Lajos Kosa, that Hungary is in a Greece-like sovereign credit crisis.

For more: Hungary Vows to Avert Greece-Like Crisis - WSJ.com

Spains seeks to reform labour contracts - by Mark Mulligan

The Spanish government is seeking to close the gap between wildly contrasting conditions offered under permanent and temporary job contracts under draft labour reforms due to be unveiled in two weeks.

According to state-run Radio Nacional de España, which says it has seen the proposed law, Madrid wants to phase out an inefficient two-tier system which makes it onerously expensive and bureaucratic to fire most workers yet gives others few rights.

For more: FT.com / Europe - Spain seeks to reform labour contracts

Catholic Bishop Stabbed in Turkey - by Rachel Donadio

A Roman Catholic bishop was stabbed to death in eastern Turkey on Thursday, a day before he had planned to travel to Cyprus for the visit of Pope Benedict XVI. The bishop, Luigi Padovese, 62, the apostolic vicar of Anatolia, or the Vatican’s representative to eastern Turkey, was found dead outside his home in the Mediterranean port of Iskenderun, officials said. The police arrested his driver, who officials said had psychological problems.

The officials said the killing was not believed to be politically or religiously motivated. It nevertheless raised tensions between the Vatican and Turkey ahead of the pope’s visit to Cyprus, where he was expected to discuss the challenges facing Christians as religious minorities in the Middle East.

Catholic Bishop Stabbed in Turkey - NYTimes.com

Gulf BP Oil Spil: The latest developments

BP sliced off a pipe with giant shears to prepare for an attempt to place a cap over the well.Tar mats of oil drifted six miles from Florida Panhandle's white beaches. Huge tar balls and a sludge of thick oil landed on beaches in and around Grand Isle, La.

For the complete report: The oil spill: The latest developments

G20 Finance Ministers to endorse euro rescue deal

Finance ministers and central bankers from the G20 nations are expected to endorse European plans to stem the eurozone debt crisis as they meet in Busan, South Korea this weekend.They will also discuss the need for common standards across financial markets, including a global bank tax. Such a levy is supported by the US and Europe, but opposed by some developing nations plus Canada and Australia.

For more: BBC News - G20 finance ministers to endorse euro rescue deal

Dutch liberal leader topping polls ahead of next week's election

Dutch leader Mark Rutte has seized a commanding lead in polls before national elections next Wednesday, but deep policy divisions with his prospective coalition partners point to prolonged talks. Mr Rutte has alarmed some observers by leaving the door open for a three-way deal with anti-Islam populist Geert Wilders and the Christian Democrats, who led the outgoing administration. But analysts say this may be merely a tactical stance to avoid giving Mr Wilders’ far-right Freedom Party an opportunity to campaign on the basis that it was being shut out by the establishment parties.

For more: Dutch liberal leader topping polls ahead of next week's election - The Irish Times - Wed, Jun 02, 2010

In name and little else: Tory meets Tory as Harper goes to London - The Globe and Mail

There was a faint effort to evoke the last moment when the Western world was dominated by conservatives, a time when Brian Mulroney and Margaret Thatcher stood beside one another in this same garden, often joined by U.S. president Ronald Reagan and German chancellor Helmut Kohl. But the difference was striking.

Then, the leaders were tightly united in a set of economic and ideological crusades; now, there seems to be no major point of contact.

On the most important issues, the Canadian and British prime ministers disagreed. Mr. Cameron outright rejected Mr. Harper’s request to abandon the proposed international “Robin Hood” bank tax, making it increasingly likely that Canada will be opposing all of Western Europe and the United States at the G20 summit.

In name and little else: Tory meets Tory as Harper goes to London - The Globe and Mail

EU court upholds Dutch stand on internet gambling

The European court of justice said on Thursday that the Netherlands is within its rights to ban internet gambling if the Dutch courts are satisfied the aim of the ban is to reduce crime and to discourage people from gambling.

The Dutch high court had asked the EU court for its opinion because British gambling groups are trying to enter the Dutch market, which is in the hands of the state-owned Lotto group.

'Such a restriction may be justified, in particular, by the objectives of consumer protection and the prevention of both fraud and incitement to squander money on gambling, as well as the need to preserve public order,' the court said in its ruling.

For more: DutchNews.nl - EU court upholds Dutch stand on internet gambling

Policy-makers grapple with EU's controversial workers law

The EU is still no clearer on how it should balance the freedom of the internal market and workers rights following a series of key judgements in recent years by the bloc's highest court, seen as tipping the scale more towards the protection of economic interests.

A hearing on Wednesday (2 June) on where to go next with a law governing the hiring of foreign workers - the Posting of Workers Directive - saw little agreement between the European Commission, business and trade union representatives.

For more: EUobserver / Policy-makers grapple with EU's controversial workers law

France wants African states in G20

France will push for Africa to have membership of the G20 economies in a similar capacity to the European Union when it takes helm of the group next year, a French political source said.

France is using the 25th Africa-France summit, which ends in Nice on Tuesday, to pave the way for reform proposals at next years G8/G20 meetings, aimed at giving Africa more of a say on the international stage.

“They [African leaders] are quite enthusiastic that we want to make the African Union a permanent member of the G20, like the presidency of the European Commission,” the source said late yesterday. South Africa is currently the only African member.

For more: France wants African states in G20 - The Irish Times - Wed, Jun 02, 2010

Environmental Armageddon: the Gulf oil disaster

After one quick visit on May 2 — slightly less than two weeks after the Deepwater Horizon explosion — President Barack Obama returned to coastal Louisiana last Friday, May 28, to survey the worst environmental calamity in U.S. history. His visit came right after BP's initial "top kill" attempt failed to stop the flow of oil in the midst of the ongoing disaster, which was then in its 38th day. Even if subsequent top kill efforts succeed — and everyone in south Louisiana has been praying that they would — the oil that has already gushed forth from the Gulf floor is wreaking unprecedented damage on America's wetlands. If early efforts to cap the well fail, it may well take until August to stop the flow via a relief well that is still being drilled. Whenever the oil flow stops, Louisiana faces a heretofore unequaled environmental disaster.

The reaction across America to the mounting crisis has been one of shock and disbelief, but here in Louisiana there's a large dose of anger to go with it. Our anger should be America's anger, because what happens to our coast happens to all of America — environmentally, economically and culturally.

As a sign that America "gets it," the president's visit was welcome, if a bit overdue. A CNN poll last week showed that a slim majority of Americans disapproved of the Obama administration's handling of the crisis. A poll of Louisiana voters no doubt would have given the president even lower marks. The president himself admitted on the eve of his visit last week that "it took too long for us" to accurately gauge the extent of the oil leak, and he accepted full responsibility for the efforts going forward. The really bad news for the president is that there's little his administration can do to cap the gusher in the Gulf. Unfortunately, the people who caused this disaster are also the folks with the technology needed to stop the flow and clean up the mess. For his part, the president should focus on four long-term responses:

For more: Environmental Armageddon: the Gulf oil disaster - News & Views - Commentary - Gambit - New Orleans

Turkey turns away from the West - by Harry Sterling

Although Turkey and Israel have been allies since the Cold War with the two countries carrying out joint naval and air manoeuvres, sharing intelligence over developments in the Middle East and increasing their bilateral trade and economic relations, there has been growing opposition among ordinary Turks to such close co-operation.

That opposition gained momentum following the 2002 electoral victory of the Islamic-rooted Justice and Development Party led by Prime Minister Recep Tayyip Erdogan.

Emboldened by his AK Party winning yet another impressive majority in Turkey's 2007 election, coupled with a diminishment of power by Turkey's pro-secular military, Prime Minister Erdogan adopted a much more independent domestic and foreign policy than was normal for previous Turkish governments when the military often called the shots, overthrowing three governments since 1960, even executing prime minister Adnan Menderes in 1961.

For more: Turkey turns away from the West

Iran's Central Bank Selling Euros For Dollars, Gold - Radio Free Europe / Radio Liberty © 2010

Iran's state-owned television station Press TV reported today that the central bank in Tehran is selling 45 billion euros from its reserves in order to invest the money in U.S. dollars and gold ingots.

There was no announcement of the sale on the central bank's website, and officials at the bank declined comment.

But last month, Iran's central bank governor Moahmud Bahmani hinted at a move away from the euro as its value plummeted against the U.S. dollar.

Iran's Central Bank Selling Euros For Dollars, Gold - Radio Free Europe / Radio Liberty © 2010

Suriname former dictator Bouterse ready to asume presidency

Suriname's former dictator Desi Bouterse said Tuesday he is ready to serve as the country's next president with backing from a coalition. "Bouterse will be on behalf of the Mega Combination delegated as president," Bouterse said, while participating in a local popular radio show "Baka na tori" on Sky Radio in Paramaribo.

Bouterse took over in a military coup in 1980, and after stepping down in 1987 briefly seized power again in a 1991 bloodless takeover. He is on trial for the illegal executions in December 1982 of 15 people, 13 civilians and two military officials, who opposed military rule.

If convicted, Bouterse could face up to 20 years in prison. His trial resumes June 9 and his bid for the presidency is widely seen as a move to avoid imprisonment by granting amnesty to all those involved in the 1982 killings.

For more: Caribbean Net News: Suriname former dictator Bouterse ready to asume presidency

Government Impotence and Corporate Rule

Many news reports about the Gulf oil catastrophe refer to it as a "spill." Wrong. A spill is a minor "oops" -- one accidentally spills milks, for example, and from childhood, we're taught the old aphorism: "Don't cry over spilt milk." What's in the Gulf isn't milk and it wasn't spilt. The explosion of BP's Deepwater Horizon well was the inevitable result of deliberate decisions made by avaricious corporate executives, laissez faire politicians and obsequious regulators.Many news reports about the Gulf oil catastrophe refer to it as a "spill." Wrong. A spill is a minor "oops" -- one accidentally spills milks, for example, and from childhood, we're taught the old aphorism: "Don't cry over spilt milk." What's in the Gulf isn't milk and it wasn't spilt. The explosion of BP's Deepwater Horizon well was the inevitable result of deliberate decisions made by avaricious corporate executives, laissez faire politicians and obsequious regulators.

For more: t r u t h o u t | Government Impotence and Corporate Rule

Carney Signals Rate Increases May Be Delayed by Europe Crisis - BusinessWeek

The Bank of Canada signaled its decision to raise rates won’t necessarily be repeated soon, reflecting concerns among policy makers worldwide that Europe’s debt crisis poses a risk to the economic recovery.

Governor Mark Carney yesterday became the first central banker in the Group of Seven to raise his policy interest rate since 2008, to 0.5 percent from a record-low 0.25 percent. While citing “robust” domestic growth and inflation pressures, Carney mentioned Europe and its debt crisis four times in a one- page statement that said further increases would be “weighed carefully.”

For more: Carney Signals Rate Increases May Be Delayed by Europe Crisis - BusinessWeek

Soccer: Netherlands 4-1 Ghana: Oranje Crush Black Stars With Ease

The Netherlands continued their winning run ahead of the World Cup finals as they defeated Ghana 4-1 at the Feijenoord Stadion in Rotterdam on Tuesday evening. Dirk Kuyt, Rafael Van der Vaart, Wesley Sneijder and Robin Van Persie were on target for the Oranje while Asamoah Gyan scored a consolation goal for the Black Stars.

For more: Netherlands 4-1 Ghana: Oranje Crush Black Stars With Ease - Goal.com

Hamas: Israel says they expected protestors, but found terrorists aboard aid ship

In a news brief published just after Israeli troops started boarding the ships, the Free Gaza Movement claimed that the crew of the Miva Marmara, the only ship that saw violence, was peacefully sleeping when the Israelis touched down on deck and opened fire indiscriminately. 


The following video released by the IDF clearly shows that the crew of the Marmara was not sleeping, but rather was eagerly waiting and ready for a fight.

Click here to see also video

Cool heads must prevail in inquiry into Israel's raid - by Barbarra Yaffe

Israel contends the "Freedom Flotilla" was a publicity stunt, more a political act designed to damage Israel's already beleaguered international standing than an attempt to deliver humanitarian aid to Gaza. It's important to understand that both Israel and Egypt for years have maintained blockades of Gaza.

But Israel also maintains a humanitarian corridor for the transfer of food and humanitarian supplies into Gaza, which is used on a continuing basis by groups such as the Red Cross and United Nations. In recent days, before the ships neared the Gaza coast, Israel offered to assist in getting the cargo to Gaza through the Israeli port of Ashdod, to allow Israelis to first verify that no weapons material was on board.

The reason Israelis were insisting on such a condition is that Gaza's government is run by Hamas, an organization viewed by Israel and recognized by Ottawa as a terrorist organization. Hamas is known to receive support and weaponry from Iran and Syria.

For more: Cool heads must prevail in inquiry into Israel's raid