globeandmail.com: Turkey raises troop levels along Iraq border

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Turkey raises troop levels along Iraq border

Turkey's army has boosted troop levels in the restive southeast to more than 200,000, most of them stationed along the border with Iraq, security sources said yesterday. The unusually large buildup, which includes tanks, heavy artillery and aircraft, is part of a security crackdown on Kurdish rebels hiding in southeast Turkey and northern Iraq, said the security sources, who declined to be identified. U.S. Defense Secretary Robert Gates dismissed the estimate of 200,000 troops, saying it was too high.The top U.S. general, Joint Chiefs of Staff Chairman Peter Pace, said Turkey has the capability to fight the rebels inside Iraq without boosting troop levels. "The truth of the matter is that the Turkish armed forces on their side of the border have always had sufficient forces to be able to take actions without having to be reinforced," Pace said.

EU-member candidate and NATO-member Turkey has refused to rule out a possible cross-border operation to crush up to 4,000 Kurdistan Workers Party (PKK) terrorists believed to be based in mountains in northern Iraq, despite opposition from Washington and Baghdad. The military General Staff in Ankara was not immediately available for comment on troop numbers. It usually does not release such figures.

The Economist: Poland's unsteady government - Crash, bang, fizzle (Europe's Banana Republic)

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Poland's unsteady government - Crash, bang, fizzle (Europe's Banana Republic)

"Outsiders often mock Poland's prickly, obstinate prime minister, Jaroslaw Kaczynski. But a collapse of his government, followed by months of instability, might be worse. An anti-corruption watchdog this week named a deputy prime minister, the temperamental farmers' leader Andrzej Lepper, in a bribery scandal. Mr Kaczynski promptly sacked him (for the second time). Mr Lepper, who denies any wrongdoing, threatened to take his party, Self-Defence, out of the coalition. That would have meant minority rule and perhaps an early election, bogging down Poland's haphazard reforms completely. The European Union's most unpredictable member would be even harder to handle."

EUX.TV - ANALYSIS: Divided EU struggles to forge close ties with Russia- by Shada Islam, dpa

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EUX.TV - ANALYSIS: Divided EU struggles to forge close ties with Russia- by Shada Islam,dp

European Union policymakers say it's no secret: dealing with an increasingly assertive, energy-rich Russia is the 27-nation bloc's biggest foreign-policy challenge. Relations between Europe and Russia contain a "level of misunderstanding or even mistrust we have not seen since the end of the Cold War," EU Trade Commissioner Peter Mandelson said recently.

Javier Solana, EU foreign and security policy chief, has also appealed for "calm" in EU-Russia links, arguing that given Moscow's global clout and vast energy resources, the two sides must forge a "deep and solid relationship."

JTW News - Consensus Culture within the EU: Reactions against Poland (Britain and the Netherlands) - by Mehmet Ozcan

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Consensus Culture within the EU: Reactions against Poland (Britain and the Netherlands) - by Mehmet Ozcan

"A turning point in the EU history has been got through last week once again. Could the problems be solved? No. It is possible to state this clearly. We can clearly state this. The main issues that marked the summit had centered on the objections of the UK, France, the Netherlands and Poland."

Newropeans Magazine - European Union’s Defense Policy and Solidarity After the Incident with Russia - by Akli Hadid

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European Union’s Defense Policy and Solidarity After the Incident with Russia- by Akli Hadid

"The Russia-EU summit in Samara, Russia resulted in the fact that the EU openly stated its solidarity among EU countries in terms of security from foreign threats. As Russia has threatened to aim missiles at the EU, it seems as though the EU now has an enemy: Russia." Note EU-Digest: what Mr. Hadid does not take into consideration is that Russia made this threat because the US unilaterally made the decision to place missiles and radar equipment in Poland and the Czech Republic, even though the majority of the population in the EU is against it. Unfortunately, this once again shows the weakness of the EU as a whole for not being able to stand up for what it believes in against the US and a minority of its own members (Poland - which nearly wrecked the last EU Summit, the Czech Republic and Britain). Russia certainly can not be considered Europe's enemy.

IHT: Europe looks at controls on state-owned investors - by Carter Dougherty

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Europe looks at controls on state-owned investors - by Carter Dougherty

European policy makers are considering imposing controls on state-owned funds that take stakes in flagship European companies. The deliberations that have kicked off in recent weeks are a reaction to the uncertain political intentions of China and Russia as they start investing vast new reservoirs of cash in Western markets.

Whether backed by China's $1.2 trillion in currency reserves, or the profits that are accruing in places like Russia and the United Arab Emirates from energy sales, such funds are posing a dilemma even for politicians with strong records of supporting foreign investment: Do the state-controlled investors simply want to make money, or might they be seeking political influence as well? "With those sovereign funds we now have a new and completely unknown elements in circulation," the Chancellor Angela Merkel of Germany said recently. "One cannot simply react as if these are completely normal funds of privately pooled capital.

France is supporting the German initiative, which could lead to restrictions, or at least careful reviews, of moves made by the varying types of state-controlled investors that have sprung up in the last few years.

News Dissector Blog : Which Is Worse: Threats from Osama or Wall Street?

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Which Is Worse: Threats from Osama or Wall Street?

Osama is back, after all these years, after all the propaganda, and promises to “smoke him out,” after BILLIONS spent on a war on terror and war of error, after bombing that moved every rock in Afghanistan at least twice, after security guidelines and years of fear, the most powerful country is once again bracing for new attacks from the Qaeda crazies. This story smells and reeks of lack of evidence, but its going to divert attention away from the war we are losing in Iraq (make that the war we lost) and whats about to come down on Wall Street according to Rupert Murdoch’s New York Post. Be very afraid”

Wall Street is bracing for a nearly $2 trillion washout collapse of hollow and shaky mortgage bonds, triggering fears of a recession worse than the dot-com bubble bursting.

A stunning first step in that grim outlook came yesterday when two credit rating agencies - Standard & Poor’s and Moody’s Investors Service - abruptly pulled the plug for the first time on a protective layer of respectable ratings that have cloaked the underlying, deep weaknesses of mortgage securities awash in the economy. S&P slammed only a chunk of the half-trillion in mortgage bonds it monitors - about 2.1 percent or $12 billion - but said housing prices could crash by 8 percent this year to make matters worse. Moody’s downgraded $5.2 billion of mortgage securities.It sent shock waves through the market, triggering worry among investors that a domino effect could spread in the coming weeks throughout the nearly $2 trillion in mortgage securities.

New Statesman - Is there a European Dream? - Dreaming a continent - by Wenders

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Is there a European Dream? - Dreaming a continent - by Wenders

The European project will wither and die if it does not place culture and the arts at the heart of its identity, writes the legendary film-maker Wim Wenders

"Choosing to discuss the idea of "Europe's soul" carries the inverse implication - or perhaps it is more a suspicion - that Europe lacks such a thing. It would also seem to suggest that what is missing from the European project is a vision of the future, or a dream. If that is the case, we must do something about it, whether that means "we", the Europeans, or "they", the policymakers.

For most Europeans, Europe has become an abstract, alien entity. They are no longer sure whether they should identify with it or dissociate themselves from it, whether they feel represented or repressed. As such, the image of Europe is a contradictory one. The word "image" is useful; Europe's image is something quite different from the picture we have of our continent. An image is also a make, a brand, the product of a long series of past images, of stories, of tradition, of propaganda, of personal experience and reputation. Our feelings about Europe's soul relate mainly to this image. Europe needs to regain its tarnished self-esteem, in order that it can recover its soul.

At the close of an era in which economics has held sway, Europe must now develop a fresh vision of the future. This certainly involves preserving social justice, safeguarding peace and freedom, respecting human rights and fighting to restore the health of our sick planet. But in the coming age, these can no longer be accomplished by political and economic means alone. If Europe is to prove itself in the eyes of the Europeans themselves, it must now define itself through its innermost quality: the wonderful, chaotic, unique diversity of its culture."

Forbes: Malta and Cyprus: New Kids On The Euro Block

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Malta and Cyprus: New Kids On The Euro Block

Who says hard work doesn’t pay off? The European Union has given the island states of Cyprus and Malta approval to adopt the euro at the start of next year, giving the two governments the space to loosen their fiscal belts following painful efforts to meet stringent EU fiscal targets.

Finance ministers of the 27 members of the EU voted to allow the two countries to join the euro zone on Jan. 1, 2008, raising the number of countries using the currency to 15. The EU also fixed the euro's rate against their current currencies at 0.5853 Cypriot pounds and 0.4293 Maltese lira. The euro is currently trading at $1.3712, up from $1.3626.

The Seattle times: Dollar continues plunge in Europe, Canada

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Dollar continues plunge in Europe, Canada

Travel for Americans in Europe and Canada is getting more expensive by the day, as the U.S. dollar continues to sink to record lows. The euro soared to an all-time high, topping the $1.37 mark. The British pound, which has been trading around 26-year highs against the dollar, touched $2.03, and the Canadian dollar, at 94.5 cents, is worth 11 percent more than it was a year ago. Business analysts blamed U.S. economic policies, as homebuilders and retailers lowered their forecasts, causing concern about the housing market and the economy in general. "The dollar is a basket case," said Peter Schiff, president of Euro Pacific Capital Inc. Given the state of the U.S. economy, he said, the dollar could continue to fall in the coming years against the euro to $2.50 or even $3

Economist's View: Paul Krugman: Sacrifice Is for Suckers

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Sacrifice is for Suckers - by Paul Krugman

"You see, the Iraq war, although Mr. Bush insists that it’s part of a Global War on Terror™, a fight to the death between good and evil, isn’t like America’s other great wars — wars in which the wealthy shared the financial burden through higher taxes and many members of the elite fought for their country.

This time around, Mr. Bush celebrated Mission Accomplished by cutting tax rates on dividends and capital gains, while handing out huge no-bid contracts to politically connected corporations. And in the four years since, as the insurgency Mr. Bush initially taunted with the cry of “Bring them on” has claimed the lives of thousands of Americans and left thousands more grievously wounded, the children of the elite — especially the Republican elite — have been conspicuously absent from the battlefield."

Time Magazine: Why Dutch Kids are Happier Than Yours - "even though immigrant children get the shaft" - by LAUREN COMITEAU

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Why Dutch Kids are Happier Than Yours -"even though immigrant children get the shaft" - by LAUREN COMITEAU

Dutch children are the happiest children in the industrialized world. Don't take my word for it, that was the finding of an extensive survey in UNICEF's Report Card 7. The Netherlands, my adopted home and birthplace of my children beat out the competition in a study that took account of material well-being, health and safety, education, family and peer relationships, behaviors and risks, and their own perceptions of their well-being. The U.S. by contrast finished second to last ahead of Britain.

The freedom allowed to Dutch high schoolers would shock their American counterparts. The country's legal drinking age is 16, so at school parties — at least in Van Veen's school — kids 16 and over are allowed to drink beer and wine, although no hard liquor, in what he calls "a controlled setting." Fifteen-year-old Tess ten Pos, who I find sipping a latte with friends in a cafe during a break from morning classes, agrees. "When we read in English class about coma drinking in the States, it's crazy! We don't do that here."

"There is more freedom here," agrees 17-year old Karima Adda, whose father came from Morocco more than 30 years ago. "You can't wear short clothes, smoke or drink in Morocco, so that makes me happier here." Despite exceptions like Karima, who plans to be a doctor, immigrant children are less likely to get the best of Holland's impressive levels of investment in children. A recent city-wide survey of Amsterdam primary schools revealed that children of Moroccan and Turkish descent were being directed to lower-level schools than their Dutch counterparts, despite scoring identically on the all-important placement exams.

Albuquerque Tribune: The cost of war to the US: EURO 8.7 billion ($12 billion) a month

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The cost of war to the US: EURO 8.7 billion ($12 billion) a month

The boost in US troop levels in Iraq has increased the cost of war for the US there and in Afghanistan to EURO 8.7 billion ($12 billion) a month, according to the US nonpartisan Congressional Research Service. Debate within the Bush administration about the next phase of the president's Iraq strategy is centering on a report to be presented to Congress this week that says the Baghdad government has failed to meet any of its targets for political, economic and other types of progress.

Radio Netherlands: 9 Dutch soldiers dead - Did the Dutch Government hide the truth about the Dutch troop deploymentt in Afghanistan?

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9 Dutch soldiers dead - Did the Dutch Government hide the truth about the Dutch troop deployment in Afghanistan?

Tuesday's suicide attack in southern Afghanistan, which left at least 17 civilians dead and a number of Dutch soldiers injured, has again raised questions about Dutch involvement in Afghanistan. A year ago, the deployment of Dutch troops in the Afghan province of Uruzgan was sold to the Dutch public as primarily a reconstruction mission but it's becoming clearer by the day that this is a military operation with all the attendant risks.This makes the debate about extending the mission beyond its current 2008 deadline a controversial one. Now that it's clear the Dutch are in Afghanistan to fight, how will the government persuade the country to accept the dangers of staying on?

The line between propaganda and truth is sometimes hard to determine, the only sure thing is that there are going to be some fireworks in the Dutch parliament when the extension of the mission is debated later this summer. Comment EU-Digest: In the run-up to the 2006 decision to participate in the mission, the Dutch government put the emphasis on reconstruction and the resolution to send troops to Afghanistan passed.Now they have been caught lying it is interesting to see what they will say when it comes to extending the mission beyond 2008. In the meantime 9 Dutch soldiers have already been killed.

Forbes: General Motors mulls plant in Central Europe

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General Motors mulls plant in Central Europe

US car maker General Motors Corp says it is considering setting up a manufacturing plant in Central and Eastern Europe. The group has launched a study that will look at seven Central and Eastern European countries including Czech Republic, Slovakia, Hungary, Poland, Slovenia, Bulgaria and Romania.

The Guardian: Pure theatre from two master illusionists - by David Gow

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Pure theatre from two master illusionists - by David Gow

"I don't think we were diddled, fooled, done over," said a sombre Joaquín Almunia, EU economic and monetary affairs commissioner, summing up on the day after the blitz visit of Sarko to the 13-strong "Eurogroup" of finance ministers on Monday night.The workings of the pact - revised in 2005 - are arcane because they are politically devious and have been subject to chicanery in recent years, allowing Germany and France, the eurozone's two biggest economies, to escape without fines despite busting the rules for four years in a row. Now virtuous Germany, in the person of ultra-orthodox finance priest Peer Steinbrück with his projected 0.5% deficit this year, is admonishing Sarko to set an example, stick to the rules and deliver on time.

Almunia, the pact's stern guardian, said he had lectured the French president that budgetary discipline and reform were not irreconcilable but went hand in hand and ensured growth and jobs.

EUobserver.com: MEPs defy member states on EU symbols - by Mark Beunderman

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MEPs defy member states on EU symbols - by Mark Beunderman

The European Parliament is considering flying the EU flag and playing the EU anthem more often in its own buildings as part of a political message to those member states who have scrapped the union's symbols from the proposed new EU treaty. The parliament on Wednesday (11 July) adopted its opinion on the EU's reform treaty which was agreed by EU leaders last month and which will be subject to detailed negotiations in a so-called Inter Governmental Conference (IGC) in the coming months. Note EU-Digest: The Unity of the EU at home and abroad is expressed in Symbols; including the Flag, the Anthem and our strong EURO. Those who want to do away with it better get out of the European Union.

Times Online: Dollar Crash - Is the puny dollar a sign of America’s decline? - Anatole Kaletsky

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Dollar Crash - Is the puny dollar a sign of America’s decline? - Anatole Kaletsk

Yesterday, the pound and the euro hit their highest levels in a generation against the US dollar. The dollar, meanwhile, collapsed to a record low against an average of all the world’s major currencies. It is tempting to interpret the flight from the dollar in financial markets as the clearest, most objective, indicator of America’s relative decline.

Europe has long been derided as an ageing, sclerotic continent, doomed to irrelevance in a world dominated by America and Asia. But could it actually be America, not Europe, that is failing to compete in the globalised world economy and is now threatened with long-term decline?

Better Living: Thoughts from Mark Daniels: US Elections - A Pledge I'd Like Every Christian Leader to Make

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US Elections - A Pledge I'd Like Every Christian Leader to Make - by Mark Daniels

"I promise not to endorse any political candidate, platform, or party in the 2008 election cycle. I promise instead to use my influence and my recognized position of leader to pursue the mission of the Church, making disciples for Jesus Christ. When we hold Jesus captive to particular philosophies, parties, or candidates, we're really guilty of a kind of idolatry in which we make Jesus over into our image. God isn't a Republican. God isn't a Democrat."

Times online: Sarkozy takes deal-making to North Africa and hits a wall of sceptism - by Charles Bremner

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Sarkozy takes deal-making to North Africa and hits a wall of sceptism - by Charles Bremner

Fresh from “relaunching” Europe, President Sarkozy took his deal-making skills to Algeria today to promote an ambitious plan for a Mediterranean Union

Mr Sarkozy’s scheme for a cross-Mediterranean tie-up similar to the European Union’s common market has hit a wall of scepticism on both sides of the sea and put up backs in Ankara, Beirut and Brussels in particular.