Friday, June 4, 2010

Zone 3- Euro-Americas Summary Week # 120

Week # 120 – Dated May 16-22, 2010

WESTERN EUROPE

Nick Clegg, British new deputy prime minister is geared at reforming the country’s law that would better accord freedom to the citizens than limit it, vowing to deliver the most significant changes to British democracy since the Great Reform Act of 1832.

The German government is out calling for a tough regulation of international market. Chancellor Angela Merkel hopes to create a European benchmark that will help monitor and regulate budget indiscipline. Meanwhile most Greeks are still unsettled with the austerity plan of their government and are ready to puncture the economy much further with industrial strikes

Unconfirmed reports have been aired that Vakili Rad, an Iranian accused and charged for killing Shahpour Bakhtiar, who served as prime minister under Iran's shah before the 1979 Islamic Revolution, was released and swapped for Clotile Reiss, 24, a French citizen arrested in Iran during the post-election unrest. Authorities on both sides have rejected the reports of prisoner swap.

The British government is planning to make the largest digitalized newspaper archive that will preserve past events for research. The plan is to digitize up to 40 million pages of newspapers, including fragile dailies dating back three and a half centuries.

Google, the US internet giant is pitted in debate with European capitals over privacy rights. Europeans are alleging Google of storing fragment of their personal activities online which is a breach of privacy right. German authority is spearheading the prosecution with the support of UK asking for the data to be destroyed.

Portugal a predominantly Catholic country becomes the sixth European country allowing same-sex marriage. The Portuguese conservative government reluctantly approved the legislation last week.

Having experienced an unprecedented air travel derailment caused by natural phenomenon, the EU aviation safety body has drafted rule that will give more flexibility to national air traffic controllers and will involve the creation of a European crisis coordination center to ensure a smoother response to emergencies like the ash scare which grounded flights in April.

Greece-Turkey relation saw a new look with the visit of Turkish Prime Minister Recep Tayyip Erdogan to Athens. It was a historic development as both countries have been at loggerhead on the Cyrus conflict. With the visit both countries signed numerous bilateral agreements and hope to further normalize ties.

Political impasses between ruling and opposition parties in Albania persist. The latter wants the ruling party to reopen the ballot boxes of the June election 2009 under a third party (EC) investigation.

Political consensus transpired at the Croatian parliament as parliamentary committee on the constitution agreed on almost all proposed amendments, the sole exception being the controversial issue of the expatriate voting from Bosnia.

As part of the EULEX criminal investigation ongoing in Kosovo to purge the country from corruption, two government officials were investigated last week. The investigation has raised the profile of the institution in the EU.

The ethnic Albanian Democratic Union for Integration (DUI) Macedonia, leader Ali Ahmeti has rejected reports about quitting the coalition government. His party hopes to work for Macedonia-EU integration and finding solution to the name dispute between Skopje and Athens.

Romanian parliament has adopted a law on lustration that limits the involvement of former communist officials in politics. The bill was supported by 203 of the 343 members of the Chamber of Deputies.

Montenegrin Foreign Minister Milan Rocen visited Ljubljana last week and said that ousted Thai Prime Minister Thaksin Shinawatra, who has a Montenegrin passport, must not use the country as a base for sending political messages to his homeland.

The European Bank for Reconstruction and Development in its annual report states that economies in the Balkan region will register growth of 3.7% this year, instead of the 3.3% forecast in January. At the same time, the Bank warned recovery remains fragile, "with increasing differences in the pace of growth across countries and new risks arising from fiscal pressures and financial volatility in Western Europe.

The IMF has reportedly agreed with Serbian government for a possible hike in the public sector wages and pensions. Prime Minister Mirko Cvetkovic noted that Serbia has emerged from economic crisis, and returned to an annual GDP growth of 1% in the first quarter of this year.

Romanians in hundreds staged a massive protest against government austerity plan by which salaries and pensions will be slashed. Joining the demonstration were public officers, police officers, teachers, health and public administration staff, who called on the government to resign.

The diaries found in Bosnian Serb commander Ratko Mladic’s wife apartment has been turned over to the UN war crimes tribunal and the court will be using the document for prosecuting Serbs under prosecution at The Hague. Meanwhile, court still has an axe to grind with Serbia over mass grave found near Raska, in southern Serbia.

The European Parliament showed the sense of commitment by approving allocating an additional 300m-euros in compensation to Bulgaria by 2013, for dismantling the four oldest units at the Kozloduy nuclear power plant.

Somalia has become the 69th country to recognize Kosovo’s independence.

CENTRAL AND EASTERN EUROPE

An unclear film clip that was taken on a mobile phone, showing Russian-speaking men shooting survivors has been examined by Polish and Russian experts and declared digitally manipulated, intended to embarrass Moscow.

Polish Finance Minister, Rostowski has said that the Greek crisis should not adversely affect the Polish schedule for the adoption of the Euro by 2015.

Czech Prime Minister Jan Fischer's visit to Mongolia this week is the first at head of government level since 1993.

Hungarian Prime Minister-elect Viktor Orban rejected last week a Slovak call for a summit over plans to offer dual citizenship to ethnic kin in neighboring countries. Slovak premier Robert Fico had called earlier in the day for an urgent meeting with Orban over an issue he has described as a threat to Slovakia's security.

Hungary, the largest investor in Montenegro, is supporting the country's accession to the European Union. Meanwhile the Hungarian parliament approved changes to the constitution last week that would halve the number of MPs (200 from the current 386), in a bid to cut bureaucracy and streamline decision-making in parliament.

European Union officials have expressed serious concern at reports of an ongoing crackdown against the opposition in Belarus, where President Aleksandr Lukashenko has ruled with an iron fist since 1995. Scores of activists, including opposition writer Vladimir Nekliaev, a proclaimed opponent in the upcoming presidential election, have been arrested as a result of nationwide police raids.

Russian President Dmitry Medvedev and Ukrainian President Viktor Yanukovich signed a range of bilateral documents. The two heads of state signed joint statements on European security, on settling the conflict around Moldova's much-troubled Dniester region, and on security measures in the Black Sea littoral area. Medvedev has also invited Ukraine to join a security bloc of former Soviet republics. Meanwhile Ukrainian President Viktor Yanukovych met Chinese Foreign Minister Yang Jiechi last week to discuss bilateral ties.

The European Commission concluded last week that Estonia has fulfilled the so-called Maastricht criteria and is ready to adopt the euro next year. However challenges facing the tiny Baltic economy are still unchecked, where a dramatic decline has pushed unemployment to a record high.

At the economic front the zloty extended its decline as Polish officials indicated they are comfortable with its depreciation and the benchmark stock index dropped to a three- month low. Meanwhile the World Bank signed an agreement with Poland concerning economic reforms.

According to new edition 2010 of Research and Markets survey regarding Czech economy, following the global downturn the fiscal position of the nation was hit hard, prompting a rapid shift in policy from stimulus to consolidation.

According to the data released by Bloomberg, Slovakia’s GDP not only returned to growth but also blessed the market with better-than-expected numbers and now export-oriented economy is set to grow for the rest of the year and even beyond. However, economists also suggest that economic performance in the second half of the year might be affected by austerity measures if the government formed after the June 12 general election opts for belt-tightening policies.

A report published by the Hungarian ministry of environment and water reveals that Germany's Deutsche Bank has recommended that the Hungarian government sell recycled certified emission reduction (CER) credits. Hungary's decision to sell CERs that it had received from its installations to meet their compliance obligations under the EU emissions trading scheme (ETS) has already caused chaos in the carbon market earlier this year.

Ukraine’s credit ratings were raised at Standard & Poor’s to ‘B/B’, from ‘B-/C’,on improvements in the country’s policy coordination and after a Russian gas subsidy agreement helped boost the government’s debt outlook. Meanwhile the European Parliament approved a 500-million-euro (616-million-dollar) European Union loan to help Ukraine out of its financial crisis.

According to the statistics office Estonia's unemployment rate leapt to an all-time high of 19.8 % in the first quarter from 15.5 % in the previous quarter.

Flash floods triggered by days of heavy rain have killed at least four people, forced mass evacuations and cut off power to thousands in Poland Czech Republic, Slovakia & Hungary (Central Europe). Prime Minister Donald Tusk has said that if the losses caused by the flood amount to over two billion Euros than Poland would become eligible for up to 100 million Euros in European Union aid funds. He ruled out any possibility to call a state of emergency because it would delay presidential elections scheduled for June 20.

Organizations representing Hungary's gypsies, or Roma, have expressed concerns about a new wave of violence against the minority in the country after the entry of a far right party in parliament. Hundreds of people in a heavy rain gathered in a rally, which was aimed at easing tensions between the two communities.

For the sixth time the EU celebrated 17 May as International Day against Homophobia (IDAHO), an annual event.

On May 16 this year, Memorial Day was observed in Ukraine, Bykivnia Forest, the place where hundreds of thousands of Ukrainians, Poles, Russians, Jews, people of other ethnic groups were massacre by the tyrannical Stalinist government.

Latvia's relations with neighboring Russia came under strain after the Latvian government accused Russia of attempting to influence the European Court of Human Rights (ECHR), following a decision on a controversial war crimes trial of Kononov versus Latvia. Vasiliy Kononov, an 87-year-old former took part in the killing of nine villagers near the Latvian-Belarusian border in 1944 and Latvia later convicted of war crimes.

RUSSIA

The leaders of Russia and Turkey have said that the Palestinian Islamist group Hamas should not be excluded from peace efforts in the Middle East.

For the first time since the Bolshevik Revolution, Russia’s president visited Syria. The two premiers announced at a press conference that they had talked about nuclear cooperation, including the potential construction of a nuclear power plant in Syria. Meanwhile Israel has criticizes Russia's plans to supply arms to Syria

Four young men were seized in Moscow for trying to hold an unauthorized rally near the Iranian embassy. The police did not identify the political belonging of the young men but some media outlets reported that members of the outlawed National Bolshevik Party tried to hold the rally.

Russia's biggest business lobby has asked Prime Minister Vladimir Putin for a moratorium on tax hikes and called for a mass privatization program to plug the budget deficit.

President Dmitry Medvedev has ordered tighter security at the 2014 Winter Olympics, which will be staged in the same mountain range that is home to Islamist insurgents in the region.

In Russia’s Dagestan region at least 8 people have been reported dead as a bomb blast hit a police-escorted vehicle carrying workers sent to fix a communications tower that had been damaged in a sabotage attack overnight.

Russian border guards seize large batch of illegal Chinese imports comprised of men's, women's and children's clothes. The clothes were transported by three Kamaz trucks.

Meanwhile Russia’s economy expanded for the first time since 2008 in the three months through March as the world’s biggest energy producer rebounds on an oil-funded stimulus program and record-low borrowing costs. According to Bloomberg news, Russia’s Gross Domestic Product rose an annual 2.9% in the first quarter after contracting 3.8 % in the last three months of 2009.

Jailed former Russian oil tycoon Mikhail Khodorkovsky ended a two-day hunger strike last week after the Kremlin confirmed complaints about his detention had been passed on to President Dmitry Medvedev. Khodorkovsky, once Russia's richest man, was arrested in 2003 after falling foul of then-president Vladimir Putin and is serving an eight-year sentence for tax dodging.

A 9-month-old girl from Tajikistan has been hospitalized in Moscow with polio as a Tajik outbreak reached the Russian capital.

Some 84 people injured in the methane blasts at the Raspadskaya coalmine remain at the hospitals, 46 people passed outpatient treatment and 3 people were discharged from hospitals. Igor Volkov, the head of the Raspadskaya coal mine resigned earlier last week, a day after he was severely criticized by Russia's Prime Minister Vladimir Putin regarding safety violations.

A Moscow court has ruled that Russian air traffic controllers cannot go on strike. The national union of air traffic controllers is in dispute over a new contract and is demanding the resignation of Valery Gorbenko, who heads Russia's state air traffic corporation. The protest started in April and by the end of the month staff at 55 air traffic management centers were involved. Rather than stopping work, the controllers are on a hunger strike, reportedly consuming less food when not on the job.

Russia’s new research module has been successfully latched on ISS, brought to orbit by the U.S. Atlantis space shuttle at the cost of about $200 million.

Rumors regarding the development of a new strategic bomber for the Russian Air Force, the so-called perspective long-range aviation complex have been confirmed by Russia’s Vice Prime Minister Sergey Ivanov during a meeting with Russian reporters in Washington.

US/CANADA

According to Secretary of State Hillary Clinton the United States and other major powers have agreed on a draft resolution for new U.N. sanctions against Iran over its nuclear program. The announcement came a day after Iran accepted a Brazilian and Turkish-mediated deal to export some of its enriched-uranium stockpile. Iran's acceptance of the uranium deal mediated by Brazil and Turkey had been widely viewed by analysts as an effort to blunt the U.S.-led drive in the U.N. Security Council for new sanctions.

Meanwhile Senatorial party primaries are on in the U.S but characterized by discontentment for the establishment. The primaries are showing the deep rooted feelings of Americans, how they would want change to be effected in Washington through new elected public officers. It was a test for both democrat and republican parties as their supports were shaken, and also accentuated the weakness of Obama’s endorsement on fellow party members.

Support for political parties in Canada continues to fluctuate; recent poll by Ekos suggests that the minority conservative government is heading all opposition parties. The Liberal opposition party is 10% behind the conservative party.

United States financial regulators are geared at stepping up rules that will further guide financial conduct as preventive measure to guide against the repetition of stock market's epic dive. The measure is termed as circuit breaker which will give investors a break during extreme market dips; they'll be less likely to set off a chain reaction of human and computerized selling. Similarly, the Senate passed a far-reaching financial regulatory bill that broadens government influence on the banking system and financial markets; with the measure any eventual reoccurrence of 2008 financial crisis could be abated.

Congressional investigators into the alleged attempt by Umar Farouk Abdulmutallab to blow up a Detroit-bound airliner has come up with 14 points kicking at the intelligence agencies for failing to monitor him closely and linked such failure to the intelligence lapse leading to 9/11.

Western Powers along with China and Russia agreed on new sanctions on Iran. The new sanctions were against Iranian financial institutions, including those that supported the Islamic Revolutionary Guards Corps responsible for overseeing the military aspects of the nuclear program. They have also assumed commanding roles in the broader Iranian economy. However, the Chinese blocked any measure that would stop the flow of oil from Iranian ports or gasoline into the country. The new sanctions come amid Iran’s negotiation with Brazil and Turkey over nuclear swap. Brazil and Turkey, non-permanent UNSC members rejected the sanctions and called for acknowledging the diplomatic break through as Iran has agreed on nuclear swap.

The United States has notified HCOC, an organization overseeing efforts to curb the spread of such weapons that pre-notification regarding the launch of ballistic missile tests or satellites will always be issued. Although the document is said to have exempted certain weapons, yet it was reported as an attempt by the United States to consolidate the new START treaty reached with Russia.

The Vatican responded to the technological breakthrough in the United States by which synthetic cell from man’s DNA was created. The church though acknowledges the scientific development but warns against the misuse of the invention if standing contradictory to the view that life only comes from God.

Britain's Iraq war inquiry panel headed by former civil servant John Chilcot was in the U.S last week continuing their inquiry though not publicizing those to be interviewed. The essence of the panel however is questioned as it has no power to apportion blame or establish criminal or civil liability.

LATIN AMERICA

Argentine President Cristina Kirchner has called on Britain's new Prime Minister David Cameron to halt all oil exploration in the "disputed" waters around the Falkland Islands. Kirchner also used an EU-Latin America summit last week to call for a resumption of talks between Buenos Aires and London over the disputed Islands.

According to authorities Argentina and the United Nations Office on Drugs and Crime (UNODC) have agreed to set up an office in Buenos Aires to coordinate anti-drug and anti-crime efforts in the region.

According to reports the European Union (EU) and Mercosur (Argentina, Paraguay, Brazil and Uruguay) renewed their talks last week in Madrid to reach a free trade agreement that would open up a potential market of 270 million people to the EU.

Brazilian President Luiz Inacio Lula da Silva made an official visit to the Middle East and Europe last week in his latest foray into bilateral and international affairs. The tour spanned Russia, Qatar, Iran, Portugal and Spain, and was aimed to show Brazil's determination to act as a mediator in the Mideast conflicts and strengthen its growing role on the international stage.

Earlier this month, Iran, Turkey and Brazil signed a joint declaration in Tehran to endorse a fuel swap according to which Iran will ship most of its low-enriched uranium to Turkey in exchange for the 20 % uranium fuel needed for its reactor. Meanwhile the Brazilian government rejected Israeli criticism of the deal following statements by a senior Israeli official accusing Iran of having 'manipulated' Ankara and Brasilia. The central concern in Israel is that the deal will delay the onset of harsh United Nations sanctions over Iran's contentious nuclear program.

According to a statement by Da Silva Brazil will finance €1bn of food exports to Iran over the next five years to make trade between the two countries less dependent on foreign banks.

The Foreign Ministry reported that an agreement between the governments of Russia and Brazil on visa-free short-term trips will come into effect on June 7.

According to the U.N.'s highest court Honduras has dropped a case accusing Brazil of meddling in its internal affairs by allowing ousted President Manuel Zelaya to stay at one of its embassies in 2009. Zelaya now lives in the Dominican Republic and is trying to negotiate a reconciliation that recognizes current Honduran President Porfirio Lobo.

According to a US State Department official the Pakistani man arrested by Chilean police after traces of explosive material were detected on his belongings during a check at the United States Embassy in Santiago is not believed to be connected to the attempted bombing in Times Square earlier this month. The accused was charged with illegal possession of explosives, but was freed pending a probe.

Chilean President Sebastian Pinera said last week that he plans sweeping electoral reforms that could help him woo opposition support for capital market reforms and an $8.4 billion financing package after a massive earthquake.

Peruvian President Alan Garcia and his Chilean counterpart Sebastian Pinera agreed in a meeting last week to make efforts to bring about a thaw in bilateral relations. Diplomatic ties between the two nations have been frozen since January 2008, when Peru filed a suit against Chile at the International Court of Justice in The Hague over a marmite border dispute between them.

According to a report released recently by a coalition of civic groups killings of gays and lesbians have risen in Mexico despite a government tolerance campaign and a law legalizing same-sex marriage in the capital.

In Mexico gunmen killed a candidate for mayor from President Felipe Calderon's conservative National Action Party last week. The party's leader said that the victim and other candidates had been receiving threats.

Meanwhile the Mexican federal Attorney General's Office has reported that a former Mexican presidential candidate Fernandez de Cevallos who has remained a power broker in the ruling party is missing amid signs of violence.

A band of armed men shot and killed eight people in a bar in northern Mexico and wounded 18 others in the latest outbreak of violence in the country. Meanwhile a recent report discloses that since December 2006, the Mexican federal government charged more than 400 government officials at all levels with accepting bribes from drug cartels. The chart shows how the cartels differed in what kind of officials they targeted.

AUSTRALASIA

Anti-Muslim politicians in Australia's most populous state, New South Wales failed in their move to see the ban of veil in the state. The parliament rejected the proposal by 26 to 3 votes. Debate for the veil ban was triggered by national Senator Cory Bernardi arguing that veil could be used for robbery.

Aborigines in central Australia have recorded the highest pneumonia in the world after Gambia.§

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Business and Politics in the Muslim World (BPM)refers to the project entitled, "Globalized Business and Politics: A View from the Muslim World.' The blog development project has been undertaken and jointly developed by the Gilani Research Foundation and BPM as a free resource and social discussion tool.
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Friday, May 28, 2010

Zone 3- Euro-Americas Summary Week # 119

Week # 119 – Dated May 07-14, 2010

WESTERN EUROPE

Britain's humbled Labour Party has begun a potentially bitter race for Gordon Brown's successor following its ouster after 13 years in office. Ex-foreign secretary David Miliband leads the field to become the opposition leader who'll take on Britain's new coalition chiefs David Cameron and Nick Clegg —meanwhile his younger sibling Ed Miliband has emerge as his closest challenger.

Meanwhile Britain's new Prime Minister David Cameron has banned the use of mobile phones at cabinet meetings in a bid to ensure his top team stay focused on the challenges facing them.

German Chancellor Angela Merkel has abandoned hopes of pushing through tax cuts for Europe's biggest economy after what she called a "bitter defeat" in an election overshadowed by the Greek debt crisis. Merkel's center-right coalition lost control of Germany's most populous state, North Rhine-Westphalia, in an election last week that also erased its majority in the upper house of parliament — making the country harder to run.

Spain's leading labor union has called a civil servants strike next month to protest government plans to cut salaries as part of a plan to reduce the deficit. Meanwhile Portugal ordered deep wage and spending cuts along with higher taxes to slash the public deficit by more than half. As governments stepped up their war on debt, German Chancellor Angela Merkel warned that the whole European Union would be under threat if the euro was allowed to fail in the debt crisis. The European single currency slumped to a new 14-month low at 1.2517 dollars on Thursday amid persistent concerns over the debt crisis.

Pope Benedict has said that the greatest threat to Catholicism came from "sin within the Church," one of his most forthright comments so far on a sexual abuse scandal that has created turmoil in the church. Meanwhile an Austrian bishop who has pushed the Vatican for reforms said in an interview last week that the Catholic Church should drop its celibacy requirement for priests.

Iran is willing to hold talks with the European Union's foreign policy chief over its disputed nuclear activities, a senior official said last week, after the bloc's top diplomat spoke of new sanctions against Tehran.

CENTRAL AND EASTERN EUROPE

President Bamir Topi began talks with Albanian leaders and international representatives on (May 7th), in another bid to end the political stalemate that is threatening the EU integration process. Meanwhile local media reported that Albania may be included in a list of countries where NATO's missile defence shield will be deployed.

The European Commission (EC) is pressing Bosnia and Herzegovina (BiH) to approve a law on holding a population census across both entities.

Hundreds of students and professors in Bulgaria staged a protest last week (May 11th) outside the country's biggest university over cuts in education subsidies.

Bulgarian Environment Minister Nona Karadzhova announced last week that companies are being denied the right to participate in revenue-raising carbon emissions trading, while blaming a lack of appropriate action by the previous government and its disregard for specific recommendations made to Bulgaria regarding the issue.

Political and economic criteria that Kosovo is required to meet are the main priorities of the integrations ministry, Minister Besim Beqaj said last week on May 9th, Europe Day, a state holiday in Kosovo.

European Parliament (EP) official Hannes Swoboda said on Thursday (May 13th) that one solution for Serbs in northern Kosovo would be broad autonomy, similar to that offered Serbs in Bosnia and Herzegovina (BiH), based on the Dayton Peace Accord.

Meanwhile Kosovo’s Opposition parties say that early elections would be a better option than maintaining the current government coalition. They blame strained relations between the government and international personnel, such as EULEX and the International Civilian Office. EULEX personnel recently raided Ministry of Transport and Telecommunications offices as part of an anti-corruption investigation.

Kosovo’s Foreign Minister Skender Hyseni has asked Belgrade to provide facts about mass graves dating from the 1998-1999 conflict. Meanwhile Serb Authorities have found a new mass grave believed to contain the remains of about 250 ethnic Albanians killed during the 1998-1999 Kosovo conflict.

Djibouti has formally recognized the Republic of Kosovo, the 68th country to do so since Pristina declared independence from Serbia in February 2008.

The second world conference on inter-religious and inter-cultural dialogue closed in the town of Ohrid Macedonia last week The two-day forum brought together 500 representatives of religious communities, experts and politicians from 30 countries. Meanwhile several thousand Albanians rallied in downtown Skopje on May 10th to protest what they describe as discriminatory policies against them. They called for halting legal proceedings against ethnic Albanians involved in the 2001 conflict and insisted Albanian be recognized as an official language. The peaceful march ended without incident amid heavy police presence.

Macedonia has also takes over the six-month chairmanship of the Council of Europe's (CoE) Committee of Ministers from Switzerland earlier this month.

Thousands of farmers blocked the area around the government building in Bucharest Romania earlier this month, demanding the resignation of all officials at the Agriculture and Rural Development Ministry, due to alleged incompetence. The protestors demanded government subsidies for fuel and irrigation water that they say are late.

According to local media Serbia will have to pay 36m euros in damages to an Israeli company for violating a contract to rent a spy satellite. Belgrade also reportedly must pay about 13,800 euros in legal fees.

Speaking at a conference on Polish EU presidency organized by Warsaw University, Deputy Polish Prime Minister said last week that Eastern Partnership, energy security, commerce and competitiveness will be among priorities of the0020Polish Presidency of the EU due to start on July 1, 2011. Meanwhile while affirming that there is no reason to believe that Poland is threatened in connection with the Greek crisis. PM Tusk admitted that the nation’s zloty has come under pressure against major currencies that has delayed entry to the ERM-2 mechanism, a pre-requisite for adopting the European single currency.

Hungary's new parliament plans to take up the bill, under which the nation would offer citizenship to Hungarian minorities living abroad. Responding to this proposal Slovakia has recalled its ambassador to Hungary.

Meanwhile a Hungarian government spokesperson has said that the incoming government's plans to annul retroactively the outgoing government's Jan. 1 personal income tax measures would widen the 2010 budget deficit to a level the IMF and EU would disprove of. The center-right opposition Fidesz party recorded a landslide victory at April's parliamentary elections and is in the process of forming the next government.

Regarding the Greek aid package hammered out in crisis this past weekend, while Slovakia has not formally rejected the package, the Slovak Prime Minister has said he cannot grant Greece a loan before it fulfils its commitments. The Austrians have also chimed in with words of doubt.

Belarus has recalled its ambassador from Kyrgyzstan for consultations. The Foreign Office said that it has taken this step for security reasons because extremists have threatened its personnel.

Ukraine’s foreign minister Kostyantyn Hryshchenko said last week that the country is unlikely to join a customs union involving Russia, Belarus and Kazakhstan because it is already a member of the World Trade Organization (WTO).

Meanwhile the Organization for Economic Cooperation and Development (OECD) had accepted Israel, Slovenia and Estonia as members, bringing the organization's membership total to 34.

Latvia's prime minister said last week that the fragile economy was recovering faster than expected leading to a quicker exit from price deflation. Latvia has promised gradually to reduce its budget deficit as one of the conditions of winning funding from a 7.5 billion euro bailout agreed at the end of 2008 with IMF and the EU.

At the economic front the Polish government asked the reluctant central bank to support its request to extend the $20.5 billion (13.8 billion pound) credit line, which expired last week. Poland and several other countries received it to help weather the financial crisis a year ago.

The Czech government needs to find about 40 billion to 45 billion crowns ($2.12 billion to $2.39 billion) in tax hikes and savings to achieve next year's deficit target of 4.8 % of gross domestic product. Meanwhile the country's caretaker cabinet is set to quit after the May 28-29 election.

The European Commission has recommended that Estonia be allowed to adopt the common euro currency next year, as it meets all the economic criteria.

Most Hungarian workers with children will pay less tax under a family tax system to be launched next January. The measure is part of the incoming centre-right Fidesz government's efforts to stimulate Hungary's economy, which suffered its worst downturn in nearly two decades last year, and is expected to lag its European peers on the path to recovery.

The Latvian hacker, a "virtual Robin Hood", who stole millions of classified tax documents from government computers and leaked the information via Twitter, has been caught by police. Meanwhile economic data released in Latvia, Lithuania and Estonia last week suggested the worst of the Baltic States' deep recessions may be over.

The Lithuanian president during a visit to Dublin last week talked about ‘Brain Drain’ suffered by the nation. The impact of the global economic crisis on Lithuania has made the flow of migration from the country “more aggressive” and almost 90,000 Lithuanians currently live in Ireland.

Poland’s Catholic Bishops Conference announced that Papal diplomat Jozef Kowalczyk has been appointed new Catholic Chief Clergy of the nation.

Last week marked the 65th anniversary of the end of World War II in Europe. Most countries from the former communist bloc mark the defeat of Nazi Germany on May 9th every year.

RUSSIA

Somalia’s transitional government has called on Russia to explain about why Russian forces after arresting pirates set them free aboard their small vessel. A military official admitted that they were stripped of their weapons and navigation equipment. A Russian media later quoted a military source saying the pirates were now likely dead.

The Moscow department of the Russian Prosecutor’s Investigative Committee (SKP) has opened a criminal case against vice mayor of Moscow Alexander Ryabinin accused taking commercial property from a company as a bribe for agreeing in December to a development project in a Moscow district.

Regarding the recent visit of the Russian Premier to Syria, Syrian media has welcomed the visit, with government newspaper Tishrin hailing Russia's "growing role" in the Middle East, especially in the context of Washington's "failure to protect stability and world peace, because of its flagrant bias" towards Israel.

Turkey agreed last week to let Russia build and own a $20 billion nuclear power plant in a deal that opens a new page in Russia's global expansion in the industry. Rosatom, the state nuclear corporation, signed the agreement to build four reactors on Turkey's southern Mediterranean coast during a visit by President Dmitry Medvedev to the country.

Meanwhile a Moscow court sentenced a map enthusiast to four years in prison last week for passing classified information to the United States that one report said could help the U.S. military in a missile strike against Russia.

A Major agricultural group Rusagro became the latest Russian company to postpone plans for initial public offering amid uncertainty on international markets. Meanwhile Swedish retailer IKEA, the biggest owner of commercial real estate in Russia, has been beset by accusations of corruption.

An explosion in the Raspadskaya coal mine of the West Siberian town of Mezhudechensk has left at least 12 dead, 59 injured and over 80 trapped. Also reports from southern Russia say a car bomb exploded near a military base in the Daghestan region today, killing at least one person.

The reception at the Russian Victory Day parade on Red Square, that marked the final defeat of Nazi Germany by the Soviet Union in World War II., was attended by 21 foreign leaders, including Chinese President Hu Jintao, German Chancellor Angela Merkel and the heads of state of almost all the ex-Soviet nations.

Russia and Ukraine are release unified history textbook by end of 2010. The two nations differ in their interpretation of the 1930s famine in Ukraine. Ukrainian nationalists say Russia, as the legal successor of the Soviet Union, should bear responsibility for the famine in which more than 3 million people perished.

A Russian helicopter company is planning to develop the world's first fifth-generation combat helicopter, which according to experts would be able to attack fighter jets and be invisible for radars.

According to reports Imams in Russia will be able to access the country's prison system and work with Muslim prisoners according to a new agreement signed between the federal prison authority (FSIN) and the Russian Council of Muftis.

Everyone entering Russia from Tajikistan is to be vaccinated against polio, the Foreign Ministry said last week after two babies became ill with the disease after arriving from the Central Asian state. Some 300 cases of polio were registered in Tajikistan recently with 13 deaths. Around 90% of those infected are children under five years old.

US/CANADA

US Federal Reserve Chairman Ben Bernanke described the Greek debt crisis as a European problem but one that could affect U.S. banks if not dealt with.

Several lawmakers are urging the Obama administration to put the Pakistani Taliban on a State Department terrorism blacklist that would impose sanctions on the group, which officials say is linked to the failed Times Square car bombing. The move would freeze the group's U.S. assets and make it a crime for Americans to offer it material support.

According to a new Associated Press-GfK Poll the Gulf of Mexico oil spill hasn't stained President Barack Obama nor dimmed the public's desire for offshore energy drilling.

With public anxiety over the fragile economy threatening Obama's Democrats in November's congressional elections, he tried last week to turn the tables on Republican critics, accusing them of sitting on the sidelines last year when he was tackling the financial crisis. Meanwhile President Obama's nomination of Elena Kagan to the Supreme Court seat is elevating touchy social issues in an election year.

President Obama sent a landmark arms-reduction treaty with Russia to the Senate last week for ratification and called for $80 billion in nuclear funding, which could help win opposition support.

Meanwhile Secretary of State Hillary Clinton launched fence-mending talks with Afghan government leaders last week by assuring President Hamid Karzai that the U.S. will help rebuild and defend Afghanistan long after the last U.S. combat troops have left.

Six U.N. human rights experts said last week that Arizona's new law on illegal immigration could violate international standards that are binding in the United States.

Canadian legislators grilled the head of BP Plc Canadian unit last week, concerned about the risks of the company's plans to drill in Arctic waters after the catastrophic Gulf of Mexico oil spill.

LATIN AMERICA

According to an Argentine court official, former economy minister Jose Martinez de Hoz, the economic brains behind the 1976-1983 military dictatorship, was arrested last week following the lifting of an amnesty law.

According to reports Brazil is to build a US$483 million (S$671 million) nuclear reactor to produce radioactive material for medical use as well as industrial-grade enriched uranium. Meanwhile Brazil's government is starting a program to replant deforested areas of the Amazon with palm trees and harvest their oil for bio-diesel.

Brazilian Finance Minister Guido Mantega announced last week that his country will lend 286 million U.S. dollars to Greece through the International Monetary Fund (IMF). The money will come from the country’s foreign exchange reserves, which currently amount to 245 billion dollars.

According to the Brazilian Health Minister Jose Gomes Temporao a total of 50 Brazilians have died and 361 others have been hospitalized due to the A/H1N1 flu in the country since April 3.

Chilean President Sebastian Pinera met last week with 53 provincial governors to unveil his work plan highlighting goals and commitments of the government. He specifically stressed the challenges in reconstructing the earthquake-devastated areas and the need to create a new financial plan that underlines the reallocation of resources.

A Pakistani man has been charged with violating gun control laws in Chile after traces of explosives were detected on his body and belongings during a visit to the US embassy in Chile.

Mexico's President Felipe Calderon last week defended the army's record in fighting organized crime, saying that the soldiers and sailors are fighting for freedom and justice in the country. Meanwhile Mexico has extradited a former state governor to the United States to face charges of helping smuggle cocaine through Cancun to the U.S., in a high-profile demonstration of the nation's increased willingness to extradite suspects as it battles surging drug violence.

Hugo Chavez, the President of Venezuela, has called for the institutionalization of the Latin American Common Market, UNASUR and has warned that its twelve member states should remember the commitments they made to Haiti. Meanwhile a former Venezuelan defense minister and critic of President Hugo Chavez was sentenced to more than 7 years in prison last week after being convicted of embezzlement and abuse of power.

Chavez, who only recently signed up to Twitter, has rapidly risen up the ranks to become the top tweeter in the country despite having previously described the service as a “tool of terror.” The leader has also hired hundreds of staffers to reply to tweets.

Meanwhile Business leaders have accused President Hugo Chavez of attempting to strangle Venezuelan businesses that rely on imports by making them pay more for foreign-made products. They said Chavez is irresponsibly allowing the black-market rate for U.S. dollars to spiral upward, which increases costs for close to half of the country's importers. §

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Business and Politics in the Muslim World (BPM)refers to the project entitled, "Globalized Business and Politics: A View from the Muslim World.' The blog development project has been undertaken and jointly developed by the Gilani Research Foundation and BPM as a free resource and social discussion tool.
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