Europe
A conservative-led coalition government has taken power in Greece yesterday, promising to steer the country through one of the biggest crises in its history. As part of this, the new government has pledged to negotiate softer terms on its international bailout. Antonis Samaras, a Harvard-educated economist and leader of the right-of-centre New Democracy party, is Greece’s new prime minister following Sunday’s elections. This has, at least for now, ended weeks of uncertainty that has rattled financial markets and cast doubt over Greece’s future in the Eurozone, to which the new government is committed. A significant domestic challenge remains: the Greek public is disgusted with both the New Democrats and their coalition partners, the PASOK socialist party, as is reflected in the rise of the far-left Syriza bloc that wants to scrap the bailout deal outright and only narrowly failed to win the election.
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Eurozone finance ministers are meeting today and tomorrow to discuss a bailout for Spanish banks, the future of the Greek arrangement, and possible banking union. EU leaders will examine resulting proposals next week at a summit in Brussels with a view to centralising economic decision-making in the Eurozone; it is hoped this will reassure the markets about the euro’s future, though the measures may take years to realise. However, financial analysts are broadly sceptical that an instrument for debt mutualisation across the Eurozone – a Eurobond – will be agreed in the near future, due largely to continued German opposition. In addition to banking union, European debt mutualisation is one of the overarching structural reforms many analysts believe will need to be made if the euro is to have a long-term future.
United States
The Supreme Court is preparing for a major ruling on President Obama’s healthcare reforms. This follows yesterday’s publication of a new study by consumer advocacy group Families USA, which showed more than 26,000 adults die prematurely every year in the US because they lack health insurance. Families USA Executive Director Ron Pollack said the release had been timed to highlight what was at stake, with the court’s ruling potentially overturning the ‘Obamacare’ reforms by the end of next week. Republicans have continued to be vocal in their opposition to the reforms, with House Majority Leader Eric Cantor promising this month to “take a bill to the floor that calls for the total repeal of Obamacare” if the Supreme Court leaves any of the reforms intact. Mitt Romney, the Republican candidate for November’s Presidential election, has been quieter on the issue, having provided vague outlines for a “consumer market” healthcare system.
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Most national polls for the past few weeks have shown the Presidential candidates tied or within one or two points of each other, but a poll yesterday by Bloomberg raised eyebrows when it showed President Obama with a strong 13-point lead over Mr Romney. Pollsters have said the result is an outlier – which Bloomberg acknowledges – but have seen nothing in particular in its samples to explain it.
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Meanwhile, Mr Romney’s campaign yesterday saw questions on his immigration policy during a campaign conference call that was supposed to focus on the economy. This was prompted by President Obama’s relaxation of immigration policy last week, which was hailed by Hispanic voters. One of Mr Romney’s staff terminated the call early after several “off-topic” questions. Mr Romney took a hard line against illegal immigration during the Republican presidential primaries, and has since struggled to develop a message that appeals to Hispanic voters and satisfies the conservative Republican core.
Latin America
Paraguayan President Fernando Lugo is facing impeachment for his handling of a forced land eviction last week, which escalated into violence and saw the deaths of seven police officers and at least nine farmers. Mere minutes following the near-unanimous decision by the opposition-controlled Chamber of Deputies to begin the impeachment process, President Lugo said he will defend himself at trial and refused to resign. The motion still has to pass the Senate, also opposition controlled, before it is approved. The scandal has already resulted in the dismissal of the Interior Minister and the chief of police. President Lugo had campaigned for the needs of the poor and promised land for around 87,000 landless families in his 2008 election campaign.
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Ecuadorian President Rafael Correa has said today that his country will examine the asylum case of Wikileaks founder Julian Assange, promising Ecuador will make a “sovereign decision” after examining what danger there was to his life. Mr Assange is currently at Ecuador’s London embassy seeking diplomatic asylum to avoid deportation to Sweden, where he faces charges of rape and assault, which he denies. He also faces arrest in the United Kingdom for breaching his bail conditions.
Africa
The results of Egypt’s presidential election remain in doubt today following allegations of fraud. The Muslim Brotherhood, which claims victory in the elections, has called for street protests against alleged manoeuvrings by the ruling military regime to deny them power. Cairo’s Tahrir Square, scene of the uprising that overthrew President Hosni Mubarak 16 months ago and sparked the Arab Spring, is occupied by protesters demanding that the generals honour their word and hand power over to a civilian government by July 1. Indications are that the military council are resistant to this; they have dissolved the parliament and set strict limits on the incoming president’s powers.
Asia and Russia
Russian Foreign Minister Sergei Lavrov confirmed today that a cargo ship bound for Syria was carrying repaired combat helicopters to the Syrian government, and said Russia would continue to discuss arms contracts with Syria despite Western and Arab criticism. British foreign minister William Hague announced on Tuesday that the ship had apparently returned to Russia after a London-based insurer withdrew its cover when informed the ship was carrying weapons. Mr Lavrov has attacked the West and the insurance company, saying the weapons – air defence systems – could not be deployed against the civilian protesters who oppose the Syrian regime. Russian President Vladimir Putin opposes removing Syrian President Bashar al-Assad as a precondition for a solution to the Syrian crisis, while America and Britain are insistent that he should go.
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President Putin faces continued civil unrest in Russia itself following his controversial election victory in May. In a speech to investors at the Kremlin today, he vowed not to let protests against his rule escalate into outright civil unrest, and stated his commitment to building a “new economy” through liberalising reforms and privatisation. The speech was met with some scepticism, however, with investors in both Russia and the West saying Mr Putin had expressed similar intentions often in the past, with little sign of action.
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Burmese opposition leader Aung San Suu Kyi has called for the United Kingdom to support pro-democracy moves in Burma, in an historic address to both Britain’s Houses of Parliament. Ms Suu Kyi said British and Western support could do much to drive further change in Burma.
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