Europe
EU summit to discuss direct recapitalisation of Spanish banks
Spain’s Economy Minister Luis de Guindos said today that direct recapitalisation of Spain’s banks using EU bailout funds will be discussed at the major summit on the eurozone crisis, to be held tomorrow and Friday. Also on the agenda are greater banking union along the lines of a report presented earlier this week by European Council President Herman Van Rompuy, said Mr de Guindos. Direct recapitalisation of Spanish banks is seen as a necessary step to help Spain recover from its crisis, which differs from that of Greece in being concerned with private sector debts rather than public.
Merkel again rejects Eurobonds
German Chancellor Angela Merkel has again spoken against the idea of pooling the debts of eurozone countries through common bonds and urged greater competitiveness in the EU. Speaking before talks with French President Francois Holland ahead of the EU summit this week, she told parliament in Berlin that the proposal for Eurobonds went against Germany’s constitution. Describing them as “the wrong way”, she said “joint liability can only happen when sufficient controls are in place.” Mr Hollande believes Eurobonds should be a priority for helping debt-stricken countries reduce borrowing costs, but as they would raise the burden on German taxpayers Mrs Merkel insists on moves toward greater fiscal and banking union must be made.
Queen Elizabeth and Martin McGuinness shake hands
The Queen of the United Kingdom and Martin McGuinness, a former commander of the Irish Republican Army, responsible for sustained terror attacks throughout the UK during the ‘80s and ‘90s, have shaken hands for the first time. It happened once in a private meeting at the Lyric Theatre in Belfast this morning, and again in public. A spokesman for Sinn Fein, the Irish nationalist political party, said Mr McGuinness told the Queen that their meeting was a “powerful signal that peace-building requires leadership”.
North America
Californian city faces bankruptcy
The city of Stockton in California is set to become the largest US city to declare bankruptcy. Mayor Ann Johnston described the move as “the most difficult and heart-wrenching decision” to the city council, which endorsed it. The river port city of nearly 300,000 people thrived during the US housing boom, developing its waterfront with rich property taxes, but it suffered equally badly in the following market crash and has had to cut public services deeply. Unemployment and crime rates are now among the highest in the country, and it was ranked America’s Most Miserable City in 2010. Mayor Johnston said filing for bankruptcy was a necessary step to begin the recovery process.
Latin America
China offers $10bn loan to Latin America
China’s Premier Wen Jiabao concluded his visit to Latin America with the offer of a $10bn credit line to support infrastructure development across the continent, and proposed a free trade pact between China and the Mercosur trade bloc, which includes Brazil, Argentina, Uruguay and Paraguay. China, which has the world’s largest foreign exchange reserves, has been looking for new investment opportunities, and its infrastructure development companies have long been keen to tap new markets. Meanwhile, many Latin American countries are still developing, and keen to build new infrastructure to boost economic growth. Premier Wen has also proposed currency swap agreements with the region’s economies.
Argentine Bishop quits over photos of bikini-clad woman
The Pope has accepted the resignation of Argentine Bishop Fernando Bargallo after photos emerged of him embracing a woman in a bikini on a Mexican beach. After initially saying she was a childhood friend, he later admitted to having had “amorous ties” with her.
Asia and Russia
Migrants and locals clash in Chinese province
Hundreds of local people and migrant workers from a neighbouring province have clashed in a town in the Chinese province of Guangdong, in the far southeast of the country. The area is home to garment factories employing millions of migrant workers. Violence erupted on Monday night after a teenager was detained by police for allegedly beating a primary school student. Friends and family members gathered outside the offices of local authorities, with numbers swelling to about 300 on Monday night and violence escalating as people began throwing rocks. Official statements said the situation was resolved quickly. According to the Hong Kong-based Information Centre for Human Rights and Democracy, at least 30 people were hurt and two police cars smashed, with the incident triggered by a fight between a Sichuan youth and a local man.
Chinese officials disciplined over late-term abortion case
A Chinese official has been sacked and other punished over the case of a woman forced to have a late-term abortion, according to state-run media. The officials “used crude means” to persuade Feng Jianmei to agree to the abortion, with her pregnancy terminated at seven months, because she had violated the one-child law. The law aims to control China’s population of 1.3bn, but has been widely criticised by rights groups who argue it results in women being forced into abortions.
Africa and Middle East
Pro-government TV channel attacked in Syria
Seven people have died in an attack on the head offices of Ikhbariya TV channel in the town of Drusha, 14 miles south of the Syrian capital Damascus. Ikhbariya, though separate from the state-run Radio and Television Corporation, receives government funding and favours the country’s Preisdent Bashar al-Assad, who had described Syria as being in “a real state of war” just hours earlier. Since March 2011 it has been seen as a major propaganda machine for the government. The victims were journalists and security guards.
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