Monday, May 4, 2009

[RED DEMOCRATICA] CFR.org Daily News Brief, May 4, 2009



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May 4, 2009

EXECUTIVE SUMMARY

- European Commission revises economic estimates; EU faces deeper recession.
- Nepalese prime minister quits following row over army chief.
- Conservative businessman wins Panama elections.
- China, Japan, South Korea set up crisis fund for loans.

Top of the Agenda: European Economy

The European Commission forecast today that its member economies will shrink 4 percent this year, in a massive revision downward from previous estimates (Bloomberg). http://m1e.net/c?101077382-nV0COe8aXmY96%404212475-OlXdmNjkk7mUE The new estimates project a recession twice as deep as the commission had predicted just three months ago, and also say the region's budget deficit will balloon to more than double EU targets. The Wall Street Journal says the contraction represents Europe's worst recession since World War II. http://m1e.net/c?101077382-GAJDb9WjJU65g%404212476-ggBrXHaDclJ9E

The BBC says the continuing financial crisis, faltering trade, and an ongoing housing slump have all combined to weigh down Europe's economic prospects. http://m1e.net/c?101077382-JSneQHEMjyI9o%404212477-bK7rXQgbprAmw

Nevertheless, the Financial Times reports the assessment was "cautiously upbeat" in the sense that it predicts economic recovery by 2010. http://m1e.net/c?101077382-F7IU/UsTa.EBI%404212478-.Sr6U/SgYJ39o

Background and Analysis:

- The European Commission has a webpage outlining Europe's response to the financial crisis. http://m1e.net/c?101077382-VxFaeDElEexSQ%404212479-EwlknqrWIMjgI

- In a recent podcast with CFR, Robert Cottrell, formerly of the Economist and Financial Times, explains how financial strains in Eastern Europe are testing the fabric of the European Union. http://m1e.net/c?101077382-nxxiSbKP0gHjI%404212480-dpRfzaAlDj88A

MIDDLE EAST: Iraq Corruption Charges

Al-Jazeera reports Iraq's government has issued arrest warrants for several trade officials charged with corruption, including the head of Iraq's grain board. http://m1e.net/c?101077382-tkAh8Nkf8oHgg%404212481-YeFQKAs7.YwGs

Two car bombings rattled Baghdad today, killing two people (Aswat al-Iraq). http://m1e.net/c?101077382-aAbwq6Pif1qro%404212482-fFgz68o7iQZFg

GAZA: UN officials are meeting today ahead of a mission to Israel and the Gaza Strip aimed at investigating possible war crimes during Israel's incursions into Gaza in December and January (BBC). http://m1e.net/c?101077382-znn5h/VX3mahI%404212483-r8Nazb9VQPq/6

PACIFIC RIM: Crisis Fund

China, Japan, and South Korea finalized details of an emergency $120 billion fund to help boost liquidity in thirteen Asian countries (China Daily). http://m1e.net/c?101077382-2JLkJPiifrwUA%404212484-uk14h2OSPLq.%2e

N.KOREA: Pyongyang repeated its threat that South Korean participation in a U.S.-led security campaign in the region will be viewed as a declaration of war (Yonhap). http://m1e.net/c?101077382-KqDoKuDQpldzQ%404212485-6ShrNTEjutWKM

SOUTH & CENTRAL ASIA: Nepal PM Quits

Nepal's Maoist prime minister resigned today after failing to get the country's president to support his efforts to remove the Nepalese army chief (BBC). http://m1e.net/c?101077382-pDtlXVpgr1rKI%404212486-JB4V3EBW2nJEY

PAKISTAN: The New York Times reports this morning that Washington is increasingly concerned about the security of Pakistan's nuclear weapons arsenal, including the potential of militants to steal a weapon or otherwise infiltrate nuclear laboratories or fuel-production facilities. http://m1e.net/c?101077382-.wT0zEIZed5G2%404212487-qRxyhz.F3O9Wk

- This Backgrounder explains some of the controls that Pakistan has in place on its nuclear technologies. http://m1e.net/c?101077382-/iYzGb/oi6uNA%404212488-0UpcU7rV9iaLI

The spokesman for Sufi Mohammad, the radical and increasingly influential Muslim cleric in Pakistan, said the Taliban would not lay down their arms in the Malakand region unless government military operations there are halted (Dawn). http://m1e.net/c?101077382-fcknXg1f0mTeM%404212489-.5RjgZob6dfl6

TURKMENISTAN: RFE/RL reports on whether recent moves by Turkmenistan's president, ostensibly aimed at opening up media in the country, will actually accomplish that end. http://m1e.net/c?101077382-kjfnRFF.SlWOI%404212490-0cbryLngncrB2

AFRICA: Somali Politics

A major opposition figure to Somalia's government, Sheikh Hassan Dahir Aweys, declined to hold talks with the country's more moderate Islamist president, Sheikh Sharif Sheikh Ahmed, and urged his followers to continue their attempts to topple Ahmed (BBC). http://m1e.net/c?101077382-BTOWbqgyhRU2I%404212491-6b9DrzYFqF0bk

S.AFRICA-ZIMBABWE: The Mail & Guardian reports South Africa's President Jacob Zuma will likely take a tougher stance toward Zimbabwe than his predecessor, Thabo Mbeki. http://m1e.net/c?101077382-s7tBLbxS45mtw%404212492-O7O4iNnJvvubE

AMERICAS: Panama Elections

A conservative supermarket magnate, Ricardo Martinelli, won Panama's presidential elections this weekend (AP). http://m1e.net/c?101077382-R7QmHnl8TQDP2%404212493-fSW9S/x3BFA8o

SWINE FLU: The BBC reports swine flu has been confirmed in at least thirty U.S. states. http://m1e.net/c?101077382-ybOHpPDqHn/Gw%404212494-buob4e0/tGsX2

EUROPE: NATO-Russia Tensions

The Moscow Times reports tensions have flared between NATO and Moscow after NATO expelled two Russian diplomats from Brussels on spy charges. The article says the Kremlin is expected to respond this week. http://m1e.net/c?101077382-d3RhUBXPGVPA.%404212495-rUgKta37dozFM

GERMANY: Der Spiegel reports the Italian automaker Fiat envisions spearheading a merger between the U.S. automaker Chrysler and the German firm Opel. Such a merger, the article says, would create a "new global supergroup." http://m1e.net/c?101077382-W0L5ld1nK0kec%404212496-sa.5C.rYHTsy2

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