[RED DEMOCRATICA] CFR.org Daily Brief, June 16, 2010

 

June 16, 2010 View this newsletter as a web page on CFR's website. EXECUTIVE SUMMARY - Obama Addresses Nation on Oil Spill - EU to Authorize New Iran Sanctions - Kyrgyzstan Violence Subsides - Calderon Asks Mexicans to Fight Crime Top of the Agenda: Obama Addresses Nation on Oil Spill U.S. President Barack Obama addressed the country from the Oval Office on Tuesday to talk about the Gulf of Mexico oil spill (NYT), vowing to "make BP pay" and urging the country to end its dependence on fossil fuels. He used the still unresolved crisis to press for a shift in energy policy. Republicans quickly accused Obama of exploiting the crisis to pass an already unpopular bill. Obama also appointed a long-term recovery coordinator and demanded that BP set up a multibillion-dollar escrow account to compensate oil spill victims. Michael Bromwich, who Obama appointed as new director of the Minerals Management Service, has no experience with oil and gas issues but knows how to clean up (WashPost) problematic organizations. Analysis: In the Wall Street Journal, Holman Jenkins, Jr. says the White House is holding BP's stock price hostage. "It doesn't benefit the victims, who will continue to line up for years to come, if BP can't reinvest to sustain and grow its business." In the Financial Times, Clive Crook says Obama should have done more to explain the chain of command in clean-up efforts, rather than pivoting to clean-energy policy. In Newsweek, Jonathan Alter says Obama's shots at lax regulators helped "place the larger blame for the disaster where it belongs." Background: The worst oil spill in U.S. history, still growing in the Gulf of Mexico, has intensified debate about alternative fuel options. Here, four experts discuss how to reduce U.S. oil consumption. MIDDLE EAST: EU to Authorize New Iran Sanctions The EU plans to authorize new sanctions (Guardian) on Iran that go further than the recent UN Security Council resolution. Israel: Israel's security cabinet is considering an international proposal to ease its Gaza blockade (AFP), after weeks of global pressure to end the policy. Palestinians are pleased at the uproar against Israel after its raid on a Turkish-led aid flotilla, but what they--and Israelis--want is more active U.S. engagement in the peace process, says Palestinian pollster Khalil Shikaki. PACIFIC RIM: Chinese Strikes to Cut Honda Profits Profits at Japan's Honda Motor Company may drop (Bloomberg) by as much as $109 million, after the company's worst strikes in eighteen years of making cars in China. North Korea: President Obama renewed unilateral U.S. sanctions on North Korea (AFP) for one more year, citing the country's nuclear threat. The Obama administration should mount a more vigorous effort to address North Korea's nuclear weapons program, says Charles L. (Jack) Pritchard, co-chairman of a new CFR Independent Task Force report. SOUTH AND CENTRAL ASIA: Kyrgyzstan Violence Subsides Kyrgyzstan's defense minister said the government has largely restored order (WashPost) in the country after four days of ethnic clashes and is dropping its appeal for an international peacekeeping force. Afghanistan: Taliban militants assassinated (WSJ) the governor of a crucial district bordering Kandahar, setting back U.S. plans to stabilize the city. AFRICA: Somali Insurgents Detain Soccer Fans Somali insurgent group Hizbul Islam has been detaining Somali fans for watching the World Cup (NYT) south of Mogadishu, according to residents. Sudan: Two Sudanese rebel leaders suspected of war crimes in Darfur surrendered to the International Criminal Court (Reuters) to face charges over the killing of twelve African Union peacekeepers in 2007. AMERICAS: Calderon Asks Mexicans to Fight Drug Crime Mexican President Felipe Calderon appealed to Mexicans in a televised speech to support the fight against organized crime (AP), hours after Mexican troops killed fifteen suspected gang members in a surge of drug-related violence. EUROPE: EU Criticizes Greek Debt Downgrade The European Union's top economic commissioner Olli Rehn criticized Moody's rating agency for downgrading Greece's debt rating (DeutscheWelle) to "junk." He said the move strengthens calls for the EU to regulate rating agencies and investigate their lack of transparency. Proposals to rein in the three major credit rating agencies--implicated in the U.S. housing market collapse--could dampen competition. But absent new controls, investors may continue to rely on the same ratings services. France: France's retirement age will be raised (BBC) from sixty to sixty-two over the next eight years as part of its pension reforms to balance the budget deficit.

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