[RED DEMOCRATICA] CFR.org Daily Brief, March 26, 2010

 

March 26, 2010 View this newsletter as a web page on CFR's website. EXECUTIVE SUMMARY - Eurozone Agrees on Greece Deal - Israel to Continue Settlement Building - UN Denies Somalia Food Aid Corruption - Report: Mexican Drug Gangs Grow Top of the Agenda: Eurozone Reaches Deal on Greece Eurozone leaders agreed to a rescue package (FT) for Greece at an EU summit, which will include help from the International Monetary Fund and bilateral loans from euro-member countries. European Council President Herman Van Rompuy said the package intended to reassure Greek bond holders that the eurozone will never fail. France and Germany reached agreement on coordinating bilateral loans from eurozone countries in addition to IMF assistance. The proportion of funding would be one-third IMF and two-thirds eurozone. Any decision to lend money to Greece would have to be unanimous, giving Germany a veto. Germany's tough conditions for aid to Greece, which other eurozone countries were forced to accept, indicate Germany's lack of interest (WSJ) in European unity, except when it's on their terms Analysis: On Forbes.com, Nouriel Roubini, Christian Menegatti, and Arpitha Bykere say likening EU member debt--in Greece, Portugal, Spain, Italy, and Ireland--to U.S. debt is misguided. U.S. states do not pose the same fiscal and systemic risks to the United States that Greece does to the EU. In the Financial Times, Wilhelm Hankel, Wilhelm Nölling, Karl Albrecht Schachtschneider, and Joachim Starbatty say Greece will have to leave the euro, recreate the drachma, and reenter the still-existing exchange-rate mechanism of the European Monetary System. CFR's Sebastian Mallaby says the markets' reactions to the sovereign debt crisis in Greece and other European countries suggest global governments "have used up all their ammunition to boost global growth," and could be punished by the markets if they sustain stimulus programs. MIDDLE EAST: Israel to Continue Settlement Building In a written statement, Israeli Prime Minister Benjamin Netanyahu said (AP) his country will continue building in East Jerusalem despite U.S. pressure to end construction. Iran: NATO head Anders Fogh Rasmussen said NATO countries should agree this year (Reuters) on a missile defense system to thwart threats from hostile countries, including Iran, and should cooperate with Russia on this. PACIFIC RIM: Chinese Businesses Rethink Google Ties A slew of Chinese businesses are reconsidering their relationships to Google (FT) in the wake of the company's move to discontinue self-censorship. Japan: Japan will finalize its proposal (WashPost) to move a contentious American military base off Okinawa by the end of March, the prime minister said. Read CFR blog Asia Unbound, featuring timely analysis from CFRs Asia experts. SOUTH AND CENTRAL ASIA: Militants Killed in Pakistan Clash Five Pakistani soldiers and at least twenty-one suspected militants died in clashes (Dawn) near the Afghan border, according to Pakistan's military. CFR's Daniel Markey says the U.S.-Pakistan strategic dialogue was notable for the Pakistani delegation's move to shift discussions from U.S. counterterrorism aims to far-reaching Pakistani goals. The Obama administration was wise to listen while making no rash promises, he says. Afghanistan: The Pentagon is revamping (WSJ) the way it deploys troops to Afghanistan. A new system will return units to the same parts of the country so they can develop better regional expertise and relationships with local Afghan leaders. AFRICA: UN Denies Somalia Food Aid Corruption The UN World Food Program denied a claim (BBC) by a UN monitoring group that up to half of food aid to Somalia is diverted to militants and corrupt contractors. Sudan: U.S. Special Envoy to Sudan Scott Gration said Sudan's elections should occur on time (Reuters) despite problems, putting democratic structures in place to deal with the looming issue of the status of southern Sudan. This Center for Preventive Action Contingency Planning Memo presents the likely triggers of renewed civil war and discusses the U.S. policy options for preventing it from happening and mitigating its consequences. AMERICAS: Report Says Mexican Drug Gangs Grow A new U.S. Justice Department report finds Mexican drug gangs have expanded their activities in the United States (BBC), with heroin production doubling in 2008. A new shift in U.S.-Mexico security cooperation that focuses on border surveillance and the underpinnings of drug violence is a good long-term approach, but will require patience on both sides, says CFR Latin America expert Shannon O'Neil. Venezuela: Venezuelan officials arrested Guillermo Zuloaga (NYT), the owner of the independent television network Globovisión and an influential critic of Venezuelan President Hugo Chávez, heightening concerns over the country's growing political repressions. He was released several hours later but told not to leave the country. EUROPE: De Villepin to Form New French Party Former French Prime Minister Dominique de Villepin said he will launch a new center-right political party (WSJ), a threat to French conservatives and President Nicolas Sarkozy's chances of reelection.

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