News from the outside world

More resignations in the Eurozone

The socialist Prime Minister of Greece, George Papandreou, finally made a deal with opposition conservatives for a unity government and acceptance of the European bailout deal, in exchange for him standing down. His previous decision to call a referendum on the deal, which caused rapid decline in markets and anger from other European leaders and opposition parties in Greece, was scrapped. So far, the parliament has failed to agree on a new prime minister and general elections are likely to be held in February. Reaction from papers throughout the European Union and Greece was generally positive, though cautious, but popular protest action shows no sign of waning in Greek cities.

Meanwhile, in Italy, Prime Minister Silvio Berlusconi promised to resign in the near future. He finally bowed to pressure from many of his former allies in the Italian media and by the head of his main coalition partner, Umberto Bossi. Many are still, however, sceptical of his sincerity. The markets, in particular, have not shown much faith, with Italian bond yields remaining at a damaging high of 7.5%. Like Greece, the Italian government is coming under pressure to form a unity coalition and accept a reform package from the European Union. Mr Berlusconi has so far refused a major bailout plan despite Italian debt standing at 120% GDP. To make matters worse, with the majority of this debt being held by private institutions within Italy itself, the 50% debt ‘haircut’ Greece received from its creditors may not be helpful in Italy.

More land wars in Asia

A report to the UN by the International Atomic Energy Agency found that Iran is likely to not only be developing computer models, but also testing key components for a nuclear arsenal including warheads. The Supreme Leader, Ayatollah Khamenei, issued a fatwa against such weapons in 2005 and President Ahmadinejad has said his country does not need the weapons. Despite this, rumours are circulating of a full scale war. Israel this week tested ballistic missiles with enough range to reach Iran, though Iran also possesses such weapons. The Daily Mail claimed that a plan drawn up by David Cameron and Barack Obama, the leaders of Britain and the United States, involved an invasion on two fronts – from Iraq in the West and Afghanistan in the East. The President of France, Nicholas Sarkozy, denied such plans existed, though both he and China condemned Iran’s “obsession” with nuclear weapons. China, however, continues to sell non-atomic weapons to Iran, and Western diplomats have told The Telegraph that they expect China and Russia to veto any new sanctions proposed at the UN. Britain, the US, France, China and Russia make up the veto-holding permanent members of the UN’s Security Council and all possess nuclear weapons. Israel may also have nuclear weapons , though refuses to admit it.

Despite agreeing to a diplomatic ceasefire deal, the President of Syria, Bassar Al-Assad, has continued the military campaign against militants, with particularly brutal attacks on the city of Homs, though he continues to deny this. The Arab League, who negotiated the deal, condemned his actions. The protests, which started in the spring, initially involved unarmed protesters continuing to face military gunfire. With Western powers showing no zeal for a Libya-style intervention and Al-Assad refusing to negotiate, the rebellion is becoming increasingly militant. It is thought that Syria could be heading for a civil war. Al-Assad has continued to claim that the rebels are “terrorists” supplied with weapons by secretive foreign powers trying to destroy Syria.

More Presidential Gaffes

The Presidents of the United States and France were overheard insulting the Prime Minister of Israel. Discussing the French decision to support Palestine’s membership to UNESCO, Sarkozy said “I cannot stand [Netanyahu]… he’s a liar” to which Obama replied “You’re fed up with him? I have to deal with him every day.” Benjamin Netanyahu has been rumoured to be a particularly unpopular Israeli leader among Western leaders, refusing to negotiate on giving up East Jerusalem or stopping the building of illegal settlements.

The Republican frontrunner for the president of the United States, Herman Cain, claimed China does not have any nuclear weapons in an interview on PBS. Despite being a strong candidate on domestic issues, there are concerns that his understanding of foreign policy is rather limited.