World Politics

Spain struggles to refinance €36bn regional debt

24 May 2012 |

Top Spanish officials are at odds over how to help the country’s highly indebted regions refinance €36 billion of debt this year, government sources told Reuters on Wednesday.

EU to prepare for Greek exit: Reuters

24 May 2012 |

Each euro zone country will have to prepare a contingency plan for the eventuality of Greece leaving the single currency, euro zone sources said on Wednesday.

Why Australia has to go to war

24 May 2012 | George Friedman

PRINT: 24 May 2012 | PAGE 3 | Why Australia has to go to war

It all comes down to trade and access to sea lanes.

Afghan mission unaccomplished

24 May 2012 | The Australian Financial Review

PRINT: 24 May 2012 | PAGE 1 | Afghan mission

Editorial | The war in Afghanistan, in the words of US President Barack Obama, is being wound down rather than won.

What happens when the West leaves?

24 May 2012 | John Kerin.

PRINT: 24 May 2012 | PAGE 1 | Spectre of disaster in Afghanistan as the West heads for exit

There are many obstacles in the path of peace after the allies pack up and leave Afghanistan, but Australia’s Defence Force chief does not share the pessimism.

Reluctant Greece will be hard to evict

24 May 2012 | David Bassanese

PRINT: 24 May 2012 | PAGE 3 | Reluctant Greece will be hard to evict

When push comes to shove, I still doubt that a “Grexit” – or Greece leaving the Euro zone – is the most likely scenario in the next few months..

‘Vital’ envoy quits Afghan post

24 May 2012 | Alissa Rubin

PRINT: 24 May 2012 | PAGE 3 | ‘Vital’ envoy quits Afghan post

The top US diplomat in Afghanistan, Ryan Crocker, will leave his post shortly for health reasons after serving here less than a year, a State Department official says.

N Korea nuclear tensions mount

24 May 2012 | Sangwon Yoon

PRINT: 24 May 2012 | PAGE 3 | N Korea nuclear tensions mount

North Korea has denied planning a nuclear weapons test, while a report indicated it was upgrading a rocket launch site – conflicting signs that underscore the challenge of gauging the intentions of new leader Kim Jong Un.

East Asia ‘vulnerable’ to euro crisis

24 May 2012 | Karl Lester Yap

PRINT: 24 May 2012 | PAGE 3 | East Asia ‘vulnerable’ to euro crisis

The World Bank says policymakers in Asia’s emerging economies must guard against inflation risks and be prepared to reverse policy easing.

Cairo held captive by a ring of violence

24 May 2012 | David Kirkpatrick

PRINT: 24 May 2012 | PAGE 2 | City held captive by a ring of violence

Crime is growing unchecked as the once-brutal police force takes it easy.

Hezbollah appeals for calm after kidnappings

24 May 2012 |

PRINT: 24 May 2012 | PAGE 21 | Hezbollah appeals for calm after kidnappings

The leader of Lebanon’s Shiite militant group Hezbollah appealed for calm after people blocked roads and burned tyres in Beirut to protest the kidnapping of 11 Lebanese Shiites in neighbouring Syria.

Foreign briefs

24 May 2012 |

PRINT: 24 May 2012 | PAGE 3 |

The effective government of Papua New Guinea says it will arrest the three judges who ordered ousted prime minister Michael Somare returned to power, unless they resign.

Greeks in fear of ‘drachmageddon’

24 May 2012 | Liz Alderman

PRINT: 24 May 2012 | PAGE 2 | Greeks in fear of ‘drachmageddon’

These days, talk of “drachmageddon” can be heard in conversations all over Athens. The nation is bracing to meet its fate, but how do you prepare for the Apocalypse?

Greek leftist leader goes on tour

24 May 2012 | Melissa Eddy

PRINT: 24 May 2012 | PAGE 2 | Young Greek tyro goes on tour

With less than a month before new elections in Greece, it might be expected that Alexis Tsipras would be campaigning in his own country. Instead, Tuesday found Greece’s rising young political star in Berlin, the second stop of what appeared to be a decision to effectively launch his pre-election campaign abroad.

Anti-austerity proponents dog Merkel

24 May 2012 | Andrew Trotman London

PRINT: 24 May 2012 | PAGE 1 | Europe markets dive ahead of summit

European Union leaders have begun meeting in Brussels with the shadow of a Greek exit from the euro and a Spanish banking crisis looming over them, as European markets fell heavily on investors’ doubts the summit would lead to a solution of the eurozone’s problems.

IMF tells Britain: cut taxes and increase spending

24 May 2012 | Phillip Inman

PRINT: 24 May 2012 | PAGE 1 | IMF tells Britain: cut taxes and increase spending

The IMF has urged the Britain to start preparing emergency tax cuts as it called for more interest rate reductions to lift the UK from its double-dip recession.

Indonesia a rising power, says Bakrie

24 May 2012 | Natalie Gerritsen

PRINT: 24 May 2012 | PAGE 5 | Indonesia a rising power, says Bakrie

Indonesia’s importance in the Asia-Pacific region will increase as its population and economy grows, according to wealthy Indonesian businessman and possible presidential candidate Aburizal Bakrie.

Leaders shun Rio+20

24 May 2012 |

PRINT: 24 May 2012 | PAGE 1 | Leaders shun Rio+20

Rio+20, the UN Conference on Sustainable Development, for which Julia Gillard is skipping the traditional Prime Minister’s ­Olympic dinner, is shaping as an embarrassing flop as the Kyoto agreement on climate change nears expiry.

Call to end China trade deal talks

24 May 2012 | Greg Earl

PRINT: 24 May 2012 | PAGE 1 | Call to ditch China trade deal talks

One of Australia’s former top trade negotiators has called for an end to the long-running free-trade agreement talks with China amid new tensions between Canberra and Beijing.

China slowdown threatens Aus: World Bank

23 May 2012 |

Australia's dependence on resource exports could come back to bite it as a slowdown in Chinese growth causes commodity prices to fall, the World Bank warns.

Fundamentals and price point to ‘cast iron future’

23 May 2012 | Brendon Lau

PRINT: 24 May 2012 | PAGE 4 | Fundamentals, price point to ‘cast iron future’

Iron ore stocks have taken the brunt of the latest sell-off as the commodity’s price tumbled following the European debt crisis and Chinese slowdown. But experts believe there is too much pessimism priced into shares.

Time for some Latin flair, says Carr

23 May 2012 | Katie Walsh

PRINT: 23 May 2012 | PAGE 5 | Time for Latin flair

Australia must build stronger ties with the burgeoning resource-heavy economies of Latin America, but not at the expense of relationships in the Asia-Pacific, Foreign Minister Bob Carr says.

World Bank cuts China forecast

23 May 2012 |

The World Bank cut its economic growth forecast for China this year to 8.2 per cent on Wednesday and urged the country to rely on easier fiscal policy that boosts consumption rather than state investment.

China’s sovereign fund gives Europe a blasting

23 May 2012 | Peter Wells

In no uncertain terms, China has told Europe to get its act together. Jin Liqun of China Investment Corporation gave Europe a bit of a blasting over its dealing with Greece.

Greek euro zone exit ‘catastrophic’: ex-PM

23 May 2012 | Ben Woodhead

Former Greek prime minister Lucas Papademos has reportedly described “catastrophic” consequences of a Greek exit from the euro and suggested some countries are already considering contingency plans.

Fitch downgrades Japan’s sovereign rating

23 May 2012 |

Fitch has lowered its assessment of Japan’s sovereign credit to A-plus, an investment grade just above Spain and Italy, and criticised Tokyo for not doing more to pare its growing debt.

‘Fiscal cliff’ could trigger US recession

23 May 2012 |

A stalemate over how to tackle a series of fiscal deadlines at year’s end would likely push the United States economy into recession in the first half of next year, the Congressional Budget Office warned.

UN nuclear monitor sees progress in Tehran

23 May 2012 |

On the eve of international talks in Baghdad over Iran’s disputed nuclear program, the leader of the UN nuclear monitoring arm announced what appeared to be a significant concession from Tehran.

Hollande on collision course with Merkel over bonds

23 May 2012 |

Germany has dismissed a French-led call for EU governments to issue common bonds, a day before a summit which investors are looking to for new measures to counter the bloc’s debt crisis.

World briefs

23 May 2012 |

PRINT: 23 May 2012 | PAGE 3 |

Japan’s foreign investments and assets grew to the second-highest level on record as companies used the high yen to make acquisitions abroad.

Euro zone crisis can go global: OECD

23 May 2012 | David Jolly

PRINT: 23 May 2012 | PAGE 46 | Euro zone crisis can go global: OECD

Global stocks rose on Tuesday even as the Organisation for Economic Co-operation and Development cut its growth forecast for the euro zone.

Greek Right and liberals unite to fight Left

23 May 2012 | Niki Kitsantonis

PRINT: 23 May 2012 | PAGE 46 | Right finds ally on left

Less than a month before new general elections that could determine Greece’s future in the euro zone, the conservative New Democracy Party secured co-operation with a small liberal grouping on Monday in an effort to beat to first place an ascendant leftist political force that has rejected the country’s debt deal with foreigners.

US still furious with Pakistan

23 May 2012 | Ewen MacAskill

PRINT: 23 May 2012 | PAGE 45 | US still furious with Pakistan

The rift between the US and Pakistan deepened as the NATO summit in Chicago broke up without a deal on Afghanistan supply routes.

NATO calls end to Afghan war

23 May 2012 | Helene Cooper

PRINT: 23 May 2012 | PAGE 45 | NATO calls end to Afghan war

President Barack Obama and leaders of the US’s NATO allies have agreed to end their lead role in the decade-long war in Afghanistan by the middle of next year.

Iran nuclear inspection deal close, UN monitor says

23 May 2012 | Alan Cowell, Thomas Erdbrink and Jodi Rudoren

PRINT: 23 May 2012 | PAGE 45 | Iran nuclear inspection deal close, UN monitor says

In an apparent breakthrough, the leader of the United Nations nuclear monitoring arm said that despite differences, he expected to sign a deal with Iran “quite soon” on the arrangements for an investigation into potential military applications of its nuclear program.

News briefs

23 May 2012 |

PRINT: 23 May 2012 | PAGE 3 |

Prime Minister Julia Gillard has used her final address to a summit in Chicago on Afghanistan to urge other countries to follow Australia’s example and provide more cash to sustain Afghan security forces.

PNG police send Somare packing

23 May 2012 | Eoin Blackwell

PRINT: 23 May 2012 | PAGE 3 | PNG police send Somare packing

Papua New Guinea’s court-appointed Prime Minister, Michael Somare, has failed in his bid to have the nation’s Governor-General swear in his cabinet, after police refused to let him enter Government House.

Putin rearranges power structure

23 May 2012 | Ellen Barry

PRINT: 23 May 2012 | PAGE 2 | Putin reshapes power structure

President Vladimir Putin has replaced all but a handful of Russia’s cabinet of ministers in a long-awaited step that nonetheless held out little chance the new government would push through major political or economic change.

UK nuclear reactors get longer life

23 May 2012 | Juliette Jowit

PRINT: 23 May 2012 | PAGE 1 | UK nuclear reactors get longer life

Britain’s ageing nuclear reactors, which were due to close in the next decade, are set to be kept open under a plan approved by the industry’s regulator.

Greece will have to abandon the euro

23 May 2012 | Boris Johnson

PRINT: 23 May 2012 | PAGE 1 | Better to bite drachma bullet

Boris Johnson | It is unbelievable that we should be urging fiscal union. It is like seeing a driver heading for a brick wall, and then telling them to hit the accelerator rather than the brake.

Rate cut tips get ‘too extreme’

23 May 2012 | Joanna Heath

PRINT: 23 May 2012 | PAGE 4 | Rate cut tips get ‘too extreme’

Market predictions of further monetary easing measures from the Reserve Bank of Australia have become too extreme, strategists say, leaving some room for recovery for the Australian dollar.

More Greek muddle

23 May 2012 | Jennifer Hewett

PRINT: 23 May 2012 | PAGE 2 | More Greek muddle

Hewett | Berlin and Paris are in furious agreement that they’ll “do everything to keep Greece in the euro club’’, if not on how to achieve this.

Bakrie visit lifts political profile

23 May 2012 | Greg Earl

PRINT: 23 May 2012 | PAGE 5 | Bakrie visit lifts

Indonesian businessman Aburizal Bakrie has met senior government and opposition figures in Canberra as an indication he is stepping up presidential bid in two years.

French join push for euro bonds

23 May 2012 | Nicholas Kulish

PRINT: 23 May 2012 | PAGE 2 | French join the drive for euro bonds

When European leaders meet on Wednesday to discuss euro zone woes, French President François Hollande will press the issue of euro bonds.

Services win from trade deal

23 May 2012 | Greg Earl

PRINT: 23 May 2012 | PAGE 4 | Services win from trade deal

Services businesses have won potentially valuable new access to Malaysia under a trade agreement sealed on Tuesday that locks Australia further into South-East Asia.

Video | Potter in America

22 May 2012 |

The world leaders who met at Camp David promised to focus on short-term growth over budget repair, but the discussions highlighted how much their opinions differ.

White House still a magnet for lobbyists: report

22 May 2012 | Will Willitts

Despite President Obama’s pledge to keep lobbyists away from his administration, a check of White House logs shows a steady stream of corporate and Democratic lobbyists through the front gate.

Youth joblessness near GFC peak: ILO

22 May 2012 |

Youth joblessness is almost back at its peak following the outbreak of the global economic crisis and is unlikely to ease until at least 2016, the International Labour Organization (ILO) warned.

Putin’s new cabinet signals no major changes

22 May 2012 |

President Vladimir Putin replaced all but a handful of Russia’s Cabinet of ministers, in a long-awaited step that nonetheless held out little chance of major political or economic change.

US nuclear regulatory chairman hands in resignation

22 May 2012 |

Gregory Jaczko, chairman of the US Nuclear Regulatory Commission, said on Monday that he would resign, following a year of intense criticism over his abrasive management style.

US Catholics sue over Obama contraception plan

22 May 2012 |

Forty-three Roman Catholic dioceses and other US institutions filed lawsuits challenging the Obama administration’s rule that their employees receive coverage for contraception in health insurance policies.

Sovereign wealth fund not a priority

22 May 2012 | Graham Bradley

PRINT: 22 May 2012 | PAGE 2 | Sovereign wealth fund not a priority

It does not make sense to lock away funds when the nation is underinvested in infrastructure.

Notebook: wealthy French flee to London

22 May 2012 | Der Spiegel

PRINT: 22 May 2012 | PAGE 66 | NOTEBOOK Wealthy French flee to London

It began in 2010 when wealthy Greeks started coming to London to buy up expensive townhouses in upmarket neighbourhoods.

What Greece needs

22 May 2012 | J J Pincus

PRINT: 22 May 2012 | PAGE 61 | What Greece needs

Alan Mitchell’s Economic Outlook (“German generosity required”, May 21) unfavourably compares Germany’s insistence on Greek austerity, with America’s unconditional Marshall Aid after World War II: “Where American politicians were prepared to use their taxpayers’ money to rebuild Germany, regardless of fault, Germany was not prepared to be so forgiving of the Greeks for their errors.”

Rebound a tribute to wishful thinking

22 May 2012 | Glenn Mumford

PRINT: 22 May 2012 | PAGE 5 | Bounce a tribute to wishful thinking

It’s always tempting to play for the bounce. So after three weeks of selling, investors again seem willing to buy risk.

Wen gives higher priority to growth

22 May 2012 | Victoria Ruan

PRINT: 22 May 2012 | PAGE 2 | Wen gives higher priority to growth

Chinese Premier Wen Jiabao said the government would focus more on bolstering economic growth, indicating policies may be loosened further as inflation moderates.

How to deepen ties with Indonesia

22 May 2012 | The Australian Financial Review

PRINT: 22 May 2012 | PAGE 3 | How to deepen ties with Indonesia

Editorial | Relations between Australia and Indonesia will always be challenging given that no two neighbours are more dissimilar in so many ways.

Strategists warn against $A optimism

22 May 2012 | Joanna Heath

PRINT: 22 May 2012 | PAGE 29 | Strategists warn on $A optimism

The Australian dollar managed to snap a six-day losing streak on Monday following the weekend’s Group of Eight summit, but strategists say the bump may be short-lived.

Pakistan restores Twitter after outcry

22 May 2012 | Salman Masood

PRINT: 22 May 2012 | PAGE 1 | Pakistan restores Twitter after outcry

The Pakistani government blocked access to the social networking service Twitter for much of Sunday, after publicly holding Twitter responsible for promoting what it described as a blasphemous cartoon contest taking place on Facebook.

Former Chinese police chief faces treason charges

22 May 2012 |

PRINT: 22 May 2012 | PAGE 19 | Former police chief faces treason charges

The Chinese provincial police chief at the centre of the biggest political scandal to engulf the communist leadership in decades will be tried for treason.

Vietnam factories close as credit squeeze bites

22 May 2012 | Nguyen Dieu Tu Uyen

PRINT: 22 May 2012 | PAGE 2 | Vietnam factories close as credit squeeze bites

Vietnamese businesses are dying by the thousands as the government tries to find a sustainable path to growth after years of easy credit funded makers of cheap goods and triggered Asia’s highest inflation.

Obama seeks commitments on Afghanistan

22 May 2012 | Margaret Talev

PRINT: 22 May 2012 | PAGE 2 | Obama seeks commitments

President Barack Obama closed the NATO summit short of key commitments the US is seeking on Afghanistan, from Pakistan’s reopening of supply lines to guarantees by allies to keep combat troops there through 2014 and fund Afghan security forces for a decade after.

Supply lines deal with Pakistan falls through

22 May 2012 | Helene Cooper

PRINT: 22 May 2012 | PAGE 2 | Supply lines deal with Pakistan falls through

President Obama was struggling to balance the United States’ relationship with two crucial but difficult allies on Sunday, after a deal to reopen supply lines through Pakistan to Afghanistan fell apart just as Mr. Obama began talks on ending the NATO alliance’s combat role in the Afghan war.

Serbs’ EU hopes dive as nationalist elected

22 May 2012 | Ian Traynor

PRINT: 22 May 2012 | PAGE 1 | Serbs’ EU hopes dive

Serbia’s hopes of fast-track integration into Europe suffered a severe setback when Boris Tadic was voted out of the presidency in a victory for a more nationalist rival.

Merkel walks the tightrope to Brussels

22 May 2012 | Andrew McCathie

PRINT: 22 May 2012 | PAGE 2 | Merkel walks the tightrope to Brussels

German Chancellor Angela Merkel heads to Brussels for a meeting with European leaders with her political authority facing one of its biggest tests since she emerged as leader of the region’s biggest economy.

Cameron tells Greeks it’s time to choose

22 May 2012 | Patrick Wintour

PRINT: 22 May 2012 | PAGE 1 | Cameron to Greeks: time to choose

A second Greek election result next month backing parties opposed to the European Union’s bailout package would be a decisive vote to leave the euro for which contingency plans have to be made now, David Cameron warned in a dramatic raising of the stakes.

Conference offers peek into future

22 May 2012 | Jason Murphy

PRINT: 22 May 2012 | PAGE 3 | Conference offers peek into future

Technologies we will have sitting in our pockets and running on our tablets will be visible for the first time this week at the CEBIT conference in Sydney.

Yahoo!7 chief says taxman must ‘follow the cash’

22 May 2012 | Ben Holgate

PRINT: 22 May 2012 | PAGE 2 | Yahoo!7 chief says taxman must ‘follow the cash’

Imminent changes to Australia’s transfer pricing rules have the potential to solve the problem of global internet companies paying low tax if tax authorities can capture all revenues earned here, Yahoo!7 says.

Four suspects in Greek whodunnit

22 May 2012 | Mohamed El-Erian

PRINT: 22 May 2012 | PAGE 2 | Suspects in Greek whodunnit

Greece is following the road taken by several other crisis-ridden emerging economies over the past 30 years. There are stunning similarities between this once-proud euro zone member and Argentina prior to its default in 2001.

China detains Bo’s inner circle

22 May 2012 | Edward Wong

PRINT: 22 May 2012 | PAGE 2 | China detains Bo’s inner circle

Early this year, as a crisis unfolded in the chambers of power in Chongquing, three men flew into the city within a day or two of one another. They were members of the inner court of Bo Xilai, the Communist Party aristocrat who ran the city, and they had come to repair a rupture between the strong-willed Mr Bo and his equally driven police chief.

New era as AFR launches iPad app

22 May 2012 | Ben Woodhead

PRINT: 22 May 2012 | PAGE 1 | Welcome to new era as AFR launches iPad app

The Australian Financial Review has taken the latest step in its transformation into the world’s only truly integrated newsroom with the launch of its iPad app.

Brightening skies for Sunrise gas

21 May 2012 | Angela Macdonald-Smith

PRINT: 22 May 2012 | PAGE 24 | Brightening skies for Sunrise gas

Hopes are rising that Woodside Petroleum is closer to breaking the stalemate over its Sunrise natural gas field in the Timor Sea, even as East Timor’s rhetoric against a floating liquefied natural gas project ramps up ahead of elections in July.

Video | Das Capital

21 May 2012 |

Satyajit Das discusses China and the global economy.

Key Democrat criticises Obama’s ad

21 May 2012 |

Newark Mayor Cory Booker, a prominent Democrat enlisted as a surrogate for President Barack Obama’s campaign, criticised the president’s ad campaign that has attacked Mitt Romney’s work at the private equity firm, Bain Capital.

Aust, Malaysia to sign free trade deal

21 May 2012 |

Trade Minister Craig Emerson will sign a free trade agreement with Malaysia in Kuala Lumpur on Tuesday.

Pro-bailout parties on course for Greek victory

21 May 2012 |

The parties which support Greece's bail-out package are set to win an overall majority in elections next month, according to two opinion polls published on Sunday.

Convicted Lockerbie bomber dies in Libya

21 May 2012 |

Abdel Basset Ali al-Megrahi, the only person convicted in the 1988 bombing of an American jetliner over Lockerbie, Scotland, has died in Libya. nearly three years after Scotland released him on humanitarian grounds.

PM boosts Afghan aid to $250m a year

21 May 2012 | Gemma Daley

PRINT: 22 May 2012 | PAGE 3 | PM boosts Afghan aid to $250m

Prime Minister Julia Gillard has boosted aid to Afghanistan to $250 million per year as part of a new long-term partnership with Afghan President Hamid Karzai.

Notebook | US election is capital v labour

21 May 2012 | Robert Samuelson

PRINT: 21 May 2012 | PAGE 54 | NOTEBOOK US election is a capital v labour skirmish

US capitalism is on trial. When Americans vote in November, they will unavoidably choose between two competing visions of capitalism.

Indonesia’s drift erodes its democracy

21 May 2012 | The Australian Financial Review

PRINT: 21 May 2012 | PAGE 1 | Indonesia’s drift erodes its democracy

Editorial | The stability and prosperity of Indonesia, the world’s biggest Muslim nation, is of immense economic, security, and geopolitical importance to Australia.

From Russia with love: stick with the euro

21 May 2012 | Geoff Winestock

PRINT: 21 May 2012 | PAGE 1 | From Russia with love: stick with the euro

Winestock | My strongest memory of the time when the ruble zone was breaking up is the Ukrainian black market traders arriving every morning.

Low rates lead to high risk

21 May 2012 | Ben Potter

PRINT: 21 May 2012 | PAGE 2 | Low rates lead to high risk

Potter | It’s a bit early for the lessons of the 2008 crisis to have been forgotten. But maybe the lessons of the 1990s tech boom have receded.

World briefs

21 May 2012 |

PRINT: 21 May 2012 | PAGE 16 |

Christian groups in the Philippines have called for a ban on Lady Gaga’s Manila concerts, alleging that her song Judas is an offensive mockery of Jesus Christ.

Ruak calls Timor to work

21 May 2012 |

PRINT: 21 May 2012 | PAGE 16 | Ruak calls Timor to work

Taur Matan Ruak called for “sweat and hard work” to lift East Timor out of poverty as he was sworn in as President yesterday.

Crisis averted in Chen case

21 May 2012 |

PRINT: 21 May 2012 | PAGE 3 | Crisis averted in Chen case

The blind legal advocate who made an improbable escape from virtual house arrest and sought refuge in the US embassy in Beijing, has arrived in the United States, ending a fraught diplomatic drama.

Butt out, Greece tells Merkel

21 May 2012 | Christine Pirovolakis

PRINT: 21 May 2012 | PAGE 14 | Butt out, Greece tells Merkel

Greece’s Parliament was formally dissolved and fresh elections called as politicians in Athens reacted angrily to an alleged suggestion by the German Chancellor that a referendum should be held asking whether Greeks want to stay in the euro zone.

Obama’s big sell on NATO’s relevance

21 May 2012 | Roxana Tiron

PRINT: 21 May 2012 | PAGE 14 | Obama’s big sell on NATO relevance

President Barack Obama will seek to persuade financially pressed European governments and their war-weary citizens to back Afghanistan’s security over the next decade.

UK ‘may never recover’ from euro crash

21 May 2012 | Rowena Mason

PRINT: 21 May 2012 | PAGE 14 | UK ‘may never recover’

Britain’s economy may suffer “permanent” damage and “never quite get back up” if the euro collapses in a chaotic way, according to the government’s chief economic forecaster.

What they said

21 May 2012 |

PRINT: 21 May 2012 | PAGE 1 | What they said

The global economic recovery shows signs of promise, but significant headwinds persist.

Powers push Merkel on growth

21 May 2012 | Helene Cooper

PRINT: 21 May 2012 | PAGE 1 | Powers push Merkel on strategy

Leaders of the world’s richest countries banded together to press Germany to back more pro-growth policies to halt the deepening debt crisis in Europe.

Germany isolated on austerity

21 May 2012 | Robert Guy

PRINT: 21 May 2012 | PAGE 1 | Germany isolated on austerity

German Chancellor Angela Merkel has become isolated over her support for European austerity following a push by the G8 industrialised nations to boost economic growth and to keep Greece in the euro zone.

Europe: heavy weather heads this way

21 May 2012 | Warwick McKibbin

PRINT: 21 May 2012 | PAGE 1 | Europe: heavy weather heads this way

Events in Europe this week point to a rapid end game for Greece in the euro. One crucial issue, especially for Australia, is the spillover we can expect from a crisis in Europe to the rest of the world.

Austerity – what a laugh!

21 May 2012 | Robert Guy

PRINT: 21 May 2012 | PAGE 1 | Austerity – what a laugh!

Guy | The irony would not have been lost on Angela Merkel as she listened to advice from some of the world’s most enthusiastic money printers.

German generosity required to save euro

21 May 2012 | Alan Mitchell

PRINT: 21 May 2012 | PAGE 3 | German generosity required

The Americans, the British, the French – just about everyone except the Germans – are right: what Europe needs now is more growth.

Who’s at the top table, who shares digs?

21 May 2012 | Philip Sherwell

PRINT: 21 May 2012 | PAGE 1 | Some at the top table, some share digs

Leaders of the world’s most powerful economies had dinner and a sleepover at Camp David during the G8 crisis talks. But there was an awkward moment for new French President Francois Hollande.

Gillard to sign pact with Afghanistan

21 May 2012 |

PRINT: 21 May 2012 | PAGE 2 | Gillard’s Afghan pact

The future of Australia’s aid to Afghanistan will be mapped out in an agreement Prime Minister Julia Gillard and her Afghan counterpart will sign on the sidelines of a major NATO summit in the United States.

China security chief maintains grip

21 May 2012 | Edward Wong

PRINT: 21 May 2012 | PAGE 2 | Security chief keeps grip

Chinese security chief Zhou Yongkang has completed a prominent tour of the volatile region of Xinjiang, a sign that he still has a firm hold on his post despite the fact he opposed the purging of disgraced politician Bo Xilai.

Chinese growth has wide fallout

21 May 2012 | Yukon Huang

PRINT: 21 May 2012 | PAGE 2 | Chinese growth has wide fallout

The consequences of China’s economic development for the West are closely watched, but the impact of China’s growth for its immediate neighbours is no less important.

Obama presses Europe for shift to growth focus

19 May 2012 |

US President Barack Obama pressed Europe on Friday to shift toward a more pro-growth policy and away from austerity to tackle a crisis that threatens to push Greece out of the euro zone.

Greece set to dissolve day-old parliament

19 May 2012 |

Greece’s day-old parliament held its last session Friday to allow for new elections next month that are being cast as a decision on whether to keep the country in the 17-nation eurozone.

Austerity the only way to prosper: Papademos

19 May 2012 |

A rejection of austerity measures and of the eurozone bail-out in next month’s fresh Athens election would be a “catastrophe” for the country, Greece’s former technocratic prime minister, Lucas Papademos, said.

If Greece goes under . . .

19 May 2012 | Tony Boyd

PRINT: 19 May 2012 | PAGE 1 | If Greece goes under . . .

Global financial markets during the week followed the normal pattern seen over the past two years by switching from being bullish to pricing in a worst-case scenario from the Greek sovereign debt crisis.

US loosens shackles on Burma

19 May 2012 | Steven Lee Myers

PRINT: 19 May 2012 | PAGE 1 | US loosens shackles on Burma

The Obama administration is to ease the ban on investments in Burma, rewarding the country’s political and economic opening over the past year.

World briefs

19 May 2012 |

PRINT: 19 May 2012 | PAGE 2 |

Home prices in China fell in a record 46 of 70 cities tracked by the government in April from a year earlier.

Leaving the euro zone

19 May 2012 |

PRINT: 19 May 2012 | PAGE 15 | Leaving theeuro zone

Greeks go to the polls again on June 17 after the vote on May 6 proved inclusive. The new election is seen as a referendum on the euro.

Meet the China lobby

19 May 2012 | Tony Walker

PRINT: 19 May 2012 | PAGE 2 | Meet the China lobby

Australia and China have arrived at a moment in their relationship that might be likened to a marriage in which two partners who’ve taken each other for granted realise life has become a whole lot more complicated.

Germany to feel the heat from the US and its allies

19 May 2012 | Larry Elliott

PRINT: 19 May 2012 | PAGE 15 | Heat on Germany

US President Barack Obama is to put pressure on Germany to ease the pain of austerity with policies to boost growth, as he uses two days of talks with the G8 leaders to warn Europe it needs to act swiftly.

Lack of leadership at time of crisis

19 May 2012 | Tony Walker

PRINT: 19 May 2012 | PAGE 62 | Leadership vacuum at a time of crisis

Walker | As a European implosion threatens to plunge the world into another global financial crisis, there is a conspicuous lack of leadership.

An orderly exit is Greece’s best option

19 May 2012 | Nouriel Roubini

PRINT: 19 May 2012 | PAGE 15 | Orderly exit best option for Greece

The Greek euro tragedy is reaching its final act. Postponing an exit from the euro until after the June election will not restore growth and competitiveness.

No way but out of the euro, Smith warns

19 May 2012 | George Liondis

PRINT: 19 May 2012 | PAGE 1 | No way but out, Smith warns

Australia and New Zealand Banking Group chief Mike Smith has warned that a break up of the Euro zone appears inevitable as the region's deepening debt crisis threatens to engulf world markets.

Spain on the brink as euro faces the crunch

19 May 2012 | Charles Penty

PRINT: 19 May 2012 | PAGE 15 | Spain on the brink as euro faces the crunch

Spain moved back into the eye of the eurozone storm as the country’s borrowing costs rocketed and the banking sector was hit by mass downgrades.

Nerves may lead to loss of control

19 May 2012 | Jennifer Hewett

PRINT: 19 May 2012 | PAGE 1 | Outbreak of nerves threatens to tip into calamity

Hewett | The outbreak of nerves over Europe may lead to a loss of control and confidence that would be much harder to fix the longer it’s left to fester.

Why Australia’s at risk?

19 May 2012 | Robert Guy

PRINT: 19 May 2012 | PAGE 1 | Why Australia’s at risk

Far from being a safe haven, Australia is priced for risk – so the markets and the dollar are being walloped.

Can Europe hold?

19 May 2012 | Emma-Kate Symons

PRINT: 19 May 2012 | PAGE 1 | Can europe hold?

Will a Greek departure from the euro zone lead to a collapse in the currency and cause untold damage? The opinion is divided but everyone agrees the result will be painful and expensive.

Australia, US sign cyber security deal

18 May 2012 |

Australia and the United States have formalised closer relations on cyber security that will allow for greater sharing of information.

US Senate wants Morgan chief to explain $2bn loss

18 May 2012 | Dominic Rushe

PRINT: 18 May 2012 | PAGE 1 | US Senate wants Morgan boss to explain $2bn loss

The US Senate banking committee plans to call JP Morgan boss Jamie Dimon to Washington to explain how the bank lost $US2bn in poorly supervised trading.

Japan upgrades its view of economy

18 May 2012 |

Japan has upgraded its view of the economy for the first time in nine months, a day after better-than-expected growth figures due to increased exports and consumer spending.

Obama, Hollande to press euro crisis remedies

18 May 2012 |

US President Barack Obama will seek to cement a bond with France's new leader before heading to Camp David for a G8 summit where he is set to press Europe to do more to fix the region's deepening economic crisis.

Jump on the Asian wagon

18 May 2012 | Duncan Hughes

PRINT: 19 May 2012 | PAGE 1 | Jump on the Asian wagon

Australia has a unique opportunity to share in unprecedented Asian growth over coming decades, ANZ chief executive Mike Smith says.

Solve Greece, then save Europe

18 May 2012 | David Bassanese

PRINT: 19 May 2012 | PAGE 40 | Solve Greek mess first, save Europe

Debt forgiveness would not send Europe broke and could help keep the euro zone intact. But Europe also needs a growth solution.

Thai PM to visit Australia

18 May 2012 |

The Prime Minister of Thailand will visit Australia over four days later this month. Prime Minister Julia Gillard on Friday said Her Excellency Ms Yingluck Shinawatra would visit between May 26 to 29.

There was no agreement with China: PM

18 May 2012 |

Prime Minister Julia Gillard has rejected reports the Labor leadership feud involving Kevin Rudd derailed a 2011 agreement for annual high-level meetings between Australia and China.

South Africa ‘confident’ of solution to Iran oil ban

18 May 2012 |

South Africa, which receives a quarter of its crude from Iran, is holding almost daily discussions with the US, EU Union and Iran about reducing its purchases.

Afghan govt with Taliban ‘desirable’: Carr

18 May 2012 |

Afghanistan's prospects of stability will be boosted if the Taliban are part of the government, Foreign Minister Bob Carr says.

Northern Rock rescue may cost taxpayer £2bn

18 May 2012 |

Rescuing Northern Rock could cost British taxpayers £2 billion, but it should be seen as the cost of securing financial stability, according to the National Audit Office.

US turns up heat in solar dispute with China

18 May 2012 |

The United States hit Chinese solar companies with punitive import tariffs of 30 per cent or more on Thursday, ruling they had dumped cut-price solar panels into the U.S. market.

I’m no tax dodger: Facebook’s Saverin

18 May 2012 | Ben Woodhead

Facebook co-founder Eduardo Saverin has rejected claims he renounced his US citizenship and moved out of the country to avoid paying tax on his stake in soon-to-list Facebook.

Threats sent to Aust embassy in Pakistan

18 May 2012 |

Australia's embassy in Islamabad has received a threatening letter containing suspicious powder in what appears to be a coordinated campaign across Pakistan's capital.

Moody’s downgrades 16 Spanish banks

18 May 2012 |

Moody’s Investors Service has downgraded the long-term debt ratings for 16 Spanish banks, in part because of constraints on the government’s ability to provide them with support.

US names ambassador to Burma after 22 years

18 May 2012 |

The US is changing its ban on investments in Burma and the government has appointed an ambassador there for the first time since 1990.

Spain denies run on deposits at Bankia

18 May 2012 |

The Spanish government has denied a newspaper report that customers had withdrawn more than €1 billion from the partly nationalised lender Bankia over the past week

How Australia can profit from the Asian century

18 May 2012 | Mike Smith

PRINT: 18 May 2012 | PAGE 2 | How Australia can profit from the Asian century

The national discussion needs to focus more on opportunities in the region rather than the risks.

A click away from the ‘creepy line’

18 May 2012 | Dominic White

PRINT: 18 May 2012 | PAGE 2 | Just a click away from the ‘creepy line’

White | Every “like” icon you click, email you send, and web page you visit leaves a trail to an intensely seductive honeypot.

Monetary easing may be needed

18 May 2012 | Joshua Zumbrun

PRINT: 18 May 2012 | PAGE 40 | Monetary easing may be needed

The US Federal Reserve signalled further monetary easing remains an option to protect the US economy from the danger that legislators will fail to reach agreement on the budget or Europe’s debt woes worsen.

Greece ponders the unthinkable

18 May 2012 | Maria Petrakis

PRINT: 18 May 2012 | PAGE 37 | Greece ponders the unthinkable

Greece is heading towards national elections six weeks after the last vote, with its future in the 17-nation euro zone and the international bailout at stake.

Letting go of the euro might be better for everyone

18 May 2012 | Eduardo Porter

PRINT: 18 May 2012 | PAGE 1 | Letting go of the euro might be better for everyone

Two decades ago, when Europe’s leaders worked out the details of their grand vision for a single currency, most economists figured out that the euro would be fatally flawed.

It won’t be a quickie divorce

18 May 2012 | Philip Baker

PRINT: 18 May 2012 | PAGE 3 | It won’t be a quickie divorce

Seven weeks ago, investors where basking in the glow of the best quarter for the S&P 500 since 1997, but since then the Greece impasse has them rattled and the index has given back more than half those gains.

Europe reaps a bitter harvest

18 May 2012 | The Australian Financial Review

PRINT: 18 May 2012 | PAGE 1 | Europe reaps a

Editorial | European policymakers have no one but themselves to blame for their economic and financial predicament. It is the direct result of the political compromises put in place to secure monetary union.

Beware the lull before the storm

18 May 2012 | Bianca Hartge-Hazelman

PRINT: 18 May 2012 | PAGE 17 | Beware the lull before the storm

Dramatic midweek falls in global markets may have eased but traders warn it could be a false dawn ahead of Greece’s elections in June and whether Greece remains in the euro.

Games to boost UK economy

18 May 2012 | Heather Stewart

PRINT: 18 May 2012 | PAGE 4 | Games to boost UK

Britain’s economy will receive a much-needed boost from the Olympic Games as more tourists and extra public spending lead to increased economic activity.

Not so black and white

18 May 2012 | Rachel Newcomb

PRINT: 18 May 2012 | PAGE 2 | Islam’s polarised heroines

In Wanted Women, journalist Deborah Scroggins uses the biographies of Hirsi Ali, a former Muslim, and Aafia Siddiqui, alleged to be one of the few female members of al-Qaeda, to tell a larger story about the war on terror.

Whatever happened to the US Senate?

18 May 2012 | Terence Samuel

PRINT: 18 May 2012 | PAGE 2 | Whatever happened to the US Senate?

Harking back to the glory years when the Senate was still great.

Let Greece exit and save Spain

18 May 2012 | Alistair Osborne

PRINT: 18 May 2012 | PAGE 2 | Let Greece leave and save Spain

Everyone knows Greece is leaving the euro, the real challenge is preventing the fall-out extending to Spain.

Euro woes head to G8

18 May 2012 | Howard Schneider

PRINT: 18 May 2012 | PAGE 2 | Financial woes take centre stage as leaders gather

Top world leaders gathering in Camp David this weekend will confront renewed financial tensions in Europe and a deepening quandary over how to bolster tepid economic growth in developed nations while controlling public debt.

Asia prepares to ride out Greek storm

18 May 2012 | Keiko Ujikane

PRINT: 18 May 2012 | PAGE 2 | Asia prepares to ride out Greek storm

Japan’s economy expanded faster than estimated in the first quarter, boosted by reconstruction spending which is poised to fade just as a worsening in Europe’s crisis threatens to curtail export demand.

JPMorgan losses mounting fast

18 May 2012 | Nelson Schwartz

PRINT: 18 May 2012 | PAGE 2 | Bank’s losses mounting fast

The trading losses suffered by JPMorgan Chase have surged in recent days, surpassing the bank’s initial $US2 billion estimate by at least $US1 billion, according to people with knowledge of the losses.

Key firms to get closer supervision

18 May 2012 | Carla Main

PRINT: 18 May 2012 | PAGE 2 | Key firms to get closer supervision

US financial regulators are looking at specific non-bank financial companies to possibly designate them as systemically important and subject to more rigorous supervision, said Michael Gibson, director of the Division of Banking Supervision and Regulation at the Federal Reserve Board.

World briefs

18 May 2012 |

PRINT: 18 May 2012 | PAGE 2 |

Turkey’s military says two of its warplanes chased an Israeli aircraft that allegedly violated the airspace of the breakaway Turkish Cypriot state, where Turkey is exploring for oil and gas.

Single currency designed to unite, tearing it apart

18 May 2012 | Jeremy Warner

PRINT: 18 May 2012 | PAGE 2 | Single currency designed to unite is tearing Europe apart

Once every half century or so, Europe “tears itself apart” in an orgy of self-destructive national tribalism. It happens just like clockwork. Usually it’s war that does the damage.

Disgruntled officials call for Chinese security chief’s head

18 May 2012 |

PRINT: 18 May 2012 | PAGE 2 | Chinese officials call for security chief’s head

A group of Chinese Communist Party veterans has written an open letter calling for the removal of the country’s security chief, in the latest sign of disunity ahead of its leadership transition.