Greek PM wins backing of his cabinet to hold nationwide referendum on EU financial rescue plan; manufacturing slowdown in Asia may be result of European debt crisis; a boat filled with asylum seekers from Iran and Afghanistan capsized on way to Australia killing seven; Netanyahu orders building of 2000 houses for Israelies in disputed territory Palestinians claim as their own; Assange loses appeal aganst extradition to Sweden; and more
Top of the Agenda: Greek Cabinet Backs Referendum on Euro Deal
Greek Prime Minister George Papandreou won the full backing of his cabinet to move forward with a nationwide referendum (DeutscheWelle) on an EU plan to provide Greece with a second financial rescue package in exchange for strict austerity measures.
At the same time, a number of lawmakers in the governing Socialist Party voiced their opposition to Papandreou's surprise plan, suggesting he may not survive a vote of confidence (NYT) scheduled for Friday.
If the Greek government falls, or if the Greek public votes "no" in the referendum, it could render moot a comprehensive EU plan (Guardian) agreed on last week to tackle the eurozone sovereign debt crisis, while also signaling Greece's exit from the seventeen-nation single currency zone.
German Chancellor Angela Merkel and French President Nicolas Sarkozy--the architects of last week's plan--are slated to meet with Papandreou and IMF chief Christine Lagarde in Cannes today ahead of tomorrow's G20 summit (WSJ).
Analysis
Papandreou is putting all his eggs in one basket, but he has made the right decision to allow the people to vote on the euro rescue plan for their country, writes Der Spiegel's Sven Böll.
Everyone was consulted about the deal hatched in Brussels last week--from the German Greens to the French banks--except the people who would have to carry it out, says this Guardian editorial.
Even a populace sick of austerity appears to be appalled at Papandreou's proposed referendum on the hard-wrought bailout package, writes TIME's Joanna Kakissis.
The eurozone, once seen as a crowning achievement in the decades-long path of European integration, is buffeted by a sovereign debt crisis of nations whose membership in the currency union has been poorly policed, explains this CFR Backgrounder.
PACIFIC RIM
PMI Data Points to Economic Strains in Asia
Purchasing Managers Indexes in Asia showed a slowdown in manufacturing activity, suggesting the region's export-driven economies (WSJ) were under pressure as a result of the European sovereign debt crisis and tight monetary policy.
AUSTRALIA: A boat filled with asylum seekers (SMH) from Iran and Afghanistan capsized en route to Australia from Indonesia, killing at least seven people. The accident reignited a long-running debate over how to address refugees seeking political asylum in Australia.
ELSEWHERE:
Israel to build new settlements
Judge rules Assange should stand trial
This is an excerpt of the CFR.org Daily News Brief. The full version is available on CFR.org.