EU President says euro debt crisis "greatest challenge", proposes financial transaction tax; German parliament set to vote on second Greece rescue; Pakistan heaps praise on "all-weather friend" – China; Typhoon in Philippines leaves 21 dead; US and EU criticise Israel for 1100 more illegal homes; Second minister resigns over crackdown on Amazon road protests; and more
Top of the Agenda: Barroso Addresses EU Parliament
In an annual speech to the European Parliament, European Commission President Jose Manuel Barroso said that the eurozone sovereign debt crisis posed the "greatest challenge" (DeutscheWelle) in the history of the European Union and called for further EU integration to stem the tide. He maintained that Greece, the epicenter of the crisis, would remain in the single currency zone.
Barroso also proposed a tax on financial transactions (FT) in the EU, which could bring in as much as $50 billion in new revenue per year. He is expected to outline plans for greater fiscal integration and the introduction of common eurobonds in the coming weeks.
Barroso's speech came as Greece teeters on the brink of default. Eurozone governments are in the process of ratifying an agreement to expand the temporary eurozone bailout mechanism, the European Financial Stability Facility, and provide Greece with a second rescue package. The German parliament (Reuters) is set to vote on the plan tomorrow.
Analysis
The financial crisis that began in August 2007 has entered a new and more dangerous phase. A positive feedback loop between banks and weak sovereigns is emerging, with a potentially calamitous effect on the eurozone and the global economy, writes the Financial Times' Martin Wolf.
Members of German Chancellor Angela Merkel's center-right coalition, alarmed that the euro bailout fund may be given even greater powers than planned, have threatened a bigger-than-expected rebellion in a parliamentary vote tomorrow, explains Der Spiegel.
The Bundestag vote will not answer the question of whether Germany is prepared to do enough to stop the euro from falling apart, says the Economist.
PACIFIC RIM
Philippines Assesses Typhoon Damage
A deadly typhoon left twenty-one people dead (al-Jazeera) and dozens more injured around the capital of Manila. The Philippines government estimated damages--particularly to the country's vital agriculture industry--at $2.3 million.
CHINA: A subway crash in Shanghai injured at least two hundred and fifty people, raising new concerns about whether the Chinese government has sacrificed safety measures (FT) in its effort to rapidly expand high-speed transportation systems.
ELSEWHERE:
EU & US condemn Israel's settlement plans
Pakistan warns US, turns to China
Ministers resign over Bolivia road protest
This is an excerpt of the CFR.org Daily News Brief. The full version is available on CFR.org.