World News Brief, Friday July 1

EU promises support for Greece but pressure remains for further cuts; World markets rally on back of Greek vote, but solution only temporary (+ analysis); NATO airstrike kills Afghan militant leader; Taiwan's ex-PM charged with embezzlement; Egypt violence as anger with interim government surfaces; and more

Top of the Agenda: Greek Vote Due on New Austerity Measures

Greek lawmakers are expected to pass a bill for fresh austerity measures (AP), following two days of rioting in Athens that left some two hundred people injured. Greece's international creditors--the European Union and the International Monetary Fund--have insisted the country back an austerity package and an associated implementation bill as a precondition for more aid (WSJ). More riots are expected today across the country. Greece's parliament yesterday approved a five-year, €28 billion ($40 billion) package of spending cuts and tax increases.

World stocks and the euro hit three-week highs (Reuters) after yesterday's vote, but while the vote creates some breathing space, EU officials know that the battle to save Greece and the euro is not over (Telegraph) and that the future remains in question. "We are under no illusion that we have a resolution to Greece's insolvency," Andrew Lim, an analyst at Espirito Santo investment bank in London, told the Wall Street Journal.


Despite the Greek parliament's approval of an austerity package, the country's enormous debt and EU countries' tortured debate over solutions raise concerns that default is unavoidable.

While the Greek crisis calls the eurozone's future into question, it will paradoxically have the effect of deepening EU integration, says economist Iain Begg.

With much of the developed world--including the UK, Japan, and the United States--facing heavy state debt burdens, the events in Greece are a glimpse into the future for many of the global economy's most important nations, writes Michel H. Shuman in TIME.


PACIFIC RIM: Ex-Taiwanese President Charged With Embezzling

Former Taiwanese president Lee Teng-hui has been charged with embezzling $7.79 million (BBC) from a secret diplomatic fund during his 1988-2000 presidency.

Burma: The government told pro-democracy leader Aung San Suu Kyi to halt all political activities (AFP), warning that her first national tour since being freed could spark riots and chaos. Suu Kyi says she will not suspend the tour and is waiting for the "right weather conditions."



- Haqqani Leader Killed in NATO Strike
- Egypt's Security Forces Clash with Protesters




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