• A drought in Brazil, which depends on hydropower for 70 per cent of its electricity, is sparking fears of water rationing and energy shortages that could hit economic growth
  • As public deficits rise, pressure to cut costly subsidies on fuel and other products is growing in developing economies. Morocco has shown other countries how the reform can work
  • He is close to Vladimir Putin and has described the European Union as the modern heir to the Third Reich – so why is Viktor Medvedchuk negotiating on behalf of Ukraine in peace talks? (NYT)
  • As China moves into the third year of its anti-corruption campaign, experts are worried that without the grease of bribes, projects are stagnating and the economy is taking a hit (Washington Post)
  • Grow vegetables extensively! North Korea has unveiled a list of 310 new political slogans covering every conceivable topic (Agence France-Presse)

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If the Minsk II agreement reached between the leaders of Russia, Ukraine, France and Germany can secure a ceasefire and save a few lives, then it is probably a good thing. But you would have to be fairly naive to believe that is the end of the matter.

Over the past year, President Putin has shown that he is a master of turning military pressure on and off to keep the Ukrainians and the west on the hop. And there are a couple of other reasons for suspecting that the fighting may soon restart.

First, the Russians have not yet achieved even the relatively limited goal of establishing a land corridor between Russia and Crimea. Until they do this, the economic situation in Crimea is likely to be very precarious. Second, while Russia’s denials that it is behind the fighting in eastern Ukraine are not credible (if so, why are they even negotiating a ceasefire?), it may well be true that Moscow is not in complete control of events. The Ukrainian side may also be unable to control some of the nationalist militias that are fighting in the east of the country. Read more

Should you find yourself in Baku, skip the Versace store and Emporio Armani. Go instead to the grand edifice with the Grecian columns that stands between them, overlooking the Caspian Sea with its fabulous oil and gas riches.

This building was constructed in 1960, when Azerbaijan was part of the Soviet Union, to mark Vladimir Lenin’s 90th birthday. It is a vastly different place these days, hosting the Museum of Azerbaijani Independence. If you’re in luck, as I was this morning, you will be the only visitor. Read more

On Friday we will find out how the eurozone’s economy performed in the final quarter of last year. Analysts think the figures, out at 10am GMT from Eurostat, the European Commission’s statistics bureau, will show output grew by 0.2 per cent between the third and the fourth quarters.

That figure is far from spectacular in a region where the economy remains smaller than before the collapse of Lehman Brothers. Yet a positive number will feed hopes that the conditions are in place for 2015 to be a better year for the region’s economy. Read more

Scott Walker, governor of Wisconsin and one of the early frontrunners in a crowded field of possible Republican presidential candidates, was expected to discuss foreign policy in an appearance on Wednesday at London’s best known foreign policy think tank.

Instead he talked a lot about cheese.

Mr Walker declined to opine on a wide range of international affairs, from whether the UK should stay in the European Union, to the current turmoil engulfing Greece and Ukraine to how to combat terror groups like the Islamic State in Iraq and the Levant at a Chatham House event. Read more

Are Europe’s politicians ready to contemplate Grexit?
Gideon Rachman is joined by Ferdinando Giugliano and Stefan Wagstyl to discuss the growing stand-off between Greece and its eurozone creditors as the language becomes more uncompromising on both sides. What would happen if Greece left the eurozone and are politicians prepared to contemplate such an outcome?

President Recep Tayyip Erdogan is hoping to further strenghten his AK party's representation in parliamentary elections

It sounds like the guest list for a high-profile dinner party but it could be the future of Turkish democracy.

In the last few days a host of prominent Turks, including the country’s spy chief, the head of its stock exchange, several university heads, top civil servants and the chief of the country’s wrestling federation have all resigned their posts, paving their way to stand in June 7 parliamentary elections.

It is striking that so many people from so many walks of life – many at the pinnacle of their careers – should ditch their jobs to have a bash at electoral politics. The vast majority are thought to be aiming to run for the ruling AK party. Read more

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The eurozone is mired in a stand-off over Greece’s government debt which, at roughly 175 per cent of gross domestic product, is the highest in the currency union. But new data released on Tuesday make one wonder whether member states should stop worrying about Athens’ fiscal woes and start being concerned about… Berlin’s. Read more

If there was any doubt that the forthcoming negotiations between Greece’s new Syriza government and its eurozone creditors would be fiery, Greek prime minister Alexis Tsipras dispelled them in his barnstorming speech to his parliament on Sunday night.

His defiant rhetoric will have gone down well not just in Greece but also with some of the political left in Europe and beyond. Some politicians and commentators have elevated the dispute between Athens and the rest of the eurozone – usually shortened to Greece vs Germany – as a battle between the progressive and reactionary forces for the soul of Europe, a fiscal Spanish Civil War for the 21st century. Read more

By Gideon Rachman

China’s education minister has just issued an edict to the country’s universities that sounds like something from the heyday of Maoism. “Never let textbooks promoting western values enter our classes,” thundered Yuan Guiren. “Any views that attack or defame the leadership of the party or socialism must never be allowed.”

  • Venezuelan émigrés in Florida with fierce anti-Chavez views are aiming to steer US foreign policy on their homeland, just as exiled Cubans did
  • The postponement of Nigeria’s elections offers President Goodluck Jonathan a chance to regain the initiative in the Boko Haram insurgency, but the delay also risks fraying nerves further
  • India hopes deworming 140m schoolchildren in the world’s biggest campaign against the parasites will boost economic productivity
  • Germany and Greece are engaged in a fight to the death, with neither backing down in a cultural and economic clash of wills
  • Welcome to Crimea in winter - a lonely island, with no tourists, frightened Tatars and where Russians have taken all the jobs.

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  • Greece’s privatisation programme, ordered under the terms of its international bailout, was falling far short of targets even before the country’s new left-wing government vowed to scrap further sales of state assets
  • Following Isis’ brutal execution by immolation of captured Jordanian pilot Muath al-Kasaesbeh, many in the country have called for a deeper military commitment against the jihadist group
  • Foreigners are leaving Russia in unprecedented numbers, reflecting a worsening economic outlook as western sanctions bite
  • The west’s inability to comprehend how Vladimir Putin sees the world means it has trouble thinking constructively about how to deal with him (The American Interest)
  • A convicted al-Qaeda operative has claimed that more than a dozen prominent Saudi figures were donors to the terror group and that a Saudi diplomat discussed with him a plot to shoot down Air Force One (NYT)

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Time to start arming the Ukraine government?
The upsurge in fighting between pro-Russian separatist rebels and Ukrainian government forces has shown how little diplomatic leverage the west now appears to have with the Kremlin. There is an increasingly lively debate about whether the west should provide Kiev with arms to help it face down the secessionist onslaught. Ben Hall discusses the crisis with Neil Buckley, Geoff Dyer and Stefan Wagstyl.

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Less than a week into his new job, Greece’s finance minister is already performing the kolotoumbes, or policy somersaults, anticipated by several Athens commentators.

Yanis Varoufakis, an eloquent economics professor, has removed a key plank of the leftwing Syriza party’s pre-election platform: its longstanding demand that creditors should write off at least one-third of Greece’s huge public debt, which last year amounted to 175 per cent of national output.

Visiting London on Monday, the second stop of a tour of European capitals, Mr Varoufakis told the Financial Times that Athens would restructure its entire public debt by swapping bailout loans for new growth-linked bonds and issuing what he called “perpetual” bonds to replace Greek bonds owned by the European central bank.

The U-turn on the debt issue was so abrupt that some observers wondered whether Mr Varoufakis went off-message as he tried to reassure Greece’s eurozone partners and City investors that the Syriza-led government was serious about meeting its obligations to the EU and International Monetary Fund. Read more

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By Gideon Rachman
There are three crises afflicting Europe. Two are on the borders of the EU: a warlike Russia and an imploding Middle East. The third emergency is taking place inside the EU itself — where political, economic and diplomatic tensions are mounting.

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