By Luisa Frey
♦ Deflation is threatening Spain, which just emerged from recession– falling prices result in higher real value of debt, making families’ and businesses’ lives harder.
♦ In China, reforms announced by the Communist party are compared to “small repairs on an old road”.
♦ The New York Times revealed that JPMorgan Chase hired a consulting firm run by the daughter of Wen Jiabao, the former Chinese prime Minister and US authorities are scrutinising these ties as part of a wider bribery investigation.
♦ The New York Times also writes in its blog Sinosphere about a code used by Bloomberg to keep articles away from the eyes of powerful people in China.
♦ Since its independence, almost every political transition in the Central African Republic has come along with violence. The current conflict is no exception with the country risking genocide, writes Peter Bouckaert, emergencies director at Human Rights Watch. Read more
By Luisa Frey
♦ Spaniards may have less faith in European institutions than before, but no eurosceptic parties have risen in the country, writes the FT’s Tobias Buck.
♦ The higher the fire burns in Middle East, the more the US seems intent on turning away, says FT columnist Philip Stephens.
♦ As part of a soviet-inspired urban plan, superblocks are being built in China. The gated compounds in suburbia have residential towers and houses inside them, but force the new urban middle-class to drive back to the city for services.
♦ Rising anti-semitism is bringing fear to Europe. A third of European Jews are considering emigration because they do not feel safe in their home country, according to The New York Times.
♦ Local newspapers called Wednesday’s breakthrough in peace talks aimed at ending Colombias’s half-century-old guerrilla war “historic”. But many Colombians are sceptical, reports the Global Post
♦ Tens of thousands of middle-class Syrians are trying to get to Europe’s wealthy northern states: “Whether they wind up in Nordic comfort or desperate straits on the fringes of Southern Europe is often a matter of luck”. Read more
Judges of the German Constitutional Court (Matthias Hangst/Getty Images)
In the beginning, the eurozone crisis was a banking sector, private debt and government bond market emergency. Then economic recession, unemployment and welfare expenditure cuts took hold, propelling the growth of anti-EU, anti-establishment and anti-immigrant political movements. Now the eurozone crisis is acquiring a third dimension: one in which national constitutional courts are moving to centre stage.
True, the judges sitting on Germany’s constitutional court have been going in this direction since 2009, when they issued a judgement on the EU’s Lisbon treaty. But before the eurozone crisis erupted in full force, such rulings were fairly uncontroversial. The judges could reasonably argue in 2009 that they were simply testing if the new EU fundamental treaty was compatible with the democratic principles of Germany’s 1949 constitution, known as the Basic Law.
Now that the eurozone crisis has pushed the German government and the European Central Bank into once unimaginable measures to rescue the 17-nation currency bloc, the constitutional court has parked itself on wholly different territory. The judges would indignantly contest this, but when the court opened hearings in June into the legality of the ECB’s actions to protect the eurozone, it looked from the outside very much as if the judges had appointed themselves the supreme law lords of European integration – to the exclusion of any other EU or national legal authority. Read more
♦ Gillian Tett speaks to Alan Greenspan and finds he is prepared to admit that he got it wrong – at least in part.
♦ The White House glitches have gone further than Obamacare, as the administration has been continuously caught off guard by recent crises from Syria to spying, says Edward Luce. And the president gives few signs of having found a learning curve.
♦ France’s central bank governor, Christian Noyer, says Europe’s financial transaction tax poses an “enormous risk” to the countries involved.
♦ Spain’s mini gold rush in the country’s north is part of a broader movement by foreign investors seeking to turn Spain’s woes to their advantage. It also shows some of the difficulties of investing despite a more positive outlook.
♦ Ikea has sent self-assembly huts to Ethiopia to house Somali refugees – and they could soon be used as alternatives to tents elsewhere.
♦ Josef Joffe, editor of Die Zeit, looks at the history of top-down capitalism and wonders whether China can sustain its astounding growth.
♦ The art world may be marvelling at China’s booming market, but many transactions have not actually been completed and the market is flooded with forgeries. Read more
♦ Spain may be emerging from the recession with a more competitive economy, but critics claim that confidence in the rebound is premature and potentially dangerous.
♦ A leaked video shows Egyptian Army officers debating how to influence the media before the military takeover.
♦ Patrick Cockburn writes about how media coverage of conflicts in Afghanistan, Iraq, Libya and Syria doesn’t always reflect the whole reality of each war.
♦ Justice officials in Hong Kong admitted to knowing that one of Berlusconi’s allies tried to interfere with evidence in a money laundering case, where Berlusconi’s son is one of the defendents, according to the South China Morning Post.
♦ The stance of some Republican House members on the US government shutdown is generating anger among senior Republican officials, who think the small bloc of conservatives is undermining the party and helping President Obama. Read more
By David Gallerano
♦ The Kremlin-backed candidate Sergei Sobyanin beats anti-corruption blogger Alexei Navalny and remains mayor of Moscow, although Navalny’s unexpected result looks like an alarm signal for Vladimir Putin.
♦ A school regional programme shows many families in Spain cannot provide their children with basic needs – namely, food and a balanced diet.
♦ Writer John le Carré discusses his life and recent events with Philippe Sands.
♦ While jihadists and al-Qaeda affiliates prepare on the Syrian mountains for the US attack (with the lessons of Iraq in mind), Syrian refugees are leaving the country and experiencing a hard time in Egypt, where they are now associated with the discredited regime of Mohammed Morsi. In the New York Times Nicholas Kristof outlines two options for the US – intervention or paralysis – and chooses the latter.
♦ The ancient practice of self-immolation – though relatively uncommon – is Chinese farmers’ ultimate protest. Chinese government will probably respond by increasing compensation for expropriated rural land.
♦ Iowa grants gun permits to people who are legally or completely blind. There is disagreement among advocates for the disabled and public officers on whether this endangers public safety.
♦ Brazilian TV network Globo reveals that the NSA spied on Brazilian Oil giant Petrobras, adding to the existing tensions between United States and Brazil. Read more
Can Spain’s scandal-plagued government survive?
Spain’s prime minister, Mariano Rajoy, and his Popular Party are embroiled in a scandal that threatens to bring down the government. The flare-up in the long-rumbling scandal comes at a bad time for Spain, which continues to struggle to revive an economy where unemployment is around 20 per cent. Tobias Buck, Madrid bureau chief, and Tony Barber, Europe editor, join Gideon Rachman to discuss the crisis.
♦ Kofi Anna’s Africa Progress Panel releases a report lambasting Eurasian Natural Resources Corp for “opaque concession trading” costing the Democratic Republic of Congo $725m.
♦ With normal post-recession government employment expansion, US unemployment might be as low as 6.3 percent, but this recovery is different, argues Derek Thompson.
♦ Spain has become a destination for vitro fertilization and there is no shortage of egg donors. Der Spiegel talks to one woman who donated eggs to ease her financial difficulties.
♦ The Bhutto family has been notably absent from campaigning in Pakistan. The FT looks at whether this is the beginning of the end for the Pakistan People’s Party. Read more
♦ The ever-growing ranks of unskilled and unemployed youth in Spain not only pose a challenge to the economy but are also threatening the fabric of Spanish society – a problem Madrid is only now beginning to address.
♦ Voter outrage sparks José Manuel Barroso’s concerns about eurozone belt-tightening.
♦ Paul Kevin Curtis, who has been cleared in the ricin letter investigation, might have been framed, according to his lawyer. James Everett Dutschke, another entertainer, is now the focus of the investigation and it seems that the two men’s lives have coincided before.
♦ Thirteen female corrections officers were charged with federal racketeering at a state prison in Maryland, US. “The indictment described a jailhouse seemingly out of control. Four corrections officers became pregnant by one inmate. Two of them got tattoos of the inmate’s first name, Tavon — one on her neck, the other on a wrist.”
♦The 200m emails to be kept in the George W. Bush Presidential Center are creating years worth of work for archivists, a growing problem for the U.S. National Archives and Records Administration, the federal agency that keeps the nation’s trove of historic documents.