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On Tuesday night the French satirical newspaper Charlie Hebdo was firebombed, presumably by Islamic terrorists, for naming the Prophet Mohammed its editor-in-chief. Nobody was hurt in the attack but the newspaper’s offices have been destroyed. They still managed to see the light side, running a commentary saying “After Greece, save Charlie”. The left-wing paper has never been as popular as its main rival Le Canard Enchaine but its outrageous cartoons and caricatures are a staple of French kiosk fronts. Naming Mohammed editor may be one of the more tame things the newspaper has done. But whether it is tasteless or not, the magazine’s right to publish, insult and ridicule is

So much rot has been said about the Eurozone crisis that you do wonder whether Merkel, Sarkozy et al have come to believe their own spiel. This is an economic problem and it can’t be solved by political will. Greece is bust and several French, German and Dutch banks were stupid enough to lend €130 billion to the Greek government that they’re not going to get back. All the summits in the world cannot change this simple fact. These crisis talks are about bailouts for banks, not bail outs for Greeks. BNP Paribas is in for €37bn. Commerzbank of Germany is owed €15bn. And if Greece defaults, then insurance claims

Angela Merkel, Nicolas Sarkozy and George Papandreou are in crisis talks about Greek debt. There are rumours that they are preparing an “orderly default” for Greece. But, officially, Merkel is still pressing ahead with implementing the existing Greek debt deals. This meeting also has a domestic context for Merkel. According to the FT, she is determined to stamp on the growing disquiet within her governing coalition over the Eurozone crisis and is pleading for calm resolve. It remains to be seen if she succeeds.  The danger of contagion within the Eurozone remains and concerns about the exposure of French banks persist, which is doubly worrying for Nicolas Sarkozy given the proximity

Banks and financial institutions endured a painful day’s trading, following Angela Merkel and Nicolas Sarkozy’s announcement yesterday that the Eurozone should adopt a ‘Tobin tax’, a charge on financial transactions. Once again, M&S chose piecemeal changes over the grand structural scheme desired by markets. The Tobin tax was just one proposal of three. The other two were: to create “genuine economic governance of the Eurozone” under, for the moment, EU President Herbert van Rompuy. The second: to impose a ‘Golden Rule’ on the budgets of Eurozone members. The ‘Golden Rule’ will bind national parliaments to agree to limits on national debt levels and impose statutory requirements on mastering budget deficits. The

The American historian Walter Russell-Mead has a cynical — but very possibly accurate — take on what the French are trying to persuade the Germans to accept with their plan for Eurobonds: ‘France’s clear short term goal is to commit Germany to underwrite debts from weak EU states.  That not only staves off a crisis that threatens to engulf France; by putting Germany on as a co-signer for Greek, Italian and Spanish loans, France will ensure that Germany’s credit rating will not be better than France’s. The French will accept almost any German rules to limit the ability of countries like Greece to run up new debts.  It is in

The police received a savaging in parliament earlier. I lost count of the number of MPs who relayed their constituents’ anger about riot police who stood by as buildings burned. Cameron’s defence – that the police response had been inadequate to adapt to a new threat posed by crime facilitated by social networking – did not allay the concern. By the end of the debate, there was consensus among many backbenchers that police officers should receive training in riot control as part of their basic training. The extraordinary incidents in London and elsewhere have been at the centre of the world’s eye, and the police have not escaped censure. Le Monde carries a wonderfully mischievous

The news that the EU seeks a budget of £1 trillion between 2013 and 2020 inspired disbelief rather than ire. President Barroso’s almost childlike insistence that the proposal was ‘relatively small’ was amusing, certainly not alarming. It’s a classic EU trick: pitch for 5 per cent and a string of crazy financial measures (including a ‘Tobin tax’ on financial transactions) in the hope obtaining more modest gains of say 2 per cent. Barroso will also throw the odd concession into the bargain: the announcement of a £5.4bn saving on the Commission’s staffing costs represents a concession. But, Barroso has his work cut out to secure even a 1 per cent

The news that the case against Dominique Strauss-Kahn is in danger of collapsing is almost as surprising as the initial news of his arrest on suspicion of raping a chamber maid. There had been a general assumption in New York, Washington and Paris that the case against the former IMF president was clear-cut and that his political ambitions were over. It is unclear how quickly the case will now be resolved. But there is sure to be pressure in France to delay the nominating deadline for the Socialist Primary beyond the 13th of July to allow Strauss-Kahn to run if he is cleared. The question is whether the various revelations

As Noman Benotman predicted, Colonel Gaddafi’s relations with his military are disintegrating. Reuters is reporting that 120 loyalist officers have defected and arrived in Rome. Details are scant, but this is a major success for Britain and France’s attempt to effect regime change without intensifying their military deployment. There will be doubts as to how long the resilient dictator can survive without loyal military leadership. Gaddafi now has to choose how to respond to this treachery – rough justice may be tempting, but that might deepen the rebelliousness of his officers, increasing the likelihood of a coup. NATO will be trying to exploit this stroke of luck, encouraging further defections.