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from MacroScope:

Nearing a gas deal

A pressure meter and gas pipes are pictured at Oparivske gas underground storage in Lviv region

Russian and Ukrainian energy ministers are due to meet European Energy Commissioner Guenther Oettinger in Brussels after presidents Petro Poroshenko and Vladimir Putin said they had agreed on the "basic parameters" of a deal to get gas flowing to Ukraine again this winter.

Russia cut off gas supply to Ukraine in mid-June following more than two years of dispute on the price and said Kiev had to pay off large debts for previously-supplied gas before it would resume supply.

Putin also threatened to cut gas supplies to Europe if Ukraine steals from the transit pipeline to cover its own needs this winter. Any interruption to flows to western Europe, via Ukraine from Russia, would deal another blow to already struggling EU economies.

The two sides still differ over how to calculate Kiev's huge gas debt and the schedule for payments and Poroshenko has already said Ukraine will need help to pay the bill.

from MacroScope:

ECB in the dock

Protestors left some barbed wire in front of the euro sign landmark outside the headquarters of the ECB before its monthly news conference in Frankfurt

The European Court of Justice holds a first hearing on the legality of the European Central Bank's Outright Monetary Transactions programme. There won’t be anything definitive today but it serves to rekindle debate about the limits of the ECB’s powers.

In February, the German Constitutional Court asked the European Court to rule on the legality of OMT, the mechanism that drew a line under the euro zone crisis when it was unveiled in 2012. The court may give guidance about how best to make a final ruling which is expected in late spring next year.

from The Great Debate:

Why Iran, U.S. aren’t on quite the same side in fight against Islamic State

Iraqi women walk past a poster depicting images of Shi'ite Iran's Supreme Leader Ayatollah Ali Khamenei at al-Firdous Square in Baghdad

It might seem counter-intuitive to think that attacking the Islamic State, also known as ISIS or ISIL, would damage Iran or Shi’ite interests in the Middle East. After all, Iran shares the West’s concerns about the radical Sunni group and is in a tacit alliance with the United States when it comes to defeating their common enemy. And yet, Iran fears it might end up being the loser in this battle.

The 2003 U.S.-led war in Iraq opened a new political vista in favor of Iran — and Shi’ism — by replacing Sunni leaders, like Saddam Hussein, with Shi’ite politicians previously in exile in Iran, like Nouri al-Maliki.

from MacroScope:

After “get in the hole!”, Europe remains in a hole

Team Europe golfers pour champagne over captain Paul McGinley as they celebrate retaining the Ryder Cup at Gleneagles

Who says Europe is broken? The Ryder Cup stays here again and even Nigel Farage, leader of Britain’s anti-EU party, said he wanted Europe’s golfers to win.

The euro zone is not winning the economic competition however, despite the European Central Bank’s best efforts (it should be noted that only 3 of the 12 Ryder Cup team come from euro zone countries).

from MacroScope:

Britain to join the fray

A pair of U.S. Air Force F-15E Strike Eagles fly over northern Iraq

The British parliament will vote today on whether UK forces should join U.S.-led air attacks against Islamic State militants. Any action will be confined to Iraq, which has asked for help, not Syria where IS also controls swathes of territory. Prime Minister David Cameron has promised a separate vote on that if it comes to it.

Unlike last year when action to stop Syria's Bashar al-Assad using chemical weapons against his own people was voted down, all the main parties appear to be broadly in support, probably swayed by the beheading of captives by the Sunni militants.

from The Great Debate:

As Iran talks resume, it’s time to play ‘Let’s Make a Deal’

U.S. Secretary of State Kerry, EU High Representative for Foreign Affairs Ashton and Iranian Foreign Minister Mohammad Zarif speak together during the third day of closed-door nuclear talks at the Intercontinental Hotel in Geneva

On Thursday, negotiators from the United States, Iran and five other world powers begin the final stretch of negotiations on a comprehensive nuclear agreement. A deal is within reach. But time is short.

With fewer than three months before the Nov. 24 deadline for an agreement, defining the size and scope of Iran’s uranium-enrichment program remains the most significant gap. To bridge it, negotiators must move away from extreme positions toward more realistic ones.

from MacroScope:

Showdown for Hollande

French President Hollande and Finance Minister Sapin take part in the assizes for financing and investment at the Elysee Palace in Paris

The French government faces a confidence vote in the national assembly after President Francois Hollande and his prime minister, Manuel Valls, ousted dissident ministers in a signal perhaps that they are prepared to push ahead with unpopular structural reforms to breathe life into a moribund economy.

Rebel lawmakers in Hollande’s Socialist party say they may abstain. On top of the reshuffle, they are angry at Hollande's policy switch in January to favour tax cuts to business in a bid to revive the economy - a move that has failed to kickstart a flatlining economy.

from The Great Debate:

If U.S. joins Islamic State fight, how will it get out?

U.S. President Barack Obama delivers a statement from Martha's Vineyard, Massachusetts

When President Barack Obama makes the case for military action against Islamic State militants on Wednesday night, it won't be hard to convince Americans to get involved in the conflict. The hard part will be explaining how we get out.

The president is speaking to the American people -- not to Congress. He may not even ask Congress to authorize the use of force. Just to fund it. Which they will do because they don’t want to undercut the U.S. military.

from Jack Shafer:

Keep your frenemies list short and your enemies list shorter

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Compiling an enemies list was a cinch for the United States during the Cold War, what with most of the Soviet Union’s nuclear arsenal targeted its way. Friends of the Soviets immediately became America’s enemies, and Soviet enemies became U.S. friends. That made China a U.S. enemy of the highest order, a ranking shared by the Soviet client-states of Cuba, North Korea, and North Vietnam, against which the United States fought. Muammar Gaddafi's Libya rose to high-enemy status under President Ronald Reagan, a position it maintained until he surrendered its nuclear program.

The enemy-allies partition had a few anomalies, notably the non-aligned nations and double-dealers like the Indians and the Romanians, who exploited frenemy relations with the United States. But it drove U.S. foreign policy for more than two generations until the Soviets sloughed off both communism and empire, laid down their ICBMs, and exited the enemy business. 

from The Great Debate:

The best weapon to fight the Islamic State is already in Iraq

A Kurdish Peshmerga fighter stands guard at the Bakirta frontline near the town of Makhmur

In 21st century Iraq, the enemy is not a state, though it calls itself one. The Islamic State in Iraq and the Levant (ISIL) is a group of Islamist insurgents whose presence stretches across the border between Syria and Iraq.

The only way to defeat the Islamic State is through military force, but Americans will not be doing the fighting on the ground. General John Allen, who commanded NATO forces in Afghanistan, has observed that, “the Kurds, the Sunnis and the Free Syrian resistance elements of the region are the ‘boots on the ground’ necessary to the success of this campaign.”

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