Reuters blog archive
Pro-Russia separatists at talks with representatives from Moscow and the OSCE in Minsk said they would be prepared to stay part of Ukraine if they were granted "special status", which is unlikely to be acceptable to Kiev.
The talks will continue later in the week and come as the Ukrainian military faced a run of reverses on the battlefield which Kiev says have been engineered by the intervention of at least 1,600 Russian combat troops.
In the latest in a string of setbacks, Ukraine's military said it had pulled back from defending a vital airport near the city of Luhansk, where troops had been battling a Russian tank battalion. Ukrainian President Petro Poroshenko accused Russia of "direct and undisguised aggression" which he said had radically changed the battlefield balance. Moscow denies it is involved.
All that means the United States and EU must surely toughen their sanctions on Russia although several EU countries heavily dependent on Russian gas, including the Czech Republic, Slovakia and Austria, are opposed to new measures, which require unanimous agreement.
from John Lloyd:
The collapse of empires has been regarded as a good thing for at least a century, much strengthened by U.S. president Woodrow Wilson’s efforts at the Versailles Peace Conference after World War One, where he sought to inscribe into international practice and law the right of all peoples to achieve a national state.
The lifting of the incubus of Soviet Communism in 1991 from the states of Central and Eastern Europe was opposed only by a few worried political leaders and rather more dispossessed Communists, but even they either put on a smile or kept their heads down. George H.W. Bush, in the White House when the Soviet center would no longer hold, tried to stem the communist tide by embracing his new friend, Soviet President Mikhail Gorbachev, to avoid chaos in the east -- in vain. Nationalism, which the Soviet Union’s ideologists had regarded as one of the cardinal sins and had filled the gulags for decades with those suspected of harbouring its sentiments, triumphed.
A day before the European Central Bank’s monthly policy meeting, ECB President Mario Draghi will travel to Luxembourg for talks with incoming European Commission president Jean-Claude Juncker. Oh to be a fly on the wall.
Some in the ECB are concerned that ultra-low sovereign borrowing costs and Draghi’s “whatever it takes” promise has relieved pressure on euro zone governments to carry on with structural economic reforms.
Juncker has signalled he is comfortable with a Franco-Italian drive to focus on growth and job creation rather than cutting debt.
Scottish nationalist leader Alex Salmond and former British finance minister Alistair Darling, who is fronting the campaign to remain part of the United Kingdom, go head-to-head in the first and possibly only live television debate of the campaign. It is a bigger moment for Salmond, Scotland’s First Minister, who must garner a shift in the polls which consistently put his “Yes” campaign significantly behind with the referendum only six weeks away.
At the last British general election, Liberal Democrat leader Nick Clegg was widely perceived to have won the leaders’ debates yet it didn’t translate into votes. There are, however, a large number of “don’t knows” to play for in Scotland and Salmond is by common consent the more charismatic figure and slick orator.
During the two-hour debate, Darling is likely to highlight the uncertainty over whether an independent Scotland could retain the pound and automatically be part of the EU and how the nationalists would fund their public spending pledges.
Manufacturing PMI surveys across the euro zone and for Britain are due. The emerging pattern is of an improving third quarter after a generally poor second three months of the year.
The UK economy continues to romp ahead – growing by 0.8 percent in the second quarter – but on the continent there are signs of a new slowdown. The Bundesbank now forecasts no Q2 growth at all in Germany and though the euro zone flash PMI, released a week ago, showed the currency area rebounding in July, that largely came at the cost of companies cutting prices further, thereby pushing inflation lower still.
Interesting intervention from former Russian finance minister Alexei Kudrin late yesterday who warned that Russia risked isolation and having its efforts to modernize derailed.
That sort of internal criticism is rare but Kudrin has done so before without censure which suggests Vladimir Putin is – or has been - willing to hear it. Kudrin added that Moscow should not intervene militarily in eastern Ukraine.
By Swaha Pattanaik
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.
Sterling has touched $1.70 and is on the brink of bursting ranges which have confined it for five years. Could a resurgent pound return to pre-crisis levels of $2?
By George Hay
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
Friday Sept. 19, 8.00 a.m. Staff at Royal Bank of Scotland’s Princes Street branch in central Edinburgh arrive for work, a tad bleary eyed. Some only had a few hours of sleep after partying until the wee hours, celebrating Scots’ historic vote to secede from the United Kingdom the previous day. Barely any whisky remains in the city’s bars; but RBS employees are about to discover something even worse. With customers starting to withdraw their deposits, barely any money may soon remain in Scottish banks.
EU leaders didn’t get far last night in addressing the voter backlash dealt to them in European elections but it seems less likely that Luxembourg’s Jean-Claude Juncker will end up with Brussels’ top job, a first indication that things are on the move.
Britain’s David Cameron has been determined to block the arch federalist from becoming European Commission president and, after the strong showing by far-right and far-left parties, others also seem to see the need for a newer broom, possibly even Angela Merkel.
from Photographers' Blog:
By Suzanne Plunkett
I find myself waiting in a featureless hotel conference room in the Scottish town of Kilmarnock. I’m here to photograph an informal meeting about the benefits of voting for independence in the upcoming referendum on whether Scotland should break its union with the rest of the United Kingdom.
But if attendance at this gathering is anything to go by, the vote in favour of secession may be in serious trouble.