Strained US Ties Seen as Israel Rejects Cease-fire Pleas

Spanish Prime Minister Mariano Rajoy is moving to ease painful austerity measures implemented in the wake of the European financial crisis, but the strategy carries significant risks. If the shift to growth succeeds, Spain will emerge as a shining example of success. If the gamble fails, Spain could falter quickly, dealing a serious setback to the European Union’s fragile recovery.

The jihadist army that swept across Iraq with stunning speed has toppled al-Qaeda from its rank as the most feared terrorist group. The Islamic State of Iraq and Syria (ISIS) could tempt a desperate al-Qaeda to craft a plot to rival its 9/11 attack, grab headlines and re-establish its leadership of radical Islam.

Since coming into office a month ago, Egyptian President Abdel Fattah al-Sisi has stifled the Islamist Muslim Brotherhood in the name of national security. While other regional leaders lead from behind, Sisi’s out-front, proactive model has been more successful at halting the Islamist drive, an outcome that raises the general’s political profile across North Africa and the Middle East but also increases the risks. Egypt is already facing a threat of an incursion through the Gaza Strip by the jihadist terrorists of the Islamic State of Iraq and Syria.

By Gordon Chang

The Obama Administration's focus on "engagement" has failed to deter an increasingly belligerent China, as Beijing's top party leaders pay more attention to their increasingly powerful, but divided military.

The European Commission’s investigation of three European Union nations for providing unfair state support to multinational corporations like Google and Starbucks is a warning shot to EU countries with favorable tax agreements. The investigations are also likely to spur momentum for global tax reform, as the United States and the EU increasingly cooperate on tackling tax avoidance.

Special Economic Analysis
by Peter Warburton, PhD

The mainstream print media in Europe recently reported that China will become the world’s largest economy this year, overtaking the United States for the first time. As China’s reported growth rate has been running at 7 percent or more a year, the natural reaction of many was to find the predictions plausible.