Sarko: Butt Out of Turkey's EU Bid, Obama

(NEWSER) - President Obama addressed the Turkish parliament today, and used the opportunity to extend an olive branch to the Muslim world, the New York Times reports. “The United States is not, and will never be, at war with Islam,” said Obama. “America’s relationship with the Muslim world cannot and will not just be based on opposition to al-Qaeda.” More»

France hopes to block full membership bid

(NEWSER) - France is threatening to block Turkey's full membership in the European Union this month and hopes to push the nation into a "privileged partnership" short of complete participation, the Financial Times reports. It's the first time new French President Nicolas Sarkozy will flex his political muscle in an EU controversy. More»

Critics attack European Union's fiscal belt-tightening deal

(NEWSER) - The Czechs thought about it, and they said no. All other 27 EU member states except Britain agreed today to join a compact to impose budget discipline on fellow nations, the BBC reports. British Prime Minister David Cameron had already refused to take part, saying that ceding control of his country's budget is "not in my national interest." The Czech Republic, not yet in the euro, cited "constitutional reasons" for rejecting the treaty. More»

Meanwhile, Merkel and Sarkozy try to drum up support for plan

(NEWSER) - The European Central Bank slashed rates for the second time in as many months today, ahead of a crucial EU summit that could determine the fate of the euro. Analysts had expected the cut, which brings the key rate from 1.25% down to 1%, but sources tell Bloomberg that the ECB may do even more to kick-start bank lending, like lowering collateral standards. "They will also keep open the option to go below 1% on rates," predicted one banker. "That's no longer the magic floor." More»

Meanwhile, Italy announces austerity measures

(NEWSER) - Nicolas Sarkozy and Angela Merkel sat down for a working lunch in Paris today, and emerged with a joint statement calling for big changes to the euro zone’s governing treaties aimed at preventing future crises. Their vision includes a new European monetary fund, zone-wide deficit limits, and automatic penalties for any country that exceeds those limits, the New York Times reports. “We want to make sure that the imbalances that led to the situation in the euro zone today cannot happen again,” Sarkozy said. More»