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He was fined and appealed the ruling. The two were in court Wednesday for that appeal when Alex A. attacked, pulling out a knife and stabbing Sherbini 18 times. He also stabbed her husband three times and attacked another person.

According to Arab media, police officers tried to intervene to end the fight, and a number of shots were fired. One hit the husband, who fell unconscious and is currently in intensive care in the hospital of Dresden University.

Hundreds attended Sherbini's funeral in Alexandria, Egypt, her hometown, among them government officials, including Egyptian Manpower Minister Aisha Abdel Hadi and Telecommunications Minister Tariq Kamel, Egyptian media reported.

If a North Korea link is found, it would mark a new turn in Pyongyang's attempts to lash out at the U.S. North Korea has been building up its capability for cyberattacks in the past couple of years, computer security specialists said. North Korea recently increased the number of people in a cyber-warfare unit, South Korea's Yonhap news agency reported last month.

U.S. government Web sites attacked included those of the Defense Department, National Security Agency, Treasury Department, Secret Service, State Department, Federal Trade Commission and Federal Aviation Administration, according to the cyber-security unit of VeriSign Inc., a computer-security company, and others familiar with the attacks. The attacks appear to have occurred roughly from Saturday to Tuesday.

Private sites attacked, according to a cyber-security specialist who has been tracking the incidents, included those run by the New York Stock Exchange, Nasdaq, the Washington Post, Amazon.com and MarketWatch.

Most U.S. federal Web sites appeared to be running properly Wednesday. In South Korea, several government sites were down late Tuesday and early Wednesday but many were back to normal by Wednesday afternoon. "There is a connection between what is going on here in the states and what is going on in [South] Korea," said Richard Howard, director of intelligence at VeriSign's iDefense cyber-security unit.

North Korea turned more antagonistic after the illness of dictator Kim Jong Il last August and September. The country had done little to prepare for a successor, and Mr. Kim's illness triggered an internal shuffle that apparently raised the influence of hard-line military figures.

At the White House, spokesman Nicholas Shapiro said the attacks over the weekend "had absolutely no effect on the White House's day-to-day operations." The only effect, he said, was that some Internet users in Asia may not have been able to access the White House's Web site for a time.

President Barack Obama has made bolstering cyber-security a priority. He said in May he would create a new White House cyber-security post, though it hasn't yet been staffed. People familiar with the process say the White House has had difficulty finding someone to take the job.

Defense officials confirmed Pentagon networks were struck but said the intrusions were detected quickly and did no real damage. Adm. Mike Mullen, the nation's top military officer, said Pentagon networks are under near-constant attack. "I grow increasingly concerned about the cyber-world and the attacks," he said.

James Lewis, a cyber-security specialist at the Center for Strategic and International Studies, said of the attack, "It's really a test of which U.S. agencies are ready and which aren't."

The New York Stock Exchange's parent company, NYSE Euronext, announced at 12:35 p.m. Wednesday that its Web site, but not its trading systems, had been targeted. Exchange officials weren't aware of the attack until notified by the government on Tuesday, said a person familiar with the events. An NYSE spokesman said the exchange's systems detected zero impact either on the Web site or on the separate trading operations. An official of Nasdaq said there wasn't any impact on its business.

Those responsible used a method similar to attacks in recent years on the governments of Estonia and Georgia, called a "distributed denial of service" attack. It is a maneuver in which many computers act in concert to overwhelm Web sites.

The cyberattacks came as Washington's point man on North Korea sanctions, Ambassador Philip Goldberg, concluded a weeklong trip to China and Malaysia aimed at tightening the financial screws on Pyongyang. Last week, the Obama administration announced sanctions on two North Korea-linked arms companies. The U.S. Treasury last month listed 17 North Korean banks and businesses that it is seeking to constrict financially.

In 2007, Russia agreed to supply Syria with eight MiG-31 fighters, known in the West by NATO codename Foxhound, for about $400-$500 million, the paper said. Kommersant, a commerce-oriented newspaper published in Russia, quoted an unidentified person close to Russia's state arms exporter as saying that Moscow had halted the contract due to pressure from Israel.

It was apparently here, just under an hour's drive from Szymany airport, that Sheikh Mohammed was tortured, exactly 183 times with waterboarding -- an interrogation technique that simulates the sensation of drowning -- in March, 2003 alone. That averages out to eight times a day. And all of this happened right here in Europe.

What the CIA did back then to prisoners in the Polish military airbase of Stare Kiejkuty, north of Szymany, had been authorized by the president. According to witnesses, Stare Kiejkuty housed a secret CIA prison for "high value detainees" -- for the most prominent prisoners of the war on terror.

There is now no doubt that the Gulfstream N379P landed at least five times at Szymany between February and July, 2003. Flight routes were manipulated and falsified for this purpose and, with the knowledge of the Polish government, the European aviation safety agency Eurocontrol was deliberately deceived.

Stare Kiejkuty military base, known as a training camp for Polish intelligence agents.

Sheikh Mohammed said that they cut the clothes from his body, photographed him naked and threw him in a three-by-four-meter (10 x 13 ft) cell with wooden walls. That was when the hardest phase of the interrogating began, he claims. According to Sheikh Mohammed, one of his interrogators told him that they had received the green light from Washington to give him a "hard time":

"They never used the word 'torture' and never referred to 'physical pressure,' only to 'a hard time.' I was never threatened with death, in fact I was told that they would not allow me to die, but that I would be brought to the 'verge of death and back again.'"

He says he was questioned roughly eight hours a day. He spent the first month naked and standing, with his hands chained to the ceiling of the cell, even at night.

the al-Qaida operative described how he was strapped to a special bed and submitted to waterboarding: "Cold water from a bottle that had been kept in a fridge was then poured onto the cloth by one of the guards so that I could not breathe. This obviously could only be done for one or two minutes at a time. The cloth was then removed and the bed was put into a vertical position. The whole process was then repeated during about one hour. Injuries to my ankles and wrists also occurred during the waterboarding as I struggled in the panic of not being able to breathe."

Attacks like these -- or U.S. awareness of them -- appear to have escalated in the past six months, said one former official briefed on the matter.

while the spies were able to download sizable amounts of data related to the jet-fighter, they weren't able to access the most sensitive material, which is stored on computers not connected to the Internet.

Former U.S. officials say the attacks appear to have originated in China. However it can be extremely difficult to determine the true origin because it is easy to mask identities online.

A Pentagon report issued last month said that the Chinese military has made "steady progress" in developing online-warfare techniques. China hopes its computer skills can help it compensate for an underdeveloped military, the report said.

The Chinese Embassy said in a statement that China "opposes and forbids all forms of cyber crimes." It called the Pentagon's report "a product of the Cold War mentality" and said the allegations of cyber espionage are "intentionally fabricated to fan up China threat sensations."

The U.S. has no single government or military office responsible for cyber security. The Obama administration is likely to soon propose creating a senior White House computer-security post to coordinate policy and a new military command that would take the lead in protecting key computer networks from intrusions, according to senior officials.

The Bush administration planned to spend about $17 billion over several years on a new online-security initiative and the Obama administration has indicated it could expand on that.

The Joint Strike Fighter, also known as the F-35 Lightning II, is the costliest and most technically challenging weapons program the Pentagon has ever attempted. The plane, led by Lockheed Martin Corp.

Six current and former officials familiar with the matter confirmed that the fighter program had been repeatedly broken into. The Air Force has launched an investigation.

Foreign allies are helping develop the aircraft, which opens up other avenues of attack for spies online. At least one breach appears to have occurred in Turkey and another country that is a U.S. ally, according to people familiar with the matter.

Joint Strike Fighter test aircraft are already flying, and money to build the jet is included in the Pentagon's budget for this year and next.

Computer systems involved with the program appear to have been infiltrated at least as far back as 2007, according to people familiar with the matter. Evidence of penetrations continued to be discovered at least into 2008. The intruders appear to have been interested in data about the design of the plane, its performance statistics and its electronic systems, former officials said.

The intruders compromised the system responsible for diagnosing a plane's maintenance problems during flight, according to officials familiar with the matter. However, the plane's most vital systems -- such as flight controls and sensors -- are physically isolated from the publicly accessible Internet, they said.

The intruders entered through vulnerabilities in the networks of two or three contractors helping to build the high-tech fighter jet, according to people who have been briefed on the matter. Lockheed Martin is the lead contractor on the program, and Northrop Grumman Corp. and BAE Systems PLC also play major roles in its development.

The spies inserted technology that encrypts the data as it's being stolen; as a result, investigators can't tell exactly what data has been taken. A former Pentagon official said the military carried out a thorough cleanup.

Investigators traced the penetrations back with a "high level of certainty" to known Chinese Internet protocol, or IP, addresses and digital fingerprints that had been used for attacks in the past, said a person briefed on the matter.

As for the intrusion into the Air Force's air-traffic control systems, three current and former officials familiar with the incident said it occurred in recent months. It alarmed U.S. national security officials, particularly at the National Security Agency, because the access the spies gained could have allowed them to interfere with the system, said one former official. The danger is that intruders might find weaknesses that could be exploited to confuse or damage U.S. military craft.

In his speech in Austin, Mr. Brenner, the U.S. counterintelligence chief, issued a veiled warning about threats to air traffic in the context of Chinese infiltration of U.S. networks. He spoke of his concerns about the vulnerability of U.S. air traffic control systems to cyber infiltration, adding "our networks are being mapped." He went on to warn of a potential situation where "a fighter pilot can't trust his radar."

The Pentagon plans do not involve the Department of Homeland Security, which has responsibility for securing the government's non-military computer domain.

The Wall Street Journal first reported on the plans last night.

News of the proposal comes on the heels of a 60-day White House review of cybersecurity efforts.

Although all of the deaths so far have been in Mexico, the flu is spreading in the United States and suspected cases have been detected elsewhere: Eleven confirmed infections in the US In addition, eight suspected cases are being investigated at a New York City high school where about 200 students fell mildly ill with flu-like symptoms Ten New Zealand students are among a group which travelled to Mexico have tested positive for influenza A - making it "likely", though not definite, that they are infected with swine flu, said Health Minister Tony Ryall In France, a top health official told Le Parisien newspaper there were unconfirmed suspicions that two individuals who had just returned from Mexico may be carrying the virus But a UK hospital conducting tests for swine flu on a British Airways cabin crew member said the tests proved negative.

Public buildings have been closed and hundreds of public events suspended.

Schools in and around Mexico City have been closed until 6 May, and some 70% of bars and restaurants in the capital have been temporarily closed.

People are being strongly urged to avoid shaking hands, and the US embassy has advised visitors to the country to keep at least six feet (1.8m) from other people. Mexico's Health Secretary, Jose Cordova, said a total of 1,324 people had been admitted to hospital with suspected symptoms since 13 April and were being tested for the virus.

Mexico's President Felipe Calderon has announced emergency measures to deal with the situation. They include powers to isolate individuals suspected of having the virus without fear of legal repercussions.

n European capitals elaborate plans are already being hatched to try to avoid being spotted shaking hands or being photographed with the leader the US state department has dubbed Europe's last dictator and whose ubiquitous security service still proudly calls itself the KGB.

The policy being launched in Prague is an attempt to use trade, travel and aid to forge greater integration between the EU and the former Soviet bloc states, while at the same time aiming to fob off the clamour from countries such as Ukraine and Georgia for full EU membership and seeking to counter Russian influence in what the Kremlin calls its "near abroad".

Lukashenko and dozens of regime cronies were placed on an EU travel blacklist for rigging elections in 2006, but the entry ban was suspended for the second time last month, meaning that he is free to take up the invitation to Prague.

The Dutch and the Swedes have been the biggest opponents of inviting Lukashenko, while the Germans, Poles and Italians have been strongest in arguing for engaging Minsk. Lukashenko will score a new coup later this month by exploiting the lifting of the travel ban and going to Rome, where he is to be received by the Pope.

"My understanding is he's not going to come to the summit," said the Brussels diplomat, reflecting the widespread wish that Lukashenko stay away to avoid embarrassment for all."Let's hope the question will not arise. We don't like what we see in Belarus," said the ambassador. Another west European diplomat did not rule out some boycotts of the Prague summit if the Belarus leader confirms his attendance.

Palestinian human rights groups in Gaza also found 49 Palestinians were shot in the legs in punishment attacks and around 73 were severely beaten, suffering broken arms and legs, from the start of the war in late December until the end of January. Some of the attackers were not identified, but many appeared to be from Hamas.

During the Gaza war 18 Palestinians, many suspected of collaborating with Israel, were killed. Most had escaped from Gaza's main prison after it was bombed by Israeli aircraft at the start of the war. A further 14, at least four of whom were in jail at the time, have been killed since the end of the war.

The accounts corroborate witness testimony reported by the Guardian at the time and appear to show Hamas took advantage of the chaos of the war to exert control over its political and security rivals in Gaza. Other Palestinians have also spoken of a campaign of intimidation against secular and moderate groups in Gaza.

Human Rights Watch said Fatah, the rival, western-supported Palestinian faction that controls the West Bank, had also used "repressive measures" against its Hamas opponents. It said Palestinian human rights groups recorded 31 complaints of torture by the Fatah-led security forces, as well as one death in custody and the arbitrary arrest of two Palestinian television journalists.

"Western governments that support and finance the Fatah authorities in the West Bank have remained publicly silent about the arbitrary arrests and torture against Hamas members and others," said Stork.

Human Rights Watch has also accused Israel of violating international law during the Gaza war, including by what it said was indiscriminate use of weapons such as white phosphorus in densely populated civilian areas.

Christofias is secretary-general of AKEL, a Marxist-Leninist party, and is the EU's first communist head of state. He has good personal relations with the leader of the unrecognised "Turkish Republic of Northern Cyprus" Mehmet Ali Talat, who is also a left-wing leader. 

The CTP, which bore the brunt of public discontent over a faltering economy and continued international isolation of the breakaway territory, took 29.25% of the vote. 

As Christofias recently told EurActiv in an interview, his message to the international community is to advise Turkey to be constructive and to refrain from meddling in the talks. 

The UBP advocates an outright two-state settlement on Cyprus, at odds with the federal model now being discussed by Talat and Greek Cypriot leader, President Demetris Christofias. 

The Greek Cypriots represent Cyprus in the European Union and say they will block Turkey's admission to the EU as long as the island remains divided. Turkey is currently in entry negotiations, but there is strong resistance to Ankara's entry among several member-states.

Talat will retain his leadership of the territory, but his room for manoeuvre is likely to be limited by a parliament now dominated by the UBP.  The basis of the current talks is reuniting the island as a bizonal federation. The UBP says it wants a rethink of the process. 

"We will continue to support negotiations," said UBP leader Dervis Eroglu. "No-one should say we are against them. We will put forward our views and discuss them within the framework of Turkey's foreign policy on Cyprus." 

In an earlier interview with Turkey's Zaman newspaper, Eroglu was quoted as saying: "Everything will be easier if it is universally accepted that we [Turkish Cypriots] are a nation and that we have a state." 

Greek Cypriots refuse to discuss Turkish Cypriot sovereignty, and say a deal should see the evolution of the internationally recognised Republic of Cyprus into a federation, rather than a loose association of two states.  Greek Cypriots issued a chilly response to the election result. "We will have bigger problems, that is my prediction," Christofias said, referring to the election. 

Analysts said Turkey, which supported a UN peace blueprint for Cyprus rejected by Greek Cypriots in 2004, would not want a disruption of settlement talks.  "Turkey is going to continue on its EU path and wants [Northern Cyprus] to do the same," said Ahmet Sozen, a lecturer in international relations at the Eastern Mediterranean University. "Turkey has sent a message to all political players in northern Cyprus that a no-solution policy is not a policy any more." 

The United Nations envoy for Cyprus, Alexander Downer, said last week the negotiations had been making "steady progress". 

Dutch MEP Joost Lagendijk  (Greens/European Free Alliance), who chairs the European Parliament's delegation to the EU-Turkey joint parliamentary committee, said EU member states have the ability to do "behind-the-scenes" work to make sure that there is a solution on the divided island of Cyprus as soon as possible, but that some of them are not willing to do this.  "Some countries like to hide behind the Cyprus problem - for example, the French government and the Austrians. The majority of the EU states who are in favour of Turkish accession should make it clear within the EU, to the French, to the Austrians and, of course, to the Cypriots, that it is in the EU's interest to have this issue solved," he said in an interview published by the Turkish daily Zaman. 

Already, schools across Mexico have closed, public gatherings are restricted and archaeological sites have been placed off-limits.

Meanwhile in Mexico, President Felipe Calderon has announced the partial suspension of non-essential work and services from 1 to 5 May - a holiday period there. In a TV address, he urged people to stay in with their families - saying there was "no place as safe as your own home".

Ms Chan stressed on Wednesday that there was no danger from eating properly cooked pork. She advised hygiene measures such as hand-washing to prevent infection and said it was important "to maintain a level of calm".

Mexico is already being hit hard by the global economic slowdown, and the country's finance minister says swine flu could cut a further half-percent of GDP.

Officials have put the number of suspected deaths from swine flu in Mexico at 168, although just eight deaths have been confirmed, with 26 infections positively tested.

In Europe, the director-general of health and consumer protection, Robert Madelin, said the continent was well prepared but nonetheless deaths from the disease were expected. "It is not a question of whether people will die, but more a question of how many. Will it be hundreds, thousands or tens of thousands?", he said, speaking to Reuters news agency.

Spain has seen the first case of a person contracting swine flu without having travelled there.

After Mexico, the US has recorded the next highest number of confirmed cases, with 91 - and the first death of swine flu outside Mexico, after a visiting Mexican child died in Texas.

Despite the apparent differences between the presidencies of Putin and his handpicked successor, there are few signs of any real disagreement between the two men, personally or politically. "Medvedev came from Putin's state apparatus—he is a reformer, not a revolutionary," says Alexei Makarkin, deputy director of the Center for Political Technologies, a Moscow think tank. "Like Russian historical reformers, he is part of the old machine." Some people say the very idea of Medvedev challenging Putin is no more than wishful thinking. "All we see is just a change of style," says Alexei Venediktov, the director of Echo Moskvy, Russia's leading liberal radio station. "The president does not make a single decision without consulting with the prime minister first."

Putin loyalists say much the same. "Russia's state institutions, created by Putin, are stable and powerful," says Mikhail Leontyev, anchor of the prominent political talk show "Odnako." "There are not two branches of power, only one." He points out that Medvedev has replaced only about one sixth of Putin's appointees and holdovers with his own people.

The president has decreed that all senior bureaucrats must publicly disclose their incomes and business interests and those of their immediate families. But his war on corruption in high places is by definition an attack on some of the very men he has relied on as his chief power base. "Russia's bureaucrats just laugh at Medvedev's income-declaration law," says Gennady Gudkov, a former KGB general on the Duma's Security Committee. "This is not a real struggle, but an imitation of struggle. There is no one to check these Potemkin declarations."

The role played by psychologists in adapting SERE methods for interrogation has been described in books and news articles, including some in The Washington Post. Author Jane Mayer and journalist Katherine Eban separately identified as key figures James Mitchell and Bruce Jessen, two psychologists in Washington state who worked as CIA contractors after 2001 and had extensive experience in SERE training.

The CIA psychologists had personal experience with SERE and helped convince CIA officials that harsh tactics would coerce confessions from Abu Zubaida without inflicting permanent harm. Waterboarding was touted as particularly useful because it was "reported to be almost 100 percent effective in producing cooperation," the memo said.

The agency then used a psychological assessment of Abu Zubaida to find his vulnerable points. One of them, it turns out, was a severe aversion to bugs. "He appears to have a fear of insects," states the memo, which describes a plan to place a caterpillar or similar creature inside a tiny wooden crate in which Abu Zubaida was confined. CIA officials say the plan was never carried out.

Former intelligence officials contend that Abu Zubaida was found to have played a less important role in al-Qaeda than initially believed and that under harsh interrogation he provided little useful information about the organization's plans.

This means that, unlike in Britain or the US, the election will almost certainly not be dominated by a single personality. In an opinion poll this year for the Centre for the Study of Developing Societies, a Delhi thinktank, no leader enjoyed 25% approval as a possible prime minister.

The most popular leader is probably Sonia Gandhi, president of the Congress party. Gandhi, 63, who was born in Italy, has proved an astute politician, winning the last election against the odds but refusing to become prime minister, knowing her foreign birth would become too hot an issue. Instead she appointed Manmohan Singh as prime minister, leaving him to formulate policy while she handled the complex deal-making involved in coalition building. She also brought in her son Rahul, 38, who has begun to rebuild the party. Her daughter Priyanka, 37, is a star campaigner who draws huge crowds but so far has not contested an election.

The Congress party, say pundits, is the favourite because it is in power and can point to tangible achievements. For example, it pushed through big pay rises for 4.5 million government employees this year, engendering goodwill in urban areas.

The elite applauded Singh for winning a knife-edge parliamentary vote last year in which he secured a nuclear deal with the US that allowed India to keep its atomic weapons and still be sold nuclear reactors.

Most important perhaps in terms of votes, the Congress coalition also set up the first social security scheme in India, guaranteeing 100 days of work to poor households in the countryside. Although the cost is estimated at 400bn rupees (£5.4bn) this year, it should bring in votes among India's 600 million agricultural workforce.

In the opposite camp is the Bharatiya Janata party, led by Lal Krishna Advani, 81. The party's pollsters say it should win votes based on three main issues: terror attacks, the dynastic politics of the Congress party and the appeasement of minorities, especially Muslims.

These three issues were fused in the uproar over speeches by Varun Gandhi, 29, the great grandson of India's first prime minister, Jawaharlal Nehru. Although a Gandhi, he has become a mascot for the BJP. In March the budding poet told cheering crowds in a marginal constituency that he would cut the "head of Muslims" (sic) and if anyone raised a finger against Hindus he would "cut that hand".

Another powerful line of attack is that India's economic growth, which has been at 8% for five years, never reached the ordinary man.

However, the real power lies with the regional parties. Congress and the BJP square up in only seven out of 28 states. In almost every other state, the contest boils down to one of the national parties facing a local politician.

The most important of these is likely to be Kumari Mayawati. Her dedicated cadre of untouchable workers and her wooing of the upper castes created an upset in 2007 when her party swept to power in India's most populous state, Uttar Pradesh. Her policies are claimed to be about social justice but in reality are designed to capture jobs through quotas for her supporters. Mayawati's victory in the northern state, which has 80 seats and is considered a bellwether of public opinion, was a political earthquake.

Analysts say Mayawati's significance is the possible emergence of a third national party. If the regional parties coalesce around her, said Mahesh Rangarajan, a political commentator, she could be the "fulcrum of a new power arrangement". If Mayawati gets 40 or more seats, "she is possibly prime minister", he added.

I agree that our reputation with the American government and some European governments is not positive. But that's their problem. All peoples are fed up with the American government.

The Afghan government should have been given more responsibility in the last seven years. President Hamid Karzai said to me once: They don't allow us to do our work.

Are you seriously insisting on an American withdrawal from the region? Ahmadinejad: One has to have a plan, of course. A withdrawal can only be one of several measures. It must be accompanied by other, simultaneous actions, such as strengthening regional government. Do you know that narcotics production has grown fivefold under the NATO command in Afghanistan?

We have lost more than 3,300 people in the fight against drug smuggling. Our police force made these sacrifices while guarding our 1,000-kilometer border with Afghanistan.

Ahmadinejad: Look, more than $250 billion (€190 billion) has been spent on the military campaign in Afghanistan to date. With a population of 30 million, that comes to more than $8,000 a person, or close to $42,000 for an average family of five. Factories and roads could have been built, universities established and fields cultivated for the Afghan people. If that had happened, would there have been any room left for terrorists? One has to address the root of the problem, not proceed against its branches. The solution for Afghanistan is not military, but humanitarian.

Naturally, we cannot expect to see problems that have arisen over more than half a century resolved in only a few days. We are neither obstinate nor gullible. We are realists. The important thing is the determination to bring about improvements. If you change the atmosphere, solutions can be found.

the Afghan people have close historical ties to Iran. More than 3 million Afghan citizens live in our country

Ahmadinejad: We believe that the Iraqi people are capable of providing for their own security. The Iraqi people have a civilization that goes back more than 1,000 years. We will support whatever the Iraqis decide to do and which form of government they choose. A sovereign, united and strong Iraq is beneficial for everyone. We would welcome that.

Ahmadinejad: We pay no attention to the reports of American intelligence services.

While most international attention is focussed on Iran's uranium enrichment activities, the inauguration of the new plant in Isfahan shifts attention to a parallel programme that also has outside observers worried, BBC diplomatic correspondent Jonathan Marcus reports. Once it is fully operational it could produce sufficient plutonium for two nuclear weapons a year, should Iran choose to separate the plutonium from the reactor's spent fuel, he says.

The newly-opened plant will produce pellets of uranium oxide that could be used to fuel a heavy-water reactor in Arak expected to be completed some time between 2011 and 2013.

It signals Iran has reached the final stage in the nuclear fuel cycle, analysts say.

"The Iranian nation has from the beginning been after logic and negotiations, but negotiations based on justice and complete respect for rights and regulations," Mr Ahmadinejad was quoted as saying on Thursday. "One-sided negotiations, conditional negotiations, negotiations in an atmosphere of threat are not something that any free person would accept," he said.

Iran needs to "convince us all of the exclusively peaceful character of its nuclear programme", Russian Foreign Minister Sergei Lavrov said. On Wednesday, the five permanent UN Security Council members and Germany said they would ask EU foreign policy chief Javier Solana to approach Iran with the talks offer.

Signalling a policy shift, US Secretary of State Hillary Clinton said the US would be a "full participant" in talks. "Obviously we believe that pursuing very careful engagement on a range of issues that affect our interests and the interests of the world with Iran makes senses," she said. "There is nothing more important than trying to convince Iran to cease its efforts to obtain a nuclear weapon."

He characterizes Greece's banking sector as being "basically sound" and "in considerably better condition" than those in other EU countries and in the United States. He notes that Greece was the first EU country to provide a government guarantee for personal savings up to a total of €100,000.

now the European Commission has instigated disciplinary proceedings, because Athens has exceeded the euro zone budget deficit limit of 3 percent for the third time in a row. The results of audits carried out by Brussels look very different from the information in Livadas's glossy brochures. In EU statistics, Greek government debt is listed as amounting to 94 percent of the country's gross domestic product. Italy is the only other euro zone country which has a higher level of government debt. Greece also has the lowest credit rating of all the euro zone countries. It has to finance its government debt under terms which are worse than for any other euro zone country, with the exception of Malta.

Educated young people from the middle class have little prospect of finding employment, despite being well qualified, and are forced to take casual jobs to make ends meet. As a result, many young Greeks are forced to live with their parents until they are well past the age of 30. The anger of the "€700 generation" -- as the young people are known -- over their situation exploded last December in weeks of rioting throughout the country.

Georgios Provopoulos, the governor of the Bank of Greece, the nation's central bank, warned his countrymen against "self-satisfaction" and spoke of a looming danger of national bankruptcy. And Greece has still to feel the full effects of the global recession.

"The negative factors you see here are all leftovers from the past," says one EU diplomat, adding that most of them are homegrown. Economic experts are anxiously waiting to see what's going to happen this summer. They fear there could be a decline in the tourism sector, one of the most important pillars of growth in the Greek economy, accounting for 17 percent of gross domestic product. The volume of tourist bookings from the United States is reported to have dropped by up to 50 percent. The number of British vacationers, some 3 million annually in the past, alongside 2.3 million Germans, is expected to shrink by up to 30 percent.

The situation of banks that invested in Eastern Europe and in the Balkans is uncertain. Greek financial institutions invested billions of euros in bank takeovers or in setting up their own branches in Romania, Bulgaria, and Serbia. Given that the value of the national currencies in some of those countries has fallen dramatically, what were originally seen as attractive investments in developing economies could well turn out to be huge losses.

That's what the crisis looks like in Greece. "Nobody wants to see it, but everybody is afraid of it," says Kalliope Amyg, a young political scientist. "The country is dancing on a volcano."