Despite denials from Brussels, EU taxpayers are to foot the bill for hefty and legally controversial pension supplements for many members of the European parliament. Their pension fund has run up a loss of €120 million ($156 million) as a result of risky share investments, according to an internal memo of the secretary-general of the European Parliament.

The memo adds that, beginning in 2010, the retirement fund "will no longer have enough liquidity to meet its payment obligations.

This week, the parliament is scheduled to quietly agree upon a solution for how to safeguard the pension entitlements of around 1,000 active or retired parliamentarians.

As Washington tries to rebuild its strained relationships in Latin America, China is stepping in vigorously, offering countries across the region large amounts of money while they struggle with sharply slowing economies, a plunge in commodity prices and restricted access to credit.

In recent weeks, China has been negotiating deals to double a development fund in Venezuela to $12 billion, lend Ecuador at least $1 billion to build a hydroelectric plant, provide Argentina with access to more than $10 billion in Chinese currency and lend Brazil’s national oil company $10 billion. The deals largely focus on China locking in natural resources like oil for years to come.

China’s trade with Latin America has grown quickly this decade, making it the region’s second largest trading partner after the United States. But the size and scope of these loans point to a deeper engagement with Latin America at a time when the Obama administration is starting to address the erosion of Washington’s influence in the hemisphere.

All year, despite its own economic spasms, Moscow has earmarked great chunks of cash for its impoverished post-Soviet neighbors, seeking to lock in their loyalty over the long term and curtail Western influence in the region.

But the neighbors seem to have other ideas. Belarus — which was promised $2 billion in Russian aid — is in open rebellion against the Kremlin, flaunting its preference for Europe while also collecting money from the International Monetary Fund. Uzbekistan joined Belarus in refusing to sign an agreement on the Collective Rapid Reaction Forces, an idea Moscow sees as an eventual counterweight to NATO.

Belarus — which was promised $2 billion in Russian aid — is in open rebellion against the Kremlin, flaunting its preference for Europe while also collecting money from the International Monetary Fund. Uzbekistan joined Belarus in refusing to sign an agreement on the Collective Rapid Reaction Forces, an idea Moscow sees as an eventual counterweight to NATO.

US President Barack Obama has lifted restrictions on federal funding for research on new stem cell lines. Mr Obama signed an executive order in a major reversal of US policy, pledging to "vigorously support" new research.

Analysts say Mr Obama's decision could also lead Congress to overturn a ban on spending tax dollars to create embryos.

China's central bank has called for a new global reserve currency run by the International Monetary Fund to replace the US dollar.

China's central bank has called for a new global reserve currency run by the International Monetary Fund to replace the US dollar. Central bank governor Zhou Xiaochuan did not explicitly mention the dollar, but said the crisis showed the dangers of relying on one currency. With the world's largest currency reserves of $2tn, China is the biggest holder of dollar assets. Its leaders have often complained about the dollar's volatility.

Mr Zhou said the dollar could eventually be replaced as the world's main reserve currency by the Special Drawing Right (SDR), which was created as a unit of account by the IMF in 1969. "The role of the SDR has not been put into full play, due to limitations on its allocation and the scope of its uses," he said. "However, it serves as the light in the tunnel for the reform of the international monetary system."

The White House meetings with Pakistani President Asif Ali Zardari and Afghan President Hamid Karzai are likely to be cagey affairs -- both visitors have been heavily criticized by Obama's administration and are also wary of each other. Equally, Obama's new strategy for defeating al Qaeda and Taliban militants operating in Afghanistan and Pakistan has not been universally welcomed in either country.

As it seeks reliable allies in the region, the United States, which has funneled $10 billion in aid to Islamabad over the past eight years, can sometimes give conflicting signals. At times it has praised Pakistan's military and at others accused it and its powerful spy agency of helping al Qaeda.

"Some have raised concern that elements within the Pakistani military and intelligence services may be sympathetic to militant groups, leading to caution on our part," Obama's undersecretary of defense for policy, Michele Flournoy, told the House of Representatives Armed Services Committee last week.

It was only a few years ago that Husain Haqqani, a former Pakistani diplomat who recently became ambassador to Washington, wrote a brilliant book arguing that the Pakistani government—despite public and private claims to the contrary—continued "to make a distinction between 'terrorists' … and 'freedom fighters' (the officially preferred label … for Kashmiri militants)." He added: "The Musharraf government also remains tolerant of remnants of Afghanistan's Taliban regime, hoping to use them in resuscitating Pakistan's influence in Afghanistan." The Pakistani military's world view—that it is surrounded by dangers and needs to be active in destabilizing its neighbors— remains central to Pakistan's basic strategy.

While President Musharraf broke with the overt and large-scale support that the military provides to the militant groups, and there have continued to be some moves against some jihadists, there is no evidence of a campaign to rid Pakistan of these groups. The leaders of the Afghan Taliban, headed up by Mullah Mohammed Omar, still work actively out of Quetta. The Army has never launched serious campaigns against the main Taliban-allied groups led by Gulbuddin Hekmatyar or Jalaluddin Haqqani, both of whose networks are active in Pakistan. The group responsible for the Mumbai attacks, Lashkar-e-Taiba, has evaded any punishment, morphing in name and form but still operating in plain sight in Lahore. Even now, after allowing the Taliban to get within 60 miles of the capital, the Pakistani military has deployed only a few thousand troops to confront them, leaving the bulk of its million-man Army in the east, presumably in case India suddenly invades.

The rise of Islamic militants in Pakistan is not, Ambassador Haqqani writes, "the inadvertent outcome of some governments." It is "rooted in history and [is] a consistent policy of the Pakistani state." The author describes how, from its early years, the Pakistani military developed "a strategic commitment to jihadi ideology." It used Islam to mobilize the country and Army in every conflict with India. A textbook case was the 1965 war, when Pakistan's state-controlled media "generated a frenzy of jihad," complete with stories of heroic suicide missions, martyrdom and divine help.

Iran's interior minister on Wednesday accused U.S. spy agency the CIA of helping to fund "rioters," stepping up accusations of Western involvement in street unrest following the country's disputed election. "Britain, America and the Zionist regime (Israel) were behind the recent unrest in Tehran," Interior Minister Sadeq Mahsouli was quoted as saying by the semi-official Fars News Agency. "Many of the rioters were in contact with America, CIA and the MKO and are being fed by their financial resources," he said. The MKO (Mujahideen Khalq Organization) is an exiled Iranian opposition group.

As minister of the Revolutionary Guards in the 1980s, Rafiqdoost played a key role in sponsoring Hezbollah in Lebanon--which kidnapped foreigners, hijacked airplanes, set off car bombs, trafficked in heroin and pioneered the use of suicide bombers. According to Gregory Sullivan, spokesman for the Near Eastern Affairs Bureau at the U.S. State Department, the foundations are the perfect vehicles to carry out Iran's shadow foreign policy. (One of them offered the $2.8 million bounty to anyone who carried out Ayatollah Khomeini's fatwa to kill British author Salman Rushdie.)

The largest "charity" (at least in terms of real estate holdings) is the centuries-old Razavi Foundation, charged with caring for Iran's most revered shrine--the tomb of Reza, the Eighth Shiite Imam, in the northern city of Mashhad. It is run by one of Iran's leading hard-line mullahs, Ayatollah Vaez-Tabasi, who prefers to stay out of the public eye but emerges occasionally to urge death to apostates and other opponents of the clerical regime.

The Razavi Foundation owns vast tracts of urban real estate all across Iran, as well as hotels, factories, farms and quarries. Its assets are impossible to value with any precision, since the foundation has never released an inventory of its holdings, but Iranian economists speak of a net asset value of $15 billion or more. The foundation also receives generous contributions from the millions of pilgrims who visit the Mashhad shrine each year.

In recent weeks, Chu - who was appointed energy secretary by Barack Obama in December - has revealed that he is no longer willing to block the construction of new coal-powered electricity plants in the US, despite widespread opposition from green groups and having initially said that he would not permit their construction.

In addition, Chu has called for a slowdown in the development of hydrogen-powered vehicles in the US and slashed funding for new projects by 60%. "We asked ourselves: is it likely in the next 10 or 15, or even 20, years that we will convert to a hydrogen car economy?" Chu explained. "The answer, we felt, was no."

On top of these controversial pronouncements, Chu has eliminated funding for a project to build a nuclear waste store at Yucca Mountain in Nevada. Instead of storage, he has backed the construction of fast neutron reactors that could burn long-lived waste. Such a move, which would require a major expansion of the US nuclear industry, has horrified ecology groups.

The ailing carmaker General Motors has proposed handing a controlling stake of more than 50% to the US government as it struggles to reach a deal with its lenders to avert imminent bankruptcy.The nationalisation, in effect, of the biggest US motor manufacturer would be part of a huge debt-for-equity swap as GM tries to shed $44bn (£30bn) of $62bn in crippling liabilities owed to the government, trade unions and bondholders.

But the plan was condemned last night as "neither reasonable nor adequate", by bondholders who would get only 10% of the company, forcing them to write off billions of dollars. Existing shareholders would be left with only 1%.

With its future on a knife-edge, GM delivered a blunt warning that unless its creditors accepted the plan, it would declare bankruptcy and leave the courts to carve up the company. Fritz Henderson, the chief executive, told a press conference at the company's headquarters: "If this cannot be accomplished out of court, we'll go into court and restructure GM under bankruptcy if it's necessary."

In France and Germany on Friday, US President Barack Obama said he wanted to renew the trans-Atlantic partnership. Part of that alliance, though, involves more European troops for Afghanistan, he said. Unexpectedly, Obama called for a world without nuclear weapons.

"In America, there's a failure to appreciate Europe's leading role in the world." He went on to say that "there have been times where America has shown arrogance and been dismissive, even derisive."

The US president was coming from the G-20 summit, held on Wednesday and Thursday in London. At that meeting, the world's richest nations agreed to make $1 trillion available to the developing world through the World Bank and the International Monetary fund in addition to tripling the money available to the IMF.