As the new prime minister, Mr. Netanyahu has tried to strike a more conciliatory tone, promising to hold negotiations with the Palestinian Authority toward a permanent accord. But he has also stopped short of endorsing the two-state solution, putting the new government at odds with the United States and the European Union.

Tony Blair, the special envoy of the so-called quartet of Middle East peacemakers, which consists of the United States, the European Union, the United Nations and Russia, said Wednesday that the peace process was in “very great jeopardy.”

He once advocated bombing the Aswan dam in the event of a war with Egypt, and last year he suggested that Egypt’s president should “go to hell” if he did not want to visit Israel.

Often contradictory and contrary in his positions, Mr. Lieberman, a resident of a Jewish settlement in the West Bank, has said that he advocates the creation of a viable Palestinian state. Yet in January 2008 he pulled his party out of the last governing coalition, led by Ehud Olmert and the centrist Kadima Party, in protest against the Annapolis-inspired talks.

Mr. Lieberman said on Wednesday that instead of Annapolis, Israel was committed to the “road map,” a 2003 American-backed performance-based peace plan that made the creation of a Palestinian state contingent on the Palestinians ending all violence and dismantling terrorist networks.Mr. Erekat, the Palestinian negotiator, noted that the plan also called for Israel to freeze all settlement construction. “I’d really like to know, are we going to see a settlement freeze?” Mr. Erekat said.

Stiglitz: The banks that survived 80 years ago continued to lend money. Today many banks aren't lending money anymore, above all the large investment banks. This will deepen the crisis.

SPIEGEL: The US government's emergency plan is supposed to prevent this, though. The banks receive money from the state so they can continue to give loans. Stiglitz: That's the idea, but it doesn't work. We're just throwing money at them and they pay billions of it out in bonuses and dividends. We taxpayers are being robbed for all intents and purposes in order to reduce the losses that some wealthy people bear. This has to be changed.

SPIEGEL: … and let them go bankrupt? Stiglitz: No, they have to be saved, because the consequences to the monetary system would be incalculable. But as a countermeasure, these institutions have to be nationalized, which even Alan Greenspan is now demanding. Then the government can close those business segments that have nothing to do with lending and make sure that the banks no longer organize esoteric stock deals that they themselves do not understand.

SPIEGEL: Washington sees it that way, too. In particular, it wants countries with strong exports, like Germany, to offer further economic stimulus packages. Do you think that's justified?

Absolutely. Export surpluses are counterproductive in times of economic crisis. They have to be reduced through economic stimulus programs, for example.

I propose that countries with a positive trade balance should stream part of their surplus to the International Monetary Fund. This can then stimulate the economy in developing countries or prevent the economy from collapsing in Eastern Europe.

The Americans have always been masters at changing a supposed regulation measure into further deregulation.

They want to focus on tougher regulation of the financial community. They want the summit to start re-writing the global rulebook on capitalism.

The intriguing thing is that the economic crisis and Brown's lining up with Obama, who has proclaimed his belief in the enduring "special relationship" with Britain, has revived the Franco-German alliance which used to dominate EU affairs and which had seemed to wither under Merkel and Sarkozy. She doesn't like his touchy-feely ways, he finds her incremental style of politics frustrating. They had drifted apart, but they are back sharing a political tent.

The big question on the fiscal stimulus front is: What will China do?

Brown's hope is that China, worried about the safety of its money invested in the U.S., will be ready to commit extra funds to fighting the world recession. But if he agrees to do so, President Hu Jintao will surely exact a price.

If China comes up with the money to help, it will need assurances that it will in the future enjoy greater power within such multilateral institutions as the IMF and the World Bank. The U.S. and Europe, who have dominated the G-8, now have little option too but to accept a new world order.

Whatever the outcome in London it is unlikely now that the G-8 alone will ever carry the same sway. And not surprisingly, Italian Prime Minister Silvio Berlusconi, who hosts this summer's G-8 in Sardinia, has proposed that its gathering should be immediately followed by one of the G-20.

Mr Netanyahu has said in the past that he sees no need for the Palestinians to have full separate statehood.

Analysts say the nuclear ambitions of Iran are likely to top the new cabinet's security agenda. In an apparent reference to that effect, Mr Netanyahu said the biggest threat to Israel and the world came from "the possibility of a radical regime armed with nuclear weapons". He further stressed the issue in comments given to a US magazine shortly before he was sworn in. "You don't want a messianic apocalyptic cult controlling atomic bombs," he said , in reference to Iranian President Mahmoud Ahmadinejad's belief in the imminent return of a Shia Islamic messianic figure, the Mehdi.

Mrs. Clinton also said the United States handed the Iranian delegation a letter requesting its intercession in the cases of two American citizens who are being held in Iran and another who is missing.

Some officials, including Mrs. Clinton, are skeptical that Iran’s leaders will ever embrace the American overtures. But reaching out, analysts say, keeps Iran on the defensive by demonstrating to the Europeans, the Russians and others that the United States is sincerely trying. And talking about Afghanistan is easier than confronting more divisive issues, especially Iran’s nuclear ambitions.

Mrs. Clinton also reacted warmly to remarks delivered by Mr. Akhondzadeh about what Iran would do to aid reconstruction in Afghanistan and to cooperate in regional efforts to crack down on the booming Afghan drug trade, which is spilling across the Iranian border.

“The fact that they came today, that they intervened today, is a promising sign that there will be future cooperation,” she said. “The Iranian representative set forth some very clear ideas that we will all be pursuing together.”

Iran cooperated with the United States on Afghanistan in the days after the 2001 terrorist attacks, and administration officials still view it as one of the most promising avenues for a reconciliation. Mrs. Clinton had pushed for Iran to be included on the invitation list for the United Nations-sponsored conference.

Iran, which was a no-show at the last Afghanistan conference, in Paris, did not send an official of Mrs. Clinton’s level, unlike most participants. But by sending Mr. Akhondzadeh, a former ambassador to the International Atomic Energy Agency, it was clearly not trying to avoid contact.

At the conference, Iran offered support and criticism of the Obama administration’s new policy on Afghanistan. It praised the focus on regional cooperation, but it argued that sending more foreign troops to Afghanistan would be ineffective.

Clinton had pressed for Iranian participation in The Hague conference, stressing the importance of finding a regional solution to the insurgency in Afghanistan and Pakistan, and western officials were encouraged that Akhundzadeh, a deputy foreign minister and former charge d'affaires in London, was sent by Tehran.

Akhundzadeh told ministers from more than 70 countries at the meeting: "Welcoming the proposals for joint co-operation offered by the countries contributing to Afghanistan, the Islamic Republic of Iran is fully prepared to participate in the projects aimed at combating drug trafficking and plans in line with developing and reconstructing Afghanistan."

He repeated Tehran's criticism of the Nato role in Afghanistan, but used relatively moderate language, saying: "The presence of foreign forces has not improved things and it seems that an increase in the number of foreign forces will prove ineffective, too."

Akhundzadeh added: "The military expenses need to be redirected to the training of the Afghan police and army and Afghanisation should lead the government building process" - an apparent nod towards the Obama administration's decision to send 4,000 more American military trainers.

Western officials expressed hopes that the west and Iran could return to the close co-operation over Afghanistan that took place in the months after the 9/11 attacks. Iranian officials even helped the US target the Taliban, but the relationship cooled after Bush's "axis of evil" speech.

"There is a meeting of minds on drugs, development issues and the [August Afghan] elections, though not on foreign troops, on which they made clear their objections."

Malloch Brown acknowledged that Iran had done some "bad things" in both Afghanistan and Iraq, supplying weaponry to insurgents that had been used against British soldiers.But he argued: "This is Iran supporting its proxies because of a lack of diplomatic partnership around Iraq and Afghanistan. If this is a rapprochement, whether it is overall rapprochement or just aimed at stabilising Afghanistan, it offers the prospect of this behaviour getting moderated and hopefully stopping."

The investigation was initiated by the Military Advocate General after reviewing claims made during a conference at the Rabin Military Preparation Center at which soldiers who participated in Operation Cast Lead were present.

The investigation concluded, based on evidence from the soldiers that participated in the conference, that the stories told were purposely exaggerated and hyperbolic in order to reinforce a point amongst the conference participants.

For example, one story made the claim that a soldier was allegedly given orders to fire at an elderly woman. However, upon investigation, it was found that the soldier witnessed no such thing, and was only repeating a rumor that he had heard from an unknown source.

In an unrelated investigation, it was found that in a similar incident, a woman, suspected of being a suicide bomber, approached IDF forces. After trying to convince her to cease all movement and to stop advancing toward the forces, they then opened fire.

This same soldier admitted that he had not witnessed the additional disrespectful and immoral incidents he had described during the conference and that they were based on rumors.

A claim made by a different soldier who had supposedly been ordered to open fire at a woman and two children was also determined to be an incident that he had not witnessed. After checking the claim, it was found that during this incident, a force had opened fire in a different direction—specifically, towards two suspicious men who were unrelated to the civilians in question.

During the aforementioned investigations, the participants at the Rabin Center explicitly stated that they had based their claims relating to the use of phosphorous munitions on what they had heard in the media and not on their own personal knowledge.

No evidence to justify further legal procedures was discovered in this context. When the case did not offer sufficient evidence, it was decided that the case should be closed.”

The Military Advocate General, Brig. Gen. Avichai Mendelblit, concluded the findings of the Military Police investigation: "It is unfortunate that none of the speakers at the conference was careful to be accurate in the depiction of his claims, and even more so that they chose to present various incidents of a severe nature, despite not personally witnessing and knowing much about them. It seems that it will be difficult to evaluate the damage done to the image and morals of the IDF and its soldiers, who had participated in Operation Cast Lead, in Israel and the world."

Another squad leader from the same brigade told of an incident where the company commander ordered that an elderly Palestinian woman be shot and killed; she was walking on a road about 100 meters from a house the company had commandeered. IDF investigators said the soldier who alleged that a comrade was given orders to shoot an elderly woman had not witnessed such an event and "was only repeating a rumour he had heard". They noted, on the other hand, that a woman who approached troops and was suspected of being a suicide bomber had been fired upon repeatedly to try to stop her advancing at them.

The new case has been portrayed as a key test for President Dmitry Medvedev’s calls to reform the Russian legal system and end “legal nihilism” in the country. Legal experts have said that the charges are difficult to fathom, partly because they suggest that the two men stole the entire oil output of Yukos for six whole years without anyone noticing at the time.

Later during proceedings, the defence team said they wanted to call Mr Putin to the witness stand. Mr Khodorkovsky had met Mr Putin when the latter was Russian president to discuss the oil sector, said the defence team: “This witness is essential for understanding circumstances that are relevant to this case,” the lawyer Vadim Kluvgant told the court. Other top officials that the defence wishes to question are Nikolai Patrushev, the former head of Russia’s FSB spy agency, and Igor Sechin, a shadowy Kremlin figure who is now Russia’s top energy official and is widely rumoured to be behind the initial attack on Yukos.

Given the international firestorm ignited by the intial media stories of the accounts and the dilemma which the soldiers found themselves in vis-a-vis their commanders, it is as if the soldiers chose a reasonable exit strategy: they can claim that their accounts were based on rumors so as not to open themselves up to charges that they ratted out their comrades. This is pure conjecture, of course. The soldiers were not permitted to speak with journalists. In other units, commanders have warned their soldiers to speak with anyone outside of the army about what they witnessed in the Gaza Strip.

here is another factor that must be taken into consideration. The investigation is based solely on one side of the equation - the Israeli side. An Associated Press reporter who was in Gaza last week interviewed Palestinians about the incidents in question. Their recollections to some extent corroborate the descriptions of the alleged shootings as initially recalled by the soldiers.

Topolanek already pushed Lisbon Treaty through the parliament, the legislature's lower house, in February, against the wishes of President Václav Klaus. However, it still needs to be pass through the country's senate before it can be ratified, and how the 81-member upper house will vote is anything but predictable. One thing is sure -- it's going to come down to the 35 votes held by Topolanek's ODS.

Pessimists like Deputy Prime Minister Alexandr Vondra say it's now going to be difficult to get the fractious senate to commit to an EU-friendly position. Optimists, meanwhile, hope that ODS representatives will take their cue from the general population's mood, since senators are directly elected by the people. And the EU is in good standing with Czechs at the moment, with polls showing up to 60 percent in support of the Lisbon Treaty. "In these times of economic crisis," says Robert Schuster at the Prague Institute of International Relations, "there's a feeling that it's better to belong to a large community."

it was two fellow members of his ODS party who helped oust Topolanek. Both voted against the prime minister, supposedly because they were unable to reconcile their political conscience with participation in a government that wants to implement the Lisbon Treaty.

That, however, is hardly the whole truth. The party is still deeply split between supporters of the president and those of the defeated prime minister. Topolanek is not the only one convinced that Klaus was behind the vote that brought him down -- the president has never made a secret of his animosity toward his rival. Klaus appears determined not to let Topolanek remain provisionally in office as a caretaker prime minister until the end of the Czech Republic's EU presidency. On Sunday Topolanek said that he was open to a deal with political rivals on an interim government, possibly led by someone else.

Even when the corruption grows too conspicuous to ignore, it often goes unpunished. Such was the case with Jiri Cunek, Topolanek's former deputy prime minister, who came under suspicion of having taken bribes. The investigation made no headway, the attorney in charge of the investigation was changed, and the case was eventually filed away. Cunek remains the Christian Democrats' party leader.

"There's a judicial mafia at work," says former Justice Minister Marie Benesova, explaining that in the Czech Republic the highest prosecutor works directly under the justice minister. That, she says, means the executive branch of the government can directly influence the judicial system.

The Social Democrats, who called the recent no-confidence vote in parliament, have also had their share of scandals. Former Prime Minister Stanislav Gross, for example, had to step down four years ago when he proved unable to explain how he had financed his luxury apartment in Prague.

The so-called "opposition agreement" has also had a disastrous effect on Czech politics. After elections in 1998 left a stalemate between the Social Democrats and the ODS, Social Democrat Milos Zeman and then-leader of the ODS Vaclav Klaus came to an agreement: The Social Democrats would be allowed to govern, but the ODS, as the opposition, could take part in decision-making. Zeman had to negotiate every decision in advance and the conservatives were rewarded with various concessions for their consent. And politics began to move behind closed doors.

More than 1,400 Palestinians were killed, including more than 900 civilians, according to the Palestinian Center for Human Rights, which published a list of names of the dead. Israel has said the toll was lower, and the "vast majority" of the dead were militants. But it did not publish a list to support the assertion.

In a joint statement, nine Israeli rights groups said the decision to close the investigation without bringing charges "only strengthens the need for the attorney general to allow for an independent nonpartisan investigative body to be established in order to look into all Israeli army activity" in Gaza.Defense minister, Ehud Barak, said the investigation showed that Israel possesses "the most moral army in the world".

Although Clinton tried to keep the focus on Afghanistan, her attendance at the conference with a senior Iranian official marked the first such meeting involving the two countries as the Obama administration seeks greater engagement with Iran. Senior U.S. officials have said cooperation on Afghanistan could provide such an opening. Clinton noted Iran's history of cooperating with the United States on Afghanistan since the U.S. invasion in 2001. In 2003, U.S. ambassador to Afghanistan Zalmay Khalilzad held talks with Iranian officials in Geneva, Switzerland, about how the two countries could work together. She cited border security and counternarcotics efforts as two specific issues that "have a direct effect on Iran's well-being."

The GAO said it was concerned that some of the projects could provide expertise useful both for peaceful purposes and for the development of nuclear-weapon capabilities. The U.S. Energy Department, which reviews these proposed projects for the State Department, examined 1,565 such proposals between 1998 and 2006 and found that 43 of them had some degree of proliferation risk. The IAEA approved 34 of them, the report found.