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A new row over French protectionism has broken out, as EU leaders hold a summit in Brussels on the economic crisis. It followed the news that carmaker Renault was moving some production from Slovenia to create 400 jobs in France. The European Commission said it would seek urgent clarification. It comes only weeks after the EU agreed France could give state aid to its carmakers.

The BBC's Oana Lungescu in Brussels says the row over Renault could not have come at a worse moment for the EU, just as its leaders are calling on the US and others to tackle the global crisis by avoiding all forms of protectionism.

The argument erupted after French industry minister Luc Chatel told French radio that Renault would relocate part of its production from Slovenia to a plant at Flins, near Paris, creating 400 jobs there. A Renault spokeswoman said the company intended to increase production both in Slovenia and France and the shift was intended to meet a shortfall in capacity at its Slovenian plant. It denied the move was linked to a pledge to keep jobs in France in exchange for state aid. But EU competition commission Neelie Kroes told the BBC she was highly surprised and was seeking urgent clarification from the French authorities. Ms Kroes said she had received a pledge from Mr Chatel just a few weeks ago that an $8bn state bail-out for carmakers would not be linked to moving jobs to France, our correspondent reports.

China has proposed that importers of Chinese-made goods should be responsible for the carbon dioxide emitted during their manufacture. China's top climate change negotiator, Li Gao, said his country should not pay for cutting emissions caused by the high demands of other countries.

In recent years China has overtaken the US as the world's largest producer of greenhouse gases.

Beijing argues that rich nations buying Chinese goods bear responsibility for the estimated 15-25% of China's carbon emissions that are created by its production of exports.

Madagascar's opposition leader has said he has a mandate to lead a transitional government, hours after troops stormed one of the president's palaces. Speaking to the BBC, Andry Rajoelina denied that the dramatic seizure of the palace amounted to a coup. But he said that the President Marc Ravalomanana no longer had the right or the power to run the country. President Ravalomanana, holed up in another palace, was quoted as saying he was prepared to die with his guards.

The African Union condemned the "attempted coup d'etat" and called on Madagascar to respect its constitution.

A fierce power struggle on the Indian Ocean island has triggered a military mutiny, looting and violent protests that have left at least 100 people dead since January.

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."

Japan's current account recorded its largest deficit on record in January, reaching 172.8bn yen ($1.8bn; £1.2bn). It was its first deficit in 13 years.

Government figures show that exports nearly halved in January, while imports fell by a third.

Car exports alone dropped 66.1%, with semiconductor and electronic parts exports down 52.8%.

Mr Wen said confidence would be necessary to overcome China - and the world's - economic difficulties. "Confidence is more important than gold or money," he said

Opening the NPC session nine days ago, Mr Wen said that this year would be the most difficult China has faced this century. Two days ago, official figures were released showing that Chinese exports plunged by more than a quarter in February from a year ago, to $64.9bn (£47.3bn), and imports fell by 24.1% to $60.1bn.

The government is targeting annual growth of 8% and wants to boost consumption and raise consumer demand.

The Israeli military occupation around Bethlehem is severely restricting its growth, undermining its economy and compromising its future, according to a UN report.The combined effect of Israeli annexation, the West Bank barrier, settlements, settler bypass roads, closed military zones and Israeli nature reserves, has left only 13% of the 660 sq km Bethlehem governorate available for Palestinian use, the UN Office for the Co-ordination of Humanitarian Affairs says.

While there are about 175,000 Palestinians living in the Bethlehem area, there are now at least 86,000 Israelis also living there in 19 settlements, and their number is growing, even though settlements on occupied land are illegal under international law. Two-thirds of the governorate is under full Israeli security and administrative control.

The barrier around the Bethlehem area, part concrete, part steel, is still being built, but when finished will seal off the city itself from east Jerusalem and prevent growth to the north and west. On the western side of the barrier about 64 sq km will be isolated, home to 21,000 Palestinians living in some of the most fertile agricultural land in the area. The Palestinians there will face reduced access to trading markets and health and education services.

Prime Minister Benjamin Netanyahu may be prepared to endorse a peace process leading to an independent Palestinian state, his defence minister has said.Ehud Barak, a long-time rival now part of Israel's governing coalition, spoke ahead of Mr Netanyahu's first meeting with US President Obama in Washington. He told Israeli TV a regional deal could be struck within three years.

"Netanyahu will tell Obama: We're willing to engage in a process whose end is a regional peace accord," he told Channel 2 TV.

"The Arabs say 'two states,' [and] I don't see a reason why Netanyahu would not say that at the end of an accord... there will be two peoples living side by side in peace and mutual respect," he said.

SPIEGEL: The Taliban is increasingly calling on the poor to follow them and to chase away the landlords and feudal lords. Are the Islamists in the process of transforming themselves into a social movement that pits Pakistan's underprivileged against the rich elite, who have opposed land reform? Zardari: I don't see that. In regions of the northwest border provinces, there is no feudalism because there is no land available that would be sufficient for agriculture -- it is all mountainous terrain. There are old families and there is a tribal chief system that relies on tribal laws that has been indigenous for centuries. The Taliban have superiority of numbers and arms and are more aggressive, so they sometimes overpower the local authority.

It would be a great gesture if Osama bin Laden were to come out into the open in order to give us a chance of catching him. The question right now is whether he is alive or dead. The Americans have told me they don't know. They are much better informed and they have been looking for him for a much longer time. They have got more equipment, more intelligence, more satellite eavesdropping equipment and more resources on the ground in Afghanistan, and they say they have no trace of him. Our own intelligence is of the same opinion. Presumably, he does not exist anymore, but that has not been confirmed.

SPIEGEL: Why do you leave the elimination of top terrorists in the Pakistani tribal areas to the Americans, whose drone attacks are extremely unpopular amongst the populace? Why don't you handle this yourselves? Zardari: If we had the drone technology, then we would. It would be a plus. We have always said that we don't appreciate the way the Americans are handling it. We think it is counterproductive. But it is mostly happening in the border areas between Pakistan and Afghanistan -- for all intents and purposes no man's land.

The United States should not put conditions on an expected substantial increase in U.S. aid to its ally Pakistan, Pakistan's prime minister told visiting U.S. Senator John Kerry on Monday.

Pakistan is struggling to stem surging Islamist violence and put back on track an economy being kept afloat with the help of a $7.6 billion International Monetary Fund loan. Pakistan is due to make its case for help to allies and donors at meetings in Tokyo on Friday, where it hopes to win $4 billion in aid over the next two years to fill a financing gap.

The United States is expected to make a pledge of substantial help although U.S. President Barack Obama has said the release of additional aid would depend on how Pakistan tackled terrorism. Prime Minister Yousaf Raza Gilani told Kerry, chairman of the U.S. Senate Foreign Relations Committee, that Pakistan needed unconditional help. "The U.S. should not attach conditionalities to the assistance," Gilani's office quoted him as saying. "Aid with strings attached would fail to generate the desired goodwill and results."

The other side of Iran's economy belongs to the Islamic foundations, which account for 10% to 20% of the nation's GDP--$115 billion last year. Known as bonyads, the best-known of these outfits were established from seized property and enterprises by order of Ayatollah Khomeini in the first weeks of his regime. Their mission was to redistribute to the impoverished masses the "illegitimate" wealth accumulated before the revolution by "apostates" and "blood-sucking capitalists." And, for a decade or so, the foundations shelled out money to build low-income housing and health clinics. But since Khomeini's death in 1989 they have increasingly forsaken their social welfare functions for straightforward commercial activities.

Until recently they were exempt from taxes, import duties and most government regulation. They had access to subsidized foreign currency and low-interest loans from state-owned banks. And they were not accountable to the Central Bank, the Ministry of Finance or any other government institution. Formally, they are under the jurisdiction of the Supreme Leader; effectively, they operate without any oversight at all, answerable only to Allah.

According to Shiite Muslim tradition, devout businessmen are expected to donate 20% of profits to their local mosques, which use the money to help the poor. By contrast, many bonyads seem like straightforward rackets, extorting money from entrepreneurs. Besides the biggest national outfits, almost every Iranian town has its own bonyad, affiliated with local mullahs. "Many small businessmen complain that as soon as you start to make some money, the leading mullah will come to you and ask for a contribution to his local charity," says an opposition economist, who declines to give his name. "If you refuse, you will be accused of not being a good Muslim. Some witnesses will turn up to testify that they heard you insult the Prophet Mohammad, and you will be thrown in jail." The Cosa Nostra meets fundamentalism.

The powerful Guardian Council touched off scattered protests in Tehran Monday night when it formally certified the re-election of President Mahmoud Ahmadinejad to a second four-year term, saying there was no validity to charges of voting fraud.

As the certification was announced, security and militia forces flooded the streets, and protesters who were already out marching down Tehran’s central avenue, Vali Asr, broke into furious chants. The marchers were quickly dispersed, but other Iranians, urged by opposition Web sites, went to their rooftops to yell “God is great!” in a show of defiance.

Ayatollah Ahmad Jannati, the Guardian Council’s secretary, sent a letter to the interior minister saying the panel had approved the election after a partial recount, according to state television. “The Guardian Council, by reviewing the issues in many meetings and not considering the complaints and protest as valid, verifies the 10th presidential election,”

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 oil price hit a new seven-month high today, fuelling suggestions that the world could soon see a return of the $100 barrel of crude.New York crude oil hit $71.65 a barrel this morning, up by more than one and a half dollars, to its highest level in 2009. The rise followed a $2 jump last night after America's energy forecasting agency raised its estimate for world demand.The oil price has more than doubled in the last four months on the back of speculation that the worst of the economic downturn may be over.