The warnings echoed a speech by US President Barack Obama, who warned of complacency in the banking sector. Also, UK Prime Minister Gordon Brown said that there was "unfinished business" with banks. Lehman Brothers, once the fourth-largest US investment bank, filed for Chapter 11 bankruptcy protection in the early hours of 15 September 2008.

Governments around the world subsequently had to pump trillions into their financial systems through bank bail-outs, central bank actions and huge stimulus plans to save their economies from collapse. BBC business editor Robert Peston said that Lehman's collapse had huge repercussions on the psyche of investors and the scale of the financial crisis. "The significance of Lehman Brothers was in the massive panic that it caused in the marketplace, where funds were withdrawn from any bank anywhere in the world that was perceived as remotely vulnerable," Robert Peston said.

But there is now concern that as the banks start to recover, they have not taken the necessary steps to prevent a repeat of the crisis. "Alarm bells should be ringing with the early signs of a 'back to business' attitude in the City and little evidence that policymakers are taking measures to ensure the next economic recovery is better balanced than the last one," said Tony Dolphin, senior economist at the IPPR. The report warned that unless urgent action was taken, the banking crisis might not be the last of its type.

It is almost 200 years since a volcano near Eyjafjallajoekull, 120km (75 miles) east of Reykjavik, last erupted. "We estimate that no one is in danger in the area but we have started an evacuation plan and between 500 and 600 people are being evacuated," Sigurgeir Gudmundsson of the Icelandic civil protections department told the Agence France-Presse news agency. There are fears that the volcano could cause flooding, as it causes ice to melt on the glacier above it.

"Ash has already begun to fall in Fljotshlid and people in the surrounding area have reported seeing bright lights emanating from the glacier," RUV public radio said on its website. "It was a bit scary, but still amazing to see," Katrin Moller Eiriksdottir, who lives in Fljotshlid, told the BBC News website. "The ash had started falling and we couldn't leave the car. They have now closed the road but we'll see what happens in the morning."

Three Icelandair flights, bound for Reykjavik from the United States, have been ordered to return to Boston, RUV radio reported, and much of Icelandic air space is a no-fly zone. The last volcanic eruption in the area occurred in 1821.

The pastoral letter is the first statement of its kind by the Vatican on the sexual abuse of children. It follows revelations of paedophilia within the Irish Catholic Church, which have rocked the institution. Scandals involving Catholic priests have been reported in other countries, including the Pope's native Germany, Switzerland, the Netherlands, Austria and the US.

Addressing the victims of abuse, the Pope wrote: "You have suffered grievously and I am truly sorry." He continued: "Your trust has been betrayed and your dignity has been violated... I openly express the shame and remorse that we all feel." He said those guilty of abuse must "answer before God and properly constituted tribunals for the sinful and criminal actions they have committed".

However, the Pope's statement may fall short of demands by victims' groups for an admission that abuse was systematically covered up, says BBC Religious Affairs correspondent Robert Pigott. The only direct reference to cover-ups is a reference to "a misplaced concern for the reputation of the Church and the avoidance of scandal".

The Pope also criticised inadequate procedures in selecting candidates for the priesthood and "insufficient human, moral, intellectual and spiritual formation in seminaries and novitiates" as factors contributing to the crisis. He said: "Urgent action is needed to address these factors, which have had such tragic consequences in the lives of victims and their families, and have obscured the light of the Gospel to a degree that not even centuries of persecution succeeded in doing.

On Wednesday, she added more fuel to the fire. Speaking to the French radio station RTL, she said that when an economic union such as the euro zone faces difficulties, "everyone" should contribute to the solution. Countries with a deficit, she said, ought to reduce it, while those with a trade surplus cannot "stand on only one leg." "For instance, perhaps Germany could reduce its taxes a little to stimulate domestic spending," the minister suggested.

Germany's Christian Democratic Chancellor Angela Merkel reacted coolly. "We will not give up our strengths in those areas where we are strong," she said in German parliament on Wednesday. The chancellor may have shown recent interest in the long-shunned concept of a "common economic government" for Europe. But she would like it to be pegged to Europe's economic success stories, not those countries which are lagging behind.

But it is precisely the less competitive countries that pose the biggest problem for the euro zone. The disastrous budget situation in Greece has highlighted the common currency's weaknesses in recent weeks and similar situations in Spain, Ireland, Italy or Portugal could aggravate the situation even further.

They said the informant chose the targets, supplied fake bombs for the synagogues and a fake missile to shoot down planes. The motion said he also offered to pay the defendants, who attorneys alleged weren't inclined toward any crime until the informant began recruiting them. "The government well knew that their case had been a government-inspired creation from day one and that the defendants had not been independently seeking weapons or targets," the motion said.

Federal court spokesman Herb Hadad said the government would file its response next month. The four men, who were arrested last May, face up to life in prison if convicted. They have been previously identified as James Cromitie, 55, David Williams, 28, Onta Williams, 32, and Laguerre Payen, 27, all of Newburgh in upstate New York, where authorities were conducting raids at their homes, sources said.

Authorities have said they had the plotters under surveillance since June of 2008 and there was "no chance" the alleged scheme could succeed. They credited the work of a long time informant with keeping tabs on the group. The FBI has said the Muslim suspects were angry and full of hate for America.

Mr Blair - who has made at least 20 million pounds since leaving Downing Street in June 2007 - also went to great efforts to keep hidden a 1 million pounds deal advising the ruling royal family in Iraq's neighbour Kuwait.

In an unprecedented move, he persuaded the committee which vets the jobs of former ministers to keep details of both deals from the public for 20 months, claiming it was commercially sensitive. The deals emerged yesterday when the Advisory Committee on Business Appointments finally lost patience with Mr Blair and decided to ignore his objections and publish the details.

News of the secret deals fuelled fresh accusations that Mr Blair is 'cashing in on his contacts' from the controversial Iraq war in what one MP called 'revolving door politics at its worst'. They will increase concerns that Mr Blair is using his role as the West's Middle East envoy for personal gain.

Hundreds have died this year in ethnic and religious violence around Jos. Although the violence in Nigeria generally takes place between Muslim and Christian communities, the underlying causes are a complex mix of political, social and economic grievances. Nigeria is roughly split between its largely Muslim north, and a Christian-dominated south.

In a statement, the foreign ministry said it was recalling its Tripoli ambassador for "urgent negotiations" because of the "irresponsible utterances of Colonel Gaddafi". "His theatrics and grandstanding at every auspicious occasion have become too numerous to recount," said the statement. Colonel Gaddafi, until recently head of the African Union, praised the partition of India in 1947 as the kind of "historic, radical solution" that could benefit Nigeria.

Splitting India in 1947 caused a breakdown of law and order in which at least 200,000 people died. Some estimates say one million people were killed. About 12 million people were left homeless and thousands were raped. An attempt by the Igbo people of south-eastern Nigeria to secede in 1967 sparked a war which left more than one million people dead.

He said Dutch leaders had told him that the presence of gay soldiers had contributed to the Bosnian massacre. Srebrenica was a UN safe haven under the protection of Dutch peacekeepers when, in 1995, Bosnian Serb forces overran the town, killing some 8,000 Muslim men and boys.

General Sheehan said the former chief of staff of the Dutch army had told him that the presence of openly gay soldiers in the Dutch peacekeeping force were seen as "part of the problem" which contributed to the fall of Srebrenica. He argued that since the end of the Cold War, European militaries had changed and he concluded "there was no longer a need for an active combat capability".

This "socialisation" process, General Sheehan said, "included open homosexuality" and led to "a focus on peacekeeping operations because they did not believe the Germans were going to attack again or the Soviets were coming back". Several countries - including Britain, Canada, Australia and Israel - allow gay people to serve openly.

Israeli PM Benjamin Netanyahu informed Washington of new confidence-building measures on the eve of the meeting. Washington's ties with Israel have been under strain over the settlements. A rocket fired from the Gaza Strip on Thursday killed a Thai agricultural worker when it hit an Israeli kibbutz. Israeli aircraft attacked up to six targets in Gaza overnight but there were no reports of any serious casualties.

The violence came as the EU's new foreign policy chief, Baroness Ashton, visited Gaza - one of the highest-level visits there by a Western official since the Palestinian Islamist group Hamas took power. Lady Ashton is to attend the talks in Moscow. In Moscow, US state department spokesperson PJ Crowley said Mrs Clinton and Mr Netanyahu had discussed specific actions that might be taken to improve the atmosphere.

It is likely this means a goodwill gesture by the Israelis, like the release of Palestinians prisoners, our correspondent says. Mr Crowley added that Washington would now review the prime minister's response and work with Israelis and Palestinian to keep the indirect negotiations, known as proximity talks, moving forward. Washington wants those talks to focus on the core issues at the heart of the conflict, like borders and Jerusalem, our correspondent says.

The Pope has announced he will sign the letter on Friday and it will be sent immediately to the bishops of Ireland in preparation for it to be read out in churches there on Sunday. The text will be published at the Vatican on Saturday.

The Pope's message will certainly express contrition for what he himself has already described as shameful and hateful behaviour by priests not only in Ireland but also in America, his native Germany, Austria, the Netherlands and even Australia. What was first perceived in Rome as a series of local scandals has now escalated into a worldwide problem for the Catholic Church with new allegations emerging each week from Catholics claiming they have been victims of sexual abuse by priests.

The implications for the Vatican are serious. The credibility of the Church as a guardian of morals is at stake - and the prospect of an avalanche of claims for compensation by victims threatens the financial ruin of some dioceses, as has already happened in the US, where the greatest number of cases has been reported.

Its leaders had been warned personally by Dr Rowan Williams, the Archbishop of Canterbury, not to take any decisions that would deepen the crisis over sexuality within the worldwide church. But bishops and dioceses across the national church have now approved the consecration of Miss Glasspool, after she was elected last year, and a ceremony has been scheduled for May 15th. She and the Reverend Diane Bruce will become the first women bishops in Los Angeles.

Miss Glasspool, a Canon in the Diocese of Maryland who has been with her female partner since 1988, said: "I am also aware that not everyone rejoices in this election and consent, and will work, pray, and continue to extend my own hands and heart to bridge those gaps, and strengthen the bonds of affection among all people, in the Name of Jesus Christ."

The Right Reverend Jon Bruno, the Bishop of Los Angeles, said the move showed there were no barriers within the Episcopal Church based on "gender and sexual orientation". The Episcopal Church was the first in the 80 million-strong Anglican Communion to defy tradition and previous agreements by senior bishops and elect an openly homosexual bishop, the Right Reverend Gene Robinson, in 2003.

"The time has come to tell the truth", Dr Ben-Artzi told Arutz-7 radio. "I understand the Prime Minister's reaction to me, but the truth must be told. Obama is an anti-Semite." He said that Israel is dealing with a president who was educated by anti-Semitic preacher Jeremiah Wright.

He also told IDF Army Radio that Wright is "anti-Israeli, anti-Jewish and anti-Semitic." Obama was a devotee of Wright for two decades but distanced himself from the preacher during the presidential campaign two years ago. Dr Ben-Artzi told Arutz-7 that the United States is important to Israel from both the economic and security standpoints, but when the United States makes demands on Jerusalem, the time has come to tell the truth - we are talking about an anti-Semite."

He said that Prime Minister Netanyahu must follow the course of his predecessors since all of Jerusalem was restored to Israel in 1967. "Once the Americans tried to intervene in anything related to Jerusalem we told them one simple word: No. We Jews are a people from nearly 4,000 years ago. In another year, you [Obama] will disappear. Who will remember you?"

Dr Ben-Artzi said if President Obama is looking for a crisis over Jerusalem, then a crisis is what he will get.

Over 11,375 Europeans of various countries have already signed the online petition to keep Sunday as a day of rest in the whole of Europe.

Kastler presented the online campaign "Mum and Dad Belong to Us on Sunday" in the European Parliament at Strasbourg last month.

Kastler affirmed that this initiative "will strengthen direct democracy in the European Union."

He continued: "Thanks to the Lisbon treaty and the introduction of the European Citizens' Initiative, we as European citizens for the first time get the opportunity to stand up for our concerns. We want to use this opportunity to ensure a free Sunday." The Treaty of Lisbon, which entered into force last December, included provisions for the European Citizens' Initiative, an innovation aimed at increasing democracy in the European Union.

The initiative allows citizens to appeal to the European Commission on a topic of interest. It requires 1 million citizens from a significant number of member states to come together on the topic, at which point the group is able to suggest laws and have a direct voice in the affairs of the European Union.

Kastler affirmed: "The work-free Sunday is part of our European culture. We need time for our families and relationships, for civil society and religion. A life full of working days is unlikely to be fulfilling. The work-free Sunday is an essential pillar of the European Social Model and a part of the European cultural heritage."

The British pound is tottering. The economy finds itself in its worst crisis since 1931, and the country came within a hair's breadth of a deep recession. Speculators are betting against an upturn. Instability in the banking sector has had a more severe impact on government finances in Great Britain than in other industrialized countries. London's budget deficit will amount to 186 billion pounds (205 billion euros, or $280 billion) this year - fully 12.9 percent of gross domestic product.

Indeed, the problem has become so worrisome, that the European Commission told London on Wednesday to do more to tighten its budget, according to a draft report leaked to Reuters earlier this week. "The fiscal strategy outlined in the United Kingdom's convergence program does not foresee the correction of the excessive deficit by the fiscal year 2014/2015, as recommended by the Council," the European Commission said in a statement.

To complicate matters, Britons will go to the polls in a few weeks, probably on May 6. The next prime minister will have his work cut out for him: reducing the massive budget deficit, restructuring the banking industry and successfully reorienting the economy. And he'll have to do it all on a shoestring budget. "The British will spend the rest of their lives paying for the debts that the banks and this government have brought upon us," says Mike Whitby, the Tory mayor of Birmingham. "The UK is poorer than it thought it was," writes the Financial Times. And there is nothing in sight that could provide the country with reliable support.

Message to New Yorkers: don't start spending your tax refund money because it's going to be delayed. Half a billion dollars' worth of refund checks were put on hold last Friday, and state beancounters won't start sending you your money until at least April 1. "I apologize that we had to do this. I hope it serves notice on the public of how serious our financial situation is," Governor David Paterson said.

Several hundred thousand New York taxpayers will be affected with most getting an average refund of $1,000. People who filed in late February and early March might have to wait as long as six weeks till the checks are in the mail. The governor said the move was unavoidable. He's also planning to withhold $1.5 billion in school payments and aid to local governments.

"The damage at this time would be far worse because if we do not pay our debts on time, it thrusts the state into a downgraded credit rating," Paterson said. Tell that to people who were counting on the refund money to get them through these tough economic times.