EUROPE - An analyst says the European Union members will not reach an agreement on the bloc’s next seven-year budget, paving the way for its breakup, Press TV reports. “…When we’re moving into a triple dip recession all around, when top of the agenda for most of the countries is austerity measures, budget cuts and trying to pay off the national debt, the likelihood of getting people to agree to a trillion stimulus for the European Union is highly unlikely,” said Simon Dixon, the CEO of Bank to the Future.com. “I’m forecasting this year that we’re going to see some of the first exits from the European Union which will probably have the domino effect on others.”
USA - The Pentagon will extend some family benefits to same-sex partners of US military members, Defence Secretary Leon Panetta has said. The benefits include child care, legal help, joint duty assignments, emergency leave, and transportation. Others such as healthcare and housing allowances cannot be offered without a change in federal law, he said. The benefits are expected to affect an estimated 18,000 current and retired military members
UK - Culture Secretary Maria Miller has clashed with a Labour MP after describing marriage as a "gold standard" that people aspire to. She told a Commons committee that marriage provided "strength of commitment" that society could "thrive on". But Labour's Chris Bryant said this made him feel that his own civil partnership was not as valued and she should "rethink" her language. The minister said she had not meant to cause offence.
USA - Washington considers the latest nuclear test by North Korea a threat to America’s national security and has threatened “swift and credible action” against Pyongyang. Earlier, the US said a preemptive military strike against DPRK is an option. The US “will also continue to take steps necessary to defend ourselves and our allies,” President Barack Obama said in a statement, adding that Washington will be “vigilant in the face of North Korean provocations and steadfast in our defense commitments to allies in the region.” The move prompted outrage from abroad, while Pyongyang said the test was necessary to defend its national security and sovereignty from the US and its allies.
NORTH KOREA - North Korea has carried out a third nuclear test in defiance of United Nations warnings. The move prompted criticism from its sole major ally, China, and condemnation around the world. The North Korean news agency said the underground test used a smaller, lighter nuclear device with greater explosive force than before. Observers say it could take North Korea closer to building a warhead small enough to arm a long-range missile. President Obama said the test was a "highly provocative act", and called for "swift" and "credible" international action in response. China expressed "firm opposition" to its ally's test.
ISRAEL - Speaking at the Conference of Presidents of Major American Jewish Organizations, Netanyahu said, “The three external challenges that we face begin with Iran. I spoke about Iran’s plan to develop nuclear weapons. Its nuclear weapons program continues unabated.”
UK - Catherine Brown, chief executive of the Food Standards Agency, said shoppers would expect retailers to test all their meat products for cross-contamination by other meat in the wake of the horsemeat scandal.
UK - The horsemeat scandal has already been blamed on organised crime. But how common is food fraud and do long, complicated supply chains allow it to happen? The mystery of how horsemeat got into Findus beef lasagne has led to an international hunt already taking in four countries.
VATICAN - Pope Benedict surprised the world on Monday by saying he no longer had the mental and physical strength to cope with the demands of his ministry, becoming the first pontiff to step down since the Middle Ages and leaving his aides "incredulous".
BRUSSELS, EUROPE - EU leaders have resumed gruelling budget talks amid signs that a compromise deal may be close. Arguments over the proposed cuts continued in Brussels after all-night talks on the 2014-2020 budget. Reports say the latest draft puts the spending ceiling at 960 billion euros (£813 billion; $1.3 trillion), equivalent to actual payments totalling 908 billion euros. In November the 27 leaders failed to reach agreement amid deep divisions over cuts - a key UK demand. A deal will also require approval from the European Parliament - and MEPs have made it clear that they are prepared to veto an "austerity" budget significantly lower than the original draft put forward by the European Commission.
GREECE - Once a bastion of European success and center of tourism, the country of Greece has become the harbinger of things to come for the rest of the world’s developed nations.
USA/CHINA - A new intelligence assessment has concluded that the United States is the target of a massive, sustained cyber-espionage campaign that is threatening the country’s economic competitiveness, according to individuals familiar with the report. The National Intelligence Estimate identifies China as the country most aggressively seeking to penetrate the computer systems of American businesses and institutions to gain access to data that could be used for economic gain. Cyber-espionage, which was once viewed as a concern mainly by US intelligence and the military, is increasingly seen as a direct threat to the nation’s economic interests.
USA - A Florida judge has approved the adoption of a 22-month-old baby girl that will list three people as parents on her birth certificate - a married lesbian couple and a gay man. The decision ends a two-year paternity fight between the couple and a friend of the women who donated his sperm to father the child but later sought a larger role in the girl's life. The ruling means the child's birth certificate will include a biological father and both women as parents in an unusual arrangement approved recently by a Miami-Dade Circuit Court judge.
CHINA - We don't know if it is merely a coincidence that a story has emerged discussing a Chinese mobilization in response to the ongoing territorial feud with Japan over the Diaoyu/Senkaku islands (and the proximal massive gas field) the very week that China celebrates its new year (and days after news that a Chinese warship was very close to firing on a Japanese destroyer).
UK - The deepening horsemeat scandal has been met with typical British humour. “My doctor tells me I should watch what I eat so I’ve just bought a ticket to this year’s Grand National,” is one quip. “A woman has been hospitalised after eating a supermarket burger. Doctors say she is in a stable condition,” is another.