Mr Barak said he would take his Labour Party out of Mr Olmert's governing coalition if he did not step down. "The prime minister needs to disconnect himself from the day-to-day management of the government," Mr Barak said. Mr Olmert denies claims that he took up to $500,000 (£250,000) in bribes or illegal campaign donations.

Mr Olmert, the head of the Kadima Party, admits accepting funds before he became prime minister in 2006. But he insists they were legal contributions towards his campaigns for re-election as Jerusalem mayor and for the leadership of the Likud party.

UPDATE - jpost.com - Prime Minister Ehud Olmert does not intend to step down from his post, as Defense Minister Ehud Barak called on him to do on Wednesday morning. "I have no intention at all of resigning, and I am not going anywhere," said the prime minister on Wednesday night. He also claimed again that he has done nothing wrong, and that the claims of the media are untrue.

The proposal, which is being pushed by Labour MEP Richard Corbett, could prevent the Conservatives from forming a new group, and would probably prevent eurosceptic groups in the Parliament like UKIP from forming a group and receiving funding.

Corbett argues that "It would prevent single issue politicians from being given undue support from the public purse." He said: "WE WANT TO AVOID THE FORMATION OF A FRAGMENTED PARLIAMENT, deeply divided into many small groups and unable to work effectively." Mr Corbett's proposals will also give the President of the Parliament sweeping powers to approve or reject parliamentary questions.

Current rules allow 20 MEPs from a fifth of the EU's member states to form groupings, giving them a say in the Parliament's administration and power structure. Under the changes, the threshold would become 30 MEPs from one quarter of the EU's member states. The Liberal Democrats, Greens, the far Left, Eurosceptics and other groupings have vowed to oppose the plans during a vote scheduled for July 9.

The U.S. government and Federal Reserve already have committed the system to this course through THE EASY POLITICS OF A BOTTOMLESS POCKETBOOK, THE SERVICING OF BIG-MONEYED SPECIAL INTERESTS, AND GROSS MISMANAGEMENT. The U.S. has no way of avoiding a financial Armageddon. Bankrupt sovereign states most commonly use the currency printing press as a solution to not having enough money to cover their obligations. The alternative would be for the U.S. to renege on its existing debt and obligations, a solution for modern sovereign states rarely seen outside of governments overthrown in revolution, and a solution with no happier ending than simply printing the needed money.

WITH THE CREATION OF MASSIVE AMOUNTS OF NEW FIAT (NOT BACKED BY GOLD) DOLLARS WILL COME THE EVENTUAL COMPLETE COLLAPSE OF THE VALUE OF THE U.S. DOLLAR and related dollar-denominated paper assets. The broad outlook has not changed during the last year. More generally, though, developments in the economy and the financial markets have been in line with projections and have tended TO CONFIRM THE UNFOLDING DISASTER.

Specifically, the current inflationary recession has gained much broader recognition, while the STILL-UNFOLDING BANKING SOLVENCY CRISIS has confirmed the Fed's and the U.S. government's willingness to spend whatever money they have to create in order to keep the financial system from imploding. While the dollar has taken a heavy hit - down roughly 20% against key currencies from last year - SELLING OF THE U.S. CURRENCY STILL HAS BEEN FAR SHORT OF THE OUTRIGHT DOLLAR DUMPING that eventually will lead to flight to safety outside of the U.S. dollar. THAT EVENT IS IMPORTANT TO THE SHORTER-TERM TIMING OF THE PENDING HYPERINFLATION.

A hyperinflationary depression would be extremely disruptive to the lives, businesses and economic welfare of most individuals. Such severe economic pain could lead to extreme political change and/or civil unrest.

But Merkel's left-right government is unlikely to fall because neither party will dare to withdraw from the coalition and risk being blamed for its collapse. Both the Social Democrats (SPD) and the CDU know that German voters would punish the perceived culprit at the ballot box. Nevertheless, THIS GOVERNMENT IS NOW TOO WEAK AND DIVIDED TO TAKE ANY MAJOR DECISIONS IN THE REMAINING 16 MONTHS OF ITS TERM, say commentators.

"The coalition crisis will remain absurd because neither the conservatives nor the SPD will dare to break it up. After all, they haven't got any alternative coalition partners, and an early election can be ruled out because it would undermine the credibility of both parties if they dissolved parliament prematurely yet again. But this grand coalition won't be taking any more major decisions. Or put another way: THIS GOVERNMENT HAS TURNED INTO A NON-GOVERNMENT ORGANIZATION, WITH IMMEDIATE EFFECT. The election campaign has begun, 16 months before the general election."

Meanwhile, few believe SPD leader Kurt Beck's promise that his party won't cooperate with the Left Party after the general election. Schwan's nomination is widely seen as the first step towards an alliance between SPD and the Left Party, vilified by the conservatives because of its roots in the communist party that ruled East Germany. "The conservatives can only interpret this candidacy of Gesine Schwan against incumbent Horst Köhler as meaning one thing: THE RED-RED CAMP OF THE SPD AND LEFT PARTY IS STARTING TO FORM ITSELF."

MANY MONTHS BEFORE THE ACTUAL CHANGING OF THE GUARD IN AMERICA, A POLITICAL SHIFT IS UNDERWAY. Its scope and extent remain unclear, yet the seeds of a new foreign policy have clearly been sown. The neoconservative strategy, which treated diplomacy as a waste of time and saw the military preemptive strike as America's fundamental right, has proven to be ineffective.

Reality has taught America a bitter lesson. Years after the invasions of Iraq and Afghanistan, the wars in those countries are still raging. Bush has become an effective recruitment tool for radical Islam. And in the Middle East, where Syria remains strong and an economically prosperous Iran sees itself destined to become the region's pre-eminent power, war seems closer than peace.

The United States is in a lonely spot, even in the West. When Tony Blair resigned as British Prime Minister, the US lost its last European vassal. In Asia, home to half the world's population, America has many military bases but virtually no friends. To make matters worse, the weak dollar has made oil-rich Moscow and Tehran both strong and impudent.

If there is one encouraging signal coming from Washington in the turbulent days of the election campaign, it is this: THE ZEITGEIST (SPIRIT OF THE TIMES) HAS SHIFTED. America wants to cooperate with the rest of the world again instead of imposing its will on other countries. Even Bush is clearly no longer the man he presents himself to be. Without any presidential fanfare, lower-level talks are underway with the government of Bush's archrival in Tehran. The pistol has returned to its holster.

Ahmadinejad is among the heads of state expected to visit Rome to attend a June 3-5 United Nations summit on global food security, hosted by the U.N. Food and Agriculture Organization. Vatican sources said earlier this week that it was not yet clear if the pope would meet individual heads of state attending the U.N. event or hold a collective audience for them in order to save time.

The Vatican has criticized Ahmadinejad for calling for Israel to be wiped off the map. The Holy See has diplomatic ties with Iran and Pope Benedict has met Iran's Foreign Minister Manouchehr Mottaki. The pontiff has repeatedly encouraged dialogue to resolve differences over Iran's disputed nuclear program, which the West says is aimed at making nuclear bombs.

Addressing a conference of the Social Democratic Party's parliamentary fraction in Berlin on 5 May 2008, Steinmeier started his speech with the old socialist greeting, "Dear Comrades" and immediately launched into the theme, saying that ONLY A FEW YEARS AGO THE TITLE "TOWARDS A EUROPEAN ARMY" FOR A LECTURE WOULD HAVE SEEMED TO BE PURE FANTASY.

"Today, after more than 20 civilian and military operations which we have run or are running from Macedonia to the Congo or in the Palestinian territories, it no longer sounds so distant or theoretical. IT IS ALSO A PART OF OUR EUROPEAN CREDIBILITY," he said. Steinmeier claimed that if opinion polls showed dissatisfaction with Brussels' tendency to over-regulate the size of tomatoes or the length of bananas, Europeans wanted the EU to speak with one voice in foreign affairs. He said that "A NEW ERA" WOULD DAWN WITH THE RATIFICATION OF THE LISBON TREATY (recently ratified by the Bundestag). He was convinced that the Treaty would enter into force punctually on 1st January 2009.

Steinmeier used the phrase "European Foreign Service" to characterise the new post, something which the British government energetically denied that Lisbon would create. "WITH THE LISBON TREATY IT WILL BE POSSIBLE FOR A GROUP OF STATES TO GO FORWARD IN SECURITY AND FOREIGN POLICY," he said, referring to the fact that Lisbon allows subgroups of EU states to act in foreign policy as the EU without all states participating (or having a veto).

Steinmeier said that France was shortly due to take over the EU presidency and that it had declared its intention to make security policy the cornerstone of its six-month stint. The creation of the Franco-German brigade was, he said, a nucleus for the new CFSP. He concluded his speech with a rallying cry. "We Social Democrats will definitely continue to struggle for a European army, FOR EUROPE TO BECOME A STRONG PEACE POWER, AND AGAINST ANY BACKSLIDING INTO OLD THINKING!"

IF IT TURNS OUT THAT OLMERT IS DISCUSSING RELINQUISHING THE GOLAN HEIGHTS, ELDAD SAID, THEN HE SHOULD BE CHARGED WITH TREASON. Dozens of MKs and Golan Heights community leaders participated in the emergency meeting, called in the wake of last week's almost simultaneous announcements by Syrian officials and by Prime Minister Ehud Olmert that negotiations were already underway with the Ba'athist dictatorship. Most Kadima party ministers, however, indicated their opposition to turning over the Golan Heights to Syria in any foreseeable deal.

"There is not a sane nation in the world that gives up the territory of its homeland," MK Eldad declared, in response to statements by senior politicians in the Kadima party in favour of relinquishing the Golan to Syria. "WHOEVER REMOVES LAND FROM THE STATE OF ISRAEL'S SOVEREIGN TERRITORY IS SUBJECT TO THE DEATH PENALTY," Eldad explained, adding, "Giving away the Golan Heights to Syria is treason, and the punishment for a person who commits treason under Israeli law is death."

ISRAELI SHEKELS CAN NOW BE USED IN TRADING ON MARKETS OVERSEAS, banks the world over can convert shekels into other currencies, and Israeli companies and firms can settle payments in shekels either by check or bank transfer to their customers' overseas accounts.

The CLS announcement said, "Following regulatory approval, the Mexican peso and Israeli shekel have been designated as CLS Bank Settlement Eligible Currencies by the CLS Bank Board of Directors. Bank of Israel Governor Stanley Fischer said the decision "is a significant further step in Israel's increasing integration into the global economy. By reducing settlement risk in FX [foreign exchange] transactions, vital to Israel's open economy, it reinforces the stability and efficiency of Israel's banks and financial system, and benefits the entire economy."

Several countries and companies already honour the shekel, Globes reports, but the CLS announcement gives an international symbolic stamp of approval to THE ISRAELI CURRENCY, RECOGNIZING IT AS ONE OF THE STRONGEST CURRENCIES IN THE WORLD.

"If there was a 'No' in Ireland or in another country, it would have a very negative effect for the EU. We will all pay a price for it, Ireland included, if this is not done in a proper way," he said. Meanwhile, an opinion poll for the Sunday Business Post put the 'yes' side at 41%, down three points, the 'no' side at 33%, up five, while 26% remain undecided.

Open Europe's Lorraine Mullally had an op-ed in the Irish edition of the Sunday Times, arguing that the Lisbon Treaty moves the EU towards a common defence and undermines Irish neutrality.

In Monday's Telegraph, Ambrose Evans-Pritchard noted that the Lisbon Treaty is the latest EU assault on the "Anglo-Celtic" way of doing business, arguing that Ireland must now "cast the ballot on the EU constitution for both islands". He argued, "THE TEXT STRIKES THE WORDS 'FREE AND UNDISTORTED COMPETITION' FROM THE CORE OBJECTIVES OF THE UNION. Corporatist aims will enjoy a higher legal status at the European Court (ECJ) and must prevail if the two clash. The Rhineland Model has locked in a permanent advantage."

DETAILS OF THE PLAN ARE BURIED IN DOCUMENTS detailing the European Commission's budget proposals. They show the Commission is to fund a study on "the feasibility of and obstacles to the creation of a federal police force for the EU." The EU has set up the Europol organisation to encourage greater co-operation between national police forces but THE LATEST PLAN WOULD REPLACE BRITAIN'S LOCALISED SYSTEM WITH ONE CONTROLLED FROM A SINGLE PLACE, PROBABLY BRUSSELS.

Shadow Home Secretary David Davis said last night: "This is a deeply alarming development. Responsibility for policing must remain in the hands of national governments, not a European force that is not accountable to the British public. The Government must stand up for British interests and make clear their opposition to this proposal at the very outset."

A spokeswoman for the European Commission last night said it did not support the idea of a single police force but was only pressing for greater co-operation between national police forces on tackling cross-border crime. But plans for the study WILL FUEL FEARS THAT BRUSSELS IS PLANNING A FRESH POWER GRAB ONCE THE EU CONSTITUTION PROCESS IS COMPLETED AT THE END OF THIS YEAR.

Open Europe's Neil O'Brien is quoted as saying "Most people in Britain would be horrified by the idea of a single European police force. No one wants this."

The group revealed that only 19 out of 79 UK MEPs were prepared to provide full answers. 14 MEPs replied, but gave only partial answers, while 46 REFUSED TO ANSWER THE QUESTIONS."

Conservative Home notes that "SUCH ARROGANCE STEMS, IN PART, FROM MEPS' ALMOST UNTOUCHABLE STATUS. The opaque selection process used by the Conservative Party meant that all incumbent MEPs were put straight back at the top of regional lists. The combination of a gerrymandered selection process and proportional representation means that IT'S ALMOST IMPOSSIBLE FOR ORDINARY VOTERS TO HOLD MEPS TO ACCOUNT."

Guido comments that "Cameron would do well to order the MEPs to be transparent about their expenses before the breakdown with the grassroots becomes total. Else the suspicion will grow that something shady is going on with these MEPs." The News of the World reported on potential conflicts of interest for MEPs receiving benefits from firms they are supposed to regulate.

WHEN I LAST COUNTED THERE WERE 99 DIFFERENT POLITICAL PARTIES REPRESENTED HERE, forming trans-national alliances within seven political groups. Seven is not a large number. The system caters well enough with seven groups and a small number of non-attached members. So why do the [conservative] PPE-ED and the [socialist] PSE insist now on CUTTING THE NUMBER OF PARTY POLITICAL GROUPS IN THE EUROPEAN PARLIAMENT?

The effect of this measure in the present parliament would be to shut down the UEN (with only six nationalities) and the Ind Dem group (with only 23 members). Whatever one's views about their politics, it cannot be argued that these small groups do not represent a legitimate strand of European public opinion. We live in a diverse Europe, and if the European Parliament is to be the credible forum for post-national democracy, all sorts of minority opinions have to be given effective, if proportionate representation.

It does not look well for the two large groups of conservatives and socialists to be domineering. They already have a lot of power to determine how the house is run and to influence legislation. The D'Hondt weighting system, which governs parliament's internal division of power, already gives the larger groups a disproportionate share of posts, money and speaking time. IT WILL NOT LOOK TO THE OUTSIDE WORLD LIKE A STEP FORWARD FOR DEMOCRACY. The result will be increased political incoherence which is exactly the opposite of what is needed AT A TIME WHEN THE PARLIAMENT STANDS ON THE THRESHOLD, THANKS TO THE TREATY OF LISBON, OF ASSUMING VERY IMPORTANT NEW RESPONSIBILITIES OVER A WIDE RANGE OF ISSUES.

They came came as thousands of people were moved from near a lake formed by landslides, amid fears the water could breach banks and deluge the area. The official death toll from the 12 May quake in Sichuan province is 67,183. About 20,790 people are listed as missing, with more than five million people homeless since the earthquake.

As the region continues to be shaken, 63 people were injured, including six critically, in the latest aftershocks in Qingchuan county, China's state-run Xinhua news agency reports. One of the aftershocks measured magnitude 5.7, according to the US Geological Survey. The same county was strongly shaken on Sunday, wrecking 300,000 more homes, killing eight people and injuring hundreds.

Meanwhile, about 30 towns were being evacuated from near the newly-formed lake because experts fear the build-up of water at the swollen Tangjiashan lake could burst the banks, deluging the area. Chinese soldiers have dug a channel to ease pressure from the so-called "quake lake". About 70,000 people have already been moved from nearby Mianyang city in Sichuan province, Xinhua said, with a further 80,000 still being moved.

The Asian tiger mosquito has already established itself in northern Italy where it has transmitted chikungunya fever to scores of people. The insect has also been detected in a dozen other European countries, including Germany and the Netherlands. Health experts are concerned that Britain could be the next country to be invaded after scientists at the Government's Health Protection Agency (HPA) at Porton Down in Wiltshire found that the UK climate is suitable for the mosquito to breed.

The Asian tiger mosquito, Aedes albopictus, has spread rapidly around the world due to the international trade in used car tyres, which carry the mosquito's eggs in trapped water inside the rim of the tyre. However, the popularity of lucky bamboo - a Chinese house plant that is transported in water-filled pots - has also spread the insect through ports such as Rotterdam.

The female mosquito can feed on human blood and is known for her quick, penetrating bite and the fact that she feeds throughout the day, and not just in the evening like many other mosquitoes. It is also known to transmit dengue fever and can carry about 20 other viral diseases.