A possible three-party coalition has emerged in Greece following Sunday's election, writes Kathimerini. It would be led by the centre-right New Democracy of Antonis Samaras and include the centre-left Pasok as well as the Democratic Left. Greece will have to ask for a third international bail-out as soon as a new government is formed, the Daily Telegraph writes. It says that while Samaras tried to forge a coalition with Pasok, his officials admitted that their first task would be to renegotiate the €130 billion bail-out agreed in May. Greece has won Europe a respite – now it must use it, writes a commentator in the Financial Times. It would be a mistake to provoke the final euro crisis. Extremism is in danger of taking hold in Greece, writes another commentator in the Financial Times under the headline “Back to the 1930s: the hammer, sickle and swastika”.
Spain's bond yields “threaten to spiral out of control”, the UK's Daily Telegraph writes. It says that Cristobal Montoro, Spain's economy minister, has warned that his country is in a “critical” condition and pleaded with the European Central Bank to act to calm the markets. Spain's Prime Minister Mariano Rajoy has said that linkages made between the banking system's risks with the sovereign-debt crisis have proved to be “extremely harmful”, ABC writes.
Spain's El País writes that the G20 has thrown its backing behind the EU's recapitalisation of Spain's banks.
A summit of world leaders from the G20 got under way in Los Cabos, Mexico, yesterday, with the eurozone's woes centre-stage, writes the Wall Street Journal. The paper writes that José Manuel Barroso, the president of the European Commission, appeared to be blaming the US's financial sector for causing the crisis in the eurozone, the paper writes. The UK's Guardian reports Barroso as insisting that the origins of the eurozone crisis lay in the “unorthodox policies of American capitalism”.
The International Monetary Fund has expanded its emergency fund to $456 billion (€362bn) after 12 more countries pledged funding, the UK's Daily Telegraph writes.
Le Monde is one of many papers with reports on the difficulties that US President Barack Obama is encountering in changing Russia's position on the conflict in Syria.
Süddeutsche Zeitung writes that nuclear talks between the international community and Iran in Moscow today might mark the end of the current diplomatic process if no agreement emerges.
With Mohammed Morsi, the candidate of the Muslim Brotherhood, poised to be declared the winner of Sunday's presidential run-off in Egypt, the military has taken additional powers, writes Al Ahram, prompting talk of a military coup. The UK's Guardian says the Muslim Brotherhood has vowed to face down Egypt's ruling generals in a “life or death” struggle over the country's political future, after declaring that its candidate had won the presidential election and would refuse to accept the junta's last-ditch attempts to engineer a constitutional coup. Poland's Gazeta Wyborcza is among the many other papers with reports.
Malta's permanent representative to the European Union has resigned, the Times of Malta reports. Richard Cachia Caruana quit after being subject to a vote of no-confidence in his national parliament over his ‘behind-the-scenes' role in 2008 in reversing a decision that Malta should pull out of NATO's Partnership for Peace programme. The ruling Nationalist Party has a one-seat majority in parliament, but Cachia Caruana lost the vote after one Nationalist MP voted with the opposition and another abstained.
Britain's Prime Minister David Cameron has said that the UK would gladly welcome companies seeking to escape French levels of taxation, Le Monde writes. “Our only hope is to look beyond the EU”, the UK's Daily Mail writes in an editorial that the UK has neglected the booming markets of China and India.
With battle lines drawn across the continent, the British Labour Party is hitching itself to the rising star of French President François Hollande, the UK's Daily Telegraph writes.
The German government is slowly retreating from its bid to install Wolfgang Schäuble, the German finance minister, as chairman of the Eurogroup, writes Frankfurter Allgemeine Zeitung. Schäuble had been widely expected to succeed Jean-Claude Juncker of Luxembourg.
Romania's Adevarul writes that the Nobel Prize-winning author and Holocaust survivor Elie Wiesel has returned an award given to him by Hungary in protest at the reburial of an ethnic Hungarian author József Nyiro and at the rehabilitation of fascist figures.
Croatia's football loss against Spain last night provoked violent riots in Mostar, the Bosnian Croat main town, writes Nezavisne novine.
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