Europe

Sen. Oskar Peterlini officially presented to the Italian Senate a "Motion for the Reorganization of the International Monetary System: the New Bretton Woods." The motion calls upon the Italian government to "act internationally to promote" a new system, "modeled on the New Bretton Woods as proposed by the American economist, Lyndon LaRouche."

In response to a question from EIR, who asked if Tremonti's New Bretton Woods proposal would be on the agenda, as Italy takes the chair of the G8 this year, Italian Foreign Minister Franco Frattini replied, "Tremonti intends to propose a new item for the G8 finance ministers which is to build a new Bretton Woods arrangement."

Dmitry Medvedev has promised Russian business there will be no shortage of bank finance. He said the government would minimize the negative impact of the global financial crisis and the military conflict in South Ossetia.

The Central Bank pumped a record $13 Billion into banks on Friday, as it battles the spread of the liquidity crisis to Russia. With stocks hitting a 2-year low this week, Russia's economic woes are deepening. Experts warn it might take 2 years before the RTS recovers.

The International Monetary Fund said on Wednesday it has reached an agreement in principle with Georgia on a 750 million-dollar financial package.

Moscow has warned Washington that it will respond to deployment of interceptor missiles and radar facility in Poland and the Czech Republic.

Condition in article four of Italian-Libyan friendship treaty signed on Saturday by Silvio Berlusconi. Prime Minister’s Office replies.

Italian Prime Minister Silvio Berlusconi said that a crisis had been defused. "The situation could have been the detonator for a serious crisis," he said. It was especially Great Britain's position—together with eastern European countries—that could have shifted the EU onto a confrontation course.

Russian Foreign Minister Sergey Lavrov said Tuesday that his country appreciates Turkey's efforts to advance the solution process for the Caucasus issue, the semi-official Anatolia news agency reported.

Germans see American President George W. Bush as a greater danger to global peace, the Super Illu magazine cited Sunday an opinion poll released by the Leipzig Institute for Market Research.

Italy agreed to pay Libya $5 billion as compensation for its 30-year occupation of the country during the 20th century. The money will be invested by Italy over a 25-year period.

However, top general in Moscow says troops will maintain 18 checkpoints in security zone around South Ossetia, which includes airport near Senaki.

Russia is claiming the right to increase the number of troops it has in and around South Ossetia, where it is also establishing additional checkpoints in response to what it says is a "continued Georgian threat."

Russia is ready to supply Syria with defensive weapons, the Russian foreign minister said on Thursday following a meeting between the two countries leaders in Russia's Black Sea resort of Sochi.

The United States expects to help Georgia rebuild its military following the conflict with Russia over breakaway South Ossetia, a top U.S. general has said.