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...program; after that, Bush said, he will think about going ahead with an energy and food initiative. Pyongyang is holding out for more. Despite a stream of assurances from Washington that it has no plans for a military strike on North Korea, Pyongyang insists on a long-term nonagression pact. Diplomats say it is also pushing for diplomatic relations with the U.S. After his meetings in Seoul, Kelly predicted a "very slow process" ahead. "We are going to have to talk and work together and communicate with other people, including with North Korea, very, very clearly." The smart money...

Author: /time Magazine | Title: World Watch | 1/19/2003 | See Source »

...likely to average just over 1.5%, with some predictions as low as .9%. The natural reaction of any government faced with such stagnation: kick start the economy by cutting taxes and maintaining public spending. Trouble is, euro-zone governments are hobbled by the terms of the Stability and Growth Pact, which proscribes a budget deficit greater than 3% of GDP. Last year in Germany, declining growth and higher expenditures on things like unemployment meant the government ran a federal budget deficit of 3.7%. This year, in order to comply with an order from Brussels to clean up its fiscal...

Author: /time Magazine | Title: Marking Down the Future | 1/19/2003 | See Source »

...That's a question that France - which has already been involved in a face-off with Brussels over the pact's restrictions - may also have to answer. The program that President Jacques Chirac unveiled when standing for re-election last March assumed 3% growth over the next five years. Chirac told voters that such expansion would allow him to cut income taxes by a third, lower some corporate rates, and boost spending on police and defense. But if he keeps his promises, it will be impossible for France to toe Brussels' line. In the past, Chirac has had a major...

Author: /time Magazine | Title: Marking Down the Future | 1/19/2003 | See Source »

...country's sovereignty and security. The North Korean response was decidedly snotty (it described President Bush's offer as a "deceptive drama to mislead world opinion") but analysts interpret the remarks as typically shrill North Korean bargaining. Pyongyang will try and hold out for a formal non-aggression pact, while the Bush Administration will likely offer some lesser form of written security guarantee. But the nuclear brinkmanship appears designed primarily as a negotiating tactic to pressure the U.S. and its allies into new concessions...

Author: /time Magazine | Title: North Korea: An 'Evil' Bush Can Bargain With? | 1/15/2003 | See Source »

...injunctions against killing civilians inside Israel have had little impact in recent months. The latest bombings were perpetrated by members of a militia based in his own Fatah movement, and were carried out even as Palestinian and Egyptian leaders meeting in Cairo were engaged in tough negotiations around a pact to end attacks inside Israel, so as to avoid stampeding Israeli voters to the right...

Author: /time Magazine | Title: Tel Aviv Terror a Reminder of a Bloody Stalemate | 1/6/2003 | See Source »

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