EU bank bail-out plan is agreed

Germany, France, Italy and a further 12 European countries last night unveiled a "comprehensive" plan for salvaging their banking systems from potential ruin, reports the Guardian

It says the move comes as panicked European leaders met to try to ward off more financial meltdown before the markets reopen today.

An emergency summit in Paris of the 15 countries using the euro single currency was encouraged by Gordon Brown to adopt the rescue plan he launched last week as the template for an increasingly global approach to the financial crisis.

Meanwhile, Le Monde reports that certain recapitalisation amounts are already known, with €10bn being delivered in Belgium, €30bn in Spain, and €36bn in the Netherlands. The paper adds that the UK is intending to put forward around €62bn in recapilisation funds.

Austrian far-rightist killed in road smash

Jörg Haider, the controversial and charismatic far-right politician who transformed Austrian politics in recent decades, died of injuries sustained in a car accident early Saturday, reports the IHT

Haider's sudden death touched off an outpouring of shock and mourning in Austria, and it occurred at a crucial political moment for the country: between the parliamentary election there two weeks ago, in which right-wing parties made tremendous gains, and the formation of the new government.

EU to consider restarting EU-Russia talks

France and Germany are leading calls for the EU to end the suspension of partnership talks with Moscow imposed over Russia's war with Georgia, reports the Kyiv Post.

However the paper adds that the UK, Sweden and a number of ex-communist members are in no rush to restart talks with Moscow.

EU foreign ministers will discuss the issue today in Luxembourg, and will decide whether Moscow has complied with a French EU presidency brokered agreement to pull-out from so-called Buffer zones around South Ossetia and Abkhazia.

Centre-right ahead in Lithuanian elections

Lithuania’s Homeland Union party was the clear winner of Sunday’s general election, according to early exit polls reports FT Europe.

The paper adds that if the polls are confirmed, the centre-right party will return to power following seven years in opposition.

The final outcome is still uncertain reports the Telegraph as Sunday’s vote only covered 70 of the 141 seats in the Lithuania parliament. The remaining 71 seats will be decided by the end of the month in individual votes.

However with the first round results indicating no clear overall winner, the Telegraph adds that difficult talks between party leaders are expected.

EU CAP reform could help defeat drugs trade, says Columbian foreign minister

Columbia's foreign affairs chief has said that the EU could strike a crucial blow against the drugs trade by reforming the CAP and allowing free access to the European market, reports the Daily Telegraph.

"Every inch that we add to legal cultivation and legal activity is an inch we take away from drug traffickers and terrorists. That's the reason why we need full access to the European market," said Jaime Bermudez.

There have been delays to a cooperation agreement between the EU and South America due to objections from Bolivia and Ecuador, and the paper reprots that Bermudez is keen to establish a separate bilateral agreement between Colombia and the EU.

Soros criticises slow reaction of EU to financial turmoil

Billionaire George Soros on Sunday criticized US and EU officials for taking too long to take action on the financial crisis, reports the IHT.

Speaking on the sidelines of the annual World Bank and International Monetary Fund meeting, Soros said that member states "got religion and realized this is a serious problem they've got to address." European governments have recently announced they would guarantee new debt issued by banks.

EU to protect industry competitiveness from carbon trading plans

Energy-intensive industries are set to receive a huge cash boost from the European Commission as part of a controversial move to protect Europe's industrial sector from world recession, reports the Guardian.

Within weeks the EU is to debate whether to allow European industrial giants tens of millions of euros off carbon allowances they have to buy as part of the Emission Trading Scheme (ETS).

Mandelson goes to Lords amid new controversy

Peter Mandelson will take his seat in the UK House of Lords today, but his return to British politics has been marked by fresh controversy concerning his connections and personal finances from his four years as the European trade commissioner.

The Sunday Times reported that he attended a reception on a 238ft yacht, Queen K, in Corfu this summer hosted by the Russian billionaire Oleg Deripaska, who is a major importer of aluminium into the EU. Mandelson's presence on the yacht was questioned because he reduced tariffs on aluminium imports into the EU from six to three per cent.