The World

1 | France Every Country for Itself? Detroit’s automakers aren’t the only ones getting a helping hand. French President Nicolas Sarkozy has proposed loans of $3.9 billion each to Peugeot Citroën and Renault in exchange for promises that the companies won’t enact layoffs in France. The proposal drew charges of protectionism from other E.U. members, who say the plan could force the carmakers to cut workers in other countries. Other recent E.U. auto-assistance deals:

BRITAIN Carmakers will have access to $3.2 billion in loans, some of which is intended to encourage more fuel-efficient vehicles

ITALY The government will offer payments of $1,900 to consumers who trade in older models to buy new vehicles

GERMANY People who trade in a car that’s at least nine years old will get $3,200 toward the purchase of a new one

PORTUGAL A $1.2 billion stimulus package was approved for the auto industry, including loans for car and parts exporters

2 | Pakistan Movement On Mumbai Attacks In a leaked report from Pakistan’s government about last November’s terrorist attacks in Mumbai, officials purportedly admitted that at least five of the 10 gunmen who killed more than 160 people during the three-day rampage were of Pakistani origin. Although investigators in Islamabad had previously confirmed that the lone surviving gunman (in Indian custody) is Pakistani, they had repeatedly denied that the others were from their country. The report, which was expected to be made public by Feb. 13, also says the plot was hatched via the Internet in Dubai and an unnamed European country.

3 | Tehran Khatami Makes a Comeback Former two-term Iranian President Mohammed Khatami announced that he plans to run again, in upcoming elections scheduled for June. The liberal leader and respected cleric was criticized for his inability to follow through on his reformist agenda while in office. Khatami said he considers running against the incumbent, Mahmoud Ahmadinejad, a “duty,” claiming that drastic political changes are needed to prevent further harm to Iran’s economy and international image.

4 | Australia Engulfed in Flames With no mandatory evacuation system in place, the deadliest wildfires in Australia’s history have killed at least 181 people and destroyed more than 750 homes. Some 1,100 sq. mi. (2,850 sq km) have burned. Authorities say at least one of the fires, which began near Melbourne on Feb. 7, was arson. Prime Minister Kevin Rudd called the act “mass murder.”

5 | California Decrowding The Prisons A federal panel has tentatively ruled that California’s prison population–about 153,000 inmates spread over 33 facilities–must be reduced by as many as 55,000 within three years. The decision is the culmination of a long-running attempt to remedy the state prison system’s problems with overcrowding and poor medical care:

July 2005 Federal Judge Thelton Henderson takes control of the state’s prison health-care system, placing it under the control of a federal receiver or health-care czar.

JUNE 2006 Governor Arnold Schwarzenegger convenes a special legislative session to discuss overcrowding and recidivism. He proposes a $6 billion plan to build more prison space.

MAY 2007 The governor signs Assembly Bill 900 to “provide critical relief to prison overcrowding” by creating more room and sending some prisoners out of state.

FEBRUARY 2009 The total in-state corrections population is down 4.1% from the previous year.

6 | Madagascar A BLOODY CRACKDOWN Police killed more than 25 protesters on Feb. 7 in Antananarivo, the capital, when they fired into a crowd that was demanding the ouster of President Marc Ravolomanana. The episode came a week after Antananarivo’s mayor and media entrepreneur, Andry Rajoelina, proclaimed himself the country’s new ruler and began hosting daily rallies to deride the nation’s “millionaire dictator.” Ravolomanana later blamed the rallies for inciting the crowd and declared that he had removed the mayor from his post, though Rajoelina has refused to leave office.

7 | Washington Coffins, Uncovered? Defense Secretary Robert Gates has ordered a review of the 1991 policy that bars the media from taking photographs of the flag-draped coffins of service members killed overseas, a restriction much criticized since U.S. troops have been in Iraq and Afghanistan. Gates said he may lift the ban “if the needs of the families can be met and the privacy concerns can be addressed.” He said the review is on a “short deadline.”

8 | Afghanistan A Deadly Raid in Kabul’s Heart On the eve of a visit by Richard Holbrooke, the U.S. special envoy to Pakistan and Afghanistan, eight suicide bombers and attackers armed with assault rifles struck three government buildings in Kabul on Feb. 12, killing at least 20 people and wounding 57. Taliban spokesmen quickly claimed responsibility for the attacks, saying they were in revenge for the mistreatment of jailed insurgents.

9 | Zimbabwe Unity at Last? Opposition leader Morgan Tsvangirai was sworn in on Feb. 11 as the country’s new Prime Minister, after nearly 11 months of political violence and stalled negotiations with controversial leader Robert Mugabe, who refused to step down as President despite losing the March 29 presidential election to Tsvangirai. More than 100 members of Tsvangirai’s political party, however, remain in police custody.

10 | Washington Save the Economy, Save the World Calling the Bush Administration’s financial-rescue plan “late and inadequate,” Treasury Secretary Timothy Geithner outlined a revamped plan for stabilizing the ailing U.S. economy. Markets fell in response to the proposal, which critics hammered for offering few details. But Geithner laid out several key goals:

Financial institutions with more than $100 billion in assets will be forced to pass government “stress tests” to assess whether they are prepared to keep lending during future economic downturns.

TARP Eligible banks will be permitted to access capital remaining in the $700 billion Troubled Asset Relief Program. Recipients will be required to show how the funds would promote new lending.

An existing consumer- and business-lending program will be expanded through a new initiative that will leverage up to $1 trillion to unfreeze credit and rekindle moribund secondary lending markets.

ASSETS In an effort to cleanse banks’ balance sheets, the government will spend up to $1 trillion on a Public-Private Investment Fund that will provide private investors with incentives to acquire toxic assets.

The Treasury and Federal Reserve will jointly spend $50 billion to stem home foreclosures by reducing monthly payments and establishing modification guidelines for existing loans.

RECESSION WATCH

As the economic crisis continues, more households are growing their own vegetables as a way to save cash. Seed sales at two gardening companies, W. Atlee Burpee and Park Seed, have soared 20% in 2009. The National Gardening Association expects home gardening in general to increase 20% this year.