CANADA

CANADA

The Toronto Star, Toronto, Jan. 27: When U.S. President Barack Obama visits Ottawa in the coming weeks, he and Prime Minister Stephen Harper plan to “focus on the economy in particular,” along with climate change and energy. At least, that is Harper’s understanding, after speaking to Obama on the phone. ... But that’s not all Obama has in mind.

According to the White House, Obama raised “the shared challenges we face in Afghanistan,” as his own first order of business, along with climate change and the economy. That’s no big surprise, as Obama prepares to shift U.S. troops from Iraq to Afghanistan, and canvasses allies for more political and practical support. But it does pose a potential headache for Harper and his minority government.

Troop pullout

While Harper personally might favor keeping our 2,700 troops in Kandahar, Parliament has voted for a 2011 pullout. And a majority of Canadians agree. We have already spent more than $8 billion on the mission, and have lost 107 troops, a diplomat and two aid workers.

Even so, Obama’s Afghan focus means Harper had better be ready to resist pressure to sign on for another Kandahar tour. There are other ways we can assist. By stepping up aid, for example.

SWEDEN

Svenska Dagbladet, Stockholm, Jan. 27: Iceland’s government threw in the towel yesterday. It doesn’t exactly come as a surprise. On the contrary, what is strange is that Geir Haarde’s administration could hang on for so long.

The financial crisis has hit the island country rock hard. The collapse of the country’s expansive banks has led to a collapse also of the currency, national budget and economic growth.

Foreign currencies

Growth domestic product is expected to shrink by 10-12 percent this year and many Icelanders see their purchasing power cut by one-fourth. Households and companies have taken up loans in foreign currencies and now see their costs shooting through the roof as the krona slumps.

Of course, voters exploded and demanded that those in power be held accountable. But that’s easier said than done.

The alternative to Haarde’s coalition of the Independence Party and the Social Democratic Alliance Party is the left-green movement. But that is as skeptical to the business sector as it is to European Union membership and can only contribute to even greater insecurity among investors and trading partners around the world.

BRITAIN

The Times, London, Jan. 28: The rules for government intervention in the markets have been ripped up by the financial crisis. Even a few months ago the news that public money was to be given to the car industry to see it through a cashflow crisis would have been greeted with incredulity. Yesterday Lord Mandelson, the Business Secretary, announced just that. In the package to help the car industry, the Government will guarantee loans to a total value of 2.3 billion pounds.

Unfreezing credit

Lord Mandelson was at pains to emphasize that the package is not a “bailout”. This is his attempt to avert the plea of every struggling industry for public funds. In fact, his announcement is designed to unfreeze credit in the financing wing of the industry, rather than give a subsidy to the operating lines. This is, he emphasized, a profitable industry that needs a temporary dispensation. It would be foolish to allow job losses all the way down the supply chain if that can be prevented by the timely supply of capital.