MEDIA REACTION: AIG, EU, PAKISTAN, NATO, KOREA, POPE,

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SUBJECT: MEDIA REACTION: AIG, EU, PAKISTAN, NATO, KOREA, POPE,
CLIMATE, ECONOMY


1. Lead Stories Summary

2. AIG Controversy

3. EU Summit

4. Financial Crisis

5. U.S. Strikes in Pakistan

6. French Return to NATO Command

7. Climate Protection

8. North Korean Missile Test

9. Papal Visit to Africa



1. Lead Stories Summary

ZDF-TV's early evening newscast Heute, ARD-TV's early evening
newscast Tagesschau and most major papers opened with stories on a
federal court's decision that single parents have to start working
full time earlier. Editorials focused on the situation of single
parents, the pope's visit to Africa, and the financial crisis.


2. AIG Controversy

Die Welt judged under the headline: "Bonus Payments Turn into
Bombshells," that "for the first time in his term, Barack Obama is
now faced with harsh criticism. Especially his Treasury Secretary
Timothy Geithner has demonstrated little sensitivity for the mood in
society and obviously shied away from refusing AIG officials bonus
payments. In view of the enormous sums of money that the U.S.
taxpayers are now required to pay for the banking bailout program,
these payments may be insignificant, but politically they are a
bombshell. Obama will now have great difficulty prompting Congress
to approve new funds for additional stimulus for the financial
system. In this crisis, teachers, clerks, and factory workers have
voluntarily agreed to receive less money, and there is no reason why
managers, who are responsible for the crisis, should not do the
same."

In a front-page editorial, Handelsblatt argued: "With his criticism
of bonus payments for AIG managers, the U.S. president wants to
catch up with a movement that is hurrying away. But it could be
possible that this is the first great mistake of his term. He is
swapping aplomb for populism and is now making his work more
difficult. What is happening with AIFG is only the beginning. In
the coming months, many more unsavory details will come to the fore
which will have the potential of creating a public outrage. Does
Obama then always want to become the mouthpiece of the dissatisfied?
Then he will not make any progress in resolving the crisis. The
president should be the voice of reason. There are already enough
fuming and angry politicians in Washington. On a short-term basis
Obama is now glossing over the problems of his administration
because it has not yet found a way out of the banking mess. And
this is particularly true for his Treasury Secretary, Timothy
Geithner. But the starting point to get over the crisis lies
there."

Frankfurter Rundschau opined: "the recipient of bonus payments are
the managers who created this mess. That is why it is no wonder
that the U.S. taxpayer feels blackmailed. Bomb planters are now
receiving bonus payments for the defusing of their own explosives.
The political effect, however, is dangerous. It is hardly possible
to convey to the American people any more that new state bailout
programs might be necessary. The first who could feel this at the
end of March could be General Motors & Co."


3. EU Summit

Under the headline, "Europe Is Checking Out," Handelsblatt had this
to say: "Is the EU able to cope with the economic and financial
crisis? Doubts are not only allowed buy absolutely necessary,
because the answer the EU wants to give at its summit meeting today
and tomorrow will not convince anyone: no new economic stimulus
package, no clear promise for assistance of the Eastern European
countries, and no realistic consolidation strategy for the public
households. In some parts the draft [for the final communiqu]
reads like a declaration of helplessness. Instead of courageously
thinking about new solutions, the EU only confirms its former,
outdated, Lisbon strategy. This borders on schizophrenia. The EU
is faced with the toughest test of its existence and its leaders are
pursuing a 'business-as-usual' strategy. Unfortunately, there is no
hope for an improvement as there are elections for the European
Parliament in June. That is why new initiatives barely have any
chance. Europe is checking out."


4. Financial Crisis

Frankfurter Allgemeine judged: "The most important lever that could
prevent banks from falling back into their former excesses is the
amount of capital reserves they must keep. The more capital
reserves the banks must keep and the stricter the rules for the
capital resources to get their businesses running, the less likely
are the excesses of the past. New rules on the liquidity of banks
could avoid the risky business policies of the past. But it would
be a fallacy to assume that these measures would guarantee that the
world could be saved from the next financial crisis. The oversight
agencies only run behind developments. That is why the next crisis
can be avoided only if critics are taken seriously."


5. U.S. Strikes in Pakistan

die tageszeitung commented: "It is one of the announcements during
the election campaign that many of Barack Obama's supporters hoped
that he did not mean. Unfortunately, President Obama keeps his word
and has proposed expanding the combat zone against the Taliban and
al Qaida into further parts of Pakistan. He does not deceive his
voters but plays a dangerous game with fire.... The allies
involved, including Germany, must finally stop to wait for the
United States. Obama said he would listen. It's time to tell him
something."


6. French Return to NATO Command

Sueddeutsche commented: "Maybe Sarkozy, if reelected, will be seen
at the end of his presidency in 2017 as the founder of the Sixth
Republic. It is however unlikely that the head of state of a key
European country will create a French myth. It is certain that the
fifth successor of Charles de Gaulle will have brought Gaullism,
which the generations of Chirac and Mitterrand still respected, to
an end.... For de Gaulle, the Republic was always the focal
point.... When he was to submit to U.S. hegemony, he withdrew his
army from the NATO command. The fact that Sarkozy, unlike his
predecessors, is reintegrating the army is a definite breach with
Gaullism. Sarkozy is a friend of America and admires Barack Obama.
De Gaulle was skeptical about America and did not know what to do
with JFK. Gaullism always included distance to America."

Die Welt editorialized: "NATO is not the biblical father and France
is not the lost son. The National Assembly only approved the facts.
Regardless of De Gaulle and Sarkozy, the national interest is the
focal point.... De Gaulle and Sarkozy share two convictions: first,
France's sovereignty must be protected under all circumstances.
Secondly, nuclear affairs cannot be shared, neither with the Germans
nor the Americans.... De Gaulle was a realist as much as Sarkozy is
one. Only the circumstances have changed."

Frankfurter Allgemeine remarked: "The return to NATO was probably
his last coup for a long time. Sarkozy's idea was not popular among
his supporters. However, his party is even more concerned over the
social explosiveness in France. What was barely possible in a
period of growth is increasingly difficult in a crisis. You can
now often hear in Paris that France faces social unrest. Sarkozy
does not launch reforms because he hopes he will survive if he keeps
his head down."


7. Climate Protection

Tagesspiegel opined: "This would be the right time for the Europeans
to send a clear signal with respect to the financing of global
climate protection, but we cannot expect this from the EU summit.
Before President Obama has not revealed how much money he wants to
spend on climate protection, the Europeans do not want to make any
promises to the developing countries. But those who are now
investing into a future with less carbon dioxide will have good
opportunities to be on the winner's side after the crisis. The EU
and the United States race with respect to climate protection and
not play games."

Weekly Die Zeit had this to say: "The economic and financial crisis
that was caused by human beings is creating devastations in the
economic universe. The damage is great but not irreparable. But
global warming that is also caused by human beings is jeopardizing
the earth as a living space, and this damage is irreparable.
Nevertheless, no nation or group of nations, including the EU, has
resolutely put up a fight against climate change. But the longer
the economic crisis lasts, the more Europe's moderate ambitions are
fading, while the new U.S. president must first match his 'green
announcements' with deeds. This struggle, however, requires more
than windmills, more than fuel efficient cars and more than the
insulation of houses. What is now necessary is a historical pact
between North and South, between industrialized and threshold and
developing nations. The economic crisis is no excuse. On the
contrary, it shows which enormous amounts of money can be forked out
within a brief period of time."


8. North Korean Missile Test

Frankfurter Allgemeine Zeitung carried a report on the planned North
Korean missile test and noted: "The missile test planned for the
beginning of April is provoking North Korea's neighbors, allies, and
desired partners. Kim Jong-il and his regime are playing a risky
poker game. With the launch of a long-range missile, North Korea
will violate a UN resolution that was unanimously adopted, including
with the support of China, after DPRK's nuclear test in 1996. Most
observers agree that, with its belligerent activities, North Korea
is primarily interested in entering into direct talks with the
United States. Pyongyang hopes for a change of course of the U.S.
policy towards Korea under President Obama. But it is not only the
change of the international situation that is driving North Korea
and Kim Jong-il to pursue such a provocative policy. The leader is
under time pressure because 2012 is approaching, when the country
will celebrate the 100 birthday of state founder Kim Il-sung. By
then, North Korea is supposed to be a thriving and powerful country.
Time will tell whether the planned missile test will lead to new
talks with the U.S. and thus to economic assistance. In any case,
Kim Jong-il will be able to demonstrate to his people military
potential with a successful missile test. If North Korea does not
turn into a thriving country by 2012, then it should at least be on
the path to become a powerful country."


9. Papal Visit to Africa

Headlines: Sueddeutsche: "Harsh criticism of pope over AIDS
policy," Tagesspiegel: "Paris says Pope is a health risk - Outrage
over Benedict's statement on the fight against AIDS"

Tagesspiegel's front-page editorial under the headline "Danger!"
warned against Pope Benedict's statement on AIDS and HIV, saying:
"Harm has been done across the world. The 'Pope of hope' as his
supporter welcomed him has buried all hopes before his landing.
Benedict does not say such things by mistake. The fact that his
spokesman is trying once again to explain his boss speaks volumes -
not in favor of the pope's farsightedness. His statement is so
disastrous particularly because so many Africans pinned their hopes
on him."

Regional Maerkische Oderzeitung commented: "First the Holocaust
denier Williamson, now condoms and AIDS-it appears as if the pope is
not just becoming estranged from Catholics but is indeed out of
touch with reality.... The idea that the use of condoms aggravates
AIDS is absurd."

Regional Neue Westfaelische noted: "Sexual abstinence will not cure
AIDS but is a way of life priests have chosen. Pope Benedict's
recent statement raises the question of how much out of touch with
life a pope can be. Those who prevent prevention in Africa accept
that the dying will go on."


KOENIG