Russian President Vladimir Putin threatened Western Europe with a redirection of Moscow’s energy “rivers” to Asia at a joint press conference in Tomsk, Russia, with German Chancellor Angela Merkel. The press conference marked the conclusion of the eighth German-Russian Summit. Two weeks ago the head of Gazprom warned the EU to allow his company to develop networks in Western Europe or face supply cuts.
Peru’s Minister of Commerce, Alfredo Ferrero said that the country will not turn back its plan to sign a free trade agreement with the United States, and that he hopes Congress will ratify the deal after the second round of the presidential election, to be held at the end of May. Venezuelan president, Hugo Chávez, announced Venezuela’s withdrawal from the Andean Community to protest Peru, Colombia and Ecuador’s accepting the free trade deal with the US. Peru signed more than two weeks ago but the deal must be ratified by the Congresses of both countries to enter in use. Nationalist Ollanta Humala and Social Democrat Alan García are competing in the second round of the election. Humala, who has the political support of Chávez and is feared by investors because of his plan to nationalize the economy, is against the agreement, whereas García supports the deal on the condition that Peru’s agricultural sectors that would be harmed are compensated.
The main demand of hundreds of demonstrators who commemorated International Workers' Day in Quito, Ecuador on Monday was the rejection of the free trade agreement with the USA, and the presence of US oil firm Occidental. Immigrant organizations also presented demands: some turned up outside the US embassy to express their discontent with the country's migration policies.
Police blocked hundreds of activists who tried to approach the Filipino Presidential palace on Monday, demanding President Gloria Macapagal Arroyo’s ouster over vote-rigging and corruption allegations. Government troops and police, on the highest security alert, have banned protests near the riverside Malacanang palace in the capital amid rumours of a coup against the president.
Taiwan’s Council for Economic Planning and Development said that economic growth slowed in March 2006. The index of leading indicators declined to 107.2 points, a decline of 2.3% from February. However the total score of monitoring indicators for the month indicated steady growth for the eighth consecutive month, after five months of slowing growth last year. The index comprises seven indicators, including wholesale prices and export orders, designed to measure economic activity three months ahead.
Poland’s Monetary Policy Council said that there is no possibility of further interest rate cuts, and that next year it will be possible to increase rates. In the opinion of Council member Halina Wasilewska-Trenkner inflation will remain low over the next few months. The consumer price index grew 0.4% in March on the previous year, and 0.7% in February.