The following are the top stories in the Maltese and overseas press:

The Times reports that Brussels has told Malta to reform pensions and the COLA mechanism by next year and to ensure that there are fewer young school-leavers. It also reports that the government and the opposition have been urged to reactivate the Committee on Strengthening Democracy.

The Malta Independent says the Speaker yesterday avoided making reference to ‘pressure on MPs’ in the wake of the divorce referendum.

MaltaToday says Tonio Fenech is under fire as two contractors will be taken in court to face bribery claims.

In-Nazzjon leads with the Speaker’s call for autonomy for Parliament.

l-orizzont asks what has happened to the Sliema traffic plan. It also reports how social cases in hospital will be made to contribute part of their pension.

The overseas press

Colonel Gaddafi has appeared on Al-Jamahiriya state television and vowed to fight to the death as Nato forces stepped up their bombardment of the Libyan capital. The leader made an audio broadcast from a secret location before releasing footage of him apparently meeting tribal chiefs to show he was unaffected by the heavy bombardment of Tripoli. It is the first time the leader has spoken publically since state television showed him holding talks with a senior official on May 19.

Al Arabiya says waves of air strikes took place across the city in the heaviest bombing of the area since Nato forces began their campaign. Libyan government spokesman Moussa Ibrahim claimed at least 31 people were killed in 60 Nato air strikes on Tripoli. In London, Sky News quotes the Ministry of Defence saying Nato targets included a secret police headquarters in the heart of Tripoli and a major military installation on the outskirts. The missions were flown as part of a co-ordinated series of precision attacks throughout the day and night by Nato aircraft targeting intelligence and military facilities in the Libyan capital.

The Washington Times reports President Obama said it was just a matter of time before Col Gaddafi was ousted. Speaking at a news conference with German Chancellor Angela Merkel, the President said the regime forces were “being pushed back, being incapacitated”. Chancellor Merkel said Germany was “committed to the Libyan cause” and the success of a Nato operation to impose a no-fly zone over Libya.

Deutsche Welle says Mr Obama expressed concerns about the current European debt crisis, saying that any "uncontrolled spiral" and default in the eurozone would be disastrous for the global economy. Mrs Merkel said Germany and its European partners were aware of their obligations to the global economy and would ensure that the financial woes of no single country will be allowed to destabilize the euro.

The New York Times says Britain and France were intensifying efforts for a UN Security Council vote condemning the Syrian government’s response to months of protests. The draft document did not suggest military action or sanctions against Syria. The news came amid reports that Jisr al-Shughur residents were fleeing to the Turkish border, a day after government vowed retaliation for "deadly ambush" which killed 120 security personnel.

American officials quoted by the BBC say that the President Ali Abdullah Saleh of Yemen was most seriously injured in last week’s rocket attack on his compound than previously thought. He was reported to have suffered 40 per cent burns and bleeding inside his skull. Meanwhile, Al Jazeera reports that thousands gathered outside vice-president's residence after the government rejected an offer for talks about a political transition as "ridiculous".

EU Observer reports that the European agriculture commissioner has proposed a €150-million compensation fund for farmers hit by the E. coli outbreak. However, the figure could increase depending upon the demand. European fruit and vegetable producers have seen their sales hit hard by the outbreak, and by false alarms raised as to the possible origin of the deadly bacteria. Meanwhile, EU Health Commissioner John Dalli also announced that European food safety experts had been sent to Germany to help local authorities pinpoint the source of the outbreak.

Global Post says Chinese scientists have genetically modified dairy cows to produce human breast milk, and hope to be selling it in supermarkets within three years. Scientists in Beijing said the the milk produced by the transgenic cows is identical to the human variety, with the same immune-boosting and antibacterial qualities as breast milk.

In the UK, The Daily Telegraph reports that millions of households have been warned they face "unacceptable" rises in their energy bills after Scottish Power announced average increase of nearly £200 a year. The “i” newspaper reports on soaring food bills, rising gas charges and claims high oil costs could also spell the end of low-cost flights.

MSN Money says a man has been charged for paying a disputed bill with 2,500 coins. Jason West, from Utah, was facing a disorderly conduct charge, which carried a possible fine of $140, after he paid a $25 medical bill entirely in coins. Staff at the clinic were reportedly upset by the conduct of Mr West, who did not think he owed any money. Assistant Vernal Police chief Keith Campbell told the Salt Lake City-based Deseret News: "After asking if they accepted cash, West dumped 2,500 pennies onto the counter and demanded that they count it. The pennies were strewn about the counter and the floor."