Press digest

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

The Times leads with Joseph Muscat’s remarks yesterday that there will be instability, whatever the outcome of the no confidence debate.

The Malta Independent reports that the IMF has projected lower growth for Malta than the Budget forecast. It also reports how Joseph Muscat yesterday gave his views on the different possible outcomes of the no-confidence vote.

l-orizzont gives prominence to further criticism of the eyesore created through extra storeys added to a building in Valletta which will be an extension to the law courts. It also reports that the police still have to establish the motive that led to the double homicide on New Year’s Day. The main headline is Muscat’s call for a clear outcome to the no-confidence debate.

In-Nazzjon says Joseph Muscat’s remarks yesterday confirmed his quest for power.

The overseas press

Kathimerini reports that negotiators have delayed the deadline for a deal on a massive Greek debt write-down. Greek finance ministry sources said officials had given themselves another three weeks to clinch the agreement, which is aimed at cutting Athens' debt by about €100 billion, a prerequisite for a second eurozone-IMF bailout. The news from Athens came as eurozone finance ministers meeting in Brussels set out a treaty for a new bailout fund and opened discussions on boosting its lending capacity.

Meanwhile, Deutsche Welle says IMF managing director Christine Lagarde has warned of dire consequences should Europe's stronger economies fail to do enough to head off the eurozone's sovereign debt crisis. Speaking at the German Council on Foreign Relations think tank in Berlin, Lagarde said that the crisis, which could lead to a recession in the eurozone, was a threat not only for Europe, but was also the biggest current risk for the global economy. She proposed "folding" €250 billion of leftover cash in the eurozone's rescue pot into a new permanent bailout fund, partly to assist in battling the crisis, both in the eurozone and further afield.

According to Italian government sources quoted by Ansa, European commissioner for economic and monetary affairs Olli Rehn expressed "great appreciation" for the Italian Prime Minister Mario Monti’s austerity package and growth measures to help ease the eurozone's sovereign-debt crisis. Monti was in Brussels presenting his liberalisation reforms before euorozone finance ministers. The package includes measures to increase the number of taxis, pharmacies and notary offices and open up petrol distribution to greater competition.

ABC reports the European Union has approved some of the toughest sanctions yet imposed by the West against Iran, including a ban on oil imports and a freeze on Iran's central bank assets. Oil prices have risen to near $111 (€86.20) per barrel after the EU announcement. The move aims to curb Tehran's nuclear ambitions but could further harm EU-Iranian ties. Meanwhile, US and European aircraft and warships have been sent to areas near the Straits of Hormuz after Tehran threatened to respond to the embargo by closing down the strategic oil shipping route.

Tripoli Post says forces loyal to Libya’s late leader Muammar Gaddafi attacked the former regime stronghold of Bani Walid today, killing at least four fighters from the new government. The fierce clashes in the town, 90 miles southeast of Tripoli, came as Libya’s new leaders struggle to stamp out lingering resistance from pro-Gaddafi forces and unify a deeply fractured country after eight months of civil war and more than 40 years of authoritarian rule. Last November, 15 soldiers were killed in an ambush by Gaddafi loyalists just outside the town.

In London, The Times leads with the revolt by Liberal Democrat peers over welfare. It says the Lib-Dems rebels, backed by Labour, inflicted a significant government defeat over the proposed cap for household benefits, voting 252- 237 to exclude child benefit from the £26,000-a-year cap on benefits. Ministers, who saw off a separate Labour challenge to the cap in the House of Lords, vowed to reverse the setback, costing £130 million a year, when the Welfare Reform Bill returned to the House of Commons.

The Australian reports heavy rain was causing problems across southeast Queensland, including localised flooding, property damage and a rescue. The Gold and Sunshine coasts and parts of Brisbane have been hit by local floods. Nearly 200 millimetres of rain have been recorded in the Gold Coast hinterland in the past 24 hours. On the other end, the weather bureau was forecasting a record-breaking heatwave in Perth with temperatures around 40 degrees expected for the next seven days. Saturday is expected to be the hottest day with 42 degrees forecast.

The Daily Express leads with new research into Alzheimers. A University of California study found that reading and doing puzzles was the simplest way to stave off the condition. Keeping the brain active and stimulated has been found to have a dramatic effect on reducing the build-up of harmful proteins in the brain. The condition is incurable but experts believe the key to tackling it – and even stopping it completely – lies in early detection, and treating people before the plaques even form.