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

The Sunday Times leads with a report from Brussels that the EU has warned Malta it could lose substantial EU funds because of delays in the building of sewage treatment plants. It also reports that the government has abruptly stopped its home equity sharing scheme, which is being restructured.

The Malta Independent on Sunday says land clearance has started near Ulysses Lodge in Gozo while a permit for the building of villas is considered on appeal, after having been withdrawn. It also reports that the Prime Minister is to launch talks with local councils about a reform of local government. The newspaper also says that some 90 MLP delegates have signed a petition calling for the resignation of the party administration.

MaltaToday says its surveys show that Joseph Muscat is well ahead in the MLP leadership race with George Abela second, 40 percentage points behind.

Il-mument says last Monday’s speech in Parliament by Alfred Sant surprised and confused labourites.

KullHadd also leads with the abrupt halt of the equity sharing scheme.

It-Torca says work refused by Malta Shipyards has been award to a shipyard in Poland. It also reports that the Ombudsman had called for efficient and uniform application of labelling regulations.

Illum says Simon Busuttil’s decision not to seek the post of general secretary of the Nationalist Party appears to have opened the way for Beppe Fenech Adami.

The Press in Britain...

The Independent on Sunday reports a cure for MRSA appears to be within grasp after scientists claimed to have developed a drug that destroys the most virulent strains of the deadly superbug

Writing in The Observer, Prime Minister Gordon Brown has mounted a passionate and personal defence of scientific research using animal-human hybrid embryos as an 'inherently moral endeavour' that could save millions of lives.

The Sunday Telegraph claims thousands of British women have had four or more abortions, including dozens who have undergone six by the age of 30. Figures uncovered by the paper tell how almost 4,000 women have had at least four abortions.

The Sunday Times says an MI5 officer has been forced to resign after admitting his wife was one of the five call girls who took part in the sadomasochistic sex session in a notorious 'Nazi-style orgy' with Max Mosley, the Formula One racing chief.

The Sunday Express reports Britain's shoppers will enjoy the best sales for a decade this summer as stores combat one of the toughest periods in retail history.

Daily Star Sunday claims Prince William is to marry Kate Middleton, who was at Windsor Castle on Saturday.

The Mail on Sunday says police are probing claims that Prince Harry and his bodyguards took part in a reckless 100mph car chase on their way to a nightclub. A company director says his family's lives, including that of his eight-month-old baby, were put at risk by the convoy's driving.

The News of the World says Girls Aloud beauty Cheryl Cole has been captured on video kissing a man on a hotel bed. It claims the tape will stun her soccer star husband Ashley as she cries over her shattered marriage.

And elsewhere...

The People’s Daily leads with the strong 6.0-magnitude aftershock that has rocked the southwest Chinese province that is struggling to recover from a devastating earthquake five days ago. Thousands of people from a village near the epicentre of Monday's quake are heading for higher ground due to fears of flash flooding.

Bangkok Post reports that world frustration with Burma is boiling over, two weeks after cyclone Nargis hit, with accusations of crimes against humanity over the regime's slow response to the disaster.

Myanmar Times reportsthe authorities are using helicopters, cars, trucks and small boats to transport relief supplies donated by foreign countries to the cyclone-ravaged Irrwaddy delta region. The newspaper gave no details of how much is making it into the delta region.

Peru’s La Republica quotes President Alan Garcia saying leaders from the Andean Community, which includes Bolivia, Colombia, Ecuador and Peru, and the European Union have agreed on a preliminary framework to remove some trade barriers. Malta is represented by Foreign Minister Tonio Borg.

La Sicilia reports some 450 illegal migrants arrived on the southern Italian island of Lampedusa. The migrants, including 26 women and four children, arrived in two boats and were mainly from Africa. Their arrival coincided with the start of an EU-led patrol mission against illegal immigration in the Mediterranean.

Naples’ Il Mattino says angry residents have attacked firefighters who tried to extinguish blazing garbage. The fires were set by Neapolitans fed up with the prolonged trash collection emergency in the southern Italian city.

Al-Ahram quotes President Bush saying he remained confident a deal on Palestinian statehood could be achieved before he leaves office

South Africa’s Mail & Guardian reports that Morgan Tsvangirai, the leader of Zimbabwe's the Movement for Democratic Change, has postponed plans to return to the country due to an alleged plot to kill him.

The Boston Globe says doctors and family members are by the bedside of US Senator Edward Kennedy after he suffered a seizure.

The New York Times claims that a new Justice Department report praises FBI agents for refusing to join in the US military's “abusive questioning of prisoners in Guantanamo Bay, Iraq and Afghanistan.

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