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

The Sunday Times says theft of water has increased as tariffs have gone up. It also reports then Foreign Minister Michael Frendo having told Richard Muscat, Malta's ambassador to the Republic of Ireland, that he was in his way. Dr Muscat's son had been wrongly accused of sexual assault. The newspaper interviews the former ambassador.

The Malta Independent on Sunday reports that a meeting between the Prime Minister and the trade unions on the utility tariffs appears to have had a positive outcome.

Malta Today says economist Edward Scicluna is considering an offer by Joseph Muscat to stand as a Labour candidate for the European Parliament.

Il-Mument says positive talks on the utility tariffs will continue in the coming days. It also focuses on the MLP general conference which from tomorrow starts to discuss changes to the MLP statute.

It-Torca says there is much expectation for a government document due tomorrow on the utility tariffs.

Illum focuses on the compensation given to various ministers and the former leader of the opposition after they left office.

KullHadd leads with the proposed changes to the MLP statute.It also reports that farmers near Ghadira have been ordered to destroy their crops amid fears that their water may have been contaminated by sewage.

The Press in Britain…

The Independent reports the Chancellor and the Prime Minister have come up with a new plan to fight off the recession - cutting VAT from 17.5 to 15 per cent.

The Sunday Times also leads with the emergency economic rescue plan to cut VAT, saying 15 per cent is the lowest possible rate under EU regulations.

The Observer suggests the Government's plan to reduce VAT is to spark a Christmas shopping spree.

The Daily Telegraph continues with the news VAT may be cut but voices economists concerns that large-scale tax rises will be needed later.

The Sunday Express says Muslim prisoners have begun a 'reign of terror' in a British jail, beating prisoners if they do not convert to Islam.

The Mail on Sunday tells the story of an 18-year-old, pregnant with conjoined twins, who has decided to go against hospital advice to have an abortion.

The News of the World investigates one girl's shame after she witnessed the torture of Baby P but was too scared to step in and try to stop it.

And elsewhere…

USA Today reports that leaders from Asia-Pacific countries have pledged not to respond to the global financial crisis by raising trade barriers over the next year. In a statement issued at the half-way point of the Asia-Pacific Economic Cooperation (Apec) summit in Peru, they said protectionism would only worsen a difficult situation.

German Chancellor Angela Merkel has warned that 2009 will be "a year of bad news" for the economy. She told Welt am Sonntag that the EU’s planned stimulus package should be used to promote innovation and make Europe more competitive, especially in those areas where technological improvements were necessary.

The International Herald Tribune quotes US President-elect Barack Obama saying he will sign a sweeping two-year stimulus plan to revive the troubled economy soon after taking office next January. Obama said his administration would make an effort to create 2.5 million jobs by 2011 through long-term investments in the country's economic future, including alternative energy technologies and fuel-efficient cars.

Iceland News reports that protesters in Reykjavik have clashed with police during a demonstration over the handling of the financial crisis. Several hundred protesters gathered outside the city's main police station to demand the release of a man jailed in a previous demonstration.

Die Welt says German police have carried out raids in three states in search of suspected supporters of a terror cell whose plans to attack US targets in Germany were foiled last year. No arrests were made.

France 24 reports that supporters of Segolene Royal have accused opponents within the Socialist party of fixing a bitterly-contested leadership vote and demanded a re-run. Earlier, party officials said Martine Aubry, architect of the controversial 35-hour work week, defeated her arch rival Royal by just 42 votes in Friday's ballot of the party's 233,000 members.

Novaya Gazeta says Russia's Gazprom has threatened to cut off gas deliveries to Ukraine on January 1 unless a new contract is signed. Negotiations between Russia and Ukraine are being held up by a large debt. The comments came two days after Russian President Dmitry Medvedev demanded that Kiev repay 2.4 billion dollars of debt to Gazprom.

The Examiner quotes the Zimbabwean government denying it refused entry to a team of ‘Elders’ led by former UN Secretary General Kofi Annan and former US President Jimmy Carter. The two men, and Nelson Mandela's wife, Graca Machel, had wanted to assess the humanitarian crisis in Zimbabwe. A Zimbabwean official said the team had been advised to reschedule the trip to "a mutually agreed date in the future".

Pak Tribune reports Rashid Rauf, a British Islamist militant with al Qaeda links, has been killed in northwestern Pakistan. Rauf, who escaped from a Pakistani jail last December, was the alleged mastermind of a 2006 plot to target transatlantic airplanes with liquid bombs.

The Sunday Tasmanian reports that Formula One driver Mark Webber has been seriously injured after he collided with a car while riding his bike in his charity event.

Malay Mail says Malaysia’s top Islamic body has said yoga has elements of Hindu religion that could corrupt Muslims and banned them from practising it.

The New York Times reports that teenager has been charged with murder after authorities said he beat a toddler to death because she had a potty-training accident.

El Globo says heavy rains in Venezuela have unleashed flooding and mudslides, killing nine people, including five children.

La Stampa reports a 15-year-old student died and another 20 were injured after a false ceiling of a school near Turin collapsed.

El Universal reports that a fight between rival gangs in a Guatemalan prison has left seven prisoners dead, five of them beheaded. Reporters who witnessed the scene said the inmates displayed the heads of some of the dead prisoners.

Le Matin says Pirates have released a Greek- owned chemical tanker hijacked in September after a ransom was paid and the crew is safe, Greek officials said.

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