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

The Times leads with the inquiry report which dismissed Capt Mario Grech's safety claims on the Gozo ferries. It also reports on the Israeli raid on a Gaza aid flotilla.

The Malta Independent follows up the recent meeting of abuse victims with the President. It says they are happy with once weekly court hearings.

l-orizzont says a young woman was injured when her van was involved in collision with a truck in Gozo. It also says that the EU has approved an Italian scheme to compensate companies which suffer power outages. (see - http://www.timesofmalta.com/articles/view/20100526/local/eu-authorises-compensation-for-power-cuts )

In-Nazzjon says Spanish cruise line Pullmantur shifted a cruise to start from Malta after industrial action in Athens.

The overseas press:

The world outrage at the Israeli commando raid on the Gaza flotilla - that left at least 10 dead and some 30 more injured - dominates the front pages of the international media. The European edition of The Wall Street Journal leads with an Israeli flag in flames - a common image among protests across the globe. Beirut's Nahamet says Israel faced a wave of global outrage, as key ally Turkey froze military ties, others summoned their ambassadors, Muslim leaders demanded UN action and protests erupted in many countries.

The New York Times says that during an emergency session of the UN Security Council, members condemned the Israeli action with Turkey's Foreign Minister, Ahmet Davutoglu, calling the raid "banditry and piracy" and "murder conducted by a state". Israel's deputy UN ambassador Daniel Carmon responded that the flotilla "was anything but a humanitarian mission". He said: "They are not peace activists ... They cynically use the guise of humanitarian aid to send a message of hate and to implement violence."

According to Al Jazeera, Palestinians and Arab nations demanded condemnation and an independent investigation. Backed by a number of council members including Turkey, they also called for Israel to lift the blockade on Gaza, immediately release the ships and humanitarian activists, and allow them to deliver their goods.

Amid the international storm of protest, The Jerusalem Post says Israeli Prime Minister Benjamin Netanyahu defended the attack and gave his "full backing" to the military force. He voiced regret at the loss of life but said his soldiers were attacked and "had to defend themselves". As the Security Council met in emergency session, he ditched a planned meeting with US President Barack Obama to fly home to handle the crisis.

The International Herald Tribune said the Isreal raid complicated US efforts to move ahead on Middle East peace negotiations and introduced a new strain into an already-tense relationship between the United States and Israel.

In other coverages:

The FinancialTimes quotes the European Central Bank saying the eurozone's financial sector and economy were facing "hazardous contagion" effects from the region's debt crisis. In its latest report on the eurozone's financial stability, the ECB said soaring government deficits risked driving up general borrowing costs, hitting economic growth prospects. It has also predicted another €195 billion in bank writedowns this year and next.

Dawn says at least two gunmen disguised in police uniforms attacked a hospital in the eastern Pakistani city of Lahore. Officials said the killed 12 people in a failed attempt to free a captured militant being treated there.

Der Spiegel reports German President Horst Koehler's resignation in a surprise move after being criticised for reportedly linking military deployments abroad with the country's economic interests. He is the first German president ever to resign.

Moscow Times says Russian experts have arrived in Seoul to review findings of an investigation that blamed North Korea for the deadly sinking of a South Korean warship. Meanwhile, China Times says South Korea has stepped up its campaign over ths ship sinking as thousands of troops practised fending off an attack from the North near the rivals' tense border.

The New Yorker reports that the Duchess of York has told Oprah she had been drinking when she met with an undercover reporter offering a fortune for business access to Prince Andrew.

The Daily Telegraph says that a young Irish couple have revealed how they fell in love after a chance meeting, moved in together, had a child and then discovered they were half-brother and sister. The extraordinary discovery was confirmed by DNA testing last month. It has left the couple stunned - but they are vowing to stay together and have more children. They both blamed the legal system which prevented the young man from being told his true identity. He only discovered who he really was long after his child's birth.

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