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

The Times says the European Commission has given Malta a month to react to claims that it violated state aid rules through funding for an upgrading of the Delimara power station boilers.

The Malta Independent focuses on the debate yesterday on the living wage and policies for people to move up the ladder. It also reports that Mepa has given the go-ahead for an apart-hotel instead of an old guesthouse and restaurant in Buskett.

In-Nazzjon says a Maltese software development company is expanding to Milan.

l-orizzont under the heading ‘Danish Inquiry’, says the Danish government has been officially notified that the Maltese Auditor-General found irregularities in the power station extension contract awarded to Danish company BWSC.

The overseas press

The Wall Street Journal quotes European Central Bank President Jean-Claude Trichet expressing "grave concerns" about the EU's stability pact, calling for a "quantum leap" in economic governance.

The Irish Times says Prime Minister Brian Cowen has said there was nothing to be ashamed of as he opened its books to the International Monetary Fund. Mr Cowen insisted Irish sovereignty was not for sale, despite predictions from Central Bank Governor Patrick Honohan of an imminent bailout running into tens of billions. Mr Cowen insisted Ireland was simply working out options with EU partners to secure the banking sector and the euro.

The Washington Times reports President Barack Obama has sternly proclaimed ratification of the US-Russia nuclear arms treaty “a national security imperative”. He insisted the Senate must act before Congress goes into recess, saying the United States “cannot afford to gamble” with its ability to verify Russia’s strategic nuclear arsenal – a central element of the treaty. Nor could it risk losing Moscow’s support on other matters of national security, including pressure on Iran over its pursuit of nuclear weapons.

Abrar says Iran has successfully tested a new air defence missile system in a five-day exercise. General Hamid Arjangi said the system – known as Mersad, or Ambush in Farsi – was developed by Iranian scientists. He did not give details of the new system. The exercise is meant to demonstrate Iran ability to defend its nuclear facilities from possible attack.

Deutsche Welle reports an Air Berlin flight from Namibia to Germany was delayed after police found a suitcase with a fuse in the luggage hall of the airport in the capital Windhoek. Germany’s Federal Criminal Police Office said that a scan showed batteries attached by wires to a fuse and a clock. No explosives were found in the bag. The incident came the day after Germany was put on increased security alert through fears of a heightened threat from international terrorism.

South China Morning Post says Hong Kong health authorities have confirmed the first human case of bird flu in seven years. A 59-year-old woman was seriously ill in hospital after returning from a visit to mainland China. The bird flu alert has been raised to "serious", meaning there is a risk of contracting the disease within the territory.

Aftenposten says six countries – China, Russia, Kazakhstan, Cuba, Morocco and Iraq – have declined invitations to attend the Nobel Peace Prize ceremony for Chinese dissident, Liu Xiaobo. The Nobel Institute said 36 ambassadors had accepted the invitation but another 16 had still not replied. It also appeared unlikely that anyone from the laureate's family will be able to go to the Norwegian capital to receive the Nobel Peace Prize. Although the prize ceremony will go on as planned, it was likely the prize medal, diploma, and award of 1 million euros would not be handed out this year.

USA Today reports a handcuffed man managed to escape from police custody by stealing their car and driving off with his knees. Jose Rodriguez, 27, was arrested in connection with a shooting in the Bronx area of New York after police stopped his car. The officers had Jose shackled his legs and placed him in the back seat of their unmarked car. As the officers searched his vehicle, finding a gun, Jose climbed into the front of their car and drove off, while still handcuffed. Jose crashed around five miles away and was later captured.

The New York Post says a squad of police officers in bulletproof vests swooped into an upper Manhattan park in New York and charged seven men with the "crime" of playing chess in an area off-limits to adults unaccompanied by kids - even though no youngsters were there. Police said the rule protects kids from paedophiles or others who might want to harm them.

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