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

The Times leads with the inquiry ordered by the government into the actions of the police in the Cyrus Engerer case. It also reports that the EU has warned the government over engaging redundant Air Malta workers as that could be a violation of competition policy.

The Malta Independent says the Engerer cases are to be investigated. It also reports how the prime minister persuaded a man to stop a hunger strike by offering him kiwi.  

MaltaToday also leads with the Engerer case, saying Gonzi stands by his man.

l-orizzont says this is an orchestrated persecution  of Cyrus Engerer.

In-Nazzjon says Cyrus Engerer knew of the police actions before he defected to the Labour Party.

The overseas press

Aftenposten quotes the head of Norway’s domestic intelligence agency saying no evidence had been found of the man accused of last Friday’s attacks, Anders Behring Breivik, had links with right-wing extremists in Europe. Breivik had claimed that he was part of a group with "cells all over Europe". The agency chief, Yon Christiansen said she believed he acted completely on his own. At a court hearing, Breivik admitted to the massacre that left at least 76 dead, but pleaded not guilty to terrorism, saying he had acted to save Europe from a "Muslim takeover". Police are considering also charging him with crimes against humanity, which carry a possible 30-year sentence.

The New York Times says IMF chief Christine Lagarde has warned European leaders of the possibility of social instability as a result of the eurozone's economic problems. She told the Council on Foreign Relations in New York that the recent economic turbulence which has seen Greece, Portugal and Ireland suffer debt crises could "easily resurface" with the young facing unemployment and older generations fighting to protect their health and pension benefits. Hopes that the EU crisis had been contained by Greece's latest bailout were undermined on Monday, as the cost of funding for Spain and Italy surged again amid continuing concern over the Continent's finances.

Reuters reports that the Nikkei stock average fell this morning as concerns mount over a deadlock in talks to raise the US debt ceiling. A failure to raise the debt limit by an August 2 deadline could roil markets and hurt the economy if the United States puts off paying bills.

Meanwhile, The Wall Street Journal says the White House has warned that President Obama could veto a debt limit plan proposed by top House Republicans. The President had earlier warned that the US was on the brink of a default that could trigger an economic upheaval. Speaker John Boehner's plan to trim public spending and raise the limit met with resistance from rank-and-file members of his own party.

Al Jazeera reports that the UN envoy to Libya, Abdul Elah al-Khatib, trying to find a way to end Libya's war has made little visible headway on a visit to Tripoli for talks with the Prime Minister Al-Baghdadi Ali Al-Mahmoudi. The government told him that Nato must end air strikes before any talks could begin and that Muammar Gaddafi's role as leader was non-negotiable, though rebels and the West insist he stepped down. al-Khatib arrived in Tripoli straight from talks with rebels in their eastern stronghold of Benghazi on Monday.

Sky News says the Lockerbie bomber Abdelbaset al-Megrahi, who was released from prison in Scotland almost two years ago in the expectation that he would die within three months, has attended a pro-Gaddafi rally in Libya. Megrahi was seen in a wheelchair in Libyan state television footage said to have been broadcast live. A presenter introduced him and said the conviction for blowing Pan Am Flight 103 out of the sky over Lockerbie in 1988 was a "conspiracy". He served eight years of a 27-year sentence for the attack, which killed 270 people.

Al Ayyam reports that Gaza's ruling Hamas government has executed two Palestinian men for collaborating with Israel. The father and son, aged 58 and 29, were convicted by a Gaza court in 2004 of assisting the enemy and providing information used to assassinate Palestinians.

Kansas City Star announces the death of a former member of the 70’s pop group America, Dan Peek, has died in Missouri at the age of 60. The group enjoyed many hits, the best know being "A Horse with No Name", which shot to the top of the charts in 1972. The group won a Grammy for best new artist that year, and enjoyed a string of other popular hits including "Ventura Highway" and "Lonely People.". Peek formed the band in Britain with Gerry Beckley and Dewey Bunnell while they attended high school together in London, where their fathers were stationed with the United States Air Force.

Metro reports that a 200-year-old bottle of French wine has become the most valuable white wine in the world, after it was sold for almost €85,000. The 1811 Chateau d'Yquem has been bought by a restaurant owner in Bali. Antique wine collector Stephen Williams, who sold the bottle, has said it is probably still drinkable.



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