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Dmitry Medvedev emerged from talks with the EU leadership yesterday saying the 25th EU-Russia summit in the southern Russian city of Rostov-on-Don had taken place in a “friendly and businesslike tone”, according to a report in the Financial Times newspaper.

The Russian president hailed the new modernisation agreement as allowing the two sides to pursue co-operation in high tech, innovation and energy efficiency, while Herman Van Rompuy, the EU president, threw his backing behind the new pact. “We want to be Russia’s partner in modernisation,” he said. “With Russia we do not need a reset, we need a fast forward,” he said, in a reference to the US vice-president’s comments on US-Russia relations last year.

The acrimony of previous summits over Russia’s relations with eastern Europe and its role as dominant energy supplier to the EU was conspicuously muted as Russia sought to present a more business-friendly face and the EU sought assurances from Moscow over the euro. Russia, according to the FT, keeps a large part of its €375.6bn in hard currency reserves in euros.

In a carefully scripted press conference, Mr Medvedev responded to a staged question by praising the EU’s handling of the debt crisis and said Russia did not want to make any statements that would shake its own economy or that of Europe.

“We are looking at what happens to the euro,” he said. “About 40 per cent of our reserves are kept in euros – and we don’t have the smallest reserves. Therefore we think the main thing is to help our partners build a joint strategy, including a strategy to exit the crisis.”

Also read: http://bit.ly/bdYwbr

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A look at the top news stories at 10:00 a.m. IST on Apr. 20,’10. For more news and analysis, log on to http://www.zeenews.com

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Dozens of test flights carried out by airlines suggest the volcanic ash over the continent has no impact on planes in flight. Germany’s Lufthansa says the company was granted permission to fly 50 planes back home with a total of about 15,000 passengers on board. While airspace still remains closed in over twenty countries leaving millions of travellers stranded.

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Air traffic over much of Europe came to a halt for six days in April because of the huge cloud of ash from a volcano in Iceland. The economic costs added up as airlines flew everyone to where they were trying to go. At its worst, the crisis affected nearly a third of world air travel. About one hundred thousand flights were cancelled or delayed. The International Air Transport Association estimated the cost to airlines at nearly two billion dollars. But that does not include costs like the tons of flowers that growers in Kenya and Israel had to destroy. Or all the fruits and vegetables that could also not be flown to Europe. Other businesses that depend on air travel, including hotels and vacation places, also suffered. The crisis affected airports from Washington to Pakistan. The crisis came just as Europe is trying to recover from its worst recession in generations. Greece — a popular travel place — continues to face a debt crisis that has sharply raised its borrowing costs. The United States halted air travel for three days after the terrorist attacks in two thousand one. The travel ban in April lasted twice as long in some European countries. Critics accused European air transport officials of being slow to react, then overreacting to the possible risk to airplanes. The volcano eruption cost time and money for travelers. Hundreds of thousands were stuck. Some had no place to stay except the airport. Others tried to make their way by train, bus, boat or car. Vacationers had to change or cancel plans. And not all businesses were sympathetic. An American stuck in London, already one of the world’s highest priced cities, found that her hotel had doubled its prices. Some embassies offered emergency loans to their citizens. Passengers delayed on European airlines may be able to get back at least some of the money they had to spend. The crisis brought new attention to the billion-dollar market for travel insurance. About thirty percent of Americans buy policies to cover unexpected problems when they travel. Some credit cards offer a form of insurance and could also face claims. The volcanic eruption was the second time in two years that Iceland has shaken its neighbors to the east. The first time was the near-collapse of Iceland’s banks and currency during the world financial crisis. And that’s the VOA Special English Economics Report.

(Adapted from a radio program broadcast 23Apr2010)

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His visit to the Parliament is seen as the most senior by a US official since Ronald Reagan spoke to the Chamber in 1985 to mark 40 years since Victory in Europe day.

Biden spoke about Europe’s relationship with Washington in a multilateral world as well as climate change and global governance.

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EU diplomats have dismissed rumours that EU foreign policy chief Catherine Ashton might step down from her post under pressure from member states and especially her native UK, where elections are scheduled for Thursday (6 May).

“It’s pure imagination,” said European Commission spokesperson Pia Ahrenkilde Hansen yesterday (3 May), responding to articles published in the British press which presented Baroness Ashton’s departure from her role as EU High Representative for Foreign Affairs and Security Policy as imminent.

The British conservative press reported that unnamed EU sources were blaming Ashton for failing to launch the new European diplomatic service. The Daily Telegraph and the Daily Mail stressed that criticism of Ashton mainly came from France.

French position

A spokesperson from the French Permanent Representation to the EU in Brussels firmly denied the rumours. “We completely back the work Catherine Ashton has carried out thus far, including that on the EU diplomatic service. French Foreign Minister Bernard Kouchner clearly showed his support for her work during the last Council in Luxembourg last week.”

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