Greek financial markets were in turmoil on Wednesday with investors fearing the new anti-bailout government was determined to defy its international creditors. Greek five-year bond yields jumped to a record high of 13%, reflecting fears that investors may not get their money back. Share prices also fell for a third consecutive day, with the main Athens Stock Exchange (ASE), down 7.6%. The biggest losers were bank shares. In the two sessions since Sunday's election, banks have seen 23% of their value wiped off, with investors fretting that the possibility of Greece leaving the euro would see bank accounts converted back into a new Greek national currency. The sharp movements came after new Greek Prime Minister Alexis Tsipras said in his first cabinet meeting that he planned to negotiate with creditors over the €240bn (£179bn; $270bn) bailout. The EU has repeatedly warned the new government to stick to its commitments. A default could force Greece out of the euro.

‘The threat is not only the one we faced in Paris, but also spreading in many parts of the world, starting in Muslim countries. We need to share information more. We need to cooperate more. We are determined to do what is necessary to keep Europe safe from the terrorist threat,’ said British Foreign Secretary Philip Hammond on Monday (January 19). He was among 28 EU foreign ministers attending a meeting in Brussels. There, delegates pledged to adopt better strategies at home and abroad in an effort to counter radicalised Muslims returning from Syria and Iraq. EU Foreign Policy Chief Federica Mogherini called for better collaboration between EU member states, but also with Muslim countries. ‘We took a decision with the Foreign Affairs Council to coordinate in a much more active way than has been the case so far.’

Middle East expert Pinchas Inbari writes that he has met with several senior European officials who said they see the Israeli-Palestine issue as the most pressing matter for Europe. The logic goes like this: The problem upsets Muslims and Arabs and drives recruitment to Islamic State, which is a direct threat to Europe; so they intend to force Israel to submit to Palestinian demands, believing a Palestinian state would somehow solve the Islamic State problem. Hate crimes strike fear into Jewish communities. In just one week last year eight synagogues were attacked in France and Kosher businesses are regularly smashed and looted as crowds chant ‘Death to Jews’. In Germany recently molotov cocktails were lobbed into the Bergische synagogue and Imam Abu Bilal Ismail called on Allah to ‘destroy the Zionist Jews'. A Dutch' anti-Semitism watchdog had 70+ calls from alarmed Jewish citizens in just one week last year.  Organisations recording anti-Semitic incidents say the trend is inexorable. See also: 

The pressure is building on Vladimir Putin: Russia will be hit by a wave of bankruptcies unless it cuts interest rates very soon, a top financial official warned Monday.  Anatoly Aksakov, president of Russia's regional banking association and deputy chairman of parliament's financial markets committee, said firms were running out of cash. Bankers believe that keeping the situation as it stands will cause a wave of bankruptcies, not only credit institutions but also a number of businesses and companies," Aksakov wrote in a letter to the central bank, according to Russian state media. Aksakov said the central bank must cut rates this month to 15% from 17%, then gradually to 10.5%, the level they were at before the current financial crisis. A central bank rate of 17% meant some companies were having to pay as much as 30% to borrow. The impact of Western sanctions imposed over Russia's actions in Ukraine has sparked a cash crunch by shutting many companies out of international funding markets.