One Week Later....

Serbia pauses for breath

In Serbia: pride vs progress, we wrote that Serbs were facing a Sophie's Choice between the EU and Kosovo.

• In the first round, pro-reform incumbent Boris Tadic came 4 points behind ultra-nationalist candidate Tomislav Nikolic.
• Prime Minister Vojislav Kostunica's transfer of support to Tadic could be decisive. He has repeatedly flirted with Nikolic's Radicals, but until now has balked at a move that would draw EU opprobrium.

Thailand: return to democracy?

In Thailand: edge of an abyss? we wrote that country may face violence or political stagnation after a Supreme Court ruling on whether or not the People Power Party (PPP) -- closely linked to former billionaire telecoms tycoon and Prime Minister Thaksin Shinawatra -- should be dissolved.

• Thaksin's PPP has announced the formation of a six-party coalition government, which marks a return to democracy.
• Parliament is now on the verge of electing a new prime minister. However, the frontrunner -- Thaksin ally Samak Sundaravej -- is a divisive candidate.
• With potentially destabilising political divides unresolved, unrest remains a possibility in the coming months, not least if Thaksin returns.

China tightens price controls

In China: inflation ebb?, we wrote that Beijing's efforts to cool inflation are paying off.

• December's inflation figures were slightly lower than November's rate of 6.9%, an 11-year-high.
• Beijing is resorting in part to administrative measures, including price controls. There is some risk of economic instability this year even as policy takes effect, and the government may be tempted to extend temporary measures, becoming more interventionist in the process.

Political Masterstroke

The World Next Week Political Masterstroke award goes to a 31-year old Frenchman called Jerome Kerviel. He is the trader behind the near five billion euro ($7.15 billion) fraud at French bank Societe Generale. He wins the award for alerting the wider world to banks’ risk-management procedures and their inability to control their own trading positions. More information on the trader is sparse; there is only one Google match for Kerviel (click here).

Analytica™

Worthy of note, or news to us.

Prodi's swansong?

Italian Prime Minister Romano Prodi has asked the Senate to back his government ahead of a crucial confidence vote, as he faces calls to resign.

Castro speaks out

Cuban President Fidel Castro says he "thought it was the end" when he fell ill in July 2006.

And finally…

A woman believed to be the last native speaker of the Eyak language in Alaska has died at the age of 89.