This morning’s key headlines from GenerationalDynamics.com.

Military confrontation between Gaza and Israel spirals up again

Violence escalates between Israel and Gaza (WSJ)

The exchange of terrorist gunfire and missile attacks that we reported yesterday is triggering an escalation in the military confrontation between Gaza and Israel, after a lull of several months. Gaza militants fired rockets deep into southern Israel on Friday, injuring six people when one landed next to a religious hospital. This followed Israeli air strikes that that killed at least 12 Palestinians, including 10 militants. Independent

Hamas’s military wing, Izz al-Din al-Qassam Brigades, announced early Saturday that it is ending its ceasefire with Israel. However, Hamas’s political leadership appears intent on allaying tensions in the region and bringing the latest round of fighting to an end. Ynet

Egyptians protest Israel’s killing of Egyptian personnel in Sinai

Israel’s troops are reported to have killed three Egyptian security personnel in Sinai on Friday, while pursuing the suspected Gaza terrorists. On Friday, hundreds of demonstraters protested in front of the Israeli embassy in Cairo and the Israeli consulate in Alexandria. Egypt filed an official protest over the incidents and demanded an urgent investigation. Al-Ahram

Europe’s bailout of Greece, announced with fanfare, is unraveling

When European officials announced the most recent bailout of Greece (see “22-Jul-11 World View — Europeans announce bailout plan allowing Greece to default”) it was pretty obviously hokey from the start. It would force major European banks to “voluntarily” take 21% haircuts on their holdings of Greek bonds, and it would require approval of all 17 eurozone countries. Now it turns out that Finland never agreed to the bailout, except on condition that their contribution would be partially “collateralized.” Finland’s demands have been very controversial, but now four more countries — Austria, the Netherlands, Slovenia and Slovakia — will also demand collateral deals. It remains to be seen with the announced bailout will actually be implemented, especially since almost everyone now believes that Greece is going to default on its debt anyway. Bloomberg

I heard a German analyst on BBC explain why he and other German politicians are opposed to “euro bonds” and to the bailout of Italy (paraphrasing):

“We’ve had experience with bailouts within Germany. Bavaria, a strong state, has to pay for weaker states like Berlin or Breman. It’s not working in Germany. It always takes pressure away from states to cut deficits and spending for social things, for things that are popular. In Bavaria, people have to pay for things in Breman or Berlin, and that’s not right because it takes off the pain, takes off the pressure that’s necessary to have a balanced budget.”

BBC World Business (mp3 – around 8:20)

Columnist Abdullah Bozkurt: Syria’s fate depends on Turkey

Turkey has reached a point of no return with the Syrian authoritarian leadership, with US and European leaders now openly asking for the departure of President Bashar al-Assad. It is a shame that Assad brushed aside all the achievements he has helped Syria gain over the last decade, saving the country from isolation and from being an international pariah to become a country eager to implement reforms such as impressive economic undertakings. Now it all has gone down the tube thanks to the oppressive mentality of the powerful inner circle Assad leads, with quite a push from the Iranian leadership. Assad must appreciate the fact that Turkey has never played on majority Sunni fears in Syria and kept pretty much silent on increasing Iranian activities in the country. It did not allow him to be a proxy in the undeclared war between Sunni Arab countries and Shiite regimes in the Middle East. But this may change if Turkey, a Sunni majority country, is pushed into a corner. Zaman

Turkey plans expanded military garrisons in northern Iraq

The outlawed Kurdistan Workers’ Party (PKK), based in northern Iraq, has been conducting terrorist attacks in Turkey since the 1980s. There have been several agreed ceasefires, but the latest one ended in February, and dozens of Turkey’s soldiers have been killed or wounded by PKK terrorists since then. Turkey’s warplanes have participated in in aerial raids against PKK hideouts in northern Iraq this week. Turkey already maintains 2500 troops in intelligence gathering outposts in Northern Iraq and they were deployed in 1995 with the permission of the Kurdish regional government. Now word has leaked that Turkey plans to turn the outposts into operational front garrisons to support major operations against PKK terrorists. Zaman

Turkey’s Erdogan visits Somalia to increase influence in Africa

Turkey’s Prime Minister Recep Tayyip Erdogan became the first major Western leader in decades to visit Somalia, a country wracked by war and famine. The visit was designed to demonstrate Turkey’s readiness to help victims of a devastating famine, but also to showcase Turkey’s ambition to become a major political and economic player in Africa. Erdogan was accompanied by his wife Emine and three of his four children, as well as Ahmet Davutoglu, his foreign minister, who is scheduled to tour South Africa and Ethiopia after leaving Somalia. Erdogan has focused during the last decade on expanding Turkey’s influence in the Arab world, and now he’s turning to expanding Turkey’s influence in Africa. The National (UAE)

Taliban terrorists kill 9 in attack on Britains cultural center in Afghanistan

Smoke billows from British Council in Kabul on Friday (Reuters)

The Taliban are claiming responsibility for a suicide bombing attack on Britain’s cultural center on Friday, in Kabul, the capital of Afghanistan. At least nine people were killed in the assault, which took place on the 92nd anniversary of Afghanistan’s independence from Britain. VOA

Teen suicide bomber kills 55 in Pakistan’s tribal area

Tehrik-e Taliban Pakistan (TTP), the Pakistan Taliban, are suspected as perpetrators of a horrific attack by a teenage suicide bomber in Pakistan’s tribal area. The attack took place in a mosque attended by more than 400 people during Friday prayers. 55 people were killed and more than 117 others were killed, after the roof of the mosque caved in. Nation (Pakistan)