Brussels  - The European Union is ready to bail out Romania, the latest European victim of the global credit crunch, the bloc's finance ministers said after a meeting in Brussels on Tuesday.

"In view of the adverse effects of the global financial turmoil on the economic and financial situation in Romania, the (EU's) Council Presidency and the Commission express the European Union's readiness to support Romania in avoiding risks of increasing market pressures and in achieving the orderly unwinding of imbalances," ministers said in a statement.

Washington - For years the Pentagon believed Navy Captain Michael Scott Speicher was killed when he his plan was shot down by the Iraqis during the 1991 Gulf War, but his case remains a mystery.

His body was never found. The Pentagon concluded in 2001 after a review that he was missing in action, and following additional inquiries the Pentagon said Tuesday it still believes that to be the case, even though the intelligence community says he's dead.

Tehran - Iraqi President Jalal Talabani arrived in Tehran on Tuesday to attend the 10th Summit of the Economic Cooperation Organization (ECO) as guest and observer.

Iran, Pakistan and Turkey founded the ECO in 1985. Later Azerbaijan, Afghanistan, Kazakhstan, Kyrgyzstan, Tajikistan and Turkmenistan joined the group.

Talabani was in Tehran three weeks ago and discussed with his Iranian counterpart Mahmoud Ahmadinejad expansion of bilateral ties.

Brussels  - European Union finance ministers Tuesday agreed to allow member states to permanently reduce VAT rates in labour- intensive sectors such as catering or cleaning, diplomats said.

The deal, brokered by the Czech presidency of the EU with the help of the European Commission, was expected to end months of wrangling about the effectiveness of such a measure.

While some member states had insisted it would help create new jobs at a time of economic crisis, others had argued it would merely result in a fall in tax revenues.

Berlin  - German Foreign Minister Frank-Walter Steinmeier said late Monday that South Africa's important position in Africa, which goes far beyond mediating conflicts in Sudan and the Congo, "underlines the role that South Africa has found in recent years."

During a meeting late Monday in Berlin with South African Foreign Minister Nkosazana Dlamini-Zuma, Steinmeier spoke of the "multifaceted cooperation" between Germany and South Africa.

Mexico City  - French President Nicolas Sarkozy met with Mexican President Felipe Calderon Monday, to discuss the global financial crisis and several bilateral issues, including a French citizen imprisoned in Mexico for kidnapping.

On Monday, the two leaders discussed the case of Florence Cassez, a French citizen who has been condemned to a 60-year prison term in Mexico for her role in a triple kidnapping.