SYRIA: As Syrian War Drags On, Jihadists Take Bigger Role

Neil MacFarquhar and Hwaida Saad, NY Times – As the uprising against President Bashar al-Assad’s government grinds on with no resolution in sight, Syrians involved in the armed struggle say it is becoming more radicalized: homegrown Muslim jihadists, as well as small groups of fighters from Al Qaeda, are taking a more prominent role and demanding a say in running the resistance.

EUROZONE/SPAIN: Sharp Contraction in Spain

David Roman, WSJ – Spain’s economy contracted at a faster pace in the second quarter and inflation jumped in July due to higher drug prices and cuts to medical subsidies as austerity measures continued to take their toll.

EUROZONE/ECB: Crash of the Bumblebee

Paul Krugman, NY Times – Last week Mario Draghi, the president of the European Central Bank, declared that his institution “is ready to do whatever it takes to preserve the Euro” — and markets celebrated. In particular, interest rates on Spanish bonds fell sharply, and stock markets soared everywhere. “The euro will be workable only if the European Union becomes much more like a unified country.”

SYRIA: Syrian Refugees Are Stung by a Hostile Reception in Iraq

Duraid Adnan and Rod Nordland, NY Times – Alone among Syria’s Muslim neighbors, Iraq is resisting receiving refugees from the conflict, and is making those who do arrive anything but comfortable. Baghdad is worried about the fighters of a newly resurgent Al Qaeda flowing both ways across the border, and about the Sunni opponents of the two governments making common cause.

SYRIA: Lebanese worry that Syrian army might escalate attacks

Babak Dehghanpisheh, Washington Post – As the fighting in Syria intensifies, many Lebanese fear that the conflict could spill over the border, upending the fragile sectarian balance holding their country together and sparking another bloody internal conflict fueled by regional powers.

SYRIA: Syrian Says Foreign Plot Is to Blame for Violence

Kareem Fahim, NY Times – As fierce fighting continued across Syria on Sunday, the country’s foreign minister, on a visit to Iran, blamed Saudi Arabia, Qatar and Turkey for the escalation of violence and vowed that his government would rout the rebels fighting the army in Aleppo.

SYRIA: Syrians fear conflict will scar generations

Michael Peel, FT – Traumatised civilians forced to flee their homes now find themselves refugees a second time as fighting reaches Damascus and Aleppo.

ISRAEL/ IRAN: Panetta says U.S., Israel unified in support of Iran sanctions

Greg Jaffe, Washington Post – Defense Secretary Leon E. Panetta sought Sunday to portray the United States and Israel as unified in their support for increasingly tough international sanctions, rather than military measures, against Iran to prevent it from developing a nuclear weapon.

ISRAEL: Romney: Israel deserves better treatment than it’s getting from Obama

Amos Regev, Boaz Bismuth, Israel Hayom – In special interview ahead of his visit to Israel, Republican presidential hopeful Mitt Romney vows: I would treat Israel like the friend and ally it is. Romney calls 1967 borders “indefensible,” and says Iran is closer to nuclear weapons than it was when President Obama took office.

AFGHANISTAN: U.S. Fund to Rebuild Afghanistan Is Criticized

Matthew Roseberg, NY Times – Two years ago, as the final pieces of the Obama administration’s troop surge were moving into place in southern Afghanistan, American officials identified a handful of infrastructure projects that they hoped would build popular support for the Afghan government in the Taliban’s heartland.

AFGHANISTAN: U.S. construction projects in Afghanistan challenged by inspector general’s report

Rajiv Chandrasekaran, Washington Post – A U.S. initiative to spend hundreds of millions of dollars on construction projects in Afghanistan, originally pitched as a vital tool in the military campaign against the Taliban, is running so far behind schedule that it will not yield benefits until most U.S. combat forces have departed the country, according to a government inspection report to be released Monday.

PAKISTAN: Allies Rebuke Pakistan on Cross-Border Attacks