Europe, turning inward to absorb the former Warsaw Pact nations, made the fateful blunder of embracing the euro rather than a more aggressive program of reform in labor markets, subsidies and the like.

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This settlement, where fruit gathering is the only form of production permitted, is part of a program of agrarian reform designated for poor families who depend on the land for survival.

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The ceasefire, they say, was the Tanzim's contribution to a new PA program of "reform" based on Israel's gradual withdrawal from the Palestinian areas in return for the PA's gradual resumption of policing duties within them.

ECONOMIST: The ceasefire that wasn't | The