Saudi Economy is continuing its excellent growth, accompanied by price stability. The Saudi balance of payments shows a continued improvement for the eighth year running. The actual budget deficit for the current financial year is significantly lower than forecast at the beginning of the year. Huge allocations for education, health services, social development and basic services.
The Turkish-Israeli alliance brings the Middle East back to the policy of alliances and axes. Several Arab countries condemn the alliance between Turkey and Israel and express concern about the intentions and aims of that alliance. Turkey strengthens its cooperation with Israel in the field of arms maintenance and improvement. Fears of a comprehensive cooperation between the two countries in the production of arms of mass destruction.
The European Union sends a high level delegation to Algeria to study the facts on the ground and the European foreign ministers discuss the full situation on the basis of the delegation's findings. There is no evidence that the Algerian government is involved in the massacres, but there is deep concern that they appear unable to prevent those massacres from occurring.
Re-evaluation of the British position on the Middle East in the light of the British presidency of the EU. Intensive efforts to improve Arab-British relations and the British Foreign Secretary visits the Middle East to pave the way for a tour by Blair. A review of the British positions which are biased to Israel.
