European press review

The German papers look forward with interest to Chancellor Schroeder's talks with Russia's President Putin in the Ural Mountains, while Russian papers comment on Wednesday's surprise upgrade in the country's credit rating. The French press meanwhile contemplates a health sector on the brink of bankruptcy.

Avoiding awkward issues

German Chancellor Gerhard Schroeder arrived on Wednesday in Yekaterinburg, in the Ural mountains, for two days of talks with President Vladimir Putin.

Germany's Der Tagesspiegel expects the talks will focus on economic cooperation and sidestep awkward political issues.

President Putin is less than likely to raise the subject [of Chechnya] himself Die Welt

"Irritating undertones will largely be avoided", it says, with Chancellor Schroeder refraining from any "direct references to the war in Chechnya."

He will leave this to his foreign minister, Joschka Fisher, who intends to raise the subject with his Russian counterpart Igor Ivanov, according to the paper.

Die Welt says that Yekaterinburg, "famous for its engineering, and infamous for the murder of the Tsar in 1918", is keen to "show off its best side".

On the talks proper, it notes that Russia's politicians are watching out in quiet expectation to see whether and how Chancellor Schroeder "will say anything about Chechnya in the wake of a presidential election dubbed a farce by human rights organizations".

President Putin at least, the paper says, "is less than likely to raise the subject himself".

The Sueddeutsche Zeitung says the fact that energy matters will be high on the agenda during the meeting "makes a lot of sense for the Germans", since Russia provides almost one third of their natural gas and oil needs.

"Experts on Russia," the paper adds, expect Moscow to "attract more investment projects running into billions."

For Germany, it notes, "this means both opportunities and risks" as they "endeavour to protect their leading position in trade with the Russians".

Credit where its due

With fortuitous timing, Russia's prospects for foreign investment were greatly boosted on Wednesday when global credit ratings agency Moody's raised its rating to investment grade and praised the government's handling of the economy.

"Yesterday, the most sacred dream of a whole generation of Russian politicians came true... It took seven years to earn this rating," comments leading daily Izvestiya.

It's not entirely clear whether Russia is worthy of so flattering an assessment Vedomosti

"Moody's hasn't simply raised Russia's sovereign credit rating. With the full force if its authority, it has told the world that genuine investors can now invest their assets in the country's debt liabilities," it says.

Business daily Vedomosti says the move "is recognition of the efforts of the Russian authorities to reform the economy", but it adds a note of caution.

"There's a mere trifle overshadowing the joy brought on by so momentous an event: it's not entirely clear whether Russia is worthy of so flattering an assessment," it reckons.

Poor French health

"The French don't know it", says Paris's Le Monde, "but the health and social security system is on the brink of bankruptcy".

The real trouble-maker, the paper says, is a health insurance sector in debt to the tune of 30 billion euros, an unprecedented amount since the system was founded in 1945.

As the paper points out, even Health Minister Mattei admits that the "hole" has turned into a "bottomless pit".

If the money to plug this hole were to come from increasing taxpayers' income-related contributions to the system, it would represent fifteen times the amount the government is giving the public via a recent income tax cut.

"The government cannot contemplate such a blow to purchasing power," the paper believes, "for it would crush any fledgling hopes of an economic upturn".

The European press review is compiled by BBC Monitoring from internet editions of the main European newspapers and some early printed editions.