France: French President Nicolas Sarkozy is taking legal action for libel and invasion of privacy against the former head of a French intelligence agency following the publication of leaked extracts from diaries belonging to Yves Bertrand. Published in Le Point news magazine, the private notebooks contain details about the financial, sexual and personal secrets of prominent men and women, including unsubstantiated allegations about Sarkozy.

Iraq: The U.S. says it is considering a draft agreement with Iraq on the role of its troops there after the United Nations mandate for U.S. presence expires later this year. Details have not yet been released, but officials say the agreement would see U.S. combat forces withdrawn from Iraqi towns and cities by the middle of 2009, with forces being pulled out of Iraq entirely by the end of 2011. The Iraqi government has publicly insisted on a clear timeline for withdrawal, but a Pentagon spokesman said any such movements would only be made as conditions allowed.

Belgium: In a meeting on Thursday in Brussels, 27 European Union leaders endorsed the emergency bailout plan for European banks that was put into action last weekend. They are in favor of revamping the world’s financial system to try to avoid a repeat of the money market crisis. They also discussed climate change and relations with Russia, which has pulled back troops from much of Georgia.

Afghanistan: At least 18 civilians have been killed in an air strike by foreign forces in the southern Afghan province of Helmand, reports say; a further nine bodies are said to be trapped under destroyed buildings. NATO-led forces say they are investigating the incident in an area where the British military are known to operate.

United States: The Bush administration announced new steps Tuesday to shore up the nation’s battered financial markets. The government will inject capital into financial institutions to help thaw frozen credit markets, create jobs and fuel economic growth. A program that clears the way for the U.S. government to buy a $250 billion equity stake in the nation’s banks provided only the slightest glimmer of optimism in the U.S. financial markets Tuesday. The government will invest $125 billion in those nine banks and then make another $125 billion available to the nation’s smaller, regional banks if they ask for it.

United States: Senators McCain and Obama had their last debate Wednesday at Hofstra University in New York. The debate focused primarily on domestic issues; the two candidates also had what may be their longest exchange about the issue of abortion.