With its safe havens inside Pakistan, the Haqqani network poses a threat to NATO forces in Afghanistan, a top NATO official has said.

Asserting that working on terror problem posed by the Haqqani network was the primary job of the US-Pak relations, an Obama administration official said any terrorist group will have to renounce violence to join the Afghanistan-led reconciliation process.

EU nations are building a "co-ordinated" plan to recapitalise their banks to avoid contagion from the debt crisis which has forced the dismantling of Franco-Belgian bank Dexia, the European Commission said.

Egypt's military rulers on Tuesday assured US defence secretary Leon Panetta they will lift a controversial emergency law but gave no sign they will do so before parliamentary elections next month, US officials said.

President Barack Obama challenged Republican leaders on Tuesday to put his entire $447 billion jobs plan to a vote, rather than breaking it up, to show American voters "exactly where members of Congress stand."

Moody's Investors Service cut Italy's bond ratings by three notches on Tuesday, saying it saw a "material increase" in funding risks for euro zone countries with high levels of debt.

A helicopter carrying four tourists crashed into the East River on Tuesday afternoon after taking off from a launch pad on the riverbank, killing one passenger and injuring the others.

Iraqi leaders said in a statement there was "no need" for US forces that stay beyond year- end to receive immunity from prosecution, a key condition set by Washington for any post-2011 training deal.