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European car makers are against environmental anti-pollution plans. They claim that exhaust emissions are "damaging".
The industry body says that these plans will lead to unemployment and relocation of production abroad.
The European Commission aims to increase the fuel efficiency of new cars by 18% by 2012. It wants new vehicles to emit no more than 130g of CO2 per kilometre, compared to 162g/km in 2005.
Environmentalists say that such emission is not enough. Thus, both the sides are unsatisfied with the European Commission decision.
Concern that US house prices could fall sharply has returned after a key survey showed that sales fell to a near five-year low in the year to July. Sales of existing homes fell 0.2% to 5.75 million units in the year, the lowest since November 2002, said the National Association of Realtors (NAR). It marks the first time that the US's main estate agent body had reported a decline in 12 consecutive months. The figures caused the main US share indexes to end lower on Monday. While the Dow Jones lost 58 points to 13,321, the Nasdaq slipped 15 points to 2,561.
Russia president Vladimir Putin has met Pope Benedict XVI for the first time during Putin's visit to Rome.The both of them discussed relationship between the Roman Catholic and Russian Orthodox Churches. The talks were held in a very friendly atmosphere. Mr Putin was also expected to discuss energy and security with Italian Prime Minister Romano Prodi in meetings on Tuesday night and Wednesday.
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