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Politics Today: Obama in Italy

Politics Today is CBSNews.com's inside look at the key stories driving the day in Politics, written by CBS News Political Director Steve Chaggaris:

**President Obama in Italy...

**Biden to announce agreement with hospital industry as Congress continues work on health care...

**Democrats wrestle with talk of second stimulus...

(AP Photo/Haraz N. Ghanbari)
PRESIDENT OBAMA: After wrapping up two days of meetings with Russian leaders in Moscow, President Obama flew to Italy this morning for a three day G-8 summit.

Mr. Obama is now in L'Aquila, the site of the G-8 meeting, that will focus on reducing greenhouse gas emissions. Other global issues such as the economy, Afghanistan, Iran, world poverty, nuclear arms are also expected to be discussed.

"The G-8 meetings may lack the intrigue of Obama's sit-downs earlier in the week with Russia's top leaders, or the emotion of the reception the first black American president surely will get in Ghana Saturday," writes the Associated Press' Charles Babington.

"But they won't lack for ambition, on the surface at least, as the world's most powerful officials discuss the problems threatening the planet. Obama and the leaders of seven other industrialized nations had meetings set at the picturesque L'Aquila, northeast of Rome, before they were to widen their circle to include fast-growing countries like China and India, and struggling nations from Africa. In large and small groups, the talks will involve trade, Iran's nuclear ambitions, food security and other issues. ... Topping the list of G-8 discussions are possible ways to slow the release of greenhouse gases linked to global warming."

Tribune's Christi Parsons and Mark Silva, "Obama at G-8: fragile consensus"

CBS News senior White House correspondent Bill Plante, who's traveling with the president, notes that a devastating earthquake in L'Aquila in April killed almost 300 people and drove thousands from their homes. Berlusconi moved the summit here in a show of support. There are still regular aftershocks - and with the leaders of almost 40 nations staying there, there's an emergency plan to airlift them out in case there's another serious quake, Plante reports. Italy is deploying thousands of police officers as it seeks to avoid the violence that marred the last G-8 summit held in this country, when one protester was killed and more than 200 were injured in Genoa in 2001.

Washington Post's Craig Whitlock, "Aftershocks at G-8 Summit Site In Italy Raise Fears About Safety"

Later today, the president and Prime Minister Silvio Berlusconi will tour L'Aquila's historic center and the earthquake damage there. Tonight, the president will attend a G-8 working dinner at the Guardia di Finanz School.

(AP)
After landing in Rome this morning, Mr. Obama met with Italian President Giorgio Napolitano.

"I had heard of the wonderful reputation of President Napolitano as somebody who has the admiration of the Italian people because of not only his longstanding service but also his integrity and his graciousness," Mr. Obama said after their meeting." And I just want to confirm that everything about him that I had heard is true. He's an extraordinary gentleman, a great leader of this country..."

It may sound like innocuous praise, however, reports The Wall Street Journal's Jonathan Weisman, tongues are wagging over his comments as some Italians thought the president "snubbed" Berlusconi.

"With Berlusconi enmeshed in scandal over a teenager and alleged call girls caught on tape partying with the prime minister, Obama may not make mention of integrity when he meets the host of the summit of the Group of Eight leading economies here this afternoon," writes Weisman. "But then again, the gregarious Berlusconi, always a showman for the cameras, isn't likely to hold it against Obama."

Telegraph, " Sarah Brown blogs on 'spouses summit'"

***For more on the G-8 summit, watch "Washington Unplugged" at 12:30 p.m. ET on CBSNews.com. CBS News Congressional Correspondent Nancy Cordes will speak with CBS News Senior White House Correspondent Bill Plante, who's traveling with Mr. Obama, and Michael Levi from the Council on Foreign Relations.

Recapping Mr. Obama's Russian meetings:

(AP Photo/Haraz N. Ghanbari)
CBS News' Chip Reid, "Obama's Aims in Russia Rest on Putin"

Wall Street Journal's Jonathan Weisman, Gregory L. White and Alan Cullison, "U.S.-Russian Summit Ends With Mixed Results"

Washington Post's Robin Givhan, "Soloing in Russia, First Lady Speaks Little, and Yet Volumes"

NY Times' Peter Baker, "Family Night for Obamas Miffs Some in Moscow"

(AP)
HEALTH CARE: At 10:30 a.m. ET, Vice President Biden, Health and Human Services Secretary Kathleen Sebelius, Chairman of the Senate Committee on Finance Max Baucus and representatives of the hospital industry will announce what the Washington Post reported yesterday: an agreement between the White House and the hospital industry where the industry will "contribute $155 billion over 10 years toward the cost of insuring the 47 million Americans without health coverage."

The New York Times' David M. Herszenhorn and Sheryl Gay Stolberg write, however, that this and other previously announced deals may be more costly than the White House is letting on.

"The deals, trumpeted loudly by the White House, would each help pay for a sweeping overhaul of the health care system. First, it was a broad consortium of health industry groups — doctors, hospitals, drug makers and insurers, all promising to slow the growth of medical spending by 1.5 percent. Then, it was the big drug makers, promising savings of $80 billion over 10 years, by lowering the cost of medicine for the elderly. On Wednesday, it will be major hospital associations, pledging to save more than $150 billion over a decade. And a deal with doctors is said to be on tap next.

"In each case, the Obama administration hailed the agreements as historic. But what has been little discussed is what the industry groups will be getting in return for their cooperation, whether or not the promised savings ever materialize."

Meantime, the work continues on hashing out health care reform legislation on Capitol Hill.

"Senate Democratic leaders rebelled Tuesday against a proposed tax on health insurance benefits, raising fresh doubts about the prospects for bipartisan legislation on President Barack Obama's top domestic priority," reports the Associated Press' David Espo.

"One day after lawmakers returned from a weeklong vacation, the White House and Democratic leadership made a conspicuous effort to assert control over the effort to push health insurance legislation through committees and both houses of Congress over the next five weeks. While Obama has called for a bipartisan measure, a partisan bill written by and for Democrats is also a possibility, given the size of the party's majorities in the House and Senate. …

"Nowhere were the challenges of passing legislation more evident than in the Senate. There, several Democratic officials said the party's leadership told Baucus, D-Mont., that they were unhappy with any tax on health care benefits — a key component of bipartisan negotiations — and expressed fears it could lose more votes on their side of the aisle than it gained among Republicans."

5099149"Democrats are rethinking their priorities in the give-and-take of health care reform negotiations taking place in the Senate. Sen. Kent Conrad, a moderate North Dakota Democrat, said some senators working on health care reform are having second thoughts about taxing health care benefits, a proposal that has been laid on the table as a way to raise revenue for reform," adds CBSNews.com's Stephanie Condon.

"Conrad said his colleagues are considering other options, given recent polling that shows widespread public opposition to the idea, according to various reports. ...

"Meanwhile, President Obama on Tuesday reaffirmed his commitment for a government-sponsored health insurance option. 'I am pleased by the progress we're making on health care reform and still believe, as I've said before, that one of the best ways to bring down costs, provide more choices, and assure quality is a public option that will force the insurance companies to compete and keep them honest,' Mr. Obama said in a statement."

Politico's Carrie Budoff Brown and Chris Frates, "Harry Reid jumps into health negotiations"

Associated Press' Ricardo Alonso-Zaldivar, "Health care overhaul racing against the clock"

Washington Post's Alec MacGillis, "In Retooled Health-Care System, Who Will Set Limits?"

Associated Press' Erica Werner, "Questions and answers about health legislation"

(AP)
ANOTHER STIMULUS?: As unemployment numbers continue to rise, the debate grows about whether the president's economic stimulus package passed earlier this year is doing enough and a second stimulus package should be on the table. The president yesterday didn't rule out a second stimulus and today, White House spokesman Robert Gibbs repeated that adding that it's not Mr. Obama's focus right now.

"[H]e's not ruling anything out, but at the same time he's not ruling anything in," Gibbs told reporters on today's flight from Moscow to Rome. "Obviously we passed a hefty recovery plan that implements over the course of about a two-year period of time, and we're on track with that implementation. ... So we're focused on the implementation of the first bill, and understand and acknowledge that adding jobs is going to take some time.

"So I think if you go back and look at the history of virtually every economic downturn -- and again this is as deep an economic downturn as we have seen since statistically since World War II and, probably when you add in all the financial meltdowns of last fall, easily since the Great Depression. Creating jobs happens at the very end, and that's what we anticipate will likely happen this time, though there are lots that we can do to get the economy back on track while we're working for creating jobs."

Politico's Victoria McGrane writes, "President Barack Obama says there's 'nothing' he 'would have done differently' about his economic stimulus plan, but one of his top outside economic advisers says the plan was 'a bit too small.' Democratic Sen. Claire McCaskill of Missouri says the idea of a second stimulus is a 'non-starter,' but Democratic Sen. Sheldon Whitehouse of Rhode Island says it 'should be on the table.' Senate Majority Leader Harry Reid (D-Nev.) says there's 'no showing that a second stimulus is needed,' but House Majority Leader Steny Hoyer (D-Md.) says Congress needs to be 'open to whether we need additional action.'

"Democrats are all over the map on the stimulus and the possibility of a sequel, and it's not hard to see why: When it comes to a second stimulus, they may be damned if they do and damned if they don't. "

And headlines like this can't help the Dems' cause either:

Washington Post's Lori Montgomery, "Power of Stimulus Slow to Take Hold"

Los Angeles Times' Doyle McManus, "Waiting for the stimulus 'oomph'"

The Washington Post's Dan Balz argues that the results of the stimulus may very well be Mr. Obama's legacy.

"Nothing may be more important to public assessments of President Obama's leadership than the state of the economy, and at this point there are political warning lights flashing. In light of the latest unemployment figures, there are more persistent questions coming at the administration. Did Obama and his team get it right last winter when they put together their $787 billion stimulus package, or did they undershoot? If they made a mistake, what should they do now?"

SOTOMAYOR

CBSNews.com's Prerana Swami, "Sotomayor's Critics and Fans"

Associated Press' Julie Hirschfeld Davis, "Sotomayor critics step up rhetoric before hearing"

NY Times Neil A. Lewis, "Senators Settling Into New Roles to Weigh Sotomayor Nomination"

Politico's Alex Isenstadt, "GOP war-games Sotomayor hearings"

LA Times' James Oliphant and David G. Savage, "American Bar Association gives Sonia Sotomayor its highest rating"

MICHAEL JACKSON

Associated Press' Suzanne Gamboa, "Resolution honoring Jackson faces GOP opposition"

Politico's Glenn Thrush, "Democrats have to negotiate Michael Jackson's oddball behavior"

The Hill's Jeremy P. Jacobs, "Texas Democrat joins stars at Jackson service"

Associated Press, "Bill Clinton on Haiti trip praises Michael Jackson"

SARAH PALIN

Associated Press' Beth Fouhy, "GOP candidates in Va., N.J. wary of Palin"

Gallup Poll, "Many Americans Still See Political Future for Palin"

Juneau Empire's Pat Forgey, "Palin's naming of new No. 2 raises questions"

MARK SANFORD

NY Times' Shaila Dewan, "Censure Adds to Sense Sanford May Survive Scandal"

Charleston City Paper's Greg Hambrick, "Sanford Scandal: Week Two"

IRAN

LA Times' Paul Richter, "Obama: U.S. has 'absolutely not' given OK for Israeli strike on Iran"

Associated Press' Anne Gearan, "Mullen: Strike on Iran an option, but a bad one"

Wall Street Journal's Yochi J. Dreazen, "U.S. Military Chief Warns of Rising Nuclear Threat"

FUTURE RACES

2009 NJ Governor: Newark Star-Ledger's Claire Heininger, "Federal aid to N.J. a lightning rod for Gov. Corzine, GOP candidate Christie during governor's race"

2009 VA Governor: Northern Virginia Daily's Garren Shipley, "Poll shows McDonnell in early lead over Deeds"

2010 CT Senate: Hartford Courant's Christopher Keating, "Raising Money To Unseat Dodd"

2010 FL Senate: Tampa Tribune's William March, "Crist far outpacing Rubio in fundraising for U.S. Senate race"

2010 FL Senate: St. Petersburg Times' Adam C. Smith, "Marco Rubio's fundraising numbers cast doubt on Senate bid, fellow Republicans say"

2010 FL Senate: Jacksonville Examiner's Kevin Michael Derby, "Meek raises $3 million for Senate race in Florida while Rubio sputters"

2010 KY Senate: Lexington Herald-Leader's Jack Brammer, "Bunning to stay in race despite fund-raising news"

2010 NH Senate: Manchester Union Leader, "Kelly Ayotte to explore 2010 run"

2010 PA Senate: Associated Press' Peter Jackson, "Specter may face 3-way nomination contest in 2010"

ETC:

Politico's John Bresnahan and Josh Gerstein, "Rove deposed in U.S. attorney probe"

Washington Post's Carol D. Leonnig, "Bribery Plea in Probe of Firm With Murtha Ties"

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