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Dead-End

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C ompared with the rest of the developed world, Europe's schools are undedùnded,antiqua~

ed and failingto prepare kids for a knowledge- based economy.Even worse: the problem is especially acute for the children of immigrants, widening gaps in what are already divided societies. Page 34

NO FUTURE: Many graduates head straight for welfare relis

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SCANDAL: Did U.S. Marines massacre Iraqi civilians in Haditha?

IRAQ: Probing a

Bloodbath by EvanThomas

andJohn Barry 20

AFGHANISTAN: A Violent Wake-Up CalI

by Ron Moreau, Sami Yousafzai

andJoe Cochrane 30 IRAN: Diplo-Dancing With Iran byMichaelHirsh 33

EUROPE: Where the Future Is a Dead End

byStefanTheil 34

INDONESIA:

A Cruel Blow 42

U.S. AFFAIRS: Politics of the Altar byDebraRosènberg 44 BUSINESS:Dump and Run byKarenLowryMiller 46

GLOBALINVESTOR:Hank~

Likely Headaches

by RobertJ. Samuelson 49 WORLD CUP:Hail to the Kings byMacMargolis 50

World of Wonder

byHenryA. Kissinger 59 ART: Painting Picasso byTaraPepper , 62 MOVIES: Rosemary's Babies

byDevinGordon 64

GOOD LIFE TRAVEL:Beyond Room Service and a Movie 69

DEPARTMENTS

PERISCOPE 4

PERSPECTIVES 6

WORLDVIEW:

DenisMacShane 19

THE LAST WaRD:

MoktarLamani 72

WHY BRAZIL WINS: The World Cup favorites field a dominating team this year COVER:Michael Trippel-Ostkreuz. Inset: Thomas lohnes-AFP-GETTYIMAGES.

Vol. CXlVlI, No. 24. June 12, 2006@2006 by NEWSWEEK,Inc., 251 West 57th Street, New York, NY 10019. Printed by Roto Smeets, Ween, Netherlands. Ali rights reserved. Registered at the Post Office as a newspaper. Copyright underthe International Copyright Convention. Copyright reserved under the Pan American Convention. Registered in the Philippines PaIent Office. ln theU.S.A.:Postmaster: send

addresschanges10

NEWSWEEKINTERNATIONAL,

251Wesl57thStreet,NewYork,NY10019:

periodical postage paid al New York, N.Y., and at additional mailing offices. NEWSWEEKINTERNATIONALiswritten and edited for a worldwide audience and is published weekly, except occasionally Iwo issues are combined into one expanded issue which counts as two subscriplion copies, in the U.K. by NEWSWEEK,Inc. (lSSN 0163-7053). Toorderreprints (minimum orderrequired: 500 copies) orrequest pennission to republish a NEWSWEEKaniclepleasecali 1-212-445-4870 or fax 1-212-445-5764. air. Resp.ltalia Marco Provasi: rappr.IMO sri, via G. da Velale 11-20162 Milano: autoTrib. MI N. 453 dei 12/06/87 sped. Abb. Post. 45% an. 2 comma20/b legge 23/12/96 n. 662 Milano: Repr. pour la France: E.M.D. France S.

A., 8.P. 1029-59011 Lille Cedex-Tel 03.20.30.03.02. le Directeur de la Publication: Alan F.Bone-C.P.P.A.P. No. 0708C83393. Ce numéro comprend un encart de deux pages (abonnement) situé entre les folios 2 et 55. Edileurresponsable pour la Belgique: Freddy Degroux, Youth & MediaLink, De Wittesrraat 2, B-2600 Berchem.

NEWSWEEK JUNE 12, 2006

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