Yemen federation deal gives autonomy, not independence, to south

ADEN, Yemen (Reuters) - Yemen's president on Monday formally approved turning the country into a federal state, giving the south more autonomy and completing a milestone in his planned transition to democracy.

But the move was immediately rejected by some southerners who insist on a separate state, raising fears the impoverished country may face further instability on top of the challenges it already has from Islamist militants and a northern rebellion.