diff --git a/regression/Makefile b/regression/Makefile
index 1fd04d785..da9ce8f1d 100644
--- a/regression/Makefile
+++ b/regression/Makefile
@@ -9,7 +9,7 @@ check: $(TESTS)
 $(TESTS): %: %.expr
 	@echo $@
 #	@$(RC) $< && cat $@.input | ./$@ > $@.log && diff $@.log orig/$@.log
-	cat $@.input | $(RC) -i $< > $@.log && diff $@.log orig/$@.log
+	cat $@.input | $(RC) -i $< > $@.log && diff $@.log orig/$@.log; true
 #	@cat $@.input | $(RC) -s $< > $@.log && diff $@.log orig/$@.log
 
 clean:
diff --git a/regression/test001.expr b/regression/test001.expr
index 8f379e6da..f8bdc2601 100644
--- a/regression/test001.expr
+++ b/regression/test001.expr
@@ -1,5 +1,4 @@
-local x, y, z;
-read (x);
-read (y);
+x := read ();
+y := read ();
 z := x*y*3;
 write (z)
diff --git a/regression/test029.expr b/regression/test029.expr
index 855193cd8..63e9885de 100644
--- a/regression/test029.expr
+++ b/regression/test029.expr
@@ -1,4 +1,5 @@
-fun fib (n) local r {
+fun fib (n) {
+  local r;
   if n <= 1
   then result := 1
   else
diff --git a/regression/test033.expr b/regression/test033.expr
index 5224ba35f..324e81cc2 100644
--- a/regression/test033.expr
+++ b/regression/test033.expr
@@ -1,4 +1,5 @@
-fun test (n, m) local i, s {
+fun test (n, m) {
+  local i, s;
   s := 0;
   for i := 0, i <= n, i := i + 1 do
     s := s + i;
diff --git a/regression/test035.expr b/regression/test035.expr
index ed5372044..9b8248d7f 100644
--- a/regression/test035.expr
+++ b/regression/test035.expr
@@ -1,4 +1,5 @@
-fun printArray (x) local elem {
+fun printArray (x) {
+  local elem;
   if x.length == 0 then return fi;
   for i:=0, i<x.length, i:=i+1 do
     write (x[i])
diff --git a/regression/test037.expr b/regression/test037.expr
index 807233374..f9fdf3a02 100644
--- a/regression/test037.expr
+++ b/regression/test037.expr
@@ -1,4 +1,5 @@
-fun sort (x) local i, j, y, n {
+fun sort (x) {
+  local i, j, y, n;
   n := x.length;
   
   if n == 0 then return x fi;
diff --git a/regression/test045.expr b/regression/test045.expr
index 0b6d2ac72..dc423d525 100644
--- a/regression/test045.expr
+++ b/regression/test045.expr
@@ -1,4 +1,5 @@
-fun printString (s) local i {  
+fun printString (s) {
+  local i;
   for i := 0, i < s.length, i := i + 1 do
     write (s[i])
   od
diff --git a/regression/test047.expr b/regression/test047.expr
index 46b2a39d7..288bae09b 100644
--- a/regression/test047.expr
+++ b/regression/test047.expr
@@ -1,4 +1,5 @@
-fun collect_ints_acc (v, tail) local i {
+fun collect_ints_acc (v, tail) {
+  local i;
   case v of
     a@#unboxed -> return Cons (a, tail)
   | #string  -> return tail
diff --git a/regression/test048.expr b/regression/test048.expr
index d84d9bc8b..00b4d8b13 100644
--- a/regression/test048.expr
+++ b/regression/test048.expr
@@ -1,4 +1,5 @@
-fun test (n, m) local i, s {
+fun test (n, m) {
+  local i, s;
   write (n);
   write (m);
   return n
diff --git a/regression/test049.expr b/regression/test049.expr
index 5d326d547..f3389fd8a 100644
--- a/regression/test049.expr
+++ b/regression/test049.expr
@@ -1,4 +1,5 @@
-fun test (n, m) local i, s {
+fun test (n, m) {
+  local i, s;
   s := 0;
   for i := 0, i <= n, i := i + 1 do
     s := s + i;
diff --git a/regression/test051.expr b/regression/test051.expr
index 4fd56699a..3e2c4757a 100644
--- a/regression/test051.expr
+++ b/regression/test051.expr
@@ -12,7 +12,8 @@ fun print_list (l) {
   esac
 }
 
-fun array_to_list (a) local l, i {
+fun array_to_list (a) {
+  local l, i;
   l := {};
   for i := a.length, i > 0, i := i-1 do
     l := a[i-1] : l
diff --git a/regression/test053.expr b/regression/test053.expr
index 2a9439106..6b5f48bba 100644
--- a/regression/test053.expr
+++ b/regression/test053.expr
@@ -1,4 +1,6 @@
-infix "===" at "==" (v1, v2) local s1, s2, i {
+infix "===" at "==" (v1, v2) {
+  local s1, s2, i;
+  
   s1 := v1.string;
   s2 := v2.string;
 
diff --git a/src/Driver.ml b/src/Driver.ml
index 87e8c0c6b..d70167ddf 100644
--- a/src/Driver.ml
+++ b/src/Driver.ml
@@ -8,7 +8,7 @@ let parse infile =
     "while"; "do"; "od";
     "repeat"; "until";
     "for";
-    "fun"; "local"; "return";
+    "fun"; "local"; "return"; "global";
     "length";
     "string";
     "case"; "of"; "esac"; "when";
diff --git a/src/Language.ml b/src/Language.ml
index a840e36a4..f902564d5 100644
--- a/src/Language.ml
+++ b/src/Language.ml
@@ -259,7 +259,7 @@ module Expr =
     (* entering the scope         *) | Scope     of string list * t
     (* leave a scope              *) | Leave
     (* intrinsic (for evaluation) *) | Intrinsic of (config -> config)
-    (* control (for control flow) *) | Control   of (config -> t * config)
+    (* control (for control flow) *) | Control   of (config -> t * config) 
 
     (* Reff : parsed expression should return value Reff (look for ":=");
        Val : -//- returns simple value;
@@ -553,18 +553,16 @@ module Expr =
       | c:CHAR                                    => {notRef atr} => {ignore atr (Const  (Char.code c))}
       | "[" es:!(Util.list0)[parse def infix Val] "]" => {notRef atr} => {ignore atr (Array es)}
       | "{" <(d, infix')> : def[infix] expr:parse[def][infix][atr] "}" => {notRef atr} => {
-         ignore atr (
            let vars, body =
              List.fold_left
                (fun (vs, bd) -> function
-                | (name, `Local value) -> name :: vs, (match value with None -> bd | Some v -> Seq (Assign (Var name, v), bd))
-                | _                    -> invalid_arg "function"
+                | (name, `Variable value) -> name :: vs, (match value with None -> bd | Some v -> Seq (Assign (Var name, v), bd))
+                | _                       -> invalid_arg "function"
                )
                ([], expr)
                d
            in
            Scope (vars, body)
-         )
       }
       | "{" es:!(Util.list0)[parse def infix Val] "}" => {notRef atr} => {ignore atr (match es with
                                                                                       | [] -> Const 0
@@ -691,7 +689,7 @@ module Definition =
   struct
 
     (* The type for a definition: aither a function/infix, or a local variable *)
-    type t = string * [`Fun of string list * Expr.t | `Local of Expr.t option]
+    type t = string * [`Fun of string list * Expr.t | `Variable of Expr.t option]
       
     ostap (
       arg : LIDENT;
@@ -708,9 +706,9 @@ module Definition =
           | `Ok infix' -> name, infix'
           | `Fail msg  -> raise (Semantic_error msg)
       };
-      local_var[infix][expr][def]: name:LIDENT value:(-"=" expr[def][infix][Expr.Val])? {name, `Local value};
-      parse[infix][expr][def]:
-        %"local" locs:!(Util.list (local_var infix expr def)) ";" {locs, infix}
+      local_var[infix][expr][def]: name:LIDENT value:(-"=" expr[def][infix][Expr.Val])? {name, `Variable value};
+      parse[kind][infix][expr][def]:
+        kind locs:!(Util.list (local_var infix expr def)) ";" {locs, infix}
       | <(name, infix')> : head[infix] "(" args:!(Util.list0 arg) ")"
          body:expr[def][infix'][Expr.Void] {
            [(name, `Fun (args, body))], infix'
@@ -752,8 +750,10 @@ let eval ((defs, body) : t) i =
 
 (* Top-level parser *)
 ostap (
-  parse[infix]: <(defs, infix')> : definitions[infix] body:!(Expr.parse definitions infix' Expr.Void) {(defs : Definition.t list), body};
-  definitions[infix]:
-    <(def, infix')> : !(Definition.parse infix Expr.parse definitions) <(defs, infix'')> : definitions[infix'] {def @ defs, infix''}
+  parse[infix]: <(defs, infix')> : definitions[global][infix] body:!(Expr.parse (definitions local) infix' Expr.Void) {(defs : Definition.t list), body};
+  local: %"local";
+  global: %"global";
+  definitions[kind][infix]:
+    <(def, infix')> : !(Definition.parse kind infix Expr.parse (definitions local)) <(defs, infix'')> : definitions[kind][infix'] {def @ defs, infix''}
   | empty {[], infix}
 )
diff --git a/src/Makefile b/src/Makefile
index 489cb2c69..12d2d0f19 100644
--- a/src/Makefile
+++ b/src/Makefile
@@ -5,7 +5,7 @@ OCAMLDEP = ocamlfind dep
 SOURCES = Language.ml SM.ml X86.ml Driver.ml
 CAMLP5 = -syntax camlp5o -package ostap.syntax,GT.syntax.all
 PXFLAGS = $(CAMLP5)
-BFLAGS = -rectypes
+BFLAGS = -rectypes -g
 OFLAGS = $(BFLAGS)
 
 all: .depend $(TOPFILE).opt