Doubts Linger Despite Show of Euro-Zone Unity

BRUSSELS—European leaders' new measures Friday to tackle the euro zone's debt crisis—promising to use their sizeable rescue funds more flexibly and pave the way for the European Central Bank to assume an expanded role as supervisor for the euro zone's banking sector—were welcomed as a rare bold step in the right direction.

Euro to Hit $1.20 as Crisis Worsens, State Street Says

The euro will probably drop to $1.20 by year-end as Europe’s debt crisis worsens before it improves, according to State Street Corp. (STT), which oversees $16.9 trillion in custody assets.

Eurozone crisis causes aid cuts to poor, report says

The European debt crisis has led to cuts in government development aid to poor countries, says a new report by the aid watchdog Data. It is the first significant reduction in Europe-wide aid budgets for a decade.

Cyprus to hold crisis talks as bailout looms

(Reuters) - Cyprus' leaders will discuss on Tuesday options for reviving an economy on the verge of succumbing to a bailout, with a debate raging on whether the country should seek aid from the EU's rescue fund or look further afield.

Ten EU nations to press ahead with market transaction tax

BERLIN: Germany and nine other European Union nations will press ahead with plans to introduce a financial market transaction tax, following failed attempt for an agreement to levy it across the EU.

UK risk watchdog set to ease bank buffers

LONDON (Reuters) - The Bank of England's risk watchdog looks set to allow lenders next week to free up billions of pounds from their cash buffers and help haul the economy out of recession.

Investors head to Germany despite euro-zone crisis

CHICAGO (MarketWatch)-- Foreign direct investment in Germany increased by almost 7% in 2011, even in the face of the euro-zone crisis, according to a report released Friday by Ernst & Young.

German investor confidence tumbles in June

German investor confidence dropped sharply in June, sustaining its steepest fall in nearly 14 years, amid increased concerns over the health of Spain's banking system.

Germany to cut Greece slack after vote backs bailout

BERLIN (Reuters) - Germany may cut Greece some slack after its voters backed a pro-bailout party in weekend elections, with officials saying Athens might get more time to meet its savings goals, though longer-term economic reforms were still set in stone.

No let-up for Spain, Italy pain from Greek vote

MILAN/MADRID: Any hopes Italy and Spain may have had that the Greek election result would ease pressure on their own debt crises were dashed early on Monday when financial markets reacted as if nothing had changed.

Greek exit would be 'catastrophe', says former Greek PM

A Greek exit from the euro would be a "major catastrophe", former Greek PM George Papandreou has told the BBC.

EU crisis: Mario Monti raises spectre of crisis amid protests

MILAN/ROME: Italy is again flirting with economic disaster, Prime Minister Mario Monti said, as huge crowds massed in Rome in protest at his austerity measures a day ahead of an election in Greece that threatens to destabilise the whole euro zone.

In Euro Crisis, Obama Tries to Build on a Rapport With Merkel

WASHINGTON — At the end of a summit meeting at Camp David last month, as the other world leaders were heading for their helicopters, President Obama did what has become a habit during his years in the White House: he made time for an informal but deadly serious talk with Chancellor Angela Merkel of Germany.

Euro crisis: It's still not over

NEW YORK (CNNMoney) -- Spain officially requested a bailout for the nation's banks Saturday but euphoria about the weekend's announcement was short-lived.

Market Rally Fades Over Spanish Bank Rescue

A key consideration in the Spanish bank rescue is how investors will judge the Spanish government’s solvency if it is required to add 100 billion euros of debt guarantees to its already strapped finances.

Could Italy be next? Fears after Spain bank rescue

Even as the global economic community hailed an agreement to rescue Spain's stricken banks, there was concern in Rome on Sunday that investors could now begin treating Italy as the next weak link in the eurozone.

Greek unemployment hits record while French jobless rate reaches 10pc

Eurozone unemployment marched higher on Thursday as Greek joblessness reached a new record and France's jobless rate hit the psychologically damaging 10pc mark.

Europe crisis: Spain passes market test, Merkel douses summit hopes

MADRID/LONDON: Spain showed on Thursday that it can still access the credit markets at an affordable but rising cost against a backdrop of feverish behind-the-scenes planning for a likely European rescue of its debt-stricken banks.

Andrew Tyrie urges IMF to lead the fight against the eurozone 'fire', sees Greek exit from euro

The International Monetary Fund must take decisive control of the eurozone crisis or risk a “global economic fire”, Andrew Tyrie, the chairman of the Commons Treasury Select Committee, has warned.

G-7: We're watching Europe's debt crisis

NEW YORK (CNNMoney) -- Finance ministers from the world's seven largest economies held a conference call Tuesday about the ongoing European sovereign debt crisis, but did not announce any new rescue measures.

Closures, shortages loom as insurers exit Greece

ATHENS: Faced with the prospect of closing his family business and looking for work in Greece's sickly economy at the age of 65, Alkis Iliadis bemoans a decision by trade insurers to stop covering exports to his debt-choked country.

Spain's manufacturing sector sees contraction worsen

The rate of contraction in Spain's manufacturing sector was worse than that of Greece in May, according to a business survey. Markit's eurozone manufacturing purchasing managers' index for the whole eurozone dropped to 45.1 from 45.9 in April.

Eurozone unemployment at record high 11%

NEW YORK (CNNMoney) -- The 17-nation eurozone's unemployment rate reached the highest level since the creation of the common currency 13 years ago, climbing to 11% in April as employers slashed 110,000 jobs.

Spain's Leader Faces Doubts At 'Extreme Crunch Time'

MADRID—Six months after Prime Minister Mariano Rajoy won a parliamentary majority by promising to bring credibility and stability back to fiscally troubled Spain, doubts are growing over when and whether it's happening.

U.S. Steps Up Pressure on Europe to Resolve Euro Crisis

PARIS — President Barack Obama is putting increasing pressure on European officials to resolve the euro crisis, talking with the leaders of Germany, France and Italy to help lay the groundwork for action before a Group of 20 summit meeting to be held in June in Mexico.