Spain hasn't seen unemployment this bad since Franco

Not since the days of Franco has Spain suffered such high unemployment rates. The country was virtually a feudal, agrarian economy the last time almost six million workers were unemployed.

Italy’s Rating Cut by Fitch as Election Threatens Gridlock

Italy’s credit rating was cut one level by Fitch Ratings as an inconclusive election in February produced political paralysis that threatens the country’s ability to respond to a recession and the European debt crisis.

Greece may still have to quit euro - Merkel ally

BERLIN (Reuters) - Greece remains the biggest risk for the euro zone despite a calming of its economic and political crisis and may still have to leave the common currency, a senior conservative ally of German Chancellor Angela Merkel said.

French central bank sees flat economy in first quarter

PARIS: France will barely dodge recession in the first quarter of the year, with the weak economy hurting the government's efforts to rein in the budget deficit, data showed on Friday.

Europe's recession deepens - ECB

The European Central Bank downgraded its forecast for the eurozone economy Thursday but decided against cutting interest rates to a new record low despite tame inflation, record unemployment and political instability in Italy.