Vince Cable rebuked by No 10 as he stirs euro crisis

George Osborne was forced to intervene yesterday after Vince Cable warned that Greece would have to delay paying some of its debts.

By James Kirkup, and Andrew Porter

Downing Street quickly made it clear that the Liberal Democrat Business Secretary was not authorised to set out government policy on the eurozone crisis.

Greece Readies Crisis-Fighting Steps

Greek Prime Minister George Papandreou’s Cabinet is set to endorse additional deficit cuts and asset sales, fending off speculation that the country is headed to a restructuring.

The cost to insure Greek debt against default rose to a record and the yield on its 10-year bonds increased to a euro- era high after Standard & Poor’s said May 20 it may cut Italy’s credit rating. That warning came hours after Fitch Ratings cut Greece three grades.

Deep in crisis, Portugal tries to transform

Melides, Portugal — A former physical education teacher, Manuel Araujo puts his energy to use now as mayor of this sleepy village in the Portuguese south, springing into action to aid a resident panicked by a snake in her house in the thick of night and marshalling town workers to help another local fend off a home invasion by stinging bees.

Euro Drops to Lowest Level in Seven Weeks Against Dollar Amid Greek Crisis

The euro dropped to a seven-week low versus the dollar as Greece moved closer to defaulting on its obligations, bolstering concern the region’s sovereign-debt crisis is worsening.

The yen reached its strongest level versus the euro since the Group of Seven nations intervened in March to curb its gains after a record earthquake. Greece’s debt rating was cut by Fitch Ratings. Spanish voters may defeat Prime Minister Jose Luis Rodriguez Zapatero’s Socialists, who have cut spending to fight the debt crisis, in regional elections Sunday, polls show.

Five ways to solve the eurozone crisis

Myths and misinformation feed in to a general lack of ideas about how to save the eurozone

The crisis of the eurozone seems to be going from bad to worse. Not only have the key players not yet found convincing solutions for the fiscal problems in Greece, Ireland and Portugal but we are already witnessing the beginning of a political backlash that could undermine the achievements of decades of European integration. There is generally a lack of ideas about what needs to be done to turn things around so here are my suggestions: