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:

East Europe Faces Risks From Euro Crisis, Inflation, EBRD Says

Eastern Europe and central Asia are at risk from a deepening debt crisis in the euro area and a pickup in inflation stoked by a recovery in consumer demand, the European Bank for Reconstruction and Development said.

The EBRD raised its 2011 economic growth forecast for the 29 countries in which it invests to 4.6 percent from 4.2 percent predicted in January, the London-based bank said today in a report distributed at its annual meeting in Astana, Kazakhstan. It expects growth to slow to 4.4 percent next year.

Merkel Says Euro Crisis Means IMF Post Must Stay in Europe

May 19 (Bloomberg) -- German Chancellor Angela Merkel said that a European is best placed to lead the International Monetary Fund given the demands of the euro-area debt crisis.

"Naturally the developing countries have a claim on the highest position of the IMF or World Bank but the current situation speaks for a European candidate given the considerable problems of the euro," Merkel told reporters in Berlin today.

Greek debt restructure on the cards to stave off euro crisis

European officials have conceded that Greece may have to restructure its debt as part of a second bail-out package to shore up the Mediterranean nation and stave off a crisis in the euro.

A "reprofiling" or "soft restructuring" of bonds held by private investors, defined as a voluntary loan "extension", was floated by Jean-Claude Juncker, Luxembourg's prime minister and president of the eurozone finance ministers, after a Brussels meeting.