Europe, Europe Debt Crisis | featured news

European Central Bank policymaker Athanasios Orphanides called for euro zone leaders to abandon plans to make private sector investors help reduce Greece's debts, but his push showed no sign of gaining any traction in Europe's capitals on Friday.

Stocks rose sharply on the first trading day of 2012 as upbeat U.S. economic data overshadowed continuing concerns about the European debt crisis.

Greece faces another tough year in 2012 but must stick to its program of austerity and reform to stay in the euro, Prime Minister Lucas Papademos said in a pre-recorded New Year's Eve address.

Spain's new government said on Friday the public deficit for 2011 would come in at 8 percent of gross domestic product, well above a target of 6 percent, and announced income and property tax hikes and a civil servant wage freeze in response.

Just three years ago, the euro was being praised as the can-do currency that had delivered unprecedented prosperity in Europe. Now, it's widely derided as a hugely flawed experiment in the wake of a debt crisis that's threatening its very existence — an uncomfortable backdrop as the currency's notes and coins hit their first decade in circulation on Jan. 1.

Italian bond yields are expected to fall from recent record highs in an auction on Thursday in a sign the European Central Bank has managed to ease market pressure, at least for now, with its big injection of longer-term funds earlier this month.

Italy’s Senate voted overwhelmingly in favor of a package aimed at eliminating Italy’s budget deficit by 2013 and stimulating its economy as part of a broader plan to stabilize the euro.

Stocks are surging following encouraging signs out of Europe and a jump in apartment building in the U.S. The Dow Jones industrial average jumped more than 300 points....

Moody's on Friday cut Belgium's credit rating by two notches, saying the euro zone debt crisis increases funding risks for countries with high public debt burdens.

Prime Minister David Cameron stood before Parliament on Monday and forcefully defended his decision to veto key decisions at last week’s European summit meeting to rescue the euro, asserting he made the only reasonable choice to protect Britain’s national interests even though critics — including some within his own coalition government — contend he has effectively marginalized the country’s influence in Europe.