Economy, Global Economy | featured news

Tens of thousands of Italian workers rallied in Rome on Saturday to protest pension cuts, tax hikes and labor reforms imposed by the government of Mario Monti and to demand more stable work, particularly for the young. The demonstration organized by Italy's main labor unions came a day after Monti's latest effort to stave off contagion from Europe's debt crisis. His Cabinet on Friday approved measures worth (EURO)80 billion ($100 billion) to spur economic growth, streamline the notoriously bloated public sector and lower the national debt.

French voters are choosing a new parliament Sunday that will determine how far Socialist President Francois Hollande can push for economic stimulus in France and around a debt-burdened, stagnant Europe.

The plan will include measures to prevent bank runs and push for the repeal of regulations that hinder competition, keep young people out of the work force or make it difficult to start businesses.

For a country that’s faced the worst economic recession in a generation, the U.S. is doing marvelously well by comparison to every major economy except for maybe China. GDP growth, still around 2 percent and expected to end the year close to that, is better in the U.S. than it is in Brazil, a country which grew China-style in 2010 at 7.5 percent. Once the shining start of the Latin American economies, Brazil is now at stall speed.

Inflation in the euro zone fell to its lowest level in more than a year in May, giving the European Central Bank more leeway to stimulate the flagging 17-nation economy as the intensifying debt crisis takes its toll on confidence.

India's industrial output was flat in April, deepening worries of an economic slowdown in Asia's third-largest economy and upping the pressure on the central bank to cut interest rates next week.

Britain's Treasury chief says that uncertainty over the future of Europe's single currency is threatening to keep Britain from returning to economic growth.

Spain could ask for a rescue of its struggling banks this weekend when European finance ministers hold an emergency conference call Saturday to discuss the country's financial problems, a move that would make it the fourth member of the 17-nation eurozone to seek outside help since the continent's debt crisis erupted two years ago.

Greece's economy shrank further in the first three months of 2012, shriveling at a yearly rate of 6.5 percent against a backdrop of painful wage cuts, tax hikes and record unemployment.