Europe, Global Economy | featured news

Italy's premier-designate Mario Monti began talks Monday to create a new government tasked with overhauling an ailing economy.

A rare protest by members of Portugal's armed forces against proposed pay and benefit cuts is held in Portugal's capital Lisbon.

Italian Premier Silvio Berlusconi resigned today after parliament's lower chamber passed European-demanded reforms, ending a 17-year political era and setting in motion a transition aimed at bringing the country back from the brink of economic crisis.

It's no wonder that global markets are so jittery. The world's three largest economies can't continue along their current paths, and everybody knows it. Investors watch nervously for signs that China is headed toward a hard landing, that America will sink back into recession, and that the euro zone will simply implode.

Italy's Senate approved economic reforms intended to reverse a collapse of market confidence on Friday, kicking off a rapid transition that will end the era of Silvio Berlusconi and clear the way for an emergency government within days.

The shock waves of Europe's debt crisis will take a toll on corporate America, particularly sellers of cars, consumer products and basic materials that generate significant revenue on the continent.

Greek PM George Papandreou says an agreement has been reached on the creation of an interim government that will secure the new debt deal.

Italian borrowing costs reached breaking point on Wednesday after Prime Minister Silvio Berlusconi's insistence on elections instead of an interim government opened the way to prolonged instability and delays to long-promised economic reforms.

The global "Day of Rage" against the world's financial system won some limited sympathy from political and economic leaders on Sunday, after protests that were peaceful everywhere but Italy.

Finance Ministers and Central Bankers from members states within the Group of 20 said Saturday they saw no imminent threat of a recession as the European debt crisis unfolds.