Europe, Global Economy | featured news

There has been a great deal of austerity-bashing -- that is to say Germany-bashing -- this French election season. Buoyed by his success in the first round, Socialist candidate Francois Hollande declared last Thursday: "It is not for Germany to decide for the rest of Europe." Vowing to reset Europe on a growth path, he said, "we're not just any country, we can change the situation."

Unemployment rose to 10.9 percent in April, the 11th monthly increase in row, and is likely to add to tension ahead of national elections in Greece and France on Sunday.

Spain's latest credit rating downgrade has thrown into sharp relief the need to revive a banking sector that could need another 100 billion euros to cover bad debts in order to avoid exposing another weak flank in the euro zone crisis.

Far-rightist Marine Le Pen threw France's presidential race wide open on Sunday by scoring nearly 20 percent in the first round - votes that may determine the runoff between Socialist favorite Francois Hollande and conservative President Nicolas Sarkozy.

Like Barack Obama, Nicolas Sarkozy swept to power on a wave of hope for change. Sarkozy's wave crashed on the global financial crisis and his own failings.

Italian Prime Minister Mario Monti declared on Wednesday that reviving economic growth now had to take priority over belt tightening that could plunge the country deeper into recession.

Though Spain’s economy is struggling, prostitution is booming, exploding into public view in cities and towns.

Just when we thought the euro crisis had subsided for a bit, Spain is bursting back up as a trouble spot. On Wednesday, Prime Minister Mariano Rajoy said the country is “facing an economic situation of extreme difficulty.” Spain is struggling to borrow money and can’t hit its deficit targets.

The global economy has stepped back from the brink of danger and signs of stabilization are emerging from the euro zone and the United States, but high debt levels in developed markets and rising oil prices are key risks ahead, the IMF said on Sunday.

Decision day for the Greek debt crisis is drawing near, and insiders are predicting that if things go awry it could cost the world economy $1 trillion.