Markets across the world soared after the European Central Bank promised the creation of a $955 billion rescue fund for eurozone countries with debt problems. But some economists are worried about moral hazard – bailouts leading to reckless spending.
The German parliament approved the country's $28 billion contribution to the Greek bailout package on Friday. Chancellor Angela Merkel shifted from initial opposition to paying Greece's debts to concern over economic fallout in the rest of Europe.
Greece protests against the government's tough spending cuts broke out in Athens Thursday, was stocks plunged on Wall Street over concerns about tightening credit markets and declining global demand.
The Greece debt crisis, which is still subject to German parliamentary approval and may be challenged in court, is putting unsustainable stress on the European Central Bank, some analysts say.
The Greek debt crisis continued to roil European debt markets on Wednesday after a leading rating agency cut the country's debt status to junk. While short term aid to Greece is a near certainty, economists warn that more international cash – and painful political steps in Athens – will be needed.
The Greek debt crisis, which has sent bonds tumbling across southern Europe, has had a knock-on effect on stock markets in Asia. But one analyst says Asian banks and governments have limited exposure to Greek debt, so should weather the storm relatively unscathed.
Greek Prime Minister George Papandreou called his country a "sinking ship" as he requested a $56 billion bailout today. But Germany, which is key to any aid package, still isn't convinced that a Greece bailout is absolutely necessary.
As the Greek debt crisis rolls on, some in Britain worry that the crisis is being used to undermine economic sovereignty and pushes European integration further.
The Greece bailout package agreed to by European leaders and the International Monetary Fund last week decreases the likelihood of a Greek government default. But the wrangling over the bailout -- and the steps that left Greece in a financial hole -- raise questions about the prospects for the stability of the euro.
German Chancellor Angela Merkel received wide praise at home ahead of May elections for negotiating a bailout package for Greece that limits the costs to Germany.
Riot police fire stun grenades and rolling blackouts occur as some groups in Greece strike.
Protesters took to the streets of Athens on Thursday over government austerity measures. But anger is also growing in Germany at being asked to finance the Greece debt bailout.
German Chancellor Angela Merkel met Greece Prime Minister George Papandreou in Berlin today in an attempt to calm debt bailout tensions between Europe's economic powerhouse and the heavily indebted Mediterranean country.
The European Union is pushing Greece into deep economic reforms as a way to end the Greek debt crisis and stabilize the weakening euro.
A French air traffic controllers' strike has grounded dozens of flights in Paris, one of Europe's busiest air travel hubs. The first hints of spring appear to be bringing strike fever to Europe.
While Greece battles its debt crisis, Iceland – where major banks collapsed in the wake of the global financial meltdown – is gearing up for a referendum on whether its taxpayers will shoulder the burden of paying back billions of dollars of debt.
European Union (EU) leaders promised on Thursday that they stand waiting to help debt-laden Greece, if needed. But the euro declined as investors worried about the lack of a clear commitment to a bailout package.
Polls show that nearly two-thirds of Greeks support austerity measures to deal with the Greece debt crisis. But taxi drivers, facing new gas taxes, went on strike Thursday.
European Union leaders gathering for a crucial summit Thursday face tough choices: come to Greece’s rescue with the first ever bail out of a eurozone state or hold back and see if Greek spending cuts and reforms can avert a default.
Stocks rallied in the US and in Europe on Tuesday on expectations of an emergency European Union bailout for Greece. But Greece, with a ballooning national debt, is not out of the woods yet.
While much of Europe is wary of the bear to the east, Germany continues to pull Russia into European culture and business, although some recent bilateral deals have faltered.
The Greek-owned Maran Centaurus was seized Sunday more than 800 miles east of Mogadishu fully loaded with an estimated 2 million barrels of oil heading for New Orleans from Jeddah, Saudi Arabia.
Athens hopes the gallery, which opened Saturday, will push the British Museum to relinquish its half of the famed Parthenon Marbles.