Standard & Poor's called the proposal to roll over Greek debt tantamount to default. In Germany, some economists are challenging German part in eurozone bailouts.
Greece's parliament approved an austerity package today. But if there's no agreement on restructuring debt payments, tensions are likely to rise anew in the fall.
The Greek Parliament passed an austerity package today, but the possibility of default still looms.
In replacing Dominique Strauss-Kahn as IMF chief, French Finance Minister Christine Lagarde becomes the first woman to lead the fund.
Greece is reluctant to pass wildly unpopular austerity measures that have brought thousands of angry protesters to the streets, but it has little choice.
Portugal and Ireland may follow Greece in asking for more financial help, which could drive up the cost of borrowing money across Europe and elsewhere.
The protests have become the largest social movement in Greece since martial law in 1974. More than a pushback against austerity, they hint at broad skepticism toward Europe's leaders.