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From the monetary fortress of the European Central Bank to the pro-European duchy of Luxembourg, policy makers are beginning to air their doubts that Greece can stay in the euro. “If Greece decides not to stay in the euro zone, we cannot force Greece,” German Finance Minister Wolfgang Schaeuble said at a conference sponsored by [...]

The second Greek bailout deal was finally clinched in the early hours of Tuesday morning. European markets and the euro were initially expected to rally after the market open – but a troika report leaked to the Financial Times could exacerbate fears in the market that Greece may not be able to hit its bailout [...]

The European Central Bank left its key interest rate unchanged at 1 percent on Thursday but President Mario Draghi promised relaxed rules for banks taking part in a long-term refinancing operation at the end of the month, boosting hopes that additional liquidity will be injected in the system. At the same time, he played his [...]

China is considering increasing its participation in the rescue funds aimed at resolving the European debt crisis, Chinese Premier Wen Jiabao told journalists on Thursday. But Wen did not made any explicit financial commitments for the European Financial Stability Facility (EFSF) or the upcoming European Stability Mechanism (ESM). At a joint media briefing in Beijing [...]

After hitting the highest level since the euro’s creation, unemployment in the 17-member single currency area will show no signs of abating, adding to worries that a prolonged recession may be in the cards, analysts said. Cuts in budget expenditure due to “draconian” austerity programs will lead to big job losses in the public sector [...]

European governments moved toward a confrontation over a second rescue package for Greece, just as a dimming fiscal outlook in Portugal opened a new front in the debt crisis. Bargaining with Greece over a debt writedown and its economic management came as European Union leaders signed off on key planks of the strategy to end [...]

The accord was eagerly greeted by the European Central Bank which has long pressed euro zone governments to put their houses in order. “It is the first step toward a fiscal union. It certainly will strengthen confidence in the euro area,” ECB President Mario Draghi said. Officially, the half-day summit focused on a strategy to [...]

Prospects for a comprehensive deal to resolve the euro zone debt crisis at a summit on Wednesday look dim, with deep disagreement remaining on critical aspects of the potential agreement, including how to give the region’s bailout fund greater firepower. EU officials and European diplomats are lowering expectations of a breakthrough when the 17 euro [...]

Treasury Secretary Timothy F. Geithner will increase pressure this week on his European counterparts to act forcefully amid U.S. concern that the continent’s debt crisis is hurting the global economy. “The consequences of delay are growing,” Lael Brainard, Treasury undersecretary for international affairs, said in a press briefing in Washington yesterday. “Against a backdrop of [...]