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French President Nicolas Sarkozy says S&P's credit downgrade of his country "changes nothing," though critics say it foreshadows disaster for the eurozone.

Will debt downgrades doom the eurozone recovery?

Standard & Poor's docks the credit ratings of France, Spain, Italy — and even the rescue fund charged with bailing out struggling European nations

 
An employee of German steel company Salzgitter AG: Germany's unemployment rate in December stood at 6.8 percent; Spain's, by contrast, had risen above 20 percent.

The German economic colossus

Europe's largest country is thriving while much of the continent faces economic ruin. Why?

 
British Prime Minister David Cameron effectively vetoed an economic deal that would have imposed strict new financial regulations on all EU nations, isolating his island nation from the rest of the EU.

The 'historic' economic deal to unite Europe — without Britain

After Prime Minister David Cameron vetoes a treaty to save the euro, the eurozone casts the United Kingdom aside and forges ahead

 
German Chancellor Angela Merkel and French President Nicolas Sarkozy presented a plan Monday that would penalize eurozone countries with out-of-control deficits.

Will the Merkel-Sarkozy plan fix Europe?

Europe's leaders move to impose fiscal discipline — just the sort of discipline that might have averted a debt crisis in the first place

 
Traders at the Chicago Board Options Exchange on Wednesday: Stocks surged after the Federal Reserve and other central banks announced a joint effort to ease Europe's debt crisis.

The West's attempt to rescue Europe: A mere band-aid?

Markets surge after wealthy nations unite to ease the European debt crisis — even though the eurozone's fundamental problems remain unsolved

 
David Frum

David Frum: Democratize the EU

If the EU is going to assume more control over debt-plagued nations' finances, it must first let Europeans elect the leaders in Brussels

 
European Central Bank President Mario Draghihi: Some analysts say the Central Bank should flood the market with money to ease the continent's financial crisis.

5 ways to save Europe

Europe is in crisis, and the fallout from its fast-approaching financial meltdown would hurt the U.S., too. Is a Fed bailout the answer?

 
"It's better to like beautiful girls than to be gay," Silvio Berlusconi once declared. The scandal-plagued Italian recently resigned as prime minister in the wake of his country's massive debt crisis.

The rise and fall of Silvio Berlusconi

The era of Berlusconi, Italy's longest-serving postwar prime minister, is finally over. Will Italy ever recover?

 
"Unhate" ads outside a Benetton store in Rome: The controversial ad of the Pope kissing an Egyptian Iman has been yanked after the Vatican complained.

Benetton's world-leaders-kissing ads: 'Brilliant' or 'hateful'?

The Italian clothing company sparks controversy by depicting the pope making out with an imam. Shockingly, the Vatican is not pleased

 
A woman walks past television screens showing Silvio Berlusconi's farewell speech: The controversial Italian politician may have resigned as prime minister, but he still controls much of the media.

Is Silvio Berlusconi really gone for good?

Italy's leader resigns over a crushing debt crisis, but some believe the survivor of myriad sex and corruption scandals will bounce back from this, too

 
Italian Prime Minister Silvio Berlusconi is out and economists say the country's debt is way beyond what it can manage long-term.

Italy's debt crisis: Why everyone is panicking

Fears that Italy will not be able to pay its creditors raises fears of another global economic meltdown

 
In the end, it wasn't bunga-bunga sex parties that brought down Italian Prime Minister Silvio Berlusconi: Instead, it's Italy's massive debt crisis that provoked the controversial leader's resignation.

Will getting rid of Berlusconi solve Italy's debt problems?

Italy's controversial prime minister bows to pressure and promises to resign — but analysts worry it won't be enough to save the debt-plagued nation

 
Daniel Larison

Daniel Larison: Europe's Catch-22

Dissent over the debt crisis in Greece proves that Western governments can rarely have both fiscal austerity and democratic accountability

 
As Greek voters continue to clamor for a renunciation of the unpopular bailout plan, Greek Prime Minister George Papandreou may be forced to resign. But would any successor be better equipped to placate the nation?

Does Greece need a new government?

The debt-burdened nation's prime minister, George Papandreou, is on thin ice after endangering a bailout his country desperately needs

 
David Frum

David Frum: Pay up, Germany

Germany long profited from the euro system that bankrupted Greece. Now it's time to pay for it

 
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