Spain has unveiled an ambitious budget plan. Will it be enough to get the job done? Meanwhile, what does the mixed economic data in the U.S. mean for the economy?
Markets are shaken by the mass protests against austerity measures in Greece and Spain. Investors are questioning their earlier optimism over the prospects of recovery in Europe.
In an exclusive broadcast interview, the International Monetary Fund chief urged U.S. leaders to take swift action on the so-called fiscal cliff, and called for European leaders to continue vetting the region's debt crisis.
European leaders are meeting in Rome today. The continent has been in a state of relative calm for a couple of weeks, ever since the European Central Bank bought time for troubled nations with a plan to buy up unlimited amounts of government bonds.
In Brussels, people are smiling over a new bailout plan to save the euro. Meanwhile in Greece, summer sun and good food are taking the edge off harsh reality.
Last week in Europe there was relative euphoria: The European Central Bank said it stood ready to buy the government bonds of any nation that came seeking its help. That would help countries like Spain and Italy keep their borrowing costs down, and keep them from lapsing into financial crisis.
Markets have been a brighter in the past week after the European Central Bank announced a plan to keep Spain, Italy and other troubled economies afloat. But the possibility of even more austerity on top of sky-high unemployment has the Spanish worried.
