greece crisis

Why Japan Is Rushing to Aid Europe: It's All About China

World markets got a boost this week from Japan's pledge to help overly indebted EU nations. What's behind Japan's move? Sure, the spirit of global cooperation is part of it. But much more significant is Tokyo's need to keep pace with Beijing in the influence game.

Dow Dives 178 Points on Fears China May Hike Rates

The Dow tumbled Tuesday 178 points, or 1.6%, to close at 11,024 as part of a global sell-off in stocks fueled by further speculation that China will hike interest rates to fight inflation and renewed worries over the wobbly finances of Ireland, Portugal and Greece.

Greece: A Lesson in Overblown Market 'Crises'

To hear the pundits tell it, Greece's debt woes and accompanying civil disturbances signaled the end of the euro, or worse. Yet, the country's rebound gets little attention. This pattern gets repeated over and over, much to investors' detriment.

China Promises Continued Support for Europe

Chinese premier Wen Jiabao said his country will support European bonds and the euro currency. "I have made clear that China supports a stable euro," he said, according to BBC News.

European Commission Unveils Planned Debt Rules

The European Commission presented plans to punish countries whose excessive debt levels pose a potential risk to the euro. The proposals include automatic fines for countries that mismanage their finances and economies, BBC News said.

Austerity Could Push Europe Back into Recession, Stiglitz Says

Joseph Stiglitz, a Nobel Prize-winning economist, said Europe risks falling back into recession as governments slash spending in a bid to narrow their budget deficits. "Cutting back willy-nilly on high-return investments just to make the picture of the deficit look better is really foolish," Stiglitz said today, according to Bloomberg News.

Greek Economy Shrank 1.5% in Second Quarter

Greece%u2019s economy shrank 1.5% in the second quarter of the year as the government%u2019s austerity program bites. The country%u2019s statistics agency Elstat said the "significant reduction" in public spending contributed to the worsening recession, BBC News reported. The economy contracted 0.8% in the first quarter.

Rebuilding Greece: 'Strong Start,' but Miles Still to Go

The EU and the IMF have issued a glowing report card on Greece's reform efforts, but it's clear the country is hardly out of economic danger. Among the threats: Falling GDP, rising prices and the possibility of spiraling into ever-deeper budget cuts to offset falling tax revenue.

Greece Takes First Step Towards Pension Overhaul

Greece took a step towards overhauling its ailing public finances by giving preliminary approval for a bill that would increase the retirement age and cut benefits. The new law sets a retirement age of 65 for both men and women, and reduces payouts by basing pensions on lifetime income, rather than final salary, The New York Times reported. Currently, many Greeks can retire before they are 50.

Want a Stronger Recovery? Learn From Europe

After the U.S. spent trillions to prop up reckless banks and spark a recovery, growth and employment are anemic -- while bankers rake in ever-bigger bonuses. Germany's recovery, meanwhile, seems stronger and more durable. And even Greece is in a better situation than the U.S.

Greece May Sell or Lease Islands to Ease Debt Problems

Squeezed by a debt crisis, Greece may put some of its islands up for sale or long-term lease to raise cash for the government's ailing finances, according to the Guardian. Chinese and Russian investors are reportedly interested.

'The Eurozone
Is Not Going
to Fall Apart'

Ian Bremmer, author of The End of The Free Market, sees stern challenges ahead for Europe, but he thinks fears of the eurozone's dismantling are "overblown." He explains why in this video Q&A.

Greek Deficit Is Worse Than Expected, Debt Downgraded

Eurostat, the Luxembourg-based statistical agency for the European Union, revised its deficit forecast for Greece to 13.6% of gross domestic product, up from 12.9%. Also on Thursday, Moody's Investor Services downgraded its rating on Greece's sovereign debt and warns that further downgrades could be in the offing. The credit ratings agency says that the reduction in its rating to A3 from A2 is based on the view that there is a significant risk that the country's debt may only stabilize at a higher and more costly level than previously thought.