- Marco Rubio: U.S. at social, moral crossroads
- ‘We’re coming for you, Barack Obama’: Top U.S. official discloses threat from ISIL
- White flags baffle NYPD: ‘We’re lucky it wasn’t a bomb’
- N.Y. Gov. Cuomo’s office interfered with, pressured corruption commission: report
- Brit lawmaker: I would fire on Israel if I lived in Gaza
- VA apologizes to forgotten Marine veteran locked in Fla. clinic, forced to call 911
- U.S. social and economic trends on worrisome track, survey finds
- McDonald nomination unanimously referred to full Senate
- Chuck Norris honorary chairman of NRA voter registration campaign
- GOP outraged Obamacare investigators able to get coverage with fake IDs
Top EU official seeks closer political, financial union
Question of the Day
While waiting for approval of the agreements, the ECB has stepped in to buy government bonds and drive down borrowing costs for Italy and Spain.
Fears that the eurozone’s third- and fourth-largest economies, respectively, may get sucked into Europe’s debt crisis have stoked fears they would lose access to market funding and be forced into requesting bailouts, as Greece, Ireland and Portugal already have.
The ECB launched the purchases only reluctantly, and Mr. Trichet indicated he expected the bailout fund — the European Financial Stability Facility — to be in a position to take them over.
Still, the 440 billion euros ($597 billion) available from the EFSF has not reassured markets, and so far, European leaders have resisted suggestions to increase its size.
Markets also have watched nervously as eurozone authorities pushed Greece to make more cutbacks to qualify for an installment of bailout money that is needed to keep the country from defaulting.
Greece’s international debt inspectors will return to Athens on Thursday after suspending their review of the country’s finances early this month amid talk of budget shortfalls.
Once the fact-finding mission has made its conclusions, the finance ministers of the eurozone will organize a special meeting in October to assess them.
A default by Greece or another country would send shock waves through the global economy, particularly in Europe, authorities fear. Banks would suffer such large losses on government bonds they hold that they would cut off credit to the wider economy and cause a recession.
David McHugh in Frankfurt, Germany, contributed to this report.
TWT Video Picks
The subsidies are a hit with patients who don't exist
- Democratic Sen. John Walsh plagiarized War College master's thesis: report
- Obama orders Pentagon advisers to Ukraine
- House task force to recommend National Guard on border, faster deportations
- 'We're coming for you, Barack Obama': Top U.S. official discloses threat from ISIL terrorists
- Hezbollah warring in Syria could join fight against Israel
- Netanyahu's Wikipedia page replaced with giant Palestinian flag
- Hamas orders civilians to die in Israeli airstrikes
- Pro-Russia rebel commander suggests passengers died days before Malaysian flight
- TYRRELL: The birth of a new alignment in the Middle East
- Despite rhetoric, gun prosecutions plummet under Obama
Obama's biggest White House 'fails'
Celebrities turned politicians
Athletes turned actors
20 gadgets that changed the world
Fighting in Iraq