Greece Forms New Government
On Wednesday Greece managed to agree in principle to form a conservative coalition government, with three pro-bailout parties agreeing to cooperate and giving the coalition a majority of 179 seats.
G-20 Boosts IMF Firewall, Pressures Germany
At the summit meeting of G-20 leaders in Los Cabos, Mexico, the focus was on strengthening the firewall of the IMF and pushing Germany to relent on pooled debt and increasing deficit spending.
Pro-Bailout Party Wins Greek Election
Voters in Greece on Sunday let the world know that they were not quite ready to depart the euro.
Spain, Cyprus Downgraded
Moody's cut the ratings of Spain and Cyprus on Wednesday. Bond yields topped 7% for Spain, and in Italy’s first bond sale since Spain’s bailout yields surged.
Southern Eurozone’s Woes Simmer On
Despite a weekend bailout for Spain’s banking sector that was meant to reassure investors, markets continued to punish the southern eurozone.
Papandreou Says Greece Will Stay in Eurozone
Papandreou, the former Greek prime minister, said the country has “a few weeks” before its government runs out of money and that this is a “make-or-break” period.
Spain Accepts Bailout
Spain accepted a bailout Saturday for its financial sector, and Italy stepped up into the spotlight over concerns that it may be the next country to request aid.
Spanish Banks Downgraded
Moody’s cut the ratings of 16 Spanish banks, taking Banco Santander and Banco Bilbao Vizcaya Argentaria down three notches each. Fitch, meanwhile, dropped Greece into its lowest level in junk territory.
Talk of Greek Euro Exit Grows as Political Deadlock Continues
More than a week after elections brought anti-austerity parties to the fore, the task of brokering a compromise is in the hands of President Papoulias, who thus far has been as unsuccessful as the party leaders themselves.
Greek Mandate Still Unfulfilled
Four days after Greek elections that left five anti-bailout parties seated in Parliament, a ruling coalition still has not emerged.