Greek-German Relations Strained in Debt Negotiations
Germany's get-tough attitude toward Greece, echoed by Austria, Finland and the Netherlands, has angered Greek officials who say they have done everything they were asked to do in order to be granted a second bailout by the troika of the European Union, International Monetary Fund and European Central Bank.
Eurozone Ministers May Seek IMF Help
Although eurozone ministers agreed Tuesday to boost the value of the rescue fund, they acknowledged that they might call on the International Monetary Fund for help to do so after Italy's borrowing costs soared nearly to 8%, a euro lifetime high.
Merkel, Sarkozy Split on Debt Bailout
As the clock ticks down to a weekend summit meeting of euro zone leaders to discuss a plan to deal with the euro zone debt crisis, disagreement between France and Germany over the European Financial Stability Facility threatens to bog down the process and escalate the financial crisis.
Belgium Nationalizes Part of Troubled Bank Dexia
Belgian-French bank Dexia is splitting up after the Belgian government announced Monday that it would buy the local consumer lending unit of the company, leaving its Luxembourg unit and French municipal lending division, among other assets, to be sold off to raise capital for a so-called bad bank.