Can Spain hang on? Spain is now closest to the precipice. A Spanish bailout would dramatically increase the chances of the euro breaking up

Spain is now closest to the precipice. A Spanish bailout would dramatically increase the chances of the euro breaking up. The probability of a disorderly disintegration of the world’s second-largest currency would rise from low to near even if Spain goes.The capacity of the Spanish state to fund itself is a central question not only for Europe, but for the world. It is difficult to see how a global depression could be avoided in the wake of the utterly...

Iceland's President Olafur Ragnar Grimsson has said that the UK and the Netherlands will get back the 4bn euros (£3.5bn) they paid when Iceland's banking system collapsed in 2008.

Iceland's President Olafur Ragnar Grimsson has said that the UK and the Netherlands will get back the 4bn euros (£3.5bn) they paid when Iceland's banking system collapsed in 2008.That is despite the country rejecting the latest repayment plan in a referendum at the weekend.Mr Grimsson told the BBC assets from the collapsed bank Landsbanki would "in all likelihood" cover what was owed.The UK has said the matter will go to an international court.Iceland's...

From today (11 April) it is illegal for Muslim women in France to cover their faces with veils in public.

It's the first European country to pass the law but there's been criticism that it's pointless because only a minority of women wear them.Any woman caught wearing the burka or niqab faces a fine and will be asked to take citizenship lessons. She can also be subject to an investigation.If police find her husband is forcing her to cover up, he could face a fine of 25,000 euros (£22,000) and a possible jail sentence.In the 18th district of Paris, is...

third time in a year the European Union is going through the same ritual, bailing out another insolvent country. Portugal now follows Greece and Ireland to the European welfare office to ask for new loans on the condition of ever more drastic spending cuts.

For the third time in a year the European Union is going through the same ritual, bailing out another insolvent country. Portugal now follows Greece and Ireland to the European welfare office to ask for new loans on the condition of ever more drastic spending cuts.So far the markets have taken Europe’s third successive sovereign financial crisis in stride. But many economists are a good deal more alarmed, most notably because the bailout formula...

The European Union warned Friday that diplomacy on climate change was moving too slowly after UN-led talks in Bangkok eked out an agreement on an agenda for further negotiations this year.

"Our overall sense is things are moving slow, too slow for Europe's taste. And we cannot achieve what we need to achieve before the end of this year with this speed," EU Climate Commissioner Connie Hedegaard said."Too often too much time is spent on how to proceed," she told reporters on a visit to Washington. "What we need is to come down to the content side of this and that is urgent."The four-day session in Bangkok, which was marked by feuds between...

Italy on Sunday urged its European partners to share the burden of the thousands of migrants reaching its shores from North Africa during the region's upheavals, but key German officials rejected the request for help.

"Italy has to resolve its refugee problem on its own," German Interior Minister Hans-Peter Friedrich told daily Welt's Monday edition.Rome's newly stated policy of issuing visas to migrants from North Africa amounts to a violation of the European Union's Schengen rules for visa-free travel across most of the bloc, Friedrich was quoted as saying. He vowed to bring up the issue at an EU interior minister meeting starting in Luxembourg on Monday.German...