We have just come from a week when officials of the European Union openly warned of the possible downfall of the euro. Billionaire investor George Soros has gone even further. He says the euro crisis could bring down the entire E.U. Teri Schultz reports from Brussels.
Spain's borrowing costs hit record highs this week and European stock markets have slumped over fears Madrid can't afford the price tag required to prop up its ailing banks. It's looking ever more likely the country will need some kind of bailout.
After watching Greece from afar for years, many Spaniards now believe Spain's number is up.
A tourist in Madrid might wonder where the crisis is. Traffic is heavy and the tapas bars are packed.
But listen in on some of the conversations, and it's clear that Spaniards are scared.
As talks opened in Baghdad today, "diplomats from six world powers offered Iran new proposals Wednesday to ease international concerns about its nuclear program, but appeared to reject Tehran's appeals to ease economic sanctions to help move along talks," The Associated Press reports.
European stock markets have rallied in anticipation of an informal summit of European Union leaders Wednesday in Brussels. A major policy pivot is expected to address the eurozone's debts and deficits crisis.
Up to now, European leaders have emphasized austerity, and that has cost some of them their jobs. The new approach is likely to focus on the same kind of growth President Obama has pursued in the United States — where Democrats and Republicans are drawing opposite conclusions from the euro crisis.