Topic: France

Christine Lagarde, managing director of the International Monetary Fund, vowed that the organization, which is part-funding Greece’s bailout, will “never leave the table” with its new government.

If a deal is going to be struck that avoids a Greek exit from the euro zone and restores confidence in the currency bloc, it is going to have to be big and convincing to markets. As one UK politician put it last week, the German Chancellor needs to fire a “Big Bazooka” if she is to save the euro zone from its current crisis.

The continuing political and economic crisis in Greece and its impact on the rest of the euro zone are the biggest threat to the global economy right now, the secretary general of the Organization for Economic Cooperation and Development said on Tuesday.

European stocks are likely to remain under pressure, and the euro is seen breaking technical support levels, as Greece's inconclusive election results look increasingly likely to push it out of the euro zone, according to market experts and analysts.

European shares were set to open higher on Tuesday as investors came to the conclusion that the markets were most likely over-sold and news emerged overnight of around 100 billion euros ($127 billion) of liquidity provided by the European Central Bank to the Greek central bank to prop up Greece’s financial system.

Government spending cuts in developed countries are hurting job creation and exacerbating global youth unemployment, which remains close to the peak hit during the 2009 crisis, the International Labour Organization said on Tuesday.

French prosecutors said on Monday they had opened an inquiry into allegations of group rape by Dominique Strauss-Kahn and three friends, as part of an investigation into his ties to a suspected prostitution ring in the northern city of Lille.

French President Francois Hollande and like-minded euro zone leaders are expected to promote the idea of mutualized European debt at an informal summit in Brussels this week, increasing pressure on German Chancellor Angela Merkel to drop her opposition to the proposal.

Gold, used an alternative to the U.S. dollar by investors in search of safety, could see a move higher once markets have greater clarity on a resolution to the Greek debt crisis, Marcus Grubb, managing director of investment at the World Gold Council, told CNBC on Monday.

European shares were called to open lower on Monday after world leaders backed keeping Greece in the euro zone on Saturday and vowed to take all steps necessary to combat financial turmoil while revitalizing a global economy increasingly threatened by Europe's debt crisis.

Despite efforts at official reassurance, no one really knows the consequences of a Greek exit from the euro zone, or how rapidly big countries like Spain and Italy, and their banks, will feel the effects, The New York Times reports.

World leaders backed keeping Greece in the euro zone on Saturday and vowed to take all steps necessary to combat financial turmoil while revitalizing a global economy increasingly threatened by Europe's debt crisis.

Leaders of the Group of Eight major economies are making progress on addressing the two biggest threats to their economies - the euro zone crisis and very high oil prices, British Prime Minister David Cameron said on Saturday.

International drugmakers are working with European authorities on emergency plans to keep medicines flowing into Greece if the country crashes out of the euro.

European officials are working on contingency plans in case Greece bombs out of the euro zone, the EU's trade commissioner said on Friday, while Berlin said it was prepared for all eventualities.