Markets around the world have been waiting for decisions from euro zone leaders on greater fiscal integration and euro bonds since July.
Investors will have to deal with an avalanche of news flow from Europe on Wednesday ahead of a crucial meeting of euro zone finance ministers and US Treasury Secretary Tim Geithner on Friday.
Despite the laundry list of troubles—and constant predications of an American decline— many analysts say the U.S. is far from losing its ranking as the number one economy on the globe.
Angel Gurria, secretary-general of the Organisation for Economic Co-Operation and Development, issued a strong defense of the euro over the weekend.
There are plenty of officials who would argue there is no possibility of Greece being excluded from the euro zone in the event of a bankruptcy, writes BNY Mellon's Simon Derrick.
Debt-crippled Greece's borrowing costs reached a new record high Tuesday on fears about the country's austerity program, a new blow as Prime Minister George Papandreou chaired a cabinet meeting aimed at finding ways to speed up delayed structural reforms.
On Wednesday, investors will wait with bated breath for news from Germany again, where the Federal Constitutional Court has the power to make or break the fate of the euro zone.
Italy has been allowed to backtrack because the European Central Bank bought Italian bonds before an austerity package had been agreed, Nick Firoozye, head of European rates strategy at Nomura told CNBC Tuesday.
European shares fell sharply on Monday amid renewed fears over the euro zone debt crisis and a warning from Deutsche Bank’s CEO on the outlook for banks.
Dominique Strauss-Kahn returned home to France on Sunday, for the first time since attempted rape accusations by a New York hotel maid unleashed an international scandal that dashed the former International Monetary Fund chief's chances for the French presidency.
"If you look at the situation of the economic crisis it was always more political than financial. We need to simplify the decision-making process because at the moment it is far too complicated," Jose Maria Aznar, former Prime Minister of Spain, told CNBC.
International Monetary Fund staff have provoked a fierce dispute with eurozone authorities by circulating estimates showing serious damage to European banks’ balance sheets from their holdings of troubled eurozone sovereign debt. the FT reports.
Former IMF cheif Dominique Strauss-Kahn was greeted with applause during his visit to the headquarters of the International Monetary Fund in Washington D.C. on Monday.
"Inflation fears at the start of the year were always something I was skeptical about and which I always thought were overdone," Bob Parker, senior advisor at Credit Suisse, told CNBC. However, he added he was concerned that inflation could become an issue in 2013.
The IMF director is calling for mandatory recapitalization at some Euro banks. Debating whether it is necessary and what it means for the debt crisis in Europe, with Frank Holmes, U.S. Global Investors CEO, and Erik Davidson, Wells Fargo Private Bank.
EU leaders yesterday rounded on the new Head of the IMF calling her comments on Europe 'misguided'. Christine Lagarde's assessment is certainly stark. The former French Finance Minister argues economies are now in a 'new dangerous' phase' that requires Europe's banks be forced to recapitalize in order to cut the 'chain of contagion'.
European officials rounded on Christine Lagarde on Sunday, accusing the managing director of the International Monetary Fund of making a “confused” and “misguided” attack on the health of Europe’s banks, the FT reports.
In Jackson Hole Wyoming on Saturday Jean-Claude Trichet, the president of the European Central Bank was due to give a speech to a meeting of policy makers hosted by the Federal Reserve. As he prepared to speak the euro zone faced huge problems.
Following weeks of heavy losses for banking stocks across Europe, the Sunday Times in the UK reported Sunday that European officials are working on a "radical plan" to prevent a fresh pan-European credit crunch.
The IMF does not expect a coming global recession but risks have increased, an official from the organization said on CNBC Friday.