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The EU is not lending money to Ireland, Greece, and Portugal to help those nations' citizens. The EU is lending those nations money because if they don't those nations and their citizens and corporations will be unable to repay their debts to banks in the core. That will make public the fact that the core banks are actually insolvent. When the Germans and French realize that their banks are insolvent the result will be "severe banking crises and a return to recession in the core of the eurozone." The core, not simply the periphery, will be in crisis. The ECB and the EU's leadership would be happy to throw the periphery under the bus, but the EU core's largest banks are chained to the periphery by their imprudent loans.

The EU faced the biggest test in its history last night as it launched a last-ditch effort to save the euro, amid acute fears that markets could unleash a fresh attack on the currency on Monday.

European Union leaders are working around the clock to create a new measure to defend the euro before financial markets reopen on Monday. EU finance ministers will meet on Sunday to discuss the plan.

French president Nicolas Sarkozy warned of damage to Franco-German relationship if Angela Merkel opposed EU plan

A network of national funds should be introduced so the cost of bank failures are not met by the taxpayer, the EU internal market commissioner has said.

The European Union is in bad shape. Not only is the common currency in a shambles and the economies of many member states moribund, but young Europeans no longer see how the EU helps them. Millions of them are taking to the streets to demand a future.

United States and the European Union "are using the same recipe that the IMF applied on Argentina" to address the current global financial crisis and this only leads to "stagnation" said Nobel laureate Joseph Stiglitz attending a gathering of Nobel Prize recipients and young economists in Lindau, Germany.

The euro is becoming an ever greater threat to Europe's common future. The currency union chains together economies that are simply incompatible. Politicians approve one bailout package after the other and, in doing so, have set down a dangerous path that could burden Europeans for generations to come and set the EU back by decades.

The IMF has warned euro nations that without more centralised control they risk sinking back into recession

Spain's PM has outlined a plan to tackle the country's budget crisis, amid concerns that problems afflicting Greece may spread across the eurozone.

As Spain's credit rating is downgraded a day after Standard & Poor's cut its ratings on Greek and Portuguese debt, how far could the eurozone's debt contagion spread?

The audacious bid to protect the euro with a massive rescue fund seems to be faltering. The euro is still losing value as investors worry about the consequences of tough austerity measures. German papers on Friday dissect the common currency's ongoing problems.