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Germany: Government agrees to compensate neo-Nazi gang's victims

The victims' families will receive compensation as a sign of the German government's solidarity, the justice minister said.

Merkel and Cameron meet: wonder what they will say

Britain wants Germany to loosen the apron strings around the European Central Bank,
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German Chancellor Angela Merkel and French President Nicolas Sarkozy are shown kissing in this advertisement. What are the chances of a photo of Merkel kissing David Cameron ever making it into a Benetton ad? (PATRICK KOVARIK/AFP/Getty Images)
Cameron and Merkel meet to discuss euro zone crisis

Germany: Neo-Nazi terrorist gang linked to 10 murders

The gang members called themselves the "National Socialist Underground" after Adolf Hitler's National Socialist (Nazi) party.

Britain, jobs, ouch!!!!!!!!

Those who think that cutting government spending is the only way to deal with national debts and deficits should take a close look at the employment picture in austerity Britain.
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Britain's architect of austerity, Chancellor of the Exchequer, George Osborne, says he is pleased that the economy grew by 0.5 percent in the third quarter ... he has had less to say on the fact that the unemployment rate is at a 17 year high and is expected by private employers to grow over the next year. (SIMON DAWSON/AFP/Getty Images)
Britain's austerity program is putting people of all ages out of work.

Europe: can anyone save it from itself?

As Italian bond yields reach unsustainable highs and world markets begin to fall, Europe faces the worst crisis of leadership since August 1914. And we all know how that turned out.
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A statue to one of the fallen of World War I. Are today's European leaders as inept in guiding the continent through troubled times as those in charge in August 1914? (Peter Macdiarmid/AFP/Getty Images)

A snapshot of a moment in history:

November 10, 2011.  Global stock markets are falling. The yield on Italian bonds continues to rise.

A German newspaper reports that Chancellor Angela Merkel is going to float the idea of re-writing the rules governing the euro zone at her Christian Democratic Union party meeting next week. At present there is no mechanism for countries inside the euro to leave.

Merkel reportedly wants a new treaty provision that defines the ways in which a nation can leave - or be asked to leave - if it doesn't meet the basic conditions of euro zone membership. You want to know the basic conditions?: an annual budget deficit no higher than 3 percent of GDP and a national debt lower than 60 percent of GDP.  Italy's debt is currently 120% of GDP. Got the picture?


G-20 summit: who's in charge?

Who's in charge of world economy? Anyone?
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German Chancellor Angela Merkel and French President Nicolas Sarkozy talk as they arrive for a press conference after a meeting with Greek Prime Minister George Papandreou and EU and IMF representatives over Eurozone bailout plan ahead of the G20 summit on November 2, 2011 in Cannes, France. (David Ramos/AFP/Getty Images)
Elected leaders of 20 largest economies meet in Cannes and are confronted by a simple reality: there is very little they can do to sort Europe's mess while Greece is in political meltdown.

Euro Crisis: summit ends with outline agreement

A plan to deal with Greece's sovereign debt problems and to build a firewall against Italy's looming crisis is agreed ... the devil will be in filling in the details
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Greek Prime Minister George Papandreou addresses a press conference at the end of a summit of the EU heads of State on June 24, 2011 in Brussels. (Jean-Christophe Verhaegen/AFP/Getty Images)

LONDON — It took long enough, but the basic outline of a deal on the euro was agreed by leaders of the 17 euro zone nations this morning at 4:00 a.m. Brussels time.

It was as advertised in my primer yesterday:

Private banks will take a 50 percent haircut on the Greek bonds they hold, which amounts to about a third of the total Greek debt outstanding. Banks will recapitalize themselves via fund-raising issues and the IMF. The European Financial Stability Facility — which started with 440 billion euros and now has about 250 billion available after Greek, Portugues and Irish bailouts — will insure future sovereign bond issues to the tune of 20 percent. By a miracle of computation, that means that the fund has leveraged itself by a factor of 5 to 1.25 trillion Euros. (Honestly, I need to do that same trick with my salary ... )

"This is a marathon, not a sprint, "said Jose Manuel Barroso, president of the European Commission, the administrative arm of the EU. The race has only just begun. Heartbreak Hill — agreeing a euro-wide fiscal policy and other steps towards federalism — is nowhere on the horizon.


Infighting dogs Europe's leader as they search for a way out of euro crisis

Brussels summit shows the pressure is telling on Merkel, Sarkozy and Cameron
Silvio Berlusconi shows the pressure at yesterday's Euro Summit in Brussels. There is no relief in sight for Italy's Prime Minister as his colleagues pile pressure on him to take the necessary steps to stave off a possible sovereign debt crisis in Italy. (Georges Gobet/AFP/Getty Images)
Sarkkozy and Merkel gang up on Berlusconi at EU summit

"Merkozy" meet, still no agreement on euro bailout

It's the fine print that is hanging things up ... but fine print is about billions of euros in losses for banks
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Another day, another riot in Athens as day 1 of a general strike around Greece got underway. More clashes are anticipated today. (LOUISA GOULIAMAKI/AFP/Getty Images)
Nicolas Sarkozy and Angela Merkel meet, but fail to finalize plans for euro bail out.

As British GDP is revised down, Cameron looks to rosy future

Growth on the horizon, British Prime Minister tells his party conference, as official statistics show British economy has not grown in 9 months

Afternoon Edition:

Part 1: British Prime Minister David Cameron is doing his Sunny Jim thing, as I write. The PM is naturally youthful looking but when set against his party he looks like a teen-ager and speaks with the fervent optimism of a 16 year old spending a weekend with the old folks. He is giving the closing speech of his party's annual conference now and telling them the future is rosy and Britain will grow and grow.

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