Greece

The Olympic torch was passed to London — witnessed, appropriately, by hundreds of Greeks huddled under umbrellas. Seeking some relief from the country's economic and political woes, Greeks sat on the stone steps of the ancient stadium in Athens on Thursday to watch the ceremonial handover of the Olympic flame to the organizers of the 2012 London Olympics. They cheered the Greek national anthem. They cheered 88 schoolchildren belting out "God save the Queen. They went nuts when U.K. soccer star David Beckham was announced.

BRUSSELS — Europe's leaders gather in Brussels under mounting pressure to soften their tough-love approach to the weaker economies among them. With Greece locked in political chaos, much bigger Spain warns it can't keep afloat without help, as stock markets around the world tank over fears the leaders won't have the political will to act. The summit will have to fight multiple fires: political uncertainty in Greece that could see it renege on commitments made to secure rescue loans; rising borrowing costs in Spain and Italy that could force them to seek bailouts; and sluggish growth...

PARIS — The leaders of the Group of 8, emphasizing growth as well as fiscal discipline at their meeting on Saturday, made a strong plea for Greece to stay in the eurozone and the European Union. And no wonder. Despite efforts at official reassurance, no one really knows the consequences of a Greek exit from the eurozone, or how rapidly big countries like Spain and Italy, and their banks, would feel the effects. The political and financial costs would represent a fundamental challenge to the EU and its credibility, and the point of no return may be approaching faster than anyone...

European Union leaders concluded their latest summit early Thursday with few concrete steps to fix the continent's festering financial crisis even as the potential for a messy Greek exit from the euro appears to be rising. Some leaders stressed the importance of planning for just such an event but offered no measures that might help Greece avoid it. Also left unresolved was what Europe should do to spark economic growth and restore the confidence of investors, who have driven some countries' borrowing costs to unsustainable levels.

A look at key dates in Greece's financial crisis. Oct. 18, 2009 — George Papandreou's new Socialist government reveals that the budget deficit is set to rise to at least 12 percent of the country's gross domestic product, double the previous government's estimate. The shortfall eventually reached 15.6 percent of GDP. Dec. 8, 2009 — Fitch Ratings downgrades Greece's credit rating from A- to BBB+. Bond grades from the three major agencies eventually reached junk status. March 3, 2010 — Greece announces a major austerity plan — with many more to follow — increasing the VAT and...

Allison Tripp, a junior at Boston College, just returned from a semester at the American College of Thessaloniki in Greece, where she studied art and architecture, and history. Read her blog at itsallgreektome09.wordpress.com/. SOUL OF GREEK FOOD: There is the most amazing cucumber yogurt dip called tsatsiki, and the feta here is somehow infinitely better than the feta in the United States. Everything is fresher, so even a simple “Greek’’ salad tastes amazing. I also am in love with gyros, the Greek version of a kebab or shwarma.

ATHENS -- A rocket was fired at the US embassy early today, striking the front of the building but causing no injuries. A senior police official said the blast was an act of terrorism. Police cordoned off streets around the heavily guarded building after the explosion shortly before 6 a.m. The shell struck the third floor and smashed glass in nearby buildings. Investigators found the device used to fire the rocket shell at a construction site near the embassy. "This is an act of terrorism," Attica Police Chief Asimakis Golfis said.

WROCLAW, Poland - The European Union's 27 countries overcame a year of infighting to agree yesterday to tougher budget rules that make it easier to punish overspending governments, but failed to produce any new measures that might contain the debt market turmoil threatening it. Jacek Rostowski, the Polish finance minister, said his EU counterparts approved the measures at their meeting in Wroclaw, Poland, where the officials were under international pressure...

ATHENS - Greece's place in Europe once again hung in the balance yesterday, as the fragile interim coalition of Prime Minister Lucas Papademos was plunged into turmoil and European leaders expressed doubts about the country's commitment to remaking its economy and achieving solvency. Following a wave of defections from his Cabinet, and as street protests turned violent in Athens amid a general strike, Papademos told lawmakers that they must approve the measures - including a 22 percent cut in the benchmark minimum wage and public sector...

ATHENS - Greek civil servants walked off the job yesterday, paralyzing the government and public transport to protest ever-deeper austerity measures. As Greece struggles to avoid a catastrophic default, demonstrators expressed outrage over their misfortune and bewilderment at a crisis that shows no signs of easing. "Nobody knows what's going on. Every day they say something different. It's all so unclear," said Irini Sypsomou-Arapogianni, a 57-year-old Finance Ministry employee.

Stocks reversed their gains in the final hour as concern that Greece is preparing to exit the eurozone — and the financial contagion that could result — overshadowed news that US home prices rose 10% in the past year, the most in six years. Homebuilder stocks rose more than 2%. European leaders gather Wednesday to discuss how to revive growth.

Jack Ohman of the Portland Oregonian offers a perspective on the debt crisis occurring in Greece.

A report that Greece is considering preparations to leave the euro common currency sent Asian stock markets lower Wednesday. Investors have long acknowledged the possibility of a Greek withdrawal from the 17-nation euro currency union as the country struggles to meet harsh austerity targets that are a condition of getting international bailout money. But a financial news service's report, which quoted former Greek Prime Minister Lucas Papademos suggesting such a euro exit could be approaching, flustered markets.

Greece's caretaker prime minister will convene a meeting of Cabinet members ahead of this week's summit of European Union leaders that's expected to look into spurring economic growth across the continent. The meeting later Tuesday under Prime Minister Panagiotis Pikrammenos will include his predecessor Lucas Papademos and Finance Minister Giorgios Zanias. Pikrammenos cannot make any binding decisions and is only tasked with leading the bailed-out country to new elections next month.

PARIS — The leaders of the Group of 8, emphasizing growth as well as fiscal discipline at their meeting on Saturday, made a strong plea for Greece to stay in the eurozone and the European Union. And no wonder. Despite efforts at official reassurance, no one really knows the consequences of a Greek exit from the eurozone, or how rapidly big countries like Spain and Italy, and their banks, would feel the effects. The political and financial costs would represent a fundamental challenge to the EU and its credibility, and the point of no return may be approaching faster than anyone...

Bargain-hunting helped Asian stock markets edge upward Monday, but gains were limited as investors remained unconvinced that the world's major economies nailed a solution to the European debt crisis following a summit in Washington. Markets posted only muted gains as traders were kept on edge by worries about the economic future of Greece and whether it would exit the 17-country euro currency union. A weekend summit in Washington among leaders of the world's most powerful nations provided little in the way of encouragement for investors already nervous about slowing growth in China...

ATHENS — Greece was wracked by political turmoil yesterday as the embattled prime minister faced down a party revolt over new austerity measures — a bitter dispute that forced the EU to hint at new loans so Greece can fend off a summer default. Prime Minister George Papandreou has struggled to garner support for a new package of $39.5 billion in spending cuts and tax hikes demanded by the European Union and the International Monetary Fund, which last year granted his debt-ridden nation $155 billion in bailout loans.

LONDON - Greece appeared to have clinched a landmark debt restructuring deal with its private sector lenders late Thursday. The deal would clear the way for the release of bailout funds from Europe and the International Monetary Fund that would save the country from default. Given all the twists and turns in the recent negotiations, and the ups and downs in Greece's long debt struggle, something could still go wrong at the last minute, participants said. But most bond investors and government officials were expecting a positive outcome on the deal, which...

Bundesbank President Jens Weidmann has warned Europe's central banks not to increase their exposure to Greece because of the high level of political uncertainty there ahead of next month's elections. In an interview with German Sunday newspaper Frankfurter Allgemeine Sonntagszeitung he said that "Greek people and their elected lawmakers" will have to decide if they want to abandon the euro currency. Pending those political decisions, central banks "must ensure that the risk on our balance sheets remains manageable," Weidmann was quoted as saying.