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...With those banks themselves still somewhat in the dark - even after writing down tens of billions of dollars linked to those soured mortgage loans - it's gotten harder for institutions and individuals to borrow money. Even the Federal Reserve seems spooked: the U.S. central bank early Tuesday slashed a key interest rate by 0.75% to 3.5%, the biggest cut in more than 20 years...
...Friday and Saturday a panel of international experts enthusiastically counseled the Spanish Socialists on key electoral issues ranging from economic growth to social integration, from energy renewal to democratic reform. Yet the most important advice Zapatero received from the "Council of Sages" - as the media dubbed the Prime Minister's Advisory Committee of Progressive Intellectuals - may have been less about the substance of his platform than the manner in which he and his party deliver...
...appears that the Socialists were paying attention. Environment Minister Cristina Narbona, seated in the audience Saturday, was impressed with Stiglitz's discussion of education as a key stimulus for economic growth. "To hear him say that gives us incentive to improve our proposals even more." And in a speech closing Saturday's meeting, Labor Minister Jesús Caldera responded to Caldicott's impassioned critique of nuclear energy by promising to take Spain's remaining eight reactors out of service "when they reach the end of their useful lives...
...After a key centrist ally yanked support this week from the fragile center-left government, Prodi no longer has a working majority in the Italian Senate. By virtually any reckoning in Italy's complex political arithmetic, this should spell government crisis - and, it would seem, the final bell for the 68-year-old pol, who was resurrected after his last fall from power in Rome by becoming president of the European Commission in 1999. When asked by reporters "How's it going?" just before his address to the Italian Parliament on Tuesday, Prodi declared his faith in his own survival...
...Tadic can only win if he gets sincere support from the Prime Minister Vojislav Kostunica," Goran Svilanovic, a former Serbian Foreign Minister tells TIME. "The key to Serbia's future lies in [Kostunica's] hands." Kostunica, who shares power with Tadic's Democratic Party in the government, could help turn out support for the incumbent from moderate nationalists. However, Kostunica has an uneasy relationship with Tadic; and the Prime Minister's recent rhetoric has become increasingly anti-Western, referring to Western support for Kosovo independence as "ripping out the heart of Serbia." So far, he has refused to comment...