European Debt Crisis

Overseas markets are sliding this morning on new worries about Spain. After last week's bank bailouts, that seemed like an end to the country's crisis, Spain's borrowing costs are up again to 7.5 percent.

Tomorrow is Bastille Day in France, the French will be celebrating despite the rainy weather and eurozone turmoil. This week French carmaker, Peugot, announced major layoffs, signaling the tough economic climate facing the country.

In Europe today, the focus has shifted from Spain to Italy, in the ongoing EU debt crisis. Moody's credit rating agency has downgraded Italian debt to just two levels above junk status.

The euro crisis has weakened the currency -- and strengthened Europe's appeal to American tourists.

In Spain today, the government announced new austerity measures to meet the terms of the bank bailout early this month: $80 billion worth of tax increases and pay and benefit cuts.

As economic instability in the eurozone continues, some Germans are starting to weigh the benefits and burdens of staying with the euro. Would life be dandier with the Deutschmark?

It appears European leaders have come up with an agreement to ease the debt crisis -- somewhat. And the deal rests on Germany compromising on how bailout money is used.

A summit of European leaders has yielded agreement on two key points. First, the EU as a whole will lend directly to banks wherever they get into trouble. Second, there's going to be a new agency to supervise banks across the continent.

EU leaders meet in Brussels today and tomorrow to seek solutions to the continent’s debt crisis, but some observers expect them to achieve little.

The tiny Mediterranean island nation of Cyprus is formally asking for a bailout from Europe. The country says it needs more than $10 billion from its eurozone partners to avoid default.