Bulgaria’s Socialist Party, which placed second in May 12 early elections, has an opportunity to return to power after four years as the winning Gerb party struggles to find allies willing to join the next government.
Bulgaria’s Gerb party of former Prime Minister Boyko Borissov and the rival Socialist Party are neck- and-neck before early elections, raising concern about the next administration’s ability to extend an austerity program.
Germany’s regulator balked last year when the European Banking Authority conducted stress tests on financial firms, objecting to the agency’s definition of capital and allowing one state-owned lender to withhold some results.
On the same day Cyprus’s parliament rejected a European Union bailout involving a tax on deposits, political leaders in the region reached a deal bringing the euro zone one step closer to a banking union.
Jacob J. Lew pivots to Europe, a region fraught with risks to the world economy, after making China his first overseas destination as Treasury secretary last month in a nod to the strongest engine of global growth.
Italian President Giorgio Napolitano was elected to a second term after accepting a last- minute appeal from party leaders to run again, a step that may resolve the nation’s political crisis two months after inconclusive elections.
President Francois Hollande’s effort to ask the French to tighten their belts was dealt a blow this week after the minister he’d charged with fighting tax evasion admitted to a secret overseas bank account.