European financial chiefs are trying to soothe global CEOs and political leaders, insisting they have a handle on the eurozone's troubles. Germany's Finance Minister Wolfgang Schaeuble says he's "quite optimistic" about a Greek debt restructuring deal, despite recent strains in the complex talks. He says he doesn't expect Greece to default. He stressed that recent developments in markets have been "positive" for Italy and Spain. Read More

French President Nicolas Sarkozy has bluntly declared that a harsh downgrade by Standard & Poor's of France's formerly top-tier debt rating "changes nothing" for the eurozone's No. 2 economy. Sarkozy suggested that a solid market showing for a French debt auction Monday and a reaffirmation from rival ratings agency Moody's of France's triple-A sovereign debt offset the much-ballyhooed S&P downgrade. Read More

Portugal's recession will deepen this year under the weight of austerity measures meant to reduce public debt, the bailed-out country's central bank predicted Tuesday. Portugal is trying to free itself from a huge debt burden that forced it to ask for a €78 billion ($100 billion) financial rescue package last year to avoid bankruptcy. Read More

With glittering fireworks and star-studded celebrations from New Zealand to Times Square, the world eagerly welcomed a new year and hoped for a better future Saturday, saying goodbye to a year of hurricanes, tsunamis and economic turmoil that many would rather forget. Read More