EUROPEAN UNION

German Chancellor Angela Merkel faces a battle for her political survival on Thursday when some of her coalition, worried about throwing good money after bad by bailing out Greece, could humiliate her in a parliament vote on euro-zone rescue schemes.

International auditors return to Athens on Thursday to deliver a verdict on whether Greece's tougher austerity measures qualify for aid to avert a default that would plunge the country into bankruptcy.

One may be tempted to think that a bailout from the European Central Bank (ECB) will send the euro higher against the U.S. dollar because it will calm Eurozone debt crisis fears.

In Syria, anti-government protesters continue undeterred as President Bashar al-Assad intensifies his forceful crackdown against demonstrations. Over the last five days, at least 76 people have been killed in the northern cities of Homs and Hama and in the southern Daraa region, according to activist reports.

Stocks were little changed on Wednesday after a three-day rally as investors waited to see if an audit of Greece's finances would lead to granting more aid to the country to avoid default.

Caution ahead of an audit of Greece's finances drove major world stock markets lower on Wednesday, while prices of commodities like oil and copper fell.

Stock indices have shown three consecutive days of gains. Indeed, the Dow had jumped 4.3 percent over the past three sessions, following deep losses incurred last week.

European Commission President Jose Manuel Barroso urged the European Central Bank to do everything in its power to maintain financial stability in the euro zone, saying the EU faced the biggest challenge in its 50-year history.

A decision of providing the Greek government with more badly needed bailout cash hinges on a review of Athens’ debt-reduction progress by officials from the European Commission (EC), European Central Bank (ECB) and International Monetary Fund (IMF).

If implemented, the tax would come into effect in 2014 and is expected to generate about $78 billion annually.

Gold rose on Wednesday, gaining from investor unease over the lack of a solution to the European debt crisis that dented other more industrial raw materials, such as crude oil and copper, ahead of further possibly weak U.S. data.

Investor hopes for a bigger bailout fund for euro zone debtors gave way to worries about the details Wednesday, sending European shares lower and ending a three-session rally.

European Commission President Jose Manuel Barroso urged the European Central Bank to do everything in its power to maintain financial stability in the euro zone, saying the EU faced the biggest challenge in its 50-year history.

Following are highlights from European Commission President Jose Manuel Barroso's State of the Union speech in the European Parliament in Strasbourg on Wednesday.

The European Union faces the biggest challenge in its history, as a crisis of confidence compounds economic and social problems, European Commission President Jose Manuel Barroso said on Wednesday.

Greece faced a new test in its attempt to avoid bankruptcy on Wednesday as international auditors headed for Athens, while Germany suggested a new bailout may be renegotiated as argument rages over whether private creditors should take bigger losses.

Tensions between the Israelis and the Palestinians grew Tuesday as Israel announced plans for over 1,000 new housing units outside of boundaries established during the 1967 war.

Americans worried about their incomes as they struggled to find work in September, holding consumer confidence near 2-1/2 year lows and pointing to weak spending in the months ahead.

European stock index futures rose sharply on Tuesday, after Asian shares rebounded from multi-month lows and as the euro clung to gains on hopes that euro zone officials will act to corral Greece's debt woes and prevent a financial meltdown.

Asian shares rose on Tuesday on hopes that euro zone officials will act to corral Greece's debt woes and prevent another full-blown banking crisis, but the euro failed to hold on to all its gains.

Asian shares rose on Tuesday on hopes that euro zone officials will act to corral Greece's debt woes and prevent another full-blown banking crisis, but the euro failed to hold on to all its gains.