PORTUGAL

The euro zone economy grew just 0.2 percent in the third quarter as Germany and France posted solid growth but countries at the sharp end of the debt crisis fared much worse, and analysts expect bleaker times ahead across the 17-country currency bloc.

Prime Minister-designate Mario Monti raced to assemble a new government for Italy on Tuesday while a sharp rise in French borrowing costs raised fears that the two-year debt crisis may spread to the euro zone's second biggest economy.

Monti said he would “act with urgency” to resolve Italy’s deep financial crisis.

Gold prices fell for a second day Tuesday on growing evidence that Europe's two-year sovereign debt crisis is spreading into the continent's core economies.

The 17-nation euro zone economy grew a modest 0.2 percent in the third quarter from the second, the EU said on Tuesday, lifted by France and Germany, but economists say the bloc is almost certainly heading for a recession.

Prime Minister-designate Mario Monti raced to assemble a new government for Italy Tuesday while a sharp rise in French borrowing costs raised fears that the two-year debt crisis may spread to the euro zone's second-biggest economy.

Prime Minister-designate Mario Monti meets the leaders of Italy's biggest two parties on Tuesday to discuss the many sacrifices needed to reverse a collapse in market confidence that is driving an ever deepening euro zone debt crisis.

Prime Minister-designate Mario Monti meets the leaders of Italy's biggest two parties on Tuesday to discuss the many sacrifices needed to reverse a collapse in market confidence that is driving an ever deepening euro zone debt crisis.

LEIPZIG, Germany, Nov 14 - Warning that Europe faced its toughest hour since World War Two, German Chancellor Angela Merkel urged her party to set aside its misgivings about the euro and accept closer political integration as a solution to the bloc's deepening debt crisis.

LEIPZIG, Germany, Nov 14 - Warning that Europe faced its toughest hour since World War Two, German Chancellor Angela Merkel urged her party to set aside its misgivings about the euro and accept closer political integration as a solution to the bloc's deepening debt crisis.

Chancellor Angela Merkel said on Monday that Europe must move step-by-step toward political union, calling the euro zone debt crisis the continent's toughest hour since World War Two.

German Chancellor Angela Merkel said on Monday that Europe could be living through its toughest hour since World War Two as new leaders in Italy and Greece rushed to form governments and limit the damage from the euro zone debt crisis.

Italy paid a euro-era high price to sell five-year bonds on Monday, with investors wary of buying its debt until the country's new leadership undertakes profound economic reform.

Ronaldo could be targeted by PSG

Italy anxiously awaits the reaction of financial markets Monday to the appointment of former European Commissioner Mario Monti to head a technocratic government, hoping it will end a disastrous week for the Eurozone's third largest economy.

Much of the developed world is charging ahead with austerity plans that will drag on the world economy next year, with bond market vigilantes beating the drum for ever-more belt tightening.

Below are quotes from leaders of Pacific Rim countries and business executives attending the Asia-Pacific Economic Cooperation summit on Saturday.

Italy's head of state begins talks Sunday to appoint an emergency government to succeed outgoing Prime Minister Silvio Berlusconi and handle a crisis that has brought the Eurozone's third-largest economy to the brink of financial disaster.

It is likely to take the combined forces of the European Central Bank, the IMF and the euro zone bailout fund to break Italy's financial fall, and it's far from clear that Europe's leaders are ready to take on that rescue mission.

Former European Commissioner Mario Monti emerged on Thursday as favorite to replace Silvio Berlusconi and form a new government to stave off a run on Italian bonds that is endangering the entire euro zone.

Asian stocks fell around 3 percent on Thursday after soaring Italian borrowing costs stoked fears that the debt crisis in the euro zone's third biggest economy will overwhelm its financial defenses, raising the risk of a break-up of the currency area.