As a consequence of decades of bargains struck between strong unions and weak governments, Greece has promised early retirement to about 700,000 employees, or 14 percent of its work force, giving it one the lowest average retirement ages in Europe at 61, The New York Times reported. Greece’s patchwork system of early retirement has contributed to the out-of-control state spending that has led to Europe’s sovereign debt crisis.

The high interest rates Greece must pay to borrow money are threatening the county's ambitions to cut its deficit, raising again the specter it may need external aid, The Wall Street Journal reported. Many in Europe breathed a sigh of relief last week when Greece successfully sold €5 billion ($6.85 billion) in government bonds in an auction that saw investors clamoring for the debt. The sale was seen as a key test: The country needs to borrow about €54 billion this year.

Europe moved ahead of the United States on Tuesday in advocating new measures to ban certain types of financial speculation after concerns surfaced that traders used complex financial instruments to push Greece deeper into a fiscal crisis and threaten the European economy, The Washington Post reported. The European Commission said it would back a proposal to restrict trading in a type of financial instrument, known as a credit default swap, that is linked to the prices of government and corporate debt.

Debt-laden Ireland is winning applause from financial markets for quickly taking the kind of harsh economic medicine that countries around the world are putting off, The Wall Street Journal reported. Late last year, Ireland looked a lot like Greece. The financial crisis coincided with a housing bust that left Ireland's banks in terrible shape, requiring a government rescue. Ireland's fiscal deficit rose to almost 12% of gross domestic product—a shade under Greece's 12.7%.

EU Commission chief José Manuel Barroso has said the union’s executive would be able to give special fiscal support to Greece without breaching the “no bailout” rule that prohibits overdraft facilities for distressed governments, The Irish Times reported. Mr Barroso also said the commission would examine closely the relevance of banning “purely speculative naked sales” of insurance against the risk of sovereign default, a market widely held to have intensified pressure on Greece amid anxiety about its budget deficit.

A day before he meets with President Obama, Greek Prime Minister George Papandreou on Monday called for "decisive and collective action" between Europe and the United States to curb the financial speculation believed by many to have exacerbated the debt crisis now hitting Greece and other financially troubled nations in Europe, The Washington Post reported. "Together with my European partners, we have taken a common initiative to strengthen financial regulation, particularly vis-a-vis speculation," Papandreou said, according to a copy of his speech.

German Chancellor Angela Merkel welcomed a proposal to set up a European lender of last resort, saying that the European Union’s ability to act as a bloc is on the line over the Greek financial crisis, Bloomberg reported. “Our instruments are not sufficient,” Merkel told members of the foreign press association in Berlin today. “The European Union must be able to respond to the challenges of the moment.” Merkel was speaking after officials in Berlin and Brussels said European leaders are in talks to establish what may become the European Monetary Fund and limits on credit-default swaps.

French President Nicolas Sarkozy said the euro region is ready to rescue Greece should the government struggle to fund its budget deficit, arguing that the country is “under attack” from so-called speculators, Bloomberg reported. “I want to be very clear: if it were necessary, the states of the euro zone would fulfill their commitments,” he said in Paris yesterday after a meeting with Greek Prime Minister George Papandreou. “There can be no doubt in this regard.” While Greece doesn’t need assistance right now, “we have measures, we are ready, we are determined,” he said.

France has proven surprisingly stable in the European economic storm. As Greece struggles to avoid default or bailout, Spain and Portugal watch anxiously, Sweden falls back into recession, Germany argues about historically high budget deficits and Britain grapples with deficits and debt of Hellenic proportions, France looks solid and even wise to many, The New York Times reported.

Greece survived a key test by raising €5 billion ($6.85 billion) in a bond sale, but investors warned that a looming wave of debt auctions by other European countries could make it difficult for Athens to raise the rest of the money it needs, The Wall Street Journal reported. The offer by Greece to pay 6.3% on its 10-year notes drew investors, filling order books by late morning Thursday. By lunchtime in London,the offering had €14.5 billion in bids, a sign Greece could have sold nearly three times what it advertised.