Britain operates one of the largest welfare states in Europe. And that, it seems, is just fine with many of the British, The New York Times reported. Despite the worst recession since World War II, many people here show little appetite for shrinking a system that eats up half the nation’s economic output, more than in Portugal, Greece or Spain — all of which are trying to push through painful cuts. Indeed, as Britain’s Labour government confronts a yawning budget deficit, public sector workers are mobilizing to head off any reductions in wages or jobs.

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%.

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 set off the crisis rattling the euro zone. Spain could determine whether the 16-nation currency stands or falls, The Wall Street Journal reported. The euro zone's No. 4 economy, Spain has an unemployment rate of 19%, a deflating housing bubble, big debts and a gaping budget deficit. Its gross domestic product contracted 3.6% in 2009 and is expected to shrink again this year, leaving Spain in its deepest and longest recession in a half-century. The problem is that, thanks largely to its membership in the euro, Spain lacks tried-and-true means to heal its economy.

Greece, which joined the euro two years after its inception, has concealed the dodgy state of its finances. Now it is under attack from speculators. A default could spread panic to other deficit-plagued economies, including those of Spain and Portugal, with scary consequences for Europe’s already shaky banking system. But if Greece’s partners bail it out, defying the euro’s founding treaty, the currency will suffer. Either way, the euro is in trouble, The Economist reported. This dilemma is felt especially keenly in Germany.

The Spanish government got a much-needed boost Wednesday when the nation's new €5 billion ($6.9 billion) bond issue was well received by investors, in spite of recent jitters over some euro-zone countries' public finances, The Wall Street Journal reported. The offering drew about €14 billion of interest from investors, a sign that—despite some recent doubts—Spain still has the confidence of bond markets. The deal followed bond sales by Portugal and Ireland, other nations that have been the source of some investor concern in the wake of Greece's woes.

The frenzy has left euro zone governments surprised and bruised, and wondering whether there is anything they can do to stop this kind of assault from the financial markets. The answer is probably no, but that doesn't mean they won't try, The Wall Street Journal reported. From the point of view of derivatives traders in Europe, the timing hasn't been good. Just as the decision by Goldman Sachs and one or two other investment banks to pay out billions of dollars in compensation reignited a U.S.

As Europe edges toward emergency guarantees to stem market panic over one of the most profligate members of the euro bloc, the country that the region turns to for leadership, Germany, is suffering from growing doubts about the European experiment it long championed, The New York Times reported. Reluctant German leaders now find themselves forced to help Greece remain solvent, or risk watching markets attack one weak member after the next, from Portugal to Spain to Italy, threatening the stability of the euro, the European currency Germany fought so hard to create.

A messy Greek default would harm almost everybody, The Economist reported in an editorial. As markets and governments know only too well, behind Greece stand others: Portugal, Ireland, Spain and even Italy, the world’s third-biggest sovereign debtor. Hence the selfish case for other euro-area countries to help. There is plenty of money around. The EU can advance structural-fund aid that is due to be paid in future years. The European Investment Bank can lend more.

The Australian sharemarket fell to a five-month low today, taking the market's loss this week to $30.83 billion, The Australian reported. The surprise 268 point plunge on the Dow Jones Index on Wall Street overnight created an instant negative lead for equities markets across the Asia Pacific region. In Australia, the benchmark S&P/ASX200 dropped 107.3 points to 4514.3 while the All Ordinaries was down 111.4 points to 4532.7.