On Wednesday, the European Union's highest court will rule on a lawsuit filed two years ago by two U.S. airlines and a industry trade association attempting to halt the E.U.'s plan to charge for carbon emissions pollution. It would include the industry in the worldwide cap and trade market. If the court decides to uphold the 2008 European law, on January 1, airlines will be forced to reduce their carbon emissions to an historic low, or buy emission credits from companies that pollute less than the base rate.  

Standard and Poor's announced on Monday that it is considering a credit rating downgrade for both Germany and France, the euro zone's two biggest economies. The move takes place as euro zone countries meet in Brussels in an attempt to stop the ongoing crisis. The two countries currently have a top-notch AAA rating from the agency. Standard and Poor's said that 13 additional euro zone countries are also vulnerable to downgrade as a result of the continent’s economic crisis. 

Europe's deepening financial crisis has the White House apprehensive over the potential economic and political ramifications in the United States. "The crisis in Europe remains the central challenge to global growth," Treasury Secretary Timothy Geithner said Thursday. Under pressure from the Frankfurt Group — eight European leaders including German Chancellor Angela Merkel, French President Nicholas Sarkozy, and IMF head Christine Legarde — Greece and Italy are looking to unelected technocrats to guide their nations away from fiscal catastrophe.

A different look at the euro zone crisis with a look at the very idea of the European Union. It grew out of the wreckage of World War II, with politicians determined to end the rivalries which had driven Europe to war twice in 25 years. Former British Prime Minister Winston Churchill, presiding at the Hague Congress in 1948, launched the call for a political, economic and monetary union of Europe. This landmark conference would eventually see six European countries coming together to sign the Treaty of Rome in 1957 which created the European Economic Community — now of course, the much larger 27-member European Union.

Interest rates on Italy's debt have soared to dangerously high levels, as bond yields hit 7.4 percent — the level that has driven other euro zone countries to seek bailouts. In comparison, Germany's interest rates stand at just 0.24 percent. Wednesday's news comes just a day after Prime Minister Silvio Berlusconi pledged to step down on the condition that Parliament pass an austerity budget required by the European Union. Uncertainty over whether Europe's third largest economy will be able to meet its fiscal challenges will continue to test world markets.

2011 has been a year of sweeping changes in leadership worldwide. The Arab Spring meant the end of decades-long dictatorships across the middle east, and now threats of default have forced Greek Prime Minister George Papandreou and Italian Prime Minister Silvio Berlusconi to resign. As the European debt crisis continues to unfold, more changes--including a shift which countries step up to deal with these problems--are assuredly ahead.

For two decades, Silvio Berlusconi has dominated Italian politics as the longest serving national leader in Europe. But in the last 24 hours, it seems his reign may finally be coming to an end — an idea unthinkable to many Italians who thought he would be in power for life. Berlusconi pledged to resign on Tuesday on the condition Parliament passes an austerity package. From his outrageous comments to his sex scandals to repeated allegations of corruption in his government, the BBC's Rome correspondent, David Willey looks back at the remarkable and colorful career of Silvio Berlusconi.

Embattled Greek Prime Minister George Papandreou will resign once plans for a new coalition government are finalized. Papandreou and his political rival, conservative leader Antonis Samaras, reached a deal on Sunday to form a unity government to implement the unpopular austerity measures required by a bailout deal reached with European leaders. The new government is expected to be led by a non-politician who will be named on Monday.

The markets responded positively to the news last week of a euro zone deal to try and turn around their two-year financial crisis. Marcus Mabry, editor-at-large of the International Herald Tribune, which is the international edition of The New York Times, tells us how he expects the markets to continue to go this week and to be on the lookout at Italy, which could be the next euro zone country to be in financial trouble. Charlie Herman, business and economics editor for WNYC and The Takeaway, looks at the upcoming G20 Summit in France this week, and if they can come up with a framework to deal with Europe's economic troubles.

European leaders reached a deal crucial to resolving the euro zone debt crisis after all-night meetings on Thursday. Under the accord, banks have agreed to take a 50 percent loss on Greek debt. European markets were up after news of the deal broke. Leaders also agreed to grow euro zone's bailout fund to $1.4 trillion dollars. European banks will also need to raise more capital to protect against future government defaults.

The Greek Finance Ministry said talks resumed last night between the country and international leaders, on a way to loan cash to Greece by mid-October and save it from defaulting. U.S. and European markets have fallen as Greece's fate hangs in the balance, and many are wondering how a Greek default would impact the rest of the world. Yesterday, the IMF cut its projections for economic growth in America and Europe, largely because of uncertainty over the European debt crisis.

As the financial crisis in the euro zone has continued to spiral in recent months, Europe may be moving closer centralizing coordination of debt and spending policies. Some global financial officials are endorsing a central European financial authority, with powers to tax, issue bonds, and approve budgets, as a way to combat inefficiencies in dealing with economic strife. Such a change could make Europe's 17-nation economic union into a sort of United States of Europe.

Global markets are in turmoil as European stocks took a hit for the second straight day. The main indexes for Germany, France took a significant hit Friday as investors worry about debt. We speak with Brian Tora from JM Finn stockbrokers in London. He tells us about the concerns among investors and if last week's proposal on short selling in Europe has had any impact on the markets there.

European shares have fallen today after a meeting between French President Nicholas Sarkozy and German Chancellor Angela Merkel failed to calm investors' fears that the debt crisis could spread. The two leaders agreed that more economic integration is needed between the countries in the Eurozone during a meeting yesterday.

With the Eurozone crisis still roiling the markets German Chancellor Angela Merkel is meeting with French President Nicolas Sarkozy in Paris today. The two leaders will be discussing ways of pulling Europe out of danger — but Germany has already ruled out any discussion on the creation of common Eurobonds — a solution that has been put forward by some. 

After today's show, host Celeste Headlee reflects on the similarities between Anders Breivik's personal manifesto and the anti-Islam and anti-immigration platforms of many European right-wing parties. She remarks that it is troubling to see many of Europe's right-wing parties attempting to distance themselves from their previous platforms and rhetoric in the wake of the tragedy in Oslo, and urges us not to forget that words matter. Celeste emphasizes that language is important in all contexts, and suggests that everyone should think carefully before making statements that they aren't willing to stand behind in times of tragedy and conflict.

European leaders came to an agreement yesterday to help keep Greece and the rest of the euro zone from falling further into financial crisis. Greece will receive a second bailout, in the amount of 109 billion euros, or $157 billion. The move by the euro zone comes as Ireland and Portugal are still teetering on economic turmoil. The European Financial Stability Facility, the euro zone's rescue fund, will be given broad new powers to assist countries that have not yet been bailed out. It is unclear how French and German citizens, who have opposed any bailout, will react to the deal.

When President Obama delivers his State of the Union address on Tuesday night, he won't just be speaking to the American people; he'll be speaking to the world. From Iran to Afghanistan to Russia, world leaders and ordinary citizens will listen carefully to Obama's words. For a look at the geopolitical landscape facing Obama on the eve of his address, we talk to George Friedman, author of "The Next Decade: Where We've Been and Where We're Going."

With the European Union in the midst of a severe debt crisis, foreign ministers of the eurozone are meeting this week to discuss remedies for their financial troubles. Latin America went through a difficult debt crisis of their own back in the 1980s, which is often referred to as the "Lost Decade." What lessons can Europe learn from Latin America to help prevent their own lost decade?

A rocket carrying three satellites destined for Russia’s global positioning system, GLONASS, crashed into the Pacific Ocean yesterday. Russia has spent $2 billion developing its own equivalent to the U.S. GPS system and other countries are following suit, including China's COMPASS and the E.U.'s GALILEO. Why is it so important for countries like Russia to develop their own Global Positioning Systems? Why does Russian Prime Minister Vladimir Putin insist on his country's "satellite navigation sovereignty?"