World markets plunged Tuesday after Greek Prime Minister George Papandreou announced a surprise plan to hold a national referendum on the proposed European bailout package, bringing the Greek government to the brink of collapse. Several members of Parliament's governing Socialist Party have called on Papandreou to resign, and some members of his own party have called for new elections immediately. A no-confidence vote is scheduled for Friday. Early Wednesday, the Greek cabinet backed Papandreou's referendum plan. Some analysts worry the referendum will bring Greece dangerously close to defaulting on its debt.

As Europe struggles with issues of integration and assimilation, Norway’s attacks have exposed the danger of the continent's right-wing extremists. The suspect’s tirades against multiculturalism and Islam come at a time when governments across the continent work to ease immigration and cultural differences. The country must now face the prospect of more violence.

Greece is preparing this morning to vote on drastic austerity measures that have sparked nationwide strikes and rioting in the country's capital, Athens. 5,000 police were deployed to Athens over the past two days, to combat protesters with tear gas. Meanwhile, the climate inside Parliament is calm as they prepare to vote. If the austerity measures pass, Greece will be able to obtain a second bail-out from the European Union, and avoid defaulting. 

The Irish government is in the unprecedented situation of having a leader of parliament who does not head up his own party. On Saturday, Taoiseach (leader) Brian Cowen stepped down as head of the ruling party, Fianna Fail, after the resignation of key ministers a few days earlier. And yesterday, the government's coalition partner, the Green Party, withdrew its support. Now elections that were scheduled for mid-March will most likely happen in the next few weeks. And the fate of a finance bill that was to complete the IMF bailout is uncertain.

The small eastern European country of Estonia will officially adopt the euro as it's currency on January 1. Boasting a population of just over one million, the 17th country to adopt the euro also has the lowest governmental debt in the EU. But who gets more from Estonia's transition? Many economists say the small country will benefit greatly from a more international currency, and Estonian officials seem eager to show the country's entrance to the West and independence from Russia and the former Soviet Union.

The European Union might see some familiar trends within its region as they tackle the debt crisis that is forcing painful cuts and austerity measures. Why? Because along with the U.S., the E.U. helped bail Latin Ammerica out of a similar crisis in the 1980s. 

Ireland's bailout moves forward, as the country takes a $140 billion from the International Monetary Fund. The move has postponed some looming problems for Portugal, which the E.U. also worries is in need of large-scale financial help. But questions remain about whether the bailout of Ireland will create the necessary stability in the Euro single currency zone or not. The BBC's Theo Leggett joins us for more.  

After Greece's financial bailout by the European Union earlier this year, Ireland and Portugal could be next. Why? In part, because the European Union's economically stronger countries are sometimes obliged to take care of the economically weak, so a feared economic downturn doesn't spread. But when countries like Ireland and Portugal ask for help, there's an immediate problem: Their own interests don't necessarily align with the interests of the countries bailing them out.  

Louise Story, Wall Street and finance reporter for The New York Times, has the latest in this potential economic rescue.

It's Monday, which means it's time to take a look at what's ahead this week in the agenda with the help of Marcus Mabry, associate national editor for The New York Times, and Charlie Herman, The Takeaway and WNYC's economics editor. 

 

We take look at what's ahead this week, with Marcus Mabry of The New York Times and Latoya Peterson editor of the blog, Racialicious. Volcanic ash continues to keep most European flights grounded affecting attendance at everything from the Major Economies Forum on Energy and Climate to the Tribeca Film Festival, both of which take place this week. Meanwhile, Washington is still buzzing about the Iran memo sent by Defense Secretary Robert Gates. And in cultural news, Wanda Sykes' show is up for renewal and Green Days' "American Idiot" opens on Broadway.

As European nations in the Iberian Peninsula fall deeper into debt, the U.S. markets came tumbling down on Thursday, with the Dow Jones Industrial Average closing just above 10,000 points. All this comes hours before new jobless numbers are released.

Bonuses for bankers aren't just a Wall Street problem. Nations from the European Union — mostly led by France — are hammering out an agreement on reforming structures for giving out bank bonuses. The G20 meetings will take place in Pittsburgh in just a few weeks; the E.U.'s goal is to reach an agreement before then... and they hope to get the United States on board, too. Louise Story, finance reporter for The New York Times, has the details.

The Europe-wide song contest Eurovision isn't just about music anymore. The event is turning out to be one of the biggest landmarks in Russia's gay-rights movement. Joining us from Moscow with a report is the BBC's Paul Henley.

For more of The Takeaway's coverage of Eurovision, click here.

Here's a recap of the Eurovision Grand Final:

President Obama is on his second full day of his visit to Turkey. He finished his trip with a town hall meeting with students and an appeal to Turkish youth. The President said he understands the frustrations felt in the Muslim world about some of America's actions and that he wants to turn the page. So how are Turks reacting to the new President? Are they ready to turn the page and renew ties with America? To help answer that question, we are joined by journalist Asli Aydintasbas, who wrote an op-ed in yesterday's New York Times, and Jeff McAllister, BBC political commentator.

For more, read Asli Aydintasbas' op-ed piece, Turkey in Full in the New York Times.

Here is Al-Jazeera's report on the protests that greeted President Obama's visit to Turkey:

If Turkey succeeds in its bid to join the European Union, it would become the most populous state in the EU. But European countries are divided over the issue of allowing a predominantly Muslim country gain such a powerful role. Nowhere is the debate over this more heated than in the Netherlands, where an increasing Muslim population has caused a populist backlash and a string of high profile murders in recent years. We talk to the Dutch Minister for European Affairs, Frans Timmermans, who is in the U.S. to promote the economic benefits of tolerance.


This 2008 news report from Russia Today documents the increasing divide over the growth of Islamic communities in The Netherlands.

It is the second full day of President Obama's visit to Turkey, the last stop on an eight-day European tour that included stops at the G-20 summit and the NATO 60th anniversary meeting. He is wrapping up his visit with an appeal to Turkish youth a town hall-style meeting. But arguably the most important thing President Obama did on his trip was his visit to the Blue Mosque in Istanbul today. The Blue Mosque is of huge symbolic value and religious importance to the Islamic world, having survived for through hundreds of years of upheaval in the region. His visit to Turkey is seen as an attempt to renew a flagging relationship with an important Islamic ally, so what does President Obama's action symbolize? We go to Istanbul for the answer with Turkish journalist, Mithat Bereket, formerly of CNN Turkey who is now on Pusula-TV, a private television station.

As the last stop on his first Presidential tour of Europe, President Obama heads to Turkey. This visit is seen as another step towards engagement of the Muslim world. Turkey was once a strong strategic ally of the U.S., but the relationship has drifted in the last few years. This trip to Ankara is seen as a move to renew the partnership. For more, we turn to Dr. Gulnur Aybet, a specialist on Turkey at the University of Kent in England to discuss the President's visit and his efforts to reach out to Muslims in Turkey and around the world.

The Indian economy continues to be a bright spot on the globe and some forecasters expect it to grow by seven percent by the end of 2009. The U.S. effects outsourced administrative work from India and call centers in India, but at the same time, some Indian firms acquired European companies in the last decade. Europe's economic decline is a ripple effect heading east.

Vikas Bajaj is a reporter for the New York Times and joins The Takeaway to talk about the effects of the global economic downturn on India before he heads out to Mumbai.

The European Union is strongly objecting to a "Buy American" clause in the $800 billion economic stimulus plan being debated in the U.S. Senate. The clause would ensure that only U.S. iron, steel, and manufactured goods are used in infrastructure projects paid for in the stimulus package. The E.U. says it will launch a complaint with the World Trade Organization if the clause remains. Andrew Walker, BBC Economics and Business correspondent.

Germany is Europe's largest economy and like much of the world it has been hit in the financial crunch. Senior members of Chancellor Angela Merkel's coalition government have agreed on an enormous economic stimulus package for the country. The stimulus package is worth 50 billion euros and is in addition to a plan passed last month that was worth 23 billion euros. This adds up to one of the strongest stimulus plans so far in Europe. Bertrand Benoit is following the story for the Financial Times and joins us from Berlin.