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Austerity Measures

Gone are the big, deficit-spending days of the 2000s. EU governments have undergone rounds of belt-tightening measures, including cutting social services and raising retirement ages. Even Germany, Europe's strongest economy, pushed through its own far-reaching savings package.

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'Not Even Schäuble Thinks It's a Good Solution' - ARIS MESSINIS/ AFP

Varoufakis Advisor James Galbraith 'Not Even Schäuble Thinks It's a Good Solution'

American economist James Galbraith was one of ex-Greek Finance Minister Yanis Varoufakis' advisors. He speaks with SPIEGEL about secret plans to return to the drachma and the role played by German Finance Minister Wolfgang Schäuble. Von Holger Stark

Power Struggle in Brussels and Berlin over Fate of Greece - AP/dpa

Endgame Power Struggle in Brussels and Berlin over Fate of Greece

European Commission President Juncker wants to keep Greece in the euro zone, no matter what the price. Member states, though, are beginning to lose their patience. Who will ultimately have the final say? Von SPIEGEL Staff

'We Don't Want to Go on Borrowing Forever' - NIKOS PILOS / DER SPIEGEL

SPIEGEL Interview with Greek Prime Minister Tsipras 'We Don't Want to Go on Borrowing Forever'

In a SPIEGEL interview, Greek Prime Minister Alexis Tsipras discusses planned reforms, the polarizing effect his government has had on Europe and the possibility of a "Graccident," Greece's accidental exit from the euro zone. Von Manfred Ertel, Katrin Kuntz und Mathieu von Rohr

'We Need To Explain Ourselves' - Dimitri Messinis/ AP/dpa

Greeks in the Crisis 'We Need To Explain Ourselves'

What hopes and fears has the new government in Greece awakened, and how bad are relations with Germany? Four weeks after the election, SPIEGEL sat down to discuss the situation with six Greek people from different walks of life.

What Would Happen if Greece Leaves the Euro Zone? - Boris Roessler/ dpa

The Grexit Dilemma What Would Happen if Greece Leaves the Euro Zone?

Banks across Europe, including the European Central Bank, are preparing for the possibility of Greece leaving the euro zone. With Athens and Brussels still at odds, such an eventuality seems more realistic than ever. But how disruptive would a Grexit really be? Von SPIEGEL Staff

'Austerity Has Done Nothing to Solve Greece's Problems' - Werner Schuering / DER SPIEGEL

Greek Finance Minister Varoufakis 'Austerity Has Done Nothing to Solve Greece's Problems'

Greek Finance Minister Giannis Varoufakis has had little luck convincing his EU counterparts that Athens needs a debt cut. He speaks with SPIEGEL about why austerity has failed, how aid conditions are like waterboarding and where the bailout money went. Von Thomas Hüetlin und Alexander Neubacher

Greece and EU at Loggerheads Ahead of Monday Meeting - YVES HERMAN/ REUTERS

Euro Poker Greece and EU at Loggerheads Ahead of Monday Meeting

Greece is insisting on the relaxation of conditions relating to emergency aid, but the euro zone no longer fears the consequences of a Grexit. Both sides are digging in ahead of Monday's finance minister meeting. Von Martin Hesse, Christian Reiermann und Christoph Schult

Greece Inches Closer to Renewal of Debt Crisis - Orestis Panagiotou/ dpa

Athens vs. Brussels Greece Inches Closer to Renewal of Debt Crisis

The new government in Athens is intent on forcing Europe to change its approach to Greek debt -- thus far in vain. A confrontation is brewing, and both sides stand to lose. Von Martin Hesse und Christian Reiermann

A Measured First Week for New Greek Leader - Giuseppe Lami/ AP/dpa

Defiance and Charm A Measured First Week for New Greek Leader

Syriza's victory in the recent Greek elections set off a wave of concern in Europe. But even as the new prime minister tries to woo other leaders, his left-wing government is already busy getting down to work. Many of its first moves have been the right ones. Von Manfred Ertel, Julia Amalia Heyer, Walter Mayr und Juliane von Mittelstaedt

'Greek Voters Should Be Realistic' - ARIS MESSINIS/ AFP

European Parliament President Schulz 'Greek Voters Should Be Realistic'

Newly elected Greek Prime Minister Alexis Tsipras has promised to free his country from the strict demands of its European creditors. In a SPIEGEL interview, European Parliament President Martin Schulz says there is room for compromise, but warns Athens must tread carefully. Von Nikolaus Blome und Christoph Schult

Emmanuel Macron's Impossible Mission - PATRICK KOVARIK/ AFP

Reforming France Emmanuel Macron's Impossible Mission

Thirty-six year old Economics Minister Emmanuel Macron has been tasked by French President Hollande with reforming the country. But it won't be easy. Socialists view him with suspicion and the party's left wing is already preparing for battle. Von Julia Amalia Heyer

'What's Happening in Britain at the Moment Is Really Ugly' - Andrea Artz/ DER SPIEGEL

Interview with Hilary Mantel 'What's Happening in Britain at the Moment Is Really Ugly'

Hilary Mantel's historical novels are celebrated in Britain, but her critiques of the establishment are widely feared. In a SPIEGEL interview, she says her country is retreating into insularity and to attitudes prevalent in Victorian times. Von Christoph Scheuermann

Merkel Increasingly Isolated on Austerity - ODD ANDERSEN/ AFP

France and Friends Merkel Increasingly Isolated on Austerity

The debate over Germany's insistence on euro-zone austerity has flared anew as an ailing France continues to demand economic stimulus. The European Central Bank may now be siding with Paris, leaving Merkel looking increasingly alone. Von SPIEGEL Staff

Italian Diplomacy Just Got Younger - Maurizio Gambarini/ dpa

Yearning for Change Italian Diplomacy Just Got Younger

Italian Prime Minister Matteo Renzi promised change for his country. His new foreign minister, Federica Mogherini, embodies the desire to shake things up. Just 41 years old, she lacks extensive experience, but is full of confidence. Von Walter Mayr

Italy's New Prime Minister Promises Radical Reform - MAX ROSSI/ REUTERS

The Gospel of Matteo Italy's New Prime Minister Promises Radical Reform

New Italian Prime Minister Matteo Renzi is a neophyte on the national stage. But he has lofty ambitions nonetheless. A look back at his time as the mayor of Florence provides a glimpse of how he might run Italy. Von Walter Mayr

SPD May Drop Demand for Finance Ministry - Markus Schreiber/ AP/dpa

Coalition Talks SPD May Drop Demand for Finance Ministry

Clinching the powerful post of finance minister in coalition talks would be a major coup for the center-left Social Democrats. But they may drop the demand in return for policy concessions -- and due to tactical considerations by SPD leader Sigmar Gabriel.

Formal Coalition Talks Kick Off in Berlin - Wolfgang Kumm/ dpa

Preparing to Govern Formal Coalition Talks Kick Off in Berlin

Official coalition talks began Wednesday in Berlin between Merkel's conservatives and the center-left Social Democratic Party. Central topics include energy policy and the minimum wage -- as well as Germany's hotly debated European policy.

Is a Milder Merkel in the Cards? - Biel Alino/ dpa

A Fresh Start in Europe Is a Milder Merkel in the Cards?

Angela Merkel's tough-nosed euro policies have divided the Continent and earned her a reputation for coldness. Now that the election has strengthened her hand and freed her of pesky partners, she has a chance to reshape her stance. Von Stefan Kaiser

Scion of Austerity A Tall Order for New Greek Reform Minister

Kyriakos Mitsotakis has only been minister for administrative reform for a few weeks. But he is already under heavy pressure from the troika to reduce Greek spending. To show he means business, the ambitious son of an old political family will soon cut thousands of jobs. Von Julia Amalia Heyer

IMF Calls on Berlin to Loosen Pocketbook - Sean Gallup/ Getty Images

'Germany Is Critical' IMF Calls on Berlin to Loosen Pocketbook

Germany has passed its annual fiscal health check by the International Monetary Fund, but the watchdog is warning that the country's overreliance on exports still makes it susceptible to external shocks.

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