European Commission

The storm clouds are gathering over the European economy. The European Commission says the economy in the European Union will shrink this year and that next year it will only barely grow.

The European Commission recommended today that Europe bring its banking system into closer union, so that stronger parts of the EU can help out weaker links without disrupting individual governments.

The European Commission has recommended today that banks in the eurozone create a union to help regulate and bolster failing banks.

The big credit ratings agencies -- S&P, Moody's -- faced enormous criticism in the United States for their role in the housing crisis. In Europe, many countries now say those same firms are feeding the debt crisis. So European regulators are pushing back.