G20 Urges European Solution

More ominous news out of Europe. As the G20 summit started in Mexico, leaders expressed concern over the mushrooming debt crisis in Europe—while fears over Spain’s financial health grew after the news that the country’s borrowing costs soared. Spain paid just over 2 percentage points more in interest rates on Tuesday, an especially worrisome sign just before its bond auction on Thursday. Meanwhile, European Union commission Jose Manuel Barroso said on Monday that the crisis had not “originated in Europe” but rather by “unorthodox practices” by U.S. banks. In Greece, a coalition government is expected to be formed on Tuesday between the conservatives and the Socialists, as the new government hopes to negotiate a less severe bailout deal.