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This institutional problem pales beside the political one: when crisis strikes, Europe almost never acts like a true union. After French President Nicolas Sarkozy summoned the leaders of Britain, Germany and Italy to Paris on Oct. 4, German Chancellor Angela Merkel coolly torpedoed his proposed $409 billion Europe-wide financial rescue plan. No money for the greedy fools of other lands, she seemed to say, only to then guarantee German private bank accounts and save Hypo Real Estate. That followed similar moves by Ireland and Greece. And Britain's Gordon Brown will always be loath to see Brussels...

Author: /time Magazine | Title: Gloat at Your Peril | 10/9/2008 | See Source »

...satirical political cartoonist in Soviet Russia, Boris Yefimov drew for the Communist Party's daily Izvestia, among other publications. Some of his more memorable works include depictions of a weakened Germany during World War II. One such drawing, published in 1941, showed a group of frozen German soldiers carrying a coffin labeled "The myth of the invincible German army." Yefimov later turned his eye toward the U.S., creating a cartoon of Dwight Eisenhower laying claim to the North Pole, a drawing commissioned by Joseph Stalin. Yefimov...

Author: /time Magazine | Title: Milestones | 10/9/2008 | See Source »

...shock is what is needed to restructure the banking rules in Europe, one may be underway. Economists are warning that the Continent is facing its biggest crisis since the Depression - when Europeans also first mistakenly thought the problem would remain confined to the U.S. One leading German politician, Interior Minister Wolfgang Schauble, even raised the specter of the kind of longer term economic dislocation that led to the rise of Adolf Hitler. "Four months ago," says economist Schmidt, "I might have said that it may not get worse. But we have not seen anything like this before. I cannot...

Author: /time Magazine | Title: Europe Struggles for a Response to the Bank Crisis | 10/7/2008 | See Source »

...photos of East German nostalgia in Berlin, click here...

Author: /time Magazine | Title: Europe Struggles for a Response to the Bank Crisis | 10/7/2008 | See Source »

...Germany's refusal to sign on to a Continent-wide bailout plan was no less necessary, says Schmidt. Such a plan would have triggered a backlash in Germany against the E.U., egged on by the ready arguments of the anti-Europe German press that Germans were paying to bail out other Europeans, he says. "It would have destroyed the idea of European integration," he says...

Author: /time Magazine | Title: Europe Struggles for a Response to the Bank Crisis | 10/7/2008 | See Source »

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