Europe races to save Euro; markets rise

European leaders rushed Monday to stop a rampaging debt crisis that threatened to shatter their experiment in a common euro currency and devastate the world economy as a result. In a measure of how rapidly the peril has grown, ideas unthinkable even three months ago were being seriously considered, including having sovereign nations cede control over their budgets to a central European authority. World stock markets, glimpsing hope that Europe might finally be shocked into stronger action, had one of their best days in weeks. The Dow Jones industrial average in New York rose 300 points. In France, stocks rose 5%, a remarkable move. More relevant to the crisis at hand, borrowing costs for European nations stabilized after rising alarmingly in recent weeks—first in Greece, then in Italy and Spain, then in France and Germany, the two most stable economies in continental Europe. European finance ministers prepared for a summit beginning Tuesday in Brussels. Italy readied an auction of bonds designed to raise (euro) 8 billion, or about $10.6 billion—and steeled itself for the high interest rates it will have to pay. In Washington, President Barack Obama huddled with European Union officials, though the White House insisted Europe alone was responsible for fixing its debt problems.