Prime Minister Mario Monti's drive to force through labour reform in Italy ran into political trouble, raising the risk that the coalition supporting him in parliament could splinter or the measures be weakened.
Spanish workers angry at a labour reform the government calls an "unstoppable" necessity staged a general strike, bringing factories and ports to a standstill and igniting flashes of violence on the streets.
Spain announced deep cuts to its central government budget today as it battles to convince European partners and debt markets it can rein in its budget deficit.