Amartya Sen writes: "Europe has been extraordinarily important for the world, which has learned so much from it. It can remain globally important by setting its own house in order--economically, politically, and socially. The first step is to understand properly, with some clarity, the policy challenges that Europe faces today. A failure to do so will reverberate far beyond Europe's own borders."

The U.S. Federal Reserve, confronting slowing growth and high unemployment, should unveil new stimulus tools at its next policy meeting, writes CFR's Sebastian Mallaby in an op ed.

As the global economic crisis increases the importance of trade, and China and the United States eye greater engagement with Southeast Asia, ASEAN may play a more robust role in the region.

The 2010 debate over the fate of the Bush tax cuts continues to take place in the current bleak economic and fiscal environment.

A proposed centralized banking supervisor could help stabilize Europe's struggling banks and increase vital capital flows within the euro area, says expert Domenico Lombardi.

The financial and political crisis facing Europe can only be redressed with further eurozone integration that the continent's publics may not be ready for, says CFR's Charles A. Kupchan.

EU approval of a new proposal for a banking and fiscal union would help reassure global financial markets and alleviate the eurozone debt crisis, says Bruegel's Benedicta Marzinotto.

Sebastian Mallaby examines the Spanish experience with countercyclical capital buffers to argue that even the most innovative banking regulations will never take taxpayers completely off the hook when banks go bust.

G20 members meeting in Mexico won a commitment on banking sector integration despite limited influence on eurozone politics, says expert Jacob Funk Kirkegaard.

Michael Spence argues that much of the furor over austerity misses the fact that deficit reduction is only one step on the road to restoring competitiveness, employment, and growth.

From the Chinese buying spree to the rise of extremism, Foreign Policy lays out what to watch for as the continent teeters on the brink of disaster.

Peter Orszag calls for a "combo deal" of upfront stimulus and long-term deficit reduction because it would be less risky, offer more growth, and be more likely to be enacted than a stimulus-only approach.

Charles A. Kupchan argues that though it is not too late to save the euro, it is growing too late to save the E.U, as restoring confidence in Europe's integration will prove both more decisive and more elusive.

Provides background information and research links on Europe and U.S. policy towards Europe, including sections on news, government, data, history, and resources on the European financial situation.

Peter Orszag argues that broad spending caps are the wrong way to reduce deficits because they fail to address the reasons why spending continues to increase.

The EU Fiscal Compact, also known as the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union, was signed on March 2, 2012 by EU member states except the UK and Czech Republic.

Economic Downturn: Compares economic indicators from the latest recession to past downturns, both post-war and pre-war, to demonstrate the recent recession is worse than other post-war recessions.

Robert Rubin explains how the pressures of the "fiscal cliff" will present U.S. political leaders with a rare second chance to make critical fiscal reforms after the 2012 elections.

The U.S. financial sector is at risk of eurozone sovereign debt contagion that could potentially undermine the fragile U.S. economic recovery, explains economist Richard H. Clarida.

Martin Wolf writes that, if a eurozone breakup is too costly and greater fiscal solidarity is unattainable, faster adjustment is the only route to bring the region back to health.