Christine Lagarde, France’s minister of finance, seems set to emerge as the leading candidate for the post of Managing Director of the International Monetary Fund, succeeding Dominique Strauss-Kahn, himself a former French Finance Minister. Formal nominations for the post are due on Friday, June 10.

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As the eurozone debt crisis mounts and spreads, the austerity policies put in place by the worst-hit European countries are taking a political toll that could limit leaders’ decisions in their ultimate choices about Europe’s future.

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Even if rumors about a Greek departure from the eurozone have been deflated, the recent flurry of speculation should not obscure the hard facts about what Athens needs to do: shrink the country’s defense spending, privatize more public-sector activity and collect more taxes from companies and wealthy citizens. These are the conditions for energizing the country’s economy and businesses.

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There is a new twist in the disconnect between, on one hand, official denials on all sides that Greece will ever default on its sovereign debt and, on the other hand, the near-unanimity from economists and analysts that some form of restructuring is inevitable.

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Finland has sustained a political tsunami in a parliamentary election that brought a spectacular breakthrough for a eurosceptic and potentially isolationist party, the True Finns. It rocketed to near-equality with the county’s two leading parties, quadrupling its votes during the past election.

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