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Europe News - AP

A man walks out of a branch  of Landsbanki in Reykjavik, Iceland Tuesday Oct. 7, 2008 . Iceland nationalized its second-largest bank Landsbanki  on Tuesday under day-old legislation and negotiated a euro4 billion (US$5.4 billion) loan from Russia to shore up the nation's finances amid a full-blown financial crisis. The moves came a day after trading in shares of major banks was suspended, the Icelandic krona lost a quarter of its value against the euro, and the government rushed through emergency legislation giving it new powers to deal with the financial meltdown.  Prime Minister Haarde warned late Monday that the heavy exposure of the tiny country's banking sector to the global financial turmoil raised the spectre of 'national bankruptcy.'  (AP Photo/Arni Torfason)

Iceland teeters on the brink of bankruptcy

Tue Oct 7, 8:07 PM ET

REYKJAVIK, Iceland - This volcanic island near the Arctic Circle is on the brink of becoming the first "national bankruptcy" of the global financial meltdown.

  • Top candidate Joerg Haider (L) of the Alliance For Austria's Future (BZOe) prepares for a TV discussion in Vienna September 28, 2008. The far right surged to almost a third of the vote in Austria's parliamentary election on Sunday, complicating prospects for the biggest mainstream party, the Social Democrats, to forge a stable governing coalition.  REUTERS/Heinz-Peter Bader  (AUSTRIA)
    Far-right Austria governor isolates asylum seekers Tue Oct 7, 7:01 PM ET

    VIENNA, Austria - Far-right Gov. Joerg Haider has set up a facility in the remote mountains of southern Austria to handle asylum seekers suspected as criminals, saying they need to be isolated to protect the people in the area.

  • British defuse IRA dissident bomb in N.Ireland Tue Oct 7, 5:15 PM ET

    BELFAST, Northern Ireland - British army experts have defused a roadside bomb planted by Irish Republican Army dissidents in Northern Ireland four days after finding it.

  • A broker is seen in front of the curve of the German stock index the DAX  at the stock market in Frankfurt, central Germany, Tuesday, Oct. 7, 2008. European stocks shed early gains as ongoing fears about the health of the banking system, particularly in Britain, offset hopes that the world's leading central banks will follow Australia's lead and cut interest rates aggressively.  (AP Photo/Michael Probst)
    European Union tested by world economic crisis Tue Oct 7, 5:00 PM ET

    Wall Street's woes extend far beyond Main Street and all the way to Law Street — the hulking headquarters of the European Union.

  • Rabbi Shear-Yashuv Cohen, Chief Rabbi of Haifa, is interviewed by a television crew at his hotel in Rome October 6, 2008. The first Jew to address a Vatican synod said on Monday that wartime Pope Pius XII should have done more to help Jews during the Holocaust and that he may have stayed away if he knew the major Church gathering coincides with commemorations to honour Pius on the 50th anniversary of his death. REUTERS/Alessandro Bianchi        (ITALY)
    Vatican No. 2: Pius protected Jews during WWII Tue Oct 7, 3:15 PM ET

    VATICAN CITY - The Vatican stepped up its defense of Pope Pius XII on Tuesday, countering allegations the wartime pontiff was silent about the Holocaust by saying he saved Jews through his prudent diplomacy.

  • A member of PETA holds a modified picture of Italian designer Giorgio Armani in front of the Armani store in downtown Milan October 7, 2008. Peta activists protested against Armani's new fall collections.  REUTERS/Stefano Rellandini   (ITALY)
    Animal rights group opposed to fur targets Armani Tue Oct 7, 3:14 PM ET

    MILAN, Italy - The PETA animal rights organization is targeting Armani in its latest anti-fur campaign.

  • In this file photo dated Oct. 2, 2008, Sara Plumby, an Islamic specialist at Christie's is seen behind one of only seven known Fatimid carved rock crystal ewers, at Christie's auction house, London. A rare Islamic crystal jug that was mistaken earlier this year for a cheap French claret pitcher has sold at auction for almost $5.6 million. An anonymous bidder bought the 1,000-year-old rock crystal ewer, one of only seven of its kind known to exist, during a sale of Islamic and Indian art at Christie's auction house in London. (AP Photo/Alastair Grant, File)
    Rare Islamic artifact sells for $5.5 million Tue Oct 7, 2:52 PM ET

    LONDON - A rare Islamic crystal jug mistaken earlier this year for a cheap French claret pitcher has sold at auction for almost 3.2 million pounds ($5.6 million).

  • Romanian minister fired after wedding copter ride Tue Oct 7, 2:15 PM ET

    BUCHAREST, Romania - A Romanian Cabinet minister was fired Tuesday after he used a government helicopter to make it to his wedding on time.

  • EU committee approves climate change bill Tue Oct 7, 12:55 PM ET

    BRUSSELS, Belgium - A committee of EU lawmakers approved an ambitious climate change plan Tuesday, resisting heavy pressure from lobbyists who sought to water down the bill because of the financial crisis.

  • In this Oct. 1, 2008 file photo ISAF soldiers with the German Federal Armed Forces (Bundeswehr) patrol the outskirts of Feyzabad, northern Afghanistan. Chancellor Angela Merkel's Cabinet voted Tuesday, Oct. 7, 2008 to extend Germany's military mission in Afghanistan for 14 months, a German official said. (AP Photo/Anja Niedringhaus, File)
    Germany to extend Afghan mission 14 months Tue Oct 7, 12:12 PM ET

    BERLIN - Chancellor Angela Merkel's Cabinet decided Tuesday to extend Germany's military mission in Afghanistan for 14 more months.

  • Detention revoked for diplomat in US fugitive case Tue Oct 7, 12:12 PM ET

    BELGRADE, Serbia - A Serbian court has freed a former diplomat suspected of helping a student facing assault charges in the United States flee to Serbia, a court official said Tuesday.

  • Hundreds gather to remember slain Russian reporter Tue Oct 7, 10:59 AM ET

    MOSCOW - Hundreds of people gathered in central Moscow Tuesday to remember Russian investigative journalist Anna Politkovskaya on the second anniversary of her killing.

  • Russian soldiers prepare to leave a checkpoint in the Georgian village of Karaleti, some 90 km (56 miles) west of Tbilisi, October 7, 2008. (David Mdzinarishvili/Reuters)
    Russian forces to begin buffer zone withdrawal Tue Oct 7, 10:59 AM ET

    TSKHINVALI, Georgia - Russian forces will begin withdrawing from a buffer zone in Georgia on Wednesday and be out within 24 hours.

  • UN calls for review on biofuel subsidies Tue Oct 7, 10:11 AM ET

    ROME - A U.N. agency on Tuesday called for an urgent review of agriculture and biofuel subsidies and trade barriers, saying their removal would increase opportunities for developing countries to take advantage of rising biofuel demand.

  • Italian survivor recalls WWII massacre Tue Oct 7, 10:11 AM ET

    MUNICH, Germany - Gino Massetti was 15 when he was rounded up by German troops near the Italian village of Falzano di Cortona and herded with 10 other civilians into a barn.

  • Kyrgyz men look at a buckled road at the site of a major earthquake in Nura. Rescuers toiled on Monday in a remote mountain village close to Kyrgyzstan's border with China searching for survivors of a powerful earthquake that killed at least 74 people, 41 of them children.(AFP/Pool/Slutsky-Romanova)
    Kyrgyzstan mourns after quake kills at least 74 Tue Oct 7, 10:11 AM ET

    BISHKEK, Kyrgyzstan - Rescuers in Kyrgyzstan searched the rubble for signs of life after an earthquake that killed at least 74 people.

  • In this Saturday, Dec. 24, 2005 file photo, Russian President Vladimir Putin attends a master class at a judo school in St. Petersburg. Russian media have already shown Prime Minister Putin at the wheel of massive racing truck, shirtless on a fishing excursion and tracking a tiger through the Siberian forest. On Tuesday, Oct. 7, 2008, he presented an instructional judo DVD that bears his name and shows him throwing an opponent to the mat. 'Let's Learn Judo with Vladimir Putin' is the product of collaboration between Putin, a black belt and former World and Olympic judo champion Yasuhiro Yamashita. (AP Photo/ITAR-TASS, Sergei Zhukov, Presidential Press Service, File)
    Judo black belt Putin shows off moves in DVD Tue Oct 7, 9:38 AM ET

    ST. PETERSBURG, Russia - Vladimir Putin is out on video as a judo master. Russian state-controlled media already have shown the powerful prime minister at the wheel of massive racing truck, shirtless on a fishing excursion, and tracking a tiger through the Siberian forest — just a few of the he-man presentations designed to boost his public image.

  • Two Japanese citizens, Makoto Kobayashi, left, and Toshihide Masukawa, center, and a Japanese-born American Yoichiro Nambu, shown in these undated photos, won the 2008 Nobel Prize in physics for discoveries in the world of subatomic physics, the Royal Swedish Academy of Sciences announced Tuesday, Oct. 7, 2008. American Nambu, 87, of the University of Chicago, won half of the prize for the discovery of a mechanism called spontaneous broken symmetry in subatomic physics. Kobayashi and Maskawa of Japan shared the other half of the prize for discovering the origin of the broken symmetry that predicts the existence of at least three families of quarks in nature. (AP Photo/Kyodo News)
    3 win Nobel for subatomic physics research Tue Oct 7, 7:49 AM ET

    STOCKHOLM, Sweden - Two Japanese citizens and a Japanese-born American won the 2008 Nobel Prize in physics for discoveries in the world of subatomic physics, the Royal Swedish Academy of Sciences announced Tuesday.

  • Russia: Arms sales to Venezuela are defensive Tue Oct 7, 7:09 AM ET

    MOSCOW - Russia's foreign minister says the country's arms sales to Venezuela are meant for defensive purposes.

  • Recent winners of the Nobel Prize in physics Tue Oct 7, 6:52 AM ET

    Recent winners of the Nobel Prize in physics, and their research, according to the Nobel Foundation:

  • Iceland gets Russian loan, nationalizes major bank Tue Oct 7, 6:46 AM ET

    REYKJAVIK, Iceland - Iceland nationalized its second-largest bank on Tuesday under day-old legislation and negotiated a euro4 billion ($5.4 billion) loan from Russia to shore up the nation's finances amid a full-blown financial crisis.

  • Thousands march in Romania to protest low salaries Tue Oct 7, 6:39 AM ET

    BUCHAREST, Romania - Some 7,000 workers and trade unionists have marched around the Romanian parliament to demand higher salaries and better working conditions.

  • Copenhagen airport to build new terminal Tue Oct 7, 6:38 AM ET

    COPENHAGEN, Denmark - Copenhagen Airports will build a new 200 million kroner ($26.4 million) terminal for low-cost airlines.

  • Secretary of Defense Robert M. Gates, center, talks to the media aboard a military aircraft en route to Europe, Monday, Oct. 6, 2008. (AP Photo/Haraz N. Ghanbari)
    Gates: US to remain in Kosovo through late 2009 Tue Oct 7, 6:31 AM ET

    PRISTINA, Kosovo - The United States will continue its troop presence in Kosovo until at least late next year, Defense Secretary Robert Gates said just before he arrived here Tuesday, reaffirming U.S. support for the newly declared nation in the face of stern opposition from Russia.

  • EU eyes raising guarantee on private saving Tue Oct 7, 5:39 AM ET

    LUXEMBOURG - An emergency meeting of European Union finance ministers debated raising guarantees for private savings across the 27-nation bloc on Tuesday in an attempt at a coordinated response to the global financial crisis.

  • UN chief wants new look at UN Georgia mission Mon Oct 6, 9:02 PM ET

    UNITED NATIONS - The U.N. mission monitoring a cease-fire between Georgia and the separatist Abkhazia region should be extended for four months to explore whether to continue U.N. involvement following the Georgian-Russian war, the U.N. chief said Monday.

  • The world's largest superconducting solenoid magnet (CMS), at the European Organization for Nuclear Research (CERN)'s Large Hadron Collider (LHC) particule accelerator in Geneva. Human error was likely to blame for the breakdown of the world's largest atom-smasher, the European Organisation for Nuclear Research (CERN) said Monday.(AFP/File/Fabrice Coffrini)
    Bad connection caused atom smasher shutdown Mon Oct 6, 5:41 PM ET

    GENEVA - A bad electrical connection likely caused the malfunction that sidelined the world's largest atom smasher days after it was launched with great fanfare, a senior scientist said Monday.

  • Israel's Prime Minister Ehud Olmert attends the weekly cabinet meeting in Jerusalem in this September 14, 2008 file photo. REUTERS/Dan Balilty/Pool
    Israel's Olmert brings security concerns to Russia Mon Oct 6, 4:42 PM ET

    MOSCOW - Israeli Prime Minister Ehud Olmert came to Moscow on Monday aiming to focus on Russian arms sales to Israel's enemies at meetings Russia hopes will bolster its image as a Middle East peacemaker.

  • Israeli-Russian billionaire Arkady Gaydamak, seen here in Jerusalem last year, is just one of 42 people on trial over a vast "arms-to-Angola" scandal, most of whom are high-ranking members of the French elite. Angola is seeking to stop the trial.(AFP/File/Gali Tibbon)
    Major gunrunning and graft trial opens in Paris Mon Oct 6, 3:39 PM ET

    PARIS - The son of a former French president, an Israeli-Russian billionaire and a tycoon with ties to Arizona's jet set were among the headliners Monday as 42 defendants went on trial in Paris, accused in a worldwide web of trafficked arms to Angola, money laundering and kickbacks.