Europe 'has capacity to make tough decisions' over the economy

US President Barack Obama: "The solutions to these [financial] problems are hard, but there are solutions. The decisions required are tough but Europe has the capacity to make them. They have America's support...

The sooner they act and the more decisive their actions the sooner markets will regain confidence."

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Spain bank bailout agreed

A Eurogroup statement says it has agreed to lend up to 100 billion Euros to Spain, but Spain says it won't formally request the cash until it is clear exactly how much its struggling banks need.