Europe, Greece | featured news

A Moody's downgrade and growing speculation Greece may eventually restructure its debt took the shine off Ireland's thumbs-up from the EU and the IMF on Friday for its efforts to claw its way back from crisis.

Ratings agency Standard & Poor's downgraded two of the euro zone's most troubled member states, citing fears that the pair may have to restructure their debt after 2013.

Moody's slashed Greece's credit rating by three notches on Monday, raising the specter that the distressed euro zone sovereign may be forced to restructure its debt, perhaps even before 2013.

Debt-crippled Ireland formally applied Sunday for a massive EU-IMF loan to stem the flight of capital from its banks, joining Greece in a step unthinkable only a few years ago when Ireland was a booming Celtic Tiger and the economic envy of Europe.

Greek police said they had intercepted a booby-trapped parcel addressed to French President Nicolas Sarkozy, after another package exploded at a courier company in Athens injuring a member of staff.

Greece has imposed a nationwide ban on smoking in enclosed public and private workplaces under a new slogan "cut smoking, gain life."

The state-owned railway loses about $3.8 million a day, prompting a search for solutions: maybe a foreign investor or a complete overhaul.

Protesters marched through Athens Thursday, the first since three people died when a bank was torched.

Greek unions announced on Wednesday that they would stage a 24-hour nationwide strike on May 20, the second major protest against tough austerity measures pledged in exchange for billions of euros in aid.

European debt problems sent another wave of pessimism through the markets.