Financial turmoil hits the euro-zone...

Not been paying attention to the news this week? We’ve helpfully rounded up the need-to-know events making the headlines in Europe of late…

Financial crisis threatens Europe

In the wake of the U.S. debt deal signed on August 2nd, Europe is battling with the prospect of financial collapse. Amidst concern that Spain, the euro-zone’s fourth-largest economy, might have to be bailed out, the Spanish prime minister Josè Luis Rodrìguez Zapatero called an early election for November 20th. Meanwhile, turmoil spread to Italy; according to a report published by the Centre for Economics and Business Research, Italy’s debt risks rising from 128% of annual output to 150% by 2017. As a result, European stock markets plunged.

Norway pays respects to the victims of terrorist attack

Two services for those killed in Oslo and on Utøya island in last week’s terror attacks were held in Norway on July 29th. The Norwegian prime minister, Jens Stoltenberg, urged his country to show unity in the face of the attacks, which left 77 people dead. Meanwhile, Anders Behring Breivik, the man who confessed to the rampage, made a series of “unrealistic” demands (including the resignation of the government) in exchange for information on other alleged terrorist cells.

DSK’s accuser defends her story

Nafissatou Diallo, the hotel maid who accused ex-International Monetary Fund head Dominique Strauss-Kahn of sexual assault, spoke on July 28th to an audience at a cultural centre in Brooklyn, NY. She said she wanted to “let people know a lot of things they say about me are not true.” In the past month it has been reported that Diallo was a prostitute taking her revenge after DSK refused to pay for her services. On August 4th it was suggested that Air France allows only male crew to serve frequent customer Strauss-Kahn to prevent him from harassing its female employees.

Christine Lagarde faces finance deal probe

New IMF head Christine Lagarde, who replaced DSK following his arrest in May, is accused of abuse of power. The French Court of Justice of the Republic (CJR) will investigate whether she unfairly pressed a bank to enter binding arbitration over a dispute with a businessman who supported President Nicolas Sarkozy’s election campaign.

Heather Mills accuses The Mirror of phone hacking

On Friday 3rd August Sir Paul McCartney’s ex-wife Heather Mills accused British newspaper The Daily Mirror of hacking into her phone. Former editor of The Mirror Piers Morgan, who had previously denied any involvement with the phone hacking scandal, rejected all the claims.

Police forensics under scrutiny in Amanda Knox appeal

Evidence used by Italian police to accuse American student Amanda Knox of the murder of her British roommate Meredith Kercher might have been contaminated. Knox and Kercher were studying in the Italian city of Perugia, when Kercher was found dead in her flat.

Italian committee approves face veil ban bill

An Italian parliamentary committee has approved a draft law banning the wearing of burka, niqab or any headwear which covers the face in public. The bill will be subject to parliamentary vote after summer.

Moscow pleasure boat sinking leaves at least eight dead

At least eight people died when a pleasure boat collided with a barge on Moscow’s Moskva river on July 31st. The tragedy closely follows the sinking of pleasure boat Bulgaria on the Volga river, which killed 122 people.

IMF head Christine Lagarde is to be investigated…