NEWS After years of insisting that the primary cure for Europeâs malaise is to slash spending, the champions of austerity, most notably Chancellor Angela Merkel of Germany, find themselves under intensified pressure to back off unpopular remedies and find some way to restore faltering growth to the worldâs largest economic bloc. On Friday, Prime Minister Mariano Rajoy of Spain, who once promoted aggressive budget cuts, became the latest leader to reject European Union targets for reducing deficits. Andrew Higgins reports from Brussels.
As President Obama wrestles with how to respond to new assessments that Syria appears to have used chemical weapons, leaders in Israel say they will be watching for clues about how he might handle the Iranian nuclear issue in the future. In Syriaâs case, Mr. Obama has said that the use of chemical weapons would âchange my calculus,â but he has not said how. Even while Israel appeared to be egging on Mr. Obama toward taking action, with officials here saying Tuesday that it appeared sarin gas had been used by the Syrian government, those officials also conceded that none of the military options were good. David Sanger and Jodi Rudoren report from Jerusalem.
In Washington, the biggest immigration overhaul in decades would tighten border security between Mexico and the United States to stem the flow of illegal crossings. But there is another border making the task all the more challenging: Mexicoâs porous boundary with Central America, where an increasing number of migrants heading to the United States cross freely into Mexico under the gaze of the Mexican authorities. So many Central Americans are fleeing the violence, crime and economic stagnation of their homes that American officials have encountered a tremendous spike in migrants making their way through Mexico to the United States. Randal C. Archibold reports from Ciudad Hidalgo, Mexico.
Smaller companies that provide most of the jobs in Europe face an ever more difficult struggle to win customers and get bank loans, according to a survey from the European Central Bank on Friday that contributed to a picture of spreading economic stagnation in the euro zone. Small and midsize companies in South European countries like Spain and Italy reported the most trouble making a profit, maintaining revenue and getting loans, according to the E.C.B. survey of 7,500 firms. Underscoring the plight of people in Southern Europe, the Spanish government said Friday that economic growth in coming years could be even worse than previously thought. But the survey also pointed to signs of trouble in Northern Europe, further raising expectations that the E.C.B. might be all but compelled to cut its main interest rate in the coming week. Jack Ewing reports from Frankfurt, Germany.
After opening hundreds of stores in China in recent years, some watch companies are facing an inventory glut and cutting back their retailing presence there. The downsizing comes as shipments of timepieces to China from Switzerland, the worldâs dominant luxury watch production center, have fallen below the levels of two years ago, after setting a record in 2012. Swiss watch exports to mainland China dropped 26 percent in the first quarter from a year earlier, to 323 million Swiss francs, or $343 million, according to data released in the past week by the Swiss Federation of the Watch Industry. Exports to Hong Kong fell 9 percent, to 910 million francs. Raphael Minder reports from Basel, Switzerland.
ARTS The performance artist Marina Abramovic is collaborating on a new work, âBoléro,â which will have its premiere on Thursday at the Palais Garnier on a program that includes Maurice Béjartâs âFirebirdâ and versions of âAfternoon of a Faunâ by Nijinsky and Jerome Robbins. It might seem strange for Ms. Abramovic, 66, the groundbreaking artist who almost single-handedly brought performance art to the general publicâs attention, to be working on a dance. But on her second day of rehearsals in Paris, she was embracing the role with her characteristic enthusiasm. Roslyn Sulcas reports from Paris.
SPORTS The juggernaut meets the road warriors as rugbyâs Heineken European Cup reaches its semifinal stage this weekend. No team has ever made the final four more impressively than the French club Clermont Auvergne, which won all six pool matches â" including home and away defeats of the reigning champion, Leinster â" then smashed compatriot Montpellier, 36-14, in the quarterfinals. It also has a qualified version of home advantage Saturday, when it plays Munster on French soil at Montpellier. Huw Richards reports.