Likely defeat in weekend's regional election set to be humbling bodyblow to Chancellor's cuts agenda

The Dutch caretaker government and opposition lawmakers said today that they are close to a deal on a provisional 2013 austerity budget, but the outcome was not yet certain.

Wulff stands down after criminal investigation begins over charges of improper favours

Oscar Luigi Scalfaro was a Catholic politician whose anachronistic virtues, in particular his complete honesty and his commitment to the constitution, came to Italy's rescue during the gravest political crisis of the post-war era, the corruption scandal which erupted in 1993.

Chancellor Angela Merkel told political supporters yesterday that the eurozone debt crisis presents Europe with its toughest challenge since the Second World War, and insisted that closer political union and tough fiscal sanctions offered the best hope of weathering the storm.

The next government in Dublin took shape yesterday with Ireland's two largest political parties striking a deal to work together.

Two former opposition parties were holding talks yesterday aimed at forming a new government after the long-dominant Fianna Fail suffered a crushing defeat at the polls.

Irish centre-right party Fine Gael looks set to lead the next government - but without an overall majority, according to an exit poll in the Irish general election.

After today's general election, Ireland needs a government which can face the dreadful economic realities and manage austerity in a manner which is tough but as fair as possible. The previous administration, led by Fianna Fail, chortled to the public that they had never had it so good, but now a prolonged period of painful adversity lies ahead.

The latest polls in the Irish general election, to be held on 25 February, put the four main parties largely in the order they were in when the campaign opened, with Fine Gael likely to the biggest party in the Dail.

Irish Taoiseach Brian Cowen is to take over the Foreign Affairs portfolio after a rebel minister quit following a failed leadership challenge.