Markets drop as Europe meets

Markets drop as Europe meets

Market gloom prevailed Monday at the start of a crucial week for the euro, as Spain made a formal application for billions in aid for its sickly banks and European leaders prepare for talks over the creation of a European banking union to shore up the currency.

Stock markets and the euro dropped amid pessimism that European Union leaders, who are due to meet Thursday and Friday in Brussels, will achieve the far-reaching breakthrough needed to resolve the debt crisis.

“This will be a decisive week for Europe,” the German foreign minister, Guido Westerwelle, said Monday at a meeting of European Union foreign ministers in Luxembourg.

Read more in today's New York Times.