Europe breathes sigh of relief as economy heals - by David McHugh

Europe has taken a step back from the brink.

Three weeks into the year, borrowing rates for debt-saddled countries have fallen to more manageable levels. Auctions of government debt have gone better, a sign of increased investor confidence.

While it may have been an embarrassment, especially to France, a sweeping downgrade of nine European countries last week by Standard & Poor's, the credit rating agency, has been met with a shrug in financial markets.

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