In 2008, 1.9 million Portuguese workers in the private sector were covered by collective bargaining agreements. Last year, the number was down to 300,000. Spain has eased restrictions on collective layoffs and unfair dismissal, and softened limits on extending temporary work, allowing workers to be kept on fixed-term contracts for up to four years. Ireland and Portugal have frozen the minimum wage, while Greece has cut it by nearly a fourth. This is what is known in Europe as “internal devaluation.”

The collective mood of a nation mired in a prolonged economic recession shows many of the symptoms of clinical depression: despair, fatalism, an inability to make decisions, lack of motivation, and irritability. This is one of the impressions I got from a recent trip to Spain and Italy, two nations I know well and visit often. While both countries have recently made small strides on the path to recovery, I nevertheless came away with the strong sense that their economies are in recession and their societies are in depression.

After waiting out an early-afternoon downpour, Vice President Joe Biden and the U.S. delegation emerged into the humid heat to tour the $5.2-billion canal expansion. Baltimore Mayor Stephanie Rawlings-Blake snapped pictures with her cellphone. Philadelphia Mayor Michael Nutter beamed with curiosity as he walked and questioned a site supervisor.

Hundreds of Ukrainians have flocked to Kiev's Liberty Square to show their support for closer ties with their European neighbours. Demonstrators, who have camped out for a week, have been protesting around the clock against the government's decision to abandon forging an historic pact with the European Union.

The bumpy ride in the rickety van heads up the steep hill into Morro da Providência, this city’s oldest favela. Last stop: a small, silent square with a hardware shop, bar and pair of young policemen in armored gear toting machine guns, patrolling the still-unopened cable-car station that the city has recently built. The port spreads out below. Spurred by two looming mega-events — the World Cup next year and the Summer Olympics in 2016 — local officials are struggling to reinvent this onetime third-world city with a first-world economy.

Pope Francis is once again shaking things up in the Catholic Church. On Tuesday, he issued his first “apostolic exhortation,” declaring a new enemy for the Catholic Church: modern capitalism. “Some people continue to defend trickle-down theories which assume that economic growth, encouraged by a free market, will inevitably succeed in bringing about greater justice and inclusiveness in the world,” he wrote.

Russian President Vladimir Putin has had a good run over the past few months. Edward Snowden, the former NSA contractor, landed on his doorstep, a gift from the PR gods. Agreement on Syria went from no chance to golden opportunity in the course of one afternoon. Forbes dubbed Putin the most powerful man in the world. Yet all these successes obscure a basic fact: Russia is running out of money.

Diplomats often speak with purposeful ambiguity, to please multiple audiences and to not give away their hand prematurely. But a careful parsing of diplo-speak can offer valuable clues in anticipating future policy moves. In what was billed as a major statement on U.S. policy toward Latin America and the Caribbean, earlier this week Secretary of State John Kerry included four substantive paragraphs on Cuba — which were largely misinterpreted by the U.S. media.