Here’s a roundup of this morning’s must-read budget and economic stories:

The New York Times profiles Senate meetings on how to deal with impending tax increases and spending cuts. The Hill looks specifically at how senators would deal with defense spending.

The Washington Times examines how automatic spending cuts will affect the Department of Defense.

According to The Hill, it looks like conference committee negotiations on a long-term transportation reauthorization bill have stalled.

Spain’s banks got a bailout over the weekend. The New York Times, Reuters and The Washington Post have the details.

The New York Times says Italy may be next in line for a bailout.