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The sun sets on 2010

| January 1, 2011 8:00 PM

NEW YORK (AP) - Dazzling fireworks lit up Australia's Sydney Harbor, communist Vietnam held a rare Western-style countdown to the new year and Japanese revelers released balloons carrying notes with people's hopes and dreams as the world ushered in 2011.

Crowds were gathering in New York's Times Square, where nearly a million New Year's Eve revelers were expected to watch a ball with 32,000 lights descend in the run-up to midnight, despite the debilitating blizzard that paralyzed the city just days before.

In Europe, Greeks, Irish and Spaniards began partying through the night to help put a year of economic woe behind them.

As rain clouds cleared, around 50,000 people, many sporting large, brightly colored wigs, gathered in Madrid's central Puerta del Sol square to take part in Las Uvas, or The Grapes, a tradition in which people eat a grape for each of the 12 chimes of midnight. Chewing and swallowing the grapes to each tolling of a bell is supposed to bring good luck, while cheating is frowned on and revelers believe it brings misfortune.

Police had painstakingly screened all those arriving to make sure drinks and bottles were left behind to avoid injury in the crowded square, so many quickly downed their sparkling cava wine before joining the animated party.

"It's an annual tradition and I'm here to make my wishes for the new year, if you eat the grapes your wishes will come true," beautician Anita Vargas said.

As the 12th grape was swallowed, the skies above most Spanish cities lit up with fireworks that slowly filled the air with smoke and the smell of gunpowder.

2010 was a grim year for the European Union, with Greece and Ireland needing bailouts and countries such as Spain and Portugal finding themselves in financial trouble as well.

"Before, we used to go out, celebrate in a restaurant, but the last two years we have had to stay at home," said Madrid florist Ernestina Blasco, whose husband, a construction worker, is out of work.

In Greece, thousands of people spent the last day of 2010 standing in line at tax offices to pay their road tax or sign up for tax amnesty.