Worst of Euro Crisis is Over, German Finance Minister Schaeuble Says

The worst of the euro zone sovereign debt crisis is over, German Finance Minister Wolfgang Schaeuble has said in an interview to be published on Friday.

Euro zone crisis batters holiday sales prospects

(Reuters) - Shoppers in euro zone nations battered by years of recession and crisis are on the hunt for bargains, delaying their purchases until the last minute, or simply not buying at all as post-Christmas sales get underway.

Forex Forecasts: Euro’s Relief Rally Depends on Crisis Ease in 2013

The Euro has put in for a remarkable trend shift through the second half of 2012, but its bullish ambitions should not be considered a clear trend.

Spain rules out Irish-style bailout

MADRID: Spain on Wednesday ruled out any Irish-style bailout for the recession-hit, jobs-starved economy, but said it was still undecided about seeking intervention by the European Central Bank to bring down its debt financing costs.

Germany's austerity plans will beggar Europe

Has the eurozone crisis ended? Many politicians in Europe, including France's president François Hollande, seem to think so.

Italy's Monti opens door to seeking new term

ROME (Reuters) - Two days after stepping down, Mario Monti announced on Sunday he would consider seeking a second term as Italian prime minister if approached by allies committed to backing his austere brand of reforms.

Euro-pocalypse not now

BRUSSELS, Belgium — The ancient Maya may not have had much to say about Europe's shared currency, but there were plenty of others willing to predict the euro would meet its doom in 2012.

Fiscal cliff setback rattles global shares, euro

LONDON – Global stock markets weakened on Friday and both the euro and gold slipped, as a new setback in talks to avert a U.S. fiscal crisis and evidence of Europe's ongoing economic difficulties stoked investor nerves.

UK retail sales flat in November

UK retail sales failed to grow in November, adding to fears that consumers are reining in spending ahead of Christmas.

Danish Euro Skepticism at Highest Since Currency’s 1999 Debut

Danish voters now regard the euro with more scepticism than at any time since the single currency’s introduction in 1999 as the crisis in southern Europe enters its fourth year.

Standard & Poor's hikes Greek rating by 6 notches

ATHENS: Standard & Poor's ratings agency on Tuesday upgraded Greece's credit grade by 6 notches, yanking the debt-heavy country out of default but still keeping its devalued bonds in junk status.

Merkel Says Euro Crisis Recovery Is Worth Austerity Pain

Chancellor Angela Merkel said the promise of lifting the euro area out of its debt crisis is worth the pain that’s being caused by German-inspired austerity.

Poland could adopt euro in 2016: presidential adviser

WARSAW (Reuters) - Poland could adopt the euro as soon as 2016, the president's adviser said on Saturday, encouraging the government to take bolder action to prepare for possibility of joining the shared currency.

Spanish Bonds Rise After Debt Sale, EU Agreement on Greek Aid

Spanish bonds advanced for a third week in four as borrowing costs fell at a debt sale and after European leaders signed off on the next aid tranche for Greece, stoking optimism the euro-region debt crisis is being contained.

Greece bailout funds approved

Greece is to get the latest tranche of bailout funds needed to keep the country going, eurozone finance ministers have said.

Swiss Re sees 30% risk of Europe, U.S. recession in 2013

LONDON: There is a 30 percent chance of severe recession i n Europe and the United States next year, though moderately rising growth is the likeliest outcome, according to the world's No. 2 reinsurer.

Europe hails outgoing Italian Prime Minister Mario Monti as Italy crisis hits markets

ROME: European partners heaped praise on outgoing Italian Prime Minister Mario Monti on Monday, and called for the next government to stick to his reform agenda after his surprise decision to resign rattled financial markets.

Greece extends buyback offer to reach 30 billion-euro target

ATHENS/BRUSSELS (Reuters) - Greece extended its offer to buy back debt until Tuesday, seeking more bids from bondholders after falling short of a target to retire bonds worth 30 billion euros at a cost of just 10 billion euros.

Spain's Economic Woes Take A Toll On The Media

Three years of euro-zone recession have badly hurt Spain's media sector, where some 8,500 journalists have lost their jobs. Dozens of newspapers have closed and the remaining publications are sharply cutting back as ads plummet.

Italian Bonds Decline as Berlusconi Threatens Government

Italian 10-year government bonds posted their first weekly drop in four after former Premier Silvio Berlusconi threatened to withdraw his party’s support for Prime Minister Mario Monti’s coalition government.

EU to clamp down on tax evasion: European Commission

BRUSSELS: EU governments lose a "scandalous" one trillion euros ($1.3 trillion) a year to tax dodgers and that has to stop now to prevent further damage to state finances and the economy, the European Commission said on Thursday.

Finland slips into recession as exports stall

HELSINKI: Finland slipped into recession in the third quarter as the euro zone debt crisis dented demand for exports from one of its smallest and most secure economies, data showed on Wednesday.

UK to announce 5 billion pounds capital investment for growth

LONDON (Reuters) - Chancellor George Osborne will invest 5 billion pounds in schools, science and transport projects, the government said on Tuesday.

Euro-Area Finance Chiefs Confident Greek Debt Buyback to Succeed

European finance ministers voiced confidence that Greece will pull off a successful bond buyback, the key element in a revamped effort to stem the debt crisis in the country where it started.

Euro zone crisis drags down European ad spending: report

LONDON (Reuters) - The euro zone crisis has left Western Europe the only world region to see a fall in advertising spending this year, market research group ZenithOptimedia said.

IMF money for Greece contingent on debt buy back

WASHINGTON (Reuters) - The International Monetary Fund will not disburse Greece's next bailout tranche until the country completes a voluntary buy back of its debt, an IMF spokesman said on Thursday.

Eurozone crisis drying up credit to households: ECB

FRANKFURT: Bank lending to private households in the euro area, which has practically dried up in recent months, contracted again last month in face of the region's crippling debt crisis, ECB data showed on Wednesday.

French Market Declines

(RTTNews.com) - The French market is in negative territory on Wednesday, as worries about the fiscal cliff in the U.S. escalated with the remarks of Senate Majority Leader Harry Reid on Tuesday.

Portugal parliament approves 2013 austerity budget

LISBON: Portugal's parliament gave final approval on Tuesday to a 2013 budget which promises a third year of recession and the biggest tax hikes in modern history to ensure international bailout terms are met.

EU leaders gear up for round two of budget negotiations

BRUSSELS: The collapse of EU talks Friday without agreeing a seven-year budget is not calamitous, the bloc will continue to function, but it does heap yet more pressure on a divided European Union mired in an intractable debt crisis.

Analysis: German hint of Greek debt relief raises euro hopes

BRUSSELS (Reuters) - Three years into the euro zone's debt crisis, Germany's finance minister hinted tantalisingly last week at a potential breakthrough.

Italy's lower house approves Monti's budget plans

(Reuters) - Italy's lower house of parliament on Thursday approved a package of budget measures including a sales tax hike and a cut in some payroll taxes, aimed at helping the government reach its deficit-cutting targets.

EU budget summit ends without deal

The Brussels summit has ended without agreement on the 27-strong union's next seven-year budget.

Euro-Area Services, Manufacturing Contract for 10th Month

Euro-area services and manufacturing output shrank for a 10th month in November as the debt crisis hurt confidence, underscoring divergences in the global economy as China’s factories showed the first growth in more than a year.

France is Downgraded, Europe Goes 'From Bad to Worse'

It was bad news for France, but probably worse news for France’s neighbors: Late on Nov. 19, Moody’s Investors Service (MCO)stripped Paris of its AAA bond rating.

Greece Pushes Through Last Minute Reforms

ATHENS--Greece used special powers to pass a law introducing reforms demanded by international creditors in exchange for the country's next aid tranche in time for Tuesday's Eurogroup meeting.

Moody's Says Euro Crisis May Lurch Back into Shock

Moody's Investors Service said Friday the period of calm experienced in Europe in the past six months will come to an end without progress on area-wide reforms, potentially leading Spain and Italy losing bond market access at a time of sizeable refinancing needs.

Euro Crisis Weighs on German Economic Expectations

MANNHEIM, Germany--Economic expectations in Germany fell well below consensus forecasts in November, the latest sign that the euro zone's largest economy is likely to deteriorate over the next six months as the currency bloc's debt crisis drags on, data showed Tuesday.

U.K. Seen Shrinking This Quarter Amid Triple-Dip Risk: Economy

Britain’s economy may shrink this quarter and the risk has increased that the country will succumb to its first triple-dip recession since records began almost six decades ago, according to a survey of economists.

Eurozone falls back into recession

The eurozone has returned to recession as the region's debt crisis continues to hurt demand, figures show.

Greece needs 32.6 billion euros if bailout extended: Troika

BRUSSELS: Greece's international creditors will have to find 32.6 billion euros if they agree to extend its debt bailout by two years to 2016, as it wants, according to a draft report.

Germany Says Growth to Weaken in Winter

Germany's economy, the largest in Europe, will weaken "noticeably" during the winter months as companies hold back on investments due to the euro-zone crisis, Germany's economics ministry said Friday.

Cyprus talks with lenders as debt sustainability in focus

NICOSIA (Reuters) - Cyprus launched a last-ditch bid with potential lenders on Friday to get financial aid needed before coffers in the tiny euro zone economy start running dry.

Poland will look to rich EU states if budget vetoed: PM

(Reuters) - Poland, the biggest recipient of European Union funds, would seek common ground with countries that pay the most into EU coffers if a long-term budget proposal is vetoed, Prime Minister Donald Tusk said on Friday.

Greek vote important step, key issues remain: EU

BRUSSELS: Greece has made an important step in approving tough new austerity measures but must still pass the 2013 budget and key issues remain before it can secure the next debt aid payment, the European Commission said on Thursday.

Angst returns on German recession fears and US fiscal cliff

Stock markets skidded across the world and investors retreated to safe-haven assets on fears that Europe’s festering crisis has spread to Germany and a bitterly-divided Washington may struggle to avert a fiscal crisis.

European Union urges Greece to strike deal with creditors

VIENTIANE: European Union president Herman Van Rompuy urged Greece on Tuesday to reach an agreement with its troika of creditors so that it can receive a new financial lifeline.

UK services sector slows to 22-month low

Growth in the UK services sector grew in October, but the pace has slowed to an almost two-year low, according to "disappointing" official data.

Angela Merkel: eurozone crisis will last at least another five years

The eurozone will take at least another five years to recover from the crippling debt crisis that has hampered even Europe's most powerful economy, according to German Chancellor Angela Merkel.

Euro Crisis Strongest Headwind, Treasury Official Says

MEXICO CITY--Senior finance officials from the world's top economies meeting this weekend in Mexico City will continue to focus on the European crisis response, a senior U.S. Treasury Department official said Friday, downplaying calls by some in Europe that the U.S. fiscal situation should be the priority.

Greece caught in trap of rising national debt

ATHENS: Greek debt has turned into a modern version of a nightmare from mythology in which the more the country cuts and taxes to climb the mountain, the deeper down it falls.

Deputy PM Clegg warns UK risks sliding to EU exit

(Reuters) - Britain faces a crisis that could end with the world's sixth largest economy leaving the European Union, Deputy Prime Minister Nick Clegg warned ahead of a showdown over budget spending with other states in the 27-member bloc.

Greece recession and debt problems even worse

Greece's draft budget for 2013 has forecast a deeper recession and worse debt problems than previously thought.

IMF chief Christine Lagarde urges further debt reduction from leading economies

BERLIN: The head of the International Monetary Fund says the world's leading economies must continue to cut government spending despite an overall situation of only "tepid growth."

Greece says EU and IMF lenders refuse to concede on reforms

ATHENS: Greece's foreign lenders have refused to make any further concessions on changes to labour laws contested by a junior coalition partner, the country's finance minister said on Sunday, prolonging an impasse on a crucial austerity package.

ECB's Draghi backs Schaeuble's "currency commissioner": Spiegel

(Reuters) - European Central Bank Chief Mario Draghi has thrown his weight behind a proposal by German Finance Minister Wolfgang Schaeuble to radically expand the powers of the European Union's monetary affairs commissioner.

Hungary government to take on $2.8 billion of municipal debt

BUDAPEST (Reuters) - Hungary's government will take over 612 billion forints ($2.8 billion) of local government debt in a bid to give debt-laden municipalities a fresh start, Prime Minister Viktor Orban said on Saturday.

Spain jobless rate hits new high in third quarter

About a quarter of working-age people in recession-hit Spain are unemployed, new figures have shown.

Eurozone business activity hits fresh low

Business activity in the eurozone contracted at its fastest pace in almost three-and-a-half years in October, a survey suggests.

UK wellbeing still below financial crisis levels

A mix of deep recession and high inflation has left national wellbeing in Britain more than 13% down on its level before the global financial crisis, according to new government data.

EU to propose bank resolution agency in 2013: Barnier

(Reuters) - The European Commission will make a proposal next year for a joint agency for shoring up or closing troubled banks, Michel Barnier, the commissioner in charge of financial regulation, said on Monday.

European Countries Slashed Deficits in 2011, Data Show

PARIS — European countries sharply reduced their deficits last year, official data showed Monday, even as their overall debt grew as governments pushed ahead with austerity measures in the face of the euro crisis.

Angela Merkel's toughest political ally turns milder on Greece

MUNICH: German Chancellor Angela Merkel appears to have convinced the toughest audience in her political camp that Greece should be given the benefit of the doubt, and possibly more time to meet its painful savings targets.

Euro Zone Aid? Ask for the Bill in German

Germany's economy has defied gravity month after month, recording growth when many of the country's euro zone peers were struggling to avoid or emerge from recession, but even the so-called "engine" of Europe is now succumbing to the crisis.

Hungary Assails EU Over Budget Changes

BUDAPEST—Hungary's economy minister slammed the European Union Wednesday for forcing a significant toughening of the country's 2013 budget because of doubts that earlier deficit targets can be met.

German government cuts 2013 growth forecast

BERLIN (AP) — Europe's debt crisis and waning economic growth around the world, particularly in emerging markets, prompted the German government to cut its forecast for growth next year.

Austerity has hurt UK growth, says OBR

Austerity measures may have damaged growth in the British economy more than originally assumed, said the Office for Budget Responsibility (OBR), the government’s independent economic forecasting body.

Debt cuts only way to sustainable growth: Germany

BANGKOK: Slashing government debt is the only way to put Europe back on a path of sustainable economic growth, German Finance Minister Wolfgang Schaeuble said on Monday.

IMF chief urges action in tackling euro crisis

TOKYO (AP) — The head of the International Monetary Fund on Thursday called for urgent action to tackle Europe's debt problems and an approaching fiscal crisis in the U.S., warning that the struggling world economy is already falling short of even pessimistic expectations.

Germany in 'great danger' of falling into recession

Germany is in "great danger" of plunging into recession, four respected think tanks have warned, as they slashed the country's 2013 growth forecasts in half.

Polish PM seeks course through economic storm

WARSAW (Reuters) - Polish Prime Minister Donald Tusk will try to persuade voters on Friday he is the best man to deal with an economic slowdown that has made one of eastern Europe's most stable governments look suddenly vulnerable.

Spain to miss deficit targets in 2012 and 2013; debt to cross 90 pc of GDP: IMF

MADRID: Spain will miss its deficit targets in 2012 and 2013 and its debt will jump to more than 90 percent of gross domestic product next year as it recapitalises its banking sector, the IMF said on Tuesday.

UK PM will not soften austerity despite IMF growth cut

BIRMINGHAM, England (Reuters) - British Prime Minister David Cameron said on Tuesday he would not soften his austerity program with a "Plan B" of slower spending cuts after the International Monetary Fund downgraded its growth forecasts for Britain.

Swiss Economy Unlikely To Slip Into Recession - UBS's Weber

The Swiss economy is unlikely to slip into a recession with gross domestic product probably moving sideways in coming months, UBS AG (UBS) Chairman Axel Weber said Friday.

Greece will run out of money at the end of November: Prime Minister Antonis Samaras

BERLIN: Greece will run out of money at the end of November if it doesn't receive the next planned installment of its bailout loans, the country's prime minister has said.

French Economy Stagnates as State Spending Prevents Recession

The French economy will fail to grow in the second half, extending stagnation to five quarters, national statistics office Insee predicted yesterday.

Debt crisis: Spain's forecasts are 'optimistic', says Governor of the Bank of Spain

The Governor of the Bank of Spain warned that Madrid’s financial forecasts are “optimistic” adding to the mounting pressure on Mariano Rajoy from European Central Bank and the International Monetary Fund.

Portugal announces higher taxes as strike is called

Portugal has announced several new austerity measures, which were met with a call for a huge strike next month.

Spain's PM says bailout not imminent

Spain's prime minister, Mariano Rajoy, has ruled out a multi-billion euro bailout before this weekend, despite the worsening economic situation and pleas from Madrid's neighbours for a resolution to the current crisis.

Greek Budget Predicts Economy Will Shrink for Sixth Year

Greece’s economy will contract for a sixth year in 2013 as the government prepares further cuts to pensions, wages and social benefits to meet the terms of its bailout packages.

Spain borrowing needs rise on banks, regions; debt-to-GDP ratio to rise to 90.5 pc in 2013 vs 85.3 pc in 2012

MADRID: Spain's borrowing needs will rise in 2013 from this year as the government pours cash into its battered banking system and its cash strapped regions, the detailed budget document showed on Saturday.

Slovenia debt to rise but no bailout needed: PM

UNITED NATIONS (Reuters) - Slovenia's economy, saddled by a banking crisis, does not need a financial bailout, even though public debt levels will likely breach European Union rules in two years, Prime Minister Janez Jansa said on Friday.

Greece's 2013 budget to deepens cuts, sustain recession

ATHENS (Reuters) - Greece will unveil a draft budget for 2013 on Monday which will cut deeper into public spending to impress international lenders but also prolong the economic pain of the Greek people.

Spain Budget Concentrates on Spending Cuts Over Revenue

MADRID (Reuters) - Spain announced a detailed timetable for economic reforms and a tough 2013 budget based mostly on spending cuts on Thursday in what many see as an effort to pre-empt the likely conditions of an international bailout.

Brent steady above $110 on supply woes, Euro crisis caps gains

SINGAPORE (Reuters) - Brent futures held steady above $110 on Thursday on renewed worries of supply disruptions from the Middle East, while an escalating euro zone debt crisis reinforced oil demand growth concerns and capped the gains.

Europe must take "deep breath" and enact reforms: Merkel

BERLIN (Reuters) - Chancellor Angela Merkel said on Tuesday that Europe could only hope to come out of its crisis stronger and compete in a globalised world if its members pressed ahead with painful reforms and moved to more responsible budget policies.

Spain's bailout hesitation 'highly risky': EU commissioner

BRUSSELS: Uncertainty over whether Spain intends to seek a full bailout is "highly risky", Joaquin Almunia, the EU's competition commissioner, warned Madrid during an interview with AFP.

Euro Posts First Decline in Six Weeks as Economic Growth Stalls

The euro fell for the first time in six weeks versus the dollar as reports showed the region’s economy struggling amid the debt crisis.

ECB may not supervise all banks - Merkel ally

(Reuters) - A senior conservative ally of German Chancellor Angela Merkel has suggested the European Central Bank may not get new powers to supervise all of the euro zone's banks and said the existing European Banking Authority could be enhanced instead.

Spain Sale Improves Funding Prospects

Spain's ailing finances got a needed boost Thursday from the sale of long-dated debt, much of it to foreign buyers, clearing the biggest hurdle for the country since the European Central Bank signaled two weeks ago that it stood ready to buy bonds of fiscally frail euro-zone members.

Greece becoming more competitive, must stay in euro: Juncker

(Reuters) - Greece's competitiveness has greatly improved and its wage costs have fallen significantly and the euro zone must strive to keep the country as a member, the chairman of the Eurogroup of finance ministers said on Tuesday.

Swiss banks to suffer big withdrawals over tax: UBS

ZURICH: UBS expects Swiss banks to see European clients withdraw "hundreds of billions of francs" as a result of steps to stop foreigners using secret accounts to evade taxes.

Hungary to respond to IMF/EU by mid-week: minister

BUDAPEST (Reuters) - Hungary will send its proposals to international lenders by the middle of next week to allow credit talks to resume but will not modify its economic projections for 2013, the minister in charge of talks with the IMF and EU said on Sunday.

Europe at loggerheads over banking union

European finance ministers clashed over plans for a banking union on Saturday, with Germany leading criticism of proposals to introduce a single banking supervisor by January.

Eurozone crisis: Greece may gain more time to pay debts

Eurozone finance ministers hinted on Friday that Greece may be given more time to pay its debts, though they ruled out a third bailout, which most economists believe will be needed before Athens can get back on its feet.

Eurozone crisis: Spain refuses bailout terms

Mariano Rajoy, the Spanish prime minister, has said he is more determined than ever to avoid having to ask for a bailout – despite the insistence last week by ECB president, Mario Draghi, that it would be a condition of the central bank helping to keep down a country's borrowing costs.

Analysis: Hollande's growth goal gutted by deficit plans

PARIS (Reuters) - French President Francois Hollande has set himself a deadline to turn around the economy by the end of 2014, but having hamstrung the effort with tax rises to meet deficit targets, economists doubt his growth goals will ever fly.

Inspectors Reject Some Cuts by Greece

ATHENS—Visiting international inspectors on Sunday rejected parts of Greece's proposed austerity plan, forcing the country's coalition government to seek fresh spending cuts to meet creditors' demands.

Fate of eurozone rests in the hands of German judges

They have the potential to throw the stock exchange into turmoil, trigger frenzy on bond markets and bring down the German government.

Euro Rises Most in 6 Months on ECB Plan; Payrolls Weaken Dollar

The euro posted its biggest advance in six months versus the dollar after European Central Bank President Mario Draghi pledged to buy bonds to contain the region’s debt crisis.

Spain to remain careful, calm on aid request decision

MADRID: Spain will analyse the conditions and modalities of the European Central Bank's bond-buying programme carefully and at length before taking a decision on an aid request, Spain's Deputy Primer Minister Soraya Saenz de Santamaria said on Friday.

Key ECB steps to combat Europe's debt crisis

FRANKFURT, Germany (AP) — Here are some of the key steps the European Central Bank has taken to ease Europe's financial crisis and provide a spark to the weak economy.

Longer working week suggested for Greece

Greece's international lenders have suggested measures including increasing the maximum working week to six days.

Moody's puts European Union on notice

NEW YORK (CNNMoney) -- Moody's put the European Union on notice Monday that its top-notch Aaa rating is at risk of downgrade, cutting the outlook on the EU's creditworthiness to "negative" from "stable" because of the continent's ongoing debt crisis.

Eurozone manufacturing PMI falls again in August

Manufacturing output across the 17-country eurozone shrank again in August, according to a widely-watched survey.

French PM warns vote vs fiscal pact would weaken Hollande

(Reuters) - French Prime Minister Jean-Marc Ayrault sought to rally a divided left behind the European Union's fiscal compact, arguing that anything but a strong endorsement would weaken President Francois Hollande and France itself.

Debt crisis: OECD backs plans for ECB bond market intervention

The OECD has waded into the dispute over emergency measures to prop up Spain and Italy, backing plans for the European Central Bank to buy up debt of struggling eurozone nations.

Europe crisis: Spain creates bad bank, paves way for rescue funds

MADRID: Spain overhauled its banks for the fifth time in three years on Friday to secure up to 100 billion euros ($125 billion) in European aid for lenders crushed by bad loans from an extended property market crash.

Economic uncertainty growing massively: ECB's Nowotny

(Reuters) - Economic uncertainty in Europe is rising "massively" as growth prospects worsen, especially for debt-strapped southern euro zone members, European Central Bank Governing Council member Ewald Nowotny said.

Swiss economic outlook still bright -KOF sentiment index

ZURICH: Prospects for the Swiss economy remain healthy, a leading indicator showed on Wednesday, as the central bank's cap on the safe-haven franc underpinned the country's export sector.

Spain's economy contracts again as recession deepens

Spain's economy contracted further in the second quarter of the year as the country remained mired in recession, official figures show.

Unilever sees 'return to poverty' in Europe

Unilever will adopt marketing strategies used in developing countries in order to drive future growth in Europe, as the head of its European business warned that poverty will rise in the region as a result of the debt crisis.

France's Hollande Backs Greece But Urges Credible Reform

(CNN) -- French President Francois Hollande restated his country's support for debt-stricken Greece Saturday, but stressed that it must live up to its reform commitments.

In Euro Crisis, Fingers Can Point in All Directions

FRANKFURT — The debate about how to distribute the cost of preserving the euro often centers on a fundamental question that is unspoken but implicit: Who caused this crisis anyway?

German finance ministry studying "Grexit" costs: paper

BERLIN (Reuters) - A working group led by Germany's deputy finance minister is studying the possible economic impact of a Greek exit from the euro zone, a newspaper reported on Friday, as Chancellor Angela Merkel prepared for talks with Greece's prime minister.

Debt crisis: eurozone headed for recession as economic rot spreads

The eurozone looks destined for its second recession in three years, as business surveys showed the economic rot is even spreading to Germany, the region's largest and strongest economy.

Eurozone crisis: Greek PM Antonis Samaras seeks 'breathing space', starting EU talks

ATHENS: Greek Prime Minister Antonis Samaras started a European charm offensive on Wednesday with an appeal to Germans for more time to meet Athens' borrowing obligations, but he may struggle to make his case in a series of meetings this week with EU leaders.

Germany puts pressure on Greece PM over bailout targets

Greece must stick to its agreed bailout conditions, Germany says, at the start of a week in which Greece is expected to ask for more time to make cuts.

French finance minister sees economy growing in 2013: report

PARIS (Reuters) - France economy has the potential to rebound in 2013 and there are no plans to lower growth forecasts for next year, Finance Minister Pierre Moscovici said in an interview to be published on Sunday by weekly newspaper Le Journal du Dimanche.

Finland prepares for break-up of eurozone

The Nordic state is battening down the hatches for a full-blown currency crisis as tensions in the eurozone mount and has said it will not tolerate further bail-out creep or fiscal union by stealth.

Euro zone heading into another recession

(Reuters) - The euro zone will slip into recession and won't grow until 2013, according to the latest Reuters poll of economists who also don't expect any new aggressive policy response from the European Central Bank.

UK retail sales post surprise rise in July

British retailers reported an unexpected rise in sales in July, and much higher sales than previously thought in June, data showed on Thursday, boosting hopes that the UK's recession may not be as deep as feared.

Greece to ask for 2-yr extension of austerity-plan, Germany says no

ATHENS: Prime Minister Antonis Samaras will call for a two-year extension to Greece's austerity programme when he meets Angela Merkel and Francois Hollande next week, a newspaper reported on Wednesday.

Economic Crisis Now an Olympic One

The economic crisis hitting Europe's most troubled nations hasn't spared their Olympic performance.

Euro Falls Amid Concern Crisis Worsening, Global Growth Slowing

The euro declined versus the dollar for the first time in three weeks as signs of slowing global economic growth added to concern Europe’s sovereign-debt crisis is worsening, damping appetite for riskier assets.

Eurozone debt crisis: Clouds gather over Spanish Prime Minister Mariano Rajoy as EU bailout nears

MADRID: Spanish Prime Minister Mariano Rajoy faces a cloudy return from his short summer break as his expected request for European aid in September will spur protests on the street and deepen cracks emerging in his conservative People's Party.

Greek jobless rate hits new record, more pain ahead

ATHENS (Reuters) - Greece's jobless rate climbed to a new record in May, underlining how austerity prescribed to slash deficits and keep bailout funds flowing is hitting the economy on which recovery depends.

Once-resilient Germany catches Europe's crisis fever

FRANKFURT: Germany long appeared immune to Europe's debt crisis, as deep reforms undertaken years ago helped steel the economic powerhouse against the current financial storms lashing its neighbours.

Halifax expects house prices to stagnate after fall in July

House prices fell in July following two months of increases but are expected to remain largely flat for the rest of the year, the Halifax said in its latest housing market survey.

Monti Calls for More Crisis-Fighting Urgency in ECB Standoff

Italy’s Prime Minister Mario Monti warned of a potential breakup of Europe without greater urgency in efforts to lower government borrowing costs, as a standoff over European Central Bank help for Italy and Spain hardened.

The Euro Crisis: When Will It End?

The eurozone crisis is over two years old now. It’s no longer crawling. This baby is walking and has a mind all her own. And my, what an ugly little critter this kid is, isn’t she?

Spain 2-Year Yield Drops Most in 2012 on ECB Buying Speculation

Spanish two-year notes rose this week, pushing down yields the most since December on speculation the European Central Bank will buy shorter-maturity government securities to help quell turmoil in the region’s debt markets.

IMF demands eurozone intervenes to contain debt crisis

The International Monetary Fund (IMF) last night called for a "policy game changer" in the eurozone to arrest the spread of the debt crisis it says is engulfing the entire currency bloc and its smaller neighbours.

Euro drops versus dollar after ECB Draghi's comments

NEW YORK (Reuters) - The euro fell against the dollar in volatile trade on Thursday after European Central Bank President Mario Draghi disappointed investors hoping for quick action to contain the euro zone debt crisis.

US raises pressure for decisive action on euro zone crisis

FRANKFURT/BERLIN: The United States raised pressure on euro zone leaders to take decisive action to solve the region's debt crisis, notably by lowering troubled members' borrowing costs, on the eve of a crucial European Central Bank meeting.

Euro crisis: Monti upbeat, but unemployment rises

Italy's Prime Minister Mario Monti has said he sees "light at the end of the tunnel" on the eurozone debt crisis. Mr Monti met French President Francois Hollande in Paris after which the two renewed their support for the euro.

Euro zone crisis heads for September crunch

BRUSSELS (Reuters) - Over the past couple of years, Europe has muddled through a long series of crunch moments in its debt crisis, but this September is shaping up as a "make-or-break" month as policymakers run desperately short of options to save the common currency.

Greek Official Says Troika to Remain Until Budget Complete

Representatives of Greece’s international creditors may extend their visit to the country until the government has completed work on a two-year, 11.5 billion-euro ($14 billion) budget plan, a Greek finance ministry official said today.

Spanish unemployment hits record high 24.6 per cent

MADRID: The number of people unemployed in Spain hit a record high, official figures showed Friday, as the International Monetary Fund urged European leaders to quickly fulfill their promises to help the country and the 17-country eurozone.

Sceptics abound as Mario Draghi's ECB bond 'bluff' electrifies global markets

The European Central Bank has opened the door to emergency support for the Spanish and Italian bond markets, setting off a blistering rally on bourses across the world.

Britain's economy slumps for 3rd straight quarter

NEW YORK (CNNMoney) -- The British economy slumped for the third consecutive quarter, adding to the economic concern throughout Europe.

All eyes on ECB to come to eurozone's rescue yet again

FRANKFURT: The European Central Bank may have to ride to the eurozone's rescue again very soon, analysts said Tuesday, as Spain looks set to be the next country engulfed by the never-ending debt crisis.

Fall in Germany's PMI adds to its credit rating worries

Germany's private sector shrank for a third straight month in July in a second blow to Europe's largest economy after Moody's cut its credit rating to AAA with a negative outlook.

Spain and Italy ban short selling

Securities regulators in Spain and Italy both instituted short-selling bans Monday as financial markets tumbled.

Greece is in a 'Great Depression': PM Antonis Samaras

ATHENS: Greece is in a "Great Depression" similar to the American one in the 1930s, the country's Prime Minister Antonis Samaras told former U.S. President Bill Clinton on Sunday.

Crisis-Hit Nations Fight to Prepare for Olympics

With one hurdle left, something snapped. It wasn't a bone or anything that serious, but Greek athlete Periklis Iakovakis somehow lost power and quickly dropped from first to last in the European Championship 400-meter hurdles final, unable to summon enough energy to keep going strong.

Euro zone crisis: Spain's leader could learn some lessons from Portugal

MADRID/LISBON: Spanish Prime Minister Mariano Rajoy could learn some lessons about communication from neighbouring Portugal as he struggles to restore confidence in Madrid's public finances and avoid an international bailout.

World Bank chief warns no region immune to European crisis

WASHINGTON (Reuters) - World Bank President Jim Yong Kim on Wednesday warned that most regions of the world will be hurt by the debt crisis enveloping the euro zone and said it was vital to protect the strong economic gains of the past decade in the developing world.

Greece seeking bridge loan for funding needs

ATHENS: Cash-strapped Greece is seeking a bridge loan from its foreign lenders to cover its financing needs through August, a finance ministry source said on Tuesday.

UK economy to see return to growth, says Item Club

The UK economy should enjoy an "Indian summer" after a poor first half of the year, says a leading forecaster.

Euro tumbles as Asian funds shun EU chaos

The single currency has been sliding relentlessly since the European Central Bank cut its discount rate to zero last week, triggering an exodus of money market funds, but has now broken key resistance levels watched by technical analysts.

Greek unemployment rate at new record of 22pc

Greek unemployment hit a record 22.5pc in April and may keep edging higher, with even the key tourism sector unlikely to provide more than fleeting support over the summer as visitors stay away from the recession-hit country.

Debt crisis: Sir Meryvn King warns of eurozone's 'black cloud of uncertainty'

The eurozone crisis has created a “great black cloud of uncertainty” Sir Mervyn King warned, as Germany’s Constitutional Court threatened to derail plans designed to take the region forward.

Spain faces budget risks despite looser target: document

BRUSSELS (Reuters) - Looser budget deficit targets for Spain may still prove difficult to reach, according to an EU document that demands the country be subjected to three-monthly checks, a move that will tighten supervision of the euro zone's fourth-largest economy.

Eurozone crisis to keep markets under pressure

LONDON: Growing disillusion over the latest steps to resolve Europe's debt crisis and policy easing by major central banks will dominate market sentiment in the coming week, with equity investors also braced for a new company reporting season.

Debt crisis: Spain poised for further spending cuts

The Spanish Prime Minister Mariano Rajoy said that he will take additional steps in the coming days to reduce the country's debt mountain.

Eurozone crisis: Tough questions for Franco-German axis after Merkel's big defeat

Rarely is a high-flying country brought back down to Earth in a single night, but that is precisely what happened to Germany recently.

Slovenia could need a bail-out, finance minister admits

Slovenia could become the sixth eurozone nation to seek an international rescue, as the country's finance minister admitted on Thursday that a bail-out "can't be ruled out".

ECB cuts eurozone rates to record low of 0.75%

The European Central Bank (ECB) has reduced its key interest rate from 1% to 0.75%, a record low for the eurozone.

Eurozone's private sector hit for a fifth month

The eurozone’s woes continued as the debt crisis dragged the region’s manufacturing and services sector down for a fifth consecutive month in June.

Eurozone unemployment rises to record high 11.1%

NEW YORK (CNNMoney) -- Reports on Europe's job market and manufacturing sector both show the region's economic woes persist.

Rio Tinto Says Euro Crisis Weighs but Sees Robust China Growth

The euro-zone crisis is slowing global economic growth for the short term but China, the world's largest consumer of many commodities, is still expected to grow at more than 8% this year, mining titan Rio Tinto PLC (RIO) said in a presentation Friday.

Euro zone inflation steady, room for ECB move

BRUSSELS (Reuters) - Euro zone inflation held steady at a 16-month low in June, kept in check by a sharp fall in oil prices and supporting an already strong case for a near-term interest rate cut by the European Central Bank.

Debt crisis: Ireland hails euro 'game changer'

Ireland claimed that a deal struck at a summit of eurozone leaders was a “game changer” for the country which would help it escape a second bailout.

Doubts Linger Despite Show of Euro-Zone Unity

BRUSSELS—European leaders' new measures Friday to tackle the euro zone's debt crisis—promising to use their sizeable rescue funds more flexibly and pave the way for the European Central Bank to assume an expanded role as supervisor for the euro zone's banking sector—were welcomed as a rare bold step in the right direction.

Euro to Hit $1.20 as Crisis Worsens, State Street Says

The euro will probably drop to $1.20 by year-end as Europe’s debt crisis worsens before it improves, according to State Street Corp. (STT), which oversees $16.9 trillion in custody assets.

Eurozone crisis causes aid cuts to poor, report says

The European debt crisis has led to cuts in government development aid to poor countries, says a new report by the aid watchdog Data. It is the first significant reduction in Europe-wide aid budgets for a decade.

Cyprus to hold crisis talks as bailout looms

(Reuters) - Cyprus' leaders will discuss on Tuesday options for reviving an economy on the verge of succumbing to a bailout, with a debate raging on whether the country should seek aid from the EU's rescue fund or look further afield.

Ten EU nations to press ahead with market transaction tax

BERLIN: Germany and nine other European Union nations will press ahead with plans to introduce a financial market transaction tax, following failed attempt for an agreement to levy it across the EU.

UK risk watchdog set to ease bank buffers

LONDON (Reuters) - The Bank of England's risk watchdog looks set to allow lenders next week to free up billions of pounds from their cash buffers and help haul the economy out of recession.

Investors head to Germany despite euro-zone crisis

CHICAGO (MarketWatch)-- Foreign direct investment in Germany increased by almost 7% in 2011, even in the face of the euro-zone crisis, according to a report released Friday by Ernst & Young.

German investor confidence tumbles in June

German investor confidence dropped sharply in June, sustaining its steepest fall in nearly 14 years, amid increased concerns over the health of Spain's banking system.

Germany to cut Greece slack after vote backs bailout

BERLIN (Reuters) - Germany may cut Greece some slack after its voters backed a pro-bailout party in weekend elections, with officials saying Athens might get more time to meet its savings goals, though longer-term economic reforms were still set in stone.

No let-up for Spain, Italy pain from Greek vote

MILAN/MADRID: Any hopes Italy and Spain may have had that the Greek election result would ease pressure on their own debt crises were dashed early on Monday when financial markets reacted as if nothing had changed.

Greek exit would be 'catastrophe', says former Greek PM

A Greek exit from the euro would be a "major catastrophe", former Greek PM George Papandreou has told the BBC.

EU crisis: Mario Monti raises spectre of crisis amid protests

MILAN/ROME: Italy is again flirting with economic disaster, Prime Minister Mario Monti said, as huge crowds massed in Rome in protest at his austerity measures a day ahead of an election in Greece that threatens to destabilise the whole euro zone.

In Euro Crisis, Obama Tries to Build on a Rapport With Merkel

WASHINGTON — At the end of a summit meeting at Camp David last month, as the other world leaders were heading for their helicopters, President Obama did what has become a habit during his years in the White House: he made time for an informal but deadly serious talk with Chancellor Angela Merkel of Germany.

Euro crisis: It's still not over

NEW YORK (CNNMoney) -- Spain officially requested a bailout for the nation's banks Saturday but euphoria about the weekend's announcement was short-lived.

Market Rally Fades Over Spanish Bank Rescue

A key consideration in the Spanish bank rescue is how investors will judge the Spanish government’s solvency if it is required to add 100 billion euros of debt guarantees to its already strapped finances.

Could Italy be next? Fears after Spain bank rescue

Even as the global economic community hailed an agreement to rescue Spain's stricken banks, there was concern in Rome on Sunday that investors could now begin treating Italy as the next weak link in the eurozone.

Greek unemployment hits record while French jobless rate reaches 10pc

Eurozone unemployment marched higher on Thursday as Greek joblessness reached a new record and France's jobless rate hit the psychologically damaging 10pc mark.

Europe crisis: Spain passes market test, Merkel douses summit hopes

MADRID/LONDON: Spain showed on Thursday that it can still access the credit markets at an affordable but rising cost against a backdrop of feverish behind-the-scenes planning for a likely European rescue of its debt-stricken banks.

Andrew Tyrie urges IMF to lead the fight against the eurozone 'fire', sees Greek exit from euro

The International Monetary Fund must take decisive control of the eurozone crisis or risk a “global economic fire”, Andrew Tyrie, the chairman of the Commons Treasury Select Committee, has warned.

G-7: We're watching Europe's debt crisis

NEW YORK (CNNMoney) -- Finance ministers from the world's seven largest economies held a conference call Tuesday about the ongoing European sovereign debt crisis, but did not announce any new rescue measures.

Closures, shortages loom as insurers exit Greece

ATHENS: Faced with the prospect of closing his family business and looking for work in Greece's sickly economy at the age of 65, Alkis Iliadis bemoans a decision by trade insurers to stop covering exports to his debt-choked country.

Spain's manufacturing sector sees contraction worsen

The rate of contraction in Spain's manufacturing sector was worse than that of Greece in May, according to a business survey. Markit's eurozone manufacturing purchasing managers' index for the whole eurozone dropped to 45.1 from 45.9 in April.

Eurozone unemployment at record high 11%

NEW YORK (CNNMoney) -- The 17-nation eurozone's unemployment rate reached the highest level since the creation of the common currency 13 years ago, climbing to 11% in April as employers slashed 110,000 jobs.

Spain's Leader Faces Doubts At 'Extreme Crunch Time'

MADRID—Six months after Prime Minister Mariano Rajoy won a parliamentary majority by promising to bring credibility and stability back to fiscally troubled Spain, doubts are growing over when and whether it's happening.

U.S. Steps Up Pressure on Europe to Resolve Euro Crisis

PARIS — President Barack Obama is putting increasing pressure on European officials to resolve the euro crisis, talking with the leaders of Germany, France and Italy to help lay the groundwork for action before a Group of 20 summit meeting to be held in June in Mexico.

French jobless claims hit highest this century

PARIS (Reuters) - France had more jobseekers in April than any time this century as numbers rose for the twelfth month running, and the labor ministry said it was braced for more layoffs in the months ahead.

Greek euro exit would halve incomes, report warns

ATHENS, Greece - Greece's biggest bank says that if the country exits the euro currency bloc the effect on the nation's populace would be dramatic.

Giant Lender in Spain Asks for Billions to Fend Off Collapse

MADRID — Spain’s banking crisis worsened Friday as the board of Bankia, the country’s biggest mortgage lender, warned that it would need an additional 19 billion euros ($23.88 billion), far beyond what the government estimated when it seized the bank and its portfolio of delinquent real estate loans earlier this month.

Euro Zone Crisis To Hit Colombia, Chile; Won't Derail Growth

PARIS -(Dow Jones)- Chilean finance minister Felipe Larrain said Thursday his country will be hit by the euro-zone crisis in the coming months, though not strongly enough to derail economic growth.

Crisis clouds gather over German economy

FRANKFURT: Exports and consumer demand are cushioning Germany against recession, data showed on Thursday, but crisis clouds are gathering over Europe's biggest economy as business confidence falls sharply.

European business activity falls to near three-year low

Activity at European businesses hit a near three-year low in May, according to a survey by Markit. Its index, based on a survey of purchasing managers in the manufacturing and service sector, fell to 45.9 in May, a 35-month low.

Eurozone crisis: Germany and France clash over eurobonds at summit

European leaders were locked in deep divisions over the future of Greece and the single currency, with Germany and France at loggerheads for the first time in 30 months over how to restore confidence in the euro.

Germany insists no eurobonds to solve debt crisis

BERLIN: Germany has again made clear its opposition to French proposals for jointly-issued bonds from the 17-nation eurozone as a way to create economic growth and ease the region's financial crisis.

Greeks fearful of euro exit as crisis gathers

THENS: Greeks fear that if their country is forced out of the eurozone, and much of the speculation is that it will be, then they will face soaring prices with the return to a drachma which must fall sharply.

A War of Words Over the Euro Crisis

BERLIN — A telephone conversation on Friday between Germany’s chancellor and Greece’s president became the latest flashpoint in the war of words between Berlin and Athens in the unfolding crisis over Greece’s membership in the euro.

Greek euro exit could throw UK 'into long-term recession'

Greece leaving the euro could plunge Britain into a recession that would cause lasting damage to the economy, the chair of the Office for Budget Responsibility, Robert Chote, has said.

Greece downgraded deeper into junk

NEW YORK (CNNMoney) -- The credit rating on Greece's government debt was downgraded deeper into junk bond territory on Thursday.

Euro Crisis Is Still US Regional Banks Best M&A Target

NEW YORK (TheStreet) -- The euro zone crisis may be the best opportunity for U.S. regional banks to grow the top and bottom line that's come around in a while.

Euro zone risks spark broad-based selloff

LONDON: Uncertainty over the impact of a potential Greek exit from the euro drove a rush to safety by investors on Monday, sending the single currency and European shares down to near four-month lows.

ECB's Patrick Honohan says Greek euro exit would not be 'fatal'

A Greek exit from the eurozone would damage confidence in the single currency bloc but not necessarily be fatal, Irish central bank chief and European Central Bank policymaker Patrick Honohan said on Saturday.

Spain forces banks to set aside €30bn

Madrid, Spain (TOE) - The Spanish government has announced a new set of financial reforms, particularly aimed at cleaning up country's banking system infested with bad loans.

Spain, Portugal want more European investment help

LISBON, Portugal (AP) — The leaders of Spain and Portugal said Wednesday they want the European Investment Bank to play a bigger role in generating economic growth on the continent by financing more business projects.

Stocks: Investors unnerved by Greece

NEW YORK (CNNMoney) -- U.S. stocks were set to open lower Tuesday as Greece's uncertain political situation keeps investors on edge.

Challenge to Austerity, And Germany, Is Sharpened

BERLIN—Europe's voters delivered another rebuke to their leaders Sunday for failing to overcome a debt crisis that has thrust much of the region into an economic tailspin.

Markets braced for shift away from austerity as Francois Hollande wins French election

Financial markets are braced for a radical shift in economic policy and fresh question marks over a eurozone break-up, as Francois Hollande moves into the Elysee Palace on Monday as the first Socialist president of France for 30 years.

Euro Drops as Slowing Growth and Elections Damp Demand

The euro slid versus the dollar by the most in almost a month and reached an 11-week low against the yen after further slowing in the region’s economies and before national elections that may result in leadership changes.

Analysis: Greek election set to rock shaky euro zone

(Reuters) - Overshadowed by the prospect of a Socialist win in France's presidential vote, the parliamentary election in Greece on Sunday carries far greater risks for the euro zone.

Eurozone jobless rate hits record high

Unemployment in the eurozone reached a record high again in March as spending cuts continued to hit the working population.

Portugal Commits to Budget Cuts

LISBON—Portugal's government Monday approved a strategic budget plan for the next four years, which includes spending limits and, as expected, commits to stringent budget deficit targets for next year.

UK at risk of longer slump as euro crisis hits factories

British manufacturing output barely grew at all in April as an economic slowdown in the euro zone curbed demand for goods made in Britain, a survey showed on Tuesday, raising the risk of a longer recession.

Spain in recession as austerity bites deep

MADRID (Reuters) - Spain sank into recession in the first quarter and economists said spending cuts aimed at meeting strict EU deficit limits, together with a reeling bank sector, would delay any return to growth until late this year or beyond.

UK's Cameron says euro zone crisis far from over

LONDON: British Prime Minister David Cameron said the euro zone debt crisis was less than halfway through, and raised doubts about the future of the single currency in an interview on Sunday.

EU, IMF: Ireland on track with deficit cuts

DUBLIN (AP) — Ireland is successfully cutting its deficits, bolstering its banks and pursuing job-creation strategies, its international bailout creditors said Thursday as they signaled support for a further round of loans.

UK double-dip recession to drag on into summer, economists warn

Britain's collapse back into recession will drag on until June at the earliest and condemn the country to another lost year, economists have warned.

Corrected: In austere times, EU to discuss 6.8 percent budget rise

(Reuters) - The European Commission will risk accusations of double standards on Wednesday when it proposes a 6.8 percent increase in the European Union's budget next year despite calls for fiscal discipline across the bloc.

Dutch opposition rejects budget cuts, crisis deepens

(Reuters) - The biggest Dutch opposition parties refused on Tuesday to back austerity cuts needed to meet EU budget targets after the government fell, deepening the crisis in a nation probably facing a long period of uncertainty until elections.

Euro slammed by poor data, European political risks

NEW YORK (Reuters) - The euro slid against the dollar on Monday after two days of gains, rattled by poor euro zone data and concerns that the region's debt crisis could spread to other healthier European nations after Dutch officials failed to agree on budget cuts.

Canada rate hikes predicted despite tame inflation

OTTAWA (Reuters) - A drop in Canada's year-on-year inflation rate to an 18-month low in March will not delay interest rate hikes by the Bank of Canada, which is paying closer attention to economic growth, analysts said on Friday.

France Dispels Downgrade Talk

PARIS—France hasn't been notified of any potential sovereign-rating downgrade, French government officials said Thursday.

Spain bond auction sees strong demand

There was relief at the result of Spain's bond auction on Thursday, in which there was strong demand, even though some borrowing costs rose.

Greece May Delay Banks Plan

ATHENS—Greece's government is likely to push back final decisions on a much-awaited plan to recapitalize the nation's banks until after May 6 elections, senior government officials said Wednesday, as it wrestles with the thorny issue of how to rescue the country's mortally wounded lenders.

Euro crisis could destroy European Union: George Soros

COPENHAGEN: Billionaire George Soros warned on Monday that the euro crisis is growing deeper, tearing at the fabric of European Union cohesion, because policymakers are prescribing the wrong remedies.

Eurozone needs a growth strategy, not more austerity

Since last November, the European Central Bank, under its new president, Mario Draghi, has reduced its policy rates and undertaken two injections of more than €1tn (£825bn) of liquidity into the eurozone banking system.

Euro Crisis 2012: Spain Edition

For much of the past two years, Spain and Italy have swapped the inglorious title of Biggest Euro-Zone Worry.The latest round has gone to Spain.

UK trade deficit widens as exports slip

Economists said figures from the Office for National Statistics (ONS) suggested the economy failed to achieve any growth in the first three months of the year, when the trade deficit on goods and services rose to £3.4bn in February from £2.5bn – far worse than forecasts of an improvement to £2bn.

Spain urges prudence in comments on economy, reforms praised

Spain urged its EU peers to be "prudent" when making comments about its economic woes on Wednesday following criticism from France and Italy, even as it got praise for its reforms from across the bloc.

European stock markets rocked by panic selling as debt crisis reignites

Europe's sovereign debt crisis exploded back into life on Tuesday, with markets across the continent rocked by a wave of panic selling amid renewed fears about the impact of savage austerity measures in Spain and Italy.

Spain 'headed towards' 2013 financial crunch

Spain, sucked back into the centre of the eurozone debt crisis, is headed towards a financial crunch in 2013 that may force it to seek international help, analysts warn.

Euro crisis fears leave world's richest poorer by $9 bn

NEW YORK: The 20 wealthiest people on Earth lost a combined $9.1 billion this week as renewed concerns that Europe's debt crisis might worsen drove the Standard & Poor's 500 Index to its largest decline of 2012.

Euro zone economy sinks, U.S. service growth slows

LONDON/WASHINGTON (Reuters) - Euro zone businesses floundered in March and growth cooled in the service sectors of the United States and India, taking some steam out of the global economy.

Greek Economy To Shrink At Least 5% In 2012, Says Think Tank

ATHENS -- Greece may be bracing for a recession far worse than the official forecast, a Greek think tank said Monday, with the contraction expected at 5% or more in 2012.

Spain heading for highest debt level in 22 years

MADRID: Spain's public debt will jump to its highest level since at least 1990 this year as the economy sinks into recession, the government said in its budget on Tuesday, worrying investors who sold Spanish bonds.

Euro Leaders Seek Global Help After Firewall Boosted

Efforts to resolve the two-year-old European debt crisis swung back to world leaders after euro-area policy makers boosted a firewall designed to overcome doubts about their crisis response and to lure additional emergency aid.

U.S. Economy Will Trump Europe In 2012

If there’s one good thing that’s come out of the European debt crisis it’s that the U.S. has been able to shield itself from much of the mess.

Euro zone agrees 800 billion euro firewall: Austria

COPENHAGEN (Reuters) - Euro zone finance ministers have agreed to boost the currency bloc's debt crisis firewall to roughly 800 billion euros ($1.06 trillion), Austrian Finance Minister Maria Fekter said on Friday.

Spain announces 'extraordinary' €27bn budget cuts

Prime minister Mariano Rajoy's conservative government announced Spain's most austere budget for more than three decades – the day after a million protesters took to Spanish streets.

Spain braces for nationwide general strike

Madrid, Spain (TOE) - Spanish trade unions are holding a general strike a day before the Prime Minister Mariano Rajoy announces new austerity budget to meet strict guidelines set by Eurozone leaders.

Euro zone debt crisis not over despite calmer financial markets: OECD

BRUSSELS: The euro zone's public debt crisis is not over despite calmer financial markets this year, the OECD said on Tuesday, with a warning that the bloc's banks remain weak, debt levels are still rising and fiscal targets are far from assured.

Euro-Area Ministers to Decide This Week on Future of Firewall

Euro-area finance ministers will meet in Copenhagen on March 30 to weigh whether to expand the 17-nation region’s financial crisis firewall. At stake is the future of the region’s two rescue funds, the temporary European Financial Stability Facility and its permanent successor, the European Stability Mechanism.

Euro zone to bolster firewall; Spain concerns grow

BRUSSELS: Euro zone finance ministers are ready to sign off on an increase in the region's financial firewall this week, with concerns about Spain's fiscal position banishing any complacency that the currency bloc's debt crisis is a thing of the past.

Republic of Ireland falls back into recession

The Republic of Ireland fell back into recession in the last three months of 2011, official figures have shown.

Geithner Says Euro Crisis Economies Have Made Progress

WASHINGTON -- Treasury Secretary Timothy Geithner Monday said Europe's financial crisis has already caused significant damage to the U.S. recovery, and urged the continent's leaders to take further steps to shore up their economies.

Greek Parliament Approves Second Bailout

ATHENS—Greece's Parliament approved a new international bailout deal, which will see the crisis-hit country receive an additional €172 billion ($227 billion) in rescue loans, setting the stage for a round of harsh measures that the country's international creditors have set as a precondition for the funds.

Italy's Monti faces vital test on labor reform

ROME (Reuters) - Prime Minister Mario Monti began a final push on Tuesday to forge a deal with trade unions on labor reform that is a crucial test of his ability to revive Italy's chronically uncompetitive economy.

Euro-crisis dilemma: austerity vs. stimulus

LONDON (MarketWatch) — Spanish Prime Minister Mariano Rajoy has reopened a debate as old as the euro crisis or, indeed, debt crises themselves: Cut spending to reduce public deficits or spend to stimulate growth.

IMF warns date for passing quota reforms nearing

WASHINGTON: The International Monetary Fund on Friday warned that endorsements of its 2010 plan to double its resources remain far shy of what is necessary for approval.

UK looks set to avoid double-dip recession … with debt-fuelled recovery

Wage inflation (excluding bonuses) is running at an annual rate of 1.7% – price inflation is almost double at 3.6%.

Germany to Europe: Don't criticize us on eurocrisis leadership

The euro crisis: It sounds like an arcane finance story. But as Germany sets the tone and the rules, the crisis has great meaning for Europe's future.

UK unemployment rises by 28,000 to 2.67m, ONS reports

UK unemployment rose by 28,000 to 2.67 million during the three months to January, with the unemployment rate at 8.4%, according to figures from the Office for National Statistics (ONS).

EU bars Hungary's 2013 aid funds, may reconsider in June

BRUSSELS/BUDAPEST (Reuters) - EU finance ministers suspended on Tuesday Hungary's access to half a billion euros in aid from next year for failing to keep its budget in check, but told Budapest it could escape the sanctions if it takes remedial fiscal action by June.

After Greek Default, Spain And Portugal Pose Major Risk

Markets have begun digesting Greece’s managed default, with the Hellenic Republic’s new bonds trading at distressed levels.

Greece Deal Triggers $3B in Default Swaps: ISDA

A committee of credit-default swaps traders will expedite an auction to settle about $3 billion of contracts tied to Greece after the nation took steps to force investors to participate in the biggest sovereign-debt restructuring in history.

Greek bailout gives Europe time to build defenses

WASHINGTON: Greece got the rescue. But it's the rest of Europe that's breathing easier. A $172 billion ((euro) 130 billion) bailout isn't likely to keep Greece from eventually defaulting on its debts and abandoning the euro, many economists say.

Analysis: Question of balance as euro zone crisis mutates

LONDON (Reuters) - With Greece's second bailout seemingly in the bag at last, Spain is shaping up as the next big test of whether euro zone policymakers can keep striking the right balance between carrot and stick to reconcile the very different interests of lenders, debtors and markets.

European Stocks Gain Before Greek Debt-Swap Deadline; EADS Rises on Payout

European stocks rose for a second day as Japan’s economy shrank less than the government initially estimated and a deadline on Greece’s debt swap approached. Asian shares and U.S. index futures gained.

Carefully Orchestrated Moves Set Stage for Greek Debt Deal

LONDON—Greece is unlikely to get all of its bondholders to agree willingly to a debt-restructuring plan before a Thursday deadline, but it repeated Tuesday that it is ready to force the deal through by other means.

Analysis: Out of intensive care, Europe risks chronic illness

(Reuters) - The euro zone is out of the emergency ward, but it may face a chronic debilitating illness rather than a rapid convalescence.

Spain planning to breach EU budget targets, warns prime minister Mariano Rajoy

Mariano Rajoy, prime minister of Spain, said the budget deficit would be 5.8pc of GDP in 2012 - more than 30pc higher than the 4.4pc target agreed by Brussels.

Euro Declines After ECB Approves Record Loans; Dollar Gains Versus Yen

The euro fell against most of its major counterparts after a liquidity injection by the European Central Bank failed to convince investors that the region’s crisis is abating.

Eurozone unemployment continues to rise

The unemployment rate in the eurozone continued to rise in January, hitting another record high.

EU says Ireland may need to revise budget

(Reuters) - Ireland may need to make further changes to its budget this year if the economy continues to deteriorate, the European Commission said on Wednesday in a draft of a report obtained by Reuters.

S&P declares Greek 'selective default' after bailout

Rating agency Standard & Poor's has classified Greek debt as in "selective default" following the deal it made with creditors to reduce its debts.

For Spain, an Economic Lifeline from China

With an unemployment rate of 22.8 percent, the euro zone’s highest, Spain appears to be spiraling back into recession. Yet the Cobo Calleja industrial park 15 miles south of central Madrid shows few signs of economic distress.

European Union firewall decision 'in course of March': Germany

MEXICO CITY: Europe will decide whether to bolster its firewall against the debt crisis "in the course of March," Germany's finance minister said Sunday, appearing to downplay the chances of a result at an upcoming EU summit.

Greece passes private creditor debt deal

ATHENS: The Greek parliament approved Thursday a law on a historic 107-billion-euro debt writedown with private creditors, a key element in a new eurozone bailout designed to avoid default.

Swedish firms want to adopt the euro

Swedish companies, relatively unscathed by the European debt crisis, dislike the Swedish economic model's inertia, want reforms to boost their competitiveness, and want to adopt the euro, their representatives say.

Battle over EU financial firewall threatens to derail Greek bailout

At a G20 summit in Mexico in two days the EU will plead for increased IMF contributions by non-euro countries to help shore up a eurozone "financial firewall" seen as vital to protecting Spain and Italy from Greek debt contagion.

European stocks rise on Greek bailout hopes

European stock markets rose on Monday on growing signs that a new bailout for Greece could be finalised at last while sentiment got a boost by the latest Chinese move to ease credit.

Euro-Zone Crisis Forces Regional Markets To Expand

The euro-zone debt crisis may be squeezing capital out of emerging economies, but it is also cultivating much-needed regional depth in developing countries’ financial markets, says Lars Thunell, head of the World Bank’s International Finance Corp.

ECB considers losses on Greek bonds held by national banks

(Reuters) - The European Central Bank is weighing up whether to allow the Greek bonds held in national euro zone central banks' investment portfolios to be subjected to the same writedowns private investors are set to take, central bank sources told Reuters.

2012 will be a worse year for equities than 2011: Jim Walker

MUMBAI: Warning that negative signs persist in the global economy, Jim Walker, Founder of Asianomics on Tuesday said that he could see a re-run of the beginning of 2008 financial crisis.

Spain approves labor reforms to boost sick economy

MADRID (AP) — Spain’s new conservative government approved sweeping labor market reforms Friday as part of a drive to revive a sick economy and solve Europe’s worst unemployment nightmare — a jobless rate of nearly 23 percent.

Moody's Issues Credit Warnings To 9 European Countries, Austria, France and U.K. Among Them

Britain's AAA credit rating was thrown into doubt after the ratings agency Moody's said the ongoing euro crisis and a credit squeeze on the banking sector put the country at a higher risk of defaulting on its debts.Moody's credit agency has cut the credit ratings of nine European countries including the U.K.

Greece still to convince Europe over rescue deal

(Reuters) - Europe gave Greece until Wednesday to convince skeptical international creditors that it would stick to the punishing terms of a multi-billion-euro rescue package, endorsed by parliament as rioters torched downtown Athens.

Wayne Swan Says Global Slowdown Affecting Australian Economy

Feb. 13 (Bloomberg) -- Australia’s economy, buoyed by demand from China for iron ore and coal, is feeling the impact of a global slowdown as employers defer hiring new workers on European uncertainty, Treasurer Wayne Swan said.

Obama to meet Italian PM on euro crisis

WASHINGTON: Barack Obama turns his focus Thursday to a crisis that could conceivably end his presidency, but over which he has little control, welcoming Italy's Prime Minister Mario Monti for Europe debt talks.

Euro debt crisis weighs on insurers' 2011

LONDON (Reuters) - Near-record catastrophe claims, the euro zone debt crisis and low interest rates are likely to result in mostly weaker 2011 profits for European insurers.

Greek Premier Seeks Rescue Consensus Amid Political Quarrels

Feb. 8 (Bloomberg) -- Greek Prime Minister Lucas Papademos is set to negotiate with leaders of the political parties supporting his caretaker government after he missed another deadline to secure a second aid package.

Swiss risk deflation if euro crisis worsens: Jordan

GENEVA/ZURICH (Reuters) - The Swiss National Bank fears that an escalation of the euro zone's debt crisis could prompt deflation, Thomas Jordan said in his first speech since becoming interim chairman of the central bank, stressing his determination to keep a lid on the franc.

UK's Hague: Euro-Zone Debt Crisis Biggest Threat To UK

LONDON – The ongoing sovereign debt crisis in the euro zone is the biggest threat to U.K. prosperity, U.K. foreign minister William Hague said Monday.

Greece crisis talks over EU bailout to resume

Party leaders in Greece's governing coalition are to resume crisis talks on backing a 130bn-euro (£108bn; $171bn) European Union rescue plan.

Markets warm to European debt, Portugal pressure eases

(Reuters) - Cautious optimism that the euro zone crisis may be turning a corner fuelled demand for European government debt on Wednesday, easing pressure on Portugal, seen as the most vulnerable country after Greece.

Monti Says Overhauling Italy’s Firing Rules Can’t Be ‘Taboo’

Feb. 2 (Bloomberg) -- Italy’s rigid firing rules can hurt economic growth and changing them to make it easier for companies to shed workers can’t be “taboo,” Prime Minister Mario Monti said.

Euro-Zone Banks To Tighten Credit Conditions Further In 1Q

FRANKFURT -- Euro-zone banks expect to tighten credit conditions further in the first quarter on top of a surge in tightening already in the fourth quarter of last year as a result of the deepening sovereign debt crisis, while they see their wholesale funding conditions easing somewhat due to the European Central Bank's non-standard measures, the ECB said Wednesday.

Euro jobs crisis puts Germany at core of growth debate

LONDON (Reuters) - The euro zone creaked under the weight of record unemployment at the end of 2011 while jobless rates in Germany fell to historic lows, putting the onus firmly on Europe's top economy to take the lead in steering the struggling region back to recovery.

Eurozone leaders sign up to budget controls

European leaders agreed on a permanent rescue fund for the eurozone, and 25 out of 27 EU states backed a fiscal pact for stricter budget discipline in the eurozone, while a deal on Greek debt is expected in "days".

Greece and the euro

THE banners at the entrance to the Bank of Greece museum in Athens promise a “fascinating journey through Greece’s modern economic and monetary history”.

Euro-Zone Crisis Continues To Drive Global Credit Outlook

LONDON -- Fitch Ratings said Thursday that negative rating outlooks on global corporates are rising as an effect of the intensification of the euro-zone crisis in the second half of 2011.

Swedish Opposition Rejects EU Pact

STOCKHOLM—Sweden's largest opposition party has come out against signing up to the latest version of the European Union's fiscal pact, suggesting Prime Minister Fredrik Reinfeldt's minority government is facing a struggle if it wants to win enough lawmaker support for the country to join.

IMF slashes world growth outlook as euro zone weighs

WASHINGTON — The euro zone debt crisis is escalating and dragging down the world economy, the International Monetary Fund said on Tuesday, as it sharply cut its outlook for global growth and called for policies to restore confidence.

Hungary PM backs down, seeks fast aid deal

(Reuters) - Hungarian Prime Minister Viktor Orban gave the first concrete evidence on Friday that he is backing down in a dispute with the European Union, aiming to free up talks on aid needed to prop up its battered financial markets.

Europe’s ESM Foresees Bond Clauses, IMF Restructuring Standards

Jan. 20 (Bloomberg) -- Europe’s planned permanent rescue fund may require clauses in new bond issues that would leave the door open for debt restructurings, while deeming writeoffs “exceptional” and subject to International Monetary Fund standards, according to a draft text.

Relief in Spain, tension in Greece for euro zone

(Reuters) - The embattled euro zone cleared a major funding test on Thursday when Spain romped through a key bond sale, while signs pointed to only a mild recession for the 17-nation bloc.

UK faces request for £19bn as IMF boosts bailout fund to $1tn

The government has said it will demand improvements in European Union efforts to sort out its currency before it can agree to an imminent request from the International Monetary Fund for extra UK funds that is likely to be as high as £19bn.

Exodus of Workers From Continent Reverses Old Patterns

Soon after Spain's real-estate bust put Andrés Velarde and María Palencia out of work, the young architects gathered their drafting materials and moved 5,000 miles to Brazil—drawn by a hope, but no promise, of employment.

Germany rejects rescue fund boost, Greece under pressure

(Reuters) - Germany, the only major euro zone member to retain a top-notch credit rating, refused on Monday to consider boosting the bloc's rescue fund, while Greece was under pressure to urgently break a deadlock in debt swap talks if it is to avoid an unruly default.

Euro crisis deepens as ratings agency strikes

The eurozone economy plunged back into crisis as France and Austria were stripped of their top triple-A credit ratings and Standard and Poor's downgraded a swathe of debt-laden EU members.

Economy’s Crisis Respite Gives ECB Room to Pause Rate Cuts

Jan. 12 (Bloomberg) -- The European economy may be winning some respite from its sovereign debt crisis.

Mafia now "Italy's No.1 bank" as crisis bites: report

ROME (Reuters) - Organized crime has tightened its grip on the Italian economy during the economic crisis, making the Mafia the country's biggest "bank" and squeezing the life out of thousands of small firms, according to a report on Tuesday.

Analysis: For euro zone, the heat is on again

BERLIN (Reuters) - The euro zone crisis seemed to vanish from the headlines for a brief moment as 2011 ticked over into 2012, but it is about to return with a vengeance.

European crisis more dangerous than 2008 financial crisis: George Soros

BANGALORE: Europe's debt crisis is more dangerous than the 2008 global financial crisis, billionaire investor George Soros said.

UK’s Cameron vows to block EU-wide financial tax

Britain is once again on a collision course with its EU partners France and Germany.

Eurozone unemployment stays at record high

Unemployment in the eurozone stayed at a record high in November as the impact of the sovereign debt crisis rumbled on, according to official figures.

Iran nuclear crisis: EU moves towards crude oil ban

EU member states have agreed in principle to ban imports of Iranian crude oil to put pressure on the country over its nuclear programme.

Greece: Clinch bailout or face euro exit

(Reuters) - Greece will have to leave the euro zone if it fails to clinch a deal on a second, 130 billion euro bailout with its international lenders, a government spokesman said on Tuesday.

Dollar Falls as Signs of Manufacturing Growth Damp Safety Demand

Jan. 3 (Bloomberg) -- The dollar fell the most in two weeks against the euro as signs that manufacturing is expanding in the U.S. and China damped demand for haven assets.

Spain public deficit may top 8 percent: minister

MADRID (Reuters) - Spain's public deficit for 2011 may be higherthan the 8 percent of GDP forecast by the new government, the economy minister said Monday, fuelling fears the country faces a prolonged period of tight budgets and economic contraction.

Euro’s First Back-to-Back Losses Since 2001 Cap Debt-Crisis Year

Dec. 31 (Bloomberg) -- The euro had a second consecutive annual loss against the dollar for the first time in a decade as rising yields on the region’s sovereign debt reflected speculation about defaults and stalling economic growth.