Euro Still Vulnerable Despite Rising Against Dollar

The euro rose broadly on Monday, as euro zone banks repatriated foreign-held assets before year-end and after the European Central Bank chief said there was no urgent need to cut interest rates.

EU's Herman Van Rompuy sees European economic revival in 2014

BRUSSELS: European Council president Herman Van Rompuy on Sunday forecast an economic upswing for Europe in 2014 in an interview with a Flemish-speaking broascaster.

Euro hits two-year high as banks shore up balance sheets

LONDON, Dec 27 (Reuters) - The euro jumped to its strongest level against the dollar in more than two years on Friday as banks adjusted positions for the year end.

France jobless rise despite President Francois Hollande's vow to buck trend

PARIS: France's number of registered jobseekers rose by 17,800 in November to 3.29 million, the labour ministry said Thursday, challenging government claims to have bucked a trend of spiralling unemployment.

Euro Outlook For 2014 Looks Rosier as Central Bank Lends its Support

The Euro finished strongly into the end of the year, ringing in as a top-performing G10 currency in Q4 and for all of 2013. Many factors changed that initially had the Euro looking lower in 2013.

Fidelity to Amundi Seek Euro Shelter as Treasuries Swoon

Bond investors seeking to avoid the first successive losses on Treasuries in at least 35 years are finding shelter in Europe.

Euro needs ground-up reform before any United States of Europe

The European Union has earned its place as an instrument for peace in Europe. Free trade has brought prosperity to its peoples, and the freedom to choose a place of residence guards against the resurgence of totalitarian regimes.

Italian, Spanish bond yields rise on talk local banks may sell

LONDON, Dec 23 (Reuters) - Spanish and Italian bond yields rose on Monday amid speculation that banks in both countries may reduce their holdings before the European Central Bank reviews their balance sheets next year.

Recession-hit Spain holds huge Christmas lottery

MADRID (AP) — Champagne corks popped around Spain on Sunday as jubilant winners celebrated scooping up prizes in the country's famed Christmas lottery, the world's richest.

EU loses AAA rating in S&P downgrade

Credit rating agency Standard & Poor's incited the ire of European Union officials on Friday when it snatched away the region's top AAA rating, citing tensions between member states and a deterioration in their overall financial health.

EU Parliament head Martin Schulz warns of tough talks on banking union

BRUSSELS: European Parliament head Martin Schulz warned Thursday that EU leaders face "very long negotiations" with lawmakers over a new bank regulatory system which many of them believe falls well short of what it should be.

France on edge of return to recession, increasing pressure on Hollande

François Hollande's beleaguered socialist government was under increased pressure to boost the eurozone's second largest economy after a collapse in manufacturing orders tonight left it on the cusp of another recession.

Euro-Area Factory Output Expands Faster Than Forecast: Economy

Euro-area factory output grew at a faster pace than economists forecast in December, led by Germany, as the currency bloc continued its gradual recovery from a record-long recession.

Euro zone to share costs of bank closures gradually: Proposal

BRUSSELS: The cost of closing down a euro zone bank will initially be borne almost fully by its home country, but the obligations of euro zone partners will gradually rise to be shared equitably after 10 years, under the terms of an EU proposal seen by Reuters on Saturday.

In landmark for EU, Ireland leaves its bailout behind

DUBLIN, Dec 13 (Reuters) - Three years after going cap in hand to international lenders to avert bankruptcy, Ireland has officially ended its bailout in a landmark for the euro zone's efforts to resolve its debt crisis.

Euro zone employment shows no change in third quarter

BRUSSELS (Reuters) - The number of people with jobs in the euro zone was unchanged for the second consecutive quarter in the three months to September, showing the bloc's economic recovery has not yet filtered through to the labour market.

Eurozone industrial output in surprise slump

LONDON (AP) -- Industrial production across the 17 European Union countries that use the euro unexpectedly slumped in October, official figures showed Wednesday, in another sign that the region's recession is getting worse and weighing on big economies like Germany.

Euro coins a hit with Latvians ahead of eurozone entry

Riga (AFP) - Latvians queued up Tuesday to be among the first to get their hands on the euro coins that will replace the Baltic state's lats currency on January 1.

EU raps new member Croatia over deficit, debt

BRUSSELS: The European Commission said Tuesday new EU member Croatia is in breach of rules on the public deficit and debt and will have to take measures to remedy the problem.

Exclusive: Euro zone bailout fund should be allowed to help close failing banks - document

BRUSSELS (Reuters) - The euro zone's bailout fund should be allowed to lend to help finance the closure of banks in the bloc, a proposal prepared for euro zone finance ministers showed on Monday.

Expelling Silvio Berlusconi Won't Boost Italy's Stagnant Economy

On November 27th the Italian Senate expelled the three-time former Prime Minister Silvio Berlusconi, following his conviction for tax fraud, and in doing so deprived him of parliamentary immunity.

Greece passes 2014 budget

ATHENS, Greece (AP) — Greek lawmakers passed the government’s 2014 budget, which forecasts a return to growth after six consecutive years of deep recession, early Sunday.

Euro Hits December Highs as ECB Downplays Policy Pivot

The European Central Bank left its monetary policy firmly on hold today, offering a change in neither the key benchmark interest rate nor the deposit facility rate.

Spain borrowing costs fall after Moody's raises outlook

The Spanish Treasury sold 3.524 billion euros ($4.8 billion) in bonds of three and five years, with demand outstripping demand by a ratio of 2.7 to one, the central bank said.

Euro zone likely to backstop banks with promises rather than cash

BRUSSELS (Reuters) - Euro zone governments have set aside almost no money to make good on their promise to recapitalise ailing banks after a health check next year.

House building drives surge in UK construction activity

Britain's construction sector has enjoyed its strongest pick-up in business since before the financial crisis plunged the industry deep into recession, according to the latest in a string of upbeat economic reports.

Ukraine looks to China for money as debt crunch looms

(Reuters) - Ukrainian President Viktor Yanukovich will head to China on Tuesday looking for loans and investment, despite the massive protests unleashed by his decision not to sign a trade pact with the European Union.

Euro still at risk without closer union - Italy central bank head

MILAN (Reuters) - The European single currency will remain at risk if Europe is not able press ahead with closer political and economic union, the governor of the Bank of Italy said in an interview published on Sunday.

Euro zone has long way to go in climb out of crisis: ECB's Mersch

(Reuters) - The euro zone is early on its climb out of economic crisis but it is on the right track, ECB Executive Board member Yves Mersch said on Friday.

Euro Zone Inflation Rises to 0.9% as Jobless Rate Dips to 12.1%

FRANKFURT — The euro zone reached another milestone in its stumbling recovery Friday when the official unemployment rate fell for the first time since 2011.

ECB supervisor promises to come clean on banks' health

(Reuters) - The euro zone's future bank supervisor on Wednesday promised a warts-and-all probe into the bloc's still fragile financial system, conceding that she and other supervisors had made mistakes in the past.

Ukraine Needs Russia Resolution Before EU Deal, Yanukovych Says

Ukraine needs to resolve issues plaguing its relationship with Russia before it can sign a free-trade agreement with the European Union, President Viktor Yanukovych said as he prepared to attend the bloc’s summit.

Euro Makes It Harder for Countries to Adjust Imbalances

Germany’s central bank has weighed in on a thorny topic in Europe: whether the euro has made it harder for countries in the currency to adjust their current account imbalances.

Euro-Adoption Benefits Becoming Fiction, Poland’s Szczurek Says

Benefits to adopting the euro, such as easier access to capital and foreign funding, are becoming “fiction,” Polish Finance Minister nominee Mateusz Szczurek said in an interview with Dziennik Gazeta Prawna.

German parties edge warily towards 'grand coalition' deal

(Reuters) - Angela Merkel's conservatives and the Social Democrats (SPD) head into a decisive week of German coalition talks on track to form a government but under fire from their own members for a series of policy compromises.

France May Slip Back Into Recession

FRANKFURT — Hopes that the euro zone could be emerging from years of torpor suffered another setback on Thursday when an indicator of economic activity in the region slipped unexpectedly and suggested that France could be sliding back into recession.

German Business Confidence Increases as Recovery on Track

German business confidence surged to the highest in more than 1 1/2 years in November, signaling that the economic recovery in Europe’s largest economy remains on track even after growth slowed in the third quarter.

Russia Pulls Biggest Bank License of Year Over Dubious Transfers

Russia’s central bank revoked the license of OAO Master-Bank, a retail lender where President Vladimir Putin’s cousin serves on the board, after accusing it of repeatedly breaching money laundering laws.

Euro-Zone Current Account Surplus Narrows in September

The euro zone's current-account surplus narrowed in September, after increasing in August, data from the European Central Bank showed Monday.

Italy at risk of breaking EU rules, France squeezes through

BRUSSELS (Reuters) - Italy's draft budget plans for 2014 are at risk of breaking European Union rules, while French draft plans barely make it, the European Commission said on Friday.

EU Soothes German Aid Qualms to Agree on ECB Bank-Test Backstops

European Union ministers overcame German unease on direct aid to lenders and agreed on rules for how public funds can be made available for banks shown to have insufficient capital in upcoming balance-sheet checks.

Euro Zone May Not Have Emerged from Recession - CEPR

An influential group of European economists that ascertains periods of expansion and recession said Thursday it remains clear whether the euro zone has emerged from recession, despite the release of figures that showed the currency area's economy grew for a second straight quarter.

Eurozone economic growth slows to 0.1%

The economy of the eurozone grew by just 0.1% in the July-to-September period, down from 0.3% growth in the previous quarter.

ECB’s Weidmann Says Low Interest Rates Come With Risks

European Central Bank Governing Council member Jens Weidmann said low interest rates come with risks that can’t be ignored, even though the current policy stance is appropriate.

EU to hold France, Germany to account in push for growth

Brussels (AFP) - The EU will this week test a new system to ensure states toe economic rules when it decides whether to challenge eurozone giants Germany and France, over their growth and deficit policies.

US, Europe resuming talks on new trade pact

BRUSSELS: The United States and the European Union, which already enjoy the world's biggest business relationship, are resuming talks on a deal to further grow two-way trade and investment.

Is the euro zone at risk of Japan style deflation?

As inflation in the euro zone languishes at its lowest level in four years, some analysts argue that the region is at risk of a Japan-style deflationary rut.

Euro Zone Resolution Plan Should Cover All Banks, ECB Says

FRANKFURT--A planned euro-zone system for handling failing lenders should cover all of the region's banks and be in place by the time the European Central Bank takes up its duties as the region's chief banking policeman, the ECB said Friday.

Germany's trade surplus expands in September, rises to 18.9 billion euros

FRANKFURT: Germany's trade surplus expanded in September as imports fell and exports grew, rising to 18.9 billion euros in September from 15.8 billion in August, data published by the federal statistics office showed Friday.

Euro zone bonds steady as markets look for ECB hints

LONDON, Nov 7 (Reuters) - Euro zone bonds were mostly steady on Thursday with investors wary of making portfolio adjustments before a European Central Bank policy update they will examine for any hints of further monetary easing ahead.

Euro-Area Services Output Expands More Than Estimated

Euro-area services output grew more than initially estimated in October, adding to signs the currency bloc’s economic recovery is gaining momentum.

Euro zone economy turns corner, but growth, inflation subdued: EU executive

(Reuters) - The euro zone economy will expand slightly more slowly next year than previously expected because of weaker private demand and investment and inflation will stay well below the central bank target over the next two years.

Euro Recovers Against Dollar Ahead of ECB Meeting

The euro recovered some of the losses posted overnight against the dollar as trading got underway in Europe Monday, shaking off the dent from dollar strength driven by better-than-expected U.S. economic data and hawkish Federal Reserve comments at the end of last week.

Italy Economy Minister: Bail-In Rules Won't Apply in Short Run

ROME--New European "bail-in" rules for troubled banks won't necessarily apply in the short term, Italian Economy Minister Fabrizio Saccomanni said Wednesday.

Euro Loses Most Since July 2012 on ECB Rate-Cut Bets

The euro slid the most in more than a year versus the dollar as weaker-than-forecast economic data for the currency region fueled speculation the European Central Bank will cut interest rates as soon as at its meeting next week.

Euro Extends Losses On ECB Rate-Cut Speculation

The euro extended its losses against major currencies in Asia on Friday amid growing speculation that the European Central Bank may cut interest rates to stimulate the euro-zone's fragile economy.

'Europe faces deflation threat'

Europe faces a threat of deflation, which it seems unlikely to be willing to fight. Core inflation in the euro zone fell sharply in October to just 0.8 per cent a year, the lowest since early 2010 and a level which sets the red deflation light flashing.

Euro-Area Inflation Cools to Four-Year Low as Unemployment Rises

Euro-area inflation cooled to the slowest in almost four years in October, moving further away from the European Central Bank’s goal.

Euro-Zone Business, Consumer Confidence Rises to Two-Year High

Businesses and consumers in the euro zone were the most optimistic in over two years in October as better economic conditions lifted the mood for the sixth month running.

European banks pay heavy price for scandals

(Reuters) - Four European banks paid a heavy price on Tuesday in a clean-up of the financial industry, with Rabobank fined $1 billion and three other major lenders preparing for possibly huge legal costs after a string of scandals.

Analysis: Convalescent euro zone seeks to escape debt overhang

(Reuters) - As the euro zone's weakest members crawl out of their longest recession in modern history, their prospects of recovery are weighed down by a crushing mountain of debt far heavier than before four years of financial crisis.

Euro zone suffers from integration fatigue

BRUSSELS, Oct 25 (Reuters) - The euro zone is suffering from integration fatigue and banking union might be the last big push for the foreseeable future, officials in the currency bloc say.

Eurozone business growth slows

The pace of growth among businesses in the eurozone eased in October as the service sector slowed, a survey has indicated.

Euro-Zone Consumer Pessimism Lessens

Consumers in the 17 countries that share the euro continued to become less pessimistic in October, a development that is likely to support a continued, if modest, pickup in spending.

Bank of England points to improving economic picture

UK unemployment and economic output are improving at a faster pace than expected, according to Bank of England policymakers.

Germany sees biggest increase in foreigners in 20 years

(Reuters) - The number of foreigners living in Germany rose by 4.1 percent last year, the biggest increase since 1993, driven by an influx of residents from EU members Poland and Hungary, the Statistics Office said on Tuesday.

The Euro May Not Be Doomed, But It Is a Disaster

Has the euro been a disaster, or what?

Europe’s Slow Progress on Banking Reform

The European Union last week moved one step closer to establishing a banking union that could help address problems in its financial system.

Euro-Zone Current-Account Surplus Widened in August

The euro zone's current-account surplus widened in August, after narrowing in July, data from the European Central Bank showed Thursday.

Euro-zone banks face big capital shortfalls after next stress test - survey

LONDON (Reuters) - Investors fear euro-zone banks will have to find tens of billions of euros of new equity next year after another industry health check designed to draw a line under the financial crisis.

UK inflation rate unchanged at 2.7% in September

UK inflation measured by the consumer prices index (CPI) was 2.7% in September, unchanged from August. The retail prices index (RPI) measure of inflation fell slightly to 3.2% from 3.3% in August.

Eurozone industrial output rebounds in August

LONDON: Industrial output across the eurozone rebounded in August, official figures showed Monday, raising hopes that the sector will contribute to a pick-up in economic growth.

Ireland says may not need financing backstop to exit bailout

DUBLIN: Ireland may exit its EU-IMF bailout without requesting a financing backstop from its European partners, its finance minister said on Saturday, a move that would block its access to European Central Bank bond-buying.

Factbox: Europe's slow march to repair its banks

(Reuters) - Euro zone countries are trying to find a way to pay for the repair of their broken banks, testing governments' resolve to come clean on the problems that have festered since the global financial crisis.

Don't blame Europe, stick with reform: Danish PM

COPENHAGEN (Reuters) - Denmark's center-left prime minister, accused by her left-wing parliamentary backers of veering too far to the right, said on Friday the country had got through the worst of its economic crisis and should persevere with unpopular reforms.

Italy may strengthen powers to intervene in economy

ROME (Reuters) - Italy's government will consider measures to extend its powers to intervene in key sectors of the economy, according to the agenda of a cabinet meeting issued on Tuesday that coincides with a spate of cross border takeovers.

UK industrial output in surprise fall

UK industrial production fell unexpectedly in August, showing its biggest decline for nearly a year, according to figures from the Office for National Statistics (ONS).

After Years of Pain, Greece Expects a Budget Surplus

ATHENS — Offering the first real hope that Greece could emerge from a six-year recession, the government on Monday presented a draft budget for next year forecasting a tenuous return to growth.

Inquiry blames Cypriot ex-president for crisis

NICOSIA, Cyprus (AP) -- The "reckless" economic policies of Cyprus' former president are mainly to blame for the financial crisis that brought the country to near bankruptcy, an independent inquiry concluded Monday.

Iceland rises from the ashes of banking collapse

A new mood of proud nationalism is emerging in economically resurgent Iceland after an out-of-control banking system sank the country into financial meltdown exactly five years ago.

Euro zone turns from financial to political crisis

LONDON (MarketWatch) — A political crisis in Italy threatens fresh elections. The Portuguese government takes a hammering at the polls.Austria sees an upsurge in far-right and anti-euro parties. Germany drifts on without a government. Far-right parliamentarians are being arrested in Greece.

Russia services sector posts sluggish growth in September: PMI

MOSCOW: Growth in Russia's services sector slowed slightly in September as new business expanded only modestly and companies became more pessimistic about future orders, a business survey showed on Thursday.

Euro-Zone Business Activity, Retail Sales Rising

The euro zone's return to economic growth appears to be firming, with surveys of purchasing managers showing a sharp pickup in business activity and fresh numbers on retail sales indicating consumer spending is on the rise.

UK construction industry grows for fifth consecutive month

Britain's construction industry maintained its run of strong growth for the fifth month in September, according to the CIPS/Markit survey of purchasing managers in the sector.

Italy's octogenarian president may be called to rescue again

ROME (Reuters) - Italy's 88-year-old president, Giorgio Napolitano, is an unlikely hero, but this week marks the third time in two years that he may be called to the country's rescue.

Eurozone manufacturing growth slips in September

Eurozone and UK manufacturing growth slipped back in September, according to the latest purchasing managers surveys.

Austrian coalition faces far-right challenge in vote

VIENNA (Reuters) - A resurgent right-wing party keen to end taxpayer-funded bailouts of euro zone laggards takes on Austria's political establishment in parliamentary elections on Sunday.

Spain's budget to focus on nascent recovery, reforms

MADRID (Reuters) - Spain will boost economic and job forecasts in the 2014 budget to be presented on Friday, moving away from tough spending cuts and relying instead on lower borrowing costs and momentum from previous reforms to achieve fiscal targets.

Europe's plan to address weak banks risks unraveling

(Reuters) - The European Central Bank's (ECB) plan to test the health of the euro zone's largest lenders without the means to plug any holes it uncovers risks foiling what some see as the bloc's final chance to put its financial crisis behind it.

UK economy grew 0.7 per cent in Q2

LONDON: Britain's economy grew 0.7 percent in the second quarter from the previous three months, in line with forecasts, official data confirmed on Thursday.

German consumer morale hits highest level in 6 years: GfK

BERLIN: German consumer confidence rose to its highest level in six years heading into October, supporting expectations strong consumer spending will help Europe's largest economy to post moderate growth in 2013.

Euro-Area Services Strengthen as Demand Improves

Euro-area services growth accelerated to the fastest in more than two years in September as demand and confidence improved. An index of activity rose to 52.1 from 50.7 in August, London-based Markit Economics said today.

Deep Thoughts by Alexander Mirtchev

Ashby Monk

For a variety of reasons, SWF employees are typically quite reserved and guarded when speaking to the press. Not so for Dr. Alexander Mirtchev, who is the Independent Director and a member of the Board of Directors of Kazakhstan’s $30 billion National Welfare Fund Samruk-Kazyna.

Alexander Mirtchev

EU to change budget calculation to ease austerity

BRUSSELS: European Union finance experts have reached a preliminary agreement on changing the way the bloc determines some deficit figures, which will lessen the pressure for austerity measures in some crisis-hit economies, an EU official said Thursday.

Merkel eyes third term in first German vote since euro crisis

BERLIN (Reuters) - In the first German election since Europe's debt crisis erupted four years ago, voters are likely to give Angela Merkel a third term on Sunday, but may force her into a coalition with her leftist rivals and catapult a new anti-euro party into parliament.

ECB's Asmussen says Ireland should stick to austerity target

DUBLIN (Reuters) - Ireland should not ease up on austerity in its annual budget next month but stick to a target of 3.1 billion euros ($4.2 billion) worth of spending cuts and tax hikes, European Central Bank Executive Board member Joerg Asmussen said on Saturday.

The Economist: “The Fed's have-it-both-ways policy”

R.A., regarding Bernanke’s Jackson Hole speech, your column notes that you “found the tone on monetary policy to be confusing and timid.” Expectations now turn to what President Obama will say next week and what the Fed will do (or not do) when they next meet. Uncertainty again prevails.

Alexander Mirtchev

Euro-Zone Consumer Mood Continues to Lighten

Consumers in the 17 countries that share the euro continued to become less pessimistic in September, but with unemployment still close to record highs and wages growing more slowly than inflation, that is unlikely to herald a sharp pickup in spending.

Euro-Zone Wages Lag Inflation

Workers in some of the euro zone's hardest-hit economies suffered steep falls in pay in real terms in the second quarter, as earnings growth across the 17-nation currency bloc sank to a near three-year low.

Securing global economic security

Inflation is a significant factor of global economic security and has the innate capacity to upend carefully laid plans

Merkel Rejects Joint Euro Debt, Promises to Stay Hard Course

German Chancellor Angela Merkel told supporters she’ll stand as a bulwark against joint debt in the euro area if she’s re-elected in four days and continue to extract conditions from indebted nations.

French public debt to rise to 95.1 pct of GDP by end-2014: Report

PARIS: France's public sector debt will rise to 1.95 trillion euros by the end of 2014, or 95.1 percent of economic output, up from 93.4 percent of GDP this year, a media report said on Monday.

Low wages, the flip-side to Germany's economic miracle

Chancellor Angela Merkel often boasts during the campaign for September 22 elections that Germany has one of Europe's lowest jobless rates -- at around 6.8 per cent.

Euro-Zone Employment Falls Again

The number of people with jobs in the 17 countries that share the euro fell again in the three months to June, as the currency area's economy returned to growth following 18 months of contraction.

Don't quit Europe, businesses tell U.K.

Should Britain quit the European Union? U.K. businesses overwhelmingly say "absolutely not."

Euro zone cannot just hope for further recovery - Coene

BRUSSELS (Reuters) - The euro zone may have come out of recession, but economic growth remains low and further reforms are needed to ensure a recovery fully takes hold, European Central Bank Governing Council member Luc Coene told a newspaper on Saturday.

Eurozone industrial output slumps in July

LONDON: Any hopes that the troubled eurozone economy was poised for a solid rebound from recession were under threat of being dashed Thursday by figures showing the industrial sector sliding into reverse during July.

Italy says economy shrank 0.3 per cent in second quarter

Italy on Tuesday downgraded its estimate for growth in the second quarter, saying the economy shrank by 0.3 percent in April to June instead of 0.2 percent initially calculated.

Bank of France raises growth forecast slightly

PARIS (Reuters) - France should post economic growth of 0.2 percent in the third quarter, the Bank of France said on Monday, revising its forecast up slightly from a first estimate of 0.1 percent.

Spain industrial output falls for 23rd month in July

MADRID (Reuters) - Spain's industrial output fell for the 23rd straight month in July but an economist said he still sees potential for a weak recovery in the recession-hit economy before the end of the year.

Bank of England's Paul Fisher says may hold off on more QE: Report

LONDON: A Bank of England policymaker who has been one of its biggest proponents of more bond buying said in an interview on Sunday that the bank could hold off from pumping more money into the economy if its new forward guidance plan works.

Euro Becoming Haven With Breakup a Memory on Economy: Currencies

The euro is becoming a haven for investors who just three years ago pushed the 17-nation currency union close to breakup.

The Global Inflation Wave: Waiting for Constantine?

Source: The Globalist

Alexander Mirtchev and Norman Bailey,

In the wake of the global economic crisis, the world is trying to chart an economic path to the future and find a "new normal." As Alexander Mirtchev and Norman A. Bailey explain in the first installment in their series "The Search for a New Global Equilibrium," inflation as a factor of global economic security has the innate capacity to upend carefully laid plans and further upset the equilibrium.

ECB 'very cautious' about eurozone recovery

European Central Bank chief Mario Draghi on Thursday sought to temper hopes that the eurozone was about to rebound strongly, insisting that the nascent recovery remains extremely fragile.

Lunch hour in Italy serves up some sour economic lessons

ROME (Reuters) - Of all the statistics available on Italy and its varied economic problems, few are as eye-opening as the fact that at around 1 p.m on any given day, three quarters of the population will normally be sitting down to lunch in their own homes.

Sovereign Debt and Beyond: Toward a New Magna Carta?

Source: The Globalist

Alexander Mirtchev and Norman Bailey

The global debt burden appears to have gathered an unstoppable momentum, prompting divergent reactions. The world economy cannot count on growth to solve the global debt problem — and stimulus measures are not a sustainable solution. In the second installment in the series “The Search for a New Global Equilibrium,” Dr. Alexander Mirtchev and Dr. Norman Bailey explain why the solutions currently being offered are wholly inadequate to the scale of the problem, and argue the time is ripe for a “new Magna Carta” — a redefinition of the social contract among the government, Main Street and Wall Street.

European banks to quit London if UK left EU: Goldman executive

LONDON: European banks would leave London "in very short order" if Britain voted to exit the European Union, a senior Goldman Sachs executive said in a newspaper interview published on Monday.

Will G-20 Counter Power of Uncertainty?

By Alexander Mirtchev 

In 2009, G-20 leaders met in Pittsburgh and emerged with a mandate ‘to be the premier forum for international economic cooperation,' endowing the G-20 with a leading economic role on the global stage. It appeared at the time that the leaders of the G-20 had successfully defeated pessimism. However, the rising tide of global economic turmoil and problems ranging from sovereign indebtedness to consumption and saving imbalances have created a ‘perfect storm' that is far from abating.

Germany's Merkel Taunts Opponents Over Euro Crisis

Chancellor Angela Merkel taunted her election opponent Tuesday over Europe's debt crisis, noting that his party had backed practically all of her rescue policies and arguing that their proposals might make things worse by pooling countries' debt.

The new EU External Energy Policy: an important move - if it is not too late

By Alexander Mirtchev

 With the adoption of its new External Energy Policy, the EU has finally made a first step towards its integration as a single negotiating bloc in the world energy market. As such the External Energy Policy could become an important factor in the global energy security picture and a possible geopolitical game-changer. However, it remains to be seen whether the big EU member states will be willing to subordinate their interests to the wider EU interest. The External Energy Policy has probably come five years too late, argues Alexander Mirtchev, President of Krull Corp. and Vice-President of the Royal United Services Institute for Defence and Security Studies.

Euro-zone factory rebound spreads to Spain, Italy

A recovery in the euro-zone manufacturing sector broadened in August, as factory activity picked up in countries such as Spain and Italy that have suffered long downturns sparked by the region’s fiscal crisis.

Greece rejects EU plan to sell assets through overseas agency

ATHENS: Greece dismissed a proposal by euro zone officials to hand over the management of its real estate assets to a holding company based overseas, saying on Saturday the country would stay in charge of its privatisation programme.

Euro-Zone Unemployment Falls Slightly

The number of people unemployed in the euro zone fell in July for the second month in a row, adding to tentative signs that a modest recovery under way in the currency bloc's economy is starting to erode its sky-high levels of joblessness.

Euro zone, IMF to press Greece for foreign agency to sell assets

BRUSSELS: Greece's international lenders will press Athens next month to transfer state-owned real estate to a holding company managed by the euro zone to spur flagging privatisation efforts, officials said on Thursday.

We Are All Europeans Now

Alexander Mirtchev, Contributor

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The broadening cracks in the European economic framework now appear to be undermining the whole European structure, as if a ‘contagion’ is spreading from the Southern European economies outwards.

Italy must still meet targets after scrapping property tax, says Rehn

(Reuters) - European authorities will want to ensure Italy can still meet its fiscal commitments after scrapping a property tax, the European Commission's top economic official said on Thursday.

Greece eyes fresh aid, but wary of more austerity

Stuck in its debt crisis but confident of progress made after two major bailouts, recession-mired Greece is unsure of what an inevitable third package will look like.

Euro-Area Economic Confidence Seen Up to 17-Month High

Economic confidence in the euro area probably rose to the highest level in 17 months in August, adding to signs that the currency bloc’s recovery from a record-long recession is gathering pace.

Poland’s Outlook Cut to Stable at Fitch on Wider Budget Deficit

Poland had its rating outlook reduced to stable from positive at Fitch Ratings, which cited the country’s reduced fiscal credibility.

Bank of England's rate guidance aims to boost confidence: Charlie Bean

LONDON: The Bank of England's decision to provide explicit guidance on the path of interest rates was motivated by the desire to give consumers and firms more confidence to spend, deputy governor Charlie Bean said on Saturday.

Greek bailout talk inserts euro crisis into German vote, gives Merkel opponents ammunition

BERLIN – Chancellor Angela Merkel's opponents are assailing her credibility after her finance minister said Greece will need a third bailout package — injecting Europe's debt crisis for the first time into the campaign for next month's German elections.

Former ECB policymaker says euro zone crisis may flare up again

NICOSIA: A former senior ECB policymaker on Friday said the euro zone's debt crisis was far from over, and that a messy bailout for Cyprus had taken the island backwards by at least a generation.

Portugal raises $1.34 billion amid recovery hopes

LISBON, Portugal (AP) — Portugal raised 1 billion euros ($1.34 billion) in an auction of short-term debt Wednesday amid signs the country's deep recession has bottomed out, though investors remain wary of the political and economic risks of planned new austerity measures.

Key Euribor rate steady as ECB rate cut hopes dim

(Reuters) - The key Euribor bank-to-bank lending rate held steady on Monday as expectations of an ECB interest rate cut faded after data last week showed the euro zone exited recession in the second quarter.

Economy Is a Casualty in Germany's 'Noncampaign'

BERLIN — Germans sleep better, Bismarck once said, when they don’t know how sausages and laws are made. A century and a half later, Chancellor Angela Merkel seems to be modeling an election campaign on the musings of Bismarck, the “Iron Chancellor.”

France, Germany call for immediate end to Egyptian clashes

BRUSSELS, Aug. 16 (UPI) -- The leaders of France and Germany on Friday called for an immediate end to the violence in Egypt and a return to dialogue between the opposing sides.

Eurozone inflation flat, trade surplus higher: Eurostat

BRUSSELS: Inflation in the 17-nation eurozone was flat in July at an annual rate of 1.6 per cent, official data showed on Friday.

Euro Zone Returns to Growth

The euro-zone economy emerged more strongly than expected from its longest postwar contraction in the three months to June, but a resolution to its banking and fiscal crises remains a distant prospect.

German economy grows by 0.7 per cent in second quarter

BERLIN: The German economy, Europe's biggest, gained steam following a weak start into the year, growing by 0.7 per cent in the April-June quarter compared with the previous three-month period, the country's Federal Statistics Office said on Wednesday.

UK inflation rate falls to 2.8% in July

The rate of consumer prices index (CPI) inflation fell to 2.8% in July, down from 2.9% in June, according to the Office for National Statistics (ONS).

Euro zone could well be out of red but full recovery may take longer

The euro-area economy probably edged back to growth last quarter for the first time since 2011, ending the longest recession since the single currency union started 14 years ago.

Victims of Greek bail-out get chance of class action

Aggrieved investors who lost tens of billions of euros in Greece’s bail-out are being given the chance to bring class actions in America and Europe after a landmark deal between two US law firms.

High yield investors turn to Europe as US returns go south

LONDON: High yield investors once viewed Europe as a distraction from the developed US market, but are now scrambling to increase their exposure to the region in light of recent outperformance coupled with a less generous approach to equity investors.

UK trade deficit shrinks more than expected in June

LONDON: The deficit in Britain's trade in goods narrowed more than expected in June to its lowest level in nearly a year as exports picked up, giving a boost to hopes for a broader economic recovery.

Steinbrueck Says Merkel Misleading Voters on Euro Debt Crisis

German chancellor candidate Peer Steinbrueck criticized Angela Merkel for misleading voters over the true cost of the European debt crisis, saying he’ll be upfront about the policy decisions needed after fall elections.

Euro-Zone Business Activity Grows for First Time Since Jan 2012

Activity among businesses in the euro zone grew modestly in July for the first time in a year and a half, adding to evidence the crisis-hit economy is stabilizing after a long recession.

Eurozone officially enters recession

The eurozone is now officially in recession, mainly due to a slump in Germany, Europe's biggest economy, and Italy, while France has narrowly escaped the same fate.

Europe's 'downgrade diary' flags up new market pressures

LONDON: New European rules requiring credit agencies to announce their rating decisions to a pre-set timetable are likely expose the region's shaky sovereign borrowers to more bursts of market pressure. But they may also have an impact further afield.

A stable euro is good news for all

DALLAS (MarketWatch) — A year ago, European Central Bank chief Mario Draghi promised to “do whatever it takes” to save the euro.

IMF warns of tough Spain jobs outlook

MADRID: The IMF told Spain on Friday it faces five more years with an unemployment rate topping 25 percent as it pressed Madrid to enact new reforms including measures to help firms slash wages instead of axing staff.

Italian, Spanish Bonds Rise Third Week as Economic Data Improves

Italian and Spanish government bonds advanced for a third week after reports showed factory output in the euro area expanded for the first time in two years and the number of people unemployed in Germany declined.

Euro Rises to Near One-Month High Against Dollar Ahead of FOMC

The euro on Wednesday strengthened against the dollar as traders prepared for the possibility that the Federal Reserve will flag weak U.S. economic data.

Irish unemployment rate dips to 13.5%: Official data

DUBLIN: Ireland's unemployment rate retreated last month to the lowest level since April 2010, official data showed on Wednesday.

Spain marks two years of contraction in second quarter

MADRID: Spain's two-year economic slump showed signs of coming to an end in the second quarter, data showed on Tuesday, but weak domestic demand and looming fresh austerity measures mean a sustained recovery may still be far off.

Euro break-up risk falls by two thirds since Draghi pledge, survey finds

BERLIN (Reuters) - The number of investors who think a country will leave the euro zone soon has dropped by two thirds in the year since the head of the bloc's central bank promised to safeguard the currency, a survey published on Monday showed.

Germany's Schaeuble set to stay center stage in euro crisis

(Reuters) - Two years ago, German Finance Minister Wolfgang Schaeuble was on the point of giving up his role as iron fist in the euro zone debt crisis, but the 70-year-old champion of closer European integration now seems likely to remain on Europe's center stage.

Signs point finally to end of Europe recession

FRANKFURT: After a year and a half of recession, Europe's battered economy could finally be showing signs of life. It's not the kind of recovery that calls for a big celebration.

Euro Zone Edges Toward Stabilization

LONDON--An indicator that has correctly recorded contractions in the euro-zone economy suggests the currency area is edging closer to stabilization after a recession that began in late 2011.

German Business Confidence Rises for a Third Month

German business confidence rose for a third month in July, indicating that Europe’s largest economy is recovering as the 17-nation euro region tries to shake off its longest-ever recession.

French unemployment hits new record as economy struggles

PARIS: The number of jobseekers in France rose to a new record of 3.28 million in June, the labour ministry said Wednesday, as the country's economy struggles to gain a footing.

EU public debt rockets

The debt to GDP ratio in the eurozone has reached a new record of 92.2% as high unemployment, tumbling trade flows and a prolonged recession in the single currency bloc take their toll.

Unemployment set to rise further in euro zone's hardest hit: Polls

LONDON: The queues of jobless people across Spain, Portugal and Greece will lengthen further but an end to recession is within sight, according to the latest Reuters poll on some of the euro zone's most vulnerable economies.

Britain's economy better off inside EU: government study

(Reuters) - The economic benefits of Britain's European Union membership outweigh the loss of independence on policy, the government said on Monday in a review that will underpin Prime Minister David Cameron's plan to renegotiate EU ties and hold a referendum.

Rival accuses Germany's Merkel of deceit over euro zone bailouts

BERLIN (Reuters) - Germany's main opposition leader Peer Steinbrueck accused Chancellor Angela Merkel of covering up the likelihood that German taxpayers will have to fund further euro zone bailouts due to a looming election.

Debt crisis: What lies ahead for the Eurozone this summer?

Latvia is standing tall this summer after receiving the go-ahead to join the Eurozone in January 2014. It has met all economic criteria and will become the zone's 18th member.

Merkel's Stealth Plan to Keep Euro Crisis From Exploding Again

Angela Merkel has a dilemma. Europe’s debt crisis is heating up again. But Germany will hold elections on Sept. 22, and Merkel’s popularity rests on voters’ belief that her leadership has helped bring the crisis under control.

Celebrating the Elderly With a Nervous Eye on Italy’s Future

PERDASDEFOGU, Italy — On a recent Sunday afternoon, hundreds of villagers gathered in this tiny Sardinian town for a Mass to celebrate the 100th birthday of Claudina Melis, one of its esteemed citizens.

U.S.'s Lew to visit Greece, discuss its reforms

WASHINGTON (Reuters) - U.S. Treasury Secretary Jack Lew will visit Greece on Sunday to discuss the euro zone country's economic reforms and Europe's policies to support recovery, the Treasury said on Wednesday.

Euro-Zone Exports Slump in May

LONDON--Exports from the 17 countries that share the euro slumped in May, as did imports, an indication that the currency area's longest postwar contraction may have continued into a seventh straight quarter.

France's Hollande says economic recovery has begun

PARIS: President Francois Hollande said on Sunday that recovery had started in France's struggling economy, which entered arecession this year and has record-high unemployment.

Portugal's PM says committed to reaching cross-party deal

(Reuters) - The opposition Socialists demanded a renegotiation of Portugal's bailout terms on Friday, raising a hurdle to a cross-party pact the president says is needed to end the euro zone country's dependence on international funding next year.

Germany, France split over EU banks plan

(Reuters) - Germany and France were split on Friday over European Union plans for a new agency to wind down troubled banks, with Berlin saying they go too far in centralizing control in Brussels.

Euro zone output down in May as recovery remains fragile

BRUSSELS (Reuters) - Euro zone factory output fell in May for the first time in four months, data showed on Friday, suggesting a fragile and uneven recovery in the bloc that is struggling with record joblessness and renewed political tensions in southern Europe.

Draghi’s Time Horizon for Rates Seen to Exceed a Year: Economy

For Mario Draghi, “an extended period of time” lasts longer than a year, according to economists surveyed after the European Central Bank president used the phrase in a pledge to keep interest rates low.

German economy struggles as exports and output tumble

(Reuters) - German exports fell the most since late 2009 in May and industrial output tumbled, suggesting Europe's largest economy is struggling to regain traction, although a rise in imports pointed to robust domestic demand.

Bank of France raises second-quarter growth forecast

PARIS: France's central bank raised its forecast for economic growth in the second quarter on July 8, predicting that the second-largest economy in the euro zone shook off a shallow recession with an increase of 0.2 per cent in gross domestic product.

Greece, Troika Optimistic on Reaching Deal Before Meeting

Greek Finance Minister Yannis Stournaras said the government probably will reach a deal with international creditors before today’s Eurogroup meeting to keep bailout funds flowing to the country.

Spanish, Italian Bonds Gain as ECB Signals Prolonged Low Rates

Spanish and Italian bonds advanced for a second week after the European Central Bank signaled it will keep interest rates low for longer, boosting demand for higher-yielding euro-area assets.

ECB leaves key rate unchanged

FRANKFURT, Germany (AP) -- European Central Bank head Mario Draghi is reassuring markets that the bank is nowhere near ending its stimulus measures for the weak eurozone economy.

Debt crisis shrinks international use of euro

FRANKFURT, GERMANY: International use of the euro slipped last year because of the debt crisis in Europe, but the US dollar held its own as the world's leading currency for reserves held by central banks.

Euro-Area Inflation Accelerates to 1.6% Amid Recession

Euro-area inflation accelerated for a second month in June and manufacturing output contracted less than estimated, adding to signs that the 17-nation currency bloc is starting to emerge from a record-long recession.

Trucks pile up at border of new EU member Croatia

(Reuters) - A day after Croatia joined the European Union, a glitch in its EU-standard customs software caused huge delays at the border with Serbia, the bloc's new external frontier.

Euro zone joblessness at record high, inflation up

(Reuters) - Euro zone unemployment is at a record high and consumer prices are being driven upward by volatile energy and food prices, data showed on Monday, underlining the fragility of the bloc's economic health.

Euro Zone Set to Keep Shrinking

LONDON--An indicator that has correctly recorded contractions in the euro zone suggests the currency area's economy shrank for a seventh straight quarter in the three months to the end of June, extending its longest postwar slump.

Euro zone economic mood rises to 13-month high in June

BRUSSELS (Reuters) - Euro zone economic confidence improved by more than expected in June, rising to its highest level in a little over a year, a sign that Europe could be emerging from nearly three years of slump brought about by its debt and economic crisis.

UK double-dip recession revised away

The UK economy did not experience a double-dip recession at the beginning of 2012, official figures have shown.

Swiss government sees slight budget deficit in 2014

ZURICH: The Swiss government expects its budget to run a slight deficit in 2014 after parliament suspended planned savings measures, but sees a renewed balance over the next few years provided the global economy picks up.

Draghi defends ECB crisis measures

BERLIN (AP) -- European Central Bank head Mario Draghi again defended the ECB's bond-buying program Tuesday, saying the crisis backstop was more important now following recent market turbulence sparked by other central banks around the world.

Euro bonds move in unison; is that a good thing?

It’s tempting to take a glass-half-full reading of this week’ selloff in euro-zone bonds. After all, they have, for once, moved cohesively in the same direction.

EU's Barroso 'fuelling' far-right: French minister

(Reuters) - Outspoken French Industry Minister Arnaud Montebourg accused European Commission President Jose Manuel Barroso on Sunday of fueling far-right groups across Europe as France's National Front made gains in a parliament by-election.

Italy economy seen shrinking at slower pace in Q2: Central bank

ROME: Italy's economy is expected to contract at a slower pace in the second quarter of this year and could stabilise in the second half, the deputy director general of the Bank of Italy Fabio Panetta said on Friday, citing analyst forecasts.

Five U.K. Banks Must Raise Extra $21 Billion Capital

Five U.K. banks must find 13.4 billion pounds ($21 billion) to plug a 27.1 billion-pound capital shortfall by the end of the year, the Bank of England said.

Euro crisis needs a continental solution

WASHINGTON (MarketWatch) — Angela Merkel seems surer than ever to win her third term as German chancellor in September, Antonin Samaras survived as prime minister after a court blocked his effort to shut down Greece’s state-run broadcaster, and Enrico Letta finally produced a “budget-neutral” package of measures to boost the Italian economy.

Greece TV: Samaras in crisis talks with allies

The Greek Prime Minister, Antonis Samaras, is holding crisis talks with coalition allies over his decision to shut down the national broadcaster.

Britain tries to stem tax dodges ahead of G8 summit

LONDON: Britain turned up the pressure on other rich economies to clamp down on secretive money flows at a summit next week by pressing its overseas tax havens into a transparency deal and announcing new disclosure rules for British firms.

Euro-Zone Employment Falls to Lowest Level in 7 Years

A sharp fall in the number of people in work in the euro zone in the first quarter left employment at its lowest level in more than seven years, official data showed Friday.

G8 to say risks to economy lower, reforms needed: draft

LONDON (Reuters) - Leaders of the world's richest nations are likely to say next week that they are not content with progress so far in fixing their economies after the financial crisis.

UK banks fear cyber attack more than euro crisis: BoE's Haldane

LONDON (Reuters) - Worries over hacking and other cyber attacks has pushed aside the euro zone crisis as the top risk for Britain's banks and they must do more to protect themselves, a senior Bank of England official said on Wednesday.

Greece back in crisis mode on state TV shutdown, downgrade

ATHENS: Greece's fragile government faced an internal revolt and fierce public protest on Wednesday over the sudden closure of state broadcaster ERT, hours after the humiliation of seeing its bourse downgraded to emerging market status.

Euro zone industrial output shows surprise rise in April

BRUSSELS (Reuters) - Industrial output from euro zone factories defied market expectations of a month-on-month decline and rose in April, data showed on Wednesday, but the pace of expansion was slowed by a drop in production of energy and durable consumer goods.

Euro-Area Investor Confidence Rises as Recovery Seen This Year

Euro-area investor confidence rose in June on increased optimism that the economy will return to growth this year and turbulence in the sovereign debt crisis has been overcome for now, the Sentix research institute said.

Merkel Says Euro Nations Must Follow Germany’s Lead on Growth

Chancellor Angela Merkel said euro nations must follow Germany’s lead in tightening budgets and reshaping labor markets to return to growth as she seeks to stave off any crisis eruptions before elections in September.

Germany could expand small business loan scheme to EU strugglers

BERLIN: Portugal and Greece are interested in the same kind of support for lending to small business that Germany agreed with Spain this week, a spokeswoman for the German finance ministry said on Saturday, but they will need a state financing body to qualify.

Down So Long, It Looks Like Up to the Euro Zone

FRANKFURT — This is what passes for good economic news in Europe: Spain just added 265 jobs.“Clearly encouraging,” the nation’s prime minister, Mariano Rajoy, said of the development.

Eurozone to shrink 0.6% in 2013, grow 1.1% in 2014: ECB

FRANKFURT, GERMANY: European Central Bank President Mario Draghi has announced a cut in the bank's growth outlook for the 17 countries that use the euro currency.

IMF On Greece: We Screwed Up But It's Really The Eurozone's Fault

For Euro crisis enthusiasts, today’s IMF review of its Greek program is a real treat. By official standards, the document is thoroughly honest and clear.

IMF trims German 2013 growth forecast to 0.3 per cent

FRANKFURT: The International Monetary Fund lowered Monday its forecast for German growth this year, but predicted that Europe's biggest economy will experience a recovery in the second half of 2013.

Italy April Unemployment Rate Rises to New Record

ROME--Italy's unemployment rate hit an all-time high of 12% in April, official data from Istat showed Friday.

Euro to Rally as ECB Fails to Implement Negative Rates

The Euro was a top performer this week despite flashes of excessive volatility – the EURUSD saw prints close to $1.3100 and 1.2800 – as a slight uptick in data coupled with general anxiety over several of the single currency’s counterparts allowed gains to be found.

Eurozone unemployment rate hits record high

Unemployment in the eurozone touched a fresh high in April, fuelling fears that the deepening jobs crisis threatens the social fabric of the currency bloc.

Crisis states lead way as euro zone's economic mood brightens

BRUSSELS (Reuters) - Confidence in the euro zone economy grew by more than expected in May, with hope that the worst of the crisis may be over spreading to countries that have been on its frontline.

Europe rows back on FTT plans

European countries pressing for a £30bn financial transaction tax are rowing back on their plans in the face of international opposition and concerns about the economic damage the levy could cause.

Bankia Shares Tumble After a New Stock Issue

MADRID — Shares in Bankia, the giant Spanish mortgage lender that was at the heart of the country’s banking crisis, fell sharply on Tuesday after a large share issue that was meant to herald a new start.

EU May Consider Easing Portugal Targets If Economy Worsens

The European Union may consider giving Portugal more time to meet its deficit targets if economic conditions worsen, Jeroen Dijsselbloem, head of the group of euro-area finance ministers, said.

Norway Unemployment Unexpectedly Rises as Euro Crisis Weighs

Norway’s jobless rate rose to the highest level in three years as a recession in Europe weighs on expansion in western Europe’s largest oil producer.

China PM says stable euro in best interests of China and world

BERLIN (Reuters) - China's Premier Li Keqiang said on Sunday a stable euro was in the best interests of China and the whole world.

ECB can't solve euro zone crisis alone - Weidmann

PARIS (Reuters) - Bundesbank chief Jens Weidmann said on Thursday it was not up to the European Central Bank to solve the euro zone crisis, resisting pressure from other ECB policymakers for the bank to widen its range of policy tools.

Slovenia adopts debt cap to stave off crisis

LJUBLJANA: Slovenia's parliament on Friday imposed a cap on public spending in an attempt to convince foreign investors that the small eurozone country will not need an international bailout.

ECB can't solve euro zone crisis alone - Weidmann

PARIS (Reuters) - Bundesbank chief Jens Weidmann said on Thursday it was not up to the European Central Bank to solve the euro zone crisis, resisting pressure from other ECB policymakers for the bank to widen its range of policy tools.

Nobel Laureate Phelps Warns Against EU as Iceland Abandons Talks

Nobel Laureate Edmund Phelps warned against the dangers of European Union membership as Iceland became the latest nation to question the sense of affiliation with a bloc mired in economic crisis.

British PM David Cameron urges more action on tax from UK territories

LONDON: Britain called upon its overseas territories to "get their house in order" over the sharing of tax information on Monday as the UK looks to lead a global fight against tax evasion ahead of a meeting of the world's wealthiest states.

Every cent helps: euro zone explores scrapping smallest coins

BRUSSELS (Reuters) - Saving pocket change may not end the euro zone crisis, but the European Commission hopes that scrapping the smallest coins could help penny-pinching governments cut costs.

France enters recession; Hollande under pressure

PARIS: President Francois Hollande holds a key press conference on Thursday, a day after his first anniversary in office was marred by news that holland France had fallen back into recession amid plummeting economic indicators.

Germany can't stop euro zone from sinking into longest recession

(Reuters) - Germany's economy crept back into growth at the start of the year but not by enough to stop the euro zone from contracting for a sixth straight quarter, and France slid into recession.

Hungary Exited Recession in First Quarter, Poll Says

Hungary’s economy probably exited its second recession in four years in the first three months of 2013, posting growth from the previous quarter for the first time since 2011, a survey of economists showed.

Europeans disillusioned and divided by debt crisis, survey finds

Public support for the European project has fallen and distrust between countries is growing, according to a new survey released overnight that shows the damage caused by the region's debt crisis over the last few years.

Cyprus receives EU-IMF bailout funds

Cyprus has received the first instalment of a 10bn-euro bailout package from international creditors, which was agreed earlier this year.

Spain, Portugal meet to find ways to help economy

MADRID (AP) — Spain and Portugal's premiers are meeting to discuss the economic turmoil plaguing their countries and the measures the European Union should take to ease the crisis.

Emerging economies suffering eurozone fallout, EBRD warns

The damage being inflicted on some emerging economies by the continuing eurozone crisis was highlighted on Friday by new figures from the European Bank for Reconstruction and Development.

Italian official industrial output shrinks in March

MILAN: Italy's industrial production shrank by 0.8 percentage points in March from the level in February in a far worse result than expected, according to official data released on Friday.

Cyprus considered exiting the euro zone in March

Cyprus seriously considered dropping out of the euro zone at the peak of its financial crisis in March as it faced a standoff over the terms of an international bailout, Cyprus Foreign Minister Ioannis Kasoulides said in an interview in Washington on Thursday.

UK industrial output beats forecasts, official figures show

UK industrial production was stronger than forecast in March, official figures show, boosted by manufacturing and a recovery in oil and gas output.

Euro Rallies as German Factory Orders Diverge from PMI Result

German manufacturing orders increased by 2.2% in March (seasonally adjusted), thereby vastly outperforming expectations for the factory orders to decline by 0.5%, and the March rise in orders was the same as the revised 2.2% rise reported in February.

Italy economy to shrink 1.4% in 2013, figures forecast

Italy's economy will shrink by 1.4% this year, a much sharper contraction than previously forecast, according to the national statistic agency.

Eurozone crisis deepens as German 'sado-monetarists' refuse to back QE

The countries of the eurozone are running into austerity fatigue and no wonder, with unemployment at catastrophic levels, except in Germany.What scope is there to take action to boost the economy?

Europe Warns of Harder Economic Times to Come

BRUSSELS — A deteriorating economy in the European Union is expected to drive unemployment to new highs this year in countries including Spain and Portugal that already are feeling acute pain, the Union’s top economics official warned on Friday.

EU sees deeper recession in gloomy outlook

BRUSSELS: Recession in the crisis-hit eurozone will be deeper than expected for the rest of the year, hitting even Europe's biggest economies and leaving unemployment at record levels, the EU warned Friday.

Euro Drops as Draghi Open to Negative Rates; Dollar Strengthens

The euro fell for the first time in five days against the dollar after European Central Bank President Mario Draghi said policy makers may take the unprecedented step of charging banks to hold excess reserves.

Greeks stage 24-hour anti-austerity general strike

A general strike against tough austerity measures is under way in Greece, with trade unions calling for "mass mobilisation" of protesters.

New Italian premier urges EU to focus on growth

BERLIN (AP) — Italy's new prime minister called Tuesday for European countries to prioritize economic growth over debt reduction, adding his government believes Europe needs to integrate further to overcome its current crisis.

Euro-Area Economic Confidence Falls More Than Forecast

Economic confidence in the euro area decreased more than economists forecast in April as the 17- nation currency bloc struggled to emerge from a recession and the bailout of Cyprus renewed debt-crisis concerns.

German finance minister calls anti-euro party's policy "insane"

BERLIN (Reuters) - A core policy of a new anti-euro party was criticized as "economically insane" by German Finance Minister Wolfgang Schaeuble in an interview published on Sunday.

Stalemate over, Italy's Letta names new government

ROME (Reuters) - Italian center-left politician Enrico Letta named a coalition government on Saturday, making one of Silvio Berlusconi's closest allies deputy prime minister and ending two months of damaging political stalemate.

European Stocks Post Biggest Weekly Gain in Five Months

European stocks posted the biggest weekly gain in five months as investors speculated the region’s central bank will cut rates and as companies from BASF SE to Standard Life (SL/) Plc reported better-than-expected results.

Cyprus further eases limits on money transfers

NICOSIA, Cyprus (AP) — Cyprus significantly eased restrictions on money transfers inside and outside the country Thursday to help businesses spur a deeply slumping economy.

Italy crisis close to an end but problems not over

ROME: Months of paralysing political deadlock seem close to an end in Italy with a new government possible by early next week, but there are many questions over how long the stability can last.

George Osborne set to expand Funding for Lending Scheme

George Osborne is expected to expand his flagship £80bn lending scheme on Wednesday in a bid to boost support for small businesses following criticism that most of the funds have been siphoned off by high street banks to cut homeowner's mortgage costs.

Angela Merkel says Germany not seeking 'hegemony' in EU

BERLIN: German Chancellor Angela Merkel on Monday rejected the idea that her country was seeking "hegemony" in the European Union, but insisted members needed to cede some national sovereignty for the greater good.

The IMF’s fiddling achieves nothing

Fresh from the calamity of the Cypriot bail-out, a fiasco that he personally oversaw, he was at it again at the International Monetary Fund’s spring meeting in Washington last week.

Euro-Zone Workers Increasingly Forced to Go Part-Time

Growing numbers of workers in the euro zone are unable to work as many hours as they would like, official figures showed Friday, casting new light on the grim outlook for consumers that could depress the region's growth prospects for some time to come.

France warned on growth goals, fiscal targets in doubt

PARIS: France's economy could shrink this year and miss future government forecasts, the country's budget watchdog and the IMF warned on Tuesday, casting doubt on Paris's pledge to cut its deficit below 3 percent of output.

ECB's Draghi urges governments to solve crisis

AMSTERDAM (Reuters) - The president of the European Central Bank on Monday put pressure on governments to push ahead with plans for a closer European integration to address the crisis' core problems.

Eurozone posts trade surplus of 10.4 bn euros in February

BRUSSELS: The 17-nation eurozone posted a trade surplus of 10.4 billion euros ($13.6 bn) after recording a revised deficit of 4.7 billion euros in January, Eurostat said Monday.

Cyprus to ease citizenship requirements, attacks EU 'hypocrisy'

NICOSIA: Cyprus will relax requirements for citizenship, including for bank depositors who lost large amounts of money in the deal with the EU and IMF, in an effort to keep foreigners interested in investing in the island state, the president said on Sunday.

Spain to rescue its indebted regions with 15 billion euros

DUBLIN: The Spanish government is putting finishing touches to a new bailout plan for its highly indebted regions to settle 15 billion euros ($19.7 billion) of unpaid bills to suppliers, Spanish Economy Minister Luis de Guindos said on Saturday.

The Euro Zone Crisis Is Back - on Multiple Fronts

Europe's finance ministers meeting in Dublin on Friday are facing a renewed crisis on multiple fronts,with a backlash against austerity acting as a gloomy backdrop for negotiations over bailout extensions for Portugal and Ireland, while tackling Cyprus's botched bailout and growing worries about Slovenia.

Italy debt to reach peak of 130.4% in 2013: government

MILAN: Italy's public debt level will reach a peak of 130.4 per cent of gross domestic product ( GDP) this year, according to a long-term budget programme issued on Wednesday that forecasts growth will pick up and debt go down starting from next year.

Spain rating risk driven by deficit, says Moody's

MADRID: The likelihood that Spain will miss its public deficit target this year leaves its sovereign rating at risk of slipping below investment grade, credit agency Moody's said on Tuesday.

Slovenia Faces ‘Severe’ Banking Crisis in Recession, OECD Says

Slovenia, hit hard by a boom-bust cycle and the euro area’s debt woes, faces a “severe” banking crisis if it doesn’t act quickly, the Organization of Economic Cooperation and Development said.

German Industrial Production Increased in February

German industrial output rebounded in February, adding to signs that Europe’s largest economy is stabilizing after a contraction in the fourth quarter.

Amid financial crisis, Cyprus convicts offer help

NICOSIA: With Cyprus' economy falling apart, even those behind prison bars are pulling together to help people in need.

Italy to pay 40 billion euros of state debt to companies

ROME (Reuters) - Italy's caretaker government said on Saturday it would pay 40 billion euros ($52 billion) that the state owes to private companies over the next 12 months, while vowing to stick within the European Union's deficit limit.

Euro zone crisis: German economy slows to 'near-stagnation,' PMI survey shows

BRUSSELS, Belgium — Germany, the largest economy in the euro zone, slowed to “near-stagnation” in March, according to data released Thursday that showed the euro-area recession had deepened.

Turkey says Cyprus crisis is chance to end division

VILNIUS (Reuters) - Turkish President Abdullah Gul said on Wednesday the financial crisis in Cyprus presented an "important opportunity" to end the division of the island, split between the Greek Cypriot south and Turkish north.

U.K. Banks Try to Dodge Bonus Caps by Defining Risk-Taker

U.K. lenders are preparing to lobby the European Union’s chief banking regulator to reduce the number of employees hit by rules capping bonuses, two people familiar with the talks said.

Eurozone crisis demands one banking policy, one fiscal policy – and one voice

It had all started to look quite promising. The US was picking up, China had avoided a hard landing and in Japan the early signs from the new government's anti-deflation approach were encouraging.

The Resolution of the Cyprus Banking Collapse Paves the Way for More Crises

The international financial community and the markets have declared victory over Cyprus’s banking crisis. But the solution imposed on Cyprus–taxing big deposits–may pave the way for the next European financial crisis.

EU, IMF resisting merger of Greek banks NBG, Eurobank: Paper

ATHENS: Greece's international lenders have asked Athens to halt the merger of National Bank with Eurobank, worried that the resulting lender would be too big for the state to deal with, daily Kathimerini reported on Saturday.

France's Hollande hits companies with 75 percent wealth tax

PARIS (Reuters) - French President Francois Hollande declared on Thursday that companies would have to pay a 75 percent tax on salaries over a million euros after his plan for a "super-tax" on individuals was knocked down by the constitutional court.

Euro zone corporate loan gain offers euro zone hope

FRANKFURT (Reuters) - Lending to euro zone businesses rose on the month in February for the first time since July, showing patchy and fragile gains that offer a glimmer of hope for the euro zone's crisis-hit economy.

U.K. Banks Seen Avoiding Share Sales After BOE Capital Review

U.K. banks including Royal Bank of Scotland Group Plc and Lloyds Banking Group Plc (LLOY) may avoid the need to sell new shares to bolster their balance sheets after the Bank of England used more lenient rules than those advocated by European regulators.

Hollande's popularity at new low as he grapples with French economy: poll

PARIS (Reuters) - French President Francois Hollande's popularity rating has fallen to its lowest level since he came to power, a poll found on Wednesday, a day before he is due to address the nation to ask for patience as he attempts to revive the economy.

Croatia gets final thumbs up to join EU

BRUSSELS: Brussels deemed Croatia ready to become the 28th European Union member in July in a final report issued Tuesday stating that it complied with EU rules, though more work was needed to fight crime and corruption.

Sir Mervyn King: global crisis 'far from over'

The global crisis is "far from over" and countries can expect several "twists and turns" before the economy fully recovers, the Governor of the Bank of England has warned.

Cyprus Teeters on Brink as Euro Chiefs Battle Crisis

European governments battled to save Cyprus from financial ruin, seeking to prevent the woes of the euro area’s third-smallest economy from reviving the debt crisis and rattling markets.

French Economy to Stay Stalled in First Half, Insee Predicts

The French economy will extend two years of stagnation in the first half as consumers hold off on spending and companies cut investments, national statistics office Insee predicted.

Most Germans expect euro zone crisis to worsen: poll

BERLIN (Reuters) - Nearly two thirds of Germans expect the euro zone crisis to worsen and almost half fear for their savings, according to an opinion poll released on Friday, amid rising concerns that Cyprus may be forced to quit the common currency.

New Slovenia PM vows to help growth, jobs before parliament vote

LJUBLJANA (Reuters) - Slovenia's new prime minister, Alenka Bratusek, is determined to revive the country's economy and overhaul its crumbling banks to avoid an international bailout, she told parliament on Wednesday.

Euro crisis: Why a Cyprus bailout must be seen as 'fair'

As Europe tackles its latest euro crisis, a Cyprus bailout deal must follow the path of being perceived as 'fair.' A tax on small-time savers isn't seen that way.

Czech left's leader says "deadly cuts spiral" must end

OSTRAVA, Czech Republic (Reuters) - The Czech Republic's likely next prime minister says he plans to increase taxes on big firms and banks and put new emphasis on creating jobs to pull the economy out of a "deadly spiral".

Cyprus becomes fifth eurozone bailout

BRUSSELS: Eurozone finance ministers agreed early Saturday on a bailout for Cyprus, the fifth international rescue package in three years of the debt crisis.

Cameron's allies dismiss talk of leadership threat to PM

LONDON (Reuters) - Two senior members of Prime Minister David Cameron's ruling Conservative party spoke out to calm growing talk of a leadership challenge against him on Friday, days before a closely watched budget.

Greek fiscal targets are unrealistic: Bank group

ATHENS: Heavily-indebted Greece was set fiscal targets that were not achievable, in contrast to Ireland, which is emerging as a success story, a global bank lobby group said this week.

Germany agrees 'historic' balanced budget for 2014

BERLIN: The German government on Wednesday approved a draft budget for 2014 with the lowest deficit in 40 years, hailed by the economy minister as a "historic" step in the battle against debt.

Osborne faces limited budget options

LONDON (Reuters) - Chancellor George Osborne has limited options for pulling the economy out of its rut when he presents his fourth annual budget on March 20.

Spain hasn't seen unemployment this bad since Franco

Not since the days of Franco has Spain suffered such high unemployment rates. The country was virtually a feudal, agrarian economy the last time almost six million workers were unemployed.

Italy’s Rating Cut by Fitch as Election Threatens Gridlock

Italy’s credit rating was cut one level by Fitch Ratings as an inconclusive election in February produced political paralysis that threatens the country’s ability to respond to a recession and the European debt crisis.

Greece may still have to quit euro - Merkel ally

BERLIN (Reuters) - Greece remains the biggest risk for the euro zone despite a calming of its economic and political crisis and may still have to leave the common currency, a senior conservative ally of German Chancellor Angela Merkel said.

French central bank sees flat economy in first quarter

PARIS: France will barely dodge recession in the first quarter of the year, with the weak economy hurting the government's efforts to rein in the budget deficit, data showed on Friday.

Europe's recession deepens - ECB

The European Central Bank downgraded its forecast for the eurozone economy Thursday but decided against cutting interest rates to a new record low despite tame inflation, record unemployment and political instability in Italy.

French unions lead protests over labor deal

PARIS (Reuters) - Tens of thousands of protesters marched in towns across France on Tuesday against plans to allow companies to cut workers' hours during economic downturns - a policy central to President Francois Hollande's jobs and growth strategy.

Euro Leaders Demand Austerity as Italy Nears New Vote

European leaders demanded that euro members press on with budget cuts to end the debt crisis as Italy edged closer to a new election after an anti-austerity vote last week resulted in political deadlock.

Time to act again, Mr. Draghi?

Further European Central Bank action to jump start the eurozone economy: Let me get back to you.ECB President Mario Draghi says he's doing what he can.

Eurozone crisis to be over by September, predicts RBI Governor D Subbarao

NEW DELHI: If RBI Governor D Subbarao's prediction is anything to go by, the Eurozone crisis is likely to be over with expiry of his term in September this year.

Greece faces bailout review, plays down public sector job losses

(Reuters) - Officials from the European Union and the International Monetary Fund return to Athens on Sunday to assess Greece's performance under a bailout plan as the government plays down the prospect of public sector job cuts.

Euro-Area Unemployment Climbs to Record on Recession

The euro-area inflation rate fell below the European Central Bank’s 2 percent ceiling for the first time in more than two years and unemployment climbed to a record as the currency bloc remained mired in recession.

Eurozone crisis still choking credit demand: ECB

FRANKFURT: Bank lending to private households in the euro area remains weak as the long-running debt crisis continues to choke demand for credit, European Central Bank data showed on Wednesday.

French finance minister - "Worrying" Italy vote shows Europe needs growth

PARIS (Reuters) - Italy's inconclusive election shows Europe's leaders must give voters across the region hope of stronger growth to offset painful austerity, French Finance Minister Pierre Moscovici said on Tuesday.

So Does Italy Now Aim To Take The Euro Down?

By Friday of last week good money was bettingagainst the UK pound but by Monday morning the Euro was back in the frame, courtesy of an Italian election that looked likely to favor anti-austerity politicians.

France seeks extra 6 bn euros in taxes in 2014: Minister

PARIS: The French government will have to raise an extra 6 billion euros in taxes next year to make up for a shortfall in its finances, the budget minister said on Monday.

Tens of thousands in Spain protest economic policy, corruption

MADRID: Tens of thousands of Spaniards marched through cities across the country on Saturday to protest deep austerity, the privatisation of public services and political corruption.

Italy urges high turnout in key election for euro zone

ROME: Italy pressed citizens to get out and vote in one of the most closely watched elections in years on Sunday and Monday, with markets on edge at the prospect of a political stalemate that could reignite the debt crisis.

French services activity weakest in 4 years in February

PARIS: French service sector activity shrank in February at its fastest rate in nearly four years, a survey showed on Thursday, suggesting the euro zone's No. 2 economy is far from the turnaround emerging in Germany.

Greeks in fresh general strike against austerity

Tens of thousands of Greeks are taking part in the first general strike of 2013, as workers renew their protest over austerity measures.

Bundesbank: German economy to avoid recession

FRANKFURT (AP) — German's central bank says the country's economy is on track to avoid a recession as it shows signs of growth in the first three months of the year.