EU insurance watchdog to unveil stress test results

FRANKFURT (Reuters) - Europe's top insurance regulator EIOPA will announce details on Monday of its latest check on how prepared the insurance sector is to withstand shocks like the recent financial market crisis.

EU plans to streamline but not change key budget rules

BRUSSELS (Reuters) - The European Commission wants to streamline the European Union's complex rules governing economic policy-making, but won't change the two key laws that sharpened budget policy control during the debt crisis, a top official responsible for the euro zone said.

Euro zone inflation dips; Italian jobless hits record

Euro zone inflation fell again in November amid expectations that the European Central Bank (ECB) could try to bolster the region's economy by announcing further stimulus measures.

Euro zone economic sentiment rises slightly in November

(Reuters) - Morale in the euro zone rose for the second straight month in November as a pick-up in industry sentiment just outweighed increased pessimism among consumers, offering a tentative sign that the bloc is avoiding outright stagnation.

Fears that ‘dangerous’ Switzerland referendum could spark gold rush

The Swiss like referendums: there were 11 last year and there have been nine more this year, on subjects ranging from who pays for abortions to whether the state should buy a certain type of new fighter aircraft.

Poland's Belka concerned zloty will rise against euro

(Reuters) - Polish central bank head Marek Belka is worried that the zloty will rise against the euro, a move that would hamper business and could affect interest rate policy, he told Reuters on Monday.

Euro zone yields hit lows: Is ECB trumping reality?

It's hard to believe it's just a few years since countries like Ireland and Spain had to go cap-in-hand to international lenders - at least if you look at their bond yields.

Euro zone business output fails to meet forecasts

Private-sector output in the euro zone failed to live up to expectations for November, fueling concerns that the region's economic recovery is faltering.

Euro falls against the dollar after ECB expands asset purchases

NEW YORK (MarketWatch) — The euro extended its losses against the dollar Friday after the European Central Bank began purchasing asset-backed securities, expanding its quantitative easing regimen as inflation expectations for the eurozone continued to dim.

George Osborne backs down over EU cap on bankers’ bonuses

George Osborne has conceded defeat in his attempt to overturn the EU cap on bonuses after a senior legal advisor at the European court of justice rejected his arguments.

EU still considering fining France over budget rules

(Reuters) - EU officials are considering fining France for failing to cut its budget deficit, although the euro zone's second biggest economy, a driving force in the creation of the shared currency, could yet be spared the unprecedented punishment.

Eurosceptics bring censure motion on EU chief over tax

(Reuters) - The European Commission faces a censure motion in the European Parliament next week after Eurosceptic lawmakers united to condemn the role its president, Jean-Claude Juncker, played in Luxembourg tax schemes.

UK houses slip from record highs, adding to signs of a cooling market

UK house prices slipped back from their record highs in September, according to official figures that add to evidence the property market is coming off the boil.

Draghi Says ECB Measures May Entail Buying Government Bonds

European Central Bank President Mario Draghi explicitly cited government-bond buying as a policy tool officials could use to stimulate the economy if the outlook worsens.

The $375 billion Europe wants to invest but doesn't have

(Reuters) - New European Commission President Jean-Claude Juncker is preparing a 300 billion euro ($375 billion) investment plan he will present as a cornerstone of efforts to revive an ailing economy.

Europe Takes Aim at Deals Created to Escape Taxes

LONDON — American companies have plowed more money into the Netherlands than any other country in the world — for five years running.

Euro zone grows faster than expected in third quarter

(Reuters) - Euro zone economic growth was stronger than expected in the third quarter, preliminary data showed on Friday, as France beat market expectations and Germany steered clear of a recession.

ECB warned euro zone inflation, growth to be lower than expected

(Reuters) - Professional forecasters have cut their outlook for euro zone inflation and growth, underlining a trend that could prompt the European Central Bank to take more action to kick-start the region's flagging economy.

Euro zone industry output rises slightly in September

(Reuters) - Output at euro zone factories rose in September, lifted by machinery and energy, but the increase was slightly less than expected and highlighted how few cars and televisions Europeans are buying as the recovery falters.

European Stocks Extend Five-Week High as Vodafone Gains

European stocks rose, extending their highest level in more than five weeks, as companies from Vodafone (VOD) Group Plc to Henkel AG rallied on better-than-estimated financial results and improving forecasts.

Euro zone sentiment recovers slightly in November to -11.9

(Reuters) - Sentiment in the euro zone recovered slightly in November after three months of decline as investors took heart that a more dynamic global economy propped up by the United States and Japan could lift the currency bloc, a survey showed on Monday.

Osborne Accused of Smoke and Mirrors Over EU Payment

U.K. Chancellor of the Exchequer George Osborne hasn’t fooled the British public into thinking he won a reduction in a payment demanded by the European Union, the opposition Labour Party said.

EU court backs Spain's tax breaks for foreign acquisitions

(Reuters) - Spain has won backing from a European Union court for tax breaks intended to help its companies buy stakes in foreign firms, dealing a blow to EU regulators' campaign against tax deals they view as illegal subsidies.

Euro zone backs ESM credit line for Greece after bailout exit

(Reuters) - Euro zone finance ministers backed on Thursday a precautionary credit line for Greece after the country exits its bailout at the end of the year, in a bid to balance the need to reassure investors with the demands of domestic Greek politics.

German Factory Orders Rise Less Than Forecast as Growth Stalls

German factory orders (GRIORTMM) climbed less than forecast in a sign the euro area’s largest economy may struggle to grow in the second half of the year.

Poland Holds Main Rate in Surprise as Outlook Improves

Poland’s central bank left its main interest rate unchanged today, surprising analysts and suggesting its economic outlook has improved after last month’s bigger-than-expected reduction.

Euro crisis firms German power, 25 years after Berlin Wall

PARIS: "We beat the Germans twice and now they're back," then British prime minister Margaret Thatcher reportedly said after the Berlin Wall fell in 1989, expressing her fears a reunited Germany would grow to dominate Europe.

Hypocrisy: EU seeks aid from WTO for Russian sanctions that hurt their economy

The most important thing to remember about economic sanctions is that they are used by a nation against another to achieve political, not financial goals.

Russia’s Surprise Rate Increase Fails to Stem Ruble Drop

The ruble tumbled the most since 2011 after a larger-than-forecast increase of Russia’s key interest rate failed to ease concern that the economy will remain hobbled by sanctions and capital flight.

Euro zone inflation edges up to dim chance of new ECB action

(Reuters) - Inflation in the 18 countries sharing the euro edged up slightly in October, reinforcing the view that the European Central Bank will hold fire on any additional policy action at its meeting next week.

Spain’s economic recovery gathers momentum

Spain’s economic recovery gathered momentum between July and September, with growth for a fifth consecutive quarter. The economy grew by 0.5% in the third quarter, according to the country’s statistics office.

France vows 20 million euros for fight against Ebola

PARIS: France on Tuesday said it was pledging 20 million euros ($25.4 million) in the fight against Ebola in west Africa, including the opening of several care centres in Guinea.

Italy cuts 2015 deficit goal to win EU approval for budget

(Reuters) - Italy on Tuesday cut its target for the 2015 fiscal deficit to 2.6 percent of gross domestic product from 2.9 percent, having toughened its budget plan for next year in response to changes requested by the European Commission.

ECB covered bond buying plan starts with a whimper

(Reuters) - The European Central Bank spent 1.704 billion euros last week on covered bonds under a new purchase program with which it hopes to foster lending to businesses and thereby support the euro zone economy.

Twenty-four European banks fail financial stress tests

One in five European banks have failed crucial tests of their financial strength, leaving a €25bn (£19.6bn) capital hole in the continent’s banking system at a time of renewed fears that the five-year long eurozone crisis may be flaring up again.

The EU budget: who pays what?

The joint budget of the 27 members of the European Union is 129 billion euros ($165 billion) this year. It is used to subsidize the European agricultural sector, structural and regional aid, and programs in the fields of science, research and culture as well as some industries.

Stagnating euro zone seeks German shift

BRUSSELS (Reuters) - France and Italy sought on Friday to bridge stark differences with Germany over how to avert economic stagnation and deflation, but Chancellor Angela Merkel warned her peers against repeating the euro zone's debt crisis.

Euro zone risks 'relapse into recession' without structural reforms: Draghi

BRUSSELS (Reuters) - The ECB's president warned divided euro zone leaders on Friday they risked "a relapse into recession" if they failed to press ahead with structural economic reforms, a message welcomed by German Chancellor Angela Merkel.

Rapid UK economic growth slows slightly in third-quarter

(Reuters) - Britain's rapid economic recovery eased in the three months to September, as services output growth slowed and manufacturing expanded at the weakest pace in 18 months, official data showed on Friday.

EU's Juncker pledges investment plan for jobs

(Reuters) - The incoming head of the EU executive, Jean-Claude Juncker, told the European Parliament on Wednesday that he would present his 300-billion-euro plan for investment to bolster growth and jobs by the end of this year.

ECB can use new banking knowledge in rate setting: Constancio

(Reuters) - European Central Bank policymakers will be able to use the information they gain from their new banking supervisory powers in the traditional monetary policy side of their jobs, ECB Vice President Vitor Constancio said on Monday.

Eurozone crisis, five years on: no happy ending in sight for Greek odyssey

Greece loves its epic tales and the greatest of them is the story of Odysseus, the hero who took 10 years to find his way back to Ithaca at the end of the Trojan War.

Getting used to the 'new mediocre'

Until a dramatic selloff, exuberant markets had raced well ahead of the economies that underpin them, partly because the U.S. Federal Reserve and other central banks flooded the financial system with new money.

OECD sees French reforms boosting GDP growth 0.3 percent points per year

(Reuters) - The OECD prodded France on Friday to step up the pace of its reforms, though it estimated that those already in the pipeline would gradually deliver tangible economic growth gains.

Borrowing costs jump for fragile euro zone states

LONDON (Reuters) - Borrowing costs for some of the euro zone's most highly indebted southern states shot higher on Thursday, as fears of slowing economic growth wounded confidence that the European Central Bank could avert another debt crisis in the bloc.

ECB eyes extra funding for Greek banks as Athens markets plunge

(Reuters) - The European Central Bank will loosen its terms for accepting security from Greek banks to allow them to tap more of its funding, offering the country's lenders support as stock and bond markets in Athens tumble.

Surprise inflation fall may put interest rate rise on hold

The prospects of an interest rate rise in the next few months have dimmed after inflation fell to a five-year low last month. Official figures showed inflation dropped to 1.2% in September from 1.5% in August as food and fuel prices fell.

Ireland to close ‘double Irish’ tax loophole

Apple and other multinationals based in Ireland are to be given a four-year window before the phasing out of a scheme that cuts their tax bills.

Greece to get 381 million euros from mobile phone spectrum sale

(Reuters) - Greece will raise 381 million euros from the sale of mobile phone frequencies to its biggest telecom operator OTE (OTEr.AT), Vodafone (VOD.L) and Wind Hellas, the minimum price set in the tender, its telecoms regulator said on Monday.

PM Valls urges Europe to respect France, and its budget

(Reuters) - French Prime Minister Manuel Valls said on Saturday that it is up to France to decide on its budget and that Paris should be treated with respect by its European partners.

IMF warns period of ultra-low interest rates poses fresh financial crisis threat

A prolonged period of ultra-low interest rates poses the threat of a fresh financial crisis by encouraging excessive risk taking on global markets, the International Monetary Fund has said.

Swiss deflation risk on radar screen for SNB: bank chairman

(Reuters) - Swiss National Bank (SNB) Chairman Thomas Jordan vowed on Friday to take whatever steps were necessary to fend off deflation in the face of a weak global economy, worsening euro zone outlook and falling commodities prices.

Hollande Falls Into Line as Merkel Fends Off EU Spending

German Chancellor Angela Merkel sidestepped French President Francois Hollande’s call to use stimulus measures to counter Europe’s faltering recovery, saying investments need to be carefully considered.

Greece, EU/IMF lenders to resume inspection after stress tests

(Reuters) - Greece's EU and IMF lenders are leaving Athens after the first round of talks on a crucial bailout review and will return after the results of European bank stress tests are announced, Greek officials said on Tuesday.

ECB's readiness to act again doesn't mean it should do so now: Weidmann

(Reuters) - The European Central Bank has moved toward a "quantitative easing philosophy" but should not automatically use its remaining policy tools right away, Governing Council member Jens Weidmann said.

Bank of England proposes savings protection limit of £1m

Savings of up to £1m in collapsed banks are to be protected under new proposals from the Bank of England intended to avoid a Northern Rock-style run on a financial institution.

France produces 'no austerity' budget, defying EU rules

PARIS: France intensified a showdown with its European Union partners Wednesday by unveiling a "no austerity" budget that aims to bring its deficit within European guidelines two years later than previously promised.

German Bonds Advance a Third Week as Euro-Area Inflation Slows

German 10-year bonds climbed for a third week as a report showed inflation slowed to a five-year low in the euro area, boosting bets the European Central Bank will take more steps to revive the region’s economy.

Poll: Poland seen cutting rates by 25 bps in October

(Reuters) - Poland is likely to cut interest rates by 25 basis points next week to a new all-time low and reduce them by a further 50 points by the end of the first quarter of 2015, according to a Reuters poll.

Bank of England to unveil bank leverage ratio plans this month

(Reuters) - The Bank of England will tell lenders at the end of this month what their key measure of insulation against future crises should be, bringing forward a keenly-awaited announcement from 2015 after draft proposals worried banks and lawmakers.

Italians evade 91 billion euros of taxes per year, economy minister says

(Reuters) - Tax evasion in Italy costs the country around 91 billion euros ($114.75 billion) every year, equal to about six percent of national output, the economy ministry said on Wednesday.

Eurozone inflation slows to five-year low in September

Eurozone inflation slipped again in September, with prices rising at their slowest rate in nearly five years.

Euro zone sentiment worsens in September, inflation expectations fall

(Reuters) - Euro zone economic sentiment deteriorated in September to levels last seen in late 2013 and inflation expectations among households and producers alike continued to fall.

Debt forgiveness could ease eurozone woes

The eurozone debt crisis never went away. It merely acquired a misleading veneer of resolution thanks to grand promises, political chest-thumping and frazzled financial markets that were desperate to believe in happily ever after.

ECB Willing to Weigh More Stimulus If Needed, Coene Says

The European Central Bank would be prepared to enact more stimulus measures if necessary to increase liquidity in the euro area, ECB Governing Council member Luc Coene said.

EU markets watchdog tells banks to investigate stress test rumors

(Reuters) - The European Union's markets watchdog has warned banks they must investigate any rumors about how they have fared in the European Central Bank's banking sector health check, sources familiar with the matter told Reuters.

European Stocks Decline With FTSE 100 After BOE’s Carney

European stocks fell to a four-week low, erasing earlier gains, as U.K. shares dropped after Bank of England Governor Mark Carney said the time to increase interest rates is getting closer.

ECB's plans to revive bank lending leave economists unconvinced: Reuters poll

(Reuters) - Bank lending to private euro zone businesses needs to grow at a 3 percent annual rate on a sustained basis in order to stir inflation, according a Reuters poll of economists who say that is not likely to happen.

EU financial watchdogs warn of funding squeeze

(Reuters) - Three European Union financial watchdogs warned that a funding freeze will hamper their efforts to help Europe avoid another financial crisis.

Draghi Says ECB Actively Managing Balance Sheet

The European Central Bank will actively manage its balance sheet and is willing to implement more stimulus if required to stave off the threat of deflation in the euro area, ECB President Mario Draghi said.

G20 worried about the 'stumbling block' of Europe's slow growth

The G20 group of leading nations have said they are tantalisingly close to adding an extra $2tn (£1.2tn) to the global economy and creating millions of new jobs, but Europe's extended stagnation remains a major stumbling block.

Banks repay loans to ECB after fresh offer of cheaper credit

FRANKFURT, Sept 19 (Reuters) - European Central Bank plans to bolster lending to business were dealt another setback on Friday after banks decided to repay billions of euros of cheap ECB credit, sapping money available to lend to business.

France dodges rating downgrade - for now

(Reuters) - Moody's spared France a fresh downgrade of its debt rating on Friday even though Paris has overrun its deficit targets, warning the outlook was negative in light of difficulties pushing through reforms.

ECB's Praet warns against reading too much into low take-up of TLTROs

(Reuters) - European Central Bank Executive Board member Peter Praet warned on Thursday against reading too much into the low take-up of the first round of four-year ECB loans, stressing that they are part of a broader policy package.

Euro Steady As Tension In Ukraine Worsens

The euro remained below $1.30 on Tuesday despite encouraging trade data out on Monday. The common currency traded at $1.2961 at 10:00 GMT with the Fed’s upcoming meeting and the crisis in Ukraine continuing to weigh.

U.K. Workers Get No Relief as Wage Squeeze to Extend Into 2015

U.K. households will have to wait until the second quarter of next year before the squeeze on their living standards starts to properly ease, according to a Bloomberg survey of economists.

German business lobby group calls EU sanctions a mistake

(Reuters) - The European Union's new economic sanctions against Russia are a "mistake" because they were imposed just as a week-old ceasefire was bringing calm to the embattled east of Ukraine, the leader of a German business lobby group was quoted saying on Sunday.

Euro zone ministers upset by broken French budget promises

MILAN, Sept 12 (Reuters) - France faced harsh criticism on Friday for failing to meet a deadline to put its finances in order, as frustrated euro zone ministers struggled to keep alive their post-crisis strategy for the bloc's stagnating economy.

S&P raises Greece by one notch in latest ratings boost

(Reuters) - Standard & Poor's raised Greece's credit rating by one notch on Friday, the latest ratings boost for the debt-laden country, and said it expected Athens to continue reporting budget surpluses before interest payments in the next few years.

ECB Seeks to Ease Euro-Area Capital Barriers for Lending

Europe’s efforts to boost lending and reduce financial fragmentation won’t succeed unless banks can move money freely between countries, European Central Bank policy makers said this week.

Housing market reaches plateau, say surveyors

The housing market has reached a "plateau", according to a survey of chartered surveyors across the UK. The Royal Institution of Chartered Surveyors (RICS) said the number of house sales agreed in August fell for the first time in two years.

Italy's economic growth will be 'around zero', says PM Renzi

Italy's Prime Minister has said that Europe's third largest economy will see growth of only "around zero" this year.

No new debt for Germany in 2015, first time since 1969

(Reuters) - Finance Minister Wolfgang Schaeuble said Germany would not take on new debt next year for the first time since 1969, underlining the robustness of the country's finances as European partners urge it to do more to boost euro zone growth.

UK manufacturers wary about big increase in investment: survey

(Reuters) - British manufacturers are cautious about increasing levels of capital spending, a trade group said on Monday, raising questions as to whether a recent pick-up in business investment is sustainable in the long term.

Merkel ally lashes out at Draghi over ECB plans to buy 'junk' paper

(Reuters) - An ally of Chancellor Angela Merkel criticized the European Central Bank and its president Mario Draghi in a rare public attack, telling Bild newspaper the ECB's new schemes to bolster lending and buy asset-backed securities would scare Germans.

Pound Weakens Most in a Year as Scotland Vote Adds Uncertainty

The pound had its biggest weekly drop versus the dollar since July 2013 as signs that Scotland’s independence vote will be more closely contested than previously indicated damped demand for the U.K. currency.

Falling investment, inventories, stall euro zone recovery in Q2

(Reuters) - Falling investment and a drop in inventories kept euro zone gross domestic product flat in the second quarter against the previous three months despite growing household consumption and a positive contribution from trade, data showed on Friday.

ECB surprises with rate cut amid recovery fears

FRANKFURT, Germany (AP) — The European Central Bank has cut its interest rates and announced a new stimulus program that involves buying financial assets, a bid to salvage a weak economic recovery.

Why peripheral euro zone debt is worrying investors again

Companies in the peripheral euro zone countries which caused the near-disaster of the euro zone debt crisis are borrowing big again.

Euro hits fresh one-year low, hamstrung by Ukraine turmoil

SYDNEY/SINGAPORE, Sept 1 (Reuters) - The euro hit a fresh one-year low on Monday, as heightened worries about the crisis in Ukraine kept the currency on the defensive ahead of a European Central Bank policy meeting later this week.

Germany posts budget surplus as pressure rises to boost growth

(Reuters) - Germany posted a budget surplus of 16.1 billion euros in the first half of 2014, highlighting the strength of the country's finances at a time when Berlin faces pressure to loosen the fiscal reins and spend more to boost flagging growth in Europe.

EU summit on economy in Italy October 6

(PARIS) - French President Francois Hollande announced on Saturday that EU leaders would hold a summit in Italy in early October aimed at boosting growth and jobs in the bloc.

IMF 'confident' Lagarde can continue despite investigation

The International Monetary Fund (IMF) has expressed confidence in its leader Christine Lagarde, despite her being investigated for negligence in France.

Eurozone gripped by deflation fears as inflation rate hits five-year low

Fears that the eurozone could tip into outright deflation have been fanned as the inflation rate in the currency bloc hit a new five-year low of 0.3%.

France's jobless total rises sharply in July

The number of people looking for work in France rose 0.8% in July to a new record of 3,424,400. The sharp rise confirms a longer term trend with the number of jobless rising 4.3% over the last year.

GLOBAL MARKETS-Euro, bond yields dip as looser ECB policy eyed

LONDON, Aug 26 (Reuters) - The euro hit its lowest level against the dollar in nearly a year and euro zone government bond yields fell to record lows on Tuesday on expectations the European Central Bank might ease monetary policy as soon as next week.

Germany should drive economic recovery in Europe, IMF chief says

Geneva (AFP) - IMF chief Christine Lagarde wants Germany to play a bigger role in propelling economic recovery in Europe, she hinted in an interview broadcast on Monday, suggesting that German wages should rise.

European Stocks Climb After Draghi Signals More Stimulus

European stocks rose to their highest level this month, following two weekly increases, after European Central Bank President Mario Draghi signaled policy makers are ready to add stimulus.

E.C.B. Chief Seeks Tax Cuts and State Spending

JACKSON HOLE, Wyo. — Mario Draghi, president of the European Central Bank, said Friday that European governments needed to move from a focus on austerity to a “more growth-friendly composition of fiscal policies.”

Serbia Won’t Join EU Sanctions Against Russia, Vucic Says

Serbia won’t join European Union sanctions against Russia even as the Balkan nation sticks to its plan to continue membership talks with the world’s largest trading bloc, Prime Minister Aleksandar Vucic said.

German finmin sees quick economic recovery after weak second quarter: Spiegel

(Reuters) - Germany's finance ministry expects Europe's biggest economy to bounce back after a weak second quarter and thinks growth may even exceed the government's current forecast of 1.8 percent for this year, Der Spiegel magazine reported on Sunday.

Draghi says ECB ready to adjust policy if inflation drops further

(Reuters) - The European Central Bank is prepared to respond with all its "available" tools should inflation in the euro zone drop further, ECB President Mario Draghi said on Friday in remarks that opened the door to possible policy action in September.

UK retail sales growth falls to eight-month low, public finances weak

(Reuters) - British retail sales grew in July at the slowest annual rate since November of last year, while the government failed to make much of an inroad into public borrowing, data showed on Thursday.

French business activity stagnant in August: PMI

(Reuters) - French business activity was stagnant in August, a survey showed on Thursday, as an improvement in the services sector could not fully offset the worst performance in over a year in manufacturing in the euro zone's second-biggest economy.

ECB in policy limbo, boxed in by its own plans

(Reuters) - The European Central Bank is in a policy no man's land, bombarded by news of a stagnating euro zone economy but hesitant to move forward with new stimulus until measures it loaded in June have ignited.

Angela Merkel scolds Italy and France over the faltering eurozone recovery

Angela Merkel has delivered a sharp rebuke to Italy and France for hindering the eurozone's recovery by breaking longstanding fiscal rules.

Euro-Area Pickup Stalls as Big Economies Fail to Grow

The euro area’s recovery unexpectedly stalled in the second quarter as its three biggest economies failed to grow, underlining the vulnerability of the region to weak inflation and the deepening crisis in Ukraine.

German slump, stagnant France paint dismal euro zone picture

(Reuters) - Germany's economy shrank in the second quarter and France again failed to conjure up any growth, snuffing out any signs of a recovery in the euro zone which is now also weighed down by tit-for-tat sanctions with Russia.

French lawmaker says 'unavoidable' to scrap deficit target : Les Echos

(Reuters) - The head of France's ruling Socialist party told Les Echos newspaper on Wednesday that it was "unavoidable" that France would abandon an EU target to cut its public deficit to 3 percent of GDP next year.

Bank of England edges closer to interest rate rise

The Bank of England signalled it is edging closer to a rise in interest rates but admitted it is in the dark about the true state of the British economy.

German Economy Backbone Bending From Lost Russia Sales

MWL Apparate Bau GmbH, based in the eastern German town of Grimma, has relied on strong ties with Russia to bolster business.

Europe's fragile economy put to test as Ukraine, Iraq sour mood

(Reuters) - Investors will gauge the strength of the euro zone's fragile economy this week as escalating conflicts in Ukraine and Iraq darken the mood globally.

Something's got to give in Italy: better it be Draghi with a bag of cheap loans

European Central bank boss Mario Draghi came to London last month to criticise his fellow Italians.

German Bonds in Longest Winning Run Since 2012 on Haven Demand

German 10-year government bonds rose for a fifth week, the longest run since the height of the euro-region’s debt crisis, as geopolitical tensions prompted a surge in demand for the safest fixed-income securities.

UK trade deficit widens in June, but construction recovers

Exports of British goods to countries outside the European Union fell to their lowest level since September 2011, coinciding with the pound hitting a near six-year high against the dollar.

Weak German industry output adds to signs of second-quarter slowdown

(Reuters) - German industrial output rose just 0.3 percent on the month in June, missing a forecast rise of 1.3 percent, as fears over the crisis in Ukraine weighed, adding to signals that Europe's largest economy may have stalled in the second quarter.

Rising tension over Ukraine forces down European markets

Growing fears of a military conflict between Russia and Ukraine sent shares lower on Europe's bourses and pushed the euro to a nine-month low against the dollar.

Scottish independence 'Yes' camp 'deluding itself' on currency union

Scottish independence advocates are “deluding” themselves if they believe that the country would be allowed to remain in a currency union with the UK whilst controlling its own financial affairs, one of Europe’s major banks has said.

Analysis - Will Europe's banking 'big bang' loosen lending?

PARIS (Reuters) - In the biggest advance in European integration since the launch of the euro in 1999, the European Central Bank will take charge of supervising banks from Helsinki to Lisbon in November after subjecting their books to unprecedented scrutiny.

FOREX-Euro slides below $1.34, eyes on Fed and U.S. GDP data

LONDON, July 30 (Reuters) - The euro fell below $1.34 on Wednesday for the first time since last November on concern that German inflation data due at 1200 GMT will add to the case for the European Central Bank to pump more money into a struggling economy.

Portuguese Bonds Drop With Italy’s as Global Turmoil Halts Rally

Portuguese government bonds fell for the first week since July 11 as financial turmoil deepened at Banco Espirito Santo SA and a selloff in stocks damped demand for higher-yielding assets.

Falling prices on radar as euro inflation drops again

(Reuters) - Annual inflation in the euro zone fell in July to its lowest since the height of the financial crisis in 2009, keeping the risk of deflation on policymakers' radar but unlikely to spur the European Central Bank into further policy action.

German Unemployment Drops for First Time in Three Months

German unemployment fell for the first time in three months in a sign that Europe’s largest economy is gathering pace after a second-quarter slowdown.

Italian Senators dig in against Renzi's reform plans

(Reuters) - Italian Senators clashed furiously on Tuesday over Prime Minister Matteo Renzi's plan to strip the upper house of most of its powers as part of a wide-ranging package of reforms to Italy's system of government and economy.

Russia sanctions threaten to blow euro zone off course

(Reuters) - The knock to confidence from harsher European sanctions on Russia could spoil the euro zone's budding economic recovery even if it shrugs off the fallout on trade.

Germany to reject EU-Canada trade deal: Sueddeutsche newspaper

(Reuters) - Germany is to reject a multi-billion free trade deal between the European Union and Canada which is widely seen as a template for a bigger agreement with the United States, a leading German paper reported on Saturday.

IMF urges 'steady implementation' of Ukraine loan program

(Reuters) - The International Monetary Fund urged Ukraine's leaders on Friday to press forward with "steady implementation" of economic reforms agreed with the fund, a day after the prime minister tendered his resignation.

Eurogroup's Thomas Wieser sees euro zone reforms biting slowly

VIENNA: Reforms to cut public and private debt in euro zone countries could take up to a decade to have a sustainable effect on growth in the bloc, the head of the Eurogroup's working group told a newspaper.

UK economy back at pre-crisis level

The UK economy grew by 0.8% in second quarter of 2014, official figures show The figures, from the Office for National Statistics (ONS), show the economy is now 0.2% ahead of its pre-crisis peak, which was reached in the first quarter of 2008.

Euro zone business on solid footing in July but firms cut prices - PMI

(Reuters) - The euro zone's private sector expanded at the fastest rate in three months in July, although faster growth in new business was driven mainly by companies cutting prices again, surveys showed on Thursday.

Euro zone's debt rises in first quarter, set to peak this year

(Reuters) - Euro zone public debt rose to 93.9 percent of economic output in the first quarter of this year, approaching the peak it is expected to reach later in 2014, official data showed on Tuesday.

Europe Stocks Rally on Ukraine as Gold Drops; China Share

July 22 (Bloomberg) --European equities advanced with Russian stocks while gold and Treasuries slipped as the stand-off surrounding a downed passenger jet in Ukraine eased.

Ukraine crisis hits European shares; auto and leisure lag

LONDON, July 21 (Reuters) - European shares fell on Monday as fighting erupted in eastern Ukraine, the first major eruption of violence there since a Malaysian airliner was shot down last week.

French economy minister blames the EU for the lack of growth, seeks new economic strategy

PARIS – France's economy minister is blaming European authorities for the lack of growth in France and Europe, and says it's time for a new economic policy that shuns austerity measures.

Pound Advances Versus Euro With Inflation Gap Most Since October

The pound gained versus the euro this week as reports strengthened speculation that the U.K. economy is recovering fast enough to withstand tighter monetary policy while other European economies require more stimulus.

Schaeuble says EU must focus on competitiveness, not exchange rate

(Reuters) - Europe must focus on improving the competitiveness of its economy rather than the exchange rate, German Finance Minister Wolfgang Schaeuble said on Friday, brushing aside French calls for EU action to weaken the euro.

Signs of turnaround in international use of euro: ECB

Frankfurt (AFP) - The eurozone attracted more foreign investment in 2013 than in 2012, but the euro's share of foreign exchange reserves and its role in international financing declined slightly, the European Central Bank said on Wednesday.

European Stocks Climb on Chinese Economic Growth Report

European stocks advanced, rebounding from yesterday’s decline, as a report showed China’s economy expanded in line with the government’s target. U.S. index futures and Asian shares were little changed.

BES slide, tumbling German sentiment hit markets

(Reuters) - European stocks and the euro fell on Tuesday after shares in Portugal's biggest listed bank hit a record low, while a plunge in German economic sentiment pushed up borrowing costs for some peripheral euro zone countries.

IMF warns further shocks would stall euro zone recovery

BRUSSELS (Reuters) - Any new shocks could halt the euro zone's economic recovery, spoil improving market sentiment and eventually tip the region into deflation, the International Monetary Fund warned on Monday.

BRICS bank to defy Western clout in global finances

(Reuters) - Leaders of the BRICS emerging market nations meet next week to launch a development bank and emergency reserves fund, an ambitious challenge to Western-run multilaterals that have shaped global finances since the end of World War Two.

UK construction shrinks in May, dampens some second quarter growth hopes

(Reuters) - British construction output suffered a steep fall in May, raising the prospect that overall economic growth may fall short of expectations in the second quarter.

Faltering Germany casts cloud over fragile euro zone

(Reuters) - Germany's faltering economy has cast further doubt over the euro zone's prospects for recovery this year, with no other big country strong enough to pick up the slack. Since late last year, the 18 countries using the euro have been climbing steadily out of a two-year recession.

ECB’s Draghi calls for rules on economic reforms

European Central Bank President Mario Draghi on Wednesday called for a new set of rules for euro-zone members that would apply to economic reforms and be analogous to the standards that govern borrowing by governments.

Monthly house prices for June drop 0.6%, Halifax reports

House prices experienced a bigger monthly fall than analysts had expected in June, knocking £1,100 off the average property value, according to the Halifax.

Italy hits resistance to softer European spending rules

(Reuters) - Italy and its allies will receive no special leeway in meeting EU budget rules, European officials agreed on Tuesday, as Germany resisted attempts to soft-pedal on long-promised spending reforms.

Euro zone Sentix index shows surprise rise in July

(Reuters) - Sentiment in the euro zone showed a surprise improvement in July with investor optimism boosted by the European Central Bank's growth measures and improved expectations for the global economy, according to the Sentix index survey.

IMF chief hints at cut in growth forecasts

Global economic activity should strengthen in the second half of the year and accelerate in 2015, although momentum could be weaker than expected, Christine Lagarde, head of the International Monetary Fund, said on Sunday, hinting at a slight cut in the fund's growth forecasts.

Portugal Aid Balk Highlights Crisis Tools Built for Show

German Finance Minister Wolfgang Schaeuble says the euro area’s firewall isn’t there to be used. Portugal has taken the hint.

Irish GDP revision eases debt target

Research and development (R&D) costs and illegal activities have been added into Ireland's GDP for the first time, enlarging the economy by 10bn euros ($13.6bn; £7.9bn).

Is Europe's troubled union really ready to change?

BRUSSELS (Reuters) - After six decades of relentless if incremental integration, might the European Union be about to go into reverse?

Renzi Says Italy to Push for European Growth Not Ask for Handout

Italian Prime Minister Matteo Renzi said his nation will use the next six months to push for growth across Europe, not to seek leeway for its own benefit.

Eurozone unemployment level sees slight fall

The number of people unemployed in the eurozone dipped slightly in May, but not by enough to dent the unemployment rate.

Euro-Area Inflation Steady at 0.5% Shows Draghi Challenge

The euro-area inflation rate held steady in June at less than half the European Central Bank’s target, underscoring the challenge faced by Mario Draghi as he tries to stoke prices and ignite growth.

First UK poll after Juncker battle shows rising support for EU exit

(Reuters) - Public support for Britain to leave the EU is growing again after falling to a multi-year low, according to the first survey published since EU leaders nominated Jean-Claude Juncker to become the next president of the European Commission.

Euro-Area Bonds Drop as German CPI Data Quells Deflation Concern

Euro-area government bonds fell, with most securities paring a weekly gain, as reports showing German inflation quickened more than economists forecast allayed concern the euro bloc may slip into deflation.

EU leaders signal shift from austerity of euro crisis

(Reuters) - In the latest shift away from the austerity of the euro zone crisis, European Union leaders signaled at a summit that they were ready to give member states extra time to consolidate their budgets as long as they pressed ahead with economic reforms.

Dawdling on law change, Italy may miss out on cheap foreign funding

LONDON, June 26 (Reuters) - Italy, the euro zone's biggest debtor, risks missing out on cheap foreign funding unless the Treasury can win approval to use controversial derivatives to protect itself against currency swings.

S&P's Kraemer: euro zone has much to do to cut debt, boost growth

(Reuters) - Euro zone countries still have much work to do to cut debt and boost growth and their credit ratings are unlikely to rise until they get their economies into better shape, a senior Standard & Poor’s official said on Tuesday.

German Ifo business morale in June hit by Ukraine, Iraq

BERLIN (Reuters) - German business sentiment weakened more than expected in June as concern grew among companies in Europe's largest economy that tensions in Ukraine and Iraq would hurt their business.

'HS3' high-speed rail link needed to boost north - Osborne

A so-called HS3 high-speed rail link in the north of England between Manchester and Leeds could help to create an economic area to rival London, Chancellor George Osborne is to say.

European Union cracks down on corporate tax avoidance scheme

BRUSSELS: The European Union is closing a loophole that allows companies to shift some of their profits between different country divisions to avoid taxation.

EU can be flexible on fiscal consolidation, but reforms first: officials

(Reuters) - The European Union could be flexible about the time members need to fix their budgets if they reform to boost growth, but it must first have proof such efforts are taking place, EU policymakers said on Thursday.

Euro-Zone Consumption Gap Widens

The gap between individual consumption in Germany and those euro-zone countries pursuing austerity programs continued to widen last year, according to figures from the European Union's official statistics agency Wednesday.

Irish finance minister says new EU calculation could add over 1 percent to GDP

(Reuters) - New EU rules on calculating economic output could boost Ireland's gross domestic product by over 1 percent and mean a little less austerity next year, Finance Minister Michael Noonan said on Wednesday.

No wage rises until jobless rate falls to 5% says MPC member

Average wages may not rise until the jobless rate has fallen to 5%, a Bank of England policymaker has suggested.

Germany, France Seek Eased Euro Deficit Rule Amid Austerity

Germany and France are seeking to ease the euro area’s deficit rules to reflect efforts by governments to fix their economies, German Economy Minister Sigmar Gabriel said.

Funds keep faith with euro money markets as rates dwindle

LONDON (Reuters) - The European Central Bank's decision to cut its deposit rate below zero is unlikely to cause a stampede out of euro zone money market funds, with some investors expecting yields to stay positive in the near term.

Iraq crisis, UK rate warnings hit European shares

LONDON, June 13 (Reuters) - Major European stock indexes ended lower on Friday, with British equities slipping on the possibility of an early rate hike and travel stocks hurt by concern the Iraq conflict will raise oil prices.

Banks to return 3.7 billion euros in crisis loans to ECB next week

(Reuters) - Banks will return 3.712 billion euros ($5.05 billion) in long-term crisis loans to the European Central Bank next week, ECB data showed, after the ECB started to charge banks for holding their excess cash overnight and promised more long-term loans.

UK business minister urges BoE to clamp down on risky mortgages

(Reuters) - British business minister Vince Cable on Thursday urged the Bank of England on clamp down on mortgages with high loan-to-income ratios to stop booming house prices from harming the economy.

Euro zone countries agree direct bank recapitalisation framework

BRUSSELS (Reuters) - Euro zone governments agreed on Tuesday that the bloc's bailout fund will be able later this year to help to recapitalise failing banks which have written off 8 percent of their liabilities.

ECB policymakers say can do more if needed

(Reuters) - European Central Bank policymakers stressed on Tuesday that they could still do more to support the euro zone economy after last week announcing a package of measures to ward off the threat of deflation.

Politics poses biggest risk to euro zone endurance

PARIS (Reuters) - With the euro zone bond market back to irrational exuberance and economic growth returning slowly if unevenly, politics rather than economics now poses the biggest threat to the long-term endurance of Europe's single currency.

Russian companies prepare to pay for trade in renminbi

Russian companies are preparing to switch contracts to renminbi and other Asian currencies amid fears that western sanctions may freeze them out of the US dollar market, according to two top bankers.

Euro Bonds Surge on ECB Shock Waves

Euro-area government bonds surged this week, propelling yields across the currency bloc to record lows, as an unprecedented package of European Central Bank stimulus measures added fuel to this year’s rally.

Greek economy shrinks at slowest pace since 2008

(Reuters) - Greece's economy shrank in the first quarter at its slowest annual pace since late 2008 when its protracted recession began, data showed on Friday, supporting projections that Athens will emerge from a crippling six-year slump this year.

Euro-Zone Retail Sales Rose in April

Retail sales across the 18 countries that share the euro rose for the fourth straight month in April, and at the fastest year-to-year pace since early 2007.

Euro-Zone Business Activity Slows

Business activity in the euro zone slowed more sharply in May than first estimated, a sign that weak prices are undermining the area's recovery from its debt crisis.

Ukraine Bond Repayment Belies Gutted Economy: East Europe Credit

As Ukraine repays its $1 billion dollar bond, sentiment for the nation’s notes is souring with the economy withering amid fighting between government forces and pro-Russia separatists.

Eurozone inflation fall raises prospects of damaging deflationary spiral

The European Central Bank will almost certainly act this week to breathe life into the eurozone's struggling economy after a shock fall in inflation, economists said.

EU asks Italy for tighter 2014 budget to curb debt

(Reuters) - The European Commission asked Italy on Monday to tighten its budget this year to rein in an excessive public debt but fell short of opening a disciplinary procedure against the euro zone's third largest economy.

Draghi Gets Ready to Go Negative as Inflation Sinks

Mario Draghi is preparing to lead the European Central Bank into the unknown. From negative interest rates to conditional liquidity for banks, the ECB president and his fellow policy makers have signaled all options are up for discussion when they meet on June 5.

Rebound in euro zone credit ratings: overdue or overshoot?

(Reuters) - Rating agencies are falling over each other to upgrade the euro zone's crisis countries, but with debt levels in most still rising and growth and reforms slow, the question is whether the new-found optimism has swung too far.

Britain's economic prospects brightest in more than a decade, survey finds

Britain's economic prospects are the brightest they have been in more than a decade and optimism among consumers has surged to its best level in nine years, according to separate reports published on Friday.

Asian shares at one-year high, bonds fly high on ECB hopes

(Reuters) - Global shares flirted with an all-time peak on Thursday while the euro touched its weakest in more than two months on bets the European Central Bank would unveil new stimulus measures next week.

EU to place efficiency at heart of energy security plans

Brussels could propose tougher energy efficiency targets for member states by September, the EU’s energy chief Gunther Oettinger revealed today.

ECB goes on 300 million euro spending spree for bank watchdog

(Reuters) - The European Central Bank will spend 300 million euros ($410 million) this year and next in building an elite group to monitor top banks, with the lion's share spent on generous pay for many of its staff.

Stocks rise, euro drops as EU and Ukraine election results come in

European stock markets moved higher Monday as election results rolled in from the European Union and Ukraine. Germany's DAX index led the way with a 1.3% rise.

Hungary Economic-Sentiment Index Drops from 16-Year High

Hungary’s economic-sentiment index dropped in May after turning positive for the first time in almost 16 years in April, as business and consumer confidence deteriorated after Prime Minister Viktor Orban’s re-election.

The eurozone is starting to recover. Now the new phase of its crisis begins

Brace yourself for the next phase in the eurozone crisis, due to come around any time soon. That might seem an odd thing to say.

Spain wins third credit upgrade as economy brightens

Madrid (AFP) - Standard and Poor's boosted Spain's credit rating on Friday, hailing signs of economic recovery despite massive unemployment in the eurozone's fourth-biggest economy.

Euro zone first-quarter growth disappoints, puts pressure on ECB to act

(Reuters) - The euro zone economy grew much less than expected at the start of the year and inflation remained locked in the 'danger zone' below 1 percent, increasing pressure on the European Central Bank to ease monetary policy at its next meeting in June.

Euro zone crisis propels German immigration to 20-year high

BERLIN (Reuters) - Net immigration to Germany leapt by over 18 percent to a 20-year high in 2013, fuelled largely by migrants from euro zone debt-crisis states Italy and Spain as well as a continued influx of Poles, data from the Statistics Office showed on Thursday.

GLOBAL ECONOMY-Euro zone business stays strong, China mending

LONDON/BEIJING, May 22 (Reuters) - Private business activity in the euro zone grew at just under its fastest pace in three years this month, while contraction in China's vast manufacturing sector slowed to its weakest pace this year, surveys showed on Thursday.

Interest rate hikes would hit British car industry: UK Hyundai CEO

(Reuters) - A series of even small rises in British interest rates would be a big blow to the country's car industry, the CEO of Hyundai UK (005380.KS) told Reuters on Thursday.

Ireland’s Rating Raised by Moody’s as Debt Burden Eases

Ireland’s rating was raised for the second time in less than six months by Moody’s Investors Service as the economy stabilizes and concern that the euro-region may be under threat eases.

Euro zone first-quarter growth disappoints, puts pressure on ECB to act

(Reuters) - The euro zone economy grew much less than expected at the start of the year and inflation remained locked in the 'danger zone' below 1 percent, increasing pressure on the European Central Bank to ease monetary policy at its next meeting in June.

Greece denies plan for retroactive tax on foreign bondholders

(Reuters) - Greece's government on Thursday denied it had instituted a retroactive tax on foreign holders of Greek bonds, and revoked a tax document that spooked investors and sent yields to near two-month highs.

Pound Bulls Unfazed by Carney’s Tone Say Rally Isn’t Over

Pound bulls still have reason to be optimistic following the Bank of England’s attempts to temper interest-rate expectations, according to firms from Bank of New York Mellon to Mizuho Bank Ltd.

ECB Channels Trichet’s Strong Vigilance to Signal Easing

The European Central Bank is preparing multiple measures against too-low inflation that could be used as soon as next month, policy makers said.

Pensions staff axed after exodus from annuities

The troubled pensions provider Just Retirement yesterday admitted it will be forced to cut jobs across its 800-strong workforce due to radical reforms in March’s Budget.

IMF's Lagarde calls for more ECB stimulus: paper

(Reuters) - Christine Lagarde, managing director of the International Monetary Fund, has repeated calls for more stimulus from the European Central Bank to keep at bay the risk of persistently low inflation in the euro zone.

Italy's Renzi says to use EU presidency to push for budget flexibility pact

FLORENCE, Italy (Reuters) - Italy will propose offering European Union member states that undertake structural reform more flexibility on budget rules when Rome assumes the presidency of the 28-member bloc later this year, Prime Minister Matteo Renzi said on Friday.

Double ratings boost for Portuguese economy

Lisbon (AFP) - The Portuguese economy has received a double boost as ratings agency Moody's raised its debt rating one notch to Ba2, hours after fellow agency Standard & Poor's upgraded the country's credit outlook.

Lithuanian President Cites Russia Threat in Election Race

Lithuanian President Dalia Grybauskaite used the last debate before for the May 11 election to focus on Russia’s expansionism, which is fueling concern in the Baltic countries.

Draghi, worried by strong euro, says ECB poised to act as soon as June

(Reuters) - The European Central Bank is ready to take action next month to boost the euro zone economy if updated inflation forecasts merit it, its president said on Thursday, warning outsiders not to pressure the bank into action.

Euro Rises on Upbeat Economic Data

The euro surged to its highest level against the dollar in seven weeks after a run of upbeat European manufacturing and services data.

Euro zone businesses off to bumper start in second quarter: PMI

(Reuters) - Euro zone businesses had a solid start to the second quarter of the year with activity picking up at its fastest pace in almost three years, surveys showed on Tuesday, suggesting a broad-based recovery is taking hold in the bloc.

German manufacturing sector expands for 10th straight month: PMI

BERLIN (Reuters) - Germany's manufacturing sector grew for a tenth consecutive month in April, helped by rising output and orders, a survey showed on Friday, suggesting this important branch of Europe's largest economy started the second quarter on a strong footing.

French PM Valls says euro too strong

(Reuters) - French Prime Minister Manuel Valls said on Saturday the euro was too strong and that President Francois Hollande would take initiatives to boost growth and employment after the May 22-25 European elections.

Spain Leads Bond Rally With Yields Falling to Records

The government bonds of Spain, Italy and Ireland rose this week, pushing the nations’ 10-year yields to record lows, as improving economic data and the prospects of additional European Central Bank stimulus buoyed demand.

Euro Unemployment Holds Near Record Amid Factory Gains

The euro-area unemployment rate held near a record, even as manufacturing grew at the fastest pace in three months, adding to mixed signals about the 18-nation currency bloc’s recovery.

Greece eyes extension of rescue loans, more bond issues

(Reuters) - Greece will formally propose stretching the maturity of its international rescue loans from about 30 years to up to 50 as part of a push to make its debt sustainable, a senior Greek finance ministry official told Reuters on Wednesday.

'UK should get out of the EU,' says former French PM

Britain should leave Europe because it is killing the European Union dream, a former French Prime Minister has said.

Chaos and control: Europe's debt crisis from two perspectives

(Reuters) - Perhaps the darkest moment of the euro zone debt crisis came in the middle of 2012 when Greece stood on the brink of being forced out of the currency bloc and a question mark hung over whether Cyprus would remain in if Athens left.

ECB's Constancio watching more than just April inflation data

(Reuters) - The European Central Bank's vice president said on Monday that April's inflation figures due later this week should not alone trigger a policy change because "it's not just one or two numbers that matter".

Deflation, emerging market fears set scene for tough EU bank tests

(Reuters) - Fears of euro zone deflation, emerging markets turmoil and a determination not to repeat past mistakes mean European regulators are likely to come up with the toughest set of tests for the region's banks that they have ever faced.

Euro Zone Budget Deficit Hits Post-Crisis Low

The combined budget deficit of the euro zone's 17 governments fell below the currency area's target in the final quarter of last year, for the first time since the onset of the financial crisis in 2008.

Exclusive: UK business lobby makes U-turn over Scottish anti-independence campaign

(Reuters) - Britain's most prominent business lobby group wants to reverse its decision to be an official campaigner against Scottish independence, after some of its members quit over its stance.

EU in slow progress on deficit cuts

New figures from the European Commission show that EU governments are gradually making progress with their financial problems.

M&A talk lifts European shares, euro dips to two-week low

LONDON (Reuters) - M&A talk in the pharmaceutical sector lifted European shares on Tuesday, but failed to support the euro, which dipped to a two-week low against the dollar as ECB policymakers renewed efforts to weaken it.

German growth to slow after strong first quarter: finance ministry

(Reuters) - German economic growth will slow in the second quarter after an unusually mild winter gave Europe's largest economy a boost in the first three months of 2014, the Finance Ministry monthly report said on Tuesday.

Germany's Merkel Gets Tough on Russia

Angela Merkel wasn’t in a hurry to inflict economic pain on Moscow. Cautious, pragmatic, and mindful of her country’s business ties to Russia, the German chancellor doggedly tried to defuse the Ukraine crisis through back-channel diplomacy and frequent phone calls with Russian President Vladimir Putin.

Bankers win friends again in Europe with lure of easy money

BRUSSELS (Reuters) - Jacques de Larosiere says he is an isolated and modest man. Yet the 84-year-old former head of the International Monetary Fund is one of the most influential voices in European and global finance.

Euro zone inflation sticks in 'danger zone', keeps ECB under pressure

(Reuters) - A drop in March euro zone inflation to its lowest level since November 2009 was confirmed on Wednesday, keeping pressure on the European Central Bank to intervene if prices do not rebound.

Did Europe misdiagnose debt crisis and make it worse?

(Reuters) - At the height of the euro zone debt crisis, with Portugal's economy nearing collapse, the European Commission told the government in Lisbon that it had to slash wages if it was ever going to boost competitiveness and grow again.

Russia woos French business elite as sanctions loom

(Reuters) - Russia sought to woo the French business elite on Wednesday as the threat of tougher sanctions over the Ukraine crisis loom with a Franco-Russian association warning of job cuts in France as a result of restrictions.

Euro strength here to stay, unless ECB steps in

LONDON/FRANKFURT (Reuters) - Many of the factors driving the euro exchange rate to levels that have set off alarm bells at the European Central Bank are unlikely to go away on their own, part of the reason the bank has been threatening action.

UK inflation falls to 1.6% in March

The UK inflation rate as measured by the Consumer Prices Index (CPI) fell to 1.6% in March from 1.7% in February, according to the Office for National Statistics (ONS).

Eurozone industrial output grows 0.2% in February

Industrial output in the 18-nation eurozone grew by 0.2% in February, in line with analysts' expectations.

Tax dodging: George Osborne plans to strengthen criminal law

George Osborne is planning to make it easier to impose jail terms or heavy fines on British residents using offshore tax havens to cheat the exchequer out of billions in revenue.

France's odd couple push Europe to re-think growth

PARIS (Reuters) - One is a balding, bespectacled safe-pair-of-hands known for his negotiating skills; the other a firebrand orator of the French left who made his name riling big business, Brussels and Berlin.

Tax burden on wages in rich countries rose again in 2013: OECD

(Reuters) - Taxes on wages rose across industrialized countries last year, as governments sought to reduce budget deficits blown out by efforts to tackle years of economic weakness following the financial crash.

Greece returns to bond markets, says end of bailout nears

LONDON/ATHENS, April 10 (IFR/Reuters) - Two years after nearly crashing out of the euro zone, Greece returned to the bond market on Thursday with investors hungry for high returns scooping up its debt in a 3-billion euro deal that could mark the beginning of the end of its bailout.

Euro-Area Bonds Rise on Fed Minutes as Greece, Ireland Sell Debt

European government bonds advanced after Federal Reserve minutes damped speculation U.S. policy makers are moving toward raising interest rates, and as Greece returned to debt markets for the first time since 2010.

Independent Scotland would face immediate $38.52 billion debt: report

(Reuters) - An independent Scotland would face an immediate debt repayment of 23 billion pounds ($38.52 billion) to the UK Treasury, British media reported, citing a leading economics research body's estimate.

Greek Crisis Legacy Tests Samaras Bid to End Market Exile

Antonis Samaras’s mission to end Greece’s exile from bond markets faces a reality check this week as data shows how deeply the economy remains mired in deflation with the worst jobless rate in the euro area.

Race for top EU jobs turns murkier before elections

PARIS (Reuters) - The race for the European Union's top leadership jobs has turned murkier with news that Finland's prime minister is stepping down to seek a European role while France is touting its former finance minister as its nominee for a European Commission post.

GLOBAL MARKETS-Asia tense before US jobs test, euro nurses losses

SYDNEY, April 4 (Reuters) - Asian markets put discretion before valour on Friday as investors counted down the final hours to the U.S. jobs report, while the euro nursed a grudge after the European Central Bank opened the door to more aggressive easing, albeit not just yet.

ECB models trillion euro asset purchase program: newspaper

(Reuters) - The European Central Bank has modelled the effects of buying a trillion Euros of assets to ward off deflation, a German newspaper reported on Friday, a day after the ECB's president said radical policy action might be needed.

OECD Warns Euro Area of Higher Deflation Risks

BRUSSELS--Deflation risks in the euro area have risen and the European Central Bank should keep its interest rates at near zero over the medium term to tackle them, the Organization for Economic Cooperation and Development said in a report Thursday.

German unemployment falls by more than expected in March

German unemployment fell by more than expected in March as the economy was boosted by the mild winter weather.

UK mortgage lending falls in February

Mortgage lending saw a surprise decline in February but credit conditions brightened for Britain’s smaller businesses, Bank of England figures showed today.

Euro zone inflation drops to lowest since 2009

(Reuters) - Euro zone inflation hit its lowest level since November 2009 in March, a shock drop that raises expectations the European Central Bank will take radical action to stop the threat of deflation in the currency bloc.

Spain Falls Into Deflation, Upping Pressure On ECB

MADRID (AP) — Spain's inflation rate dipped into negative territory this month, official data showed Friday, a development likely to add pressure on the European Central Bank to ease its monetary policies.

Euro zone banks slow crisis loan returns as extra cash falls

FRANKFURT (Reuters) - The pace at which euro zone banks are repaying their crisis loans to the European Central Bank has slowed significantly as extra cash in the system reaches critically low levels.

Euro-Area Economic Confidence Increases More Than Expected

Euro-area economic confidence increased more than analysts forecast in March, easing pressure on the European Central Bank to take action next week to counter low inflation and spur growth.

EU sets out plans to free finance for investment

(Reuters) - The European Union will look for ways other than the region's banks to finance infrastructure projects and invest in start-up companies, according to plans the EU published on Thursday.

Finland to raise taxes, cut spending to bring down deficit

(Reuters) - The Finnish government will raise taxes and cut spending to bring down the budget deficit, Prime Minister Jyrki Katainen said on Tuesday.

Euro zone inflation could stay low for longer than expected, says Bank of Finland

HELSINKI (Reuters) - Inflation in the euro zone could stay low for longer than previously thought, potentially causing difficulties in rebalancing the economy, the Bank of Finland said in its quarterly bulletin.

Scots Independence Debate Fails to Budge Voters in Monthly Poll

The debate over whether Scotland should become an independent country is failing to convince voters to switch sides even as the rival arguments intensify in the run-up to this year’s referendum, a monthly poll suggested.

ECB won't adopt threshold-based rate guidance: Constancio

(Reuters) - The European Central Bank will not tie interest-rate policy to specific economic thresholds, a top policymaker said on Saturday.

Euro-Area March Consumer Confidence Increases More Than Forecast

Euro-area consumer confidence increased more than economists forecast in March, adding to signs that the currency bloc’s recovery is gaining traction.

Euro zone shares set for biggest weekly gain in 2014

LONDON, March 21 (Reuters) - A top European share index was set for its best week of the year on Friday although stocks exposed to Russia remained sensitive as investors assessed the impact of tit-for-tat sanctions over the Ukraine crisis.

Bankers fear leaks from ECB health check

(Reuters) - Euro zone bankers are worried that sensitive information will leak out before the official publication of the bloc's review of bank balance sheets, triggering speculation and making investors uneasy.

FOREX-Euro flat as Russia says won't annex other parts of Ukraine

NEW YORK, March 18 (Reuters) - A modest easing of geopolitical tensions over Ukraine and a slight increase in U.S. Treasury yields took some premium away from the euro on Tuesday, leaving it flat against the U.S. dollar and weaker against the yen.

German court says euro zone's crisis fund is legal

The highest court in German upheld a 2012 ruling on Tuesday, confirming the legality of the euro zone's new, permanent crisis defense mechanism.

Euro-Area February Inflation Slows, Keeps Pressure on ECB

Euro-area inflation unexpectedly slowed in February, keeping pressure on the European Central Bank to defend the currency bloc against falling prices.

U.K.’s Osborne to Boost Home Building, Extend Help-to-Buy

Chancellor of the Exchequer George Osborne said he will extend the Help-to-Buy program for newly built homes until 2020, and announced plans for a garden city outside London to spur Britain’s housing supply.

Spanish public debt hits new record in 2013

Madrid (AFP) - Spain reported Friday its public debt soared to a new record high in 2013 despite a slew of budget-cutting measures, ballooning to nearly 94 percent of the economy's entire annual output.

Euro Weakens Sharply Following Draghi Comments

The euro weakened sharply, and prices of German government debt rose, after comments by European Central Bank President Mario Draghi raised the possibility of easing measures to stave off deflation in the euro zone.

Irish Bonds Rise, Yields Drop to Record in Market Return

Ireland’s 10-year yield fell to a record as the nation auctioned government bonds for the first time since 2010, the latest sign the euro region’s financial woes are abating.

Time runs short as Europe haggles over banking union reform

BRUSSELS, March 11 (Reuters) - European ministers haggled over how to build a safety net for failing banks on Tuesday, redoubling efforts to avoid an embarrassing delay to the euro zone's centrepiece crisis reform.

Ukraine crisis: World Bank ready to provide $3.8 billion aid

WASHINGTON (AFP) - The World Bank said on Monday it is prepared to offer US$3 billion (S$3.8 billion) in aid to Ukraine this year to support economic reforms and development by its beleaguered new interim government.

ECB to reveal bad loan hurdles for euro zone bank test: sources

(Reuters) - The European Central Bank's stance on how bad loans are defined will be one of the biggest revelations to the euro zone's largest banks when it details on Tuesday how it will test balance sheets, three sources with knowledge of the tests told Reuters.

Euro Holds On To Strength

The euro maintained its strength on Monday even as tension in Ukraine continued.

Christine Lagarde angers Spain with repeat prescription of austerity

Christine Lagarde, the head of the International Monetary Fund, has poured cold water on claims from the Spanish government that the recession is over and the country is on the road to recovery.

No impact on euro zone from Ukraine crisis but potential for trouble is great: Draught

FRANKFURT (Reuters) - European Commission President Mario Draghi said on Thursday that from a purely financial standpoint the crisis in Ukraine should not have much impact on the euro zone.

Bank of England keeps rates on hold at 0.5%

The Bank of England has kept rates on hold at 0.5 per cent, marking the fifth anniversary of ultra-loose monetary policy.

Italy PM Renzi pledges job creation, housing reforms next week

(Reuters) - Italy's new Prime Minister Matteo Renzi pledged on Wednesday to introduce a series of "very important reforms" next week to help create jobs, make housing more affordable and remodel crumbling school buildings.

Spain's February jobless slips 0.04 pc m/m to 4.8 million

MADRID: Spain's government hailed Tuesday a wafer-thin cut in the nation's jobless queues in February, a fresh sign that the labour market is stabilising after the loss of millions of jobs since 2008.

Draghi Sees Some Progress on Euro-Area Bank Lending

European Central Bank President Mario Draghi said that officials are seeing “progress” in lending as a slump in credit eases and surveys signal improvement in loan demand.

Euro zone inflation stabilizes in 'danger zone'

(Reuters) - Euro zone inflation stabilized in the European Central Bank's "danger zone" in February but did not fall as expected, making it less likely the ECB will loosen monetary policy further at its monthly meeting next week.

France Consumer Confidence Eases On Unemployment Worries

French consumer confidence declined slightly in February, erasing the gain logged in the previous month, as concerns over rising unemployment continued to haunt, damping economic expectations.

Euro Could Start Feeling The Effects Of Uncertainty In Ukraine

The euro was steady against the dollar and traded at $1.3682 at 6:45 GMT on Thursday morning. The common currency held its ground against an improving dollar which reached a two week high in the early hours of Thursday.

Euro zone lending contraction compounds ECB headache

FRANKFURT (Reuters) - Lending to households and firms in the euro zone fell again in January and money supply growth remained subdued, adding to pressure on the European Central Bank to take action next week to support the economy.

Euro Area Seen Improving While Trailing U.S.-China Growth

The euro-area economy will continue to lag behind its main competitors, the U.S. and China, this year and next as high levels of unemployment and debt hinder the currency bloc’s recovery.

Spain's Rajoy, intent on job creation, ups growth view

(Reuters) - Spain's economy is on track to expand by a better-than-expected 1.0 percent in 2014, allowing moderate job creation for the first time in six years, Spanish Prime Minister Mariano Rajoy said on Tuesday in his annual state-of-the-nation address to Parliament.

Europe shares, euro rise as German morale brightens

LONDON (Reuters) - European stocks rose and the euro strengthened against the dollar on Monday as a surprise improvement in German business morale added to optimism over the euro zone's recovery, although worries over credit tightening in China kept investors wary.

Draghi Says ECB Ready to Act If Inflation Outlook Deteriorates

European Central Bank President Mario Draghi said policy makers are ready to add to stimulus if the outlook for prices deteriorates, though there are currently no signs of deflation in the euro area.

Emerging market storm boon for euro zone's periphery

LONDON, Feb 20 (Reuters) - A reversal in fortunes between southern Europe and once-booming developing economies has triggered a substantial allocation shift by global funds out of emerging assets and into the euro markets they fled two years ago.

Spanish and Italian yields head back towards 8-year lows

LONDON, Feb 21 (Reuters) - Spanish and Italian bond yields fell back towards eight-year lows on Friday in a broad based rally in euro zone debt as uncertainty over the bloc's growth outlook bolstered expectations of further ECB policy easing.

Germany's Schulz details plans for EU Commission presidency bid

(Reuters) - European Parliament President Martin Schulz, a leading candidate to become the next president of the European Commission, laid out his campaign proposals on Thursday, saying it was essential to restore citizens' trust in the European Union.

Europe Mending as Markets Signal Even Portuguese Get Work

It took 11 months and the sale of his 2008 Ford Focus to pay the bills before Nuno Silva found a job as a supervisor at a food warehouse in southern Portugal.

ECB's Praet says reforms could see euro zone growth surprise on upside

LISBON (Reuters) - The European Central Bank has played a key role in stabilizing the euro zone but governments must now keep up economic reforms to allow growth in the bloc to "surprise on the upside", a top ECB policymaker said on Tuesday.

Germany's Merkel to meet coalition leaders Tuesday as crisis looms

BERLIN (Reuters) - Chancellor Angela Merkel will meet leaders of her coalition partners, the Social Democrats (SPD) and Christian Social Union (CSU), on Tuesday to try to resolve a crisis over the forced exit of a conservative minister.

Independent Scotland May Find EU Entry Impossible, Barroso Says

An independent Scotland would find it “extremely difficult, if not impossible” to gain entry to the European Union, Jose Barroso, the European Commission president, said today.

Greek economy contracts less than expected, points to 2014 recovery

Feb 14 (Reuters) - Greece's economy shrank by a smaller-than-expected 3.7 percent last year, marking the first time it has outperformed expectations since a debt crisis took hold and boosting hopes for a recovery this year.

Crisis-hit Portugal sees record tourism numbers in 2013

Bailed-out Portugal welcomed a record number of tourists in 2013, official data showed on Thursday, providing a much-needed boost to the crisis-hit economy.

Italian government in crisis as Renzi calls for change

ROME, Feb 13 (Reuters) - Italian centre-left leader Matteo Renzi called on Prime Minister Enrico Letta to step down on Thursday and said their party, the biggest in the ruling coalition, should choose a new premier to lead the government.

Scottish independence: George Osborne will rule out currency union

UK Chancellor George Osborne will rule out a formal currency union with an independent Scotland, government sources have told the BBC. His position will also be backed by Labour shadow chancellor Ed Balls and Liberal Democrat Chief Secretary to the Treasury, Danny Alexander.

Eurozone watchdog says some banks should go under: FT

(Reuters) - Some of the euro zone's lenders have no future and should be allowed to go under if they fail a health check, the bloc's new banking supervisor told the Financial Times, underscoring a tougher approach to banking oversight.

Business optimism highest for 22 years, says BDO survey

Business optimism in the UK is at its highest level in 22 years, a survey by business consultants BDO has found.

Here comes the euro zone growth data

LONDON (Reuters) - The euro zone and its constituent parts will report fourth quarter economic growth numbers at the end of the week, offering policy makers at the European Central Bank a needed snapshot of the bloc's underlying strength. Recent evidence has been mixed.

Eurozone: record German trade surplus, huge French deficit

Germany, Europe's biggest economy, notched up a trade surplus of 198.9 billion euros ($270 billion) in 2013, the highest since foreign trade data have been compiled.

Inflationary pressures easing in euro zone: ECRI

(Reuters) - Inflationary pressures in the euro zone remain in a downtrend, likely adding to fears about deflation in the 18-nation bloc, an indicator designed to predict cyclical trends showed.

Greek rescue fund worried stress test delays may deter investors

(Reuters) - Leaders of Greece's bank rescue fund are worried that lengthy talks with foreign creditors over a health check of the top four Greek banks may put off investors looking to take part in the privatization of one of the country's biggest lenders.

Euro zone businesses log strongest month in 2-1/2 years in January: PMI

(Reuters) - The euro zone's private sector logged its busiest month in 2-1/2 years in January as buoyant manufacturing growth outshone a more modest expansion in services activity, surveys showed on Wednesday.

Euro zone morale climbs as recovery strengthens

(Reuters) - Optimism in the euro zone about its economic prospects continued to improve in January with a jump in morale in the bloc's two largest economies, Germany and France.

Euro zone deficit shrinks to almost within EU limit in Q3

BRUSSELS (Reuters) - The euro zone's government deficit shrank for the third consecutive quarter in the three months to last September to near the European Union's official limit of 3 percent of economic output, Eurostat data showed on Monday.

France and Germany rebuild ties but EU waits for old axis

Brussels (AFP) - With France and Germany apparently patching up their economic differences, their decades-old axis could retake its place at the heart of Europe, but analysts are waiting for actions to back up the rhetoric.

Spain November current account surplus falls on exports

MADRID (Reuters) - Spain's current account surplus almost halved in November from October, the Bank of Spain reported on Friday, pulled lower by a relatively weak export sector which has been tabbed to play a big part in economic recovery.

Euro sags after inflation data, EM steady after rout

LONDON (Reuters) - The euro fell and the bloc's government bonds rallied on Friday as weaker-than-expected inflation data increased pressure on the European Central Bank to either cut rates or employ other easing tools at its meeting next week.

Greek yields drop as Turkey eases emerging market tensions

LONDON, Jan 29 (Reuters) - Greek bond yields fell on Wednesday after a blockbuster move by the Turkish central bank to hike interest rates stalled an emerging market rout that has hit the euro zone's weakest member.

UK commercial property market strengthening, says British Land

British Land said the UK commercial property market was strengthening with increased investment spreading from London into regional markets.

Euro zone may scrap option of direct bank recapitalisation in 10 years

BRUSSELS (Reuters) - Euro zone governments are considering inserting a "review clause" into their agreement on the direct recapitalisation of banks so that they can reverse or renegotiate the deal in the coming years, officials have told Reuters.

Euro Jobless Record Not Whole Story as Italians Give Up

Euro-area data this week will probably show the region ended 2013 with a record jobless rate that reveals only part of the social legacy of the debt crisis.

Moody's maintains French debt rating

The US agency affirmed the bond rating one notch below the top AAA rating.

Euro zone to assure IMF it will keep funding Greece: EU official

(Reuters) - The euro zone will assure the International Monetary Fund in coming months that it will continue to bankroll Greece, enabling the IMF to disburse its share of international aid to Athens, a senior European Union official said on Friday.

Schaeuble Says Europe’s Back After Years of Euro Crisis

Europe’s back from the years of crisis in the euro area thanks to German-led prescriptions of reform, Finance Minister Wolfgang Schaeuble said.

Euro Zone Government Debt Falls For First Time Since Crisis

The debts of euro-zone governments fell in the three months to September, the first decline since the end of 2007, and an indication that the currency area may be getting on top of one of its most pressing problems.

French taxes may decrease before 2017: minister

(Reuters) - French Finance Minister Pierre Moscovici said on Wednesday that taxes would start to decrease before 2017 if a deficit-cutting program remained on schedule and economic growth allowed the government to revise fiscal policy.

European Stocks Little Changed Following Two-Week Advance

European stocks were little changed after a two-week rally pushed the Stoxx Europe 600 Index to a six-year high. U.S. equity-index futures were also little changed, while Asian shares dropped.

European Banks Face $1 Trillion Gap Before Review, Study Shows

European banks have a capital shortfall of as much as 767 billion euros ($1 trillion) before the European Central Bank’s probe into the financial health of the region’s lenders, according to a study.

UK real incomes to rise at last in 2014, says Bank of England official

British households can look forward to rising real incomes in 2014 after four years in which high inflation has outstripped wage increases, a Bank of England policymaker said.

Euro zone inflation slows in December, IMF flags deflation risk

BRUSSELS (Reuters) - Euro zone inflation slowed in December, the European Union's statistics office confirmed on Thursday, in what the European Central Bank attributed last week to a one-off change in the method of calculating price growth in Germany.

Germany's Economic Growth Slows in 2013 as Euro-Zone Crisis Weighs

BERLIN--German economic growth slowed in 2013 amid uncertainty stemming from the euro-zone crisis, the federal statistics office Destatis said Wednesday.

Greece posts budget surplus in 2013 at central government level

ATHENS: Greece's central government posted a primary budget surplus of 700 million euros last year and will also post a surplus at the more closely-watched general government level, making it eligible for further debt relief, its deputy finance minister said on Tuesday.

Euro-Zone Tensions Flare at U.S. Economics Gathering

Europe’s existential crisis follows the economics profession wherever it travels — even while the region’s troubles simmer without major incident for now.

Eurozone brushes with normal as investors return

PARIS: The Eurozone may be finally returning to some semblance of normality after years of debt crisis that brought fear to the world.

Germans’ Backing of EU Rises to Record as Economy Bucks Gloom

Germans’ support for the European Union rose to a record along with satisfaction about the economy, contrasting with anti-EU groundswells in neighboring countries.

Euro-Area Economic Confidence Increases More Than Forecast

Euro-area economic confidence increased more than economists forecast in December, buoying up policy makers as they grapple with the legacy of the currency bloc’s longest recession.

Euro zone economic morale jumps, easing pressure on ECB to act

(Reuters) - Euro zone economic sentiment rose more than expected in December and inflation expectations picked up, data showed on Thursday, easing some pressure on the European Central Bank to loosen monetary strings further.

Euro zone unemployment at 12%, while U.S. improving

New reports out of the U.S. and Europe Wednesday show a stark divergence between unemployment trends in America and the euro zone.

Italy service sector shrinks for second month in Dec - PMI

ROME (Reuters) - Italy's service sector contracted for the second month running in December, a survey showed on Monday, evidence the economy is still struggling to emerge from its worst recession since World War Two.

Euro Jobless Scourge Seen Defying Leaders’ Growth Pledge

European Union leaders pondering the fruits of a 120 billion-euro ($163 billion) push to jump-start the economy and create jobs can look to data this week for evidence of how little has been achieved.

Greece beats target for taking up EU co-financing funds

ATHENS (Reuters) - Greece beat its target for taking up European Union co-financing funds in 2013 after it streamlined businesses' access to the money, the Development Ministry said on Thursday.

Euro zone corporate lending shrinks at record pace in Nov

FRANKFURT (Reuters) - Lending to companies in the euro zone contracted at the fastest pace on record in November, piling pressure on the European Central Bank to do more to revive the currency bloc's economy.

Lower-rated euro zone debt rallies on improving economic data

LONDON, Jan 3 (Reuters) - Lower-rated euro zone bonds rallied on Friday as a drop in Spanish unemployment and a move by Portugal's president to side with the government on the 2014 budget added to signs the region is coming out of its crisis.

Euro zone factories end 2013 on a high, but France a worry: PMIs

(Reuters) - Euro zone manufacturing grew at the fastest rate since mid-2011 in December on brisk business in Germany and Italy, setting the stage for a solid start to the year after a tumultuous 2013, a survey showed on Thursday.

Euro to be 2013's top-performing major currency

NEW YORK: Although easing back on Tuesday, the euro remained on track to be the world's best-performing major currency this year, while the dollar looked set for its biggest annual gain against the yen since 1979.

Greece will require no further aid after bailout exit: Antonis Samaras

ATHENS: Greece will exit its EU-IMF bailout agreement as scheduled in 2014 and will require no further loans, Prime Minister Antonis Samaras said today.