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.