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.

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.

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.

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.

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.

Italy at risk of breaking EU rules, France squeezes through

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

Italy's octogenarian president may be called to rescue again

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

Italy says economy shrank 0.3 per cent in second quarter

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

Lunch hour in Italy serves up some sour economic lessons

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

Stalemate over, Italy's Letta names new government

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

Italy urges high turnout in key election for euro zone

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

Moody's Says Euro Crisis May Lurch Back into Shock

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

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

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

Dow slides 75 points on fears Europe's debt crises escalating

New York. The stock market fell Monday after a jump in Italy's borrowing costs reminded investors of how much work remains to be done to contain Europe's debt problems.

RBS takes £142m hit on Greek bond portfolio

The spectre of the sovereign debt crisis cast a pall over Royal Bank of Scotland's third-quarter results yesterday when the bank admitted that it had taken more hits on its Greek bond portfolio and had sold most of its Italian debt.

BOI Chief Sees Debt Crisis in Spain, Italy as ‘Highly Unlikely’

The euro-region rescue fund should be empowered to bail out banks and buy bonds on the market even though it’s “highly unlikely” that the debt crisis will spread to either Spain or Italy, according to Bank of Italy Director General Fabrizio Saccomanni.

“It would be useful to increase the effective size of the EFSF, which is less than its nominal value, and especially to raise its operative potential,” according to a transcript of a speech Saccomanni delivered today in Berlin. These steps should be taken even in the improbable scenario that the debt crisis extends to bigger countries such as Spain and Italy, he said.