OECD warns of European recession

The OECD has warned that the eurozone and UK could be entering a recession, and has cut its global growth forecast.

Italy again pays more to borrow

For the second time in as many market days, Italy paid sharply higher borrowing rates in an auction Monday, as investors continued to pressure the eurozone's third largest economy to come up with reforms urgently.

David Cameron: 'British economy is getting worse as euro crisis goes unresolved'

The British economy is getting worse “every day” that the euro crisis goes unresolved, David Cameron has warned, as he told European leaders that the “world cannot wait” any longer for a rescue package to be agreed.

Private investors say biggest risk is the euro

By Alice Ross

The strength of the euro is now the top concern of private investors, according to a survey, surpassing worries over inflation, recession and unemployment.

A crisis in the euro was cited as the economic outcome most feared by 26 per cent of 1,767 people surveyed by Dianomi, the financial marketing group. Just 9 per cent cited a euro crisis as their main concern when the survey was last carried out in January.

Greece’s new bail-out helps, but should have gone further

WHEN Henry Paulson, America’s then treasury secretary, readied a plan to prop up Fannie Mae and Freddie Mac, two teetering housing agencies, in the summer of 2008, he spoke of having a “bazooka” in his pocket. In their response to the sovereign-debt crisis, Europe’s policymakers have tended to favour the peashooter. Their latest salvo in defence of Greece on July 21st produced some favourable initial reports, but the bang has faded. In a strange inversion of the crisis to date, the new bail-out plan seems to have helped the weaker peripherals and hurt the stronger ones.

Eurozone crisis as Ireland's credit rating cut again over economy

The crisis in the eurozone deepened yesterday as Ireland’s credit rating was cut to just one rung above ‘junk’ status.

One of the world’s biggest ratings agencies cut Dublin’s status by two grades and warned further reductions may follow – potentially barring investors from buying Irish government bonds should the rating fall further.