Britain can afford to live with high debt 'forever', says IMF

George Osborne's obsession with reducing Britain's debt mountain may do more harm than good, research by the International Monetary Fund (IMF) has suggested.

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.

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.

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.

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.

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.

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.

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.

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.

UK double-dip recession revised away

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

France warned on growth goals, fiscal targets in doubt

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

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

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

Greek fiscal targets are unrealistic: Bank group

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

Germany agrees 'historic' balanced budget for 2014

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

UK retail sales flat in November

UK retail sales failed to grow in November, adding to fears that consumers are reining in spending ahead of Christmas.

Germany in 'great danger' of falling into recession

Germany is in "great danger" of plunging into recession, four respected think tanks have warned, as they slashed the country's 2013 growth forecasts in half.

Greece's 2013 budget to deepens cuts, sustain recession

ATHENS (Reuters) - Greece will unveil a draft budget for 2013 on Monday which will cut deeper into public spending to impress international lenders but also prolong the economic pain of the Greek people.

Eurozone manufacturing PMI falls again in August

Manufacturing output across the 17-country eurozone shrank again in August, according to a widely-watched survey.

Greek jobless rate hits new record, more pain ahead

ATHENS (Reuters) - Greece's jobless rate climbed to a new record in May, underlining how austerity prescribed to slash deficits and keep bailout funds flowing is hitting the economy on which recovery depends.

Once-resilient Germany catches Europe's crisis fever

FRANKFURT: Germany long appeared immune to Europe's debt crisis, as deep reforms undertaken years ago helped steel the economic powerhouse against the current financial storms lashing its neighbours.