‘Oil prices, euro zone debt crisis downside risks to growth story’

A day after painting prospects of a 9 per cent GDP rate in 2011-12, finance minister Pranab Mukherjee outlined internal and external challenges such as soaring oil prices and high inflation that could pose a threat.

“The challenge before the government and the Reserve Bank of India has been to support the growth process without compromising on price stability,” Mukherjee said at the annual general meeting of industry chamber Ficci on Tuesday. “The task has not been easy, but we are making progress.”

George Soros: Euro debt crisis is spreading

Notable investor and businessman George Soros has commented in the World Economic Forum that the debt crisis in the euro zone is not going to end soon. He pointed out that Europe is currently divided into two economic blocks and the economically stronger countries comprising of Germany and France are ahead of the weaker nations like Romania by miles. This split can very well take its toll on Europe. He virtually echoed the opinion of Nouriel Roubini who recently said that the debt crisis, instead of being over, is going to spread to the other parts of the continent.

Forgotten the euro zone debt crisis?

Financial markets -- and oil in particular -- will doubtless be in thrall in the coming week to Libya and whatever the wave of Middle East and North Africa popular uprisings throws up next.

But the radical change in the Arab world is not the only question mark hanging over investors. Does anyone remember the euro zone debt crisis?

Euro Slips As Irish Elections Revive Debt Worries

The euro weakened sharply Friday, as impending elections in Ireland revived concerns about the euro zone's unresolved debt crisis, which momentarily overwhelmed nervousness about slower U.S. growth and geopolitical instability.

Ireland, one of the 17-nation currency bloc's most troubled economies, has pledged to adhere to an austerity program designed to cut the country's debt load. The conditions are also part of EUR67.5 billion in loans from the European Union and the International Monetary Fund.

EU Official Blasts Crisis Response

BRUSSELS—The European Commission's response to the economic crisis has focused too much on pushing government deficit cuts and not enough on policies to promote job creation and economic growth, a European commissioner said Wednesday.

In a rare public show of internal dissent over the commission's economic policies, Maria Damanaki, the commissioner for maritime affairs and fisheries, also said the European Union should consider restructuring the debt of the euro zone's weakest governments in exchange for accepting the drastic budget cuts and far-reaching economic reforms that Germany and France have sought as part of an overhaul of the bloc's economic policies.