Angela Merkel's toughest political ally turns milder on Greece

MUNICH: German Chancellor Angela Merkel appears to have convinced the toughest audience in her political camp that Greece should be given the benefit of the doubt, and possibly more time to meet its painful savings targets.

Euro Zone Aid? Ask for the Bill in German

Germany's economy has defied gravity month after month, recording growth when many of the country's euro zone peers were struggling to avoid or emerge from recession, but even the so-called "engine" of Europe is now succumbing to the crisis.

Hungary Assails EU Over Budget Changes

BUDAPEST—Hungary's economy minister slammed the European Union Wednesday for forcing a significant toughening of the country's 2013 budget because of doubts that earlier deficit targets can be met.

German government cuts 2013 growth forecast

BERLIN (AP) — Europe's debt crisis and waning economic growth around the world, particularly in emerging markets, prompted the German government to cut its forecast for growth next year.

Austerity has hurt UK growth, says OBR

Austerity measures may have damaged growth in the British economy more than originally assumed, said the Office for Budget Responsibility (OBR), the government’s independent economic forecasting body.