E.C.B. Chief Seeks Tax Cuts and State Spending

JACKSON HOLE, Wyo. — Mario Draghi, president of the European Central Bank, said Friday that European governments needed to move from a focus on austerity to a “more growth-friendly composition of fiscal policies.”

Euro zone unemployment at 12%, while U.S. improving

New reports out of the U.S. and Europe Wednesday show a stark divergence between unemployment trends in America and the euro zone.

Exclusive: Euro zone bailout fund should be allowed to help close failing banks - document

BRUSSELS (Reuters) - The euro zone's bailout fund should be allowed to lend to help finance the closure of banks in the bloc, a proposal prepared for euro zone finance ministers showed on Monday.

Europe rows back on FTT plans

European countries pressing for a £30bn financial transaction tax are rowing back on their plans in the face of international opposition and concerns about the economic damage the levy could cause.

New Italian premier urges EU to focus on growth

BERLIN (AP) — Italy's new prime minister called Tuesday for European countries to prioritize economic growth over debt reduction, adding his government believes Europe needs to integrate further to overcome its current crisis.

German Economy Shrank in Fourth Quarter

FRANKFURT — The German economy probably shrank in the fourth quarter of 2012, according to an official estimate Tuesday, as companies cut back investment in new plants and equipment because of uncertainty about the future of the euro zone.

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.

Angela Merkel: eurozone crisis will last at least another five years

The eurozone will take at least another five years to recover from the crippling debt crisis that has hampered even Europe's most powerful economy, according to German Chancellor Angela Merkel.

European Countries Slashed Deficits in 2011, Data Show

PARIS — European countries sharply reduced their deficits last year, official data showed Monday, even as their overall debt grew as governments pushed ahead with austerity measures in the face of the euro crisis.

Swiss Economy Unlikely To Slip Into Recession - UBS's Weber

The Swiss economy is unlikely to slip into a recession with gross domestic product probably moving sideways in coming months, UBS AG (UBS) Chairman Axel Weber said Friday.

World Bank chief warns no region immune to European crisis

WASHINGTON (Reuters) - World Bank President Jim Yong Kim on Wednesday warned that most regions of the world will be hurt by the debt crisis enveloping the euro zone and said it was vital to protect the strong economic gains of the past decade in the developing world.

Investors head to Germany despite euro-zone crisis

CHICAGO (MarketWatch)-- Foreign direct investment in Germany increased by almost 7% in 2011, even in the face of the euro-zone crisis, according to a report released Friday by Ernst & Young.

ECB's Patrick Honohan says Greek euro exit would not be 'fatal'

A Greek exit from the eurozone would damage confidence in the single currency bloc but not necessarily be fatal, Irish central bank chief and European Central Bank policymaker Patrick Honohan said on Saturday.

Euro crisis could destroy European Union: George Soros

COPENHAGEN: Billionaire George Soros warned on Monday that the euro crisis is growing deeper, tearing at the fabric of European Union cohesion, because policymakers are prescribing the wrong remedies.

Eurozone unemployment stays at record high

Unemployment in the eurozone stayed at a record high in November as the impact of the sovereign debt crisis rumbled on, according to official figures.

Spain economy shrinks, outlook bleak: minister

Spain's economy will shrink in the last quarter and faces a bleak outlook for the coming months, its new economy minister warned Monday, heightening fears of a fresh recession.