Did Europe misdiagnose debt crisis and make it worse?

(Reuters) - At the height of the euro zone debt crisis, with Portugal's economy nearing collapse, the European Commission told the government in Lisbon that it had to slash wages if it was ever going to boost competitiveness and grow again.

European Banks Face $1 Trillion Gap Before Review, Study Shows

European banks have a capital shortfall of as much as 767 billion euros ($1 trillion) before the European Central Bank’s probe into the financial health of the region’s lenders, according to a study.

Euro zone to share costs of bank closures gradually: Proposal

BRUSSELS: The cost of closing down a euro zone bank will initially be borne almost fully by its home country, but the obligations of euro zone partners will gradually rise to be shared equitably after 10 years, under the terms of an EU proposal seen by Reuters on Saturday.

Iceland rises from the ashes of banking collapse

A new mood of proud nationalism is emerging in economically resurgent Iceland after an out-of-control banking system sank the country into financial meltdown exactly five years ago.

EU, IMF resisting merger of Greek banks NBG, Eurobank: Paper

ATHENS: Greece's international lenders have asked Athens to halt the merger of National Bank with Eurobank, worried that the resulting lender would be too big for the state to deal with, daily Kathimerini reported on Saturday.

Cyprus becomes fifth eurozone bailout

BRUSSELS: Eurozone finance ministers agreed early Saturday on a bailout for Cyprus, the fifth international rescue package in three years of the debt crisis.

Spain hasn't seen unemployment this bad since Franco

Not since the days of Franco has Spain suffered such high unemployment rates. The country was virtually a feudal, agrarian economy the last time almost six million workers were unemployed.

Spain to miss deficit targets in 2012 and 2013; debt to cross 90 pc of GDP: IMF

MADRID: Spain will miss its deficit targets in 2012 and 2013 and its debt will jump to more than 90 percent of gross domestic product next year as it recapitalises its banking sector, the IMF said on Tuesday.

Inspectors Reject Some Cuts by Greece

ATHENS—Visiting international inspectors on Sunday rejected parts of Greece's proposed austerity plan, forcing the country's coalition government to seek fresh spending cuts to meet creditors' demands.

Spain forces banks to set aside €30bn

Madrid, Spain (TOE) - The Spanish government has announced a new set of financial reforms, particularly aimed at cleaning up country's banking system infested with bad loans.

Spain 'headed towards' 2013 financial crunch

Spain, sucked back into the centre of the eurozone debt crisis, is headed towards a financial crunch in 2013 that may force it to seek international help, analysts warn.

Moody's Issues Credit Warnings To 9 European Countries, Austria, France and U.K. Among Them

Britain's AAA credit rating was thrown into doubt after the ratings agency Moody's said the ongoing euro crisis and a credit squeeze on the banking sector put the country at a higher risk of defaulting on its debts.Moody's credit agency has cut the credit ratings of nine European countries including the U.K.