EU leaders gear up for round two of budget negotiations

BRUSSELS: The collapse of EU talks Friday without agreeing a seven-year budget is not calamitous, the bloc will continue to function, but it does heap yet more pressure on a divided European Union mired in an intractable debt crisis.

Analysis: German hint of Greek debt relief raises euro hopes

BRUSSELS (Reuters) - Three years into the euro zone's debt crisis, Germany's finance minister hinted tantalisingly last week at a potential breakthrough.

Italy's lower house approves Monti's budget plans

(Reuters) - Italy's lower house of parliament on Thursday approved a package of budget measures including a sales tax hike and a cut in some payroll taxes, aimed at helping the government reach its deficit-cutting targets.

EU budget summit ends without deal

The Brussels summit has ended without agreement on the 27-strong union's next seven-year budget.

Euro-Area Services, Manufacturing Contract for 10th Month

Euro-area services and manufacturing output shrank for a 10th month in November as the debt crisis hurt confidence, underscoring divergences in the global economy as China’s factories showed the first growth in more than a year.