Euro Zone

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Disappearing euro zone inflation set to heighten ECB concerns

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BRUSSELS/FRANKFURT - Euro zone inflation dropped to a fresh five-year low in August, data showed on Friday, something likely to concern the European Central Bank but not force it into immediate policy action.

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Analysis - Draghi dials R for Reform. Line is busy 29 Aug 2014

FRANKFURT - Two years ago, euro zone government leaders hung on Mario Draghi's every word. Now the European Central Bank chief is struggling to get through to them. What has happened to 'Super Mario's' mojo?

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ECB's Nowotny says worried about euro zone economy 29 Aug 2014

ALPBACH Austria - European Central Bank policymaker Ewald Nowotny is worried about the euro zone economy, which he said was showing signs of clouding over.

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Vanishing euro zone inflation seen intensifying ECB policy headache 29 Aug 2014

BRUSSELS/FRANKFURT - If euro zone inflation falls deeper into the 'danger zone' as expected on Friday, it will at the very least complicate the European Central Bank's plans to wait and see whether its recent policy move to ignite the euro zone economy will work.

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German finance minister backs French push for pro-growth investment 28 Aug 2014

PARIS - German Finance Minister Wolfgang Schaeuble on Thursday backed French President Francois Hollande's calls for greater investment to boost growth in Europe, hours after Hollande called for a euro zone summit to coordinate pro-growth measures.

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Germany ready to dilute austerity medicine for reform-minded France 28 Aug 2014

BERLIN - After ramming austerity medicine down the throats of smaller euro zone countries for the past four years, Germany is showing clemency towards its closest ally, France. | Video

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FTSE retreats as Ukraine tension grows 28 Aug 2014

LONDON - A ratcheting up of tension in Ukraine took its toll on Britain's top share index on Thursday, knocking it back from its highest closing level in nearly two months.

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Domestic demand drives Spanish economy as prices fall 28 Aug 2014

MADRID - The Spanish economy grew between April and June at its fastest quarterly rate since before the financial crisis, outpacing the bulk of the euro zone as falling prices help drive a rebound in domestic demand.

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Euro zone sentiment drops to eight-month low as Ukraine effect kicks in 28 Aug 2014

BRUSSELS - Economic sentiment in the euro zone fell to its lowest level in eight months in August, deteriorating across a broad front as the impact of the crisis in Ukraine began to weigh heavily, the European Commission said on Thursday.

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Easing euro zone credit crunch fails to lift pressure on ECB 28 Aug 2014

FRANKFURT - A fall in lending to euro zone households and companies slowed further in July and money supply grew, but not enough to douse expectations that the European Central Bank will ultimately provide further stimulus.

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Germany to decide on military aid for Iraq on Sunday -minister

PRAGUE - Germany will decide on Sunday what specific military aid it will send to Kurdish forces in Iraq to help them fight Islamic State insurgents, with Chancellor Angela Merkel arguing Berlin had to act because hundreds of Germans had joined the insurgents.

IMF board stands behind Lagarde over French probe

WASHINGTON - The International Monetary Fund's board on Friday stood behind the global lender's leader Christine Lagarde, who is facing a criminal investigation in France tied to a political corruption probe dating from 2008.

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Italy's Renzi tries new reform plan as economy sinks

ROME - Prime Minister Matteo Renzi on Friday presented a plan to quicken the pace of Italian justice and break down bureaucratic obstacles to investment as fresh data pointed to a further deterioration in Italy's recession bound economy.

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