BRUSSELS (Reuters) – Euro zone finance ministers will discuss how to fund a bailout of Cyprus on Monday with differing views on whether to make bank depositors pay a share of the cost.

No final decisions are expected until later in March.

Cyprus first requested a bailout in June last year but it was not possible to reach an agreement with the last, communist-led government. A new, conservative government has now taken office and negotiations will intensify in the weeks ahead.

BRUSSELS, March 3 (Reuters) – The ESM euro zone bailout fund
could set up subsidiaries to directly recapitalise banks to
limit the negative impact that buying bank equity would have on
its credit rating and lending capacity, a euro zone official
said.

The Eurogroup of euro zone finance ministers meets on Monday
to discuss which banks should be eligible for direct
recapitalisation from the European Stability Mechanism (ESM).

BRUSSELS (Reuters) – Euro zone finance ministers expect talks on a bailout for Cyprus to gain new momentum on Monday, with a view to a deal with the island’s new government at the end of March, a senior euro zone official said.

New President Nicos Anastasiades promised on Thursday to work for a swift deal for to prop up the Mediterranean island’s banks, which need capital equal to Cyprus’s annual economic output.

BRUSSELS (Reuters) – The euro zone will not return to growth until 2014 and struggling Spain and France will be among those who miss debt-cutting targets as a result, the European Commission said on Friday.

Paris and Lisbon said they would seek more time from Brussels to reach their deficit goals. Madrid has already indicated the same.

BRUSSELS (Reuters) – Most euro zone countries will reduce their budget deficits this year even though the recession in the single currency area is likely to continue but some, like Spain, will badly miss agreed targets, European Commission forecasts showed on Friday.

France and Portugal will also miss their debt targets, the EU’s executive said. All three countries have already indicated as much and will now hope for more leeway from Brussels.

BRUSSELS (Reuters) – Several euro zone countries are likely to miss deficit cutting targets because of a weak economy, the European Commission is expected to forecast on Friday, but they may be granted extra leeway rather than face disciplinary action.

The European Union executive will publish economic forecasts for the 27-nation bloc for 2013 and 2014.

BRUSSELS (Reuters) – The European Commission will check euro zone countries’ draft budgets to verify if they are in line with EU rules and will ask for changes if they are not, under a deal struck on Wednesday with the European Parliament.

After months of wrangling, EU lawmakers backed the new powers for the Commission, the EU executive, to further strengthen euro zone budget discipline and prevent another sovereign debt crisis.

MOSCOW (Reuters) – Financial leaders from the world’s 20 biggest economies may have promised not to devalue their currencies to help exports, but the pledge will do little to keep exchange rates stable.

While G20 finance ministers and central bank governors can promise not to devalue their currencies directly, there can be no guarantees while central banks are pumping money into economies to make them grow again.

MOSCOW (Reuters) – Financial leaders from the world’s 20 biggest economies may have promised not to devalue their currencies to help exports, but the pledge will do little to keep exchange rates stable.

While G20 finance ministers and central bank governors can promise not to devalue their currencies directly, there can be no guarantees while central banks are pumping money into economies to make them grow again.

MOSCOW (Reuters) – The Group of 20 nations will pledge to reduce public debt but are likely to agree on concrete targets only at a leaders’ summit in September, EU Economic and Monetary Affairs Commissioner Olli Rehn said.

“There is a clear commitment to credible medium-term plans of fiscal adjustment and I would expect that in the final communiqué we will state that we will define more precisely G20 policy in the St. Petersburg summit,” Rehn told Reuters.