BRUSSELS (Reuters) – German exports of cars and machinery helped shield the euro zone from a deeper recession in the third quarter while companies emptied warehouses and cut investments, showing the role of trade in driving any recovery.
Confirming a 0.1 percent contraction in output for the July-to-September period, the EU’s statistics office Eurostat said on Thursday that exports were the only sector to make a significant contribution to growing the economy.
BRUSSELS, Dec 4 (Reuters) – Germany and France publicly
clashed on Tuesday over plans to put the European Central Bank
in charge of supervising banks, deepening a dispute over the
scope of the ECB’s powers that threatens to undermine one of
Europe’s boldest reforms.
With time running out to meet a pledge to complete the legal
framework for an EU-wide banking union by the end of the year,
Germany’s Finance Minister Wolfgang Schaeuble told a meeting of
EU finance ministers he said could not support a plan that would
give the ECB the final say on supervision.
BRUSSELS, Dec 4 (Reuters) – O’Donnell +32 475 69 15 89
European Union finance ministers will try to finalise plans
to put the European Central Bank in charge of supervising all
euro zone banks on Tuesday, but divisions over how ECB oversight
will work threaten to undermine one of Europe’s boldest reforms.
While leaders are agreed that creating a banking union is a
sound idea, they cannot agree on how best to structure it, how
far to go in unifying banking systems to share risk and how to
prevent discrimination between euro- and non-euro countries.
BRUSSELS, Nov 30 (Reuters) – Euro zone joblessness has
reached a new high and the poor state of the economy is reducing
inflation to near two-year lows, raising the prospect of further
interest cuts by the European Central Bank.
As the euro zone sinks into its second recession since 2009,
the number of people out of work in the euro zone rose by
173,000 people in October to almost 19 million people
unemployed, the EU’s statistics office Eurostat said on Friday.
BRUSSELS (Reuters) – EU trade ministers overcame resistance from the car industry on Thursday and agreed to start negotiations to create a free-trade pact with Japan, Europe’s most ambitious step so far in a strategy to tie up deals with the world’s biggest economies.
Agreement was reached only after France and Italy secured safeguards for carmakers that are already cutting jobs because of falling demand at home and worry that a deal could lead to greater Japanese imports and damage the industry.
BRUSSELS, Nov 29 (Reuters) – Economic morale in the euro
zone improved for the first time in almost a year in November,
but industry’s reluctance to invest next year bodes poorly for a
quick recovery from recession.
Sentiment towards the bloc’s economy rose 1.4 points to 85.7
beating forecasts and ending an eight-month run of falls, the
European Commission’s monthly business and consumer survey
showed on Thursday, with Germany and France gaining strongly.
BRUSSELS/TOKYO, Nov 28 (Reuters) – Britain is trying to
convince France and Italy to agree to negotiations with Japan to
create a free-trade area with the European Union despite
concerns that a deal would hurt the continent’s weaker
European free-trade advocates, including Britain, the
Netherlands and Sweden, want EU trade ministers on Thursday to
formally ask the Commission – the EU executive – to start talks
with Japan, the world’s third-largest economy.
BRUSSELS (Reuters) – The European Commission gave the go ahead for Spain to overhaul its stricken nationalized banks on Wednesday and opened the door for nearly 40 billion euros in euro zone aid to be disbursed, offering hope for an end to Spain’s banking crisis.
Lenders Bankia, NCG Banco, Catalunya Banc and Banco de Valencia will need 37 billion euros ($48 billion) to be recapitalized and the banks’ bondholders will face losses, EU Competition Commissioner Joaquin Almunia said.
BRUSSELS, Nov 27 (Reuters) – The euro zone should ease up on
deep government spending cuts but stick to the path of reform,
the OECD said on Tuesday, adding its voice to those calling for
a softening of cost-cutting they see as choking economies.
Budget cuts are at the centre of the euro zone’s strategy to
overcome a three-year public debt crisis, but since the bloc
sank back into recession this year, policymakers are beginning
to question the wisdom of such aggressive deficit reduction.
BRUSSELS, Nov 23 (Reuters) – Luxembourg’s Yves Mersch won a
top post at the European Central Bank on Friday after months of
dispute with lawmakers at the European Parliament who objected
to his appointment because of a lack of women in the bank’s
The decision by European leaders to press ahead with Mersch
could strain their relations with the European Parliament,
potentially hampering agreement on reforms needed to resolve the
bloc’s debt and banking crises and in which lawmakers have a