The latest in Western Europe

Surprise 0.6% growth in third quarter

2011-12-22T11:30:32Z

Britain's economy showed unexpectedly strong growth of 0.6 percent in the third quarter, official data revealed on Thursday, but the country still faces possible recession in the new year.

The Office for National Statistics (ONS) revised higher its estimate for gross domestic product (GDP) growth between July and Se...

Britain surprises with stronger growth

2011-12-22T10:30:24Z

Britain's economy showed unexpectedly strong growth of 0.6 percent in the third quarter, official data revealed on Thursday but the country still faces possible recession in the new year.

The Office for National Statistics (ONS) revised higher its estimate for gross domestic product (GDP) growth between July and Sep...

Spain's austerity leader Rajoy names cabinet

2011-12-21T19:31:03Z

Spain's new leader Mariano Rajoy on Wednesday named a team to steer the country out of crisis, with a former manager of ruined bank Lehman Brothers in the key economy minister job.

Rajoy named Luis de Guindos, 51, to the crucial post to spearhead urgent reforms aimed at getting Spain's five million u...

German economic data bring sparkle to eurozone gloom

2011-12-20T09:30:34Z

Two leading sentiment indicators in Germany surprised on the bright side here on Tuesday, bringing a rare touch of Christmas sparkle to the pall of gloom hanging over the eurozone.

The Ifo economic institute said it was bringing "good tidings" with the announcement that its closely watched business sentiment index defied analysts' expectations for the second month in a row and rose to 10...

New Spanish leader pledges deep crisis cuts

2011-12-19T08:30:32Z

MADRID (Reuters) - Spain's incoming Prime Minister Mariano Rajoy took aim at his country's economic woes Monday, promising deep spending cuts at all levels of government while offering tax breaks for companies.

It was a salv...

France to enter recession, 1% growth target hopeful: INSEE

2011-12-15T18:30:25Z

France will fall into a brief recession and the government's 2012 growth target of 1.0 percent will be difficult to achieve, the official INSEE statistics agency warned Thursday.

INSEE said it expects France to enter a mild recession in the final quarter of this year and the first quarter of 2012.

...

ECB chief says euro zone on right track

2011-12-15T09:00:07Z

BERLIN/BRUSSELS (Reuters) - Europe's top central banker said on Thursday that euro zone governments are on the right track to restore market confidence but reminded the...

German manufacturing shrinks for 3rd month in December: PMI

2011-12-15T03:00:06Z

BERLIN (Reuters) - German manufacturing contracted for a third straight month in December and looked unlikely to provide a lift to Europe's largest economy soon as new orders continued to dry up, a survey showed on Thursday.

The purchasing managers' index (PMI) for the sec...

German manufacturing shrinks for 3rd month in December - PMI

2011-12-15T02:00:10Z

The purchasing managers' index (PMI) for the sec...

UK Conservatives take poll lead after EU veto

2011-12-14T05:00:16Z

LONDON (Reuters) - Britain's Conservatives have overtaken the Labour opposition in an opinion poll for the first time this year, enjoying a bounce from Prime Minister David Cameron's veto of a new Hong Kong has overtaken the United States and Britain to rank top in a World Economic Forum survey on countries' financial health published on Tuesday.

Strong scores in non-banking financial services such as initial public offering (IPO) activity...

Analysis: Growth to bear brunt of euro crisis cure

2011-12-13T10:30:33Z

LONDON (Reuters) - Europe's economic prospects next year are so bleak that 2011, for all the euro's agonies, has every chance of being remembered fondly.

In forging a fiscal compact that aims to put the single currency on a firmer long-term footing, euro zone leaders have s...

Paris, Berlin seek action on company, financial tax

2011-12-07T08:00:25Z

PARIS (Reuters) - France and Germany want a new EU framework to speed up progress towards a common corporate tax base and a financial transaction tax as well as convergence of financial regulation and labor market policies, ...

France vows powerful summit deal

2011-12-07T04:30:42Z

PARIS (Reuters) - The leaders of France and Germany will not leave this week's EU summit until a "powerful" deal is reached to arrest the euro zone debt crisis, ...

Italy PM meets unions ahead of crisis plan approval

2011-12-04T05:30:08Z

ROME (Reuters) - Prime Minister Mario Monti met unions on Sunday to build support before the cabinet approves a 20-billion-euro package of austerity measures aimed at shoring up Italy's strained finances and stemming a crisis that threatens to overwhelm the German Chancellor Angela Merkel's uncompromising stance on Europe's financial crisis faced mounting criticism on Saturday as senior political figures urged her to reconsider her rejection of eurobonds.

"One cannot categorically rule out resorting to eurobonds. They could become vital," European Energy Commissioner ...

Government slashes economic growth outlook

2011-11-29T18:30:54Z

The government slashed its growth outlook on Tuesday, blaming the impact of the eurozone debt crisis, and unveiled a £30-billion infrastructure scheme to help kickstart the economy.

Finance minister George Osborne, delivering his autumn statement to parliament, insisted however that there would be no let-up in the coalition's plans to axe the deficit and s...

Britain slashes economic growth outlook

2011-11-29T18:30:27Z

The British government slashed its growth outlook on Tuesday, blaming the impact of the eurozone debt crisis, and unveiled a £30-billion infrastructure scheme to help kickstart the economy.

Finance minister George Osborne, delivering his autumn statement to parliament, insisted however that there would be no let-up in the coalition's plans to axe the defic...

UK growth slows to crawl, austerity to persist

2011-11-29T06:30:17Z

LONDON (Reuters) - Britain's coalition government unveiled sharply lower economic growth forecasts on Tuesday and said it would take much longer than hoped to wipe out its deficit, meaning tough austerity measures would extend beyond the next election due in 2015.

Finance Minister Reuters) - The British government unveiled sharply lower economic growth forecasts on Tuesday and said it would take longer than hoped to wipe out its deficit, meaning that tough austerity measures would extend beyond 2015.

Finance Minister George Osborne warned that the British economy risked getting dragged in...

Britain faces 'double-dip recession'

2011-11-28T10:31:47Z

Britain's economy faces a double-dip recession, according to new forecasts from the OECD, which predicts the economy will start to shrink again in coming months.

In the latest edition of its twice-yearly forecasts, the think-tank predicts Britain's GDP (gross domestic product) will shr...

Belgian parties reach 2012 budget deal

2011-11-26T13:30:13Z

Belgium fell in behind model eurozone pupils Italy and Greece on Saturday, its feuding politicians ending 19 months of deadlock with an 11th-hour budget deal that met EU strictures hours after a brutal downgrade.

"There is an agreement," French...

Thousands of Portuguese workers protest against cuts

2011-11-24T09:30:08Z

LISBON (Reuters) - Portuguese workers' general strike halted public transport and some factories in many parts of the country on Thursday and thousands marched to protest against austerity measures imposed as the price of an EU/IMF bailout.

The 78 billion euro ($100 billion) r...

Portuguese strike against bailout austerity

2011-11-24T05:30:27Z

LISBON (Reuters) - Portuguese workers went on strike on Thursday, halting public transport and factories in many parts of the country to protest against harsh austerity measures imposed as the price of an EU/IMF bailout.

The rescue funds are designed to keep MADRID (Reuters) - Millions are out of work and a recession looms, all the more reason for Spaniards to dig deep into their pockets to gamble on the famous El Gordo (Fat One) Christmas lottery, the world's biggest jackpot, which will make a record payout this year.

"Things are tough this year, but I am definitely going to get a Christmas lottery ti...

Spain's new government faces first test

2011-11-22T02:00:12Z

MADRID (Reuters) - Prime Minister-elect Mariano Rajoy faces the first test on Tuesday of whether markets have been reassured by his conservative party's sweeping election victory when Spain tries to sell up to 3 billion euros ($4 billion) of s...

Moody's warns on French rating outlook

2011-11-21T09:30:29Z

PARIS (Reuters) - Moody's warned France on Monday that a sustained rise in its debt yields coupled with weakening economic growth could harm its ratings outlook, fuelling concern the euro zone's second largest ...

Pressure for fast action after Spain election

2011-11-21T05:30:19Z

MADRID (Reuters) - A landslide conservative win in Spain's election failed to calm markets on Monday and Prime Minister elect Mariano Rajoy was under pressure to end uncertainty by giving rapid details of his policies to combat the worst econo...

Pressure for fast action after Spain election win

2011-11-21T01:00:06Z

MADRID (Reuters) - Prime Minister elect Mariano Rajoy was under pressure on Monday to give rapid details of his policies to overcome the worst economic crisis for generations, after his center-right party won Spain's biggest election victory i...

Spain's cautious Rajoy thrust into crisis role

2011-11-20T15:30:07Z

MADRID (Reuters) - Mariano Rajoy, who will become Spain's new prime minister after a sweeping election victory on Sunday, is a cautious moderate who makes an unlikely crisis manager for a country engulfed in the

Center-right wins Spain election

2011-11-20T13:30:33Z

MADRID (Reuters) - The opposition People's Party (PP) won a crushing victory in Spain's election on Sunday as voters vented their rage on the ruling Socialists for the worst economic crisis in generations.

The Socialists conceded a humiliating defeat as official results showed the PP projected to take an ab...

Centre-right wins Spain election: TV exit poll

2011-11-20T12:00:27Z

MADRID (Reuters) - The opposition People's Party won a crushing victory in Sunday's Spanish election, a TV exit poll said, as voters vented their rage on the ruling Socialists for the worst economic crisis in generations.

The poll by public broadcaster RTVE predicted the center-right PP would win an absolute majority of 181 to 185 seats in the 350-...

Spaniards vote to find way out of crisis

2011-11-20T05:00:10Z

MADRID (Reuters) - Spaniards reeling from an economic crisis voted on Sunday in an election expected to throw out the ruling Socialists and bring in a center-right party which promises only harsher austerity measures.

A grim mood dominated as people went to the polls against a background of soaring unemployment, cuts in public spending and a debt c...

Economic crisis takes toll on bankers

2011-11-19T20:30:26Z

The pressure on London bankers to get to grips with the global financial crisis has led to stress, depression and insomnia among City workers, affecting even the most experienced bosses.

The phenomenon was brought to light when the chief executive of Lloyds Banking Group, Antonio Horta-Osario, announced that he was...

Economic crisis takes toll on Britain's bankers

2011-11-19T20:30:12Z

The pressure on London bankers to get to grips with the global financial crisis has led to stress, depression and insomnia among City workers, affecting even the most experienced bosses.

The phenomenon was brought to light when the chief executive of Lloyds Banking Group, Antonio Horta-Osario, announced that he was...

Right storming towards win in crisis-hit Spain

2011-11-19T17:30:20Z

Spain's right was storming towards a landslide win in a vote to be held Sunday, carried by popular anger over an economic slump and a debt crisis that has toppled a string of eurozone leaders.

Street protests and a debt market tempest chased the ruling Socialists up to the last moment before the election, which opinion polls show the opposition Popular Party leader Britain believe the eurozone debt crisis will be the biggest challenge facing the country's economy next year, an opinion poll showed Sunday.

Seventy percent of business chiefs believe the euro crisis is "the biggest single factor likely to impact on the UK economy in 2012," showed the poll for the Japan called on Germany on Friday to step up and help plug the widening hole in Europe's finances, saying Berlin should play a leading role in creating a debt "firewall".

Finance Minister Jun Azumi said the continent's largest economy needed to do more if Europe was to get out...

Emergency post-election measures won't save Spain

2011-11-17T09:30:45Z

MADRID (Reuters) - Spain's new government may rush through emergency measures immediately after Sunday's parliamentary election, but unless the euro zone finds a durable systemic solution to its debt crisis, Madrid will still be forced to...

Analysis: Emergency post-election measures won't save Spain

2011-11-17T07:30:27Z

France and Germany clash over ECB crisis role

2011-11-17T03:00:24Z

PARIS/ROME (Reuters) - France and Germany, Europe's two central powers, have stepped up their war of words over whether the European Central Bank should intervene more forcefully ...

Spain admits it will miss 2011 economic growth target

2011-11-16T17:30:21Z

Spain's Socialist government admitted for the first time Wednesday it will miss its 2011 economic growth target, just four days before an expected election drubbing.

Spain's sovereign borrowing costs inched up meanwhile, raising the stakes for the next government amid tension on international markets about whether the company could fall victim to the eurozone debt crisis.

...

Spanish center-right riding voter anger to victory

2011-11-16T08:00:41Z

MADRID (Reuters) - Voter anger over Spain's economic plight is certain to sweep the center-right People's Party to an election victory on Sunday, giving it a resounding mandate to slash public spending and try to rescue the country from the euro zon...

France, Germany clash over ECB role to stem crisis

2011-11-16T08:00:34Z

PARIS/ROME (Reuters) - France and Germany, Europe's two central powers, clashed on Wednesday over whether the European Central Bank should intervene more forcefully to halt the

Spanish centre-right riding voter anger to victory

2011-11-16T07:30:19Z

Germany, France prop up growth as eurozone crisis widens

2011-11-15T17:30:30Z

Berlin and Paris propped up the crippled eurozone with resilient growth figures Tuesday but France was buckling on tense bond markets as Italy and Greece raced to install new governments.<...

Euro zone barely grows in Q3, downturn seen

2011-11-15T04:30:15Z

BERLIN/PARIS (Reuters) - The euro zone economy grew just 0.2 percent in the third quarter as Germany and France posted solid growth but countries at the sharp end of the ...

Germany, France post solid growth, outlook bleaker

2011-11-15T04:30:10Z

BERLIN/PARIS (Reuters) - The euro zone economy grew just 0.2 percent in the third quarter as Germany and France posted solid growth but countries at the sharp end of the debt crisis f...

Euro zone posts growth, but downturn seen likely

2011-11-15T03:00:12Z

BRUSSELS (Reuters) - The 17-nation euro zone economy grew a modest 0.2 percent in the third quarter from the second, the EU said on Tuesday, lifted by France and

German manufacturing shrinks in Oct for 1st time in 2 years: PMI

2011-11-02T02:30:28Z

BERLIN (Reuters) - Germany's manufacturing sector contracted in October for the first time in more than two years as new orders fell for a fourth month in a row, data showed on Wednesday in the latest sign Europe's bulwa...

Global factories lose steam

2011-11-01T10:00:25Z

SINGAPORE/WASHINGTON (Reuters) - Global factory activity slowed in October on weak demand for exports, with a sharp contraction in Britain's manufacturing sector suggesting that Europe was on the brink of a new recession.

While manufacturing surveys on Tuesday from

Portugal wants U.S. help in euro crisis: source

2011-10-29T08:00:12Z

ASUNCION (Reuters) - Portugal asked Mexico on Saturday to tell fellow G20 members next week that the United States should offer "financial help" to resolve the euro zone

Berlusconi to call Monday cabinet meeting on growth

2011-10-23T15:00:06Z

BRUSSELS (Reuters) - Prime Minister Silvio Berlusconi said he expected to call a cabinet meeting on Monday to discuss measures to boost growth, as Italy comes under mounting pressure from European partners to step up r...

EU ready for decisive measures on debt crisis: French PM

2011-10-22T22:30:06Z

TOKYO (Reuters) - The European Union is ready to adopt decisive measures to tackle its sovereign debt crisis, French Prime Minister Francois Fillon said Sunday.

"Member states, including AMSTERDAM (Reuters) - The Netherlands would support the International Monetary Fund (IMF) taking on a greater financial role in the euro z...

S&P likely to cut ratings of France, others if economies crash

2011-10-20T23:30:05Z

(Reuters) - Standard & Poor's will likely lower the credit standing of five European nations, including top-rated France, by one or two notches if the region slips into recession and government borrowings increase, the rating agency said in a report.

The stress-test report assesses the capacity of the European Union nations over how to solve the eurozone debt crisis threatening the world economy on Thursday forced the 17-nation eurozone to call a fresh summit next week.

After vowing decisive action to G20 partners to resolve Europe's crisis, wrangling between Paris,

German growth to slow in 2012: government

2011-10-20T08:30:28Z

The eurozone crisis will hit Germany hard next year with growth expected to be dramatically lower than previously thought, the government said on Thursday.

Berlin said it expected growth of 1.0 percent next year in Europe's biggest economy, almost half the...

France warned on rating as EU debt hopes dampened

2011-10-18T19:30:22Z

France vowed Tuesday to keep its triple-A rating following a warning from Moody's, as Germany's Angela Merkel warned that the upcoming EU summit was only one step in resolving a crisis over

S&P cuts Spain rating by one notch on weak growth

2011-10-14T02:00:09Z

MADRID (Reuters) - Standard and Poor's cut Spain's credit rating on Friday, sending the euro lower and underlining the challenges facing Europe's big powers as they prepare to ...

Leaders meet on crunch weekend for European banking

2011-10-08T18:30:12Z

French and German officials were scrambling to put together a compromise agreement on recapitalizing major European ahead of Sunday's meeting between the two countries' leaders.

French President Nicolas Sarkozy meets German Chancellor Angela Merkel in Berlin on ...

10 days to save Europe's banks

2011-10-07T14:30:22Z

As Europe races to rescue its banks, the EU executive on Friday gave governments 10 days to agree on coordinated plans to recapitalise lenders hit by the eurozone debt crisis.

The deadline comes as the governments of France and

Britain can get through tough times: Cameron

2011-10-05T15:30:50Z

Prime Minister David Cameron sought Wednesday to lift Britons from the economic doldrums, urging them to show a "can-do" attitude and help make the country great again.

In an upbeat and patriotic speech to his Conservative Party conference, Cameron said he understood that people were struggling with rising inflation and energy bills, s...

UK economy grinds to virtual halt

2011-10-05T10:30:54Z

Britain's economy slowed to a trickle in the second quarter and the country's last recession was much deeper than thought, official data showed on Wednesday, piling pressure on the government.

British gross domestic product (GDP) -- the value of all services and goods produced in the economy -- grew by just 0.1 percent in the three months to June from the first quarter, the

As Europe bank recap talk builds, who needs it?

2011-10-05T10:00:12Z

LONDON (Reuters) - Banks in France, Italy and across Europe are under renewed scrutiny for signs they will follow Dexia and need state help as policymakers talk up the need to raise capital to halt a Britain's economy almost ground to a halt in the second quarter slowed by weak consumer spending and industrial output, revised data showed on Wednesday.

Gross domestic product (GDP) -- the combined value of all services and goods produced in the economy -- grew by just 0.1 percent in the three months to June, the Office for N...

Plunging PMIs fuel recession fears

2011-10-05T04:00:15Z

LONDON (Reuters) - Private sector business activity shrank in the euro zone for the first time in two years last month as new orders dried up, stoking fears that the economy could be heading back into recession, surveys showed on Wednesday.

A downturn that began in smaller members of the 17-nation bloc has hit the core and survey...

35,000 protest at Tory conference

2011-10-02T20:30:36Z

Unions organised a rally of 35,000 protesters against government budget cuts Sunday in Manchester where Prime Minister David Cameron's Conservatives opened their annual conference.

The Trades Union Congress billed the demonstration as a rally for "the alternative -- jobs, growth, justice"...

Funds rebuild stocks in September

2011-09-29T07:00:24Z

LONDON (Reuters) - Investors are entering the fourth quarter with a slightly raised exposure to shares and holding high reserves of cash that could quickly be used to fuel a stock rally, Reuters polls showed on Thursday.

Surveys of 59 leading investment houses in the United States, mainland BERLIN (Reuters) - The deteriorating outlook for the world economy, and what retailers can do to cope, are likely to be the dominant themes at the annual World Retail Congress in Berlin this week.

Executives from companies including France's Carrefour ...

Geithner wants 'decisive signal' on eurozone debt

2011-09-24T08:30:12Z

US Treasury Secretary Timothy Geithner has called on Europe's leaders to send a "decisive signal" that they can handle the debt crisis, as pressure builds for action to prevent further eurozone damage.

With the US and eurozone debt and deficit crisis overhanging the Europe's finance chiefs defended their approach in addressing the debt crisis as pressure built from markets and other regions to take action to prevent it from snowballing.

With the US and eurozone debt and deficit crisis overhanging the IMF-World Bank annual meeting in Wa...

Britain Tuition Tangle

2011-01-04T08:04:09Z

FILE - This is a Thursday, Dec. 9, 2010 file photo of Britain's Prince Charles and Camilla, Duchess of Cornwall, as they react as their car is attacked by angry protesters in London. British police released a video Tuesday Jan. 4, 2011 of ...

Germany Partial Solar Eclipse

2011-01-05T08:02:05Z

A partial solar eclipse is pictured through clouds in Albershausen, southwestern Germany, on Tuesday, Jan. 4, 2011. (AP Photo/dapd, Daniel Kopatsch)

...

Australia Flooding

2011-01-05T08:06:21Z

In this photo released by the Northern Territory Police, four German tourists rest on the roof of their vehicle as they wait for their rescue from the flooded Magela Creek, near Jabiru, Australia, Monday, Jan. 3, 2011. Drenching rain that started before Christmas has flooded an area the size of France and Real Madrid's Kaka from Brazil runs with the ball during a Spanish La Liga soccer match against Getafe at the Coliseum Alfonso Perez stadium in Getafe, Spain Monday, Jan. 3, 2011. Memphis Grizzlies center Marc Gasol, right, of Spain and his brother Los Angeles Lakers forward Pau Gasol of Spain tangles under the basket during the first half of their