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The new Spanish government will present its first budget Friday, with austerity expected to be the overriding theme. The problems facing the euro zone’s fourth-largest economy have not dissipated since the government, led by Mariano Rajoy of the center-right People’s Party, took office last year, and there are now worries that the Spanish population is [...]

Euro zone finance ministers sealed a 130-billion-euro ($172 billion) bailout for Greece on Tuesday to avert a chaotic default in March after persuading private bondholders to take greater losses and Athens to commit to deep cuts. After 13 hours of talks, ministers finalised measures to cut Greece’s debt to 120.5 percent of gross domestic product [...]

Euro zone governments are looking to the European Central Bank and national central banks to help pare back the cost of a second rescue package for Greece which would otherwise amount to 170 billion euros ($224.2 billion). Figures seen by the Financial Times reveal Greece needs 136 billion euros in fresh bail-out funding from the [...]

Portugal’s economy minister sought to dispel impressions that the country could follow a similar path to Greece in an interview with CNBC, pointing out that the tough economic reforms it is carrying out enjoy the support of the population and stressing that Portugal will not turn its back on the single currency. Many investors fear [...]

The Greek parliament’s approval of fresh austerity measures despite violent protests in Athens opened the door for a brighter disposition in markets and this, coupled with stronger-than-expected earnings and growth prospects, may push stocks upwards, according to analysts. Finance ministers in the euro zone are due to meet on Wednesday to discuss the austerity measures [...]

Moody’s Investors Service cut the debt ratings of six European countries including Italy, Spain and Portugal and said it may strip France and the U.K. of their top Aaa ratings, citing Europe’s debt crisis. Spain was downgraded to A3 from A1 yesterday, Italy to A3 from A2 and Portugal to Ba3 from Ba2, all with [...]

The European Central Bank left its key interest rate unchanged at 1 percent on Thursday but President Mario Draghi promised relaxed rules for banks taking part in a long-term refinancing operation at the end of the month, boosting hopes that additional liquidity will be injected in the system. At the same time, he played his [...]

A eurozone recession could almost halve Chinese growth this year, according to the International Monetary Fund (IMF). The IMF forecasts China’s economy will grow by 8.2% this year – but warns that a recession in the eurozone could cut this to 4.2%. It said Beijing should get ready to inject billions of dollars into the [...]

A top European Central Bank policymaker has called for “quantitative easing” to be used to boost the euro zone economy if deflation risks emerge across the 17-country region. The comments by Lorenzo Bini Smaghi, ECB executive board member, are the strongest indication yet that the central bank would expand its policy tools to prevent a [...]