Europe’s economy will contract by more than expected this year and budget deficits will decline more slowly, the European Commission said on Friday (3 May), signalling that rising unemployment and the bleak outlook allow some scope for slowing the pace of austerity.
France and Spain fell short of their budget deficit goals last year and debt levels swelled across the eurozone but the pressure may be easing on Paris and Madrid as the European Commission signals an end to sharp spending cuts.
EU Economic and Monetary Affairs Commissioner Olli Rehn warned yesterday (3 March) against a Cypriot exit from the eurozone and said all countries in the single currency bloc were systemically important.
The extent to which European banking union will cover all banks in the eurozone came under fire yesterday (3 September) as MEPs and the German finance minister raised doubts that the Commission’s blueprint will be feasible.
The European Stability Mechanism rescue fund will eventually be granted a banking licence, giving it enough fire power to head off the bloc's debt crisis, Italian Prime Minister Mario Monti said yesterday (1 August), on the eve of a crunch meeting of the European Central Bank's council today.
In an unusual departure from traditional EU language, European Commission vice-president Olli Rehn and Italy’s Prime Minister Mario Monti have issued dramatic warnings yesterday (31 May) on the euro zone, while European Central Bank chief Mario Draghi openly admitted that the common currency was fighting for its survival.
Twelve European economies - including Britain, Italy and France - have deep weaknesses that are undermining growth and need to be tackled, the EU said on Tuesday as it stepped up its surveillance to avoid a repeat of the devastating debt crisis.
Olli Rehn, the Finnish EU Commissioner dealing with the most sensitive portfolio these days – Economic and Monetary Affairs – was promoted today (27 October) to Commission vice president and de-facto economic affairs minister of the eurozone.
A new institutional set-up for the eurozone's economic governance will take centre stage at the next EU summit in mid-October. Ahead of this crucial meeting and cornered by increasing pressures to hand over powers to member states, the European Commission is entertaining the idea of one of its own getting the Eurogroup's top position.
A drawn-out debate over new rules to police debt-laden countries has been shelved until September as lawmakers from the European Parliament, the Commission and EU member states battle over who should have the last word.
EU finance ministers have agreed to hold a marathon series of meetings to forge agreements on how to police debt and rescue failing economies, as many proposals still face terse opposition from the EU's national governments.
Struggling with budgetary pressure at home, Hungary and Bulgaria have nationalised their pre-funded pension schemes and excluded the cost of the reforms from their public debt figures, triggering a row with the European Commission. EURACTIV's network reports.
The European Union urged Greece yesterday (1 March) to agree new austerity measures in the coming days to tackle a fiscal crisis that has shaken the euro zone and promised to help Athens overcome its debt problems.
Ahead of today's meeting of eurozone finance ministers, the Greek finance minister announced his government will not be adding new measures to the public sector cuts and higher fuel taxes unveiled last week.
Europe's economic recovery depends on greater fiscal co-ordination and speaking with a single voice at global economic fora, Olli Rehn, the EU's incoming economic and monetary affairs commissioner, told MEPs at a parliamentary hearing yesterday (11 January).
Finland's Olli Rehn is expected to take charge of economic and monetary affairs in the European Union, diplomats said yesterday (26 November), giving him a major role in efforts to revive Europe's economy after the credit crunch.
Commissioner Rehn has defined the EU's absorption capacity as being "about whether the EU can take in new members while continuing to function effectively”. He also warned against the "temptations of populism".