Greece demands €279bn from Germany in Nazi war reparations

Germany's economy minister branded Greece's demand for 278.7 billion euros in reparations from World War Two as "stupid" on Tuesday, while the German opposition said Berlin should repay a forced loan dating from the Nazi occupation.

German economy minister: 2014 GDP growth could be less than forecast

(Reuters) - Germany could grow less in 2014 than the 1.8 percent forecast by the government early this year, Economy Minister Sigmar Gabriel said in an interview published on Sunday, although he added the country was still in good shape compared to euro zone peers.

Merkel Says Russia-Ukraine Talks Unlikely to End Conflict

German Chancellor Angela Merkel reined in expectations that the leaders of Russia and Ukraine will agree on peace terms this week, saying a breakthrough is unlikely.

Spanish Notes Climb Amid Speculation ECB Loans Will Extend Rally

Spanish two-year notes rose for a second week, with yields dropping to a record, as details of the European Central Bank’s targeted-loans program boosted bets this year’s rally in fixed-income assets can extend.

German government source said U.S. should normalize monetary policy

(Reuters) - Germany believes the United States should normalize its monetary policy and each country must ensure it can cope with such policy changes, a senior German government source said ahead of a meeting of G20 finance ministers and central bankers.

Stronger-than-expected Germany and France nudge up euro zone growth

(Reuters) - Slightly stronger-than-expected growth in Germany and France pushed the euro zone's recovery up a gear in the fourth quarter and offered potential for a more robust 2014, albeit with risks.

European Union inches towards 'Banking Union'

BRUSSELS: EU finance ministers on Tuesday edged towards a difficult compromise on a Banking Union they hope will prevent a repeat of crippling crises and inject new impetus into the economy.

EU ministers agree euro zone bailout fund can be used as ultimate backstop for banks

(Reuters) - European Union finance ministers agreed on Friday that, as a last resort, the euro zone ESM bailout fund will be able to buy stakes in banks that need rescuing if neither investors nor the government are able to provide funds.

Banks in Spain, France and Italy sell govt bonds in Sept: ECB data

FRANKFURT: Spanish, Italian and French banks offloaded some of their government bonds in September, European Central Bank data showed on Friday.

George Osborne: We'll run a budget surplus

Chancellor George Osborne has said he wants the government to be running a surplus in the next Parliament and can get there without raising taxes.

Europe's plan to address weak banks risks unraveling

(Reuters) - The European Central Bank's (ECB) plan to test the health of the euro zone's largest lenders without the means to plug any holes it uncovers risks foiling what some see as the bloc's final chance to put its financial crisis behind it.

Euro zone lenders approve Greek aid tranche, payment on Mon: Sources

BERLIN/ATHENS: Officials working for euro zone finance ministers signed off on the payment of the next batch of aid for Greece on Friday and the money will be disbursed on the approval of member states on Monday, euro zone officials said.

ECB searches for ways to boost sagging eurozone

FRANKFURT, GERMANY: Europe's economy badly needs a push. The European Central Bank says it stands ready to help.

European banking union? Don't hold your breath

BRUSSELS: In June last year, European Union leaders made a great fanfare of committing to 'banking union', a three-step plan to shore up the region's 8,000 banks and prevent a repeat of the debt and financial crisis.

Don't Rely on Banking Union to Solve Euro Zone Crisis

Conventional wisdom has it that the euro zone needs a banking union to solve its crisis. This is wrong. Not only are there alternatives to an integrated regulatory structure for the zone’s 6,000 banks, but centralization will undermine national sovereignty.

IMF backs Draghi; says Spain, Italy have done enough

(Reuters) - The International Monetary Fund on Sunday strongly backed the European Central Bank's plan to staunch the euro zone debt crisis with unlimited bond purchases, saying it was ready to get involved in designing and monitoring its implementation.

ESM Intends to Aid Spanish Banks in ‘Near Future,’ Regling Says

The European Stability Mechanism is on track to become operational in October and intends to work directly with Spanish banks in the “near future,” said Klaus Regling, who heads the euro area’s bailout funds.

EU Commission wants ECB to supervise all major euro banks

BERLIN: The European Commission will propose next month giving the European Central Bank supervision over all of the euro zone's major banks, Handelsblatt daily reported on Friday, citing Commission sources.

Europe's stability mechanism remains elusive

NEW YORK (CNNMoney) -- Europe has a lot riding on its latest tool to stabilize the euro currency union, but there are now more questions than answers about the European Stability Mechanism.

Exclusive: Euro zone may drop bondholder losses from ESM bailout

BRUSSELS (Reuters) - Euro zone states may ditch plans to impose losses on private bondholders should countries need to restructure their debt under a new bailout fund due to launch in mid-2013, four EU officials told Reuters on Friday.