German euro founder calls for 'catastrophic' currency to be broken up

Oskar Lafontaine, the German finance minister who launched the euro, has called for a break-up of the single currency to let southern Europe recover, warning that the current course is "leading to disaster".

German bond yields hit record low after ECB rate cut falls short

The European Central Bank cut interest rates a quarter point to a record low of 0.5pc and threatened to punish banks for hoarding funds, but was faulted for doing too little to pull Europe out of deep recession.

Debt-crippled Holland falls victim to EMU blunders as property slump deepens

The eurozone’s slow suffocation is going Dutch. Each extra month of slump caused by Europe’s negligent authorities is pushing Holland closer to a debt-deflation trap.

Eurozone risks Japan-style trap as deflation grinds closer

The eurozone is one shock away from a Japan-style deflation crisis after a key measure of prices fell to the lowest since the launch of the single currency.

Italian showdown with Germany as Enrico Letta rejects 'death by austerity'

Italy’s new premier Enrico Letta is on a collision course with Germany after vowing to end death by austerity, and warned that Europe itself faces a “crisis of legitimacy” unless it charges course.

S&P sees deepening house slump in Spain, France and Holland

Spanish house prices are to fall a further 13pc by the end of next year as the authorities flood the market with a backlog of repossessed properties, Standard and Poor’s has warned.

Bundesbank declares 'war' on Mario Draghi bond bail-out at Germany's top court

Germany’s Bundesbank has issued a devastating attack on the bond rescue policies of the European Central Bank, rendering the eurozone’s key crisis measure almost unworkable.

Italy needs Churchillian leader to fight 'war damage' of EU austerity

Old ways die hard. Two months after Italian voters rebelled in fury against the establishment, the country’s elites have chosen yet another insider to be leader.

Cyprus bail-out vote stirs fresh jitters as slump fears grow in Europe

Cyprus has stunned EU officials by ordering a vote in its parliament on the terms of the EU-IMF Troika bailout for the country, risking a rejection by angry lawmakers and a fresh eruption of the crisis.

Francois Hollande faces austerity revolt from own ministers

French president Francois Hollande is facing an anti-austerity revolt from his own ministers as he pushes through a fresh round of tax rises and austerity to meet EU deficit targets.

Threat of 'wealth tax' on holiday homes

Britons who own homes in Spain and other troubled eurozone states could face a new "wealth tax" to help fund future bail-outs, influential German economists have suggested.

Portugal’s elder statesman calls for 'Argentine-style' default

Portugal's leading elder statesman has called on the country to copy Argentina and default on its debt to avert economic collapse, a move that would lead to near certain ejection from the euro.

Tobin Tax is madness for Europe, and economic war against Britain

France's experiment with the Tobin Tax has proved a spectacular flop. Its finance ministry admits that the scattershot levy on financial transactions has raised just a third of the money expected since August.

Vast Greek war claims against Germany explode like a 'time-bomb'

The Greek government is in disarray after the leak of an explosive report drawing up vast reparations claims against Germany, covering both the First and Second World Wars.

Portugal austerity plan frays, US loses patience with Europe

Fitch Ratings has warned that Portugal’s austerity plan risks unravelling after the country’s top court struck down wage cuts and lower pensions for state workers.

Portugal's top court has ruled out euro membership

Whether Portugal's judges realise it or not, they have just ruled that the eurozone doctrine of "internal devaluation" is unconstitutional.

Slovenia faces contagion from Cyprus as banking crisis deepens

Slovenia’s borrowing costs have rocketed over recent days as it grapples with a festering financial crisis, becoming the first victim of contagion from Cyprus.

Cyprus has finally killed myth that EMU is benign

The punishment regime imposed on Cyprus is a trick against everybody involved in this squalid saga, against the Cypriot people and the German people, against savers and creditors. All are being deceived.