George Osborne has said the eurozone risks slipping back into a crisis with negative consequences for the British economy.
Fears that Germany is on the brink of recession intensified after the eurozone’s largest economy suffered its biggest slump in industrial output since the beginning of the financial crisis.
Confidence is draining from German businesses, with a survey finding sentiment fell for a fifth successive month in September to its lowest level in nearly 18 months.
The global economy faces headwinds from a sluggish eurozone and rising political tensions, including the uncertain outcome of Scotland's independence referendum, a leading thinktank has warned.
France has admitted it will overshoot the EU's 3% budget deficit target this year, putting the eurozone's second-biggest economy on a collision course with Brussels.
Have I got this right? The world is facing, in Ukraine and the Middle East, the most disturbing concatenation of unpredictable events for decades, but the big issue in Scotland is whether it should leave the UK, and the main obsession of the Conservative party is the prospect of the UK's departure from the European Union – or Brexit, as it is known.
The European Central Bank surprised markets on Thursday with fresh measures to boost a flagging eurozone economy threatened with deflation and the risks of an escalating conflict in Ukraine.
Fears that the eurozone could tip into outright deflation have been fanned as the inflation rate in the currency bloc hit a new five-year low of 0.3%.
Britain's economy powered on in the second quarter, recording its strongest growth since before the financial crisis, but economists warned the pressure was on UK consumers and businesses to sustain the recovery amid the threat of a triple-dip recession in the eurozone.
Cyprus has become the fifth eurozone nation to seek help from international lenders, but the rescue package includes a hugely unpopular levy on savers at Cypriot banks – and as yet it remains unclear whether the country's MPs will accept it.
The age of austerity caught up with the European Union on Friday when a gruelling nonstop 26-hour negotiation resulted in agreement to slash the new seven-year EU budget by 3.3%, or €32bn, the first reduced budget in the union's history.
David Cameron is to tell the president of the European council in Brussels that a compromise plan for the EU budget is unacceptable because it includes drastic cuts to Britain's multibillion pound rebate.