Eurozona

Mario Draghi is preparing to cut interest rates and embark on a fresh round of bond purchases before he leaves the European Central Bank this autumn, in a bid to boost the eurozone’s economy and combat mounting global uncertainty over trade.

The European Central Bank’s outgoing chief economist, who played a key role in the institution’s response to the eurozone crisis, has hit out at the ‘America First’ rhetoric of US president Donald Trump.

Italy’s budget deficit is set to breach EU rules by a wide margin next year, according to forecasts from the European Commission that raise the prospect of a renewed clash over economic policies between Brussels and Rome’s anti-establishment government.

The single currency bloc’s persistent weakness is becoming a major challenge for policymakers. Economic confidence in the eurozone dropped for a 10th month in April to the lowest in more than two years, indicating the region may struggle to pick up from its recent slump.

Unemployment continues to fall across bloc as a whole despite Italian rise

Drop is biggest in almost six years amid Brexit chaos and faltering demand from China.

Unemployment in the euro zone in November fell unexpectedly to its lowest rate in more than 10 years. But youth unemployment in Italy, Spain and Greece remains above 30 percent.

La reforma francoalemana plantea que el presupuesto de la eurozona sea parte del presupuesto de la UE

Italy may risk a recession if faced with even modest negative shocks that force it into significant budget adjustments, the International Monetary Fund said.