The European Parliament voted to reject a deal reached by EU leaders on the bloc's next seven-year budget unless significant changes are made to the 960 billion euro plan.
Italy's three-year borrowing costs rose to their highest since December on Wednesday after Fitch cut its credit rating last week, but the country also managed to sell the top planned amount of a new 15-year bond.
Output at euro zone factories fell more than expected at the start of 2013 and production in France and Germany slipped in the latest sign the bloc is struggling to emerge from recession.
As calls grow for Germany to have more control over the European Central Bank, banker Jens Weidmann played down calls for it to have more voting power.
CNBC's Kelly Evans reports global markets paused for a breath after hitting multi-year highs in recent days.
The euro zone's 17 finance ministers will meet on Friday to discuss a financial bailout of Cyprus, signalling growing momentum for a deal.
Politicians must act to combat Europe's financial crisis because central banks can't do it alone, Jens Weidmann, the president of the Bundesbank, said Tuesday.
Reclassifying Greece as an emerging market economy is "deeply offensive," according to one analyst.
Italy's election produced the hung parliament investors said was the worst possible outcome. So why do markets seem largely unconcerned?
CNBC's Kelly Evans reports European markets opened flat on Tuesday, ahead of bond auctions from both Spain and Italy.
The political risks to the euro zone and its currency have receded and if the area stays on the "right track," the region's crisis could be largely over by the end of the year, Holger Schmieding, chief economist at Berenberg Bank, told CNBC.
Economist and former Finance Minister of Spain Alfredo Pastor makes the case that Spain is finally beginning its recovery.
Europe has spent hundreds of billions of euros rescuing its banks but may have lost an entire generation of young people in the process.
Strong jobs data keeps the dollar lifted, downbeat China reports dent the Aussie, and central bank worries hit the forint - it's time for your FX Fix.
One in four Germans would be ready to vote in September's federal election for a party that wants to quit the euro, according to an opinion poll published on Monday that highlights German unease over the costs of the euro zone crisis.
CNBC's Kelly Evans reports European markets traded lower on Monday as investors reacted to Italy's credit rating downgrade.
Italy could see its borrowing costs rise above those of troubled Spain this week, analysts told CNBC on Monday.
Beppe Grillo's anti-establishment 5-Star Movement said it wanted to lead Italy's next government and reiterated that it would not agree to an alliance with any other party.
A large majority of Italians are in favor of staying in the euro zone and are also against holding a referendum on membership, an opinion poll showed on Sunday.
A report that will be voted on in the EU parliament March 12 could lay the groundwork for laws banning pornography across all media — including the Internet — and could potentially restrict free speech advocates claim.