Topic: European Central Bank

EU leaders, advised by senior officials to prepare contingency plans in case Greece decides to quit the single currency, urged the country to stay the course on austerity and complete reforms demanded under its bailout.

The European Central Bank wants Greece to stay in the euro zone and is working under that assumption, Joerg Asmussen, member of the Executive Board of the ECB, told TVN/CNBC in an interview on Thursday.

The euro zone debt crisis will continue to dominate European stocks in 2012, with even well-run companies in danger of being sucked into the morass, according to S&P Capital IQ.

Four years of economic crisis and market turmoil that have sent German bund yields to record lows now have half of the top bond strategists and economists polled by Reuters fearing a Japan-style "Lost Decade".

Greece's four largest banks will get an 18 billion euro capital injection by Friday or Monday, the country's central bank chief said.

Any Greek exit from the euro zone would pose a huge disruption with unforeseeable consequences, European Central Bank policymaker Ewald Nowotny said on Thursday.

Joint bonds issued by the euro zone, also known as Eurobonds, are one of the possible solutions to Europe’s debt crisis, Joaquin Almunia, vice president of the European Commission told CNBC, “but many conditions would have to be met” before they were introduced.

Greece will leave the euro zone next year and the country's new currency will "immediately fall by 60 percent," according to Citi chief economist Willem Buiter.

Ever wondered why European politicians appear so calm when attending summits in Brussels or G8 meetings despite all the talk of a “Grexit” and economic Armageddon?

The prospect of a Greek exit from the euro zone, rising losses at Spanish banks, and a failure of labor reform in Italy will force the European Central Bank to inject more liquidity into the banking system through a long-term refinancing operation, according to the chief economist at German banking giant Commerzbank.

To the frustration of Mario Draghi the European Central Bank is once again being eyed as a possible saviour of Europe’s monetary union. The FT reports.

Events of the past week suggest “the street” is beginning to take control of the financial system. People are expressing fears about the future of the euro and Europe by taking their money out of banks.

Greeks are notoriously reluctant to pay taxes, but even those that do are holding off at the moment until they are sure their country stays in the euro zone.

The move would involve complex legal and financial steps and could set back the economy further, many say. The New York Times reports.

At a time where the debate over whether Greece should or shouldn't  leave the euro zone reaches boiling point, shipping could prove critical for Greece's drive for sustainable growth.