Topic: Western Europe

French President, Francois Hollande has cast himself as the European leader pushing hardest to forge a growth-oriented “new path” through the euro zone’s grinding debt crisis, pitting him against the austerity-minded German Chancellor Angela Merkel, the New York Times reports.

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?

Germany's manufacturing sector has been shrinking at the fastest rate in three years in May, renewing concerns about the stamina of Europe's largest economy, which likely propped up the euro zone in the first quarter but is beginning to show signs of strain.

"He is not in a confrontational mindset. He didn't arrive brandishing a
Kalashnikov and saying 'you must accept euro bonds'," one aide said. "It's a
different approach."

While money pours out of Greek banks and Europe debates whether or not Greece deserves its next handout, the people potentially in the best position to help shore up the nation’s finances are mainly keeping their heads down, the New York Times reports.

With Greece’s membership in the euro zone teetering, fears of bank insolvency rising and Europe’s leaders bickering about what to do, the euro crisis is once again intensifying and threatening to undermine fragile growth globally. The NYT reports.

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

European leaders meet in Brussels this evening for an informal dinner being billed as a showdown between German Chancellor Angela Merkel and French President Francois Hollande over the tricky issue of Eurobonds—bonds issued by the EU and backed by euro zone members collectively.

European shares extended losses in afternoon trade on Wednesday, taking their cue from a sell off on Wall Street and closing sharply lower on fears that an EU summit may fail to come up with concrete, new measures to tackle the region's sovereign debt crisis.

The markets have been oversold amid intense pessimism and a relief rally will be on its way within the next month, David Murrin, chief investment officer at alternative investment firm Emergent Asset Management, told CNBC’s “Worldwide Exchange”.

The continuing political and economic crisis in Greece and its impact on the rest of the euro zone are the biggest threat to the global economy right now, the secretary general of the Organization for Economic Cooperation and Development said on Tuesday.

European shares extended gains to close strongly higher on Tuesday, as better-than-expected U.S. macro data further supported sentiment.

There has been no official announcement. No terms or conditions have been disclosed. But Greece’s banking system is being propped up by an estimated €100 billion or so of emergency liquidity provided by the country’s central bank – approved secretly by the European Central Bank in Frankfurt. The FT reports.

European shares rebounded from five-month lows on Monday to close higher, as investors bought into some stocks that had been badly hit in the previous week's sell-off.

World leaders backed keeping Greece in the euro zone on Saturday and vowed to take all steps necessary to combat financial turmoil while revitalizing a global economy increasingly threatened by Europe's debt crisis.