On the data front, German producer prices showed a further fall in January, leading to increased fears that the region is falling into a deflationary spiral.
However, growth in euro zone business activity hit a seven-month high in February, following a pick-up in demand, according to a closely-watched survey released on Friday morning. The flash composite reading of Markit's purchasing managers' index (PMI) came in at 53.5 this month, up from January's 52.6 and above analyst forecasts.
In the U.K. borrowing figures out Friday showed that public finances improved in January and posted its largest monthly surplus in seven years.
Retail stocks were the major underperformer, with Kingfisher shares finishing almost 2 percent lower. The retail group received a downgrade from Barclays and Bank of America Merrill Lynch on Friday morning and dragged the wider benchmarks lower.
Meanwhile, Gemalto, an international digital security company, saw its shares fall to the bottom of the Euro Stoxx 600 after reports of a hacking attempt at the firm and a downgrade on Friday from Rabobank.
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Standard Life shares closed 2.7 percent on Friday after reporting a 19 percent jump in operating profit for 2014.