Lending to companies and households in the euro area fell the most on record in August, signalling that the economy is still struggling to recover from its longest-ever recession.

GERMANY may be on the brink of recession after the sovereign debt crisis caused the economy to contract in the final quarter of 2011.

THE Government may be able to borrow on international bond markets next year at affordable rates and not require fresh bailout funding from the International Monetary Fund and the European Union, debt rating agency Standard & Poor’s argues.