Raising the stakes in Europe’s debt crisis, Austria’s finance minister said Italy may need a financial rescue due to its high borrowing costs, drawing a furious rebuke from the Italian prime minister.

A high-ranking Greek official has resigned in protest over a proposed bailout deal for the country.

THE euro could become the world’s leading currency in the next decade if leaders of the single-currency bloc succeed in tightening fiscal integration, European Central Bank policymaker Christian Noyer said in an article published yesterday in the Journal du Dimanche.

The euro may become the world's leading currency in a decade, according to a member of the governing council of the European Central Bank.

France's finance minister took a swipe at the state of Britain's economy today hours after French experts predicted his own country would slide into a recession.

FRENCH leaders are girding for the loss of the nation’s top credit grade, with the central bank governor taking a swipe at Britain as he called debt-rating companies “incomprehensible and irrational”.

EUROPE faces a crucial 10 days to save the eurozone, after agreeing to ramp up the firepower of its bailout fund but acknowledging it may have to turn to the International Monetary Fund for more help to avert financial disaster.

THE interest rate France pays to borrow money rose again yesterday — and along with it fears that the country will lose its cherished AAA credit rating.

Stock markets continued their revival today as US retail sales came in better than expected and European markets reacted favourably to the short-selling ban imposed overnight.

EUROPEAN Central Bank Governing Council member Christian Noyer ruled out a restructuring of Greece’s debt, calling it a “horror story” that would leave the nation shut out of financing for years.

THE impact of a Greek debt restructuring on non-Greek European banks would be “milder” now than a year ago thanks to European Central Bank loans, according to Goldman Sachs’ analysts.

European bank shares are reacting positively to Ireland's €85bn EU IMF bailout.

All eyes are on the markets this morning to see how they respond to the €85bn EU-IMF bailout of Ireland.

Some of France’s largest banks and insurers tried to reassure customers and investors today after talks on the financial crisis with President Nicolas Sarkozy.

JÉRÔME KERVIEL, the man behind the biggest alleged fraud in banking history, is the first rogue trader to be exposed in the age of online social networking.

A FRENCH presidential adviser has said the rogue trader who this week lost €4.9 billion had been gambling more than the value of the bank he worked for.

Societe Generale bank’s chief executive took out newspaper ads today begging shareholders to accept his “apologies and deep regrets” after a trader at the bank was accused of fraud costing the company €4.96bn.

EUROPEAN interest rates are set to hit a six-year high today despite the strong differences emerging over interest rate policy.

EURO ‘weakness’ against the dollar will be short-lived analysts said yesterday, with forecasters suggesting the euro will average $1.25 this year.

EUROPEAN Central Bank council member Christian Noyer said excessive currency fluctuations may hurt global economic growth.

Christian Noyer has been appointed the new head of the Bank of France.

A FRENCH magistrate plunged the future of Jean-Claude Trichet and the European Central Bank into disarray yesterday.

European Central Bank President Wim Duisenberg said there is no guarantee a large nation such as France should have a seat on the ECB's executive board.