EUROPE’S economy expanded less than economists forecast in the fourth quarter as cold weather curbed German output and French growth unexpectedly stalled.

IRELAND could yet be forced to relinquish its 12.5% corporation tax rate if it has to go to Europe for financial assistance to deal with the current debt crisis.

Tighter monitoring measures of national economies in the eurozone are on the cards in the wake of the Greek crisis, the European Commission said today.

THOSE hoping for another cut in ECB rates after Thursday’s historic move to 1% will probably be disappointed.

IRELAND is more exposed than most other eurozone countries to the ill-effects of a down turn in the US economy, but a recessionis in no way inevitable, according to Finance Minister Brian Cowen.

EU finance chiefs are holding their second day of talks in Portugal today, with the global markets crisis expected to dominate discussion again.

The European Commission today turned down Lithuania’s application to join the euro next year but approved Slovenia – now likely to become the first new user of the common currency since it was launched in 2002.

Lithuania and Slovenia will hear from the European Commission tomorrow if they are on track to join the European Union’s single currency next January.

Finance ministers from the 12 nations that use the euro stepped up disciplinary action against Germany yesterday after it broke the budget rules that underpin the common European currency for the fourth year running.

The European Commission today challenged Britain’s public finances when it said it expected a deficit of 3.1 per cent of gross domestic product in 2006-07 - contrary to the forecast chancellor Gordon Brown made last month.