The Dutch government, one of the most vocal critics of European countries failing to rein in their budgets, quit after failing to agree on a plan to bring its own deficit in line with EU rules.

The Dutch government, one of the biggest critics of European countries failing to rein in their budgets, has resigned after disagreeing on a plan to bring its own deficit in line with EU rules.

Eurozone finance ministers gave unemployment-ridden Spain more wiggle room in cutting its big deficit, signalling that new, tighter rules against overspending in the currency union retain some flexibility for hard-hit countries.

Major banks and pension funds threw their weight behind Greece’s bond swap offer to private creditors yesterday, making it increasingly likely that the deal will go through and clear the way for a bailout package to avert a chaotic default.

Ratings agency Fitch has cut Greece’s long-term ratings to its lowest rating above a default, becoming the first ratings agency to make the widely expected downgrade after the country announced a bond exchange plan to ease its massive debt burden.

Crunch talks to finalise a second bailout for Greece are continuing in Brussels this evening.

European ministers have demanded that Greece pledge more job and spending cuts within a week in exchange for a €130bn bailout to stave off bankruptcy.

Greece was fighting to avoid economic disaster tonight amid political stalemate, nationwide strikes and controversial claims that the country could leave the eurozone without triggering a single currency crisis.

“Crucial” issues remain to be resolved in Greece’s critical negotiations over a second multi-billion euro international bailout as talks continue today.

Eurozone finance ministers have agreed to increase the capacity of the European Financial Stability Facility (EFSF) bailout fund.

IRELAND’S next bailout tranche of €8.5 billion was approved by eurozone finance ministers yesterday as they struggled to find a way to fund Spain and Italy, both under massive pressure from the markets.

The European Commission wants to supervise member states' Budgets as part of plans to prevent a repeat of the debt crisis.

EUROZONE finance ministers held crisis talks yesterday in a desperate bid to come up with a solution to the Greek debt problem and avoid the euro debacle escalating to include Italy.

AIB is hopeful of raising at least €1.6 billion of its re-stated capital requirements from ‘burning’ junior bondholders.

IRELAND’S focus remains firmly on getting a cut in the interest rate on its bailout, Finance Minister Michael Noonan said as eurozone ministers agreed the details of a €78 billion loan for Portugal at a lower rate of interest.

Voters in Iceland rejected a government-backed deal to repay Britain and the Netherlands for their citizens’ €3.5bn worth of deposits in a failed online bank, referendum results showed – sending the dispute to an international court and plunging the economically fragile country into new uncertainty.

It seems the decision by Icelandic voters not to pay billions of euro in compensation to Britain and the Netherlands may end up in the courts.

THE Portuguese are to get a bailout in the region of €80 billion in exchange for implementing the austerity measures that brought down their government — plus additional cut backs.

IRELAND’S campaign to have the EU reduce the interest rate it charges for the €67.5 billion emergency aid received a boost last night after finance ministers met in Brussels to overhaul the loan facility.