Irish households are pessimistic about the economic outlook as the growing possibility of a no-deal Brexit looms, according to the Bank of Ireland’s latest economic survey.

European Central Bank president Mario Draghi said he can not exclude the risk of deflation in the eurozone, in a sign that the likelihood of large-scale quantitative easing is increasing.

Purchasing government debt comes with legal obstacles and it is no panacea for the eurozone economy, said ECB governing council member Jens Weidmann.

The president of Cyprus said yesterday the risk of bankruptcy had been contained and the country had no intention of leaving the euro, in a speech laden with criticism of Europe’s currency union for “experimenting” with the island’s fate.

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.

THE European Central Bank cannot intervene much more aggressively to tackle the eurozone debt crisis, three ECB policymakers from the bloc’s core said yesterday, putting the onus on governments to act instead.

INTERNATIONAL stock markets rallied in afternoon trading on the back of bullish talk from G20 finance ministers, and despite further talk of a Greek default — from the country’s own finance minister.

EUROPEAN policymakers showed signs they were preparing new steps to cope with the region’s debt crisis even as talk of a possible Greek default gained pace yesterday.