A rebound in the euro late last summer, coupled with further falls in the price of oil, partly explains a slowdown in eurozone inflation, the European Central Bank (ECB) said in its economic bulletin yesterday.

IF any of us were to ask ourselves how we might cope if something around 15,000 desperate refugees arrived on our shores in less than two days, and answer the question honestly, we would have to reach pretty sobering conclusions.

The European Central Bank has pulled out of any involvement in the bank inquiry after public claims its comments could be used as evidence instead of an “informal exchange of views” — and private fears any participation could see it dragged before Greek politicians at a later date.

The European Central Bank cut its inflation and growth forecasts for the eurozone yesterday as its president said things could get worse.

Finance chiefs from the G7 economic powers discussed ways to revive the faltering global recovery yesterday as the US leant on Europe to reach a deal to avert a Greek bankruptcy.

The European Central Bank yesterday warned that record low interest rates were putting insurance firms and banks under increasing pressure and warned that any sell-off in stocks and bonds could damage the eurozone’s recovery.

Mario Draghi has one month to win consensus on quantitative easing by reassuring those worried that the European Central Bank risks losing its own money.

The European Central Bank will judge early next year whether it needs to take more action to revive the eurozone economy, president Mario Draghi said yesterday.

The European Central Bank will next quarter consider buying sovereign debt in relation to the size of each euro member’s economy if current stimulus proves insufficient, vice president Vitor Constancio said.

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

Europe is not at risk of sliding into full deflation but the current rate of inflation is dangerously low, European Central Bank vice president Vitor Constancio said at the weekend.

Roughly one in five of the eurozone’s top lenders failed landmark health checks at the end of last year but most have since repaired their finances, the European Central Bank said yesterday.

European Central Bank vice-president Vitor Constancio said €1 trillion of asset-backed securities (ABS) and covered bonds are eligible for purchase by the institution.

Euro-area inflation slowed more than economists forecast in May, cranking up pressure on the European Central Bank to deploy measures as soon as this week to kindle prices and drive growth.

Irish banks will have to prove they can withstand another slump in property prices, a surge in unemployment, and sclerotic growth over a three-year period as part of the EU-wide stress tests later this year.

The European Central Bank says it will look for capital shortfalls in euro-area banks by examining more than €3.72tn in assets in on-site checks.

The European Central Bank’s willingness to let lenders fail will depend on the funds available to wind them down, analysts said, after the new head of banking supervision said some should go out of business.

ECB vice president Vitor Constancio said the fact that eurozone bank balance sheets will be probed before undergoing a simulated economic downturn later this year makes the test harder to pass.

Europe’s efforts to form a united front behind eurozone banks are reaching a climax, but many fear they will fail to restore confidence and prove flimsy should another crisis strike.

Agreeing a credit line between a common resolution fund and the ESM will be the most effective way of breaking the bank-sovereign doom loop, according to Finance Minister Michael Noonan.

The ECB cannot ease up on bank stress tests this year, otherwise the eurozone risks being lumbered with a zombie banking system and stagnant growth for the foreseeable future, according to a leading banking expert.

Footing the bill of the Cypriot bailout

The eurozone slipped deeper than expected into recession in the last three months of 2012 after its largest economies, Germany and France, shrank at the end of a wretched year in the bloc.

The EU banking union, intended to save banks from bringing down states, is teetering on the edge as countries battle to save their domestic interests.

EUROPEAN Central Bank president Jean-Claude Trichet said European governments should consider extending and broadening the region’s bailout fund, stepping up pressure on leaders to fight the fiscal crisis.

The Government’s four year plan to fix the economic crisis will be published early next week, a minister said tonight.

Irish borrowing costs eased back today following assurances from key figures in the European Union that investors would be repaid if Ireland tapped into a rescue fund.

EUROPEAN Central Bank governing council member Vitor Constancio said surging oil prices may lead to a period of stagflation, when inflation accelerates and economic growth stagnates.

EUROZONE inflation rose to a four-month high of 2.1% in August, compared to 3.2% in Ireland.