The economy suffered a marked slowdown in growth in the final three months of last year, official figures released tomorrow are expected to show.

Important members of Chancellor Angela Merkel's coalition in Germany are resisting plans for an increase in the EU's bailout fund to protect Spain from contagion, complicating a crucial meeting of EU finance ministers on Monday.

The chances of Britain dropping back into recession this year have doubled to one-in-five, a leading economic forecaster has warned, amid mounting fears the recovery is slowing.

The European Central Bank has signalled the growing threat of inflation could prompt it to raise interest rates across the eurozone sooner than expected.

The FSA says adviser firms' over-reliance on risk profiling and asset allocation tools could be seriously detrimental to customers and warns it will take tough action on companies failing in this area.

The euro has fallen against the dollar amid renewed debt fears in the region as the yield on Portugal's treasury bill sale climbed to nearly double that of its last issuance.

Manufacturing grew at its fastest pace for 16 years in December, an industry survey suggests.

Germany has refused to give any ground on Europe's rescue machinery despite the escalating political and economic crisis across much of the eurozone periphery, guaranteeing a bitter clash with EU partners at a crucial summit in Brussels today.

Deputy governor of the Bank of England Charles Bean says another eurozone sovereign debt crisis could "derail" Britain's recovery, hitting businesses and households hard.

The chances of the euro breaking apart or disintegrating completely have been put at "one-in-five" by one of the UK's leading economics consultancies.