France

Angela Merkel and Francois Hollande will meet later this week to decide on whether to ease the terms of Greece's bailout package after the country yesterday pleaded for more time.

Better-than-expected German and French GDP figures have failed to offset peripheral weakness as the eurozone contracted by 0.2% in the second quarter.

France's economy will slip back into recession in the third quarter, posting a 0.1% contraction, the Bank of France has warned.

European stocks are climbing after a four day sell-off, following a pledge from European Central Bank president Mario Draghi that the ECB will "do whatever it takes to preserve the euro".

Spain's 5-year bond yields hit a new euro-era high at a disappointing auction today as investors cast doubt on the country's ability to repay its debt.

GMO's Jeremy Grantham has said there will be a number of opportunities for investors to snap up discounted European equities, as the crisis continues to roll on.

German chancellor Angela Merkel has again ruled out the creation of jointly-issued eurozone debt ahead of a crucial summit in Brussels this week.

Governments across Europe are set to buy Spanish and Italian bonds through two European rescue funds, a move the ECB hopes will send a signal to financial markets that Germany is behind the eurozone.

EUROPE

EURO 2012