eu

The FTSE 100 jumped 1.5% this morning, reversing the losses of yesterday afternoon's session.

The European Union said Greece will not be allowed to default because of the weak state of the region's banking system.

The European Union (EU) is preparing to restructure Greece's rescue package after ministers publicly acknowledged it would need further assistance.

Portugal's finance minister said its €78bn EU rescue package will push the country into recession this year.

Portugal has become the third nation to ask the European Union for financial assistance.

The Treasury and the FSA are proposing to extend the regulator's powers to discipline firms who flout EU regulations or decisions made under UCITS IV.

MORE EURO CRISES IN 2011

Allied Irish Banks has been forced to ditch plans to pay staff €40m in bonuses after the Irish government threatened to withdraw its financial support.

The Irish government has announced plans to save €15bn over the next few years to tackle the country's debt crisis.

Ireland became the second country this year to accept billions in EU funding after last night conceding its banking and budget crisis was too big to handle on its own.