Germany

Fears of France and Spain being the next to suffer in the eurozone debt crisis intensified as 10-year bond spreads reached euro-era highs above German yields yesterday.

Germany's debt to GDP ratio is set to fall by 2.6 percentage points after officials discovered an accounting error at a government-owned bad bank.

WEIMAR LESSONS

EURO PLAYTHING

Germany has cut its economic growth forecast over fears its exports will slow, the BBC reports.

Eurozone banks may have to raise €200bn to boost their capital reserves under a proposal from the European Banking Authority (EBA).

Adair Turner has spent more than £66,000 in the past 15 months flying around the world as FSA chairman - largely because he never flys any lower than business class.

German Chancellor Angela Merkel has said Europe is facing a race against time to save its indebted European banking system, warning investors risk being hit by deeper losses before the EFSF steps in.

German MPs have voted in favour of increasing the country's commitments to the European Financial Stability Facility as part of an expansion of the bailout fund.

Major US indices are trading 1.5% higher as shares follow UK and European markets upwards.