Great Recession in Europe

Total credit in Greece's banking system contracted 1.7 percent year-on-year in July after a 2.5 percent decline in the previous month, Bank of Greece data showed on Tuesday.

Credit extended to the government fell 2.3 percent after decreasing by 5.7 percent in June, the central bank said.

The eurozone economy grew by 0.6 percent in the first quarter of 2016, the highest rate for 12 months, supported by household spending and private sector investment, data from the European statistics agency Eurostat showed on Tuesday.

The only eurozone nation to suffer a contraction during the period was Greece, whose economy shrank by 0.5 percent on a quarterly basis.

Greek government bond yields rose on Thursday after the European Central Bank said it would take no decision on whether to reinstate a cheap funding lifeline to Athens banks until the country finalizes reform agreements with international lenders.

Greece's economic contraction in the first quarter of the year was bigger than originally thought, as Hellenic Statistical Authority data released on Monday showed gross domestic product fell 1.4 percent year-on-year, against a previous estimate for 1.3 percent drop.

BELGRADE - The European Commission decided on Thursday to sue Poland in the EU Court of Justice over Warsaw's fail to implement new EU rules on bank deposit guarantee schemes aiming to increase protection of depositors, the Commission said in a statement.

Greeks remained very pessimistic in the first quarter of the year, as the reading of the consumer confidence index compiled by Nielsen remained at 53 points, the same as in the three previous quarters.

The comparison with a year earlier is staggering as the reading for the quarter that had included the January 2015 elections was 12 points higher.

BELGRADE - The European Commission (EC) has raised its forecast for Serbia's GDP growth in 2016 to 2 percent, said a statement released in Brussels on Tuesday.

An earlier EC forecast, released in February, was 1.6 percent, with 2017 GDP growth anticipated to be at 2.5 percent.

Deputy eurozone finance ministers, known as the Euro Working Group (EWG), will hold a conference call on Wednesday aimed at bridging differences between the government in Athens and foreign creditors ahead of a crucial eurogroup meeting on Monday, May 9.

After months of negotiations, the unveiling of the 9 billion euros measures and government’s efforts to quickly ‘wrap up’ the agreement with Greece’s lenders concerning the debt relief has started.

BELGRADE - The European Commission (EC) has raised its forecast for Serbia's GDP growth in 2016 to 2 percent, said a statement released in Brussels on Tuesday.

An earlier EC forecast, released in February, was 1.6 percent, with 2017 GDP growth anticipated to be at 2.5 percent.