Japan ruling party executive says more BOJ easing not needed for now

TOKYO (Reuters) - The Bank of Japan does not need to ease monetary policy further for the time being since a delay in hitting its inflation target is mostly due to slumping oil prices, the policy chief of Japan's ruling Liberal Democratic Party said on Friday.

French econ min Macron: govt needs to cut spending for fiscal consolidation

(Reuters) - French Economy Minister Emmanuel Macron said on Tuesday the government has to take steps to make public debt more sustainable by cutting government expenditure.

France to miss EU budget deficit target

France has admitted it will overshoot the EU's 3% budget deficit target this year, putting the eurozone's second-biggest economy on a collision course with Brussels.

Ghana’s Risk Rising as Bank Prints Money to Pay Debt, Fitch Says

Ghana’s central bank is printing money to help finance the government’s budget deficit, threatening to fuel inflation and weaken a currency that’s already the worst performer in Africa this year.

Dutch PM threatened in 2012 to quit euro zone over reform contracts: newspaper

(Reuters) - Dutch prime minister Mark Rutte threatened in 2012 to take his country out of the euro zone if Brussels pushed forward with plans to impose "reform contracts" on member states, according to the daily De Volkskrant, citing several sources.

Global credit agencies keep Australia's AAA ratings intact

International credit agencies Standard & Poor's, Moody's and Fitch on Monday reaffirmed Australia's AAA sovereign rating after the conservatives won power, saying they expected little change to the fiscal framework.

Bernanke signals continued support for low rates

WASHINGTON (AP) — The Federal Reserve's low interest-rate policies are giving key support to an economy still burdened by high unemployment, Chairman Ben Bernanke told Congress on Tuesday.

January borrowing figures beat forecasts but deficit target in doubt

George Osborne's hopes of cutting Britain's budget deficit this year are hanging in the balance despite the government running a bigger than expected surplus last month.

Obama says he's ready to work with Republicans to avoid "fiscal cliff"

WASHINGTON (Reuters) - President Barack Obama, accused by Republican House Speaker John Boehner of pushing the country toward the "fiscal cliff," said on Saturday he was ready to work with congressional Republicans on a comprehensive plan to cut budget deficits as long it included higher taxes on the wealthy.

We are coming after wealthy tax dodgers, George Osborne said today

George Osborne has prepared the ground for a damaging admission in Wednesday's autumn statement that lower than expected growth means he will breach the second of his fiscal targets, on reducing debt as a proportion of national income by the end of the parliament.

US fiscal cliff another Y2K, claim UBS analysts

America's impending "fiscal cliff" is nothing more than another "Y2K" and whoever wins the Presidential election later this year will be forced into averting financial crisis, according to analysts.

Government must find extra £17bn of cuts, OBR warns

Britain must find an additional £17bn of spending cuts or tax rises to help defuse an impending demographic timebomb, the government's official forecaster has warned.

Sudanese protest over cuts amid security crackdown

KHARTOUM (Reuters) - Hundreds of Sudanese joined anti-government demonstrations in Khartoum on Saturday, witnesses and activists said, pushing protests against tough spending cuts into a second week despite a security crackdown.

Global economy: reasons to be fearful

Dark, lowering financial and economic clouds are, it seems, rolling in from every direction: the eurozone, the United States, China, and elsewhere. Indeed, the global economy in 2013 could be a very difficult environment in which to find shelter.

Egypt election outcome makes economic challenge tougher

CAIRO (Reuters) - The success of two polarizing figures in Egypt's presidential election could make it harder to put in place an effective government that can tackle an economic crisis and secure vital foreign aid.

Eurozone failure could spark rise in extremism, warns Nick Clegg

BERLIN: Europe faces a new wave of extremism and nationalism if the eurozone fails to resolve its problems, Britain's Deputy Prime Minister Nick Clegg has warned in a German news magazine.

Spain to be in recession in 2012 and 2013: European Commission

BRUSSELS: Spain will have to approve big additional savings this year and next if it is to meet its ambitious deficit reduction targets as the Spanish economy will be in recession in 2012 and 2013, forecasts from the European Commission showed on Friday.

EU austerity drive country by country

A new austerity drive has been sweeping across Europe, as governments struggle to trim huge budget deficits and the 16-nation eurozone races to reassure sceptical markets.

Some of the biggest protests have been seen in France but industrial action is making headlines elsewhere too.

EU finance ministers have agreed rules that will automatically punish member-states which break budgetary rules.

With the EU expecting all member-states to have achieved a maximum budget deficit of 3% of GDP by the financial year 2014-15, what belt-tightening measures are the countries taking?

UK

The Conservative-Liberal Democrat coalition government has announced the biggest cuts in state spending since World War II.

Savings believed to amount to about £83bn (95bn euros, $131bn) are due to be made over four years.

The Chancellor, George Osborne, told parliament that 490,000 public sector jobs would be cut over four years because the country had "run out of money". Experts predict a similar number of job losses in the private sector.

Most Whitehall departments face budget cuts of 19% on average while the defence budget will be cut by 8%. The retirement age is to rise from 65 to 66 by 2020.

Some incapacity benefits will be time-limited and other money will be clawed back through changes to tax credits and housing benefit. A new bank levy will also be brought in.

While there was no widespread industrial unrest ahead of the cuts' announcement, the general secretary of trade union Unison, Dave Prentis, accused the government of "taking a chainsaw" to public services for ideological reasons. The opposition Labour Party accused the government of a "slash and burn" policy.

FRANCE

France has announced plans to cut spending by 45bn euros (£39bn; $62bn) over the next three years in order to meet the budget deficit target.

Some of this money is expected to be saved through closing tax loopholes and withdrawing temporary economic stimulus measures.

President Nicolas Sarkozy has insisted he will press ahead with plans to raise the retirement age from 60 to 62 and the full state pension age from 65 to 67. The highest earners will also be required to pay an extra 1% income tax.

Trade unions have been organising nationwide strikes since September, with days of action in which more than a million people have regularly taken part.

French riot police have been used to re-open fuel depots blocked by protesters, though the demonstrations have been largely peaceful.

REPUBLIC OF IRELAND

The cost of bailing out the Republic of Ireland's stricken banks has risen to 45bn euros (£39bn; $62bn), opening a huge hole in the Irish government's finances.

The increased cost will see the government run a budget deficit equivalent to 32% of GDP this year.

It aims to reduce this in stages, to reach 2.9% by 2014, with savings of 7.5bn euros over that period. But a figure of 10bn euros may be more realistic, according to the parliamentary opposition.

Government spending has been slashed by 4bn euros, with all public servants' pay cut by at least 5% and social welfare reduced.

Child benefit was cut by 16 euros a month, bringing the lower rate to 150 euros a month and the higher rate to 187 euros a month.

A carbon tax has been brought in, set at 15 euros per tonne of CO2.

Bad news came in September when figures showed the economy had shrunk in the second quarter from the previous three months.

NETHERLANDS

The centre-right coalition formed after months of negotiation on 8 October said it wanted to cut the budget by 18bn euros ($24bn; £15bn) by 2015.

But the new government will have to rely on the radical Freedom Party to enact legislation and there are doubts about its long-term viability.

SPAIN

The Spanish government has approved an austerity budget for 2011 which includes a tax rise for the rich and 8% spending cuts.

Madrid has promised European counterparts to cut its deficit to 6% of its gross domestic product (GDP) next year, from 11.1% last year.

Government workers face a pay cut of 5%, starting in June, and salaries will then be frozen for 2011.

A tax rise of 1% will be applied to personal income above 120,000 euros.

Smaller savings include an end to a 2,500-euro cash payout for new mothers, known as "baby cheques".

Unemployment has more than doubled - to about 20% - since 2007.

GREECE

The Greek government has pledged to end its economic woes to make drastic spending cuts and boost tax revenue in return for a 110bn-euro (£95bn) bail-out from the EU and International Monetary Fund.

It has started drawing on the bail-out money because a sharp downgrade of its sovereign debt rating made its borrowing costs soar.

The aim is to slash the budget deficit from 13.6% of GDP.

The country has started cracking down on tax evasion, and on corruption within the tax and customs service. It will also curb its widespread early retirement schemes. The average retirement age is set to rise from 61.4 to 63.5.

Under the plan to slash the budget by 30bn euros (£26bn; $37bn) over three years Greece aims to: scrap bonus payments for public sector workers; freeze public sector salaries and pensions for at least three years; increase sales tax (VAT) from 19% to 23%; raise taxes on fuel, alcohol and tobacco by 10%.

The harsh measures have triggered public sector strikes and violence on the streets of Athens.

ROMANIA

The government proposed wage cuts of 25% and pension cuts of 15% in July in order to reduce the country's budget deficit.

Romania's economy shrunk more than 7% in 2009 and it needed an IMF bail-out in order to meet its wage bill.

It says it needs to implement new austerity measures to qualify for the next instalment of the 20bn-euro ($25bn; £17bn) IMF loan.

Angry protests have greeted the cuts and Interior Minister Vasile Blaga resigned after thousands of police officers went on strike over the 25% pay cut.

ITALY

The Italian government has approved austerity measures worth 24bn euros for the years 2011-2012. The cuts amount to about 1.6% of Italian GDP

Italy aims to cut public sector pay and freeze new recruitment. Public sector pensions and local government spending are also being targeted, and there are plans to crack down on tax evasion.

Funding to city and regional authorities is expected to be cut by more than 13bn euros.

For the next three years there will be a freeze on public sector pay rises and cuts in public sector hiring, replacing only one employee for every five who leave.

Progressive pay cuts of up to 10% are planned for high earners in the public sector, including ministers and parliamentarians.

Retirement will be delayed by up to six months for those who reach retirement age in 2011.

Provincial governments serving fewer than 220,000 inhabitants will be scrapped, as will several publicly funded think-tanks.

GERMANY

The German government has proposed plans to cut the budget deficit by a record 80bn euros ($96bn; £66bn), or 3% of GDP, by 2014.

The total deficit in 2009 was 3.1%, but is projected to grow to more than 5% this year.

"Germany has an outstanding chance to set a good example," said German Chancellor Angela Merkel.

The plans include a cut in subsidies to parents, 10,000 government job cuts over four years, and higher taxes on nuclear power. The rebuilding of the baroque Stadtschloss palace in the heart of Berlin will also be postponed.

PORTUGAL

The Socialist government of Jose Socrates has announced a range of austerity measures aimed at cutting the deficit to 7.3% this year and 4.6% in 2011.

Top earners in the public sector, including politicians, will see a 5% pay cut.

VAT will rise by 1% and there will be income tax hikes for those earning more than 150,000 euros. By 2013 they will face a 45% tax rate.

By 2013 military spending will have been cut by 40% and the government is delaying the launch of two high-speed rail links - the Lisbon-Porto and Porto-Vigo routes.