Perhaps the most important question hanging over the European economy this year is whether Italy’s recovery is for real, The Wall Street Journal reported. Statistics show that Italy last year emerged from its seven-year slump, growing by 0.8% in 2015 and is widely forecast to grow by 1.5% this year, and unemployment has fallen from a peak of 13% to 11.3%. Surveys show business and consumer confidence has rebounded—indeed, consumer confidence is at its highest levels in more than a decade.

There was a 70% increase in the number of permanent solutions agreed through the Insolvency Service of Ireland last year, RTÉ.ie reported. The ISI said the recent removal of the banks' veto over proposed arrangements involving debtors' homes has already resulted in financial institutions reversing some of their own rejection decisions. Lenders overturned four out of 12 rejection decisions which were appealed last month. There were 1,700 permanent solutions for debtors agreed last year, a 70% increase on 2014.

The number of jobless people in the world is set to rise this year, as problems in emerging markets prevent the global unemployment rate from returning to pre-crisis level, the Financial Times reported. The International Labour Organisation, a UN agency, forecasts that the number of unemployed people in emerging and developing countries will increase by 4.8m in the next two years. In particular, rising jobless numbers in China, Brazil, Russia and elsewhere will offset improvements in the US and Europe, it says.

Power companies with wind-generation capacity could take over transmission line projects in Brazil operated by Abengoa SA after the Spanish construction group's insolvency filing halted work on the systems, Reuters reported. Candidates include groups like Renova Energia SA and CPFL Renovaveis SA that would lose revenue if the transmission lines go unfinished or remain inactive, three specialists with knowledge of the discussions said on Monday. Any proposal to take over Abengoa's rights would require approval from Brazil's electrical power regulator Aneel.

The number of jobless people in the world is set to rise this year, as problems in emerging markets prevent the global unemployment rate from returning to pre-crisis level, the Financial Times reported. The International Labour Organisation, a UN agency, forecasts that the number of unemployed people in emerging and developing countries will increase by 4.8m in the next two years. In particular, rising jobless numbers in China, Brazil, Russia and elsewhere will offset improvements in the US and Europe, it says.

Dozens of large shareholders in Volkswagen plan to sue the carmaker in a German court, seeking compensation for the plunge in its shares due to its emissions test cheating scandal, the International New York Times reported. Law firm Nieding + Barth said on Monday it would lodge a case with a regional court in Brunswick this week, seeking hundreds of millions of euros in damages on behalf of 66 institutional investors from the United States and Britain. "On top of that, we collected several thousands of private investors.

Concerns about the €40bn of non-performing loans on the balance sheet of Banca Monte dei Paschi di Siena reduced the market capitalisation of Italy’s third-largest lender by assets to just €2.2bn as its shares hit a record low, the Financial Times reported. Led by Monte dei Paschi, shares in Italian banks fell sharply amid predictions of a tough year for the sector as an estimated €330bn in NPLs and low interest rates weigh on profitability.

Troubled oil and gas company Petroceltic has confirmed it has been given more breathing by its banks today as it continues its search for a buyer, the Irish Times reported. The publicly quoted exploration company is in breach of its senior bank facilities, but has received a number of waivers on loan repayments from its lenders. The latest waiver, which expired on Friday, has been extended until the end of the month.

French President François Hollande said Monday he will pour more than €2 billion ($2.2 billion) in public money into apprenticeships and training schemes as part of an emergency plan to combat the unrelenting rise in unemployment, The Wall Street Journal reported. The French leader said economic growth remains too weak to have a sustainable impact on unemployment, which has crept upwards throughout his presidency to reach 10.6% last year, an 18-year high.

The European Central Bank sees scope for further cuts to its deposit rate after the one announced last month, according to minutes of the bank's December meeting that were released on Thursday, the International New York Times reported on a Reuters story. The eurozone economy is at risk from weakening emerging market growth, sagging demand for its exports and increased geopolitical risks, the E.C.B. said in its report on the Dec. 2-3 meeting at which it eased its policy less than markets had been expecting.