Headlines

A multimillion-dollar embezzlement case involving Greece's national tourism agency has dealt a new blow to the crisis-hit country's political establishment, the Wall Street Journal reported today. Auditors in December were asked to examine what government officials say is a hole in the agency's books, after an incident involving an allegedly fraudulent check raised questions about possible corruption at the agency. The auditors have discovered a series of improper transactions totaling about €12 million ($15.8 million) and extending back as far as 2003.

Portugal's president sent the 2013 budget to the country's highest court for review, an unusual move that highlights deepening opposition to a two-year austerity drive, the Wall Street Journal reported today. President Aníbal Cavaco Silva, who is the head of state and like Prime Minister Pedro Passos Coelho belongs to the right-of-center Social Democratic Party, signed the budget bill into law on Monday, but expressed reservations the next day.

Sweden’s financial watchdog will stop turning a blind eye to traders who have ignored a rule requiring them to report company bond prices as the regulator seeks to improve transparency in a growing market, Bloomberg News reported today. The Swedish Financial Supervisory Authority will ask corporate debt traders to follow rules similar to those adhered to in the government and mortgage bond markets. That means they must file trade reports including volumes as well as the highest, lowest and closing prices, no later than 9 a.m. the next day.

Elections this year in two of the euro-zone's largest countries—Germany and Italy—cast a shadow over the Continent's politics and complicate needed overhauls of the currency union, the Wall Street Journal reported today. As the euro zone this week enters its fourth year of a debt crisis and the economic woes of Greece and Spain continue apace, much work is needed to heal the Continent's economy and ensure the euro's viability. Italy votes first, on Feb. 24-25.

Euro-area manufacturing output contracted more than initially estimated in December, adding to signs a recession in the currency bloc may extend into this year as leaders struggle to tackle the sovereign-debt crisis, Bloomberg News reported today. A gauge of manufacturing in the 17-nation euro area fell to 46.1 from 46.2 in November, London-based Markit Economics said today. That’s below an initial estimate of 46.3 on Dec. 14. A reading below 50 indicates contraction. The gauge has been below 50 for 17 months.

China has issued a fresh warning to its local governments to control risk and stop using unauthorized fundraising methods to pay for the building of infrastructure and other projects, the Wall Street Journal reported today. The finance ministry, in a statement jointly issued with other government agencies and published on its website Monday, said there has been an increase of unauthorized funds by local governments and reiterated existing restrictions on the use of leasing, trust, and build-and-transfer arrangements to pay for public works.

Financial consulting firm Alix Partners warned that global investment banks must tackle head-on issues such as bonuses and their addiction to the "steroids" of debt-fueled growth, the London Telegraph reported today. According to Alix, investment banks still pay their staff far too much, pointing out that the "overpayment effect" last year was $18 billion (£11 billion), or close to 30 percent of the world's top 15 banks' combined pre-tax profits.

Singapore’s economy grew in the past three months of 2012, avoiding an expected recession as services put in a strong showing and gross domestic product figures for the first three quarters of the year were revised downwards, Reuters reported today. Singapore, whose trade is equal to about three times its G.D.P., has been badly hit by the weakness in Western economies, which has crimped demand for many of its exports. The city-state’s electronic manufacturers have also failed to tap surging demand for smartphones, unlike rivals in South Korea and Taiwan.

Local governments across Spain, facing a steep drop in revenue and largely unable to borrow from banks or financial markets, have been paying suppliers of goods and services months behind schedule, the Wall Street Journal reported on Saturday. By the end of October, regional governments had accumulated bills in 2012 for providers, interest payments and other obligations totaling €13.7 billion ($18.1 billion), more than 1 percent of Spain's gross domestic product, a government report found.

Egypt's currency plumbed new depths yesterday as policy makers tried to reassure the public and investors that they can prevent a full-scale currency devaluation while still repairing Egypt's budget deficit, the Wall Street Journal reported today. The country's worsening economic crisis comes after President Mohammed Morsi isolated his political opponents to push through Egypt's Islamist-leaning constitution, sparking weeks of riots, protests and political uncertainty.