A British referendum on whether to remain a member of the European Union is the single biggest “known unknown” hanging over the European economy, The Wall Street Journal reported. The vote now seems almost certain to take place this year. Prime Minister David Cameron hopes to achieve a deal at a summit in February on the changes to the relationship that he thinks are necessary to persuade Britons to back continued membership. EU officials say the parameters of the deal are already hammered out.

Medium-sized businesses were the most likely to be exposed to other firms' insolvencies in 2015, according to new research from insolvency professionals trade body R3, CRN reported. The research, which was based on R3's Business Distress Index which surveyed 500 UK businesses, found that 14 per cent of medium-sized firms (which employ 51 to 250 staff) were owed money in 2015 by an insolvent company. In total, R3 found that 113,000 UK businesses were owed money by companies going into insolvency procedures last year.

Metinvest BV, the steelmaker controlled by Ukrainian billionaire Rinat Akhmetov, said it issued a practice statement letter to propose a U.K. debt restructuring, known as a scheme of arrangement, Bloomberg News reported today. The scheme provides for a moratorium, which will prevent bondholders from taking enforcement action and is meant to give the company time to negotiate with investors, Metinvest said. The letter was sent to holders of $1.1 billion of bonds maturing in 2016, 2017 and 2018.

A day after worse than expected borrowing figures, the U.K. Office for National Statistics revised down its estimate of gross domestic product growth in the third quarter of the year from 0.5 percent quarter on quarter to 0.4 percent, the Financial Times reported today. It also revised down the annual rate of growth to 2.1 percent from 2.3 percent, adding to evidence that the economic recovery may be losing momentum. The Treasury stressed that the UK still had the joint fastest growth rate in the G7, along with the US, and employment is at a record high.

Government action to address domestic and European Union policies that cripple Britain's steel sector are still not enough to secure the industry's future, a parliamentary committee report said yesterday, Reuters reported. Nearly 4,000 jobs were lost in the British steel industry in October alone -- equivalent to about a fifth of the workforce - as Tata Steel buckled under pressure from decade-low steel prices ST-CRU-IDX, while SSI UK and Caparo Industries shut up shop.

Rolls-Royce, the British engineering group, announced a major management restructuring on Wednesday that the company said was aimed at simplifying a byzantine hierarchy and lowering operating costs after a string of profit warnings, the International New York Times reported. The group presented the changes as part of a broader plan to eliminate as much as 200 million pounds, or over $300 million, in annual operating costs.

Anglo American is preparing for a fight in South Africa over its restructuring plans as it considers whether to exit its investment in the country’s largest iron ore miner, the Financial Times reported. Kumba Iron Ore is on a long list of assets Anglo is considering putting up for sale as part of proposals outlined last week by Mark Cutifani, chief executive, to arrest the miner’s underperformance in a deepening commodities downturn. Mr Cutifani said Anglo must concentrate on its most profitable assets and could end up with a portfolio of about 20 mines from more than 50 today.

The pain among energy and mining producers is growing more acute as prices of global commodities continued their collapse on Tuesday, the International New York Times reported. The newest victim is the London-based mining firm Anglo American. On Tuesday, the company announced a drastic restructuring, which includes expanding job cuts, suspending its dividend, reducing its business unit and cutting its assets. Anglo American is far from alone, as scores of oil, natural gas, and mining companies are feeling the pain from low prices.

Lotus have won another two-week breathing space in insolvency proceedings brought against the Formula One team by the taxman, RTÉ reported. Mr Justice Birss granted the adjournment until December 21 after hearing that a share purchase agreement was due to be completed on December 16, with the £1.4million due to HM Revenue & Customs paid off shortly afterwards. Other creditors, owed in excess of £2million, would be paid by December 31, counsel Jeremy Bamford told London's High Court on Monday.

The Bank of England drew a line under the era of bank-bashing on Tuesday, saying it had no desire for new capital buffers and would seek to use its powers to strengthen lenders in good times rather than to tame the credit cycle, the Financial Times reported. The move reflected the government’s post-election shift away from the post-financial crisis emphasis on tighter regulation towards a more emollient stance on the City.