countries that use the euro

After a hugely-turbulent 2011, the 17 countries that use the euro will be quickly confronted in the new year with major hurdles to solving their government debt crisis, just as the eurozone economy is expected to sink back into recession.

All countries that use the euro should have mandatory balanced budgets and better coordination of economic policy, the leaders of France and Germany said Tuesday, pushing for long-term political solutions instead of immediate financial measures like a single European bond.

Official data show inflation eased to an annual rate of 2.7 percent in May for the 17 countries that use the euro.

Official figures show that the economy of the 17 countries that use the euro grew by a quarterly rate of 0.8 percent in the first three months of the year, with Greece unexpectedly posting strong growth.

European finance ministers agreed Sunday to create a permanent mechanism to solve future debt crises in the 16 countries that use the euro in an attempt to calm fears over the stability of the currency bloc.

Official figures show that the economy of the 16 countries that use the euro grew modestly during the first quarter of the year, despite a further big drop in output in debt-laden Greece.

Countries that use the euro said Thursday they have agreed on a financial backstop for Greece that would combine loans from other eurozone governments and the International Monetary Fund, a move aimed at stopping the government debt crisis that has undermined the shared currency.

The European Union plans to create a European Monetary Fund to better coordinate the economies of the 16 countries that use the euro and prevent financial debacles such as the Greek debt crisis from undermining the credibility of Europe's single currency.

The European Commission says that economic sentiment in the 16 countries that use the euro fell during February, a further sign that the recovery from recession has lost its momentum.

Official figures show that the 16 countries that use the euro barely grew in the last three months of 2009, a further sign that the single currency bloc's recovery from recession is being constrained by the performance of some of its weakest members.