Osborne is misleading over cuts needed to balance books, says IFS

The Institute for Fiscal Studies has warned that the government has given a misleading impression of the size of the cuts required for George Osborne to meet his pledge to balance the books over the next three years.

David Cameron warns of more cuts – (many, many more, adds IFS)

Get ready for more cuts. That was the message delivered by David Cameron to the CBI’s annual conference when he warned that more savings would have to be found in the next parliament. Just how big those savings will need to be is still a matter of conjecture.

OECD urges Italy to keep austerity as Rome balks

ROME (AP) — Italy must continue to bring down its public debt, the Organization for Economic Cooperation and Development said Thursday, even as the country's new premier seeks a greater focus on economic growth instead.

Fed to keep priming economy's pump until next year, CNBC survey shows

Wall Street now firmly believes that the Federal Reserve will keep its foot on the accelerator well into 2014, with 40 of 46 respondents to the April CNBC Fed Survey forecasting asset purchases by the central bank next year.

Osborne defends welfare cuts after church attacks

LONDON (Reuters) - The government on Monday defended a raft of new welfare spending cuts, a key plank of efforts to rein in spending as the economy flounders, after church leaders attacked the changes as unjust.

Israel's new finance minister says painful cuts needed

TEL AVIV: Israel's new government will have to make painful spending cuts to tackle the country's huge budget deficit, finance minister Yair Lapid said on Sunday, just days after taking office.

Big US budget cuts begin as both sides trade blame

WASHINGTON: President Barack Obama and congressional Republicans have refused to concede any share of the blame for failing to stave off automatic spending cuts that will slash $85 billion in federal spending.

EU leaders agree 3% budget cut deal in Brussels

EU leaders have reached an agreement on the budget for 2014-20 after lengthy talks in Brussels.

IMF outlines spending cuts plan for Portugal -daily

LISBON: The IMF has identified 4 billion euros of possible spending cuts in Portugal, focused on large-scale layoffs of public sector workers and reductions in pensions, business daily Jornal de Negocios said on Wednesday.

Goodbye fiscal cliff, hello debt ceiling: Another deadline with a colorful name threatening US

WASHINGTON: Even as President Barack Obama prepares to sign the hard-won tax deal that Congress passed Tuesday, another manufactured deadline with a colorful name is threatening to hamstring the government and undermine the economy. Goodbye, fiscal cliff. Hello, debt ceiling.

Asian Markets Rise on Fiscal Deal

HONG KONG — Stock markets in the Asia-Pacific region began the year with gains on Wednesday, as investors took some relief from the last-minute fiscal deal reached in Washington, but wrestled with the lingering uncertainties that surround many other aspects of the U.S. budget.

Debt Ceiling Nears as Budget Talks Stymied

The Treasury Department said Wednesday the government would hit its legal borrowing limit by Monday, setting in motion emergency measures to keep the government operating for several more weeks and serving as a reminder that the nation's budget wrangling could continue well into 2013.

World economy: US runs out of road as fiscal cliff looms

LONDON: The wheels could come off the US economy even before it has shifted out of second gear unless politicians reach a last-minute deal to avoid $600 billion in tax rises and spending cuts that kick in next month.

State governors to meet with Obama, Boehner on "fiscal cliff"

(Reuters) - With a few weeks remaining before the onset of "fiscal cliff," a bipartisan delegation of governors is set to meet Tuesday with President Barack Obama and congressional leaders in search of some answers about the impact of deficit reduction measures on their state budgets, which rely heavily on federal aid.

Euro, shares rise on signs of Chinese growth

LONDON (Reuters) - The euro hit a six-week high and shares rose on Monday as signs of quicker Chinese growth boosted investors' risk appetite although gains were capped by U.S. budget worries.

Greece hails rebirth of a nation as EU and IMF agree to release loans

After months of drama in the eurozone and its own solvency hanging by a thread, Greece reacted with euphoria on Tuesday at the news that international creditors had decided to not only revitalise its rescue programme, releasing long-overdue aid, but cut €40bn (£32bn) from its debt mountain.

UK may face deeper government spending cuts -IFS

LONDON (Reuters) -Chancellor George Osborne may have to announce more spending cuts and tear up one of his key austerity goals next month, the Institute for Fiscal Studies said on Monday, warning government borrowing was likely to rise this year.

Bernanke: 'Stakes are high' on fiscal cliff

NEW YORK (CNNMoney) -- Federal Reserve Chairman Ben Bernanke on Tuesday urged lawmakers to avoid the fiscal cliff by acting as soon as possible.

Geithner Says Budget Deal Is ‘Within Our Grasp’

Treasury Secretary Timothy F. Geithner said he’s confident an agreement on averting the fiscal cliff can be concluded within weeks after White House talks between President Barack Obama and congressional leaders.

Greece votes on 2013 budget to unlock aid

ATHENS: Greece is expected to approve a 2013 budget on Sunday that includes unpopular spending cuts and tax hikes so it can receive an international aid payment and avoid insolvency.