- 35 updates
In an interview with the Guardian the Managing Director of the International Monetary Fund says talk of a rift between France and Germany over the euro is 'largely overstated'.
The coalition is preparing a significant boost in state-backed infrastructure investment in a fresh push on growth, the Deputy Prime Minister has indicated.
Nick Clegg said instructions had been issued to the Treasury setting out the Government's plan to use its balance sheet to underwrite major projects such as housing.
It comes as the International Monetary Fund urged the UK to look at fuelling infrastructure funding or cutting VAT or National Insurance if the economic situation worsened.
In an interview with the Financial Times, Mr Clegg denied the shift in focus was "plan B."
He conceded the coalition's stark economic warnings could have a "dampening effect", telling the newspaper ministers had initially had no choice but to set out "in very lurid terms the state of the emergency we were facing."
"That kind of language over a prolonged period of time can have a dampening effect on mood, which is very important in an economy," he added.
Shadow Chancellor Ed Balls has criticised the government for "failing" to create growth after the International Monetary Fund warned that growth in the British economy is "too low".
Mr Balls said that if the economy is 'under-performing' the government need to act on "jobs and growth".
George Buckley, chief UK economist at Deutsche Bank has told ITV News that the International Monetary Fund report was "positive". Mr Buckley said that although the IMF have acknowledged growth in the UK is "weak", but that it would recover in the second half of the year.
A Downing Street spokeswoman has said that the International Monetary Fund has "very clearly endorsed" the Government's economic plans as "appropriate."
The spokeswoman told reporters at a daily Westminster briefing that the IMF's comments about the possible need for fiscal easing related to "a hypothetical situation" was currently not an issue.
The Treasury has drawn up contingency plans in relation to possible outcomes of the eurozone crisis.
The Greek national tourist board have issued a statement urging holidaymakers to continue to visit the country, despite the financial crisis.
The President of the Association of Greek Tourism Enterprises (SETE) told a conference on Saturday:
The Chairman of the Treasury Select Committee Andrew Tyrie has responded to the International Monetary Fund report published today, agreeing with the IMF that the Eurozone is now a "major threat to the UK's recovery". Mr Tyrie said:
The head of the International Monetary Fund, Christine Lagarde has told ITV News that if growth in the UK is below target then at that point in time "fiscal easing should be considered".
Ms Lagarde said that enterprises need to be able to "finance their investments" in order to create more jobs.
Watch the full interview tonight on News at Ten on ITV1.
IMF chief Christine Lagarde tentatively joined calls for the eurozone to issue so-called 'eurobonds', debt issued (and therefore guaranteed) jointly by eurozone members.
She said she would encourage the German Chancellor Angela Merkel to "play her cards", i.e. agree to issue the bonds in return for Greece and other eurozone countries signing up for a strict programme of deficit reduction.
Watch the full interview tonight on News at Ten on ITV 1.
Latest ITV News reports
The International Monetary Fund chief Christine Lagarde has spoken exclusively to ITV News' Julie Etchingham on Britain's economy.
The IMF handed over its report card on the British economy. It praised the Government's progress but made some startling recommendations.