The European Central Bank is exploring ways to directly help small and medium-sized companies as a way to boost the recession-hit eurozone economy directly, said Benoit Coeure, A member of the bank's executive board. Coeure, speaking at a conference south of Paris, did not say how exactly the policy would work and stressed that the ECB would not intervene to replace "other actors" including struggling banks burdened by non-profitable assets. Coeure said the ECB "can only act within its mandate" and would allow the transfer of private sector risk onto its balance sheet.

The European Commission welcomed Friday French President Francois Hollande's "deep commitment" to Europe and looked forward to seeing promised proposals to boost the flagging EU. "We hail the deep committment of France and the French authorities to Europe," a European Commission spokesman said of Hollande's comments Thursday that he would take the initiative to end Europe's "lethargy" and promote a closer political union within two years.

ATHENS, Greece - Greece's deep, six-year recession is likely to end in 2014, but growth will be weak and unemployment will remain above 20 per cent for another three years, the country's international debt inspectors said. The European Commission issued the gloomy predictions Friday in a 237-page assessment of Greece's bailout agreement, as the country formally received its latest emergency loan payout, worth 4.2 billion euros ($5.4 billion).

BERLIN - Germany and France recognize that their co-operation is key to overcoming Europe's persistent economic crisis, but comments Thursday by the leaders of the continent's No. 1 and 2 economies suggested they still have diverging priorities. French President Francois Hollande argued that the 17-nation eurozone should integrate more, calling for greater pooling in the long run of political and financial resources. He favours easing back on debt reduction measures to help the economy grow.