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Spanish public debt soars to new record

Spain's public debt shot to a record high in the first quarter of this year, the Bank of Spain said Friday, despite Prime Minister Mariano Rajoy's hotly protested austerity squeeze. Spain's public debt surged to 88.2 percent of annual economic output, up by 15.2 percentage points from a year earlier, the central bank said. Spain, the fourth largest economy in the eurozone, is struggling to trim its annual deficits, so it is continuing to pile on more debt.

France threatens to block start of EU-U.S. trade talks

By Mark John and Philip Blenkinsop PARIS/BRUSSELS (Reuters) - France threatened on Wednesday to block the start of free trade talks between the European Union and the United States if movies and digital media are not kept out of the negotiations. Two days before EU countries are supposed to give the go-ahead for negotiations, France said it would veto the talks unless the sector - that it sees as crucial to its cultural identity and under threat from Hollywood - is excluded.

Expectations for Obama launch of trade talks during European visit hitting snag

WASHINGTON - One of the big goals of President Barack Obama's upcoming trip to Europe may be in jeopardy, with French objections threatening to hold up the launch of negotiations on a sweeping U.S.-European Union free trade pact. The proposed Transatlantic Trade and Investment Partnership has raised great expectations of boosting growth and jobs by eliminating tariffs and other barriers that have long plagued economic relations. It would create a common market with common standards and regulations across countries that account for nearly half the global economy.

France threatens to block start of EU-U.S. trade talks

By Mark John and Philip Blenkinsop PARIS/BRUSSELS (Reuters) - France threatened on Wednesday to block the start of free trade talks between the European Union and the United States if movies and digital media are not kept out the negotiations. Two days before EU countries are supposed to give the go-ahead for negotiations, France said it would veto the talks unless the sector - that it sees as crucial to its cultural identity and under threat from Hollywood - is excluded.

EU to levy 4.7 percent duty on jet fuel imports from Mideast

By Ron Bousso LONDON (Reuters) - The European Union will impose a 4.7 percent duty on jet fuel imports from the Middle East starting next year, officials said on Wednesday, in a move that could significantly increase costs for the EU's embattled airlines. Last month, EU officials said jet fuel imports could dodge the new tariff thanks to a waiver known as airworthiness certificates or EASA Form 1 certificates.

Euro has demonstrated resilience through economic crisis, says former banker

MONTREAL - The worst economic crisis since World War II has demonstrated the resilience of the euro, the former head of the European Central Bank said Wednesday. "It was so bold the setting up of the euro that nobody would trust that it could be solid," Jean-Claude Trichet told reporters after speaking to the Conference of Montreal. "But it proved it could be solid." "What was less solid was the economic union," he added.

European stocks rebound despite stimulus concern

European stocks mostly rebounded on Wednesday after sharp losses the previous day over concerns about global stimulus, while traders also digested economic data and takeover activity. London's FTSE 100 index of leading shares rose 0.11 percent to 6,346.85 points in afternoon deals following news that British unemployment fell in the three months to the end of April. Frankfurt's DAX 30 index edged down 0.06 percent to 8,217.86 points and in Paris the CAC 40 grew 0.61 percent to 3,833.95. The Madrid market jumped 1.69 percent but Milan sank 0.31 percent.

ECB official: bond purchase plan aims to carry out monetary policy, not help governments

KARLSRUHE, Germany - A top European Central Bank official rejected accusations that the bank had exceeded its powers while fighting the financial crisis, telling Germany's supreme court its bond-buying program is only meant to ensure its monetary policy works. The Federal constitutional Court was holding a second day of hearings to weigh allegations that the ECB's plan to purchase government bonds amounted to financing for governments, which is illegal for the central bank. Critics also say it exposes taxpayers to potential losses and threatens the ECB's independence.

European stocks fall again on stimulus worries

Europe's stock markets mainly closed in the red Wednesday amid persistent concerns about global stimulus, while traders also digested economic data and takeover activity. London's FTSE 100 index of leading shares finished 0.64 percent lower at 6,299.45 points, the DAX 30 in Frankfurt shed 0.96 percent to end at 8,143.27 points and the CAC 40 in Paris dropped 0.44 percent to 3,793.7 points, falling under the 3,800 mark for the first time since April 23. The Milan market followed the trend, nosediving 1.61 percent, while Madrid rose 0.43 percent.

Buba chief says would favor more limits on ECB mandate

KARLSRUHE, Germany (Reuters) - Bundesbank chief Jens Weidmann told Germany's Constitutional Court on Wednesday he would favor imposing further limits on the European Central Bank's mandate due to possible risks to stability. In a hearing into the legality of the ECB's bond-buying program, Constitutional Court President Andreas Vosskuhle asked whether further regulating the ECB's mandate via German "constitutional directives" would be "a sensible strategy". Weidmann replied:
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