European cuts

The leaders of France and Germany use their new year’s day messages to predict that the coming year will be more difficult than 2011.

From the Arab Spring to the eurozone crisis, Channel 4 News casts an expert eye on the events that changed the world this year.

Fears of another credit crunch are eased slightly as banks take up almost 490bn euros in loans from the European Central Bank.

Sir Richard Branson and other British businessmen urge the government to “re-engage in the decision-making process” within the EU, which they say is vital to the British economy.

The head of the IMF, Christine Lagarde, warns that immediate action needs to be taken to prevent a global depression not seen since the 1930s, as eight of the world’s biggest banks are downgraded.

European Commission President Jose Manuel Barroso criticises the UK’s approach to negotiations at last week’s Brussels summit, saying British demands risked compromising the internal market.

The UK emerged from last week’s Brussels summit with a “bad deal”, says Deputy Prime Minister Nick Clegg, who fears Britain will now become “isolated and marginalised” within the EU.

As Conservative backbench MPs welcome David Cameron home from Brussels after his decision to veto EU treaty changes, is the euro actually any closer to being saved?

Have David Cameron’s actions in Europe isolated the UK politically? One German MEP tells Channel 4 News: “They’ve asked too much and got nothing.”

David Cameron has refused to sign up to the EU treaty deal saying it is not in Britain’s interest, leaving Europe to agree reforms without the UK.

Ratings agency Standard and Poor’s warns it is considering downgrading the euro bailout facility itself after suggesting similar moves for many eurozone countries amid the ongoing financial turmoil.

As France and Germany push for sanctions for eurozone members who break borrowing limits, Channel 4 News can reveal that both countries are among the worst offenders.

After key talks with German Chancellor Angela Merkel, France’s President Nicolas Sarkozy says Europe needs a new treaty – as six Euro countries face credit downgrade.

Germany’s leader Angela Merkel wants a new treaty and a “fiscal union” to save the eurozone from collapse, but new rules in Europe could see David Cameron face a backbench revolt.

Chancellor George Osborne warns Britain will “find it difficult to avoid a recession” if growth in Europe grinds to a halt, while France’s central banker says Europe faces “a true financial crisis”.