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A renewed drop in housing prices could thwart the U.S. economic recovery in the short term while Washington's lack of a credible, comprehensive fiscal plan poses a major medium-term risk, a top IMF official said.

Despite agreeing to the new European Union fiscal stability pact, Spain has autonomously decided to defy the established deficit target. Spain will not reach the previously set deficit target of 4.4 percent of gross domestic product (GDP) and instead opts for more flexibility, setting a new target of 5.8 percent of GDP.

The U.S. economic recovery could be dented by a renewed drop in housing prices in the short term and the country lacks a credible, comprehensive fiscal plan, posing a major medium-term economic risk, a top IMF official said.

The U.S. economic recovery could be dented by a renewed drop in housing prices in the short term and the country lacks a credible, comprehensive fiscal plan, posing a major medium-term economic risk, a top IMF official said.

Spain defied the European Union on Friday, setting a 2012 deficit target at 5.8 percent of gross domestic product, a far softer goal than the 4.4 percent agreed with Brussels.

Comments made by Saudi Arabia, that its promises of financial aid to Egypt have been held back by the latter, are at odds with earlier remarks from the Egyptian Prime Minister, which lambasted foreign donors for failing to honor their pledges, according to a report.

The probability of a sharp global slowdown has eased due to recent policy measures adopted in the euro zone to tackle its debt crisis, the International Monetary Fund said on Thursday, but it warned risks to world growth remain squarely to the downside.

Ireland may need to make further changes to its budget this year if the economy continues to deteriorate, the European Commission said on Wednesday in a draft of a report obtained by Reuters.

China's engagement in resolving the euro zone debt crisis has been a topic of contention. High-profile Chinese leaders, such as Vice Premier Wen Jiabao and Vice President Xi Jinping, have reassured the European countries that China would invest in alleviating the debt. However, a financial plan has yet to be communicated.

Saudi Arabia said on Wednesday it will honor the commitment of $3.75-billion financial aid to Egypt, responding to complaints from Egyptian Prime Minister Kamal Ganzouri.

Standard & Poor's has announced that its rating on Greek sovereign debt has been downgraded to selective default, subsequent to agreement by banks to write off more than half of their Greece debt holdings.

Germany, the chancellor says, is willing to put €11 billion ($14.7 billion) into the euro zone's main bailout fund this year and next -- as long as its currency partners do the same.

Leading economies told Europe it must put up extra money to fight its debt crisis if it wants more help from the rest of the world, piling pressure on Germany to drop its opposition to a bigger European bailout fund.

Sweden said on Monday it had not added to its gold reserves in January, even though data from the International Monetary Fund on Monday showed a sharp rise in Stockholm's bullion holdings.

China's economic model, driven by exports and investment, is no longer sustainable and reforms are needed to prevent a serious slowdown, the World Bank concludes in a new report.

The euro gained broadly Monday as signs of fresh steps from the Group of 20 major economies to contain the euro zone debt crisis boosted sentiment, but higher oil prices hurt Asian stocks.

The German government will decide whether to boost the European bailout fund in March and its parliament is very likely to support any decision for more resources, Finance Minister Wolfgang Schaeuble said on Saturday at a meeting of finance officials from the Group of 20 economic powers.

Germany is easing its opposition to a bigger European bailout fund, officials said, smoothing the way for the world's leading economies to secure nearly $2 trillion in firepower to prevent more fallout from the euro-zone's sovereign-debt crisis.

A rally on Wall Street will be put to the test next week, with the S&P 500 index at its highest closing level since before the collapse of Lehman Brothers Holdings Inc. in 2008 and the European Central Bank about to flood the financial markets with a new wave of cheap money.

Saudi Arabia has raised crude exports and the United States is considering releasing oil from its Strategic Petroleum Reserve as crude-oil prices hit nine-month highs on Friday and concerns deepened over Iran's nuclear program.

Leaders in the euro zone may not be able to meet international demands to bolster their own funds for bailing out the bloc's debtors when they meet next week because Germany is showing no sign of dropping its opposition to the plan, officials in the euro zone said.

A solid U.S. candidate to head the World Bank would be good for the United States and the bank because the world's largest economy should be represented in top international bodies, outgoing President Robert Zoellick said on Saturday, while emphasizing he has no role in the selection process.

World economic powers at a Group of 20 gathering in Mexico City told Europe on Friday it would have to do more to fight its financial crisis before they agree to provide backup in the form of a bigger International Monetary Fund war chest.

Following are comments from policy-makers at the Group of 20 finance ministers and central bankers meeting in Mexico City.

Finance ministers and central bank chiefs from the Group of 20 countries will meet this weekend in Mexico City to tackle the euro zone's debt crisis and the prospect of replenishing the International Monetary Fund.

The recent financial crisis and sluggish recovery around the globe have rightly helped spur governments to take on structural reforms such as in the labor, retirement and tax sectors to the benefit of many nations, the OECD said on Friday.

In the G-20 meeting to be held in Mexico City from Feb. 25, the U.S., China and Japan will ask Europe to take additional steps to solve the economic crisis before it could receive external help.

Officials from top emerging market countries will discuss fledgling plans to set up a multilateral bank to fund projects in developing nations during upcoming Group of 20 meetings, a senior Brazilian government official said on Thursday.

Greece took its first step toward reaping urgently needed funds agreed in a 130-billion-euro rescue package Thursday as its parliament endorsed a bond swap for private holders of its debt.