European stocks advanced, with the Stoxx Europe 600 Index posting its biggest annual gain since 2009, amid shortened trading hours for New Year’s Eve before American consumer confidence and housing data.
Ireland has been functioning thanks to rescue loans since 2010. The government has nationalized five banks and the country’s budget deficit will exceed 8 percent of output this year, European Union forecasts show.
The European Central Bank will restart its controversial government bond purchases rather than offer banks another round of unlimited three-year loans as the sovereign debt crisis worsens, a survey of economists shows.
Mario Draghi has asked a European Central Bank panel to study options for new bank funding measures, as policy makers try to figure out how to deal with any future liquidity shortages, two euro-region central bank officials said.