EU Economy Commissioner Olli Rehn said Friday that France needed more reform rather than more austerity, suggesting a slower fiscal adjustment a day after the government's ability to meet its deficit target was called into question.

"Additional savings measures are not essential," Rehn told the French daily Le Monde, saying a public deficit of 3.0 percent of gross domestic product (GDP) remained the target but adding that once a credible medium-term budget plan backed up by reforms was in place "you can have a slower adjustment".

The White House accused Republicans Thursday of walking away from a deal and mounting futile diversionary votes as hopes plunged of a deal to stave off a damaging year-end fiscal crisis.

If the two sides cannot reach a deficit-cutting agreement before the end of the year, taxes for all Americans will rise and huge automatic spending cuts will be triggered, which could cause a recession and jolt the global economy.

British defence giant BAE Systems announced on Friday a £2.5-billion ($4.1-billion, 3.1-billion-euro) deal to supply military aircraft to Oman.

The group said in a statement it would supply 12 Typhoon fighter aircraft and eight Hawk trainer jets, delivering from 2017.

Standard and Poor's slashed Cyprus' credit rating Thursday by two notches to CCC+, saying the eurozone member was facing increasing financial pressure, with bailout negotiations still unfinished.

"With the government's financing options increasingly limited -- coupled with what we view as the hesitant attitude of Cyprus' eurozone partners toward sharing the cost of a severe banking crisis -- we view the risk of a sovereign debt default as considerable and rising," the ratings agency said.

The European Commission cleared restructuring plans and aid for four small Spanish banks on Thursday as part of efforts to stabilize the country's stricken banking system and help its economy.

The move completes the state funding part of the restructuring plan, laying the foundation "so that the financial sector is not an obstacle to economic recovery," EU Competition Commissioner Joaquin Almunia said.

Jordan said on Thursday Egypt has resumed full gas supply of 250 million cubic meters (8.8 billion cubic feet) a day to the energy-poor kingdom, after the flow was disrupted by repeated pipeline attacks.

"In the past few days, we received between 190 and 210 million cubic meters of gas from Egypt. But today Egypt resumed full supplies of 250 million cubic meters," Prime Minister Abdullah Nsur told a joint news conference with his Egyptian counterpart Hisham Qandil.

Greece opened its Christmas stockings early this year with an unexpected debt rating boon and European Central Bank support but analysts warn that risks remain in the troubled nation's fragile fiscal recovery.

A day after ratings agency Standard and Poor's gave Greece's sovereign debt a six-notch ratings hike, the ECB on Wednesday said it would again accept Greek bonds as collateral for central bank loans.

The World Bank on Wednesday upwardly revised its projection for Chinese economic growth in 2013 from 8.1 percent to 8.4 percent, but predicted the rate would taper off in the longer run.

This year, growth in the world's second-largest economy is expected to reach 7.9 percent, slightly better than the previously projected 7.7 percent, the Washington-based body said in its East Asia and Pacific Economic Update.

Australian Treasurer Wayne Swan on Thursday conceded for the first time he was unlikely to deliver a budget surplus this financial year, a backdown the opposition called "humiliating".

Earlier this year, Swan declared the "deficit years of the global recession" over and since then he has insisted a surplus was on the cards, despite plunging commodities prices sending clear signs that all was not well.

Hong Kong's de facto central bank said Thursday it would probe UBS over possible rigging of the city's interbank offered rate, a day after the Swiss giant agreed to pay a huge fine over the Libor scandal.

The Hong Kong Monetary Authority said it has received information from overseas regulators about "possible misconduct" by UBS involving submissions for the city's interbank rate, known as Hibor, and other reference rates in Asia.