Spain and Italy succeed in selling €22bn of debt ECB president Mario Draghi, who last month oversaw the issuance of €489bn in cheap loans to European banks, held interest rates a 1pc. He told reporters that the move was "providing a substantial contribution to improving the funding situation of the banks, thereby supporting financing conditions and confidence." However the ECB boss warned that the debt crisis still had a firm grip on the European economy. "The economic outlook remains subject to high uncertainty and substantial downside risk," he said. Eurostat, the European Union's statistics agency, said output in the 17 nation eurozone fell 0.1pc in November, the third monthly decline in a row, and was down 0.3pc on the year. Mr Draghi added that the ECB is "really very concerned" about the economic and political stability of Hungary. Christine Lagarde, head of the International Monetary Fund (IMF) held "informal talks" with Hungarian politician Tamas Fellegi in Washington tonight in the first steps towards negotiations for fresh financial support after Budapest passed controversial financial reforms. Otherwise, all eyes are on the talks between Athens and the holders of Greek government debt. The Institute of International Finance (IIF) told reporters that time to reach an agreement on a debt swap was "running short." Charles Dallara, head of the IIF, met with Lucas Papademos, prime minister, and Evangelos Venizelos, finance minister, on Thursday. Angela Merkel, the German Chancellor, has said Greece will not receive its next bail-out without a deal.