The euro zone economy may face another contraction after business activity grew less than expected in November despite heavy discounting, surveys on Wednesday showed, although Asian readings were more upbeat.

Heavy discounting failed to stop euro zone business activity growing less than thought last month, a survey showed on Wednesday, suggesting the bloc's economy may contract again early next year.

British manufacturing activity unexpectedly picked up a little speed in November as domestic demand offset falling exports due to sluggish orders from the euro zone and emerging markets, a survey showed on Monday.

ECB Executive Board member Sabine Lautenschlaeger said on Saturday she saw little room for further easing of monetary policy despite a further fall in euro zone inflation.

The European Commission should be able to veto national budgets if they breach the European Union's common fiscal rules, German Finance Minister Wolfgang Schaeuble said on Friday.

Failure to reform and shield weaker members threatens to divide the euro zone, the head of the European Central Bank warned on Thursday, amid fresh signs the currency bloc's economy is losing speed.

European Central Bank President Mario Draghi has moved closer to launching sovereign debt purchases and data this week will show just how dangerously low inflation has fallen in the $13 trillion euro zone economy.

Germany narrowly avoided recession in the third quarter of the year and France exceeded low expectations, putting the euro zone on course for anemic growth but no contraction.

A large group of professional forecasters cut their outlook for euro zone inflation and growth, underlining a trend that could prompt the European Central Bank to take more policy action to kick-start the region's flagging economy.

The euro zone will need another year to reach even a modest level of economic growth, the European Commission said on Tuesday, calling on Germany to help as Chancellor Angela Merkel again rejected a spending spree.