Business week in pictures

In a busy week for economics announcements, the Bank of England was put under further pressure after November's inflation data came out at 3.7%, nearly double the government's target Photograph: Tim Ireland/PA Archive/Press Association Images

And there was bad news for the government after unemployment made a surprise jump to above 2.5 million Photograph: Homer W Sykes / Alamy/Alamy

And the gloom is set to continue with 100,000 public sector jobs expected to go by spring. Local authorities which have already announced their redundancy estimates include Lancashire, which expects up to 5,000 posts to go, Birmingham (5,000), Leeds (3,000) and Norfolk (3,000) Photograph: Oli Scarff/Getty Images

Things were slightly better on the retail front - last-minute shoppers are set to bag a cut-price Christmas this year as retailers offer hefty discounts to boost spending before the looming government austerity drive Photograph: Danny Lawson/PA

Internet sales hit a record high last month as more UK shoppers bought their Christmas presents online rather than in the shops. But with the bad weather hampering deliveries in some parts of the country, there are also fears that many of these gifts may not arrive in time Photograph: Matt Cardy/Getty Images

Staying with the retail sector, the company behind the fast growing Superdry clothing brand sent its shares into a tailspin after it warned that higher cotton prices could hurt profit margins next year Photograph: Martin Godwin for the Guardian

The drama in the eurozone continued as Spain stepped up efforts to persuade the financial markets that it will not follow Ireland and Greece to the IMF's door after a warning of a possible credit downgrade placed more pressure on the troubled nation. Meanwhile, Moody's downgraded Ireland's rating by five notches Photograph: Albert Gea/Reuters

Protesters clashed with police and set fire to cars and a hotel in central Athens as tens of thousands marched against austerity measures aimed at pulling Greece out of a debt crisis Photograph: Yannis Behrakis/Reuters

Pressure on high-deficit European countries increased as Belgium was warned that its credit rating could be cut within six months. The country has been without a government since April when its ruling coalition collapsed. A general election was held two months later, but Belgium's political parties are still trying to form a government Photograph: Thierry Roge/Reuters

Ireland's multibillion-euro rescue package from the IMF and EU was ratified by the republic's parliament. Brian Cowen's coalition won by 81 votes to 75 after the prime minister was able to secure the support of three independent TDs (members of parliament): Kerry South's Jackie Healy-Rae, Tipperary North's Michael Lowry and Wicklow's Joe Behan. The deal will give the republic €85bn (£72.5bn) to recapitalise its debt ridden banks and restore the country's shattered public finances Photograph: Peter Morrison/AP

The Financial Services Authority caved in to growing anger and agreed to publish a report into what went wrong at Royal Bank of Scotland before its £45bn taxpayer bailout. After a fortnight of pressure, the FSA's chairman, Lord Adair Turner, embarked upon the dramatic U-turn while blaming the law and the bank itself for his inability to publish more details about the FSA's findings Photograph: Lewis Whyld/PA Archive/Press Association Images

Taxpayers may need to pour billions more into the bailed out banks before the government can start to sell its shares in them, the National Audit Office warns. In its second report on the cost of propping up the banking system, the NAO notes that the stipulation for banks to hold more capital may mean extra government cash could be required to prop up Royal Bank of Scotland and Lloyds Banking Group – on top of the £65bn spent on buying their shares Photograph: Johnny Green/PA

Back in Ireland, the finance minister Brian Lenihan has forced one of the country's debt-ridden banks not to pay a controversial €40m (£34m) bonus to its top staff. Allied Irish Banks announced that it would no longer pay out the money, news of which had caused widespread outrage across the Republic at the weekend. Opposition politicians had threatened to introduce emergency legislation to the Dáil to take more than 90% of the bonus had the bank gone ahead Photograph: Niall Carson/PA Wire/Press Association Images

The Obama administration has sued BP and several of its partners in the oil well disaster in the Gulf of Mexico, potentially exposing them to billions in legal costs. The action, filed in a New Orleans court, accuses them of violating safety regulations, and seeks unlimited damages to cover the costs of cleaning up the oil, the losses suffered by local businesses, and the damage done to the environment Photograph: Sean Gardner/Reuters