Britain's small and medium-sized enterprises have much to worry about as the European sovereign debt crisis spirals out of control once more. When the banks shut up shop again in a full-blown repeat of the first credit crunch – as they surely will if Greece walks – you can bet it will be SMEs that are starved of debt first, whatever financiers say in public.

Virtue has been duly rewarded. That, at least, would seem to be the immediate conclusion to be drawn from the divergent paths taken by the German economy and that of much of the rest of the eurozone, notably Italy. Germany, which has clamped down on wages, brought in sweeping labour-market reforms, cut its budget deficit, and boosted exports, has grown by 0.5 per cent in the first quarter of this year. Italy, which has done none of those things, shrank by 0.8 per cent. France, which under Nicolas Sarkozy had followed a more or less middle course, had a middling experience: a flat quarter.

Germany's economy grew by a stronger-than-expected 0.5% in the first three months of the year despite Europe's debt crisis.

Three men appeared in court today charged following a counter-terrorism investigation into a network suspected of smuggling a banned stimulant drug from Britain to America.

The UK's recovery hopes were dealt a blow today as problems in the crisis-hit eurozone - the UK's biggest trade partner - hit the manufacturing sector.

For all the turmoil of recent years, the impact of the financial crisis is only just being felt

At least 35 people were reported dead by the Local Co-ordination Committees in shelling in the Mashaa al-Arbaeen suburb of Hama yesterday, a day after the UN team visited the city and activists said tanks had been hidden from view.

David Cameron's hopes of promoting an export-led recovery were left deflated yesterday by official figures showing that the UK's trade deficit increased by more than expected in February.

Nine miners have been rescued after spending five days trapped in a collapsed gold and copper mine in Peru.

More evidence of the push by British exporters into new markets to avoid the woes of troubled European nations should emerge this week in official figures

Global demand for traditional British tea, biscuits and sausages has seen food and non-alcoholic drink exports rise last year to top £12bn for the first time.

A new cattle drive in Western Australia offers tourists the chance to saddle up and experience the exhilarating beauty of this vast wilderness.

Almost 2,000 tonnes of contaminated waste will be shipped back to Britain after being seized in Indonesia, investigators said today.

George Osborne received a pre-Budget boost yesterday as trade figures came out much rosier than expected. Thanks to a good showing from car makers such as Rolls-Royce and Jaguar selling more to the US, Russia and China, Britain had record exports to regions outside the EU. That will be seen as good news for the Chancellor's hopes of a "march of the makers" to rebalance the economy away from financial services. As domestic consumer demand falls, Britain is ever more dependent on exports for growth, particularly outside the crisis-bound eurozone.