The Spanish economy shrank by 0.7% in the last three months of 2012, write El País and the Guardian. The data was released a day after it was revealed that retail figures in Spain have fallen for 30 successive months.
The Gulf state of Qatar is to invest €1 billion in Greece, Kathimerini writes. The money will be used to support small and medium-sized businesses.
The economic crisis, the EU membership process and the contradictory messages sent and former and current government are among the reasons for a record low level of support for Serbia joining the EU, writes Danas from Belgrade.
The European Commission has suspended funds worth €3.5bn for the improvement of roads in Poland, Gazeta Wyborcza writes. The paper says the suspension is because of allegations of corruption.
Michel Sapin, France's employment minister, has admitted that the country is “totally bankrupt”. The UK's Independent has more.
David Cameron, the British prime minister, will today travel to Algeria, a week after a hostage crisis at an oil plant in the country in which almost 40 people, including six Britons, were killed. The Daily Telegraph has more.
Le Figaro reports that two acquaintances of Mohamed Merah, who went on a shooting spree in Toulouse last year, killing seven people, have been arrested.
Le Monde reports on the beginning of deliberations in the French parliament on same-sex marriage.
Frankfurter Allgemeine Zeitung says that Germany appears to be relenting in its opposition to a eurozone bail-out for Cyprus. The paper says that Wolfgang Schäuble, Germanys finance minister, still has his reservations but that pressure from the European Commission, European Central Bank and other eurozone countries looks to have won out.
Süddeutsche Zeitung says that one of the reasons why the German government has softened its stance is that the rescue package the Cyprus needs looks to be smaller than the 17.5 billion originally thought. Cypruss finance minister Vasso Shiarly will travel to The Hague tomorrow to talk with the new president of the Eurogroup, Jeroen Dijsselbloem, with a decision expected in March.