Euro declines as Greek bailout talks stall

The euro slumped today as eurozone finance ministers postponed Greece's €12bn bailout package until the country implements tougher austerity measures to curb its soaring deficit.

The currency has slipped 0.32% against the pound to £0.88 on renewed default fears. Eurozone ministers stressed Greece is still on course to receive the next tranche of a €110bn bailout package, providing the government can agree on a €28bn austerity package. However, with Greek Prime Minister George Papandreou's Socialist party holding a marginal six-seat majority and the Conservative opposition strongly against the spending cuts, the Cabinet may not back the proposals. The decision to stall the bailout has reignited fears the country is tilting towards a sovereign debt default, w...