A draft prospectus providing details of securities which may be created by the EFSF has acknowledged the breakup of the euro in its list of risk factors.
Asian shares fell into bear market territory for the year overnight, while commodities and the euro suffered heavy falls on renewed eurozone fears.
Heavy selling of the euro saw it tumble through the $1.30 mark versus the US dollar late this morning, to its lowest level since early January.
Gilt yields hit a new record low by mid-afternoon as investors continued to buy up UK debt amid concerns the European Union has not done enough to avert a financial meltdown.
Amid all the negative newsflow on Europe this year, the euro has remained relatively resilient.
Britain will sign up for fiscal discipline in the eurozone, but not at the expense of our industries or our independence, Prime Minister David Cameron has declared.
European stock markets opened higher this morning ahead of a crucial eurozone meeting on Friday which could decide the future of the single currency.