greece

Spain is facing the same danger of default as Greece, Ireland and Portugal, said M&G's Mike Riddell, following the lacklustre Spanish government bond auction yesterday.

Fears of a Greek default continued to impact markets despite a deal between the European Union and the IMF being struck yesterday.

The EU and IMF have reached a deal on Greece which should prevent a default, but will involve a new round of austerity measures for the beleaguered nation.

Three major French banks could have their credit ratings cut by Moody's because of their exposure to Greek debt.

Greece's credit rating has been cut to the lowest level of any nation after Standard & Poor's warned that the danger of a default by the country has risen significantly.

Tension between the European Central Bank and the German government has intensified as Jean-Claude Trichet hit back at the German finance minister's claims Greek government bondholders should contribute to a new aid programme.

Germany is urging Greece to extend the maturity of its debt by seven years, clashing with the European Central Bank's view that forcing investors to take a loss could damage the eurozone.

As the euro crisis staggers on, Greek EU commissioner Maria Damanaki has raised the prospect of her country being forced out of the eurozone if it does not quickly assert control over its wayward public finances.

Eurozone finance ministers have provisionally agreed a new bailout package for Greece as the embattled nation struggles with its mounting debt.

Moody's has cut its credit rating of Greece by three notches, placing it deeper into the junk category, on concerns it will not be able to stabilise its debt pile.