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| Fears grow over Greece shockwaves | Fears grow over Greece shockwaves |
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| The head of the International Monetary Fund has warned that the crisis in Greece could spread throughout Europe. | The head of the International Monetary Fund has warned that the crisis in Greece could spread throughout Europe. |
| Dominique Strauss-Kahn said that every day lost in resolving Greece's problems risks spreading the impact "far away". | Dominique Strauss-Kahn said that every day lost in resolving Greece's problems risks spreading the impact "far away". |
| World financial markets, recovering slightly on Wednesday, have been badly hit by fears of contagion from Greece. | World financial markets, recovering slightly on Wednesday, have been badly hit by fears of contagion from Greece. |
| Mr Strauss-Kahn was speaking at a news conference in Berlin after trying to persuade reluctant German politicians to back the terms of a rescue deal. | Mr Strauss-Kahn was speaking at a news conference in Berlin after trying to persuade reluctant German politicians to back the terms of a rescue deal. |
| But even as politicians were trying to resolve the crisis, Europe's debt problems were flaring elsewhere. | But even as politicians were trying to resolve the crisis, Europe's debt problems were flaring elsewhere. |
| We now enter an uncertain period. Will the financial markets test Portugal or Spain? The Spanish economy is five times the size of Greece. Will other bail-outs be needed and would the German taxpayer revolt against helping out others? Gavin Hewitt, BBC europe editor Read Gavin's blog in full | We now enter an uncertain period. Will the financial markets test Portugal or Spain? The Spanish economy is five times the size of Greece. Will other bail-outs be needed and would the German taxpayer revolt against helping out others? Gavin Hewitt, BBC europe editor Read Gavin's blog in full |
| The Standard & Poor's ratings agency delivered more bad news by downgrading Spain's debt to AA from AA+. | The Standard & Poor's ratings agency delivered more bad news by downgrading Spain's debt to AA from AA+. |
| The agency said Spain's growth prospects were weak after the collapse of a credit-fuelled housing and construction bubble. | The agency said Spain's growth prospects were weak after the collapse of a credit-fuelled housing and construction bubble. |
| Mr Strauss-Kahn's comments foreshadowed S&P's news. "What is at stake today is the economic situation of Greece. But it's more than that. | Mr Strauss-Kahn's comments foreshadowed S&P's news. "What is at stake today is the economic situation of Greece. But it's more than that. |
| "We also need to restore confidence... I'm confident that the problem will be fixed. But if we don't fix it in Greece, it may have a lot of consequences on the European Union," Mr Strauss-Kahn said. | "We also need to restore confidence... I'm confident that the problem will be fixed. But if we don't fix it in Greece, it may have a lot of consequences on the European Union," Mr Strauss-Kahn said. |
| Mr Strauss-Kahn, and European Central Bank president Jean-Claude Trichet, were in Berlin to urge German MPs to agree to a rescue deal under which Greece would get billions of euros in loans. | Mr Strauss-Kahn, and European Central Bank president Jean-Claude Trichet, were in Berlin to urge German MPs to agree to a rescue deal under which Greece would get billions of euros in loans. |
| Deeply unpopular | Deeply unpopular |
| For me personally, it's getting to be a real possibility that I may need to leave this country. We may see a new wave of people leaving, particularly young people, especially if our salaries decrease. Ioannis Matzavrakos, Athens Eurozone crisis: Readers' reaction Greece faces 'death spiral' | For me personally, it's getting to be a real possibility that I may need to leave this country. We may see a new wave of people leaving, particularly young people, especially if our salaries decrease. Ioannis Matzavrakos, Athens Eurozone crisis: Readers' reaction Greece faces 'death spiral' |
| German Chancellor Angela Merkel said that talks on the bail-out package must be sped up. | German Chancellor Angela Merkel said that talks on the bail-out package must be sped up. |
| "It is perfectly clear that the negotiations with the Greek government, the European Commission and the IMF need to be accelerated," she said after meeting Mr Strauss-Kahn. | "It is perfectly clear that the negotiations with the Greek government, the European Commission and the IMF need to be accelerated," she said after meeting Mr Strauss-Kahn. |
| "We hope they can be wrapped up in the coming days," she said. | "We hope they can be wrapped up in the coming days," she said. |
| But many German politicians are opposed to the bail-out of Greece, and Mrs Merkel has herself been accused of offering only qualified support. | But many German politicians are opposed to the bail-out of Greece, and Mrs Merkel has herself been accused of offering only qualified support. |
| Germany is facing elections, and with public opinion against giving billions of euros to Greece, Mrs Merkel must tread a fine line. | Germany is facing elections, and with public opinion against giving billions of euros to Greece, Mrs Merkel must tread a fine line. |
| As Europe's largest economy, Germany would provide the biggest single loan to Greece among the eurozone nations. | As Europe's largest economy, Germany would provide the biggest single loan to Greece among the eurozone nations. |
| The aid package being offered by the EU and IMF is currently 45bn euros ($59bn; £39bn). | The aid package being offered by the EU and IMF is currently 45bn euros ($59bn; £39bn). |
| But support for the bail-out in Germany will not be helped by claims that the total cost of the proposed package could be up to 120bn euros over three years. | But support for the bail-out in Germany will not be helped by claims that the total cost of the proposed package could be up to 120bn euros over three years. |
| After meeting Mr Strauss-Kahn on Wednesday, the leader of Germany's Green Party, Juergen Trittin, said the aid could total "between 100bn and 120bn euros". | After meeting Mr Strauss-Kahn on Wednesday, the leader of Germany's Green Party, Juergen Trittin, said the aid could total "between 100bn and 120bn euros". |
| Risk fears | Risk fears |
| Financial markets continued to be hit, following credit rating agency Standard and Poor's downgrade of Greek debt to "junk" on Tuesday. | Financial markets continued to be hit, following credit rating agency Standard and Poor's downgrade of Greek debt to "junk" on Tuesday. |
| The message that has been emerging from the markets this week is that a resolution to the Greek crisis needs to be found in the next few days. A failure to resolve the issue runs the risk of sparking contagion through Southern Europe Simon Derrick, Senior currency strategist, BNY Mellon Q&A: Greece's economic woes Greece crisis: What can be done? Could UK face same fate? class="" href="/2/hi/business/10089609.stm">Portugal seeks to reassure investors | |
| This means the rating agency views Greece as a much riskier place to invest, and increases the interest rate investors will charge the Greek government to borrow much-needed money on the open market. | This means the rating agency views Greece as a much riskier place to invest, and increases the interest rate investors will charge the Greek government to borrow much-needed money on the open market. |
| On Wednesday, that interest rate hit 11.3% for 10-year Greek bonds - another all-time high for a eurozone country. | On Wednesday, that interest rate hit 11.3% for 10-year Greek bonds - another all-time high for a eurozone country. |
| Interest rates on two-year bonds hit a new high of almost 19%, later falling back to 16%. | Interest rates on two-year bonds hit a new high of almost 19%, later falling back to 16%. |
| The euro hit a one-year low against the dollar of $1.3146. | The euro hit a one-year low against the dollar of $1.3146. |
| European stocks also fell sharply on Wednesday, although they recovered some of their losses in afternoon trading. | European stocks also fell sharply on Wednesday, although they recovered some of their losses in afternoon trading. |
| Overnight Japan's leading share index, the Nikkei 225, closed down more than 2.5%. | Overnight Japan's leading share index, the Nikkei 225, closed down more than 2.5%. |
| The turmoil forced Greece's stock market regulators to impose a ban on short-selling, amid concerns that bank shares are being undermined by speculators. | The turmoil forced Greece's stock market regulators to impose a ban on short-selling, amid concerns that bank shares are being undermined by speculators. |
| Contagion concerns | Contagion concerns |
| Concerns about the Spanish and Portuguese economies also intensified following the downgrade by S&P. | Concerns about the Spanish and Portuguese economies also intensified following the downgrade by S&P. |
| Spain's deputy prime minister, Maria Teresa de la Vega, appealed for market calm, telling reporters: "We have a very serious plan of... deficit reduction. We have adopted an austerity programme. | Spain's deputy prime minister, Maria Teresa de la Vega, appealed for market calm, telling reporters: "We have a very serious plan of... deficit reduction. We have adopted an austerity programme. |
| "We are adopting all the measures needed to meet our commitments. So I want to send a message of confidence to the population and of calm to the markets," she said. | "We are adopting all the measures needed to meet our commitments. So I want to send a message of confidence to the population and of calm to the markets," she said. |
| But even before the downgrade investors were turning negative on Spain. Yields on Spanish 10-year bonds reached their highest level - 4.27% - since the euro was launched. | But even before the downgrade investors were turning negative on Spain. Yields on Spanish 10-year bonds reached their highest level - 4.27% - since the euro was launched. |
| Meanwhile, investors are demanding an interest rate of close to 6% from Portugal. | Meanwhile, investors are demanding an interest rate of close to 6% from Portugal. |
| "If yields rise much further Portugal may, like Greece, be in a position where [borrowing] on the open market becomes just too expensive," warned Jane Foley, research director at currency trader Forex.com. | "If yields rise much further Portugal may, like Greece, be in a position where [borrowing] on the open market becomes just too expensive," warned Jane Foley, research director at currency trader Forex.com. |
| PROBABILITY OF COUNTRIES BEING UNABLE TO PAY BACK DEBT With any debtor, there is a chance they will not be able to repay their debts. These figures in the above graph express the likelihood as a percentage called the Cumulative Probability of Default (CPD)The figures express the probability of a country defaulting sometime over the next five years | PROBABILITY OF COUNTRIES BEING UNABLE TO PAY BACK DEBT With any debtor, there is a chance they will not be able to repay their debts. These figures in the above graph express the likelihood as a percentage called the Cumulative Probability of Default (CPD)The figures express the probability of a country defaulting sometime over the next five years |
| Portugal's Prime Minister Jose Socrates spoke of "a speculative attack on the euro and Portuguese debt". | Portugal's Prime Minister Jose Socrates spoke of "a speculative attack on the euro and Portuguese debt". |
| He said he would work with the opposition party to restore economic confidence in the country which also had its credit rating downgraded on Tuesday. | He said he would work with the opposition party to restore economic confidence in the country which also had its credit rating downgraded on Tuesday. |
| Time running out | Time running out |
| According to Simon Derrick, from Bank of New York Mellon, time is now running out for Greece to secure a deal. | According to Simon Derrick, from Bank of New York Mellon, time is now running out for Greece to secure a deal. |
| HAVE YOUR SAY The Greeks need to accept the pain that is the inevitable and foreseeable consequence MarkGE Send us your comments | HAVE YOUR SAY The Greeks need to accept the pain that is the inevitable and foreseeable consequence MarkGE Send us your comments |
| "The message that has been emerging from the markets this week is that a resolution to the Greek crisis needs to be found in the next few days," he said, warning that delays risk "sparking contagion through southern Europe". | "The message that has been emerging from the markets this week is that a resolution to the Greek crisis needs to be found in the next few days," he said, warning that delays risk "sparking contagion through southern Europe". |
| Are you in Greece or the wider EU? What is your reaction to the Greek debt crisis? You can send us your comments using the form below. | Are you in Greece or the wider EU? What is your reaction to the Greek debt crisis? You can send us your comments using the form below. |
| A selection of your comments may be published, displaying your name and location unless you state otherwise in the box below. | A selection of your comments may be published, displaying your name and location unless you state otherwise in the box below. |
| The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions | The BBC may edit your comments and not all emails will be published. Your comments may be published on any BBC media worldwide. Terms & Conditions |