Shares decline on Greece concerns

Greece is struggling with the terms of its bail-out package

European stock markets have fallen on continuing concerns that Greece may require a new financial bail-out deal.

The falls follow comments on Friday by Jean Claude-Juncker, chairman of the eurozone finance ministers, that Greece may need a “further adjustment plan”.

Germany’s Dax index and France’s Cac were both down 1%, with banking shares leading the declines. The UK’s FTSE index was 0.6% lower.

Greece received a 110bn euro ($136bn; £94bn) bail-out last year.

Germany’s Commerzbank was 2.1% lower, while France’s BNP Paribas declined 2.2% and Societe Generale by 2%.

There are also concerns about whether the other two nations that have received European Union (EU) and International Monetary Fund (IMF) bail-outs – the Republic of Ireland and Portugal – are also struggling with the cost of paying back their rescue deals.

However, some analysts say the EU and IMF could simply reduce the interest rates that the three countries have to pay.

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