Britain’s economy will be hit hard by further turmoil in the eurozone, David Cameron has warned, despite widespread relief on world financial markets as a new leader was installed in Greece and Italian politicians backed harsh austerity measures. The prime minister insisted a “big question mark” remains over the future of the single currency, amid [...]

The Greek government stands on the point of collapse, with the country set for a general election over membership of the euro rather than the referendum planned for early December. Calls for a national unity government embracing the opposition also intensified as EU political leaders and financial markets demanded an end to the regional uncertainty [...]

Greece’s prime minister won the backing of his cabinet on Wednesday to hold a referendum on a 130 billion euro bailout package but will find the stunned euro zone leaders who struck the deal last week harder to convince. Some of his party lawmakers called for him to quit for jeopardizing Greek euro membership with [...]

Italian and Spanish government debt have both been downgraded by the Fitch credit rating agency. Fitch cut Italy’s rating by one notch, from AA- to A+, following fellow agency Moody’s downgrade earlier this week. Fitch cited the “intensification” of the eurozone debt crisis that “constitutes a significant financial and economic shock which has weakened Italy’s [...]

  24-hour general strike is underway in Greece in protest at the nation’s austerity measures. Flights and ferry services have been cancelled, schools, government offices and tourist sites closed, and hospitals are working with reduced staff. Thousands of people are expected to join protests in central Athens, organised by the main unions. The European Commission [...]

The chancellor, George Osborne, has said an effective resolution to the eurozone debt crisis would be the “single biggest boost” the UK economy could receive. Osborne, who is under increasing pressure to stimulate economic growth in the face of the Treasury’s repeatedly downgraded forecasts, said the government was prepared to help families and businesses struggling [...]

  The outline of a large and ambitious eurozone rescue plan is taking shape, reports from the International Monetary Fund (IMF) in Washington suggest. It is expected to involve a 50% write-down of Greece’s massive government debt, the BBC’s business editor Robert Peston says. The plan also envisages an increase in the size of the [...]

  The European Union has welcomed the Greek parliament’s vote in favour of a severe austerity package that has sparked strikes and violent protests. The EU said the move was a vital step back from what it called the “very grave scenario of default”. Greek MPs approved the deeply unpopular package of spending cuts and [...]