Guardian report.

Global stock markets have fallen sharply on fears that the proposed €110bn (£95bn) rescue package hammered out over the weekend for Greece will not be enough to solve its financial crisis, as well as concern that the problems could spread to other European countries.

Spanish prime minister José Luis Rodríguez Zapatero was forced to deny market rumours his country would ask for €280bn from the European Union, something he described as "complete madness".

Reuters report.

Greece reacted with a mix of resignation and outrage on Monday to a painful new austerity package from the government that newspaper editorials said would force a long-delayed "violent modernization" on the country.

Julian Knight in the Independent.

Well, let's get one thing straight: Greece's debt mountain may be huge but our total debts are actually worse. Why? Unlike us, the Greek population isn't loaded down with credit card debts, personal loans, mortgages, remortgages, consolidation loans and individual voluntary arrangements to the tune of £1.4 trillion. If you add personal debt to the national government debt then our debt-to-GDP ratio soars from about 60-70 per cent to about 200 per cent.

Times report.

Prime Minister George Papandreou is due to hold a cabinet meeting later this morning to announce the deal.

The EU has insisted on tough austerity measures in return for a bailout worth an estimated € 45 billion (£39 billion) this year alone, and up to €120 billion (£104 billion) over three years.

Guardian report.

Greek riot police have used tear gas to disperse angry protesters in Athens, during a march against government cuts to tackle the country's crippling debt. Clashes erupted at the finance ministry and a state TV truck was petrol bombed. A tense stand-off continues, with protesters hurling bottles and rocks.

Guardian report.

Leading the field is the tabloid Bild, hammering home the alarming message that: "The Greeks want even more of our billions!" The headline is crowned by the ominous figure: "25,000,000,000 euro!", the proportion of the bailout package Germany can expect to pay.

"Will Greece become a bottomless pit for German taxpayers?" the paper asks.

Guardian report.

Fears of a fresh banking crisis stalked the markets today as the risk of Greece defaulting on its debt repayments raised concerns about the exposure of major banks to indebted countries in Europe.

BBC report.

Greece's debt has been downgraded to junk status by ratings agency Standard & Poor's amid mounting fears its debt crisis is getting out of control.

Guardian report.

Rescuing the Greek economy could require a €150bn (£130bn) bailout over the next three years, according to Goldman Sachs, but this would be politically impossible for European leaders to swallow.

In a note to clients this morning, Goldman's chief European economist, Erik Nielsen, said that the €45bn bailout currently on the table is not large enough to cover Greece's borrowing needs.

BBC report.

It comes a day after data showed a worse-than-expected budget deficit of 13.6% of gross domestic product.

Credit rating agency Moody's also cut its rating on Greek debt on Thursday.

Times report.

The cost of Greek borrowing reached a record level this morning suggesting Athens will soon have to call on an extensive bailout to ensure that it does not default.

The yield on Greek ten-year government bonds rose to 7.807 per cent, more than double the level for German debt and far beyond the level that Greece can afford to pay if it is to get through its debt crisis.

Telegraph report.

German finance minister Wolfgang Schauble has pleaded with his country's citizens to back a joint EU-IMF bail out for Greece worth up to €45bn (£40bn), warning that failure to act risks a financial meltdown.

"We cannot allow the bankruptcy of a euro member state like Greece to turn into a second Lehman Brothers," he told Der Spiegel. "Greece's debts are all in euros, but it isn't clear who holds how much of those debts. The consequences of a national bankruptcy would be incalculable. Greece is just as systemically important as a major bank," he said.

Bloomberg report.

Germany might consider exiting Europe's current monetary union to create a smaller bloc as the Greek crisis threatens to turn the euro area into a region of "fiscal profligacy," Morgan Stanley said.

CNBC report.

George Soros has warned that the joint European Union/IMF rescue package for Greece may not be enough.

The legendary investor who forced the pound out of the Exchange Rate Mechanism in 1992 believes that the rescue package is only "a little step" that may not stop Athens falling into a "debt spiral".

Telegraph report.

Euphoria over a joint EU-IMF rescue deal for Greece worth €45bn (£39.8bn) has given way to caution after angry reactions in Germany and continued concerns among bond investors that any bail-out merely delays the day of reckoning.

[...]

Professor Ekkehard Wenger from Würzburg University said the aid for Greece is "another step on the slippery slope downwards. All rational economic rules are being thrown out of the window. This is a bottomless pit." "In the short-term this may calm things but within 10 years the eurozone is not going to exist any longer in its current form," he told Handelsblatt.

Guardian report.

Finance ministers from the 16 countries in the eurozone have thrashed out the details of a potential last-minute bailout for Greece.

Officials from Spain, which currently holds the EU presidency, are understood to have brokered an agreement on a rate at which the eurozone countries would lend money to the debt-ridden country and the mechanism for making the cash available.

The intention is to set the interest rate below the current market rate and allow Greece to raise crucial funding without having to resort to the financial markets, which have become increasingly jittery about its sovereign debt in recent days. But ministers are keeping exact details of the fund secret until Greece asks for the money.