Rising Spanish bond yields ensured markets started the week on cautious ground, yields for their 10 year government debt rose above 6%, the level widely regarded as unsustainable. The Euro also declined to a two month low versus the dollar of $1.30 during the day on concerns of the regions periphery. The increasing unease over the Eurozone may consequently see the European Central bank recommence its bond purchases within its Securities Markets Programme which has been halted for five weeks.

Reuters

Greece expressed hope it was within days of finally securing a 130-billion-euro EU/IMF bailout to ease its debt crisis but markets reacted sceptically on Thursday as acrimony grew between Athens and euro zone partners led by Germany. Frustrations exploded as Greek President Karolos Papoulias, an 82-year-old veteran of the resistance to Nazi occupation of Greece during World War Two, lashed out at Germany's finance minister for appearing to suggest Greece might go bankrupt.

Following a year that has witnessed levels of volatility not seen since the financial crisis of 2007-2008, the FTSE 100 has closed at 5,572 to finish 5.6 per cent down from the start of the year. The index has seen a marked improvement from its low of 4,791 in August, having rallied through the last quarter of the year whilst Europe continues to debate a solution to its sovereign debt crisis.

Reuters

Optimism grew on Friday that Greece has finally done enough to secure a second bailout despite worsening relations with Germany, but doubts remained over lenders' demands for tighter supervision of how Athens will implement the deal. Greek officials say they have done everything asked of them for euro zone finance ministers to sign off on the 130 billion euro (108 billion pound) rescue package on Monday -- a month before Athens needs the money to make 14.5 billion euros of debt repayments due on March 20 or go bankrupt.

BBC
Greek MPs have approved a controversial package of austerity measures, demanded by the eurozone and IMF in return for a 130bn euro ($170bn; £110bn) bailout. The vote was carried by 199 in favour to 74 against. Coalition parties expelled more than 40 deputies for failing to back the bill. Tens of thousands protested in Athens, where there were widespread clashes and buildings were set on fire. Violent protests were reported in cities across the country.

Guardian
Dexia has become the first casualty of the 2011 banking crisis, with its Belgian arm being bought by the country's government and Belgium, France and Luxembourg providing a €90bn (£78bn) guarantee for its financing.