The International Monetary Fund has admitted it made “notable failures” in the Greek bailout, underestimating how much the austerity measures it pushed would hit the country’s already faltering economy.

Greece moved to end its protracted political impasse yesterday, swearing in a new prime minister to lead a largely pro-bailout coalition tasked with saving the country's place in the eurozone and easing a European financial crisis with global repercussions.

Greek leftists rejected a last-ditch proposal by the head of state yesterday to put technocrats in charge of the country, as financial markets slid on speculation that political turmoil would force Athens out of the eurozone.