Merkel: Eurozone will stay intact

The German Chancellor Angela Merkel has stressed that the eurozone will stay intact as European stock markets fell again today over concerns of a possible Greek default.

Ms Merkel said the top priority was to avoid an uncontrolled insolvency for Greece, as this would have serious consequences for several other countries.

She said the eurozone had to remain intact, warning that if Greece were to leave the group, others would swiftly follow.

Meanwhile in Greece, authorities are braced for a new round of strikes to protest against new civil service pay and job cuts, as well as an unexpected fresh property tax.