Greece turmoil hits European shares again

Shares in Europe declined on Monday as the negotiations between Greece and its creditors become increasingly tense, with neither side looking like they are prepared to give ground on their demands.

The stock market in Athens was led lower by the banks of Greece - where the nation’s banking index declined close to ten per cent.

Sunday saw the newly elected Greek prime minister, Alexis Tsipras, rule out an extension of the nation’s bailout. Instead he would reverse some of the reforms that have been imposed by its lenders. This news has investors worried that Greece has just jeopardised its place in the European Union.

Further doubt on Greece’s longevity in the eurozone was cast by Alan Greenspan, the former head of the US central bank.

On the weekend, Mr Greenspan said that a renegotiation of the nation’s bailout plan will be unlikely without Greece leaving the eurozone. “It’s just a matter of time,” he added. However, Mr Greenspan has long been a critic of the single currency of Europe and has been badly wrong before.

While an agreement between Greece and its European partners will now be more difficult due to Sunday’s speech from Mr Tsipras, there’s still a good chance an amicable solution can be found.