Fears are growing that Europe's sovereign debt crisis is spreading and could swallow up larger countries like Spain and Italy.
Eurozone finance ministers met on Monday to try and find a way forward on the second bailout for Greece.
But their statement is unlikely to reassure the markets that the crisis is under control.
Sources at the meeting say the issue of a structured default for Greece was discussed.
The Spanish economy minister, Elena Salgado, said: "We have insisted that the private sector must participate on a voluntary basis and this must be focused on guaranteeing the sustainability of Greece's debt."
But analysts say financial calm will not be established until the EU can show political unity and clarity over the plan to deal with an economic crisis which is threatening to kill off the single currency in its present form.
The contagion is spreading to larger eurozone countries and bringing with it the risk of a series of catastrophic nightmare scenarios.
In Italy's case, it could be a perfect storm for the euro and the EU.
As the zone's third-largest economy it is too big to fail but also too big to save with a bailout - the EU's present and ineffective solution to the solvent debt crisis.
Global stock markets have taken a battering on fears over Italy because the money men know Europe's banks are heavily exposed to Italian debt.
The country has a high level of sovereign debt and its cost of borrowing to service that debt is rising whilst growth is stagnant, deepening fears over its ability to pay its way.
The state of Italian politics is bringing another dimension to the economic crisis engulfing the country.
Infighting between Prime Minister Silvio Berlusconi and his finance minister Giulio Tremonoti is a worrying sign for the markets.
If the people at the top are squabbling they are not going to be focusing their attentions on a constructive solution to the escalating fiscal mess.
Political paralysis is not ideal when it comes to driving through the necessary austerity measures.
At the heart of the Eurozone's problems - and the US' - is something else, however.
The financial meltdown represents something much more fundamental and that is the transference of power from West to East.
Source: Sky News