Markets off after no final deal on Greek aid

June 20, 2011 - 3:58 AM
APTOPIX Luxembourg Europe Financial Crisis

Greek Finance Minister Evangelos Venizelos waits for the start of a round table meeting of eurozone finance ministers in Luxembourg on Sunday, June 19, 2011. On only his third day in office, Greece's new Finance Minister Evangelos Venizelos faces his first big test: He must convince his eurozone counterparts to release a loan installment his country needs to avoid defaulting on its massive debts next month, and to commit to billions in new loans to keep Greece afloat in the coming years. (AP Photo/Virginia Mayo)

LUXEMBOURG (AP) — European stocks and the euro slipped Monday after eurozone finance ministers came up short of a final deal to get Greece its next installment of bailout money that is needed to prevent a default that could cause financial chaos.

Officials say they do expect Greece to get the next euro12 billion installment in July.

But first they are pushing the Greek parliament hard to pass unpopular measures to reduce the deficit and seek more money from selling and developing state property.

Stocks in Germany, the eurozone's biggest market, fell 1.2 percent while the euro was off 0.5 percent at $1.4210.

Eurozone finance ministers are meeting a second day Monday about the Greek debt crisis. Talks overnight did not produce a final agreement on the new loan money, or on a broader, second bailout expected in cooperation with the International Monetary Fund.

Officials agree Greece is going to need more money to avoid a messy default on government bonds that would disrupt Europe's banking system and its entire economy. But they are waiting for the Greek government — unsettled by protests, a Cabinet reshuffle and a vote of confidence slated for Tuesday — to take the additional measures to cut the deficit.

The EU's economic and monetary affairs commissioner, Olli Rehn, said he was "certain that Greece will be able to take the decisions needed because the alternative is so much worse."