Europe shares fall on uncertainty in the UK and Greece


European markets suffered falls in various sectors in the early hours of Friday, but recovered slightly during the morning, amid fears about the crisis in Greece and the uncertainty about the future of the UK government. The FTSE 100 index of London Stock Exchange fell 1% in early trading - in part because of losses in Asian markets and falls on Wall Street, on Thursday.

The Cac 40 in Paris Stock Exchange and the Dax in Frankfurt, also declined.

The pound fell against the dollar and euro.

The financial problems on Greece

Analysts are worried that a weak government in the UK is unable to reduce the huge fiscal deficit of the country quickly.

There are also expectations that the parties spend much time negotiating with each other about forming a new government.

The deficit problem came to light because of the events in Greece, who were forced to resort to the euro zone countries to the IMF to get an aid package.

Although the UK has a smaller debt than Greece, its budget deficit is so large when the Greek.

European leaders are to meet later on Friday in Brussels to hammer out the final details of the loan of 110 billion euros ($ 140 billion) for Greece, while the finance ministers of the G7 (the seven most industrialized nations of the world) should discuss the crisis in Greece.

A major concern is that other European countries, particularly Spain and Portugal, end up being “contaminated” by the crisis.

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