Euro, Elections | featured news

Italy's new parliament met on Friday for the first time since last month's inconclusive election with no sign of a deal to end the stalemate and yield a government able to address the deep problems in the euro zone's third-largest economy.

Greece's conservative New Democracy party has regained an opinion poll lead that would allow the formation of a pro-bailout government committed to keeping the country in the euro zone, a batch of new surveys showed on Saturday.

Greek voters are returning to the establishment parties that negotiated its bailout, a poll showed on Thursday, offering potential salvation for European leaders who say a snap Greek election next month will decide whether it must quit the euro.

The head of Greece’s top administrative court, Panayiotis Pikrammenos, was named the nation's caretaker prime minister Wednesday as voters prepare for another election on June 17 that is widely viewed as a referendum on whether Greece stays in or leaves the Eurozone.

Greece's president spoke of "fear that could develop into panic" at the country's banks in the weeks before fresh elections that could precipitate Athens exit from the euro zone.

Stocks fell and the spread between Spanish and German bonds hit a record wide, as the prospect of fresh elections heightened concerns about the likelihood of Greece exiting the euro zone.

Talks to broker a coalition government lead to insults and accusations. Europe is watching nervously, fearing the political chaos could threaten the euro.