Greek PM says third bailout may be needed

The Greek prime minister Lucas Papademos has conceded that the crisis-plagued country could require a third bailout only weeks after it secured a second package of rescue funds following months of hand-wringing in Brussels.

Greek Workers Strike Against New Round of Austerity

ATHENS — Greek workers walked off the job on Tuesday to protest a new barrage of austerity measures being demanded by the country’s foreign creditors in exchange for a second bailout of $170 billion without which Greece faces a potentially catastrophic default within weeks.

IMF to Wait for Political Support for Greek Funds

The International Monetary Fund won’t release the next tranche of funding for Greece under a 110-billion euro ($148 billion) package with the European Union until there is broad political support for the measures attached to the loan, a spokesman said.

Markets rise but contagion fears spread to Spain

Political progress in Italy and Greece pushed stock markets higher but economists warned of stormy weeks ahead as attention turned to Spain amid fears it could be the next economy to come under the spotlight.