Austria has suspended financial aid to Greece and claims the debt-stricken country failed to comply with the tax revenue targets agreed in the rescue deal.
This, coupled with rising fears over Ireland's refusal to accept a rescue package from the EU and IMF has spooked European investors, who fear the European debt crisis is worsening.
EU economics commissioner Olli Rehn says: "I want to call on every responsible European to resist the centrifugal tendencies and existential alarmism," according to the Telegraph.
MPC minutes to show deep divisions over economy
Mervyn King, the Governor of the Bank of England (BoE) has warned George Osborne inflation will rise even higher, as the Monetary Policy Committee (MPC) is expected to be divided over a second round of quantitative easing again today.
King was forced to write another letter to the chancellor today as is customary when inflation remains above the 2% target.
As inflation rose 0.1% higher than expected over the past month, hitting 3.2%, King warned Osborne: "over the next few months the inflation rate might rise further".
HMRC drops £30m tax debt
HMRC will write off 1.9 million cases of underpaid tax amounting to £30m in the latest stage of the tax code debacle.
It is thought up to £500m could be owed to HMRC, but anyone owing less than £50 will have their debt cancelled.
In February millions of people were sent the wrong tax codes as a result of a new HMRC computer system, leading to cases of underpaid or overpaid tax, the Daily Mail reports.
Putting the tech into protection
Square Mile’s series of informal interviews
Fallout from Haywood suspension
Launching later in 2019
£80bn funds under calculation