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Greek financial woe continues

Spanish debt is downgraded in deepening European crisis.

There was fresh turmoil in the Eurozone today as the Greek economic crisis deepened amidst comments made by German chancellor Angela Merkel, who said that it was a mistake for Greece to have been allowed to join the single currency.

"In 2000 we had a situation when we were confronted with the question of whether Greece should be able to join the eurozone," she said. "It turned out that the decision [in favour] may not have been scrutinised closely enough."

Germany will play a crucial role in a bail-out to help the ailing Greek economy, and there are fears that other European economies could also suffer. Spain has already seen its debt downgraded this week and Portugal has announced tougher austerity measures.

In a bid to stave off the worst effects of the Greek crisis, European leaders are discussing the terms of a bail out which will provide billions of Euros to Greece. However, Germany has called for tougher austerity measures to be adopted by Greeece ahead of approving the rescue package.