European finance ministers have been discussing a second rescue package for Greece. Meanwhile, there are fears that the Greek debt crisis could spread to Italy.
Policy tensions between Silvio Berlusconi, the Italian prime minister, and Giulio Tremonti, the finance minister, are a major factor in the market jitters.
A recent dramatic drop in Italian stocks and bonds has people worried about what the Italian media are calling "Athens Syndrome".
Al Jazeera's Paul Brennan reports from Brussels.