World share markets and the value of the euro have fallen, despite a huge support package agreed by European leaders to restore confidence in their economies.
Greece, Spain and Portugal have announced austerity measures to cut their deficits and European authorities have announced a massive debt safety net, but investors remained concerned about whether the measures will work.
Amid fears the debt crisis may hit the European-wide economy, the FTSEurofirst 300 index dropped 3.39%, the UK's main index ended down 3.1% and Spanish shares lost 6.6%.
The euro fell to its lowest level against the US dollar for 18 months.
Concern over European public debt was a factor in a drop on Friday in the US share market, which also reacted to weak earnings from retailers and proposed limits on credit card fees.
The Dow Jones industrial average fell 1.5% while the Nasdaq slid almost 2%.
