Speaking at a summit in Brussels, the heads of Germany and several EU institutions all urged the debt-stricken country to stick to the deeply unpopular tax hikes, labor reforms and welfare cuts that have divided Greece and pushed it to the brink of exiting the currency union.
As European leaders struggled to hold the euro zone together at a nighttime summit in Brussels, a widening gap emerged between Germany and France, which are now under new management.
The election of Hollande earlier this month has fractured the traditional Franco-German alliance, with the French premier's desire to tackle the sovereign debt crisis through growth clashing with Chancellor Angela Merkel's predominantly austerity-led agenda.
The European Central Bank (ECB) is propping up Greece with a secret infusion of ?100 billion ($126 billion) in emergency liquidity assistance (ELA) funds, the Financial Times reported Tuesday.
Asian markets fell this week as they succumbed to the pressures of the euro zone debt crisis and the economic data about the U.S. missing estimates. The Chinese Shanghai Index dropped 2.1 percent and the Japanese Nikkei fell 3.8 percent. Hong Kong's Hang Seng Index plunged 5.1 percent and India's BSE Sensex slumped 0.86 percent.
While global leaders obsess over the likelihood of debt-stricken Greece departing the euro zone, an emerald isle 1,800 miles away from Athens may be on the brink of needing another financial bailout.
The European Central Bank in Frankfurt said Wednesday it is temporarily cutting off liquidity to Greek banks that are inadequately capitalized, pushing the onus of emergency assistance on the Greek central bank.
The Spanish government sold ?2.4 billion of debt on Thursday morning, with bonds due in 2015 carrying an average yield of 4.375 percent - a huge rise from an average yield of 2.89 percent in April.
Asian markets rose Thursday as the economic growth reported by Japan and possible additional monetary stimulus from Federal Reserve to spur growth of the US economy offset the increasing concern of Greece leaving the euro zone.
The euro wallowed near a four-month trough versus the dollar Thursday after some banks in Athens faced emergency funding needs, compounding fears that a potential Greek exit from the euro could put more pressure on other struggling euro zone nations.
Asian shares steadied Thursday from the previous day's selloff, but investors found no reason to bet on risk amid deepening turmoil in Greece and fears of contagion to other stressed euro zone economies.
Tsipras has said he wants Greece to remain in the euro zone, but has demanded that bailout agreements be renegotiated by providing more favorable terms.
The European Central Bank has stopped monetary policy operations with some Greek banks as they have not been successfully recapitalized, euro zone central bank sources said on Wednesday.
Greece put a senior judge in charge of an emergency government on Wednesday to lead it to new elections on June 17 and bankers sought to calm public fears after the president said political chaos risked causing panic and a run on deposits.
Asian markets fell Wednesday as political parties in Greece failed to form a coalition government increasing concerns of the country exiting the euro zone.
Greek leftists rejected a last-ditch proposal by the head of state on Monday to put technocrats in charge of the country, as financial markets slid on speculation that political turmoil would force Athens out of the euro zone.
Bombay Stock Exchange's Sensex lost more than 100 points Monday afternoon trade as the slump in European markets and a worse-than-expected inflation for April hit the markets hard.
With the call for a fresh round of snap elections to the Hellenic Parliament appearing closer by the hour, European central bankers are getting ready for the possibility Greece may depart the euro zone.
Asian markets fell at week's end as Greece's inability to form a government, uninspiring Chinese industrial output growth and JPMorgan's trading losses affected investor sentiment.
Euro-zone paymaster Germany may be willing to consider additional measures to promote growth in Greece, but the Hellenic Republic must still carry out its previously agreed reforms, German Finance Minister Wolfgang Schaeuble said in an interview with Welt am Sonntag this weekend.
In Athens, leftist Alexis Tsipras became the second political leader to try and form a government on Wednesday, after first placed New Democracy party leader Antonis Samaras abandoned attempts on Monday.
A Greek sovereign default has always been a talismanic scare for the euro stakeholders. It would put the common currency under the greatest pressure since its creation, and shake the foundations of the currency bloc.
