European stock markets rocked by panic selling as debt crisis reignites
Investors demanding high premiums for holding Italian and Spanish bonds as fears of double-dip recession grow
Heather Stewart, Larry Elliott and Giles Tremlett in Madrid
The Guardian, Tuesday 10 April 2012
Europe's sovereign debt crisis exploded back into life on Tuesday, with markets across the continent rocked by a wave of panic selling amid renewed fears about the impact of savage austerity measures in Spain and Italy.
The mood of uneasy calm seen across Europe since the Greek bailout in February was shattered as financial markets took fright at evidence of a double-dip recession and growing popular opposition to welfare cuts and tax increases.