European stocks declined on Monday, led by banking shares after financial ministers from the euro area were unable to agree on terms for a Greek bailout over the weekend.
European officials instead warned Athens about not getting its fiscal house in order.
"I cannot imagine for one second that we would commit to finance Greece without knowing that the Greek Parliament has given a vote of confidence to the Greek government," said Jean-Claude Juncker, who leads the euro area group of finance ministers.
It is feared that borrowing costs for other profligate Euro area members will rise to unsustainable levels if Greece defaults.
Moody's Investors Service Friday placed Italy's Aa2 local and foreign currency government bond ratings on review for possible downgrade, citing economic growth challenges.
The Euro Stoxx 50 index of eurozone bluechip stocks is declining 1.48 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is dropping 0.65 percent.
The German DAX slid 0.19 percent and the French CAC lost 0.63 percent. The UK's FTSE 100 slipped 0.38 percent and Switzerland's SMI fell 0.51 percent. All of the major average moved well off their early lows.
Several European markets, including Paris, opened late owing to some technical problem.
Decliners among big banks included Credit Agricole, Banco Santander, and Societe General. In Switzerland, UBS and Credit Suisse lost ground.
The 49th edition of the Paris Air Show opened in the Le Bourget commune of the French capital. European Aeronautic Defence and Space Co. shares lost 0.85 percent even after Cheuvreux kept it on a "Selected List."
Rival Boeing said it received $1.7 billion worth order for six long-range, twin-engine jet airliner 777-300 ERs from Qatar Airways Ltd.
Aggreko lost 2 percent after a trading update. It expects strong underlying revenue performance for the first half, citing improvement in both its divisions. For the full year, the rate of growth in underlying profits is projected to be a little higher than expected earlier.
Inmarsat added more than 4.5 percent on reports that its U.S. partner is nearing a deal with Sprint Nextel to roll out 4G.
Gamesa Corp Tecnologica SA dropped 6.3 percent after ING Groep NV recommended selling the shares.
Drillisch was raised to "buy" with a price target of 8.90 euro at West LB. The stock rose 5.5 percent.
Commerzbank lifted its price target on Brenntag to 90 euros. Shares of Brenntag fell 2.3 percent.
Charter International Plc company fell 25 percent in London after forecasting 2011 profits below previous estimates.
Europe has increasingly suffered from slowing economic trends against the background of Eurozone debt crises, austerity measures, and uncertainty with the result that conditions in welding markets have deteriorated, according to Charter.
Banca Popolare di Milano Scrl fell 7.4 percent after Banca Popolare dell'Emilia Romagna Scrl said it's not planning a combination with the Milan lender.
In economic news, German producer price inflation eased in May after spiking up in the previous month, data released by the Federal Statistical Office showed.
The producer price index for German industrial products rose 6.1 percent year-on-year, following a 6.4 percent gain in the previous month. This was the slowest increase in prices in four months.
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May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.