European stocks are likely to remain under pressure, and the euro is seen breaking technical support levels, as Greece's inconclusive election results look increasingly likely to push it out of the euro zone, according to market experts and analysts.
On Wednesday, European Union leaders will meet in Brussels to discuss how to sort out the debt crisis for the first time since the election of France's new President Francois Hollande, who had pledged in his campaign to renegotiate last year's fiscal compact requiring EU governments to balance their budgets.
Political leaders are frantically looking for a solution as Greece struggles before another election on June 17 that could precipitate its exit from the single currency area.
But some economists warn that even if Greece were to say and be bailed out once more, the crisis would not be over.
Analysts at Capital Economics pointed out in a research note that even if Greece's sovereign crisis can be contained, a sharp fall in bank deposits last week could become "a potentially more powerful and arguably less controllable trigger for a euro-exit."
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