A look at economic developments around the world (AP)

A look at economic developments and activity in major stock markets around the world Monday:

___

LONDON - Stubborn Europe's debt crisis has shaken financial markets in the middle of the concerns that the Greece is not possible to avoid the default without other rescue plan and that the Government of the Spain loses support in its drive to reduce the debt.

___

MADRID - Spanish financial markets collapsed Monday after angry voters of austerity measures was decision Socialist Party a painful loss in local elections.

___

LONDON - Tensions increased over the debt crisis in Europe combined with low economic surveys to send sliding stock markets. The euro fell below $1.40 for the first time in two months.

Rope hoop wrapped in Greece of mounting speculation investors will have to restructure its debts, defeat for the Socialist enabling Spain in the election of a major and regional agency credit ratings a warning on the public finances of the Italy.

The index FTSE 100 leading British shares closed 1.9%, Germany DAX fell 2 percent and the CAC 40 in France ended 2.1% less.

___

Athens, Greece - Cabinet in crisis-hit Greece meet to discuss a massive reduction of costs and a programme of privatization until 2015, term of two years beyond the Government.

The meeting began as Greek borrowing rates affected 17% for the 10-year-bonds, hitting a new record margin - or spread - on the German reference rate.

The Finance Minister George Papaconstantinou, said that the Government had decided to "immediately" to the sale of the interests of the State in several major companies in efforts to address the financial crisis of the Greece.

___

LONDON - A dense cloud of ash from an Icelandic volcano has since jumped to Scotland, causing an airline cancel almost all of its flights and officials to prevent any other possible flight disruptions.

The disruption of the Grimsvotn volcano should not be as great that that caused by an another volcano last year that led to the grounding of almost all air traffic in Europe for several days in the Middle fears that ash could cause engine failure. Systems and procedures have been improved, and the ash currently should not move forward in continental Europe.

___

BEIJING - An explosion in one of the two plants that make iPad new Apple 2 highlights the risks of a global manufacturing strategy which has cut costs, but production is concentrated in a few places.

___

The Hague, Netherlands - Netherlands threw its support behind French Finance Minister Christine Lagarde to lead the Monetary Fund International, while retaining the French their silence if it wants to even that work.

___

PARIS - French President Nicolas Sarkozy placed himself as the defender of the rights of workers and financial regulations, claiming the ground normally occupied by his Socialist adversaries now in disarray on the loss of Dominique Strauss-Kahn, as their challenger best hope in the presidential elections next year.

___

LONDON - Britain's major banks are fit to meet the promises of the Government to increase lending to small and medium-sized enterprises.

___

LONDON - Agency Fitch Ratings said it has cut the prospects of the obligations of the State of Belgium, citing the risk that political disagreements on the creation of a new Government could hurt the country drive to reduce the debt.

Fitch confirmed rating AA + in the country, but the negative Outlook means there is a chance that it might be downgraded in the coming months.