German Chancellor Angela Merkel says Europe is doing everything in its power to avoid a Greek default. Today, talks of an imminent default dominated headlines. Merkel's comments, during a radio interview, aimed to quell those fears.

Merkel urged politicians in her coalition to weigh their words carefully to avoid creating turmoil on financial markets. She added that everything must be done to keep the eurozone intact because they could see a domino effect very quickly.

Analysts say European markets have already priced in the near certainty of a Greek debt default.