Greek default fears hit global markets

LONDON — Escalating political turmoil in near-bankrupt Greece intensified concerns Wednesday that the Mediterranean nation may be spiraling toward a calamitous default with investors, potentially igniting a new phase in Europe’s debt crisis.

Global markets shuddered as embattled Greek Prime Minister George Papandreou launched a risky gambit to push his Parliament to pass another round of austerity measures. Failure to pass the cuts could lead the European Union and International Monetary Fund to withhold bailout money, leaving Greece short of cash to pay its creditors as early as next month — an event that some economists warn could destabilize the global financial system.

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