Frankfurt Dax: 3667.43 (-27.86)

German shares shed their early gains as worries about monetary union escalated and the dollar slid against the deutschmark, though volume was thin and this increased the market's volatility. The DAX index of leading German shares ended down 27.86 points or 0.7 per cent at 3667.43.

Paris CAC-40: 2686.20 (-33.05)

The Paris Bourse, which was trading lower before the Ecofin comments by the finance minister Mr Strauss Kahn, slid to 2.2 per cent, but then rebounded off its lows and steadied at around 2671.

The franc fell by more than half a centime to DM3.3825, but held above last week's low of DM3.3860 set after the combined left swept to power in the June 1st election upset.

Milan MIBTEL: 12165 (-112)

Italian shares ended lower following the trend on bond and currency markets which were concerned over possible delays in economic and monetary union, but bluechip stocks showed a more resilient performance.