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FTSE, DAX and CAC Seen Lower; Euro Zone Crisis Weighs

Opening calls were lower for all three key European indices Monday as the euro debt crisis continued to drag on market sentiment.

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The FTSE was called lower by 47 points, the DAX by 53 points and the CAC-40 by 48 points.

The lack of any decisive action from EU finance ministers who met in Poland last Friday on Greece and preventing contagion within the euro zone is concerning the markets.

The EU and IMF will hold a conference call with Athens to discuss how the country is planning to ensure it plugs the budget deficit and is on track with reforms in order to receive the next tranche of aid due next month.

The Greek Prime Minister canceled a planned trip to the US this week to deal with the deepening crisis at home.

Added to negative sentiment was Moody's pessimistic take on Italy's austerity package . The ratings agency said the plan was 'credit negative' for the country's regional and local governments as it added pressure on already stretched local budgets.

In the US President Barack Obama is set to unveil his plans to reduce the public deficit by delivering savings of $3 trillion over the next 10 years as part of the deal passed in early August to increase the Federal debt limit.

These include implementing a minimum tax rate for anyone earning more than $1 million a year, dubbed the 'Buffett Rule'.