Cyprus President Nico Anastasiades was Monday seeking the backing of MPs for an EU bailout deal that slaps a levy on bank savings under harsh terms that have jolted global markets and raised fears of a new eurozone debt crisis.

Europe's main stock markets tumbled on Monday by more than 1.0 percent in early deals as investors reacted to weekend news that Cyprus plans to tax bank depositors as part of a controversial bailout deal.

Cypriot President Nicos Anastasiades will on Monday attempt to persuade lawmakers to back an EU bailout deal that slaps a levy on bank savings, amid fears of a run on accounts if he fails.

President Nicos Anastasiades will on Monday attempt to persuade Cypriot lawmakers to back an EU bailout deal that slaps a levy on bank savings, amid fears of a run on accounts if he fails.

The unprecedented decision to tap all bank accounts in Cyprus as part of an EU bailout is a threat to the entire economy of the Mediterranean island, an important financial centre, analysts say.

President Nicos Anastasiades said Sunday that a controversial bank levy on private depositors in Cyprus banks as part of an EU bailout deal was the "least painful" option for the recession-hit island.

"How do I feel about the bailout? I will tell you from the heart. We are facing an economic war," said Mano, a souvenir shop owner in Cyprus which is facing crippling EU bailout terms.

The head of the International Monetary Fund's Middle East division was in Cairo on Sunday for talks with the Egyptian government to discuss steps towards a possible aid program.

Cyprus postponed an emergency debate in parliament on a controversial EU bailout on Sunday, threatening a prolonged closure of the island's banks as MPs baulk at an unprecedented tax on savings.

Hundreds of Spanish doctors, nurses and other healthcare workers, many wearing white lab coats, marched in Madrid on Sunday against budget cuts and plans to partly privatise medical services.

Britain will compensate any British government and military personnel whose bank accounts in Cyprus are subject to an EU bailout levy, Finance Minister George Osborne said on Sunday.

Cyprus postponed an emergency debate in parliament on a controversial EU bailout on Sunday, threatening a prolonged closure of the island's banks as MPs baulk at an unprecedented tax on savings.

The Cyprus parliament is to hold an extraordinary session Sunday as the debt-laden government seeks to push through legislation on a painful EU bailout, amid anger among bank savers who would be hard hit by the plans.

Thousands of protesters marched Saturday in Madrid and other cities in Spain against European Union leaders' handling of the financial crisis, condemning "an EU that belongs to the markets".

President Nicos Anastasiades tried Saturday to appease Cypriots angry at having to pay from their bank deposits for a chunk of an EU bailout deal which his government signed to rescue the island's banks.

Eurozone finance ministers approved early Saturday plans to give bailed-out Ireland and Portugal more time to pay back some of their massive rescue loans.

Cyprus President Nicos Anastasiades said he will address the nation on Sunday to defend a controversial EU bailout deal which he admitted was "painful" but said would rescue the banking sector from collapse.

The head of Germany's central bank has told Italy to stick to its pledges of budget cuts and economic reforms, warning there was no guarantee of being bailed out.

Eurozone finance ministers and the International Monetary Fund on Saturday agreed on a 10 billion-euro ($13 billion) bailout deal for Cyprus, the fifth eurozone member to be saved from bankruptcy.

Millions of people remain dependent on external food aid in North Korea where nearly 28 percent of children under five are stunted from malnutrition, a UN official has said.