Greek Stocks Sink on Austerity Dispute Scorned by Bundesbank

Greek stocks are headed for the biggest weekly retreat in 2 1/2 years as coalition government lawmakers squabble over austerity that a Bundesbank official warned must be enforced to keep bailout funds flowing.

The country’s benchmark ASE Index has declined 12 percent this week, the most since May 2010, after the government unveiled debt forecasts falling further behind its targets. Shares extended declines after a Greek court ruled that planned pension cuts may be unconstitutional.