ATHENS, Greece - April 27, 2010 - Europe's government debt crisis worsened ominously Tuesday when Greek bonds were downgraded to junk status and Portugal's debt was lowered on fears the trouble could spread. Stocks slid on the news.

German reluctance to fund most of a 45 billion euros bailout of Greece by the European Union government and International Monetary Fund is sending shudders through markets that the money may not reach Greece by May 19, when 8.5 billion euros in bond payments come due.

Germany wants to see a commitment to deep, long-term cutbacks in Greek government services and benefits before it agrees to provide it 8.4 billion euros of bailout cash. But investors remain highly skeptical that Greek voters used to generous benefits and worker protections will accept a drop in living standards. They also worry that the proposed bailout will not cure Greece's long-term imbalance between its soaring debt and tepid prospects of economic growth.