Fear of lesser growth due to tough austerity measures in euro zone peripheral economies triggered the fall of European shares on Friday and euro continues to drop against dollar by further slipping below $1.25.

After rising by 0.1 percent, at 1120 GMT, the FTS Euro first 300 .FTEU3 indexes of top European shares fell by 2 percent at 1,029.12 points.

The index is likely to record its best weekly gains since Nov 2008 as it received huge gains on Monday due to announcement of a $1 trillion emergency package by European Union and the International Monetary Fund's for preventing growing debt crisis.

IBEX, Portugal's PSI 20 .PSI20 and Italy's MIB decreased by 2.6 to 3.7 percent and the euro fell to 18-month low against the dollar.

Britain's FTSE 100 .FTSE, Germany's DAX .GDAXI and France's CAC 40 .FCHI fell by 1.4 to 2.6 percent

Bernard McAlinden, investment strategist at NCB Stockbrokers said, "It will take a long time, years, to prove whether the (euro zone) austerity measures will be successful."

After sliding to $1.2520, Euro gained a little on late Thursday but then continued its decline by sliding to as low as $1.2433, its weakest since November 2008.

Europe’s top banker, Ackermann had helped for making the rescue package for Greece.