The German DAX 30 index fell 0.08 percent or 5.20 points to 6753.19. Shares of Deutsche Bank AG declined 1.22 percent and shares of Metro AG dropped 0.77 percent.
The French CAC 40 index was down 0.15 percent or 4.94 points to 3258.70. Shares of Vivendi SA dropped 1.34 percent and shares of GDF Suez fell 0.93 percent.
London's FTSE 100 index declined 0.16 percent or 9.26 points to 5704.93. Shares of Vodafone Group PLC dropped 1.61 percent and shares of HSBC Holdings PLC were down 0.87 percent.
Spain's IBEX 35 rose 0.17 percent or 11 points to 6643.60. Shares of Bankia SA climbed 8.41 percent and shares of Repsol SA advanced 1.19 percent.
Investors' concern about the debt burden in the euro zone is continuing to deepen. Market players feel that a banking sector bailout and an empowerment of the EU's bailout funds cannot solve Spain's underlying economic problems. Market participants continue to think that a sovereign bailout will be necessary for Spain.
The Eurogroup is expected to formally approve the Spanish Memorandum of Understanding (MoU) in Brussels Friday. The limited flow of news from the European policymakers has generally been a hindrance for market confidence.
Investors' confidence on peripheral Europe was deteriorating, with Spanish 10 year yields breaching an unsustainable level of 7 percent again, Credit Agricole said in a note.
Investors feel that policymakers will have to announce bold measures, including easing in the monetary policy which will be much needed to boost liquidity in the financial system. But market players are disappointed to note that the U.S. Federal Reserve did not announce any additional stimulus measures to help restore the economic growth.