Greek PM calls for backing on austerity measures

Appealing for a confidence vote from parliament George Papandreou said the image of national divisions was not helping the country survive and international lenders wanted the country to stand on its own feet.

He said Greece’s cash reserves would soon be exhausted without a new loan tranche from the International Monetary Fund and European Union and promised to correct injustices in implementation of a bailout deal.

“Let’s turn a page, stop fighting in these critical times, stop sending the image that the country is being torn apart,” Papandreou said.

Papandreou was responding to a speech by Antonis Samaras, leader of the conservative opposition New Democracy party, who called for elections and renegotiation of an international bailout to save Greece from debt default.

The UK’s involvement

Eurozone finance ministers are due to agree the latest instalment of bailout money for Greece – knowing that a second bailout package for the beleaguered country also needs to be approved within weeks.

The UK was not involved in the original £96.5bn deal approved a year ago, and Chancellor George Osborne will this week insist that a second aid package should also not commit the UK.

Germany and France have already signalled that there is no reason for London to pay a share of a repeat bailout – but if a majority of member states think otherwise, the Treasury would be responsible for 12 per cent of any new loan guarantees to the Greek government.

Chief Secretary to the Treasury Danny Alexander told Sky News’ Murnaghan: “The stability and success of the eurozone is very important to the British economy, it’s our most important trading partner and problems there have a big effect on us.

Read more: How does Greece's bailout affect Britain?

“So we have a strong interest in seeing these issues resolved. But the package for Greece that is already in place is a eurozone package with the IMF.

“Obviously we as the UK have a stake in the IMF. It’s the eurozone that is taking forward discussions now about the next stage of dealing with Greece’s substantial problems.

“There’s simply no proposition on the table for the UK to contribute beyond that IMF involvement and I don’t expect there to be one.”