Greece rumoured to be in talks about third bailout
Greece is in talks to arrange a third bailout, according to several of Spain's government ministers.
Alvaro Nadal, the economic adviser to prime minister Mariano Rajoy, said on Tuesday that Greece needed a third, "full" bailout programme.
Spain’s finance minister Luis de Guindos said EU and Greek officials were negotiating a more flexible third rescue for Greece of between €30bn and €50bn, though Eurogroup president Jeroen Dijsselbloem's office denied the existence of such talks.
However, European Commission vice president Valdis Dombrovskis said a third bailout may be needed when the current programme expires in June as Greece will unlikely be able to borrow on capital markets, according to Athens daily Kathimerini.
The debt-ridden nation has been granted a four-month extension to its bailout programme as it seeks to find a long-term solution.
Greek government spokesman Gavriil Sakellaridis said on Monday night: “The Greek government has been exploring solutions... to ensure there won’t be a single problem with repaying the IMF loan, or its funding obligations in March,” he said.
Separately, Spanish budget minister Cristobal Montoro added: "Whatever it's called, it's clear Greece will need money".
De Guindos had said a new debt accord would provide for “flexibility” and would include fresh conditions for Greece, adding that “Greece will not leave the euro. It would not be good for Europe and not for the monetary union either... for Greece, there is no alternative to European solidarity”.
Over the weekend Greek prime minister Alexis Tsipras accused Spain and Portugal of conspiring against it, as both countries face an upsurge of leftist popular movements inspired in part by the rise to power of Tsipras' Syriza party in Greece.
"We found opposing us an axis of powers... led by the governments of Spain and Portugal which for obvious political reasons attempted to lead the entire negotiations to the brink," he said on Saturday.
The EC said on Monday it was acting as a "mediator" after receiving complaints from the Spanish and Portuguese authorities over the comments.