Germany dismisses talk of third Greek bailout

Germany and the European Commission slapped down talk of a third financial rescue for Greece as premature, after Spain once again suggested yesterday that a new aid package for Athens was almost inevitable.

Athens, which says it does not need a new aid programme, averted a crisis yesterday by raising over €1bn in short-term debt as planned, but its long-term funding outlook appears increasingly uncertain.

The country has secured a four-month extension to its bailout programme until the end of June but remains shut out of debt markets and its new left-wing government has angered eurozone partners with its sharp anti-bailout rhetoric.