Eurozone politicians are not obliged to rescue Greece as the country is no longer of systemic importance to the euro, a senior member of German Chancellor Angela Merkel’s party has said.

Germany’s finance minister has dismissed concerns that Spain’s government may itself need a bailout on top of an international rescue for its ailing banks.

Efforts to form a coalition have failed, Greece’s socialist leader and former finance minister said last night.

Greece’s wrangling politicians were locked in last-ditch efforts today to form a coalition government, with chances of a deal appearing slim.