Greece is to hold a general election in April, it has been announced today.

The European Central Bank must take part in Greece’s debt swap, finance minister Evangelos Venizelos said yesterday, warning that a rescue package for Athens also hinges on other issues being resolved such as labour reforms and how Greek banks are to be recapitalised.

Washington has increased the pressure on the EU to resolve the debt crisis, especially the Greek case, by pushing for the eurozone to take a hit on Greek bonds.

Greece’s prime minister is due to hold talks with labour unions and trade federations ahead of a crucial visit by the country’s debt inspectors while Athens negotiates the terms of a second multimillion-euro international bailout.

GREECE will have to leave the eurozone if it fails to clinch a deal on a second, €130 billion bailout with its international lenders, a government spokesman has said.