The new Greek prime minister said he is hopeful a debt deal can be agreed to keep the country in the Euro.

Finance Minister Michael Noonan is adamant he does not have to cut €2bn from the budget, while the EU opened a glimmer of hope Ireland could get retrospective bank recapitalisation. But Mr Noonan would not say if his budget would leave more money for services, or mean tax cuts for some.

The EU's new permanent bailout fund will come into existence next Monday.